Assessments and Audits

Close collaboration between our contractual partners (suppliers) and Procurement at OMV is a key element for good supplier relationship management. It is therefore important to give and get feedback. We foster partnerships with our suppliers through a standardized evaluation system, making sure that we collect the feedback received on a regular basis. The input from suppliers can make a difference using the diverse channels implemented so far, such as supplier audits, supplier meetings, assessments, and 360-degree evaluations.

Since the implementation of a standardized system focused on enhancing supplier quality management back in 2017, Procurement has assessed its strategic suppliers in the areas of environment, social, and governance in order to raise awareness of the ESG agenda and OMV’s commitments to it. These include reduction targets and environmental programs. In 2020, Procurement assessed 16 strategic suppliers, 1 All supply chain data excluding Borealis thus achieving its goal of receiving feedback on ESG elements from all of its strategic suppliers by the end of 2020. Most of the suppliers in the scope of these assessments were in line with our requirements, and recommendations were agreed upon for identified areas of improvement (e.g., human rights).

Furthermore, despite COVID-19 restrictions, online suppliers’ meetings were encouraged and supported to ensure agile interaction with strategic suppliers and stay connected on a global level. We ran 360-degree questionnaires, feedback was discussed on current open issues, insights were given and received on dedicated topics, and development-oriented action plans were agreed upon for 2021. Finally, we paid considerable attention to our climate change and carbon management plans along the supply chain and shared our strategic approach and examples to improve carbon footprints, looking to 2021 and beyond. In addition to building up a much greater level of understanding on the nature of carbon emissions from materials and services purchased by OMV Procurement, sustainability initiatives and insights of both parties were used as examples to improve environmental impact and limit its influence on climate change.

Due to the effects of COVID-19 on our day-to-day activities, OMV Procurement has revised and defined a new supplier audit process. OMV conducts supplier audits during the prequalification process and/or during contract execution. The aim of the audits is to measure the performance of our suppliers and define actions which will enable them to optimize their performance and meet OMV requirements. During the audits, we pay special attention to the financial stability of our suppliers, their strategy and organization, and the supply chain and sustainability (e.g., human rights, carbon management, environmental management, certifications, and social responsibility).

In 2020, we performed 18 audits covering sustainability topics. Out of these, only three audits were performed on-site. The rest were done remotely due to the travel restrictions imposed because of COVID-19. Out of the 18 supplier audits, follow-up measures were agreed upon with the suppliers at 16, and were in different stages of implementation at the end of 2020. None of the audits found actual or potential environmental and social impacts in the supply chain.

We also perform yearly subject-specific audits on topics such as process safety, quality, and efficiency. In 2020, we completed 119 audits of our suppliers, most of them done remotely due to COVID-19.

In addition to supplier audits, OMV Procurement defined an internal tool to assess the impact of COVID-19 on selected suppliers based on their criticality to our business in 2020. The COVID-19 assessment focused on topics related to the financial stability of suppliers, their risk of insolvency/bankruptcy, downsizing, and OMV’s dependency on the services/product delivered by the respective supplier. A COVID-19 supplier risk score was calculated based on the assessment by the Procurement category managers after a prior meeting with the selected suppliers and OMV business representatives. For all high-risk suppliers, we have defined mitigation measures and are monitoring them closely to ensure no interruptions will affect our business.

1 All supply chain data excluding Borealis

2 Suppliers in scope for this target are active suppliers (at least one purchase order in the past year) who meet certain criteria such as procurement spend and strategic fit.

environmental, social, and governance
greenhouse gas