Supply Chain

Supply Chain is a material topic for OMV. At OMV, we aim to foster innovation, maximize value contribution, and enable growth of the supply chain in line with both our Corporate and Sustainability Strategies. We achieve this by applying our sourcing and logistics expertise to ensure that the highest-quality materials and services are provided through our supply chain. It is of paramount importance to our organization to be fully compliant with all applicable legal requirements, as well as with our internal standards in areas of safety, environmental protection, and human rights when managing our supply chain.

Corporate and legal HSSE requirements are communicated to potential suppliers at the tender stage. Furthermore, OMV’s Code of Conduct stipulates that suppliers must support OMV’s Principles: Team Spirit, Accountability, Passion, Pioneering Spirit, and Performance. In order to mitigate supply chain risks including forced labor, slavery, human trafficking, and corruption, OMV imposes the legal requirements and internal rules and standards applicable to OMV on its suppliers. Our suppliers are obligated to fully comply with the content of the Code of Conduct, and all supply chain partners are required to sign the Code of Conduct. However, we saw the need to further outline adherence to our Principles and the business standards (e.g., labor rights) described in OMV’s General Conditions of Purchase. Our suppliers must accept these as an integral part of the contractual agreements.

OMV reserves the right to terminate relationships with suppliers if non-compliance with applicable policies is discovered or if non-compliance is not addressed in a timely manner. OMV has a process in place to ensure that parties sanctioned by the EU or international organizations, such as the United Nations, are not accepted as procurement partners.

It is the goal of our procurement vision Create Value to establish effective operations, improve efficiency, and simplify processes. OMV Procurement supports the five focus areas of OMV’s Sustainability Strategy 2025 through several activities (e.g., embedding HSSE in supplier prequalification; mandatory HSSE clauses in contracts; supplier audits; spend with local suppliers; ESG assessments). However, we saw the need to advance sustainability further in our procurement activities. We have developed a new concept with the aim of bringing sustainability closer to our core processes in Procurement (e.g., plan-to-strategy, source-to-contract, supplier relationship, and performance management). Including sustainability in supplier onboarding and analyzing sustainability factors (e.g., the carbon footprint of the goods and services purchased through procurement) when developing procurement strategies are just two examples of initiatives defined in 2020 that will be developed further in 2021.

Furthermore, OMV Procurement together with OMV Carbon, Energy & ESG Management have refined the calculation method for carbon emissions from purchased goods and services. We now have more transparency on the carbon emissions generated by our suppliers thanks to a dedicated Power BI report accessible to the entire procurement community. In 2021, we plan to begin engaging directly with high-impact suppliers and setting up joint improvement measures that will enable us and our suppliers to decrease our respective carbon footprints.

In 2020, we worked with Borealis to assess the incorporation of sustainability principles in Procurement in both companies and defined synergies and a way forward. Borealis is part of the Together for Sustainability initiative, which aims to improve the sustainability standards of the supply chain of chemical companies.