Letter of the Supervisory Board

An example for a concrete activity in this area is the cooperation agreed with VERBUND last year: OMV, together with VERBUND, Austria’s main electricity company, is building Austria’s largest ground-mounted photovoltaic plant to cover 10% of the Upstream production facilities’ own electricity demand in Lower Austria. In addition, our innovative plastic-to-oil technology ReOil^® is on track to become a commercially viable, industrial-scale recycling process which will contribute to the circular economy. In 2019, 100 tons of post-consumer plastic were transformed into synthetic crude.

In order to further strengthen our innovative capacity in this field, the New Energy Solutions department was set up to explore opportunities in carbon emission reduction and make a positive contribution to the energy transition.

The Supervisory Board is fully committed to OMV’s Sustainability Strategy and challenges the management along this transition path, specifically by setting the right incentives. The new Remuneration Policy that will be put to vote to the Annual General Meeting 2020 for the first time will therefore include measurable carbon emission reduction targets which will influence both the Annual Bonus and the Long-Term Incentive Plan (LTIP) payouts.

I am very pleased to report that OMV’s comprehensive approach to sustainability continues to be recognized by independent rating agencies and that OMV was again – as the only Austrian company – included in the internationally renowned Dow Jones Sustainability Index (DJSI World) in 2019.

OMV has opted to make use of the option to prepare its mandatory consolidated non-financial disclosures as a separate consolidated non-financial report (Sustainability Report). The consolidated non-financial report that is presented pursuant to Section 96(1) of the Stock Corporation Act was subject to an independent external assurance as well as a comprehensive audit and discussion by the Audit Committee and the Supervisory Board. The Supervisory Board found no issues during the audit and approved this report.