Environment

Material Topic: Environment

Protecting natural resources and ecosystems, especially through prevention of spills and water, air, and soil pollution.

Key GRI

• GRI 303: Water and Effluents 2018
• GRI 305: Emissions 2016
• GRI 306: Waste 2020
• GRI 306: Effluents and Waste 2016
• GRI 307: Environmental Compliance 2016

NaDiVeG

• Environmental concerns

Most relevant SDGs

OMV aims to minimize environmental impacts by, for instance, preventing water and soil pollution. OMV is liable for the impact that our activities have on the environment. Breaching environmental regulations on a local, national, and international level would result in both monetary losses and harm to our reputation. Our license to operate depends on compliance with regulations relating to environmental protection, which is also of particular importance to governmental authorities, shareholders, and stakeholders, such as the public and environmental NGOs and NPOs. OMV’s Code of Conduct and HSSE Policy formalize our public commitments to safeguarding the environment.

Targets 2025 and 2030

• Increase waste reuse and recycling from operations
• Reduce freshwater withdrawal

Target 2030

• Reduce natural resources use by reducing oil and gas production levels to below 400 kboe/d and by reducing crude distillation throughput by 2.6 mn t

Status 2021

• Waste recovery or recycling rate: 68%
• Freshwater withdrawal: 332,901 megaliters
• Production: 486 kboe/d
• Crude throughput: 15.7 mn t

Relevant SDGs

SDG targets:
3.9 By 2030, substantially reduce the number of deaths and illnesses from hazardous chemicals and air, water and soil pollution and contamination
6.3 By 2030, improve water quality by reducing pollution, eliminating dumping and minimizing release of hazardous chemicals and materials, halving the proportion of untreated wastewater and substantially increasing recycling and safe reuse globally
6.4 By 2030, substantially increase water-use efficiency across all sectors and ensure sustainable withdrawals and supply of freshwater to address water scarcity and substantially reduce the number of people suffering from water scarcity
6.6 By 2020, protect and restore water-related ecosystems, including mountains, forests, wetlands, rivers, aquifers and lakes
12.4 By 2020, achieve the environmentally sound management of chemicals and all wastes throughout their life cycle, in accordance with agreed international frameworks, and significantly reduce their release to air, water and soil in order to minimize their adverse impacts on human health and the environment
12.5 By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse
15.5 Take urgent and significant action to reduce the degradation of natural habitats, halt the loss of biodiversity and, by 2020, protect and prevent the extinction of threatened species¹ Several UN SDG subtargets were initially designated to be reached by 2020. However, sources such as the UN’s Global Biodiversity Outlook state that goals related to nature have not been met. OMV still considers the attainment of these goals relevant past the year 2020, and thus still links these SDG subtargets to its strategic targets.

Our internal Environmental Management (EM) Standard stipulates an assessment of environmental impacts and risks, and adherence to environmental performance requirements in terms of energy use, emissions into the atmosphere, water use and discharge, the use of raw materials, waste management, hazardous substance handling, and biodiversity and ecosystem protection. In 2020, the Environmental Management Standard was revised and minimum requirements on odor emissions were established. In 2021, we revised the Environmental Management Standard again. This time we added minimum requirements on H₂S in vented gas and the design of the environmental processes to complement the implementation of the EM Standard.

Before undertaking new operational activities or entering new countries, we perform environmental risk assessments, including evaluations of local legislation, the potential impact of our activities on sensitive and protected areas, and the effects on endangered species. Each subsequent phase of project implementation is accompanied by a detailed assessment of environmental risks.

The framework and methodology for our coordinated Group-wide Environmental Risk Assessment are based on best practice standards, meet ISO 14001 requirements, and ensure the consistent qualitative assessment of operational risks and impacts related to the environment. The resulting environmental risk database includes information on existing controls for environmental risks and future actions required.

The OMV Group Environmental Management Standard furthermore defines the process of carrying out Environmental and Social Impact Assessments (ESIAs), mainly for projects. Preventive and mitigation measures and the monitoring program to ensure implementation of the proposed measures are documented in an Environmental and Social Management Plan. The final ESIA report is submitted to the local regulator or lender (whichever is applicable) for review, public disclosure, and approval.

The OMV Group Environmental Management Standard requires that all relevant OMV businesses and activities (including investment, acquisitions, and divestment) implement an Environmental Management System (EMS) consistent with ISO 14001 and adhere to the minimum requirements listed. All relevant OMV businesses are required to review and update the EMS at least once per year, while a full EMS audit must be carried out either by an external independent auditor or OMV corporate environmental experts every three years for sites not certified to ISO 14001. Internal EMS audits are performed at the local level regularly and as necessary to identify improvement measures.

Governance

There is a high degree of interdependence between the Environment material topic and the material topics Health, Safety, and Well-Being as well as Security, Emergency, and Crisis Resilience. Thus, these distinct material topics are governed centrally by Group HSSE. The OMV Group HSSE department is organized in specialized teams with experienced experts, in areas such as:

• Development and implementation of OMV’s HSSE strategy, regulations, and processes
• HSSE risk assessment
• Incident investigation
• HSSE data analysis and reporting
• Environmental management
• Process safety management
• Security and resilience management

Group HSSE is led by the SVP HSSE, who reports directly to the Chief Executive Officer. There are HSSE departments at OMV Petrom and Borealis, which oversee their specific issues and coordinate their local HSSE officers and experts. The OMV Petrom and the Borealis HSSE departments report functionally to the SVP HSSE at Group level.

Our commitment to environmental protection is anchored at the highest level. The Executive Board’s bonus is subject to a Sustainability Multiplier. This Sustainability Multiplier considers the number and volume of oil spills, among other factors. The multiplier, and thus the Executive Board’s bonus, is reduced in case of high frequency and volume of spills.

Environmental awareness is promoted throughout the Group through various activities. For instance, Quarterly Exchange on Environmental Management meetings are held where environmental experts and interested colleagues from all countries can learn about best practices being implemented at other sites and gain inspiration. At OMV Petrom, a contest to highlight key initiatives in the company was launched, with winners receiving awards from the Petrom Executive Board. Due to COVID‑19 restrictions, this event was organized online, reaching over 1,300 employees.