Community Investments

Our community relations processes and projects help us develop mutual trust and respect between OMV and nearby communities, thus helping us maintain our social license to operate and create win-win situations for all.

2022 Investments by Main SDGs and by Beneficiaries

Management and Due Diligence Processes

Needs Assessments

Community development investments are always aligned with identified local needs and made following consultation with local stakeholders, as well as following consideration of country-specific priorities in relation to the Sustainable Development Goals (SDGs). We prioritize projects with the potential for generating long-term societal value and making a lasting change to beneficiaries’ lives. Community and social investments are aligned with the SDGs and the community needs identified during SIAs, or with broader societal priorities (e.g., by consulting the Social Progress Index¹ The Social Progress Index, developed by the Social Progress Imperative, is a comprehensive measure of real quality of life, independent of economic indicators across countries. More details can be found at: www.socialprogress.org).

We aim to implement our projects in partnership with lo­cally active stakeholders or non-governmental organizations to ensure a maximum social return on our investment. We implement our community development projects as investments, and thus expect each project to generate a return for our communities, or society more broadly. These initiatives often also include knowledge transfer initiatives aimed at building the local technical capacity of potential workforce or supply chain partners.

Prioritization

OMV’s key focus areas for our community and social investments are the following:

• Access to basic services: SDGs
  
• Education, entrepreneurship, and employment:
  
• Climate action and circular resource management:
  

In addition to the priorities defined by the Group, individual countries or subsidiaries also identify priorities that are specific to them. For instance, the Borealis Social Fund has defined three areas of social engagement that contribute to SDGs 14, 6, 7, and 4.

Corporate Volunteering

OMV Group employees are encouraged to personally play an active part in sustainability initiatives, including through volunteering. We offer OMV employees the opportunity to actively engage in encouraging responsible and sustainable behavior, and facilitate employee involvement with charitable partners. Group-wide volunteering activities in line with specific targets are part of our community and social investments. In view of the restrictions imposed by the global pandemic, volunteering has only been possible to a limited extent over the last few years. Nevertheless, it was possible to have some outdoor activities. For instance, since 2019, OMV has been supporting a Climate Research Forest in Matzen-Raggendorf, Austria, together with the Austrian Research Center for Forests (BFW). As this area is particularly warm and dry, it is the perfect research location, and therefore the purpose of this forest is to study which tree species are particularly fit for climate adaptation and increased CO₂ absorption through forests that are more climate fit. At an outdoor team building event, OMV and Borealis employees actively participated in managing the climate forest by cutting maintenance trails using saws and pruning shears. The participating employees also gained a greater understanding of the research and the importance of the trees that have been planted there.

We also continued our tree planting activities in Romania and New Zealand. Over the course of the three-year Romania Plants for Tomorrow campaign, 10,408 volunteers (5,700 in 2022) contributed to the planting of 2 mn seedlings over an area of 453 hectares. As part of New Zealand’s Project Crimson, almost 190,000 trees have been planted since 2020.

2022 Actions

Impact Snapshot: Access to Basic Services for Health, Water, and Food

In 2022, we continued to invest in infrastructure to improve access to basic services such as health care and water. The former is especially important during the ongoing COVID-19 health crisis. Our investments have focused on supporting underserved communities or areas with limited access to basic services in countries where we operate, in line with our commitment to respecting human rights.

Humanitarian Aid for Ukraine

The refugee crisis began in Europe in late February 2022 after Russia’s invasion of Ukraine. Millions of refugees fleeing Ukraine were recorded across Europe in the past year, increasing the urgency of humanitarian assistance. To support the mobility of relief supplies to the affected regions and to help ensure the health and well-being of the affected population, OMV donated fuel vouchers worth EUR 1 mn to charitable organizations, including the Austrian Red Cross, SOS Children’s Villages, and Caritas. In addition, OMV Petrom donated EUR 100,000 to the Civil Society Development Foundation (CSDF) and the Foundation for SMURD to purchase medical equipment and clothing, EUR 700,000 to UNICEF Romania, and EUR 300,000 to the Romanian Red Cross. Through the Borealis Social Fund, Borealis donated EUR 250,000, which was split between two organizations: the Austrian Red Cross and Caritas in Austria. Both organizations are working closely with their respective country organizations in both Ukraine and neighboring countries, and have their own staff in Ukraine, at the borders, and in Austria that receive and support refugees.

OMV also offered its employees the opportunity to support non-profit partner organization Train of Hope on a voluntary basis during working hours. More than 90 volunteers participated in the program, for example by supporting in the kitchen, warehouse, or children’s corner. In cooperation with the OMV Works Councils at all locations in Austria, we collected urgently needed items such as non-perishable food, hygiene products, toys, and clothing.

Minutes of Flight, for Hours of Life

OMV Petrom supports the project “Minutes of flight, for hours of life” set up by the Blondie Association, which supports children with serious medical conditions, from vulnerable families, or at risk of abandonment by providing the assistance they need for treatment and recovery. The Blondie Association provides these children with transportation from Romania to various medical centers in Europe or within Romania that they would otherwise be unable to afford. In 2022, 47 medical flights were made to 10 countries in Europe, Turkey, and Israel, carrying 78 children and 4 adults.

Sustainable Power and Water Supply in Yemen

In 2022, OMV Yemen completed one of its Community Development Projects: the installation of a solar-powered water pump system for the neighboring community of Astor village, approx. 12 km away from the OMV Block S2 in the Shabwah Governorate. This project is the largest of its kind in the Arma district and was implemented in close collaboration with local stakeholders.

The installed system has been proven to deliver a reliable power supply that is sufficient to pump water from the village well, ensuring ample water supply for local beneficiaries using clean and cheap energy. System operation and maintenance was additionally accomplished through the training of beneficiaries by the local vendor. Previously, the local desert community was using a diesel-powered pump system with high operating costs. A total of 620 villagers are now benefiting from clean energy via an environmentally friendly power solution with the aim that they will acquire the knowledge of how to operate and maintain the equipment in the long term.

Water for the World Program

Borealis and Borouge support Water for the World, a joint program to promote solutions, expertise, and know-how to address global water challenges in rural and urban communities. Billions of people around the world lack access to clean water and a reliable energy supply. This violates the human right to water and sanitation and is a major impediment to the economic and social development of millions of households. Having reliable access to clean water and sanitation helps ensure that low-income families are not exposed to water-borne diseases, while having a reliable energy supply means that families can give their children opportunities that may otherwise be unavailable to them. In certain parts of the world where water scarcity has resulted in severe drought and lack of food supply, many communities have also suffered from hunger and malnourishment. Having a reliable energy source is essential as it indirectly contributes to good health, either by enabling the supply of clean water for hygiene purposes or by powering health care facilities. As such, energy is key in controlling the spread of diseases; for example, the human cost of and global recovery from COVID-19 could have been significantly worse if hospitals and communities had not had access to power.

Through Water for the World, Borealis and Borouge have been providing solutions to help ease the burden on impacted communities since 2007. Since 2008, Borealis has been cooperating with a range of non-profit organizations around the world to support numerous projects across Asia and Africa (including China, Ethiopia, India, Kenya, Nepal, Morocco, Myanmar, and Pakistan) that benefit over 1 mn people. For example, Mozambique is one of the world’s poorest countries, with half the urban population living below the national poverty line and only a quarter having access to clean, piped water. With increasing urbanization, there has also been a growing demand not only for access to clean water, but also for a reliable and sustainable supply of energy.

Additional projects contributing to SDGs 1, 2, 3, 6, and 7 can be found on the OMV website.

Impact Snapshot: Education, Entrepreneurship, Inclusion, and Employment

In 2022, we continued to develop community projects that promote self-sufficiency, job growth, and economic development within communities impacted by our business operations. Education, entrepreneurship, and employment are key factors in socioeconomic development and posi­tively contribute to numerous other SDGs. OMV has been involved in community and social investments focused on education, entrepreneurship, and employment for many years now. We invest in vocational training, microlending, scholarships, and building supplier capacity. Some of the key initiatives that the OMV Group has been actively involved in include:

Tasharok: Empowering Communities in Tunisia

OMV Tunisia completed the Tasharok project in Gabes, which was celebrated with the community in the presence of regional officials and OMV partners. The aim of this project was to bring about a positive change in Basboussa and Bouchemma, two communities in the vicinity of the Nawara Gas Treatment Plant (GTP), by: enhancing the city’s waste management services in collaboration with the municipality, and equipping it with the necessary materials and equipment; collaborating with a local micro-grant program for the benefit of Basboussa community members so they can create small-scale economic activities to improve their financial situation and support their families; and bringing people together to organize and support each other in resolving community issues through the creation of a community-based organization, and acting as a representative for the Basboussa neighborhood.

Early Childhood Education and Care in Romania

In Romania, the participation rate in early education has decreased in recent years and is among the lowest in Europe. Government spending on pre-school education is much lower today than it was ten years ago. The OMV Petrom Foundation has addressed this lack of investment by launching an early education project at national level, targeting 60,000 pre-schoolers and 10,000 parents from 500 disadvantaged communities. With a budget of EUR 2.7 mn, the Start in Education project addresses the immediate needs of the most vulnerable pre-school children, mainly in rural areas, by facilitating their access to educational resources, providing an educational kit, and helping their parents manage early learning experiences through the Parents’ School program. This ensures that more children are being enrolled into kindergarten.

CODY21: Digital Education Program in Austria

CODY21 offers virtual education in elementary schools in Lower Austria through interactive video units on basic digital education. OMV finances the CODY21 platform and thus makes an important social contribution to education and equal opportunities for a total of 3,200 school children in OMV’s partner communities.

Additional projects contributing to SDGs 4, 5, 8, and 10 can be found on the OMV website.

Impact Snapshot: Climate, Energy, and Circular Resource Management

Climate and environmental changes inevitably affect communities around the world and their livelihoods, health, and opportunities. We can no longer afford to tackle the social challenges the world faces without recognizing the extent of the effects environmental changes can have on people and their health and well-being. Climate change, access to sustainable energy, and environmental protection are key priorities in our community and social development efforts. Some of the key initiatives that the OMV Group has been actively involved in include:

RoEficientă: Energy Efficiency in Romania

România Eficientă is a unique initiative in Romania that aims to create a culture of energy efficiency in the building sector. There are two main components and goals that drive this project: firstly, information, education, and public awareness, and secondly, carrying out major reno­vations based on NZEB standards at a couple of the public schools in Romanian counties, including building a pilot school in Ploiești. This initiative is strongly backed by the energy and climate policies in the European Union and is largely centered around the principle of energy efficiency.

In 2022, Elie Radu High School in Ploiești and Lilieşti Secondary School in Băicoi (Prahova County) were renovated according to the latest energy efficiency standards. The Ovidiu (Constanța County) kindergarten selected for the program also underwent a technical review. OMV Petrom has also donated approx. EUR 8 mn to România Eficientă to be used for the renovation of six additional educational institutions by 2026.

Upcycle Ocean Trash Competition in Malaysia

In 2022, SapuraOMV supported a competition that aimed to educate elementary and high school children on the topic of rising volumes of plastic waste that is disposed of into the sea in Miri, Sarawak. As part of the competition, school children collected the waste materials they found on the beaches in Miri and repurposed it to build a replica of Miri’s new city hall building. The competition aimed to foster community outreach by cleaning the beaches in Miri city (about five beaches), create awareness among the younger generation of the waste found on the shores in Miri, and raise awareness of the impact of plastics and waste on marine life (life below water) such as dolphins, turtles, coral, and other small animals.

OMV Petrom Supports Circular Economy Projects with Social Impact

In 2022, OMV Petrom launched several initiatives to raise awareness about circular economy and foster the transition to a circular economy in Romania. For example, OMV Petrom partnered with Flip.ro with the aim of recycling smartphones that were due to be scrapped. Over 500 smartphones were purchased by Flip.ro in 2022 for the purpose of being refurbished and resold with a 12-month warranty. Over the course of the three-year project, 2,500 smartphones will be refurbished. By reintroducing the refurbished smartphones into circulation, we will contribute to reducing the volume of waste and carbon emissions. By doing so, we will prove that circular economy projects can be successfully implemented on the Romanian market.

Other initiatives that support circular economy projects with a social impact include the “Let’s click on Romania” project, developed through a partnership between private companies, Ateliere fără Frontiere, and 230 schools in disadvantaged areas. Over the course of this project, 4,000 refurbished computers were donated to 110 public schools, avoiding 600 t of CO₂ emissions.

Waste and Resource Efficiency: Project STOP

Pollution, in particular the leaking of plastic waste into the environment, is a global challenge, and according to the OECD’s Global Plastic Outlook report, this is expected to worsen globally. In 2017, Borealis and SYSTEMIQ launched Project STOP (more information can be found here), an initiative that uses a “system enabler” approach, in which a team of experts in waste management, plastic recycling, organics management, behavior change, and program governance help a city design and then implement a low-cost waste management system. As a result, all households and institutions benefit from collection, and plastics are kept out of the environment. The project targeted highly polluted areas in South-East Asia, with the first city partnership established in 2018 in Muncar, Indonesia. Project STOP currently operates two additional city partnerships, in Pasuruan, also on the island of Java, and Jembrana, on the north coast of Bali.

In 2022, the first city partnership, Project STOP Muncar, started its new autonomous phase where the system was managed solely by local government and the community. To ensure the system continues to function once the Project STOP team has handed it over to the municipality, a comprehensive education program was also developed to train municipal employees. The Project STOP team will remain available for support and advice, if needed. The projects in Pasuruan and Jembrana are scheduled to be completed during 2023. Upon completion, the programs run in Muncar, Pasuruan, and Jembrana will have provided waste collection services to 2 mn people, established over 1,000 new full-time jobs, and enabled the collection of 230,000 t of waste (25,000 t of plastic) annually.

At present, waste collection and sorting costs related to the project are covered by revenues from material and waste collection service fees. To ensure that this system can be sustainably financed and scaled up over the long term, Project STOP has started working on implementing novel financing instruments, for example plastic credits. The underlying ambition of this project is to develop a blueprint model and to share its know-how, thereby enabling a multitude of stakeholders to replicate the approach in other regions.

Project STOP achievements by the end of 2022 included:

• 333 new full-time jobs created in waste collection, sorting, organic processing, and management and administration
• 303,940 people provided with waste collection services for the first time in their lives
• 41,002 t of waste (including 5,092 t of plastic) collected, sorted, and further processed

Additional projects contributing to SDGs 7, 11, 12, 13, 14, and 15 can be found on the OMV website.

Outlook

We will continue supporting the UN Sustainable Development Goals through a number of community relations and social investment projects worldwide, working closely with communities in the vicinity of our operations.

In 2023, we will review our prioritization of focus areas in line with our sustainability strategy and define common Group-wide areas that take into consideration the ongoing energy transition and climate change. We will also continue our ongoing social projects to meet the needs of people in the communities where we do business.

To emphasize the importance of social investments in all countries where we conduct business or operate, a target has been clearly defined in the Strategy 2030.