Community Impacts and Grievances

We acknowledge that the presence of OMV’s business has direct and indirect impacts on local communities. We aim to steer the impacts of our business activities in a positive direction by building and maintaining mutual trust and pursuing respectful community relations, investing in local development, safeguarding human rights, and ensuring that the local suppliers who work with OMV follow sustainable practices. Transparent and prompt communication with local communities that ensures their voices and concerns are heard and addressed helps OMV establish good relations with those impacted by our business operations and supports us in creating a conducive operating environment for the business.

Management and Due Diligence Processes

Community Consultation and Social Impact Assessments

Our community relations and development management process is based on centralized policies and targets, and is implemented by locally responsible persons using local resources. In line with our community relations and development procedure, which is in effect for all countries in which we are active, we engage with local communities through tailored programs. For instance, all OMV E&P projects require community consultation in the development phase. In 2022, 5 out of 17 projects were in the process of community consultation.

We start by conducting a Social Impact Assessment (SIA), which includes the free, prior, and informed consent (FPIC) of local stakeholders. Sometimes, an SIA is integrated into an Environmental and Social Impact Assessment (ESIA) to foster synergies and efficiencies. The purpose of an SIA is to ensure that the views of the local communities, especially of indigenous peoples, are incorporated into and addressed throughout all phases of the project life cycle: commissioning, operation, and decommissioning or abandonment. We also pay particular attention to any possible impact on human rights.

Based on the internal guidelines for conducting SIAs, we include a baseline study, community needs assessments, stakeholder analyses, and a study of social risks associated with the project. Where possible, SIAs are conducted in a participatory manner by directly consulting with potentially affected communities. Our standards require the outcomes of the SIA to be communicated to affected stakeholders. Based on the outcome of the SIA, site-specific strategies for community relations and development, stakeholder engagement plans, and Community Grievance Mechanisms are developed and implemented.

Community Engagement

We maintain regular communication with the communities that live where we operate and strive to inform them in advance of any planned business activities that may affect them. For example, in the vicinity of our refineries, stakeholders such as local authorities and neighbors are proac­tively informed in advance of any work that may cause a disturbance (e.g., noise from turnarounds) by way of stakeholder meetings, social media, leaflets, and other channels as appropriate. An example of this in action is the “green phone” at the Schwechat refinery, which has ensured 24/7 direct contact for all neighbors for several years now. Every call is answered by the shift supervisor in charge, and in cases of perceived noises or odors, the shift supervisor checks immediately for potential sources in the refinery so that the issue can be resolved as quickly as possible.

When plants are decommissioned or we exit a location, our community relations team ensures that potential social impacts are addressed by drawing up targeted community engagement plans, social impact assessment and management plans, and exit strategies for ongoing community development projects.

Community Grievance Mechanisms

Our approach to managing community grievances follows the precautionary principle of obtaining local approval of OMV operations. This involves identifying and resolving the issues of concern to the local community early on. We strive to conduct our operations in a way that reduces any disruption to our neighboring communities to a minimum; however, grievances can still arise. We manage these grievances through localized Community Grievance Mechanisms (CGMs). The CGMs help OMV and those potentially impacted by its operations resolve issues in a non-judicial manner and, depending on the case, offer access to a solution. Grievances can be communicated verbally or in writing and can also be expressed in local languages. They can be lodged by email, phone, through our community relations and development staff working locally and other locally dedicated channels, as well as at a corporate level.

The CGMs remained fully operational in all operated E&P assets, in the three OMV refineries (Schwechat in Austria, Burghausen in Germany, and Petrobrazi in Romania), and at one power plant (Brazi in Romania) in 2022. A Community Feedback Mechanism (CFM) is in place at SapuraOMV. Borealis has a hotline system where grievances can be reported by both internal and external stakeholders.

At OMV, a CGM is a key tool for preventing and managing our potential impacts on local communities and any associated social risks. Our management of community grievances aims to be fully aligned with the Ipieca best practice guidelines. OMV has set a target to assess the CGMs at all sites against the UN Effectiveness Criteria for Non-Judicial Grievance Mechanisms by 2025. The UN Effectiveness Criteria require the grievance mechanism to be legitimate, accessible, predictable, equitable, transparent, rights-compatible, a source of continuous learning, and based on engagement and dialogue. During these assessments, internal and external stakeholders are consulted on the current performance of CGMs and design improvements that may be necessary.

The CGM Assessment reviews the existing processes and practices in place, and identifies practical improvement measures. It also involves conducting interviews with selected stakeholders. The detailed outcome of each interview is included in the summary of interviews. The main findings (e.g., key strengths, improvement areas, and proposed actions) are included in the CGM Assessment Report, together with the report’s findings and recommendations. The implementation of action plans based on the assessments is closely monitored by the Group community relations expert.

The CGMs stipulate a stringent approach to systematically receiving, documenting, addressing, and resolving grievances in all the countries where we operate, thereby laying the foundation for our social license to operate. We define a grievance as an expression of dissatisfaction stemming from a real or perceived impact of the Company’s business activities. Our grievance management system is based on dialogue with our stakeholders first and foremost, and is designed to prevent any risk of retaliation. The CGMs help OMV and those potentially impacted by its operations resolve issues without resorting to the legal system. However, OMV’s CGMs do not hinder or prevent affected stakeholders, including local communities, from accessing judicial solutions or other remedies for their complaints or grievances. What they do offer is a channel for resolving grievances out of court and, depending on the case, a remedy for community members. For more information on our approach to community grievance management, see the OMV website.

The degree of alignment of the CGMs with the UN Effec­tiveness Criteria is assessed by conducting a review of management processes and consulting with internal and external stakeholders. The assessments result in recommendations and tailored action plans to improve grievance management at site level. The action plans are implemented by local management and monitored by the corporate function. The sites already assessed account for 96% of all registered grievances at OMV in 2022. In 2019 and 2020, such assessments were completed in New Zealand, Malaysia, and E&P Austria, where follow-up actions are currently being implemented in accordance with the findings. In 2022, we began the assessment for Tunisia, which provided assurance to the OMV Group that the assessed CGMs are aligned with the criteria.

2022 Actions

In 2022, the following key improvements were made to the CGMs:

• The CGM procedures at OMV Petrom’s Petrobrazi refinery and OMV Petrom’s E&P division were reviewed based on the Company’s new community grievance management standards over the last few years. A new CGM database has been developed and implemented to ensure the traceability and predictabil­ity of grievance management. At the Petrobrazi refinery, where the CGMs were analyzed in 2018, the newly implemented 24/7 call center service was rolled out to communities in Prahova County in 2022. An assessment of the results will be completed after one year of operation.
• The “We Care” portal was launched and SapuraOMV conducted awareness training for the staff and main contractors of SapuraOMV in Kuala Lumpur, Miri (offshore crew of B15), Labuan (Supply Base), and Pasir Gudang (Jerun Development project team) on the use, procedures, and availability of the Community Feedback Mechanism via the portal. SapuraOMV has also conducted awareness training on staff rights under the Human Rights principles and ensured the availability of a secure channel for staff to report any violations. A Human Rights e-learning course available to all staff since December 2022 will further strengthen these efforts.
• OMV Tunisia began the CGM Assessment against the UN Effectiveness Criteria with the aim of establishing how OMV Tunisia is implementing the CGMs and identifying strengths, issues, and risks. The assessment will be finalized in 2023.

Outlook

We will take the following actions in the coming years to continue to improve our community grievances approach:

• Currently, 85% of OMV’s grievances stem from E&P at OMV Petrom. The assessment of grievances will continue in 2023 so as to identify the root causes, particularly of recurrent grievances from Asset Valahia, and will be completed by the end of the year. The main steps that will be carried out in 2023 will be:
  • The root causes of recurrent grievances based on historical data from the SNOW grievances database and from investigative studies carried out in 2022 will be further investigated and analyzed.
  • Based on the conclusions drawn, further investiga­tive studies of selected historically polluted sites will be conducted and expanded during 2023 in order to evaluate the current status of natural attenuation – with the aim of finding a way to reduce the number of grievances by the end of 2023.
  • The information from the grievances database (griever’s documents – i.e., property related – vs. our updated drawings and plans based on the most recent field visits) will be followed up and continuously updated.
  • The linked information resulting from the LMS and SNOW grievance databases will be improved for better management of raised claims that relate to land rentals and environmental compensation.
• A unique communication plan will be rolled out for the Schwechat refinery in 2023. This includes communication training for the shift supervisors on the green phone, and a link to the green phone on the refinery’s homepage.
• In the Petrobrazi refinery, the working processes will be slightly adjusted to reflect the actual flow. Based on the assessment of one year of operations, the call center will be actively promoted in the community through several media channels.
• SapuraOMV will share the availability of the Community Feedback Mechanism with the communities in the vicinity of its operations – i.e., Pasir Gudang in Johor, Miri in Sarawak, and Labuan. We will send employees periodic reminders about the availability of access points for any feedback on the Community Feedback Mechanism and provide an induction to new SapuraOMV staff.
• OMV Tunisia will finalize the CGM Assessment against UN Effectiveness Criteria and implement any recommended actions to close gaps and strengthen the alignment of Tunisia’s Community Grievance Mechanisms with the UN Guiding Principles on Business and Human Rights.

Target 2025

• Assess Community Grievance Mechanism at all sites against UN Effectiveness Criteria⁵ Nine defined assets on a 100% operator/majority-owned basis from the E&P, Refining, and Power business segments are currently in scope (scope liable to change based on operatorship/divestments). The scope is currently: E&P Austria, E&P Romania, E&P Tunisia, E&P Yemen, E&P New Zealand, E&P Malaysia, Refinery Schwechat, Refinery Burghausen, Refinery Petrobrazi.

Status 2022

• 8 out of 9 sites in scope assessed. In 2022, the focus was on the assessment of the CGM at OMV Tunisia.

Most relevant SDGs

SDG targets:
16.6 Develop effective, accountable, and transparent institutions at all levels
16.7 Ensure responsive, inclusive, participatory, and representative decision-making at all levels