Energy Transition

Material Topic: Energy Transition

Supporting the goals of the Paris Agreement by reducing the carbon footprint of our energy supply, specifically by increasing sales of zero-carbon energy products such as renewable mobility fuels and renewable power.

Key GRI

• GRI 305: Emissions 2016

NaDiVeG

• Environmental concerns

Most relevant SDGs

GHG Scope 3 Emissions from Products¹ Includes Scope 3, Category 10: Processing of sold products, and Scope 3, Category 11: Use of sold products

In mn t CO₂ equivalent

We are aware that the vast majority of our emissions comes from the use of our products. As an oil, gas, and chemicals company, we have a unique responsibility in this regard. About 79% of OMV’s products are currently directly used for combustion, significantly contributing to global climate change. The Energy Transition material topic focuses on reducing the carbon footprint of our energy supply, specifically through increasing sales of zero-carbon energy products such as renewable mobility fuels and renewable power. This is the centerpiece of OMV’s commitment to support and accelerate the energy transition and become a net-zero business by 2050 or sooner.

To concretize our 2050 goals, we have set mid- and long-term targets to reduce our absolute Scope 3 emissions by at least 20% by 2030 and by at least 50% by 2040, both against the baseline year 2019. In addition, we intend to reduce the carbon intensity of the energy supply by at least 20% by 2030 and by at least 50% by 2040, both against the baseline year 2019.

The scale-up of zero-carbon energy product sales while decreasing fossil fuel sales is central to OMV’s climate strategy.

In Exploration & Production, we are working to expand our photovoltaic asset base, including exploring battery and storage options. Based on our subsurface knowledge, capabilities, and asset base, we are also exploring carbon capture and storage (CCS) solutions. We collaborate on these activities in line with applicable regulatory and legal requirements in conjunction with industry and research partners. We are also investigating solutions for subsurface energy storage, e.g., with hydrogen or compressed air. Furthermore, we are looking at options to explore and commercially develop the geothermal energy potential in the countries where we operate. These projects are in the R&D or initial investment phase. By 2030, we plan to build our renewable energy production to around 10 TWh (including geothermal, photovoltaic, wind), and develop CCS storage capacity of around 5 mn t per year CO₂ net to OMV by 2030.

In Refining, we primarily focus on finding solutions for hard-to-electrify market segments, such as heavy road transportation and air travel, as well as providing feedstock for greener chemical production. Overall, we plan to grow production of renewable mobility fuels and sustainable chemical feedstocks to approximately 1.5 mn t, and produce and market at least 700 kt of sustainable aviation fuels per year by 2030.

Target 2025

• Reduce carbon intensity of product portfolio (Scope 3) by >6% vs. 2010

Targets 2030

• Reduce absolute Scope 3 emissions² The following Scope 3 categories are included: Category 11: Use of Sold Products for OMV’s energy segment, Category 1: Purchased Goods (feedstocks) from OMV’s non-energy business segment, and Category 12: End-of-Life of Sold Products for OMV’s non-energy segment. by ≥20% vs. 2019
• Reduce carbon intensity of energy supply by ≥20% vs. 2019

Targets 2040

• Reduce absolute Scope 3 emissions by ≥50% vs. 2019
• Reduce carbon intensity of energy supply by ≥50% vs. 2019

Status 2021

• Carbon intensity of product portfolio reduced by 5% vs. 2010
• Absolute Scope 3 emissions increased by 2% vs. 2019
• Carbon intensity of energy supply reduced by 2.8% vs. 2019

Relevant SDGs

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 this material topic, we focus on reducing the carbon footprint of our energy supply. However, our circular economy solutions also play a central role in our climate and carbon footprint reduction strategy. (Read more about our efforts on this topic in Circular Economy.)

Governance

OMV’s energy transition strategy is the cornerstone of our Group’s business strategy. Our sustainability framework and net-zero goal were the basis for developing the business strategy approved by the Executive and Supervisory Boards in December 2021. The Group’s decarbonization strategy is overseen by Carbon, Energy & ESG Management and Strategic Planning & Projects.

Our climate ambitions are at the heart of our strategy, and responsibility for meeting these ambitions is embedded at the highest levels. Our Executive Board is in charge of setting our climate targets and ensuring that our Group’s business strategy is aligned with meeting those targets. Correspondingly, meeting our climate change targets is a part of executive remuneration, with GHG reduction targets included in the LTIP and in the annual bonus paid to the Executive Board. (Read more in Sustainability Governance.)

The responsibility for our role in the energy transition is also entrenched at Supervisory Board level. In 2021, we instituted a new committee, the Sustainability and Transformation Committee. The purpose of this committee is to support the Company’s Supervisory Board in reviewing and monitoring OMV’s sustainability strategy; ESG-related standards, performance, and processes; and specifically our performance in HSSE and climate change. Furthermore, the committee serves to support and oversee the transformation process toward a more sustainable business model, including the cultural integration of strategically significant acquisitions.

Low- and zero-carbon products enabling the energy transition are developed in the business units. Support for carbon impact assessments for new products is provided at Group level by the Corporate Carbon, Energy & ESG Management department.