Public Policy

The OMV Group fully supports the goals of the Paris Agreement and recognizes that the regulatory framework can help achieve progress on issues such as resource efficiency, climate change, waste reduction, safety improvements, fair trade, and marine litter. Regulators, political stakeholders, and non-governmental organizations (NGOs) can all shape the regulatory framework that affects the Group’s business. Therefore, the OMV Group needs to understand the policy, regulatory, and NGO environment and ensure that it can contribute its knowledge and insight to discussions regarding the future of the regulatory framework.

The OMV Group is a member of industry associations to support the understanding of issues, share knowledge, help develop standards, and provide input to regulatory authorities on behalf of the sector. OMV’s association activities make an important contribution to the broader debate on a sustainable, affordable, and secure energy future, as well as sustainable chemicals. Both the energy transition and the transformation from a linear to a circular economy can only succeed if all stakeholders, including legislators, businesses, and society, engage in productive debates. As a voice from the world of business, associations participate in precisely these important debates and contribute their proven expertise on various aspects of policy.

Management and Due Diligence Processes

Direct Political Engagement

The OMV Group is active in economic policy but does not support political parties. Donations to political parties are not permitted as per the Code of Business Ethics. Activities organized by political parties are not allowed on the premises of the OMV Group. There are no restrictions on engaging in political or public functions or engaging with special interest groups within the framework of legitimate secondary employment. However, it is not permitted to associate the OMV Group with such activities. As with other secondary employment, employees must conclude an agreement with OMV that regulates the details of such activities. Employees must disclose a conflict of interest between the exercising of political or other public functions and their employment with the OMV Group to their line manager and to Compliance.

Indirect Political Engagement

The OMV Group exchanges views on regulatory issues with the responsible political decision-maker(s) and actively partic­ipates in EU and national public consultations on legislative initiatives that are relevant to the Group’s business. It is an active member of industry associations and standardization groups at international, EU, and national levels to stay at the forefront of regulatory and public requirements. The OMV Group representatives make OMV’s position clear on the issues tackled by the associations of which we are members. It aims to inform EU policies by engaging with major industry associations such as Fuels Europe, the European Chemical Industry Council (Cefic), Plastics Europe, and the Polyolefin Circular Economy Platform (PCEP).

Transparency

Our practices are fully in line with all reporting obligations at national and EU levels, and we are fully compliant with all transparency requirements. Interaction with governments and regulators takes place at international, European, national, and local levels.

Monitoring Participation in Industry Associations

Associations aim to adopt positions that reflect a consensus view among members, and thus may not always reflect the view of each individual member. We continuously monitor our membership of associations and their positions on issues so we can consider whether our memberships remain appropriate. As part of our commitment to transparency on climate action, we report not only on our own position and action on climate change, but also on the position of the key industry associations of which we are a member. The OMV Group also regularly reports on the alignment between the industry associations of which we are a member, including OMV’s position on climate change policies. Read our latest review here.

In cases of misalignment, particularly partial misalignment, we will first advocate for changes to the association’s position. Where OMV and an association’s position continues to fail to align, especially in cases of complete misalignment, we will reassess our membership. The OMV Group plans to regularly publish an update on its industry associations review and to expand the scope of review further.

2022 Actions

The following key activities were carried out across the Group in 2022:

• In 2022, the EU Green Deal, the Fit for 55 package, REPowerEU, and the Hydrogen and Decarbonized Gas Market Package were the most relevant regulatory issues for the OMV Group in the EU. The OMV Group monitored the legal development and contributed to the positioning of the industry associations.
• Sustainable finance legislation, including the EU taxonomy, was also on the agenda and the OMV Group participated in the relevant working groups at industry associations.
• The conflict between Russia and Ukraine and the incident at the refinery in Schwechat, Austria, raised new issues and required additional and specific activities of the OMV Group, for example regular exchange of information with ministries on those specific topics. The OMV Group was represented on the Platform on Sustainable Finance, whose first mandate ended after two years in October 2022. As a permanent expert group of the European Commission, the Platform assists the European Commission in developing its sustainable finance policies, notably the further development of the EU taxonomy. Its main purpose is to advise the European Commission on several tasks and topics related to further developing the EU taxonomy and to support the Commission in the technical preparation of delegated acts in order to implement the EU taxonomy. In 2022, OMV’s expert worked in the Technical Working Group, developing technical screening criteria for the environmental objectives of the EU taxonomy.
• During our 2021 industry association membership review, we found some partial misalignments and have begun working with the associations in question to get them back to full alignment. Among the associations’ governing boards and task forces, OMV Petrom promoted a stronger and express commitment and similar initiatives to the targets of the Paris Agreement. Consequently, FIC and ARPEE have registered an uptick in advocacy efforts focused on sustainability and will consider a dedicated stance on the matter in the upcoming period.

Outlook

In 2023, the Fit for 55 package and REPowerEU will be the most relevant regulatory packages for the OMV Group in the EU, as well as all initiatives regarding the circular economy. The OMV Group will closely monitor upcoming public consultations.

The war between Russia and Ukraine might continue to trigger unpredictable developments, which will require flexible solutions. As an important pillar for more sustainable energy, the OMV Group will continuously analyze and engage in projects that are contributing to accelerating the clean energy transition and circular economy – as well as the regulatory framework of such projects.