GHG Emissions from the Product Portfolio

In 2020, our Scope 3 emissions totaled around 118 mn t CO₂ equivalent (2019: 126 mn t CO₂ equivalent) and related to total product sales volumes as well as purchased goods and services and capital goods at all our fully consolidated companies. ¹ Excluding Borealis

About 87% of OMV’s products are directly used for combustion. Scope 3 emissions from the use and processing of our products as well as from purchased goods and services and capital goods therefore constitute around 91% of our impact in terms of GHG emissions. ² We take into account the impact of the products sold by OMV to external customers and on the market. Intracompany sales between OMV subsidiaries are not taken into account in order to avoid double-counting GHG emissions from products and services. Our Scope 3 figures for 2020 do not include Borealis.

The development of low-carbon products and new energy solutions to reduce this major impact is therefore central to the material topic of Climate Change and Energy Transition. In this regard, we have developed strategic targets to shrink the carbon footprint of our product portfolio. By 2025, the carbon intensity of the product portfolio (Scope 3 emissions) will be reduced by at least 6%, previously 4% (vs. 2010), by ensuring that at least 60% of our product portfolio is made up of low-carbon or zero-carbon products by 2025. ³ Low- or zero-carbon sales comprise oil and gas to non-energy, gas to energy, renewables, power, and petrochemicals third-party sales.

Achieving this goal will entail stepping up our sales of gas, renewables such as biofuels, power, and petrochemicals.

We continued to build the New Energy Solutions department in 2020 to further develop our low-carbon business solutions and technologies. This unit develops small- and large-scale low-carbon technologies for energy supply, for mobility, and for industry. New Energy Solutions connects to OMV’s core competencies and maintains a direct link to the existing business. First studies and projects were initiated in the course of 2020, e.g., in the areas of hydrogen, carbon capture and utilization (CCU), alternative usage of subsurface reservoirs, and renewable energy. We have set up a centralized portfolio management for all New Energy Solutions projects within the OMV Group and integrated it into the Group’s planning, budgeting, and strategy development activities.

Oil remains a valuable and important raw material which, however, will be refined in petrochemical processes rather than burned. OMV focuses on high-quality refinery products such as low-emission premium fuels and feedstocks for the chemical industry. The acquisition of Borealis was a key step to transforming our product portfolio with the goal of using our equity oil to produce petrochemicals. (For more information, see Petrochemicals and Plastics.)

Sustainability Strategy 2025 Target

• Increase the share of low-/zero-carbon products to at least 60% by 2025

Status 2020

• 61% ⁴ Nearly all major oil products were impacted negatively in 2020 due to COVID-19. Read more about the impact of COVID-19 on OMV’s 2020 business in the Annual Report.

Action Plan to Achieve the Target

• Reduce the carbon footprint of OMV’s product portfolio by increasing the gas-to-oil ratio in Upstream production, increasing gas sales in Europe, and shifting to higher-value-added petrochemical products, which in combination with recycling of the plastics used will increase resource efficiency
• Research alternative feedstocks, technologies, and fuels such as hydrogen and CNG to develop innovative energy solutions aligned with demand trends

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