GHG Emissions from Operations Reducing emissions from operations is an important strategic target for OMV and demonstrates our commitment to the material topic Climate Change and Energy Transition. Our goal is net-zero emissions from our operations by 2050 or sooner. OMV’s carbon efficiency agenda focuses on process optimization, energy efficiency, and delivering projects that reduce our direct GHG emissions. Carbon efficiency in operations is managed as part of the sustainability governance process, as described in the section on Sustainability Governance. The Executive Board approves carbon-related goals as part of the Sustainability Strategy and the Health, Safety, Security, and Environment (HSSE) Strategy, which reflects climate change targets, such as zero routine flaring by 2030. OMV reduces greenhouse gas emissions from operations by applying energy efficiency measures, using renewable electricity, modernizing our equipment and processes, and reducing the venting and flaring of gas. (For more information, see Energy Efficiency and Flaring, Venting, and Fugitive Emissions.) Since 2009, our emissions reduction projects have already helped us cut our greenhouse gas emissions by 1.9 mn t CO2 equivalent, and we intend to reduce emissions by at least another 1 mn t by 2025. In 2020, we continued implementing greenhouse gas reduction projects with an annual reduction of around 77,900 t CO2 equivalent. 1 Excluding Borealis New Compressor Station at Bustuchin OMV Petrom Upstream developed a project related to the shutdown of Compressor Station 10GK Bustuchin at its Oltenia asset between 2017 and 2020, investing around EUR 5 mn in this project. Four new two-stage electric compressors and related auxiliary equipment were installed to replace the former Compressor Station 10GK Bustuchin, which had been in operation since 1989. The new facility, Compressor Station 2 Bustuchin, significantly reduces operational and integrity risks. This project enabled optimization of the gas compression system downstream to the Hurezani gas hub, which reduced direct GHG emissions by some 18,500 t CO2. SDG target: 9.4 By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, with all countries taking action in accordance with their respective capabilities In 2019, OMV achieved its 2025 carbon targets ahead of schedule. We therefore set new, more ambitious targets to reduce the carbon intensity of OMV’s operations (Scope 1) and of the product portfolio (Scope 3) in June 2020. The Scope 1 emissions intensity will be reduced by at least 30%, previously 19% (vs. 2010). This will be achieved by reducing the carbon intensity of Upstream operations by at least 60% and of refining operations by at least 20%. Moreover, OMV and Borealis have set goals of achieving net-zero operations by 2050 or sooner. OMV is taking an active approach in transforming its future business operations. Sustainability Strategy 2025 Targets Reduce the carbon intensity of OMV’s operations 2 CO2 equivalent emissions produced to generate a certain business output using the following business-specific metric – Upstream: t CO2 equivalent/toe produced; refineries: t CO2 equivalent/t throughput (crude and semi-finished products without blended volumes); power: t CO2 equivalent/MWh produced – consolidated into an OMV Group Carbon Intensity Operations Index, based on weighted average of the business segments’ carbon intensity by 30% by 2025 (vs. 2010) Reduce the carbon intensity of OMV’s Upstream operations by 60% by 2025 (vs. 2010) Reduce the carbon intensity of OMV’s refinery operations by 20% by 2025 (vs. 2010) Reduce emissions from operated assets by at least 1 mn t CO2e in the period from 2020 to 2025 Status 2020 Group intensity: reduction of 19% achieved by 2020 (vs. 2010) Upstream intensity: reduction of 37% achieved by 2020 (vs. 2010) Refinery intensity: reduction of 11% achieved by 2020 (vs. 2010) Absolute emissions: 77,900 t CO2e reduced in 2020 through concrete emissions reduction initiatives Action Plan to Achieve the Targets Upstream business segment phasing out routine flaring and venting Energy efficiency improvements in OMV Upstream and in refineries Fugitive methane emissions reduction through field modernization, integrity improvement, and operational measures (e.g., Leak Detection and Repair [LDAR] program, Green Kaizen) SDG targets: 7.2 By 2030, increase substantially the share of renewable energy in the global energy mix; 7.3 By 2030, double the global rate of improvement in energy efficiency; 13.1 Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries In 2020, carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O) emissions levels directly related to our operations (Scope 1) totaled 10.7 mn t CO2 equivalent (2019:10.6 mn t CO2 equivalent). The other GHGs are not relevant to our business and therefore have not been included in our figures. OMV is taking a number of steps to reduce emissions from operations, such as increasing our energy efficiency and phasing out flaring. (For more information, see Energy Efficiency and Flaring, Venting, and Fugitive Emissions.) We are also increasingly turning to renewable sources of electricity to power our operations. For instance, we have invested EUR 2.1 mn to install solar panels at 82 filling stations in Romania to provide power to these stations. Notably, Borealis aims to source 50% of total electricity consumption from renewable sources in major business areas. Schönkirchen Photovoltaic Plant Powers OMV Operations OMV and electricity producer VERBUND have joined forces to build Austria’s largest photovoltaic plant. The plant with a PV capacity of 11.4 MWp was built on a 13.3-hectare (133,200 m2) compound owned by OMV in Schönkirchen in the first phase of construction. The east-west facing solar park will use 34,600 PV modules to produce around 10.96 GWh of solar power, corresponding to the annual electricity consumption of some 3,400 households. This will reduce emissions by around 8,000 t CO2. Operation started successfully in December 2020. By the end of 2021, another 10,400 PV modules will be added to the plant in the final phase of construction. This will increase the total capacity to 14.85 MWp for total power generation of around 14.25 GWh, which is enough to meet the annual demand of 4,400 households. Emissions will be reduced further by an additional 2,400 t CO2 per year. SDG target: 7.2 By 2030, increase substantially the share of renewable energy in the global energy mix Borealis Sources Renewable Energy In 2020, Borealis signed a long-term power purchase agreement with Eneco to source renewable electricity from Mermaid. The agreement covers the purchase and supply of over 1,000 GWh of wind power over the next decade, with delivery to begin in January 2021. By increasing the share of renewable power in its overall energy consumption at its Belgian production facilities, Borealis is moving closer to its aim of sourcing at least 50% of the electricity used by its Polyolefins and Hydrocarbon & Energy business areas from renewable sources by 2030. The renewable electricity generated within the framework of this agreement will reduce Borealis’ indirect CO2 emissions at its Belgian operations by approximately 20,000 t per year. SDG target: 7.2 By 2030, increase substantially the share of renewable energy in the global energy mix Norwegian Offshore Operations Powered by Wind Farm Hywind Tampen, the world’s first renewable power project for offshore oil and gas, is an 88 MW floating wind farm designed to provide electricity to the Snorre and Gullfaks offshore field operations, operated by Equinor, in the Norwegian North Sea. The Hywind Tampen project consists of eleven wind turbines with a combined capacity of 88 MW, estimated to be enough to meet 35% of the annual power demand of the five platforms. This wind power solution will help reduce the use of gas turbines for the Snorre and Gullfaks offshore fields, while also offsetting 200,000 t of CO2 emissions and 1,000 t of NOx emissions per year. OMV holds a 19% stake in the Gullfaks field. SDG target: 7.2 By 2030, increase substantially the share of renewable energy in the global energy mix 1 Excluding Borealis 2 CO2 equivalent emissions produced to generate a certain business output using the following business-specific metric – Upstream: t CO2 equivalent/toe produced; refineries: t CO2 equivalent/t throughput (crude and semi-finished products without blended volumes); power: t CO2 equivalent/MWh produced – consolidated into an OMV Group Carbon Intensity Operations Index, based on weighted average of the business segments’ carbon intensity schließen GHG greenhouse gas schließen HSSE Health, Safety, Security, and Environment schließen mn million schließen t ton schließen CO2 carbon dioxide schließen toe ton of oil equivalent schließen t ton schließen CO2 carbon dioxide schließen LDAR Leak Detection and Repair schließen mn million schließen PV photovoltaic schließen MWp megawatt peak schließen GWh gigawatt hour schließen NOx nitrogen oxides Carbon EfficiencyEnergy Efficiency
