Mapping our sustainability risks

When evaluating risks, OMV also assesses any relevant impact OMV activities might have on Environment, Society, and Governance (ESG). We have summarized the potential risks, mitigation measures, and net risks and opportunities of OMV activities, structured by our material topics and related NaDiVeG concerns in the table below. Materiality in this context is defined as issues having a potentially significant impact on the environment or society. For further details on our materiality analysis, see Reporting on materiality.

Material Topic

Risk description1

Mitigation measures

Effect description2

1

A risk represents the uncertainty that OMV will not meet its objectives. This is measured by combining the likelihood or frequency of an event and its consequences, which can result in opportunities for benefit (upside) or threats to success (downside).

2

Effects refer to positive and negative impacts on environment and society arising from the regular business model or from unplanned events that should not occur during regular operating activities.

GHG emissions from operations
(NaDiVeG: Environmental concerns)

Risk of imbalance between certificates allocated and emissions volumes required by the Company’s activities, resulting in higher costs; generated by the uncertainties about allowance demand and abatement costs

Risk of decarbonization policies forcing OMV to operate on a net carbon-neutral basis, triggered by the enforcement of the Paris Climate Change Agreement
  • Developing and implementing a forward-looking OMV Carbon Trading Strategy
  • Reducing GHG emissions in OMV’s carbon-intensive facilities by implementing energy efficiency improvements and technology changes
  • Phasing out routine flaring and venting as a major contributor to reduce GHG emissions
  • Boosting energy efficiency and reducing internal fuel consumption by increasing renewable energy supplies, such as the Company’s own photovoltaic plants

For more details, see Carbon Efficiency of operations

OMV's 2019 total Scope 1 GHG emissions of 10.63 t CO2 equivalent increased the CO2 concentration in the atmosphere by about 0.0062 ppm.

Employment and skill development
(NaDiVeG: Respect for human rights, Employment & social concerns)

Changes in the law might affect international assignments (global mobility-related risk)

Inability to comply with complex legislation in various countries
  • Constant monitoring of regulations related to immigration and specific labor markets to anticipate any related risks
  • Obtaining expert advice from external consultants and specialized relocation agencies with in-depth market expertise

For more details, see Management of employment and skills development

No relevant impact on environment or society

Energy efficiency
(NaDiVeG: Environmental concerns)

Risks of failing to implement energy efficiency projects due to finances or insufficient resources could keep energy consumption at high levels
  • ISO 50001 certifications for Refining and some Upstream assets

For more details, see Energy efficiency

OMV's 2019 total Scope 1 GHG emissions of 10.63 t CO2 equivalent increased the CO2 concentration in the atmosphere by about 0.0062 ppm.

Environmental compliance
(NaDiVeG: Environmental concerns)

Non-compliance with environmental and water legislation, or specific internal rules and regulations
  • Legal compliance register
  • Legal audits
  • Trainings
  • Close collaboration with regulators
  • CAPEX allocation for legal compliance projects

For more details, see Management of Environmental Compliance

No relevant impact on environment or society

Health, safety & security
(NaDiVeG: Employment & social concerns)

Risk drivers such as integrity failure or unsafe process safety conditions leading to business interruptions, pollution, accidents involving employees, and deterioration of the Company’s reputation
  • Audits
  • Risk awareness campaign
  • Lessons learned (internal incidents or industry experience)
  • Preventive maintenance

For more details, see Health, safety & security

The impact on environment or society is already described in the risk description.

Local communities
(NaDiVeG: Respect for human rights, Employment & social concerns)

Not fulfilling the expectations of local communities with regards to economic benefits

Deterioration in occupational health and safety in countries where local legislation is less strict
  • Social Impact Assessment (SIA), including free and prior informed consultation with and consent of local stakeholders
  • Stakeholder engagement plans
  • Community grievance mechanisms
  • Community investments

For more details, see Community relations and development

The impact is significantly reduced as OMV applies the same international standards across all the countries where OMV operates.

Low-carbon products and innovation
(NaDiVeG: Environmental concerns)

Opportunities unlocked by decarbonization policies forcing OMV to operate and produce fuels on a net carbon-neutral basis

Risk that demand for refined fuels may drop due to less carbon-intense substitute products coming to market
  • Identifying and developing new business opportunities based on low-/zero-carbon product portfolio by the newly created New Energy Solutions department
  • Carbon reduction targets integrated into Executive Board remuneration
  • Strong focus on natural gas sales and petrochemical sales increase

For more details, see Carbon Efficiency of the product portfolio

OMV’s total GHG emissions from all activities 2019 onward based on current product portfolio and current proven/probable reserves (assuming all of the reserves are produced and burned) amount to estimated 2.17 Gt CO2 equivalent, which represents around 0.5% of the total remaining global carbon budget of about 420 Gt CO2 equivalent. This would increase the atmospheric CO2 concentration by about 0.12 ppm.

Spills management
(NaDiVeG: Environmental concerns)

Loss of integrity of a pipeline caused by an unsafe condition resulting in a major accident offshore or onshore (explosion, major fire, major oil spill)
  • Improving integrity through old pipeline/old facilities replacement programs
  • preventive maintenance and corrosion programs
  • Oil spill response plans and emergency preparedness plans

For more details, see Spills management

The impact on environment or society is already described in the risk description.

Supply chain
(NaDiVeG: Respect for human rights, Employment & social concerns)

Risk of poor labor practices in supply management, e.g., failure to pay decent wages in the supply chain (human rights)

Supplier pays wages below standards established by international human rights bodies

  • Training for employees (focus on high-risk countries)
  • Human Rights Country Entry Check before launching operations in a country as well as regular human rights assessments in our countries of operations
  • HSSE contractor management, considering human rights aspects (including labor rights) in pre-qualification and auditing phase
  • ESG supplier assessments
  • Code of Conduct including labor rights

For more details, see Supply chain

The impact is significantly reduced as OMV applies the same international standards across all the countries where OMV operates and complies with minimum local legislation.

Water management
(NaDiVeG: Environmental concerns)

Periods of low or no precipitation would lead to inability to access water for normal operations (internal consumption) in areas of low water availability
  • Improving integrity through old water pipeline/facilities replacement programs
  • Preventive maintenance
  • Water management plans
  • Reduced water consumption and water efficiency improvements
  • Oil spill response plans and emergency preparedness plans in case of spill event affecting water bodies

For more details, see Water management

The impact on environment or society is already described in the risk event.

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