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Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
Sustainability Report - 2007-2008
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Sustainability Report - 2007-2008

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  • 1. Sustainability Report 2007/08“ Everything we do to achieve sustainability enhances our success.”
  • 2. About This ReportDescription The following data are not taken into account forThis OMV Sustainability Report replaces the CSR this report:Performance Reports and HSE Reports of previous c Figures from holdings of equal or less thanyears. The print version presents key informa- 50% if there is no significant operational in-tion on OMV’s sustainability performance. Addi- fluencetional information is provided in the full-length ver- c Environmental data from filling stations, duesion of the report, available on the OMV website. to the fact that the vast majority of filling sta- tions are operated by partners functioning asThe Sustainability Report covers the business independent companies.years 2007 and 2008, in seamless continuationof the 2005-06 reporting period covered in the We work closely with our joint venture partners,last Performance Report and HSE Report. In the filling station licensees, contractors, and sup-future we plan to publish the Sustainability Re- pliers on all matters relating to sustainability.port concurrently with the OMV Annual Report. Examples of how they implement our policiesReaders of this report are welcome to get in are given in this report.touch with us and let us know what they think. ContentReporting Boundaries The information contained in this report relates toThe following data are fully taken into account: the typical impacts of an oil and gas company onc Data from all OMV activities with a stake social and environmental sustainability issues. The of more than 50%, except Kazakhstan and report takes into account recommendations from Petrom Marketing (reporting systems under stakeholder dialogues and industry associations, development) as well as disclosure demands by financial analystsc Joint ventures where controlling influence is and by the general public. The report was prepared exerted and in which OMV acts as an opera- with reference to the guidelines of the Global tor, including minority shareholdings. Reporting Initiative (GRI) and the Greenhouse GasChapter Openers4 18 26Corporate Profile In the Spotlight Environment42 66 72Social Issues and Society Outlook Indicators and Assurances
  • 3. Protocol (GHG Protocol), a corporate accountingand reporting standard developed by the WorldBusiness Council for Sustainable Development(WBCSD) and the World Resources Institute (WRI).We self-declare this report to the A+ ApplicationLevel of the GRI. This self-declaration was checkedand approved by the GRI.Reporting MethodologyData generation at site level relies on a varietyof business-specific methods, process systems,and tools. A central reporting tool that can beaccessed from all OMV sites and offices via theOMV Intranet is used for the Group-wide collec-tion of HSE data. Standardized definitions weredeveloped for all indicators and made avail-able online. The completeness and accuracy ofreported data are checked at corporate level.Cross-checks (over time, between sites, andcomparison with normalized industry-specificdata) are performed systematically. Feedbackand commenting loops with the reporting sitesand departments ensure high data quality. If weidentify limitations in the coverage or reliabilityof data, we disclose them and introduce mea-sures to improve the reporting process. The HSE-related information in this report was reviewedby Ernst & Young. All other content not relatedto HSE was verified by Dietmar Kanatschnig,director of the Austrian Institute for SustainableDevelopment.Corporate HSE RegulationsOMV regulations for HSE management and re-porting are contained in corporate directives(HSE Policy; HSE Management System; HSEAwareness and Competency; EnvironmentalManagement; Safety Management; Investigation,Management, and Reporting of Incidents; Emer-gency and Crisis Management; Health and HealthManagement), and standards (e.g. HSE Terms andDefinitions).
  • 4. LinksThis To help save natural resources by avoiding repe- more detailed descriptions of specific subjects orsymbol tition in our periodic reporting, this OMV Sustai- chapters of the report can be found there. A textpoints to nability Report is a combination of two previous passage on the website will be indicated by a Webadditional reporting formats, the Corporate Social Respon- symbol. The OMV Annual Report, which is pub-informa- sibility Performance Report and the HSE Report. lished concurrently with the Sustainability Report,tion on For the same reason, OMV decided to publish on focuses on performance data but also containsthe OMV its website or in its Annual Report certain subject information on the OMV organizational structure,website: matter and detailed data which must be included objectives and strategy, corporate governance, risk in comprehensive sustainability reporting in order management, and the business segments.www.omv. to meet the criteria of the A+ Application Level ofcom the GRI Reporting Guidelines. In the present report, reference is made to the OMV website whenever Organizational Structure Objectives and Strategy General information on the manage- Objectives and strategy of OMV as well ment and ownership structure of as of the operating business segments OMV and Petrom Corporate Governance Management structure of OMV, including the Statement of the Supervisory Board, compensation of the Executive Board members, and a description of the inde- pendence of the audit bodies Risk Management Description of the key risks identified and the preventive measures taken Operating Business Segments Description of the operating activities in the business segments Exploration and Production (E&P), Refining and Marketing (R&M), and Gas and Power (G&P) Financial Performance Presentation of the performance data for the 2008 reporting period in the directors’ report, consolidated financial statements, and performance indicators
  • 5. ContentsfF* About This Report02 Foreword by the CEO04 CORPORATE PROFIlE10 Corporate Structure11 Products and Production12 Strategy and Objectives14 UN Global Compact and the OMV Code of Conduct15 Values16 OMV in Dialogue18 In THE SPOTlIGHT20 Future Mobility21 Is the World’s Oil Running Out?22 Energy Security in Europe23 A Turbulent Oil Market24 Biofuels25 OMV in Socially and Politically Sensitive Regions26 EnVIROnMEnT28 Our Approach29 Energy Management30 Climate Protection and Emission Management35 Sustainable Resource Management39 Environmental Impacts of Our Products42 SOCIAl ISSuES44 Employees48 Health50 Safety56 Human Rights61 Business Ethics62 Community Relations66 OuTlOOk68 Future Energies and Innovation72 PERFORMAnCE InDICATORS AnD ASSuRAnCES74 Performance Indicators77 GRI Content Index80 GRI Application Level Check81 Third-Party Statement82 Ernst & Young Independent Assurance Report84 Sustainability ProgrambF* Abbreviations and Definitions * fF = front FlapbF* Impressum bF = back Flap Contents | OMV Sustainability Report 2007/08 1
  • 6. Foreword by the CEO Welcome to the Sustainability Report 2007/08. Sustainability has become a buzzword today, yet It is a pleasure for me to present the OMV this term is often understood in very different Sustainability Report 2007/08, which repre- ways. Before I come to the report itself, I would sents a milestone in OMV’s history for several like to begin by explaining what sustainability reasons: means to OMV. c This is our first-ever Sustainability Report (formerly CSR Performance Report), the result We see corporate sustainability as supported by of unstinting efforts to develop and expand our three pillars: activities in the sustainability area. c An economic pillar, i.e. profitable growth; c The new format combines the CSR Perfor- c An environmental pillar, i.e. the responsible mance Reports and HSE Reports published in use of natural resources, and the preservation of previous years. the basis for life on earth; and c The OMV Sustainability Report and the OMV c A social pillar, i.e. equitable and peaceful co- Annual Report are being published for the first existence, and ensuring the right to a decent life. time concurrently, as twin reports. “ For OMV, sustainability is not something to which we pay lip service. It’s how we manage our business. Profitable growth is inextricably linked with environmental and social responsibility. These are the elements that guarantee sustainability. Our genuine commitment to sustainability becomes all the more apparent in a challenging ” environment. In the English-speaking world, these three pillars These changes are intended to underscore a key are summed up in the phrase “people, planet, fact: Sustainability is an integral part of OMV’s profit.” Together they constitute the triple bottom business. Only the simultaneous publication of line and reflect a firm belief in the linkage be- both financial and non-financial indicators can tween the three elements. As a signatory to the give readers a fully up-to-date, complete, and UN Global Compact, we can claim to be behav- accurate picture of OMV. Thus the aim of this ing in a sustainable manner only when we take report is to provide a transparent account of our all three aspects into consideration in our deci- activities since the last CSR Performance Report. sions and activities, from our corporate strategy and values to the actions of any one of our We can all take pride in what has been achieved employees, whether they work in an exploration in this period: well, in natural gas logistics, at a refinery, or at a c Petrom made great strides in implementing its filling station. Each member of the organization modernization program, which involved a variety is called upon to make a contribution within his of investments with positive environmental and or her sphere of influence, for it is those indi- social impacts. vidual achievements which in toto pave the way c OMV established a Carbon Management func- for the long-term sustainable development of tion and set targets for the reduction of green- our business. house gas emissions. c New corporate directives on sustainability management, including a human rights matrix and a Business Ethics Directive, were approved. c OMV launched a safety program aimed at preventing road accidents, and introduced the new incident reporting and management tool “Think:Ahead CARE.”2 OMV Sustainability Report 2007/08 | Foreword by the CEO
  • 7. All of us at OMV are distressed by the number of Nevertheless, with its solid financial structurefatal injuries that occurred during this period, the OMV is well placed to weather these new condi-majority of them the result of traffic accidents. tions. Cost-saving measures implemented earlyMy deepest sympathy goes out to the families of on now give us the flexibility required to respondthe victims. Accidents like these cannot be toler- quickly to new opportunities as they arise. I seeated. The Executive Board has instituted mea- the forecast slowdown in growth, accompaniedsures to ensure that the causes are investigated by more focused investments, as offering us aand the necessary steps taken to prevent similar chance to integrate sustainability structures evenaccidents from occurring in the future. more firmly within OMV; further promote aware- ness of sustainability issues; and accentuate theFatal accidents, several incidents in our plants, fact that social and environmental responsibilityand an oil-spill rate that remained unacceptably contributes to OMV’s successful performance.high – they all serve to remind us that we stillhave a considerable way to go on improving our Thus we want to be and to remain a profitableperformance. In light of the challenging environ- investment, a welcome guest in the countries inment, and also our understanding of sustainabil- which we operate, and a good employer.ity as an integral aspect of our activities, it is clear,however, that the development and implementa-tion of the elements of sustainability can only gohand in hand with business development, whichindeed they should foster and support.That is why each of the chapters in this reportcovering the different areas of sustainability in-cludes goals for the further implementation and Wolfgang Ruttenstorferstrengthening of sustainability at OMV. Theseare clearly summarized in the OMV Sustainabil-ity Program at the end of the report. I invite you,the reader, to let us know how you view OMV sothat with your help we can look for more ways toimprove and therefore together we can contrib-ute to sustainability at OMV.I foresee a number of challenges for sustainabil-ity in the coming year: We face a tougher market,low oil prices and weak refining margins will putpressure on results, and the battle for resourcesand market share is due to intensify. Our genuinecommitment to sustainability becomes all themore apparent when times are hard. Foreword by the CEO | OMV Sustainability Report 2007/08 3
  • 8. THE ECONOMY AND CORPORATE SOCIAL RESPONSIBILITY“ What can a company do to weather the economic storm?” Michael Diglas, Telekom Austria
  • 9. “Stand firm on its commitment to social responsibility.”Horacio Haag, Health, Safety, Security,and Environment, OMV
  • 10. HUMAN RIGHTS“How does a multinational corporation earn universal respect?” Julia Hampl, university student
  • 11. “By respecting the rights of the individual.” Daniel Jagsch, Avanti Brand Management, R&M, OMV
  • 12. ENVIRONMENT“Why have you made environmental protection a top priority?” Michaela Obemeata, university student
  • 13. “Since the earth’s resources are finite, we have to take responsibility now, not later.” Julian Roberts, Environment, E&P, OMV
  • 14. Corporate Profile | In the Spotlight | Environment | Social Issues | Outlook | Indicators Corporate Structure Integration of Sustainability within the Organization OMV’s Corporate Affairs & Sustainability (CA&S) “Management of Corporate Social Responsibil- Department is in charge of matters related to ity – Processes and Commitments,” based on the corporate social responsibility (CSR) and health, global social accountability standard SA8000. safety, security, and environment (HSE). When These management systems apply to all consoli- the former Corporate Affairs and HSE depart- dated holdings and non-consolidated holdings ments were merged to form CA&S in 2008, es- over which OMV exercises a controlling influ- sential responsibilities associated with the social ence. and environmental pillars of CSR were combined into one management function. CA&S reports Our joint venture partners are expected, and our directly to the CEO. Each operating business seg- contractors are required, to implement HSE and ment has a CSR manager and an HSE manager, CSR standards which are in accordance with ourOrganizational Corporate Petrom andresponsibility for Business Segmentssustainabilitythrough CSR, CEO PetromHSE, and HR:www. Homv. Corporate Corporate Human R Exploration and SE CScom Communications Resources Production Alignment Corporate Corporate Affairs Refining and Development & Sustainability Marketing HR Future Gas and Power Energy Fund HSE Global Legal CSR Solutions who report to the OMV Executive Board. The corporate directives. Our approach to sustain- Corporate Human Resources (HR) Department ability goes far beyond legal compliance. We see also deals with sustainability issues. CSR, HSE, sustainability as a process of ongoing improve- and HR are staff functions with specific respon- ment rather than as a project with a definable sibilities and processes for the coordination and conclusion. The HSE and CSR managers support implementation of social and environmental the integration of the triple bottom line approach – activities in the operating business segments. with an emphasis on the social and environmen- tal aspects – into OMV’s business activities. The Two management systems were set up to ensure business segments coordinate their HSE and sustainable value creation. In 2006, OMV intro- CSR strategies and activities with CA&S. The duced a corporate HSE management system CSR Committee, managed by CA&S, was estab- based on international environmental standards lished to provide strategic coordination across such as ISO 14001 and health and safety stan- business segments and departments. dards such as OHSAS 18001. It was followed in 2008 by the adoption of the corporate directive10 OMV Sustainability Report 2007/08 | Corporate Structure
  • 15. Products and ProductionSustainability in the Value Chain fuels, our product range includes bitumen, oils,Over the last decade, OMV has grown to become lubricants, gas, and heating oil, as well as spe-Central Europe’s leading integrated energy group. cialty products, such as petrochemical productsWe explore, discover, and extract oil and natural and fertilizers, for our industrial customers.gas in six core regions, providing millions ofpeople with energy, heating, mobility, and every- Being a fully integrated energy group, OMVday products and services. OMV works hard to continually looks for ways to achieve synergiesimprove people’s mobility and quality of life. between the business segments and all along the value chain. For example, we produce natu-Our actions reflect our responsibility towards ral gas and then transport it, store it, and eitherpeople, towards the environment, and towards market it as gas or convert it to power or heat intechnological progress. OMV produces far more our own plants.than just fuel. Along with gasoline and diesel Oil Production Refining Products Product Pathway The value chain of OMVExploration GasolineAppraisal Gasoline mixDevelopment E&P oil production Aviation fuelProduction Diesel Combustion, Oil to energy heat & powerAbandonment Diesel mix Fuel oil extra Fuel oil Others Oil supply from market Ethylene, propylene Plastics Oil to non-energy Bitumen, coke, lubricants Lube oil Sulfur Chemicals ETBE, FAME, Renewables wooden pellets, others Gas Production Marketing & Trading Products/Services Product PathwayExplorationAppraisalDevelopment E&P gas productionProductionAbandonment Combustion, Gas to energy Gas sales heat & power Gas supply from market Gas to non-energy Fertilizer Agriculture Renewables Biogas Products und Production | OMV Sustainability Report 2007/08 11
  • 16. Corporate Profile | In the Spotlight | Environment | Social Issues | Outlook | Indicators Strategy and Objectives Group Management StrategiesThe OMV Strat- OMV operates in a challenging business environ- As a pioneering professional partner, OMV ensuresegy in detail: ment marked by volatile oil prices, major invest- sustainable value growth and acts responsibly. We ments – including measures to combat climate are committed to upholding not only economicwww.omv. change – and the need to diversify and secure energy supply. Against this background, OMV but also environmental and social values. These include environmental protection, sustainablecom has positioned itself as an integrated energy development, and ensuring the security of our group and a market leader in the European growth employees, customers, and partners. In addition, belt, and will continue to strengthen regional we support a wide range of social development energy security. projects and sponsor numerous sports activities. Three Pillars of Sustainability OMV’s sustainability policy is based on three pil- OMV has compelling ethical and economic lars: economic, environmental, and social. This reasons for integrating sustainability and social Sustainability Report focuses on the second and responsibility into its business operations. As a third pillars, while the economic pillar is covered responsible company, we seek to improve the in the Annual Report. At corporate level, it is quality of life of our employees and the commu- primarily the HSE, CSR, and HR staff functions nities in which we work; promote respect for hu- that hold responsibility for the environmental man rights; initiate and encourage dialogue with and social pillars. stakeholders; maintain high ethical standards in our own business and in general; and ensure Sustainability and social responsibility are fully secure processes to protect our employees, the enshrined in our corporate strategy and the local population, and the environment. strategies of the individual business segments. Moreover, these commitments are included in At the same time, our business faces economic the Balanced Scorecard both at corporate level and technological challenges in today’s world. and in the business segments, through measur- Competition is increasing, not only for custom- able objectives and measures along the value ers but also for exploration and production chain. licenses. OMV’s activities in regions with sensi- tive political, cultural, and social conditions can entail risks. OMV will continue to work towards the long- term security of energy supply; to confront the challenges of climate change and international climate change policy; to ensure it has a well- qualified and highly motivated workforce as the key to staying competitive; and to do all it can to meet stakeholders’ needs as well as the expecta- tions of the general public.12 OMV Sustainability Report 2007/08 | Strategy and Objectives
  • 17. Vision GoalsCSR We manage our business responsi- CSR is an integrated part of the new OMV management style and cul- ture. Employees, customers, investors, and the general public perceiveFunctional bly and live a cul- OMV as a company that has successfully integrated CSR.Strategy ture of integrity. We achieve our goals by behaving ethically and with integrity. We know our stakeholders and seek to involve them. HSE is a natural We promote an HSE culture by demonstrating leadership and commit-HSE and integrated ment, and by improving competencies.Functional part of our activi- Health standards are fully implemented and health risks are systemati-Strategy ties. We apply cally assessed, reduced, and managed to ensure that employees are fit industry best to carry out the work assigned to them. practice, act re- Safety risks are minimized and a safe working environment is ensured sponsibly, and are for our employees and contractors. accountable for People, business, and assets are protected by appropriate risk manage- our actions. ment and implementation of global emergency and crisis preparedness. Environmental impacts, risks, and liabilities are minimized by reduc- ing emissions, discharges, and pollution as well as through better and more efficient use of natural resources. In all our HR-re- Strategy areas of aligned activities are focused on optimizing our HRHR lated activities we management systems, tools, and efficiency throughout internationalFunctional aim at position- HR operations, strengthening our employer image and attractiveness,Strategy ing ourselves as and having the right talent at the right time in the right workplace. an employer of Further major areas of strategic thrust are activating above-average choice on a truly performance and leadership, managing our corporate culture and orga- international level. nizational development across the entire OMV Group, building cross- divisional effectiveness, and thereby leveraging an integrated approach in stakeholder relations.Petrom’s CSR Strategy and ObjectivesAs an integral part of the sustainable develop- c Initiation of new projects involving communi-ment strategy, CSR must support the long-term ty dialogue to identify and respond to needs,development of Petrom. By deciding to adopt school rehabilitation, and school transporta-the OMV Values and Code of Conduct, Petrom tion.management expressed its commitment to thehigh standards of integrity at OMV. Petrom has Promote volunteering among Petrom employeestaken a systematic approach to developing a c Organization of an internal campaign to raisemanagement system aligned with that of OMV, interest in becoming a volunteerwhile ensuring compliance with international c Created the Volunteer of the Year Award handCSR standards and access to best practices. in hand with the project “The Best in Us.”Petrom’s main CSR objectives and achievementsin 2007-08 were: Build an efficient CSR network across Petrom c Nomination of a CSR responsible for eachConsolidate the company’s role model position business divisionc Continuation of projects on the environment, c Coordination of CSR efforts in order to capital- community investment, and education, e.g. ize on synergies. “Parks of the Future,” “Resources for the Future,” and “Habitat for Humanity”c Continuation of partnerships, e.g. with the Red Cross, in support of the Petrom Olympics, and others Strategy and Objectives | OMV Sustainability Report 2007/08 13
  • 18. Corporate Profile | In the Spotlight | Environment | Social Issues | Outlook | Indicators UN Global Compact and the OMV Code of Conduct The un Global Compactwww.unglobal By joining the UN Global Compact OMV madecompact.org a commitment to implementing its 10 principles on human rights, labor standards, the environ- ment, and anti-corruption. In line with the re- quirement that member companies produce an annual Communication on Progress (COP), this Sustainability Report provides an accounting of what we are doing to meet our commitment. To give the reader an overview, the relevant activi- ties described in the report are color-highlighted in the GRI Content Index (pp. 77-79). OMV endorsed the voluntary “Caring for Cli- mate” leadership platform for UN Global Compact participants in 2007, and continues to The OMV Code of Conduct actively address the problem of climate change. Our Code of Conduct applies to all OMV busi- Read more about these efforts in the “Environ- ness segments. In this central document we ment” section of this report (pp. 26-41). declare that our actions and the pursuit of our goals will be in accordance with the principles In 2008, OMV became a member of the Global of the UN Global Compact. It clearly acknowl- Compact Human Rights Working Group. The edges our corporate social and environmental chief executive of OMV helped mark the 60th an- responsibility within our sphere of influence. The niversary of the Universal Declaration of Human principles and rules of behavior set out in the Rights by signing the Global Compact’s CEO Code of Conduct are binding on our contractors Statement, which was published in the Financial as well as on OMV employees, all of whom are Times to call attention to the business communi- required to respect our standards in their daily ty’s responsibility to support human rights. OMV work. In 2003, the Code of Conduct was pub- also promoted the anniversary by enclosing lished in German and English for Group-wide an Amnesty International “passport for human distribution. In 2008, it was circulated throughout rights” with each copy of the OMV employee Petrom in Romanian. As of 2009 it is available in magazine. Urdu for use by OMV in Pakistan. Roll-out of the Code of Conduct at Petrom Petrom launched an awareness campaign entitled “The Best in Us” to explain and promote the Driv- ing Values and the Code of Conduct through con- sultations with key stakeholders, i.e. managers, the human resources community, and unions. Internal coaches were recruited from all Petrom divisions to conduct 44 workshops during 2008. More than 1,000 employees from all Petrom divisions had a chance to discuss how the Values and the Code of Conduct help them achieve their objectives. Partici- pants sharing best practices included white-collar employees from Petrom headquarters and from the field. Further information about “The Best in Us” can be found on the OMV website.14 OMV Sustainability Report 2007/08 | UN Global Compact and the OMV Code of Conduct
  • 19. ValuesDriving ValuesIn 2007-08, OMV redefined its corporate values to create an ongoing basis for action which is in-tended to serve as a source of both motivation and guidance. The results of extensive surveys andother input from internal and external stakeholders led to the adoption of a trio of driving values:Pioneers, Professionals, Partners. (The process is described on the OMV website.) The OMV Valueswere introduced to employees in the course of 2008, and from 2009 they will be integrated into thework environment under the motto “living the Values.”PioneersOMV has played a pioneering role in promoting When national laws fall short ofcorporate social responsibility and sustainability OMV’s policies on human rights,in Austria and in the numerous other countries in OMV will abide by its own stan-which it is active. We were among the first Aus- dards provided they do not violatetrian companies to sign the UN Global Compact the laws of the country. We arewith its 10 principles regarding human rights, well on the way to systematicallylabor standards, the environment, and anti-cor- integrating CSR and sustainabilityruption. We were also one of the first to regularly goals into all areas of our business,publish sustainability reports. In socially and as shown by the inclusion of keypolitically sensitive regions we aim to set high sustainability issues in our corpo-standards for the protection of human rights. rate directives and strategy.ProfessionalsAs professionals we are committed to fully inte- and safety standards. Supportinggrating social and environmental awareness into employee development is extreme-our decision-making processes and management ly important to OMV because wesystems. To achieve this, OMV adheres to interna- want to be an employer of choice.tional standards and examples of best businesspractices. We monitor and assess the potential With regard to its social responsi-impacts, both direct and indirect, of our business bility, OMV continuously strives toactivities on the local environment and commu- increase its contribution to society.nity, and look for solutions to mitigate them. Inour relationship with our employees, professionalmanagement ensures high occupational healthPartnersWe strive to be a partner to all the interest with benefits for both sides. Be-groups affected by our activities. We maintain cause OMV is active in so manyan ongoing and respectful dialogue with stake- different countries, the stake-holders. We talk to individuals and civil society holders are widely diverse. OMVorganizations to find out what their concerns, routinely organizes events forneeds, and expectations are. stakeholders wherever it oper- ates.At the same time we explain our views and ourperformance in the area of sustainability. Thegoal is to create mutual understanding leadingto trust and cooperation on a partnership basis, Values | OMV Sustainability Report 2007/08 15
  • 20. Corporate Profile | In the Spotlight | Environment | Social Issues | Outlook | Indicators OMV in Dialogue Stakeholder Forum In October 2008, the OMV Stakeholder Forum, important external stakeholders offered were a which has become a key part of OMV’s dialogue valuable addition, and also served as a counter- with various interest groups, took place for the point to the presentations by OMV representa- third time since 2006. At the event, which was tives Simone Alaya, Dorothea Sulzbacher, and held in Vienna, over 70 people participated in a Rosa Zehner on human rights and the challenges lively discussion with the OMV Executive Board. posed by the European Union’s post-Kyoto The goal of the 2008 Forum was to en- regime. The senior vice president of OMV’s new hance dialogue with stakeholders by giv- Corporate Affairs & Sustainability Department ing them a better opportunity to express (CA&S), Hilmar Kroat-Reder, began by discuss- their views and expectations directly to ing the importance of sustainability management the company. Christian March, head of as an integral aspect of OMV’s business activi- Amnesty International Austria, spoke ties, and went on to describe its implementation about human rights, and Ingmar Höbarth, in the OMV Group. As at the previous Stake- head of the Austrian Climate and Energy holder Forum in 2007, the participants in the Fund (KLIEN), described the challenges of 2008 event took a lively interest in the discussion climate change. In their talks, the speak- and brought up a number of relevant, at times ers examined OMV’s performance in the controversial issues. These issues are addressed two areas. These perspectives which the in the “In the Spotlight” section of this report.Claudia Saller,network Social Expert GroupsResponsibility OMV representatives are active members of the In 2009, IPIECA’s Social Responsibility Working working groups of the International Petroleum Group will issue an overview document for the oil Industry Environmental Conservation Association and gas industry on issues affecting indigenous (IPIECA). IPIECA aims to develop and promote peoples. It aims to help inform and guide com- scientifically sound, cost-effective, practical, and pany interactions in situations where indigenous socially and economically acceptable solutions to communities are or may become involved. The global environmental and social issues pertaining document will look at a range of complex and to the oil and gas industry. IPIECA is not a lobbying diverse issues across the globe, examining the organization, but provides a forum for encouraging international and national legal frameworks, continuous improvement of industry performance outlining different companies’ approaches inSelected list of in areas such as biodiversity, climate change, and their relations with indigenous communities, andOMV member- social responsibility. IPIECA regularly issues guid- identifying possible future trends and challenges.ships: ance documents for the oil and gas industry and OMV contributed a case study from OMV New other publications. In 2008, it published a booklet on Zealand.www.omv. human rights and ethics in the oil and gas industry, which includes a description of OMV’s community OMV is also a member of the International As-com development program in Pakistan. sociation of Oil & Gas Producers (OGP). Local Stakeholder Dialogues Romania with different stakeholder groups. Petrom repre- As preparation for productive stakeholder dia- sentatives took part in numerous other CSR- logue, several management training workshops related events as well. to raise awareness of CSR and stakeholder en- gagement were organized at Petrom in 2007-08. new Zealand During the implementation of social projects, Recognition of and consultation over indigenous Petrom representatives held over 100 meetings rights is a key pillar of all OMV’s business activi-16 OMV Sustainability Report 2007/08 | OMV in Dialogue
  • 21. ties in New Zealand. This is both a societalexpectation and a legal requirement. Ongoingstakeholder communication was undertaken withMaori groups that had a significant interest inOMV’s Maari oilfield development. The approachtaken by Exploration and Production (E&P) wasto seek professional advice on the engagementand consultation process, and to become famil-iar with Maori customs and history in its area ofoperations.AustriaOpen House for Natural Gas Station Neighbors:Every year an OMV gas compressor stationopens its doors to the public so that people liv-ing in the area can see how it operates and learnabout the logistics activities of Gas and Power.The 2008 open house was held at the compressor New Gas Compressor Station in Neustift and Visitors touringstation in Kirchberg am Wagram. Oberkappel: The project to build a compressor the kirchberg am station in Neustift and Oberkappel is an exem- Wagram com-New Gas Compressor Station in Weitendorf: plary case of timely stakeholder dialogue. By pressor stationSome members of the local community were establishing communication with local stake- during the 2008initially opposed to the idea of having a com- holders on a partnership basis early on in the open housepressor station built in Weitendorf. In addition, project, OMV was able to address their concernsan environmental impact assessment (EIA) was right from the start.required for the project. OMV therefore begana dialogue process with various stakeholder At the beginning of the planning stage, OMV madegroups: a deliberate effort to involve those local inhabi-c Municipalities and local residents tants who were recognized parties to the authorityc Mayors and town council members proceedings, and the other residents who wouldc Property owners, local fire department mem- theoretically be affected by the construction bers, hunters, etc. project. OMV held similarly intensive discussionsc Regional and national media representatives with the town as the authority, with the fire depart-c Local, district, and provincial politicians ment, and with the tourist office. OMV presentedc District and provincial authorities and environ- its plans for the project and their technical imple- mental commissions. mentation at a series of public discussions. The local citizens took advantage of the opportunity toDue to the delayed inclusion of the local popu- raise their objections, of which there were many.lation – the EIA process had already begun – a At the residents’ suggestion, an expert simulatedgreat deal of communication and persuasion the height of the facility and potential noise emis-had to be accomplished in a short period of time sion levels. As the result of these discussions, overin order to move from reaction to action. Civic the next few months agreement was reached onparticipation was much more intensive than is 19 subjects of dispute. For example, OMV agreedforeseen in an EIA process, which ultimately led not to build gas turbines but to use new, emission- More aboutto constructive cooperation with all the stake- free electric motors instead. OMV stakeholderholders. OMV is confident that it can maintain dialogue:a good and consensus-based dialogue in the The compressor station project is still underway, www.upcoming construction stages, as well as for thefollow-up project to build a waste heat recovery and OMV is continuing its efforts to find satis- factory solutions to resolve the three remaining omv.system in Weitendorf. issues of community concern. com OMV in Dialogue | OMV Sustainability Report 2007/08 17
  • 22. IN THE SPOTLIGHT“Who will make sure that there’s enough energy for everyone by the time I grow up?” Max Daichendt, aged 5
  • 23. “That’s exactly what we’re working on today.” Ashiq Hussain, Exploration & Reservoir Management, E&P, OMV
  • 24. Corporate Profile | In the Spotlight | Environment | Social Issues | Outlook | Indicators Future Mobility We Are All Mobile How Will We Remain Mobile?More about the Mobility is a sign of our times. Never before Turbulent markets and dynamic changes inOMV Mobility have so many people covered so many kilome- society make it difficult to predict developmentsForum: ters. And the forecast is for further growth. Being in social mobility with any kind of reliability.www. mobile is an essential aspect of our daily lives The issue is complex and the possible scenariosomv. and a cherished value. range from optimistic to more pessimistic. Whatcom Indeed, highly developed societies cannot func- is certain is that radical changes in mobility are already occurring. The energy industry, for ex- tion if people, goods, and information are not ample, is undertaking substantial economic and mobile. Because mobility gives us flexibility, technological efforts to switch from fossil fuels freedom, and the ability to be fully involved in to regenerative energy. business and society, it plays a vital role in our quality of life. New fuels and drive technologies, such as natural gas, hybrids, hydrogen, and fuel cells, Mobility is inextricably linked to time, space, are becoming attractive alternatives to conven- energy, community, communication, lifestyle, tional gas and diesel engines. With the advent environment, economy, and society. We face of telematics in traffic systems, the use of smart far-reaching challenges in connection with the technologies is spreading as well. Nevertheless, rising global demand for energy, higher trans- only a broad-based cluster of technical, econom- portation costs, more flexible patterns in work, ic, political, and social innovations will ultimately time, and use of space, demographic changes lead to sustainable mobility. and an aging society, and the pervasive use of digital technologies in traffic and communication In Times like These: Move & More systems. Mobility is a core concern for OMV. And OMV sets priorities by making fuels more eco-friendly These trends present challenges not least because to reduce the impacts of mobility on health and traffic and mobility are the greatest sources of the environment. OMV will continue on the way CO2 emissions. In the European Union, the forward by replacing classic petroleum products transport sector’s share in greenhouse gas with sustainably produced substitution products emissions has steadily grown over the past two of high technological quality. decades to around one-quarter today. The sec- tor also accounts for over two-thirds of EU oil consumption. OMV Mobility Forum Together with the OMV Future Energy Fund, the Refining and Marketing business segment commemorated World Environ- ment Day on June 5, 2008, by holding a discussion forum on the future of individual mobility. The focus was on a question that had been raised at the 2007 OMV Stakeholder Forum: How can mobility be designed to become as sustainable as possible? Experts in the field presented future trends and the technological developments on the horizon. The forecast is that the future of individual mobility will be determined by innovative drive sys- tem technologies. Thus technical progress will lead to more ef- ficient and environmentally friendly mobility behavior, but there will also be changes in the mobility mix, with public transporta- tion, cycling, and walking gaining an increasing share.20 OMV Sustainability Report 2007/08 | Future Mobility
  • 25. Is the World’s Oil Running Out?Petroleum has been the most important primary According to the BP Statistical Review, theenergy source in the world’s supply for over 40 proven oil reserves at the end of 2007 were 1,238years. Oil currently meets 34% of global pri- billion barrels, or 169 billion tonnes. Current IEAmary energy demand, and in the transportation estimates assume that conventional oil reservessector petroleum products meet 94% of final account for another 1,200 billion barrels. In addi-energy demand. In its World Energy Outlook for tion, there are other sources of unconventional2007-30, the International Energy Agency (IEA) petroleum (oil sands, extra heavy oil, oil shales),predicts that oil consumption will grow by 1% amounting to around 2,000 billion barrels, whichannually. If this is the case, demand will rise by have hardly been developed. However, the25% from 85.2 million barrels per day in 2007 exploration and development costs are consid-to 106.4 million barrels in 2030. These growth erably higher than for conventional deposits.prospects and highly volatile oil prices increas- On average worldwide, only around 35% of theingly lead to debate over issues of availability oil in a field is currently extracted, with 65%and reserves-to-production ratios, and our remaining in the ground. If enhanced recoverydependence on them. techniques are used in mature reservoirs (inject- ing steam, CO2, polymers, etc.), oil extractionWhat is undisputed is that the crude oil deposits can be substantially increased. In the North Sea,in the earth’s crust are limited due to their forma- for example, it will reach around 50% by 2010.tion and the geological conditions required. But At a global level, an increase of 1%, based onopinions differ as to when the last drop of oil will conventional reserves, is roughly equivalent tobe extracted or when oil production will peak. the annual crude oil consumption figure. OMV’s great efforts to significantly increase yields fromPessimistic scenarios have predicted the end mature reservoirs have proved highly success-of oil reserves and the passing of peak annual ful, particularly in Romania, Austria, and Libya.oil production many times in the past. Such Whenever we increase the oil recovery factorprojections assume peak oil in the near future, by 1%, our reserve base grows, for example bybut usually only take conventional crude oil ~200 million barrels in Romania, and by ~20 mil-and proven reserves into consideration. In ad- lion barrels in Austria.dition, they frequently compare only the newdiscoveries in a given year with the annual Oil reserves are not likely to run out in the nearproduction. Optimistic predictions are based on future. By the middle of the 21st century, oil willthe assumption that vast oil resources are still no longer be the sole dominating primary sourceavailable and oil will be able to meet a major of energy in the world’s supply. There will be apart of global energy demand over the coming much broader energy mix, and renewables indecades. particular will play a key role in supplying us with energy. If we look only at the reserves-to-Both pessimistic and optimistic scenarios paint production ratio, we find that it has risen froman incomplete picture of the real situation. 31 to 43 years over the past four decades. TheRealistic evaluations take into account the fact actual availability of oil cannot be reliably gaugedthat the figures for reserves are not based on in years. Nevertheless, we can legitimately assumeexact calculations. They are taken from esti- that oil will be available for many decades tomates using methods that are no longer up to come and, as other technologies are developed,date and are currently being revised. As a result, reserves will last for at least 100 years.a distinction should always be drawn betweenproven, probable, and possible reserves. Allthese reserve categories vary depending on thesource, and are affected by anticipated prices inthe future and assumptions regarding progressin exploration and production technology. Is the World’s Oil Running Out? | OMV Sustainability Report 2007/08 21
  • 26. Corporate Profile | In the Spotlight | Environment | Social Issues | Outlook | Indicators Energy Security in Europe In the European Union today, 500 million people c Making the best use of the EU’s indigenous in 27 countries want to be able to rely on a secure, energy resources. affordable, and eco-friendly energy supply. Sup- ply security is therefore one of the cornerstones These long-term priorities should secure Europe’s of the European energy system, together with energy supplies to an even greater extent. cost efficiency and sustainability. OMV’s Contribution The greatest challenges in the global energy mar- OMV is playing its part by planning a range of ket are constantly rising demand, stiff competition investments. With its commitment to locating for resources, significant price fluctuations, and and developing new hydrocarbon reserves in its temporary supply disruptions. Current trend sce- core regions, as well as to the ongoing expan- narios show that energy production in the EU will sion and improvement of oil and gas production, drop 15-20% by 2020. Even if energy consumption OMV will help strengthen Europe’s supply base grows only moderately, import demand could in- for many decades to come. crease by up to one-third and import dependence could rise to up to 66%. As a result, energy policy Developing the transport infrastructure for oil is increasingly focusing on the issue of supply and gas is critical both for the single European security. market and for cooperation with the EU’s neigh- bors (Russia, Ukraine, Norway, the Balkan states, Eu Measures Turkey, and North Africa). For OMV and its part- The current goals in the EU’s energy and climate ners in the Nabucco consortium, the pipeline link change package for 2020 are aimed at securing to the large gas reserves in the Caspian states Europe’s future energy supply. The new Energy and the Middle East is a key project for ensuring Security and Solidarity Action Plan identifies five Europe’s gas supply, which will be considerably long-term priorities: strengthened by the resulting diversification of c Investing primarily in energy infrastructure supplier countries and pipelines. Projects for and diversification of energy supplies supplying liquefied natural gas (LNG), storing c Rooting the energy issue more firmly in the natural gas, and generating power efficiently EU’s foreign policy will further increase the flexibility and stability of c Increasing oil and gas stocks and enhancing pipeline energy supply. crisis response mechanisms c Further improving energy efficiency Current and planned activities also focus on modernizing and expanding the refineries to turn them into energy centers. In the future, not only will they produce petroleum and chemical and petrochemical products, but they will also be able to generate heat and electricity at high ef- ficiency to meet internal and external demand. At the same time, the OMV Future Energy Fund is working to add renewable energy to OMV’s portfolio, which will contribute to the expansion and integration of the value chain.22 OMV Sustainability Report 2007/08 | Energy Security in Europe
  • 27. A Turbulent Oil MarketDevelopments in the fuel sector have attractedconsiderable attention in the Austrian mediaover the past two years. There were two mainreasons: first, the fluctuations in the price ofcrude oil, which skyrocketed to a record levelof around USD 145 per barrel for Brent on theinternational commodity exchanges; and second,intense price competition at Austrian filling sta-tions.From 2007 through the first half of 2008, interna-tional trends in crude oil and petroleum productprices reflected expectations of rising demand,especially in China and India, as well as theuncertainty surrounding future crude oil produc-tion capacities and the geopolitical situationin some of the oil-producing countries such asRussia and several OPEC member states. Theseassumptions underpinned decisions by financialinvestors that strongly influenced the markets.The relatively weak US dollar helped keep crude claimed in the media, was examined in a studyoil prices high. by the Austrian Competition Authority based on the average price in the first half of 2008 and inThe second half of 2008 saw a remarkable fall previous years during a period of high prices.in crude oil and petroleum product prices to Market prices for crude oil and oil productsbelow USD 50 per barrel. Given the shortage of change so fast, however, that the results ofcapital due to lack of confidence in the financial the study can probably be seen as momentumand business sector, and partial reductions in without predictive accuracy with regard to futuredemand, the global financial crisis led to a sharp developments.drop in oil prices on the international commodityexchanges. Finally, it is worth pointing out that the oil price turbulence in Austria should not be seen inAustria is also subject to these global competi- isolation. Transparent pricing and generally hightive forces. Competition in the domestic fuel market transparency, in particular for oil productsector is stiff. Although now and again collusive prices, are a feature of the Austrian filling stationbehavior in an oligopolistic market is suspected, market, which means that prices can be com-no statistical proof has been found. Instead, price pared and adjusted locally. Yet price compari-adjustments in Austria tend to follow interna- sons can be misleading both for consumers andtional trends, especially for diesel and gas. Prices for filling station operators. International priceat Austrian filling stations are adjusted either fluctuations must be reckoned with in turbulentup or down according to the situation on the times. Fixed price reductions in regional marketsinternational exchanges, such as the commodi- are not justifiable.ties exchange in Rotterdam, and also in responseto regional competition. The latter is affected by By Johannes Benigni, energy expert and Manag-the geographical location of the filling stations, ing Director, JBC Energy GmbH, Viennanational fiscal legislation for petroleum products,and other factors.The question of whether greater delays in adjust-ing prices are at the consumer’s expense, as A Turbulent Oil Market | OMV Sustainability Report 2007/08 23
  • 28. Corporate Profile | In the Spotlight | Environment | Social Issues | Outlook | Indicators BiofuelsRead about OMV’s The European Union set itself an ambitious effect in the member states in 2010 will the sus-current research target in Directive 2003/30/EC of the European tainability requirements be extended to importson biofuels on pp. Parliament and the European Council “on from non-EU countries. OMV has therefore set68-71 and at: the promotion of the use of biofuels or other its own standards for purchasing biofuels, based www. renewable fuels for transport”: 5.75% of all in part on discussions with non-governmental omv. gas and diesel fuels placed on member states’ organizations. In 2008, OMV implemented these com markets should be replaced with biofuels by December 31, 2010. Some member states, such standards step by step in Austria and Germany, with the ultimate aim of applying them to all as Germany and Austria, have undertaken to OMV markets. meet this target even sooner. Since the term “biofuels” is used in all EU laws and directives, As of 2009, OMV will require that its suppliers OMV also uses it, while acknowledging the fact comply with the following contractual require- that agrofuels or renewables would be more ments concerning the purchase of biofuels (etha- appropriate. nol and biodiesel): c Raw materials for producing biofuels should When raw materials are of European origin, their preferably come from Europe and must not sustainability is regulated by the legal require- directly contribute to rainforest clearance. ments of the EU’s Common Agricultural Policy. c The raw materials used must be free of ge- The sustainability of imports from non-EU coun- netically modified organisms (GMOs). tries, be it raw materials or biofuels, is not gov- c Residual materials, such as used cooking oil erned by those guidelines. Not until the directive and animal fats, may and should be used, on energy from renewable sources comes into within the limits of our procurement specifi- cations, as raw materials for OMV biodiesel. c OMV must be notified of the raw material mix for all biofuel deliveries. c A means of transport with the lowest environ- mental impact possible, such as ship or rail, should be used for transporting raw materi- als for biofuels in general, and for conveying biofuels to our storage facilities. c Biofuels supplied to OMV must be superior to fossil fuels in their life cycle assessment. In the future OMV will continue to build on these high standards for the procurement of biofuels. Moreover, we will push for the raw material base to be gradually altered to include next-generation raw materials, i.e. cellulose and residual materials. If for economic, com- petitive, or procurement reasons we cannot maintain or extend the standards we have set ourselves, the public will be informed accord- ingly.24 OMV Sustainability Report 2007/08 | Biofuels
  • 29. OMV in Socially and Politically Sensitive RegionsOMV is fully aware of its social responsibility in fulfill, and support the fulfillment of internation-its international activities. Our aim as a company ally recognized human rights, and we undertakethat operates in many different countries around to verify that wherever we are active, no humanthe world is to achieve our business objectives in rights violations are occurring from which weline with our environmental and social responsi- knowingly benefit. Consequently, human rights-bilities. Therefore, OMV committed itself in 2003 related issues are included in our due diligenceto upholding a code of conduct that specifically process as well as in other decision-makingaddresses these issues. The OMV Code of Con- processes. In the interests of systematic imple-duct is based on the universal values enshrined mentation across the Group, OMV undertookin the UN Global Compact, and on today’s a participatory process with the operatinginternational understanding of the responsibil- business segments to develop an instrumentity which businesses have in regard to human that facilitates close examination of humanrights. We want to make an impact and will thus rights-related issues whenever OMV preparesdo everything possible to afford special protec- to engage in new activities. This involves tak-tion to people and their rights. ing into consideration human rights reports by internationally recognized non-governmentalOMV is active in more than 25 countries. Some of organizations. Moreover, we ourselves evaluatethese countries are socially and politically sensi- potential human rights-related risks which ourtive. OMV cannot engage in political activity either activities in a new country or region, or our par-at national or international level, nor does it seek ticipation in a new joint venture, could entail.to do so. We draw a clear distinction between the We also consult independent human rights ex-general policies of a country and of its political perts as needed. The issues which demand par- Business OMV’s sphere Company Partners Contractors Community Society of influencerepresentatives, and our responsibility for human ticular attention are security provision by armedrights as understood under current international security forces in harmony with human rights,human rights law. This means that we bear the prevention of systematic human rightsresponsibility for the people in our sphere of influ- abuses, and fair treatment by joint partners ofence. We take this social responsibility seriously their employees, and many others as well. Forand view corporate social responsibility as a example, the instrument was used in connec-management tool: For us it is the understanding tion with our planned activities in Turkey inof how we conduct our business. It requires us to 2008 (see “Challenges and Goals in 2009” in thetake into account the environmental, social, and chapter on “Human Rights,” p. 60), and the aimeconomic aspects of our business in every deci- is to apply it throughout OMV in 2009.sion we make and in all our activities.Based on the Human Rights Policy adopted in2007, OMV’s human rights responsibilities with-in its sphere of influence were defined in theOMV Human Rights Matrix in 2008: We respect, OMV in Socially and Politically Sensitive Regions | OMV Sustainability Report 2007/08 25
  • 30. ENVIRONMENT“Why should an oil and gas company be concerned about climate change?” Karla Sophia Zehner, high school student
  • 31. “Because we want to preserve natural resources for future generations.” Rosa Zehner, Carbon Management, OMV
  • 32. Corporate Profile | In the Spotlight | Environment | Social Issues | Outlook | Indicators Our Approach Policy and GuidelinesThe OMV HSE Environmental management at OMV is based onPolicy: a precautionary approach and proactive man- agement aimed at minimizing environmental im-www.omv. pacts. Climate protection measures at productioncom sites, the quality of OMV products, and support for alternative energy sources all play a key role. Group-wide requirements for environmental management processes are defined in the En- vironmental Management Directive. It links the high-level principals set out in the OMV Policy on Health, Safety, Security, and Environment (HSE), in other directives, and in our commitment to the UN Global Compact, with implementation at the operational level. To ensure the integration of Organizational Responsibility environmental management processes in the core Environmental issues are managed vertically and business, the directive is linked to other business horizontally across the whole organization. They processes such as investments, strategy develop- are taken into account at specific stages in the ment, planning, budgeting, and purchasing. De- decision-making processes at corporate level as tailed environmental standards are defined at the well as in the different businesses. Line manage- level of business segments and sites, according to ment receives advice on environmental matters the specifics of the respective business activities. from its respective HSE advisors and experts. Objectives and Performance in 2007-08 The Corporate Carbon Management function The harmonization of a Group-wide directive for was created in 2007 to tackle the challenges environmental management at all OMV opera- of climate change and climate policies. This tions, including acquisitions, divestment, and in- is a cross-functional team of environmental vestment programs, set the basis for benchmark- managers, strategy and business development ing environmental Key Performance Indicators experts, and members of technical and produc- (KPIs). Due to the overwhelming importance of tion departments. They come from all OMV business segments and the OMV Future Energy Fund. Their work is coordinated by the Corpo-Objectives in 2007-08 Imple- On- rate Carbon Manager from the Corporate HSE mented going Department.Strengthen the HSE management system and moni-tor the path towards 1st quartile environmental per- l Monitoring and Further Developmentformance in defined industry KPIs On the corporate level, the monitoring of envi-Manage the GHG intensity of the portfolio and define l ronmental KPIs is embedded in standardizeda strategic sustainability path reporting processes on an annual and monthlySeek new business opportunities in the renewable basis. Annual targets are set in the Corporateenergy field which can be integrated into OMV’s core l Balanced Scorecard and deployed to the busi-business ness segments. All OMV contractors and suppliers must comply climate change, the greenhouse gas (GHG) inten- with the OMV Code of Conduct and its commit- sity of OMV products is measured systematically ment to environmental protection. This principle and provides crucial information that contributes is in the process of being rolled out at Petrom as to the development of a strategic sustainability well. path and a specific carbon strategy.28 OMV Sustainability Report 2007/08 | Our Approach
  • 33. Energy ManagementEnergy Consumption to improve overall efficiency. E&P will work toThe integration of Petrom nearly doubled the total achieve ongoing incremental improvementsenergy consumption of OMV, which rose to 165.4 PJ through a targeted process of upgrades andin 2008 (2007: 159.5 PJ). Purchased energy such operational measures.as electricity and heat accounted for only 5% oftotal energy consumption. As a result, indirect Flaring and Venting left: Groupenergy consumption is not assessed regularly. Flaring is the burning of natural gas and venting energy intake by is its release into the atmosphere. Both processes primary energyCogeneration is important, especially for OMV waste a valuable clean energy resource and result sources in 2008refineries. More than 50% of the demand for elec- in emissions of greenhouse gases (GHGs). The Right: Totaltricity in the refining division is produced inside HSE strategy of E&P foresees the minimization energy consump-the refineries. 100% of this electricity production of GHGs and emissions throughout E&P opera- tion per businessis cogeneration. tions. This includes the elimination of continuous segment 120 Petajoule 100 80 60 Natural Gas 40 Residual Gas Liquid Fuels 20 FCC Coke 0 Electricity and District Heating E&P R&M G&P Others 2004 2005 2006 2007 2008Energy Efficiency and routine flaring and venting of hydrocarbonsImproved energy efficiency is a core interest in all from existing facilities after 2010, unless there arebusiness segments. The last few decades have no feasible alternatives. A design philosophy ofseen substantial progress achieved at Austrian zero continuous and routine flaring and venting ofand German sites, focusing on thermal integra- hydrocarbons is in place for new plants and proj-tion, heat recovery, process optimization, etc. New ects. E&P developed a new global environmentalprojects and ventures are starting at high levels of standard as part of its ongoing commitment toefficiency. At Petrom, the ongoing modernization improved environmental performance. Althoughprojects, involving a total investment of around not a member, E&P has adopted the principlesEUR 3 billion between 2005 and 2010, will lead to set out by the World Bank-led Global Gas Flaringsignificant energy efficiency improvements. Reduction Partnership for its own management of flaring and venting activities. Some flaring ofIn 2008, the Exploration and Production (E&P) associated gas has occurred in our operations in Further informa-business segment started on a comprehensive Pakistan, Yemen, and Kazakhstan as we move from tion and caseprogram aimed at improving energy efficiency temporary production facilities to permanent ones, studies:across all operated ventures. It includes develop- where all associated gas will be injected. Flaring is www.ment of venture-specific energy efficiency plans, also used during well tests, for the safe disposal of omv.benchmarking against peers and against otherOMV facilities, and finding engineering solutions small amounts of residual gas in sour gas treat- ment processes, and in emergency flares. com Energy Management | OMV Sustainability Report 2007/08 29
  • 34. Corporate Profile | In the Spotlight | Environment | Social Issues | Outlook | Indicators Climate Protection and Emission Management Greenhouse Gas Accounting Today’s energy and climate policies present major challenges for the oil and gas industry. The in- dustry has a primary responsibility to contribute to the security of energy supply as energy demand GHG accounting grows. Yet in order to mitigate climate change, greenhouse gas (GHG) emissions must be reduced methodology: in all economic sectors. OMV is fully committed to developing its business sustainably, balan- cing economic, environmental, and social considerations: We are strengthening our gas business, www. omv. promoting the use of natural gas for power generation by building high efficiency gas-fired power com plants, and exploring renewable energies. It is no less essential that we control and monitor our GHG emissions. Direct Emissions (Scope 1) increasingly short in the current trading period Direct emissions of carbon dioxide (CO2), meth- 2008-12. ane (CH4), and nitrous oxide (N2O) were 12 million tonnes in 2008 (2007: 12.1 mn t). The other GHGs OMV follows a low-risk trading strategy. In ad- are of minor relevance and therefore are not dition to the trading of EU allowances, the OMV included in OMV’s GHG figures. GHG emissions carbon portfolio is optimized by using credits GHG emissions have increased considerably with the growth of from the flexible project-based mechanisms, the per business OMV, mainly due to the integration of Petrom Clean Development Mechanism (CDM) and Joint segment (data included as of 2006). Implementation (JI), as provided for under the Linking Directive. 16.0Million tonnes CO2 equivalent 14.0 A systematic screening of our own CDM or JI projects is periodically updated and the viability of 12.0 identified opportunities examined. Several projects and project proposals are currently under develop- 10.0 ment at different stages of the CDM or JI project 8.0 cycle. For these projects an internal threshold for the GHG reduction potential has been set in order 6.0 to reduce the administrative burden. 4.0 Participation in carbon funds for purchasing 2.0 credits from CDM and JI projects is another 0.0 instrument used to manage the OMV carbon E&P R&M G&P OMV Group portfolio. 2004 2005 2006 2007 2008 Reduction of Direct Greenhouse Gas Emissions Emissions Trading c Energy efficiency: All measures taken to im- OMV is subject to the European Union Emissions prove energy efficiency contribute directly to Trading Scheme (EU ETS), with 23 of its installa- the reduction of GHGs. tions included in the scheme. Four installations c Flaring and venting: By applying alternative in Austria and Germany have been part of the EU methods such as mobile flaring and smart ETS since it began in 2005, and 19 installations plug, methane emissions during gas pipeline were added upon Romania’s accession to the EU tie-in activities within our gas transport busi- on January 1, 2007. ness were reduced by nearly 95%. The reduc- tion of flaring and venting is a key element in For unexpected situations (additional allowances the Exploration and Production environmental for new projects and unplanned plant stoppages), strategy. OMV had no need for emissions trading in c OMV gas pipelines are leakage-proof, but a the reporting period. Its position is likely to be potential source of methane emissions is the 30 OMV Sustainability Report 2007/08 | Climate Protection and Emission Management
  • 35. sealing system of the compressor units. Dry 120 3.5 Million tonnes GHG per million tonne oil equivalent Million tonnes CO2 equivalent gas seal systems in newer compressors reduce 100 3 emissions considerably. The replacement of gas-pneumatic control valves by electrical ones 2.5 80 also helps cut methane emissions by up to 80%. 2 60Indirect Emissions from OMV Products (Scope 3) 1.5OMV systematically assesses the GHG intensity 40 1of its products based on the Scope 3 approachaccording to the Greenhouse Gas Protocol, a 20 0.5corporate accounting and reporting standard 0 0launched by the World Business Council for 2004 2005 2006 2007 2008Sustainable Development (WBCSD). The OMV Oil to Energy Oil for Non-Energy Use GHG Gas to Energy Gas for Non-Energy Use Intensitymethodology is also aligned to the ISO 14064 se-ries of standards (Parts 1-3) on GHGs. The resultsare taken into account in the strategic business Kronos Citroën World Rally Team was the first GHG intensity ofdevelopment process to enhance the sustainabil- CO2-neutral competitor in the FIA World Rally the OMV productity of the business model. Championship. OMV offset the CO2 emissions portfolio from the Annual General Meetings in 2007 andThe GHG intensity of the product portfolio is 2008 and other events by purchasing CO2 reduc-slightly decreasing due to the strengthening of tion certificates. In 2008, a very successful com-the less carbon-intensive gas business, invest- pressed natural gas (CNG) rally car supported byment in renewables, and the non-energy use of the Gas and Power business segment ran 100%oil and gas in downstream activities (oil and gas on biomethane, highlighting the potential role ofused as input for the production of polymers, biogas in GHG reduction.fertilizers, etc.). However, growth has led to anincrease in absolute indirect GHG emissions. External Verification Over 60% of the direct GHG emissions of OMVOther Indirect Emissions (Scope 3) (7.7 mn t) are CO2 emissions from 23 installationsAlthough indirect GHG emissions from the within the EU Emission Trading Scheme. They aresupply chain, logistics, business travel, and externally verified every year based on applicable Assurance state-other business activities are not quantified on a EU and national regulations. The assessment ment on theGroup-wide basis, they are the focus of special method for indirect GHG emissions from products Scope 3 Invento-projects and awareness programs for employ- is documented in the OMV Scope 3 Inventory ry methodology:ees and contractors. Several articles on indirect Manual, which was verified by an independent www.emissions have been published in the OMV third party. omv.employee magazine, and presentations are givenduring “HSE Hour” events. In 2007, the OMV com OMV Promotes Climate-Friendly Mobility In 2007-08, 90 truck drivers from three Austrian transport companies underwent OMV-sponsored training aimed at cut- ting CO2 emissions by about 150 tonnes per year and lowering fuel consumption. The pilot project resulted in a 6.5% drop in CO2 emissions, and an average fuel consumption reduction of 12%. OMV and the companies will continue to jointly monitor fuel consumption and emission reduction. Climate Protection and Emission Management | OMV Sustainability Report 2007/08 31
  • 36. Corporate Profile | In the Spotlight | Environment | Social Issues | Outlook | Indicators Carbon Risks and Opportunities Risks related to climate change include the marketCarbon risks and Regulatory Risks: Current energy and climate price risk assessment for CO2 in the form ofopportunities in policies, as well as upcoming regulations unknown future costs. Emissions forecastsdetail: at international, EU, and national level, will for the existing facilities already included inwww. constitute important challenges to the oil and emissions trading schemes, as well as for newomv. gas industry in the near future. OMV welcomes projects that will start operations in the nextcom initiatives to promote renewables in order to frame a mix of conventional and new energies, few years, reveal an increasing need to pur- chase allowances and credits in order to cover to foster innovative technologies for reducing GHG emissions, and this will impact on OMV’s GHG emissions, and to apply market-based EBIT and cash flow. Rising insurance fees due instruments in the field of energy and climate to reinsurance pools affected by hurricanes in policies. Nevertheless, these policies should recent years are already impacting our busi- provide for: ness. c A harmonized level playing field on a global scale Opportunities c Incentives for innovation The industries involved in providing energy for c A clear and stable framework that allows long- entire economies can make important contri- term business planning in terms of econom- butions to help mitigate and adapt to climate ic, environmental, and social sustainability. change. OMV is working in different areas of its core business to respond to the challenges For OMV, regulatory risks concerning climate represented by climate change: change include the tightening of rules in the c Increased energy and environmental efficien- European Union Emissions Trading Scheme cy of both products and production sites (EU ETS) for the period 2013-20. This will lead c Lower carbon fuels to increased production costs, which in turn will c Support for research and projects on renew- significantly affect international competition. ables, energy efficiency, and future technolo- Some regulatory risks, such as the impact on the gies. carbon market of the inclusion of aviation in the EU ETS, will materialize in the short term (two to Increased Energy and Environmental Efficiency four years), while others will evolve in the mid of Both Products and Production Sites term (until 2020). c OMV is boosting the share of gas in produc- tion and sales, and thus strategically focusing Physical Risks: The frequency and intensity on lower carbon intensity in its portfolio. of extreme weather events (e.g. floods in c Improving energy efficiency is a core interest Central Europe, storms, and cyclones) might in all business segments, for both environ- increase in the future, affecting our produc- mental and cost considerations. tion and transportation infrastructure directly c The Power Business Unit was set up in 2007. or indirectly via complex interactions on Modern, highly efficient combined cycle gas global energy markets. At OMV, physical risks turbine plants will help meet future energy and their consequences, such as business demand in Central and Eastern Europe, and disruption, are evaluated twice a year within replace some coal-based power generation the OMV Enterprise Wide Risk Management capacities. Power generation from renewables (EWRM) system. For every facility and project, will be explored. risk assessments are routinely carried out and c Zero-emission power plants (ZEP) and carbon emergency plans are in place. capture and storage (CCS) will be important challenges and are seen as opportunities for General Risks: Energy and climate policies are the future development of the OMV business already influencing our markets. Further risks strategy.32 OMV Sustainability Report 2007/08 | Climate Protection and Emission Management
  • 37. Lower Carbon Fuels this analysis are used to raise awareness withinc Strengthening renewables: biogas and bio- OMV, and may lead to further specific impact fuels (blending of FAME and ETBE or ethanol analysis and the development of strategic into conventional fuels and E85) initiatives.c Compressed natural gas (CNG) as a transport fuel: natural gas produces the lowest emis- In addition, current and future financial risks are sions of all fossil fuels measured by their potential impact on OMV’sc In Bruck an der Leitha, Austria, purified biogas EBIT and cash flow. The evaluation of climate (methane) is injected into the natural gas grid change-related risks is an integral part of the and sold to the customer. OMV Enterprise Wide Risk Management (EWRM) system. EWRM is integrated with our businessSupport for Research and Projects on Renew- processes both horizontally and, in conjunction For the OMV Fu-ables, Energy Efficiency, and Future Technologies with strategic and mid-term planning, verti- ture Energy Fundc As an energy group, OMV is committed to cally. Climate change-related risks are assessed and its projects, taking advantage of renewable energy forms together with all other identified risks on a bian- see pp. 68-71, and making them economically viable. To that nual basis. and www.omv end, in 2006 OMV established the OMV Future futureenergyfund. Energy Fund, which is investing over EUR Countermeasures to reduce the potential im- com 100 million in renewable energy projects. The pact of all identified climate change risks have goal of the Future Energy Fund is to support been evaluated and planned or implemented. OMV’s move from a pure oil and gas group to They include the use of economic instruments an energy group with renewable energy in its such as emissions trading and carbon portfolio portfolio. management; integrative consideration of GHG emissions and climate change-related issues inFinancial Implications strategy, controlling, and other key business pro-We assess the current and future financial cesses; and operational and engineering mea-effects of climate change issues by using sures to protect platforms from cyclone damage,complementary approaches at two levels, protect against floods, etc.strategic and operative. As part of our regularstrategic review we monitor the developmentof the future macroeconomic and industryenvironment (market growth, regulations,technologies, etc.), and try to understand theimpact of these trends on OMV. The results of Climate Protection and Emission Management | OMV Sustainability Report 2007/08 33
  • 38. Corporate Profile | In the Spotlight | Environment | Social Issues | Outlook | Indicators Carbon Strategy Targets business segment towards achievement of the Carbon exposure is one of the biggest chal- strategic goals. Cost estimates and projections lenges for the oil and gas industry in the future. for GHG emissions form part of the Group-wide Sustainable growth and contributing to the planning assumptions. The corporate directive decarbonization of European energy markets are for the controlling of investments requires analy- among the key distinguishing factors of the OMV sis of GHG emissions and emission reduction investment proposition. We have made a clear for each project. Costs and potential revenues commitment to decrease the carbon intensity of are factored into the corresponding economic activities where OMV is the operator, and to set analysis and become part of each investment targets for managing GHG emissions: decision. c Reduction of direct GHG emissions from Ex- ploration and Production (E&P) and Refining Organizational Responsibility and Marketing (R&M) by 1 million tonnes, or The overall Group-wide responsibility for climate at least 10%, until 2015, as the result of ef- change issues lies with the CEO, and for each ficiency improvements business segment with the respective member of c Contribution to the decarbonization of the the Executive Board. energy markets in Central and Southeastern Europe by reducing the carbon intensity of Given the complexity of climate change-related the portfolio, promoting gas, and selectively issues and the interrelation between the three including power business segments, E&P, R&M, and G&P, and c Power generation portfolio at no more than corporate functions (strategy, controlling, risk 0.37 t CO2 per MWh, applying state-of-the-art management, treasury, and others), a corporate technology. Carbon Management system was introduced To implement the Carbon Strategy, annual tar- at the beginning of 2007 to ensure appropri- gets will be integrated in the Corporate Balanced ate Group-wide coordination and support. The Scorecard, establishing the contribution of each Carbon Management team is involved in Group- wide reporting processes and the handling of the OMV carbon portfolio; contributes to the development and update of the emissions trad- ing strategy in cooperation with Corporate Risk Management; develops harmonized procedures for the integration of climate change issues into key business processes such as investment plan- ning, risk management, and others; facilitates information and experience exchange across OMV; promotes the identification of emission re- duction projects; and fosters general awareness of climate change at all levels of the corporation. The Carbon Steering Committee, made up of corporate functions and senior managers from the business segments, meets three to four times a year to discuss the OMV emissions trading strategy and the relevant business and sociopolitical factors.34 OMV Sustainability Report 2007/08 | Climate Protection and Emission Management
  • 39. Sustainable Resource Management Water Management Water is used primarily for steam generation, appropriate treatments on site or off site in OMV- cooling, and processes during downstream pro- owned or communal water-treatment facilities. cesses. Efficient water use is ensured by closed- loop cooling systems. Total water withdrawal by Large amounts of saline waters have to be OMV has decreased considerably due to OMV’s managed in Exploration and Production opera- divestment of its chemicals business in 2005. tions – 51 million cubic meters in 2008. In oil left: Total water Surface water consumption fell from 170 million and gas production, the proportion of produced withdrawal by cubic meters per year in 2004 to about 46 million water can exceed 90%. OMV reinjects 100% of source in 2008. Groundwater consumption is about 27 produced water in Austria and Pakistan, and in Right: Water million cubic meters per year. Waste water (in Romania over 95%. The remaining quantities are consumption per total 37 million cubic meters) is discharged after treated appropriately and discharged. business segment 200 180 Million cubic meters Million cubic meters 150 150 120 100 90 60 50 30 0 0 2004 2005 2006 2007 2008 E&P R&M G&P Ground Water Surface Water Water from Public Supply Systems 2004 2005 2006 2007 2008 Waste Management left: Total produc- Waste generation associated with ongoing pro- are considered as of 2008 and contributed most tion waste per duction was almost multiplied by five from 2004 to the increase. Production waste that is tempo- business segment (before the acquisition of Petrom) to 2008. Waste rarily stored on site for later treatment and dis- Right: Type and figures from Petrom E&P, including drilling waste, posal accounted for about 35,000 tonnes in 2008 disposal of pro- duction waste 250 250Thousand tonnes Thousand tonnes Hazardous Waste Non-hazardous Waste 200 200 150 150 100 100 50 50 0 0 E&P R&M G&P OMV Group 2006 2007 2008 2006 2007 2008 2004 2005 2006 2007 2008 Land Fill Recycling Incineration Others Sustainable Resource Management | OMV Sustainability Report 2007/08 35
  • 40. Corporate Profile | In the Spotlight | Environment | Social Issues | Outlook | Indicators and is not included in the reported figures. There constructing its own infrastructure, including was no transport, import, or export of waste eight temporary storage facilities, 15 bioremedia- deemed hazardous under the Basel Convention. tion facilities for decontamination of contaminat- ed soil, and eight landfills. Once these projects At Petrom, the large amounts of hazardous are achieved, Petrom is set to become the largest waste which were accumulated over a long private owner and operator of waste infrastruc- period of time (sludge pits in E&P and refineries) ture in Romania. In addition, Petrom Refining will be subject to specific waste management has set up specific waste management contracts programs in the next few years. Petrom E&P is with specialized companies. Drilling Mud“Skip and ship” E&P will seek to avoid the use of hazardous according to waste minimization and managementstrategy for substances whenever less hazardous alternatives plans. Cuttings are treated to reduce toxicity andsynthetic-based are available. In drilling operations we use water- disposed of in accordance with applicable nationaldrilling mud in based, chloride-free mud wherever technically regulations and best available technology (BAT).new Zealand: feasible: 90% of the drilling mud used by E&P iswww. water-based. If this is not possible for technical At Petrom E&P, drilling waste management wasomv. reasons, e.g. in the case of extended reach wells, greatly improved by changing the chemicalscom we use non-aqueous drilling fluids (NADF), selecting the least toxic option. Waste amounts and drilling fluids used. This allowed Petrom to stop the discharge of fluids as cuttings become are minimized, e.g. through reuse of drilling mud potentially recyclable. Spills and Leakages Pipeline operation and technical integrity structure. However, the number of spills will undergo regular monitoring. Among other decline further as older facilities are upgraded techniques used, pipeline sectors are periodi- and increased focus is placed on preventive cally scanned with “intelligent pigs” to as- maintenance. An ongoing rationalization and sess pipeline condition. While in most of the replacement program has already resulted in countries OMV does not have a high rate of oil substantial infrastructure improvements at spills, the rate of pipeline spills at Romanian E&P operations in Austria. These include the and Austrian operations remains unacceptably replacement of several small production and high. The majority are related to aging infra- separation plants by new and larger produc- The Petrom E&P Well Modernization Program This successful program achieved both environmental improvements and upgraded site conditions. A total of 5,049 wells were renewed, generating positive effects on production cost, production volumes, and operational safety. The work at each well site included site cleanup, soil remediation, sludge treatment, and waste management and disposal. On beam units, new brakes were provided for the motors and new paint was applied on all units to protect against corrosion. Production time at well sites was optimized to reduce energy consumption. In Moinesti, for example, some wells that used to operate for 24 hours now operate for only three to four hours yet produce the same amount of oil as before. The program was the winner of the Romanian Project Management Excellence Award in 2008.36 OMV Sustainability Report 2007/08 | Sustainable Resource Management
  • 41. tion plants, and the replacement of about 100 A spill of about 100,000 liters of gasoline at a leakage at akm of old pipeline in 2007-08. filling station in Klagenfurt, Austria, in December filling station in 2007 was caused by a damaged flange sealing, klagenfurt:OMV recorded a total of 14 significant hydro- the failure of a leak detector, and misinterpreta- www.carbon spills (over 1,000 liters) and 870 minorreleases in 2007, and 12 significant hydrocarbon tion of fuel stock lists. After cleanup the site was reopened, and lessons learned were applied to omv.spills and over 1,689 minor releases in 2008. The the entire retail network. comamount of hydrocarbons spilled fell from 211,000liters in 2007 to 131,000 liters in 2008.Air EmissionsEmissions of sulfur dioxide (SO2), nitrogen ox- recovery systems in the filling stations network wasides (NOx), non-methane volatile organic carbon increased during the last two years to 99% for OMVcompounds (NM-VOCs), and particulates have and 96% for Petrom. OMV only uses ozone-deplet-increased almost in parallel with production ing substances on a laboratory scale (<1 tonne pergrowth. Thus the figures rose sharply with the year). Wherever possible these are replaced with Air emissions byintegration of Petrom data in 2006. other substances, or are reused or recycled. type of pollutantBoth the modernization of existing facilities 16,000 Tonnesand new investments help control and reduceair emissions. At the Schwechat refinery a newSNOx plant costing around EUR 150 million 12,000successfully started operations in October 2007.The reduction in air emissions amounts to minus2,800 tonnes SO2 per year and minus 1,800 8,000tonnes NOx per year (> – 70% and > – 60%, re-spectively, compared to 2006). Flue gas emissionconcentrations are half the current EU limits. 4,000The Refining and Marketing (R&M) business seg-ment installed vapor recovery systems at all major 0distribution sites in order to reduce hydrocarbon SO2 NOx NM-VOC Particulatesemissions to a minimum. The coverage of vapor 2004 2005 2006 2007 2008BiodiversityBefore new projects and operations are launched, of whale, such as the southern right whale, arebiodiversity issues are addressed through envi- found in NZ waters at specific times of the year.ronmental impact assessments and permitting The OMV-supported project helps NZ scientistsprocesses, in line with national legal requirements better understand the whales’ migration patternsand best practice. Special restrictions in sensitive and abundance throughout NZ waters. OMV NZareas are implemented and compliance is closely has also led the NZ industry in adopting volun-monitored. tary guidelines for seismic operations to limit the potential impact on marine mammals.As part of its ongoing commitment in NewZealand offshore operations, OMV continues to The Komsomolskoe oil field currently being de-fund a NZ Department of Conservation project veloped by Petrom Kazakhstan is located close tostudying whale migration patterns through New a series of conservation zones. It is also within theZealand waters. A number of threatened species Caspian Sea water conservation and protection Sustainable Resource Management | OMV Sustainability Report 2007/08 37
  • 42. Corporate Profile | In the Spotlight | Environment | Social Issues | Outlook | Indicators zones. The area is characterized by low-lying flat from Soviet-era operations, including two aban- plains surrounded by shallow intertidal sor areas doned oil rigs. This waste presents a number of of salt flats and mudflats. The dominant feature to environmental and safety issues. Throughout the east of the Komsomolskoe is the Sor Kaidak, a 2008, Petrom Kazakhstan cleaned up much of the roughly 15 km-wide marine inlet. The entire region waste and disposed of it, but considerable work is recognized as having high biodiversity value. remains to be done in the coming years. While the Komsomolskoe field is generally on- In Pakistan, we work in three sensitive areas: the shore, unpredictable wind-driven tides often flood Nara Desert Wildlife Sanctuary (NDWS), the Nara the area of operations, increasing the potential for Game Reserve (NGR), and the Takkar Wildlife marine impacts from these predominantly land- Sanctuary (TWS). To protect these areas, we rigor- based operations. A significant focus is therefore ously comply with preventive actions enforced by placed on spill prevention and response. the environmental management plans in environ- mental impact assessments. Drilling and seismic One of the challenges at Komsomolskoe is the activities are conducted at a prescribed buffer amount of scrap that had been left on the site distance from wildlife colonies and water bodies. Transport OMV looks for safe and environmentally-friendly tankers; all vessels are chartered through first- as well as economical means of transporting class ship brokers. The highest quality and safety its products. For environmental considerations, standards are applied to shipping operations. No pipeline transport is the best alternative because vessel will be contracted without owner confir- energy consumption is low, and road and rail mation of the following items: transport can be reduced. A decrease in road c The vessel must be in line with the ISPS Code transport minimizes the risk of incidents and as certified by the competent authorities emissions to the atmosphere, including green- c The owners must be aware of and the vessel house gas emissions. The percentage of the dif- must be in compliance with the Trieste Port ferent types of transport used will vary from re- Regulations finery to refinery according to product range, the c The vessel must conform to all requirements location of the customers, and the regional distri- under European Council Directive 95/21/EC. bution network. Road and rail transport each In 2004, OMV lowered the age limit for all accounts for 20-35% of deliveries from refineries, chartered ships from Trieste to 15 years. Petrom ship transport for up to 15%, and pipeline trans- accepts vessels aged up to 20 years, but about port for 30-50%. Deliveries to consumers are car- 80% of the ships used are less than 10 years old ried out mostly by road transport (51%), but also and are double-hulled. Danube River transport is via rail (35%) and ship (14%). OMV does not own only undertaken with double-hulled ships. Clean-up at the Petrobrazi Refinery In 2008, considerable progress was made on a large cleanup and renewal project at Petrom’s Petrobrazi refinery aimed at aligning the site with international refinery standards. Some 140 hectares, or 40% of the total surface area, have already been cleaned up. In the course of dismantling old unused installations, 49,000 tonnes of scrap and 300,000 tonnes of concrete were destroyed. Over 800 people from 16 Romanian and international companies are working on the project.38 OMV Sustainability Report 2007/08 | Sustainable Resource Management
  • 43. Environmental Impacts of Our ProductsCleaner FuelsOMV has played a pioneering role in Europe in available at more than 130 OMV filling stations in Energy efficiencythe promotion of cleaner fuels, launching a series 12 countries. OMV thus provides the commercial and fuel-savingof innovative products in recent years. In October vehicles industry with the required infrastructure initiatives:2005, we began adding a minimum of 4.4% bio- for the new trucks equipped with AdBlue SCR www.diesel (FAME) to diesel sold in Austria and in technology. The results are reduced emissions omv.Germany. In 2008, the share of biocomponents(ethanol/ETBE and FAME) in the total volume of from diesel engines in commercial vehicles, fuel savings, and lower CO2 emissions in the trans- comfuels sold was 5.75% in Austria, 5.25% in Ger- port sector.many, and in Romania 2% for gasoline and 3%for diesel. Pure biodiesel is available at 12 OMV OMV contributes to emission reductions in thefilling stations in Germany. heating sector with its low-sulfur (50 ppm) heat- ing oil OMV econPlus and the new sulfur-freeOMV supports the use of compressed natural heating oil Vitatherm.gas (CNG) as a transport fuel due to its signifi-cant advantages: up to 15% less CO2 emissions, We help our customers save costs and reduce80% reduction of carbon monoxide, and practi- the environmental and climate impacts of ourcally no emissions of particulates. In Austria, products not only by enhancing product qualityCNG is currently sold at 49 OMV filling stations, but also through our support for public aware-and eventually will be available at 80 OMV retail ness campaigns. OMV has collaborated withoutlets. CNG is available at 14 OMV retail outlets EUROPIA and Austria’s environment ministry onin Germany and five in Italy. The next market will campaigns to promote energy efficiency and fuelbe Bulgaria. saving. In 2008, the OMV Move & Help social program focused on environmental issues in co-OMV opened the world‘s first AdBlue filling operation with Caritas, SOS Children’s Villages,station in Germany in 2003. Today, AdBlue is and the UN Environment Programme (UNEP).REACHThe new EU regulation on the “Registration, The current REACH phase will end with the finalEvaluation, Authorisation and Restriction of registration before December 2010 of substancesChemicals” (REACH) has completed its first produced in or imported from outside the Eu-phase, in which all manufactured or imported ropean Economic Area in annual quantities ofchemical substances had to be pre-registered 1,000 tonnes or more. Lower tonnages have awith the European Chemicals Agency (ECHA) later deadline of 2015 or 2018.in Helsinki, including their annual productionamount and the envisaged deadline for registra- Three main activities are underway in the currenttion. REACH applies to all chemical substances phase:that are produced in or imported into the EU in c All registrants of the same substance are toquantities of one tonne or more per company. set up a Substance Information ExchangeNearly 30,000 substances, including those pro- Forum (SIEF)duced in the oil industry, are affected. c Chemical Safety Assessments (CSA) and Chemical Safety Reports (CSR) are preparedA core team was set up in the Refining and c Manufacturers and importers submit theirMarketing business segment to oversee imple- registration dossiers to ECHA.mentation of REACH at OMV and Petrom. It alsoprovides expertise and support to other businesssegments affected by the new regulation. Environmental Impacts of Our Products | OMV Sustainability Report 2007/08 39
  • 44. Corporate Profile | In the Spotlight | Environment | Social Issues | Outlook | Indicators Legal Compliance Compliance with environmental regulations is on OMV (excluding Petrom) in the same period, monitored at site level and by business segments with the exception of a fine of under EUR 2,000 in using several IT tools. Integration of the monitor- 2007. Non-compliance can result in non-monetary ing processes is ongoing, with specific challenges sanctions such as warnings from the authorities or at Petrom. even the suspension of permits. In 2007, Petrom’s Arpechim refinery had its Integrated Pollution Pre- Petrom faced monetary fines for non-compliance vention and Control (IPPC) permit suspended from totaling EUR 0.48 million in 2007 and 0.55 million May 28 – August 7 by the regional environmental in 2008. The fines are related to environmental authorities due to delays in projects planned under incidents such as spills and exceeded discharge the modernization program (revamping tanks and limits; non-conformities related to waste manage- closing a waste lagoon). In 2008, the permit was ment; and measures established in authorizations reviewed and modified by the authorities. and inspection reports. No fines were imposed Environmental Expenditures and Investments Since 2006 OMV has followed the IFAC guidelines for vironmental impact of our products are assessed. Environmental Environmental Management Accounting in report- Environmental protection expenditures, excluding expenditures and ing environmental expenditures and investments. depreciation, amounted to EUR 215 million in 2008, investments In addition, costs for measures to reduce the en- of which EUR 78 million were spent on integrated pollution prevention (in 2007, EUR 132 million and Environment-Related Investment Environmental Operating Costs (excl. Depreciation) EUR 54 million). EUR 46 million (in 2007, EUR 30 240 million) were spent on direct measures to reduceMillion Euro 2006 2007 2008 the environmental impact of OMV products, such as 210 desulfurization and the production of hydrogen for it. 180 Environmental investments for assets put into 150 operation in the reporting year totaled EUR 212 120 million in 2008, of which EUR 143 million were al- located for integrated prevention (in 2007, EUR 286 90 million and EUR 62 million). The largest environ- 60 ment-related investments in 2007-08 were made in the refineries, with EUR 242 million invested in 30 Schwechat, EUR 29 million in Arpechim, and EUR 0 53 million in Petrobrazi. End-of- Integrated Product- End-of- Integrated Product- Pipe Prevention oriented Pipe Prevention oriented Petrom City, Romania’s Biggest Environmental Rehabilitation Project Petrom’s future headquarters, Petrom City, nated with hydrocarbons. The three-year, EUR will be located on a site with severe contami- 10 million investment will restore the area to nation dating from bomb attacks on a tank environmental standards in line with current farm during World War II. The site must be regulations. At the International Conference rehabilitated prior to the start of construction. on Managing Urban Land, held in Stuttgart, Under the “Verde Petrom” project, a 200,000- Germany, in April 2007, “Verde Petrom” was sq.-meter area is undergoing remediation of recognized as one of the most important reha- soil and groundwater that are highly contami- bilitation projects in Europe. 40 OMV Sustainability Report 2007/08 | Environmental Impacts of Our Products
  • 45. Challenges and Goals in 2009Appropriate management of environmental ute to the achievement of this mid-term goal.impacts is an ongoing responsibility for OMV in Specific actions will include the development,all its operations and projects. It includes the con- deployment, and fostering of energy reductionsolidation and strengthening of processes related strategies in all business segments; greenhouseto legal compliance, especially at Petrom. Waste gas reduction projects in conventional opera-management and remediation of historically ac- tions; and renewable energy projects supportedcumulated waste will also continue in 2009. by the OMV Future Energy Fund.In 2009, a special focus will be placed on hydro- Communication and stakeholder dialogue are es-carbon spill prevention and preparedness plans, sential whenever we engage with new partners,including drills as a basis for reducing spills. particularly in the case of the innovative projects undertaken by the OMV Future Energy Fund.The OMV Carbon Strategy expresses a clearcommitment to decreasing the carbon intensity A program to raise awareness of indirect emis-of activities where OMV is the operator. Project sions from business activities will target not onlymonitoring and portfolio analysis will contrib- technical departments but all OMV employees. Challenges and Goals in 2009 | OMV Sustainability Report 2007/08 41
  • 46. SOCIAL ISSUES“How would you describe the people who work for OMV around the world?”Ferhat Güldürücü, Austrian Social Insurance Authority for Business
  • 47. “Each of us is different but we all have equal access to opportunities.” Simone Alaya, Corporate Social Responsibility, OMV
  • 48. Corporate Profile | In the Spotlight | Environment | Social Issues | Outlook | Indicators Employees Our Approach Policy and Guidelines 14 to 21 following Romania’s accession to the OMV employs around 40,000 people worldwide. European Union. Their rights and obligations are set out in their labor contracts, and are also derived from vari- Organizational Responsibility ous company agreements, collective bargaining HR supports employees at all stages of their agreements, corporate directives, and locally careers at OMV, with local management playing applicable policies. the most important role. Strategic decisions that have a bearing on the entire OMV workforce are Objectives and Performance in 2007-08 taken centrally. Similarly, where general issues In the reporting period, the Human Resources could have an impact on the Group, local man- (HR) Department systematically pursued its agement is obliged to follow the guidelines set goals, the majority of which it achieved. To by Corporate Human Resources. improve work-life balance, for example, a model was developed that makes it possible under Monitoring and Further Development company agreements for employees to take up In its responsibility towards its employees and society, OMV is guided by the principles of the international social accountability standardObjectives in 2007-08 Imple- On- mented going SA8000. As a signatory of the UN Global Com-Development of internationalization l pact, OMV is committed to upholding further principles of relevance to HR, and has includedDevelopment of work-life balance at OMV l them in its corporate directives.Uniform employee definitions l OMV maintains an ongoing dialogue with em-Expansion of the European Works Council l ployees to find out what works well in their jobs and where there is room for improvement. The to a year off as a sabbatical. A new collective main means of monitoring employee satisfaction bargaining agreement that went into effect on was a Group-wide staff survey on human capital July 1, 2007, created uniform occupation group management (HCM). The findings are described definitions for hourly-paid workers and salaried under “Complaints Procedure and Antidiscrimi- employees. The European Works Council, which nation” (p. 45). meets twice a year, increased its members from Careers and Equal Opportunities Apprentice Training together with our apprentices. Equally popu- Providing high-quality apprenticeship training is lar was a three-day open house event at the a key concern at OMV. At the end of 2008, OMV training center, at which we welcomed some had 130 apprentices in Austria and 30 in Ger- 600 visitors. The training program for OMV ap- many. A variety of measures and projects are prentices includes in-depth English-language aimed at making young people aware of the ap- training as well as sports, fitness, and team- prenticeships available at OMV, and at present- building activities. ing and positioning the company as an attractive employer. Employee Training and Development In recent years, OMV has developed a number As part of the Austrian government’s “Re- of programs for professional human resources search Goes to School” project, for example, training and development, which are now largely OMV invited students to the OMV training well established and are running successfully. In center to carry out chemistry lab experiments addition to the existing programs, in the report-44 OMV Sustainability Report 2007/08 | Employees
  • 49. ing period OMV launched the following new the entire employment period from hiring to Overview of em-development initiatives: termination. ployee develop- ment programs:Step2Excellence: The first part of this new OMV Given the demographic trends at OMV, a large- www.program began in 2008 and has not yet beencompleted. OMV developed the expert program scale project was started in 2006 to examine the problem of an aging workforce, above all omv.in cooperation with IMD, a leading Swiss-based in Europe. The main issues covered were the combusiness school with a high international reputa- burden on health, knowledge transfer, alternativetion. The program content focuses on strategy, working hours schemes, and alternatives to earlyfinance, organization, broadening expert lead- retirement. The projects result included develop-ership skills, knowledge management, innova- ing the existing compensation plan and creatingtion, and diversity. The aim is for participants the above-mentioned OMV Job World.to strengthen their ability to make an impact forthemselves and for the company. OMV is extremely interested in achieving a high percentage of local staff in the countries whereCareer Campaign: The OMV Job World was cre- we have operations. The same applies to man-ated in 2007-08 to offer more career prospects agement positions. Because the market condi-and development opportunities, and making tions and job requirements differ from country tothem transparent. This animated Intranet world country, the percentage varies but as a whole itgives every employee a chance to learn about is over 90%.all the career paths and development programsavailable at OMV. It also presents employees Complaints Procedure and Antidiscriminationwho have had exemplary careers and explains In the reporting period, the results of the OMVthe human resource development tools. This HCM questionnaire, the Group-wide employeehands-on method provides an attractive way to survey, showed that there were some informalfind out about careers at OMV, and encourages complaints. Nevertheless, the 2007 survey pro-employees to promote their own advancement. duced a very good overall HCM index of 76 (out of a maximum 100 points). According to the bench-Equal Opportunities marking of the consulting firm that helped us carry Petrom traineeUnder its corporate antidiscrimination directive, out the survey, OMV ranks among the best 20% Georgel IonutOMV is committed to providing equal opportuni- in terms of employee satisfaction. The response Cioropina atties for all employee groups in all recruitment rate rose from 79.4% in 2006 to 81.2% in 2007, work on anprocesses, company procedures, and employ- which goes to show that the survey is increasingly electrical circuitment contracts. This principle applies throughout gaining acceptance in the Group, and that actively exercise Petrom Trainees in Austria In Romania there is no comparable system to Austria’s dual education system where trainees attend a vocational school part time while working for companies. OMV therefore developed a pilot project enabling Romanian trainees to attend vocational school in Austria as external students and to take the apprenticeship examination in the dual profession of electrical en- gineering and mechanical engineering technician. In September 2008, three talented Romanian trainees were sent to Austria and were quickly integrated into OMV. This new project helps OMV meet its goal of increased interna- tionalization, and has a very positive effect on the atmosphere in apprentice- ship training. After completing their Austrian training, the young employees will return to their country to work at Petrom. As a result, targeted, practical know-how will be transferred to Romania. Employees | OMV Sustainability Report 2007/08 45
  • 50. Corporate Profile | In the Spotlight | Environment | Social Issues | Outlook | Indicators shaping their work environment is important to the support they need as far as is legally possible. employees. Management dealt with the formal complaints made during the reporting period and took the In connection with the corporate antidiscrimination necessary action. directive, OMV is committed to giving employees Social Security Employee Benefits Career and Succession PlanningOMV pension plans In addition to the company pension plans adopted In the area of career and succession planning,are described in some time ago in Austria and Germany, in 2008 particular attention was paid in the reportingthe Annual Report OMV introduced retirement plans at Refining and period to the needs of expatriate employees. This Marketing in the Czech Republic and Slovakia as involved mandatory career development planning well. Also new is private health insurance for local and a focus on planning the repatriation posi- employees of OMV in Turkey, which covers 20% tions. of the costs payable for out-patient treatment.Employee repre- This insurance not only covers health care in and Freedom of Associationsentation in Iran: outside the hospital, but also medical checkups. When OMV signed the UN Global Compact, it www. OMV pension schemes in the different OMV coun- committed itself to upholding freedom of associa-omv. tries are described in the OMV Annual Report. tion and recognized the right to collective bargain-com Personnel Risk Review ing. In countries where these rights are not politi- cally welcome or recognized by society, OMV In 2008, a working group began to determine seeks to enable the establishment of employee what personal risks there are for an OMV em- representation in house, or tries to find other ployee and whether or how these are covered by solutions. As a result, in the reporting period insurance or otherwise. Over the next few years c 95% of employees were represented by local OMV plans to remedy any shortcomings in pre- trade unions or works councils ventive measures, to the extent that this proves c Minimum wages or salaries were fixed by law reasonable and economically feasible. or agreed by collective bargaining for over 99% of the workforce Employee Profit-Sharing Plan c In the event of restructuring, around 90% An employee profit-sharing plan in 2007 and of employees were covered by mandatory 2008 gave OMV employees who purchased three periods of notice under employment law or shares a fourth share free of charge up to a cer- collective bargaining. tain amount. The aim was to let employees par- ticipate in the company’s success. In the reporting period, a total of 2,436 employees took part in the plan and purchased 268,695 shares (excluding the free shares). Petrom Outplacement Program In 2006, Petrom established an outplacement Over EUR 60,000 were spent on retraining program to help former employees make a released employees to boost their chances new start in their working lives. Under this of finding a new job. A survey showed a 96% program, Transition Centers provided support client satisfaction rate with Transition Center services to over 8,000 people in 2007-08. The services. The outplacement program has thus Transition Centers will continue their activities become a successful part of Petrom’s CSR ef- in 2009. forts.46 OMV Sustainability Report 2007/08 | Employees
  • 51. An Innovative WorkplaceIdea Management years. A sabbatical can be arranged by mutualIdea management gives our employees a agreement, taking the company’s interests intoplatform for putting forward new suggestions consideration.and alternative solutions to problems concern-ing products, processes, working conditions, In response to the demographic trends inincreasing product quality, and similar topics, Germany and the resulting raising of the retire-thereby contributing to the company’s success. ment age, during the reporting period OMV inIt also promotes cross-departmental entrepre- Germany introduced long-term compensationneurial thinking and action. Innovative ideas accounts which give employees greater flexibil-from its employees saved the company EUR ity in planning their future and lifetime working4,700,005 in 2007 and EUR 4,412,434 in 2008. In hours. Participating employees pay time and sal-2007, OMV paid out bonuses of between EUR ary components into these long-term accounts in208 and EUR 5,475 for valuable suggestions the course of their working lives. Employees canfrom its employees. decide for themselves if they want to take part in the scheme, and how much they wish to pay inWork-life Balance and how often, which provides flexibility if theirIn Austria, company agreements now allow circumstances change.employees to take up to a year off work. Asabbatical is not restricted to any particularpurpose, but can for example be used forspending a period of time abroad, for furthereducation, or simply for rest and recreation.OMV developed the model for employees whohave been with the company for at least twoChallenges and Goals in 2009c Continuing Internationalization: OMV will push forward on creating standardized tools. A further aim is to exploit stronger synergies be- tween employee programs, and evaluate existing differences and potential compensation for them, especially in insurance and occupational health and safety.c Cooperation and Synergies Between Business Segments: The goal is to expand existing HR networks on various HR issues, and more fully exploit synergies in the Group.c Intelligent Cost Management: Additional cross-functional programs and em- ployee exchange.c Values: Continued implementation of the new OMV Values (Pioneers, Professionals, and Part- ners). Employees | OMV Sustainability Report 2007/08 47
  • 52. Corporate Profile | In the Spotlight | Environment | Social Issues | Outlook | Indicators Health Our Approach Policy and GuidelinesThe OMV HSE The health of our employees is a primary assetPolicy: and resource. OMV is committed to promot- ing their physical and mental well-being. OMVwww.omv. occupational health (OH) teams view fitnesscom for work as a mixture of cognitive, emotional, motivational, and biological potential that is supported by positive self-esteem and a net- work of social contacts. The teams’ mission is to promote good health by offering up-to-date medical treatment, preventive care, and psycho- logical counseling. Objectives and Performance in 2007-08 OMV’s OH policy centers on improving employ- Organizational Responsibility ee well-being as well as health. The high-quality Through regular input on health topics and services provided often exceed legal require- practices, OH experts support line management ments. In addition to standard medical care, to take the ultimate responsibility for occupa- employees have access to physiotherapy and a tional health. In order to achieve a broad and range of prevention measures, including a pro- effective network of knowledge concerning OH, gram aimed at the prevention of musculoskeletal the corresponding organization works accord- disorders. ing to a shared service concept. The Center for Occupational Health has a strong focus on the At the start of 2008, Petrom set up PetroMed integration of international activities according Solutions, a network of 30 healthcare clinics for to the specific needs of the business units and Petrom employees. In addition to curative heath countries, as well as for the Group as a whole. care, PetroMed offers prevention programs such as flu vaccinations and voluntary health checks. A In addition to the legal requirements for OMV as round-the-clock psychological counseling hotline a company, we have to be aware that there is an is available to Petrom Refining employees and individual dimension as well. The responsibil- their families, and prevention programs are devel- ity for personal lifestyle choices, such as eating, oped in response to the problems most frequently drinking, and smoking habits, remains with the reported by callers. individual. This is why OH teams invest much effort in motivating all employees to also play an active role in promoting their personal health.Objectives in 2007-08 Imple- On- mented going Monitoring and Further Development2007: Roll-out and start of implementation of the Specific health surveillance and health checksOMV Health Standard in all countries in which OMV were performed according to legal requirementsoperates and OMV regulations. These serve as the basis for l2008: Substantial progress made towards achieving the development of future health promotion, suchOMV’s Health Standard, released in 2006 as the sleep-disorder prevention program for shift workers or individual adaptation of workingImplementation of a healthcare program (includ- boots.ing flu vaccinations and health checks for metabolic lsyndrome) at PetromInitiation of “Health Circles” to encourage employee lparticipation in health matters48 OMV Sustainability Report 2007/08 | Health
  • 53. Group-Wide OH Standards 100,000Our target is 90% implementation of the new Number of Medical InterventionsOMV Health Standard by 2010. The first stage 80,000began in 2007 and included an awareness cam-paign aimed at OMV employees. 60,000In 2007, the Center for Occupational Health under- 40,000took an analysis of the medical resources current-ly available across the Group and the resources 20,000required by the OMV Health Standard. Tangibleneeds were identified as marginal compared 0with intangible factors and structural harmoniza- Medical Paramedic Physio- Legally Re- Vaccinationstion requirements. Petrom established a project Consultations Interventions therapeutical quired Med-to refurbish OH clinics at its locations by the end (Non-Trauma) Treatments ical Examsof 2010. Petrom OMV (excl. Petrom) Medical Interven-Health Initiatives tionsIn addition to their ongoing efforts to promote good (R&M) business segment operates, as well as fornutrition and fitness, OMV’s OH experts launched a Petrom locations in Romania. The moderatorsvariety of activities in 2007-08. These included eye were trained by the end of 2008.examinations, skin checks, a new stress-screeningprogram, vaccinations against flu, tick-borne en- Broad-based preventive programs were imple-cephalitis, and hepatitis, and information campaigns. mented within R&M to identify people at risk of developing vascular diseases in order to helpIn 2007, “Health Circles” were created as a prevent metabolic illness, strokes, and heart More OMVmeans of encouraging active employee partici- attacks. About 1,500 employees took part in health initiatives:pation in health matters. Health Circles now exist the voluntary “Vitalcheck” screening program www.at all major OMV sites in Austria and Germany. in Austria and Germany. The 70% participation omv.Pilot Health Circles are planned for nearly all thecountries in which the Refining and Marketing rate was significantly higher than the average rate of participation in prevention programs. comChallenges and Goals in 2009At the end of 2008, operational audit courses will establish work procedures for conductingwere organized for senior medical officers. Medi- health risk assessments (HRA).cal operational audits will be a valuable sourcefor the continuous improvement of OH standards Prevention program development is based onat OMV. medical examination results, input from em- ployee Health Circles, and current epidemiologi-In addition to clinic refurbishment and the intro- cal evidence. Prevention programs in 2009 willduction of a new medical software application, focus on:the main challenge for Petrom’s PetroMed Solu- c Cardiological preventiontions will be to carry out an intensive training c Stress-related activitiesprogram to implement the harmonized OH and c Medical examinations for drivers.medical regulations. In its operations in developing countries, OMVTo ensure evidence-based, legally compliant OH will further improve existing infrastructure bymonitoring, the Center for Occupational Health strengthening on-site emergency capability. Health | OMV Sustainability Report 2007/08 49
  • 54. Corporate Profile | In the Spotlight | Environment | Social Issues | Outlook | Indicators Safety Our Approach Policy and GuidelinesThe OMV HSE OMV makes clear in its policy on health, safety,Policy: security, and the environment (HSE) that occu-www. pational and process safety is a top priority. Ev-omv. eryone at OMV should come home from work incom good mental and physical health. All workplaces and processes must be safe and secure for OMV, its stakeholders, and the environment. This com- mitment means that we believe all accidents are preventable. We strive to keep risks as low as is reasonably practical. Corporate directives define the Group-wide standards for HSE awareness and competencies; reporting, investigation, and management of in- cidents; and emergency and crisis management. Implementation of the directives and standards is supported by Group-wide tools, communica- carefully monitored. Progress was measured tion campaigns, and expert teams. The ultimate on a monthly and quarterly basis and reported objective is to create a genuine safety culture directly to the OMV Executive Board. with and for all OMV employees. Organizational Responsibility Objectives and Performance in 2007-08 Safety is a line management responsibility that OMV’s business strategy sets out two ambitious starts with the top senior management, sup- safety targets to be achieved in the Group by ported by a team of experts. However, it is also 2010: less than one lost-time injury per million each employee’s responsibility to contribute to a hours worked (LTIR), and zero incidents rated at safe work environment, whether in the operating Level 4 or above on a classification scale rang- plant or the office. Employees are encouraged ing from Level 1 (low severity level) to Level 5 to report and discuss hazardous behaviors or (highest severity level). This means no fatalities conditions. or process safety incidents with partial plant damage. All Group targets are deployed to the We require contractors and partners to comply business segments. Additional targets at seg- with OMV safety standards and integrate them ment or site level are defined if needed. into their management systems. A Key Performance Indicator (KPI) system drives Monitoring and Further Development our safety performance. Safety statistics are Safety KPIs are monitored on a monthly basis. The reporting and investigation of incidents as well as the sharing of lessons learned areObjectives in 2007-08 Imple- On- carried out in a standardized way. Group-wide mented going implementation of an incident tracking tool wasReduce until 2010: LTIR to <1 and incidents at Level 4 l launched in 2006 and completed by the end ofor above to zero 2008.Implementation and roll-out of an incident reporting land management tool until 2008Consolidation of Petrom’s safety program: contractormanagement, road safety, further strengthening of lthe safety culture50 OMV Sustainability Report 2007/08 | Safety
  • 55. Workplace SafetyThe reporting period was overshadowed by a increase in the LTIR in 2008 compared to 2007high number of fatalities: In 2007, three employ- indicates.ees and eight contractors lost their lives whileworking for OMV, and seven employees and During the European Week for Safety andnine contractors died in 2008. Road accidents Health at Work in October 2007, the HSEQaccounted for a large majority of these fatali- team from the Petromar field cluster received lost-Time Injuryties. Most occurred within the Exploration and an award for its activities from the Romanian Rate (lTIR)Production (E&P) business segment. However, safety authority. in 2004-08safety measures implemented at OMV facilitiesproduced positive results. OMV (excl. Petrom) OMV (incl. Petrom) 4To avoid future fatalities, the overall safety cul-ture continues to be addressed. At Petrom, thiscultural change process started from day one 3with the full commitment of the senior manage-ment. Substantial investments have been madein plants, devices, and personal protective equip- 2ment.In 2008, the LTIR for the entire Group, includ- 1ing Petrom, was 0.91 injuries per million hoursworked for OMV employees and 0.92 for contrac-tors. While the LTIR for contractors continued 0to decrease in 2008, the further reduction of 2004 2005 2005 2006 2007 2008 Targetemployee accidents remains a challenge, as the LTIR for Own Employees LTIR for Contractor EmployeesContractor SafetyUnder the OMV HSE management system, sup- tively to control HSE risks, e.g. by preparing and Setting HSEpliers and contracted services must comply with implementing bridging documents. Precautions standards forOMV HSE standards. While HSE is everyone’s re- for unplanned events are included in emergency contractors andsponsibility, it ultimately rests with line manage- and crisis control. joint ventures:ment, which has statutory and moral obligations www.to provide for suppliers and contracted services We set HSE performance standards for our con- omv.the same safe working environment as for OMVemployees. Contractors and service providers tractors, and monitor and audit their performance against those standards. The inspection and test- comare strongly encouraged to actively support this ing of plants and equipment used by OMV and itsprinciple. contractors form an essential part of monitoring HSE compliance as required by regulatory author-Before entering into any contractual agreement, ities and contractual requirements. ContractorsOMV assesses the contractor’s management of will have inspection and testing regimes in placeHSE risks, assigning these the same priority as to ensure compliance. The goal is for contractorstechnical and commercial risks. In our tender to fully understand and work in accordance withprocess the pre-qualification, selection, and HSE management system standards. In 2008,retention of contractors are assessed to ensure three major Refining and Marketing (R&M) con-that a candidate’s HSE values are consistent with tractors were audited for compliance with OMVthose of OMV. We develop interfaces between safety standards. Recommendations will be sub-OMV and contractors and manage them effec- ject to a joint follow-up in the future. Safety | OMV Sustainability Report 2007/08 51
  • 56. Corporate Profile | In the Spotlight | Environment | Social Issues | Outlook | Indicators Road Safety Road accidents accounted for the majority of fa- Petrom’s Executive Board approved a road safety tal accidents in the reporting period. Twelve fatal program focusing on five areas: road accidents occurred in 2008. Drivers’ lack of c Ensuring corporate standard compliance (driv- knowledge and risk awareness, rule breaking, ing policy and fleet management manual) and inadequate safety qualifications were the c Medical and psychological examinations main causes of accidents. Proactive remedial c Monitoring daily driving behavior via vehicle- strategies and corrective measures are a top pri- monitoring systems ority for OMV. Improving road safety awareness c Driver and pedestrian training, first aid train- is therefore key. ing c Communication (pedestrian and driver road Training courses on defensive driving in coop- safety campaigns). eration with the Austrian Automobile Associa- tion (ÖAMTC) began back in 2006. During the Corporate HSE is developing a strategy to support reporting period courses were held in Austria and facilitate the business segments’ efforts to and in Romania. implement further transportation safety initiatives. Product SafetySafety data OMV provides its partners and customers OMV application engineers and sales staff con-sheets: with detailed information about its products duct product training on an ongoing basis for and the materials used in producing them. All OMV employees, suppliers, and filling stationwww.omv. products that are manufactured, marketed, or partners and other customers.com distributed by OMV are in compliance with the applicable legal regulations. Safety data Complaint management processes are already sheets for OMV products can be downloaded well established for corporate clients, for the from the OMV website (www.omv.com, refineries in Schwechat and Burghausen, and for Products > eServices > Product Information). VIVA products. Additional complaint management These specifications contribute to the safe use processes need to be implemented for all business of the products. units throughout the market in the near future. Safety Awareness and Training Safety is an important issue and awareness of By recording and investigating incidents and it is high. However, the findings during safety near misses, we can ensure that we learn from audits, management walkarounds, and incident previous experiences and prevent recurrence. investigations often addressed predominantly Proactively collecting reports about near misses, technical issues. hazards and findings, and using assessments and lessons learned, will reduce the likelihood of an In 2007-08, the next step in OMV’s “Think:Ahead incident occurring in the first place. The number and Talk About It” campaign, which in 2006 had of near miss and hazard reports was more than won a DuPont Safety award for Europe, the Mid- doubled in the last two years to 27,700 in 2008. dle East, and Africa in the “Innovation” category, This sets a good basis for raising safety aware- involved implementing a new Group-wide IT ap- ness. It is of critical importance that OMV and plication for incident management and reporting. Petrom, as well as contractors, learn from previ- The “Think:Ahead CARE” tool focuses on reactive ous experiences via data reporting and analysis. and proactive HSE management. The implementation of “Think:Ahead CARE” was supported by an internal media campaign52 OMV Sustainability Report 2007/08 | Safety
  • 57. In 2007, the “Think:Ahead” safety campaign won a Petroleum Economist Award in the “Health & Safety Project” category. It has also won an award from the Romanian press. During the Safety Days held at all R&M sites, a touch of humor was used to draw attention to the risk of accidents. Slipping on a banana peel may be classic slapstick but in real life this and other hazards are far from funny. Strategi- Increasing the cally placed banana peel stickers helped raise number of safety awareness of everyday hazards and encourage audits and near discussion. miss reports strengthens the safety culture 30,000 25,000 20,000 15,000 10,000 5,000 0with posters, newspapers, and a motivation 2004 2005 2006 2007 2008video. All users were trained on the tool and Near Miss and Hazard Reports Safety Auditsadditionally on HSE basic knowledge, via awide range of training formats from face-to-facetraining to e-learning, which was used for thefirst time at OMV.Emergency and Crisis ManagementAn Emergency and Crisis Management Direc- definite timelines for their completion into thetive was introduced in 2006 to ensure that year 2009.OMV is adequately prepared for emergenciesand crisis situations. The system described in Emergency and crisis exercises take placethe directive enables a structured approach regularly. Response scenarios for E&P, refin-to such situations and supports the necessary eries, tank farms, gas transport, commercialpreparatory organizational steps. To support and retail business, and office buildings areimplementation of the directive, in 2007 a Cri- rehearsed. More than 75 crisis and emergencysis and Emergency Response Plan was devel- exercises took place in 2007-08, involving OMVoped and rolled out. In 2008, the directive was staff, contractors, authorities, and other organi-audited by an independent party and a number zations. Evaluation of these exercises leads toof improvement measures were raised, with the identification of lessons learned, which are Safety | OMV Sustainability Report 2007/08 53
  • 58. Corporate Profile | In the Spotlight | Environment | Social Issues | Outlook | Indicators considered in the regular updates of crisis and prevented the emergency from escalating into a emergency response plans. major organizational or personal crisis. OMV operates in various parts of the world In the case of avian flu preparedness, OMV dem- where there are social, religious, cultural, politi- onstrated its ability to proactively plan a response cal, and economic challenges. Some of the busi- for minimizing the impact of a pandemic threat on ness units operating in these regions have dealt its employees while ensuring business continuity. with real emergency situations. Their prepared- With the Pandemic Preparedness Plan, OMV set ness in terms of planning and competences an example of best practice for the industry. enabled a quick and effective response that Process Safety Process safety and integrity at production facili- Excellence will take on this responsibility in the ties are always key concerns in the global oil, future. gas, and chemical industries, but were even more of an issue in the last few years, when A process safety workshop developed for OMV several major accidents occurred. In 2007- and Petrom by DNV and attended by OMV HSE 08, OMV faced large fires in the Petrobrazi, senior managers took place in January 2008 in Arpechim, and Schwechat refineries. There Vienna and Bucharest. The objectives were to: were no injuries in the fires and no risk to c Highlight findings and root causes from recent neighbors. Thanks to immediate professional OMV process safety accidents such as the fire-fighting efforts, only some parts of the Schwechat refinery fires, E&P accidents, and plants were affected and actual asset losses analogies with the BP Texas City investigation were limited. The incidents were thoroughly in- findings vestigated with the help of external consultants c Share process safety management ap- to find technical and managerial root causes. proaches and methods used in each business Process safety measures that have been intro- segment duced include organizational changes focusing c Define synergies and the way forward. on process integrity, adapted risk evaluation processes, and revised change management Based on the results of this workshop, the procedures. All activities have senior manage- Executive Board approved the establishment of ment attention. The increasing importance of a process safety management working group process safety was taken into account in the led by Corporate Safety with participation by all reorganization at the Refining and Petrochem- business segments. The focus of this working icals Business Unit, where the Process Safety group is to raise and align all process safety- Department in the newly established Center of related standards throughout OMV. Challenges and Goals in 2009 The challenge for the future is to minimize risks c Introducing a new safety management direc- and ensure a safe and secure working environ- tive ment for OMV operations. Our work in 2009 will c Further developing and strengthening process focus on: safety management. c Implementing further transportation safety initiatives c Using “Think:Ahead CARE” to improve safety awareness via leading indicators such as the “Action Items Response Rate” (AIRR)54 OMV Sustainability Report 2007/08 | Safety
  • 59. Kapitel | OMV Nachhaltigkeitsbericht 2008 00
  • 60. Corporate Profile | In the Spotlight | Environment | Social Issues | Outlook | Indicators Human Rights Our Approach Policy and Guidelines assessments have already been implemented byThe human rights The OMV Human Rights Policy was adopted by Exploration and Production (E&P). OMV supportspolicies of OMV the Executive Board in 2007. It served as the community development projects in Pakistan,and Petrom: model for the Human Rights Policy introduced Yemen, Iran, and the Kurdistan Region of Iraq.www. by Petrom the following year. The OMV Humanomv. Rights Policy is based on the OMV Code of Con- Organizational Responsibilitycom duct, and sets out the principles of our under- standing of, and our responsibility for, the pro- We see human rights as one of the central elements of social sustainability. Any activity tection of human rights in the business environ- undertaken by OMV entails potential risks and ment. In the document OMV commits itself to opportunities in the area of human rights. These respect, fulfill, and support the fulfillment of will vary from country to country. Collecting human rights within its sphere of influence, baseline information about the social conditions and not to become complicit in human rights in the countries in which we operate is therefore violations as understood under international the key first step we take when we prepare to law. The Human Rights Policy is the normative take decisions about our business activities. This umbrella for the management of human rights obligation is the responsibility of project man- issues in our operations, as developed and agers, the general managers of the local OMV implemented over the last few years. companies, and line managers. They are sup- ported by the CSR manager of OMV and the CSR Objectives and Performance in 2007-08 managers of the business segments. The CEO OMV made substantial progress towards achiev- of OMV bears ultimate responsibility for CSR, ing the human rights targets defined in earlier including human rights. Corporate Social Responsibility Reports. One of the implemented activities was the development Monitoring and Further Development of a human rights matrix and the organization To identify the risk of human rights violations of human rights workshops aimed at raising and avoid them, before it begins operations in a employee awareness. HSEQ and CSR training new country or region OMV seeks dialogue with courses were revised to include human rights the local stakeholders and assesses the human issues as a central element. Moreover, OMV rights situation. committed itself to focusing on human rights aspects in its assessment of the impacts and risks At the end of 2007, the CSR manager of OMV, of planned projects and investments in relation working with human rights experts, tested a ques- to the local environment, and to take these issues tionnaire based on the OMV Human Rights Matrix into account in the decision-making process. Such (see below) in a survey in Tunisia. On a consult- ing visit to Yemen in fall 2008, the CSR manager of E&P and human rights experts conducted aObjectives in 2007-08 Imple- Ongo- detailed survey based on the human rights indica- mented ing tors defined by the Danish Institute for HumanRaising awareness of OMV’s responsibility for human Rights (DIHR), to further develop the question-rights protection l naire used in Tunisia. The findings of the pilot sur-Promoting dialogue with local stakeholders l vey in Tunisia are available on the OMV website. The results of the survey in Yemen are currentlyLocal application of the OMV Human Rights Matrix, l being evaluated. Using the DIHR indicators, OMVneeds assessments, and planning activities carried out a human rights gap analysis in allMonitoring the supply chain to enforce the prohibi- l E&P countries at the end of 2008. In 2009 the datation of forced labor and prohibited child labor are due to be analyzed by external human rightsContinuation of human rights training for security l experts and appropriate improvements will beforces implemented as needed.56 OMV Sustainability Report 2007/08 | Human Rights
  • 61. The OMV Human Rights MatrixOMV’s human rights responsibilities are con- Institute for Human Rights in Vienna. We placed More informa-tained in a comprehensive human rights matrix great importance on the operative integration tion on the OMValigned with the matrix developed by the Busi- of the business segments into the development Human Rightsness Leaders Initiative on Human Rights (BLIHR). process. In 2008, the OMV Executive Board Matrix:The OMV Human Rights Matrix is derived from adopted the matrix as part of the CSR manage- www.the OMV Human Rights Policy and constitutes ment system. Among the various tools created omv.the basis for our activities in the field of humanrights. It includes highly sensitive areas, ranging to strengthen awareness of human rights and promote implementation of the matrix are Q&As comfrom the rights of indigenous peoples to security (e.g. What are human rights? What do theymeasures involving armed personnel. have to do with the company?), indicators for conducting gap analyses in the OMV countries,The OMV Human Rights Matrix was developed and checklists for human rights implementation.in cooperation with human rights experts, Issues that are relevant to the matrix are incor-particularly members of the Ludwig Boltzmann porated in the Balanced Scorecard.Human Rights TrainingOMV organizes training courses and workshops business ethics and a presentation on the OMVto raise human rights awareness on the part of Human Rights Matrix were also on the agenda.employees and other stakeholders, and pro-motes the development of specific competencies In a program introduced at Gas and Power (G&P),and qualifications. In the reporting period, the newly hired employees can attend a one-day work-importance of CSR, human rights, and business shop that provides general information on G&P andethics along the OMV value chain was the focus also covers OMV’s approach to CSR, business eth-of a number of workshops held in the different ics, and human rights during the reporting period.business segments and in the OMV Communica-tion Department. The participating department Human rights training is provided for the person-heads and team members were given informa- nel of security companies contracted by OMV. Intion about OMV’s approach to CSR and the chal- 2007-08, courses were held in Yemen, Austria,lenges it presents. The basic principles of OMV’s and Romania. Training for Romanian Private Security Companies In November 2008, OMV CA&S and Petrom held a “train-the- trainers” workshop on “Security Services in Line with Human Rights” for Human Resources managers and project managers from private security companies contracted by Petrom. The workshop was a follow-up measure suggested by participants in a 2007 workshop at which Petrom had presented its ap- proach to security and human rights to senior managers of these companies. The “train-the-trainers” workshop was con- ducted by external human rights trainers and CSR and security managers from OMV and Petrom. Its aims were twofold: to raise awareness of the need to align security service provision with human rights standards; and to strengthen the capacity to provide stimulating and practical training workshops on the subject and integrate them into current training programs. Human Rights | OMV Sustainability Report 2007/08 57
  • 62. Corporate Profile | In the Spotlight | Environment | Social Issues | Outlook | Indicators Community Development Projects Pakistan Yemen E&P in Pakistan supports 64 government primary In Yemen, various community development proj- schools with a total enrollment of about 3,000 ects were carried out in 2008 in Old Shabwah, children. Part of the support covers regular train- Habiliyan Astor, and Sudara in Block S2. ing courses for teachers and school infrastruc- ture development. All the schools are managed Based on a 2007 social impact assessment for by a training resource center established by E&P the OMV operation in Yemen, the recommended in Pakistan and district education departments. CSR structure was set up and actions in line with the findings of the studies were implemented. Model primary and middle schools were set up To combat the high incidence of waterborne dis- in local communities. Adult literacy classes are eases due to poor water quality, OMV distributed held for local communities and workers at the silver water filters to the local communities and Kadanwari plant. In partnership with a non- provided training on filter usage and mainte- governmental organization and district health nance, as well as basic hygiene issues. departments, E&P in Pakistan provides medical services focusing on mother and child health. OMV provided continuous electricity for the local health unit, school, and mosque through a solar Every day 36,000 liters of safe drinking water are generator. OMV also installed water pipes to distributed to communities in remote areas of supply water to the health clinic, mosque, and the Nara Desert. E&P in Pakistan initiated fores- teacher’s hostel. tation and green dunes projects with the district forest department, which are aimed at improving Thanks to these projects and to the intensive people’s living conditions through sustainable dialogue conducted with the local communities energy solutions. in Yemen, community relations have improved significantly. This has a positive effect on the Another project to promote traditional craft skills security situation in the communities. Regular is helping people increase their income potential. visits by security and CSR representatives assure ongoing stakeholder dialogue. Hepatitis B Project in Pakistan The Austrian Development Agency (ADA) and OMV funded Phase I of the hepatitis B vaccination project for Pakistan. The project was launched in 2006 and successfully completed in 2008, with over 9,000 women and children vaccinated. The total project budget was EUR 100,000. Activi- ties included an information campaign and hepa- titis prevention training in the Sindhi language. For this project OMV won the Austrian TRIGOS corporate social responsibility award in 2007.58 OMV Sustainability Report 2007/08 | Human Rights
  • 63. On a consulting visit to YemenIran because these communities will not beTo provide income-generation opportunities connected to the national electric grid untilfor families in Khuzestan province and Qeshm winter 2009-10Island, OMV in Iran implemented community c In 2008, OMV started renovating local schoolsdevelopment projects involving training in lo- to ensure water supply, improve hygieniccal crafts and the production of season’s greet- standards, repair or replace damaged andings cards. The sale in 2007 of 2,150 greetings missing infrastructure, etc.cards to OMV funded the purchase of 35 sew- c “Children’s packages” were delivered to 600ing machines for local women in early 2008. schoolchildren living near the OMV explora- tion blocks.The project continued in 2008. OMV refur-bished and equipped village schools near op-eration sites, and helped fund a documentaryabout disadvantaged women. The documen-tary was supported by the non-governmentalorganization Omid-e-Mehr.OMV also offers internships with the companyto members of Omid-e-Mehr.kurdistan Region of IraqPrior to beginning its seismic exploration activi-ties in the Kurdistan Region of Iraq, OMV carriedout a baseline study of local community needs.A community development program was set upbased on the findings.The first phase, which consisted of three parts, “Children’shas already been implemented: packages” werec During winter 2008-09, OMV supported delivered to 600 villages near the OMV sites with diesel kurdish pupils Human Rights | OMV Sustainability Report 2007/08 59
  • 64. Corporate Profile | In the Spotlight | Environment | Social Issues | Outlook | Indicators Works Council Projects As part of the “Equal Opportunities” project and women in the organization but also about started by the OMV Group Works Council in diversity. The survey went beyond questions 2001, in fall 2008 the Works Council conducted related to gender issues to also cover the issue its second employee survey since 2002 on equal of migration, a subject of particular importance opportunities at OMV in Austria. The survey to a company that is active in many parts of was held on the initiative of OMV Group Works the world. The inclusion of questions on issues Council Chairman Leopold Abraham and the related to multinationalism provided important OMV Women’s Representative, Works Council new data on how people from different cultures member Christine Asperger, with the support work together in a multinational organization. of the OMV Executive Board and the Human Resources management. Nearly all respondents noted improvements over the previous six years, with the exception of The goal of the recent survey was to evaluate two areas: opportunities for further training and changes at OMV over the past six years with family-friendly policies. regard to equal treatment of all the company’s employees in Austria. The Group Works Council will propose a package of measures based on the survey findings which, The anonymous questionnaire was distributed it is hoped, will eventually lead to an agreement to 3,400 OMV employees and returned by Sep- between the company and the Works Council tember 2008 with a response rate of 30.6%. Re- aimed at ensuring further improvement of work- spondents volunteered information that could ing conditions for all employees. not have been obtained in personal conversa- tions in the daily work environment. Not everyone may be aware that equal opportu- nity is not only about the equal treatment of men Challenges and Goals in 2009 The year 2009 will see further implementation c A tollgate process will be implemented at of the Human Rights management system. The G&P, where baseline studies and social im- focus will be on G&P and Petrom. At E&P, the pact assessments will become an important human rights analyses carried out in 2008 will be means to ensure in-depth analysis of rel- evaluated and identified gaps will be addressed. evant social and human rights issues in each In the next reporting period the difficult global project economic situation will present challenges. c Human rights training for security companies c In late 2009, roll-out at OMV and Petrom of working for G&P projects a human rights e-learning tool based on the c Development and implementation of country IPIECA Toolkit CSR strategies c Further human rights training courses at OMV c Social and environmental impact assessments and Petrom, organized in cooperation with the for the Nabucco gas pipeline project Ludwig Boltzmann Institute for Human Rights c Structured dialogues with local stakeholders in Vienna c International infrastructure projects will be c Development of a human rights action plan carried out in a socially responsible way ac- based on the 2008 gap analysis at E&P cording to international standards on social c For new engagements, the due diligence and and environmental sustainability such as tollgate process will be a basis for specific hu- those of the International Finance Corporation man rights goals and activities (IFC).60 OMV Sustainability Report 2007/08 | Human Rights
  • 65. Business EthicsAnti-Corruption Regulations ance officer. The majority of employee inquiries Information onOMV issued its new corporate directive on involve the following issues: the Extractivebusiness ethics in 2007. The directive covers c How to interact with officials, including how to Industries Trans-conflicts of interest, gifts, facilitation payments, determine if someone qualifies as an official parency Initiativethird-party assessment (checklists and an ap- c How to assess the value of received gifts, and (EITI):proval procedure), and a Group-wide compli- how to decide whether to return them or to www.ance structure. keep them, registering their receipt c Giving lectures at third-party events omv.Preparation of the directive began in 2006 with c Private contacts with officials, politicians, or comthe support of the Basel Institute on Gover- business partnersnance, headed by Mark Pieth. An extensive c Holding positions in associations and com-questionnaire was circulated to the business munitiessegments and units. Their feedback was integral c Approval and documentation proceduresto the drafting of the directive. Employees from c Selection and employment of agents, consul-across OMV participated in several workshops tants, and other third parties.held to discuss the proposed regulations. Thedirective was approved by the Executive Board Under the guidance of the Corporate Compliancein September 2007. Officer, divisional and local compliance officers provide advice, templates, and sample contracts,Petrom S.A. initiated its own Business Ethics especially to employees working in corruption-Directive in September 2008. A train-the-trainers prone business areas or regions.course took place in December 2008. Morecourses followed. The directive was approved In 2008, 5,000 copies of a folder explaining OMV’sand released in December 2008 and will be ef- business ethics principles, rules, and proceduresfective as of April 1, 2009. were distributed. An e-learning tool will become available in 2009.The OMV Corporate Compliance Officer activelysupported Petrom by providing advice and per- All business segments and units at OMV, exclud-forming training courses. The electronic tools ing Petrom, were analyzed for risks related todeveloped for OMV will be adapted for Petrom. corruption. The Basel Institute on Governance provided the questionnaires and evaluated theImplementation responses.All employees across OMV, excluding Petrom,have received information about OMV’s Business Actions TakenEthics Directive. OMV obliges its suppliers and contractors to abide by the OMV Code of Conduct. OMV hasBefore the directive became effective on May 1, terminated or decided not to pursue a number2008, intensive training courses were held in the of business relationships and activities due tothird quarter 2007 and the first quarter 2008 to attitudes or behavior found to be in violation ofensure that employees clearly understood the our ethical standards.new regulations. These courses targeted execu-tives, compliance officers, and white-collar work- For two OMV employees, non-compliance withers. So far 85% of employees have undergone our anti-corruption policy led to the terminationtraining. To increase that figure, and to train new of their employment in 2008.employees, courses continue to be offered.An anonymous, toll-free hotline was set up foremployees. As of late 2008 they can also requestinformation via a web-based form. In addition,inquiries can be directed to any OMV compli- Business Ethics | OMV Sustainability Report 2007/08 61
  • 66. Corporate Profile | In the Spotlight | Environment | Social Issues | Outlook | Indicators Community Relations Social SponsoringSocial sponsor- OMV’s international social and education was the theme of the OMV Move & Help proj-ing and commu- program, OMV Move & Help, targets socially ects. In 2008, the program drew attention tonity investment relevant issues and needs. The program works the environment and more efficient energy useprojects: closely with its three partner organizations, with the launch of the energy-saving campaignwww. Caritas, SOS Children’s Villages, and the UN “OMV Move & Help Mobilizes Against Unneces-omv. Environment Programme (UNEP). UNICEF was sary CO2.” OMV invested about EUR 800,000 incom an additional partner in 2007, when road safety OMV Move & Help projects in 2007-08. Community Investment OMV promotes development in the communities dren’s play areas, artesian wells, and thousands in which it operates through substantial invest- of trees and shrubs. ment in social projects. In the reporting period, numerous projects to improve infrastructure, Lunca Florilor Park in Bucharest, Central Park in education, health, and leisure were launched in Ro- Moinesti, Expo Park in Pitesti, and parks in two mania. For some of the larger projects, particularly other cities were redesigned in 2007-08 by young at Petrom Exploration and Production, systematic architects and landscape architects who had won needs assessments were carried out to guarantee a national competition for creative solutions. the targeted use of funds. Petrom volunteers, local communities, officials, and public figures who supported the project Community Investment in Romania participated in the planting activities. “Parks of the Future”: Green spaces are the lungs of a city. Petrom’s “Parks of the Future” Environmental Awareness: Global warming and“Parks of the project has already turned five Romanian urban the depletion of the earth’s natural resources areFuture” project, parks into places of fantasy and education, com- an undisputed reality. Petrom is the first privateRomania plete with alternative energy equipment, chil- company in Romania that has understood the importance of making the public aware of the re- sponsible use of resources. It decided to act now, before it is too late. Switching off your computer overnight, turning the water off when it is not in use, disconnecting the audio system when leaving home, not tak- ing plastic bags from the supermarket but using paper bags, turning the lights off when leaving a room: These are all small gestures, seemingly un- important, but they could lead to positive changes for the environment, natural resources, and even your own life. In an education and public awareness campaign the most important thing is setting a personal ex- ample. Therefore almost 3,000 Petrom employees took part in such campaigns in 2008. They col- lected around 20 tonnes of paper to be recycled, planted more than 8,700 trees, and contributed to the Romanian Ministry of the Environment and Sustainable Development’s “Great House-62 OMV Sustainability Report 2007/08 | Community Relations
  • 67. Cleaning” campaign with over 100 tonnes of old Houses for Flood Victims: Thousands of peopleequipment from the Ploiesti storage. in northern Romania were left without shelter following floods in summer 2008. Once again“Andrei” TV Spot: Petrom’s spot is a simple story Petrom decided to help people in need. Together The award-that sends a powerful signal about the conse- with our partners, Habitat for Humanity and the winning “Andrei”quences of wasting resources. It was the only Romanian government, we built 110 homes TV spot: www.attitude spot from Central and Eastern Europe for 500 beneficiaries in the affected families in petrom.comto receive a Responsibility Award at the World Doljesti, Neamt County.Congress of the International Advertising As-sociation in 2008. “Romania Takes Roots”: Petrom became involved in “Romania Takes Roots,” a refores-The “Andrei” spot had an impressive impact on tation project that will be carried out over fivethe public: 51% of the targeted population knew years in partnership with Realitatea TV, Rom-about the spot; 82% of those who saw it under- silva, and the organization Mai Mult Verde.stood the message; 25.6% declared that theywould change their habits; 20.6% became aware Three million trees will be planted in Suceava,of the importance of a change in attitude; and Bacau, and Neamt counties. Petrom welcomed22.4% admitted that the waste of resources is a the “Romania Takes Roots” reforestation initia-problem that exists today. tive and immediately made a commitment to invest over EUR 1 million to reduce the effect ofFollowing the integrated “Resources for the Fu- future floods, stabilize the soil, and enhance airture” campaign, which centered on the “Andrei” quality. Petrom’s contribution in 2008 was EURspot, Petrom was designated the most respon- 200,000.sible Romanian company by bloggers (cited by45% of respondents). Disaster Preparedness: Petrom and the Roma- Romanian disas- nian Red Cross share a concern for the future ter preparedness“Building for the Future” with Habitat for Hu- and a desire to improve peoples’ lives. Since projects: www.manity Romania: Petrom was actively involved 2007 we have been jointly implementing several petrom.comin the largest volunteer project in Europe, which important social projects within the Nationalaimed at helping families without a decent home Campaign for Preparing Against Disasters.build one through their own efforts. It was carriedout in partnership with the non-profit organization Gas Fund: Petrom signed a protocol regulat- Petrom contribut-Habitat for Humanity. ing its participation in a government social ed EuR 21.5 mn fund to grant subsidies to low-income families to the gas sub-Under the project, 650 European volunteers and single households that use natural gas for sidy fundbuilt 27 homes in Radauti for needy families. household heating.Each house symbolically represents a Euro-pean Union member state. Petrom financially Petrom contributed RON 80 million (EUR 21.5supported the construction of the “Romania million) in voluntary monthly installments inHouse,” but also became involved on a per- 2008. The Fund’s supply method is sponsoring.sonal level because employees worked together The transparency of the distribution process iswith the beneficiaries of the new houses. guaranteed by the Romanian Ministry of Labor, Family, and Social Protection in accordanceClose relationships developed not only between with government ordinances No. 3 /2003 andthe Petrom employees and the future owners, No. 14/2008 (Art. 8).but also with the volunteers involved in theproject. Trees and shrubs were planted in the School Renovation Project: For the 2008 Team-yards of all 27 houses. Building Workshop, Petrom Gas selected a social project to renovate a school in the village of Partizani in a deprived area in the Danube Delta. Community Relations | OMV Sustainability Report 2007/08 63
  • 68. Corporate Profile | In the Spotlight | Environment | Social Issues | Outlook | Indicators During the five-day project, 34 Petrom Gas par- Community Investment in Bulgaria ticipants proved they could achieve a common “Business Hour” Initiative: Since summer 2008, goal as a team within a given timeframe, even in the Bulgarian Business Leaders Forum (BBLF) a field in which they were not particularly skilled and the Bulgarian Center of Training Firms have or experienced. been organizing “Business Hours” as a bridge between school and business. OMV Bulgaria isA school renova- one of the many large companies that partici-tion project in pate.Partizani in 2008 Professionals from these companies share their real-world experience with students. They talk about their own golden rules and innovations, as well as business ethics, labor law, and taxes, and offer career advice. Both the companies and the students benefit from the discussion of socially responsible business practices and the exchange of ideas and information at local and at interna- tional level. P.E.T.R.A. Sponsorship: OMV in Bulgaria has undertaken sponsorship of P.E.T.R.A. activities in the country, with the support of the Gas and Power country manager for Bulgaria. P.E.T.R.A. (Program for Educational Trainings and Regional Assistance) is an Austrian non- profit organization that seeks to improve young people’s job prospects through education, including foreign-language training for orphans and children from minorities and poor families. The team replaced the floors in a classroom and Plans include setting up a database from which the kindergarten (the concrete bed was done sponsor companies can choose future trainees by a construction firm), laid the parquet floor, and employees. refurbished the rooms, and purchased essential items. Public Affairs As an internationally active group that is com- of the framework that impacts on our company. mitted to European values, OMV conducts public In consideration of our stakeholders’ expecta- affairs activities at a European and a national tions we provide input to an environment that is level. We participate actively in the development favorable to our business and the economy. Crisis Communications OMV places high value on professional crisis gency services must be managed effectively. To communications. The goal is to provide clear, that end, simulation drills are held in the busi- in-depth information to the media and the public ness segments and at corporate level several as well as to our employees. Communication times a year. between the crisis management team and emer-64 OMV Sustainability Report 2007/08 | Community Relations
  • 69. “Brückenschlag” ProgramThe Austrian CSR initiative “respACT – AustrianBusiness Council for Sustainable Development”helped launch the “Brückenschlag” (BuildingBridges) program in eastern Austria in 2005.The program is designed to give company execu-tives an opportunity to work for five days in asocial institution of their choice. There they testtheir own social skills and limits in an unfamiliarenvironment, where they may be confronted withchallenging situations. In addition to learningabout the structures, values, and culture of socialwork by observing professionals in the field, theymeet people who have been marginalized as a re-sult of poverty, illness, disability, or social factors.Participants hone their communication and other to take part in “Brückenschlag” as soon as it was Hilmar kroat-personal skills, such as creativity, flexibility, set up. Thirteen OMV employees successfully Reder, Seniorauthenticity, tolerance, and the ability to deal with completed the program in 2007-08. Vice President,conflict. OMV encouraged its senior employees OMV CA&S, at the “Brücken- schlag” program:Filling Station Partners www.bruecken schlag.orgTraining milk and fruit juice, are already available at VIVAOMV’s filling station partners undergo general shops in Austria, with those in other countriestheoretical and practice training before they be- soon to follow suit.gin operating the filling station. HSEQ topics arean integral part of the training, which is provided The chain’s sense of responsibility towards itsat a special training filling station. During their customers is reflected in a ban on gambling ma-training, the new filling station partners become chines and the sale of pornographic products.familiar with the basic HSEQ documents, theHandbook and the Alert Plan.VIVA ShopsThe VIVA shops at OMV filling stations offer aclearly defined range of over 1,500 everydayitems. The “VIVA Pure” line features fresh fruitand vegetables. “The Conscious Alternative” isa line of low-fat, low-sugar products. VIVA shopsin Austria also carry a line of organic products,wholemeal products, and soy products, includ-ing fresh baked goods and dairy products. Thisline will be market-tested in Germany in 2009.VIVA cares about the conditions under whichthe products it sells are produced and traded.A number of FAIRTRADE products, including Community Relations | OMV Sustainability Report 2007/08 65
  • 70. OUTLOOK“What’s the best way to prevent stagnation?“ Marie Carlier, Product Manager
  • 71. “Staying curious.” Kai Siefert, Market Research, G&P, OMV
  • 72. Corporate Profile | In the Spotlight | Environment | Social Issues | Outlook | Indicators Future Energies and Innovation Research and Development OMV invests in research and development (R&D) tise. R&D expenditure in the Group totaled EUR for the benefit of our customers, the environ- 15 million in 2007 and EUR 14 million in 2008. ment, and our business. Extensive R&D coop- eration and close collaboration with the OMV Targeted R&D activities support the business Future Energy Fund enable OMV to tap into a segments in developing their core competencies huge potential for technology and knowledge and achieving high-quality standards for OMV transfer. OMV works together with universities, products and services. In addition to the tradi- non-university research institutes, and numerous tional issues in the areas of oil and gas produc- industrial partners, and is an active member of tion, processing, and products for our custom- diverse technology networks. In expanding its ers, renewable energy is a focus of research knowledge base, OMV places particular empha- and innovation activities for all the business sis on leveraging synergies with existing exper- segments. OMV Future Energy FundMore on the ChallengesOMV Future En- As an energy group OMV must respond to theergy Fund: www. challenges of rising energy demand, finite fos-omvfutureenergy sil fuel reserves, and climate change. OMV isfund.com therefore committed to identifying opportunities in the renewable energy field which can be inte- grated into its core business activities. The OMV Future Energy Fund has an indepen- dent Advisory Board made up of four interna- Mission tionally renowned scientists and a representative The OMV Future Energy Fund was established from each of the three business segments. The in 2006 with startup capital of EUR 100 mil- Advisory Board confers with the OMV Executive lion. Its goal is to identify and provide funding Board before deciding on the individual projects. for projects in the areas of renewable energy, The Advisory Board’s voting procedure is by reducing greenhouse gas (GHG) emissions, simple majority, which promotes competition and improving energy efficiency. With the aid between the projects submitted and ensures that of this funding, OMV aims to generate a total scientific standards are maintained. investment volume of EUR 500 million in the three business segments. OMV will allocate the Projects available funds as start-up funding for research Since the Future Energy Fund was established, and pilot projects to help them over the feasibil- its Advisory Board has approved 24 projects ity threshold. in Austria and Romania. The total investment volume for these projects is EUR 31.2 million, The Future Energy Fund pools and supports re- with the Fund providing EUR 10.5 million. OMV’s newable energy projects that are directly related three business segments are investing EUR to our core business. In addition, it is dedicated 9.9 million, with the remaining EUR 10.8 mil- to exploring and developing future energy forms lion coming from external project partners. The with high-growth potential in related areas. The Fund’s current projects focus on: Fund also supports a large number of projects for c Geothermal energy foreign holdings, such as Petrom, where a work- c Carbon capture and storage ing group was set up on the model of the Future c Solar energy Energy Fund. It searches for suitable projects, c Second-generation alternative fuels possible partners and funding sources, and sup- c Biogas ports implementation of the projects selected. c Energy efficiency.68 OMV Sustainability Report 2007/08 | Future Energies and Innovation
  • 73. Franz kafka preparing an oil sample for a viscosimeter in a refinery labExploration and ProductionFossil Energy To exploit the potential of geothermal energy,The trend in exploration is inevitably towards old oil and gas wells in Austria and Romaniacomplex deposits that are difficult to develop. that would otherwise be abandoned are kept inExamples include the complicated structures in continued use. A project in the Exploration andthe extremely deep Vienna Basin, fractured res- Production (E&P) business segment is evaluatingervoirs in the limestone alpine (e.g. in the Vienna the potential for using geothermal energy in theBasin) or crystalline basement (e.g. in Yemen) of northern and central Vienna Basin to generatesedimentary basins, exploration areas in deep heat and electricity. The aim is to design specificwater (e.g. in Egypt and Australia) or reservoirs projects. Work includes an update on the knownwith very low permeability. Targeted research geothermal reserves, the existing hydrocarbonprojects in the fields of geology, petrophys- wells and their suitability for future geothermalics, and geophysics helped build the necessary use, and additional opportunities for hydro-experience. In reservoir management, a range of thermal projects. At least two concrete projecttechnology projects is also aimed at increasing options to be decided on and developed are cur-yield not only in reservoirs that are already pro- rently in preparation.ducing but also in the complex ones mentionedabove. To achieve this, researchers explored the In 2008, OMV, with the support of the Futurepossibilities of injecting various gases or poly- Energy Fund, launched a pilot project to convertmers into the reservoirs in the laboratory and geothermal energy into power for communitywith mathematical modeling (assisted history use. It involves installing a heat exchanger inmatching). an old well for converting geothermal energy. The energy obtained is supplied to customersFuture Energies in Lower Austria for heating in winter and airThe following projects are currently supported conditioning in summer. The project is aimed atby the OMV Future Energy Fund: optimizing the energy yield from depleted wells.Geothermal Power: Boreholes enable geother- Carbon Capture and Storage:mal energy to be used for heating purposes and Another research focus is the capture and stor-for electricity generation. The greatest obstacles age of CO2 during the production of oil and gas.in using geothermal power are the high cost of With the support of the Future Energy Fund, E&Pdrilling wells and the risk of striking layers where is developing a process for separating off thethe water temperature is too low. carbon dioxide released during oil and gas pro- duction, and injecting it into the reservoir. Future Energies and Innovation | OMV Sustainability Report 2007/08 69
  • 74. Corporate Profile | In the Spotlight | Environment | Social Issues | Outlook | Indicators Gas and Power Fossil Energy A pilot project in the Gas and Power (G&P) busi- In line with OMV’s strategic goal of diversifying ness segment aims to demonstrate the economic its fuel portfolio, as well as the search for oppor- feasibility of the production of biogas and its tunities to achieve a further reduction in emis- refinement to natural gas quality for feeding into sions, a few years ago compressed natural gas the natural gas network. A broad-based consor- (CNG) was introduced as an OMV fuel. Develop- tium for covering the entire process chain should ing the network of natural gas filling stations will help this innovative technology gain acceptance. create the infrastructure required for distribution. The biogas that is added mixes with the natural gas and is supplied to the customer on a cost Future Energies basis, i.e. virtually. The following projects are currently supported by the OMV Future Energy Fund: The purpose of another biogas project is to evaluate the biogas potential in Romania. A study Biogas: will examine questions concerning types of raw By adding biogas (biomethane), which has high material and the possibilities for providing biogas potential for reducing GHG emissions, natural in Romania. Assuming conditions are suitable, aA zero-emission gas becomes an even more attractive product in business model for biogas in Romania can thenpower plant environmental terms. be developed based on the findings. Zero-Emission Power Plant: In a zero-emission power plant (ZEP), the CO2 produced during electricity generation is trans- ported to a suitable reservoir and injected into strata located deep below the earth’s surface. As a result, electricity can be generated almost with- out any CO2 emissions (CO2 reduced by 80-90%). G&P submitted a project to the OMV for the Future Energy Fund which would explore pos- sible technologies for capturing, transporting, and storing CO2. It also examines the economic and legal aspects of a potential pilot power plant project, including the location.70 OMV Sustainability Report 2007/08 | Future Energies and Innovation
  • 75. Refining and MarketingFossil Energy way for the medium-term market launch of theFuels: Market-oriented development work fo- alternative fuel green hydrogen. Its aim is distrib-cuses on adding biofuels to gasoline and diesel. uted hydrogen generation at filling stations onEthanol is already being added to gasoline and the basis of green electricity. A great advantagebiodiesel to diesel in quantities of up to 5% v/v in is that electricity can be transported much moremany countries. Austria and Germany have been efficiently than hydrogen.blending diesel with 7% v/v since the beginningof 2009, thereby achieving the highest substitu- A prototype for the green hydrogen filling stationtion rates in Europe. The main work done in this of the future was built on the premises of HyCen-area was determining and evaluating all issues tA (Hydrogen Center Austria) in Graz, Austria, torelevant to quality in the European and national enable testing of cogeneration (electrolysis withproduct standards regarding the addition of biofu- green electricity) and the use of green hydrogen,els, ranging from production to the consumer. oxygen, and heat in practice.Other work in the field centered on the standard-ization and market preparation of E85, the ethanol The hydrogenblend for flexible-fuel vehicles. Various research filling station inprojects carried out with universities and partners Grazin industry made an important contribution toproduct launches.Other research projects dealt with evaluatingfurther possible biocomponents for blending withgasoline and diesel fuels, and the fuel require-ments for future engine and vehicle technologies.The range here includes high-quality biogeniccomponents with combustion properties superiorto conventional fuels, and hydrogen.Future EnergiesThe following projects are currently supportedby the OMV Future Energy Fund:Second-generation Bioethanol: A project in theRefining and Marketing (R&M) business seg-ment is aimed at developing a biotechnologicalprocess for producing ethanol from lignocel-lulose (e.g. straw or wood). Expectations arethat between 15% and 30% of the raw materialcan be converted into ethanol. Suitable ways ofrecycling the residue are under development,such as producing biogas, animal feed, or plantnutrients. This project is being coordinated byPetrom and implemented in cooperation withuniversities in Romania.Hydrogen Filling Station and Research Facility inGraz: This R&M project is intended to pave the Future Energies and Innovation | OMV Sustainability Report 2007/08 71
  • 76. INDICATORS AND ASSURANCES“ What do you consider is the key to good reporting?” Michael Buhl, Management Board, Vienna Stock Exchange
  • 77. “ Transparency.” Angelika Altendorfer-Zwerenz, Investor Relations, OMV
  • 78. Corporate Profile | In the Spotlight | Environment | Social Issues | Outlook | Indicators Performance Indicators EnvironmentIndicators for the Environmental figures1 2008 2007 2006 2005 2004E&P, Refining, andGas operating busi- EN3 Energy consumption PJ 165.4 159.5 154.5 83.6 81.5ness segments: EN8 Water consumption mn m3 77 76 89 102 184 www. Thereof groundwater mn m3 26.9 25.3 27.5 20.5 19.5 omv. Emissions com EN16 EN16 GHG (direct, Scope 1) GHG (indirect, Scope 3)2 mn t CO2 equivalent mn t CO2 equivalent/toe 12.0 105 12.1 102 14.1 n.r. 7.2 n.r. 7.8 n.r. EN16 CO2 mn t 11.1 10.8 11.6 6.2 6.7 EN16 CH4 3 t 27,136 39,880 95,285 37,426 44,052 EN16 N2O t 1,036 1,440 1,384 442 907 EN20 SO2 3 t 9,039 10,290 13,247 5,861 6,484 EN20 NOx 3 t 14,890 13,759 13,439 7,264 7,819 NM-VOC 3 t 10,553 9,707 6,028 1,649 2,519 Particulate emissions t 2,492 2,944 2,369 183 293 EN21 Waste water discharges Chemical Oxygen Demand t 1,890 2,741 2,939 240 630 Hydrocarbons t 84.0 62.2 72.8 3.3 2.4 Total nitrogen t 372 437 349 441 1,546 EN22 Waste 4 Non-hazardous production waste t 216,681 75,261 57,456 42,537 39,244 Hazardous production waste t 22,714 21,004 19,835 8,174 9,058 Waste oil t 439 322 262 296 495 Total production waste t 239,834 96,587 77,552 51,007 48,857 EN23 Spills number 1,701 884 2,782 1,353 43 n.r. = not reported electricity and heat, account for about 5% of total energy consumption 1 Environmental figures including Petrom as of 2006. Kazakhstan and are therefore not assessed regularly. and Petrom Marketing not included, since HSE reporting systems 3 Increases due to adapted estimation and calculation methodologies are still under development. in refineries (NM-VOC, 2007) and E&P (2008). 2 Scope 2: Indirect GHG emissions from purchased energy, such as 4 Production waste of Petrom E&P included as of 2008. Safety lA7 Safety figures1 2008 2007 2006 2005 2004 Own employees Fatalities number 7 3 6 3 0 Lost workday injuries number 61 40 73 72 38 Fatality rate (FAR) per 100 mn working hours 9.39 4.54 7.45 3.49 0.00 Lost-time injury rate (LTIR) per million working hours 0.91 0.65 0.98 0.87 3.76 Lost-time injury severity (LTIS) per million working hours 57.7 21.3 22.7 10.8 106 Total recordable injury rate (TRIR) per million working hours 2.17 n.r. n.r. n.r. n.r. Commuting accidents number 25 n.r. n.r. n.r. n.r. Contractors2 Fatalities number 9 8 8 8 2 Lost workday injuries number 77 100 68 124 41 Fatality rate (FAR) per 100 mn working hours 9.64 9.22 14.31 15.42 12.07 Lost-time injury rate (LTIR) per million working hours 0.92 1.24 1.36 2.54 2.59 Lost-time injury severity (LTIS) per million working hours 31.9 35.2 41.1 18.0 46.8 Total recordable injury rate (TRIR) per million working hours 1.73 n.r. n.r. n.r. n.r. Commuting accidents number 12 n.r. n.r. n.r. n.r. n.r. = not reported and integration of contractor companies led to shifting of incident 1 Safety figures including Petrom as of 2005. numbers between employees and contractors. 2 As of 2007, partners and employees of filling stations are included in the scope of safety statistics. Between 2006 and 2008, demergers74 OMV Sustainability Report 2007/08 | Performance Indicators
  • 79. lA 1 Total workforce by employment type and regionWorkforce structure 2008 (as of november 30, 2008)Employees Europe without Middle East/ Rest of the Austria Total1 Austria1 Africa WorldTotal 35,055 883 492 3,790 40,220StatusWhite-collar workers 11,983 589 306 2,819 15,697Blue-collar workers 23,072 294 186 971 24,523Total 35,055 883 492 3,790 40,220Employment typeFull time 34,992 881 473 3,646 39,992Part time 63 2 19 144 228Total 35,055 883 492 3,790 40,220Workforce structure 2007Employees Europe without Middle East/ Rest of the Austria Total1 Austria1 Africa WorldTotal 27,835 833 432 3,691 32,791StatusWhite-collar workers 10,062 546 279 2,673 13,560Blue-collar workers 17,773 287 153 1,018 19,231Total 27,835 833 432 3,691 32,791Employment typeFull time 27,796 833 413 3,563 32,605Part time 39 0 19 128 186Total 27,835 833 432 3,691 32,7911 Only including Petrom S.A. (foreign company branches where Petrom is a shareholder: data n.a.).lA 2 net employment creation and average turnover segmented by region2008 Europe without Middle East/ Rest of the Austria Total Austria3 Africa WorldNew recruitments1 10,314 159 107 616 11,196Thereof new jobs created 365 40 66 183 654Contract terminations2 3,128 90 43 341 3,602Total sum of employees 35,055 883 492 3,790 40,2201 Includes 9,774 employees taken over from Petrom Service.2 Included are Social Plan termination and retirements.3 Petrom S.A.: out of 3,013 terminations 2,130 employees benefited from the Social Plan.2007 Europe without Middle East/ Rest of the Austria Total Austria2 Africa WorldNew recruitments 597 131 134 447 1,309Thereof new jobs created 365 51 92 205 713Contract terminations 1 7,005 60 105 277 7,447Total sum of employees 27,835 833 432 3,691 32,7911 Included are social plan termination and retirements.2 Petrom S.A.: out of 6,886 terminations 5,876 employees benefited from the Social Plan.Breakdown of workforce by region into different categories (including temporary agency workers). Some companies are notincluded (e.g. OMV Exploration and Production Ltd, Petrom Exploration and Production Ltd). For this reason the figures are notexactly comparable with the figures in the Annual Report 2007 and the Annual Report 2008. Performance Indicators | OMV Sustainability Report 2007/08 75
  • 80. Corporate Profile | In the Spotlight | Environment | Social Issues | Outlook | Indicators lA 10 Average hours of training divided into categories Trainings and Education 2008 Trainings and Education 2007 Europe Middle Rest Total Europe Middle Rest Total excl. East/ of the excl. East/ of the Austria1 Africa World Austria1 Africa World Senior management Number of employees 101 91 6 198 84 61 4 149 Money spent on training per category 724,616 61,785 9,976 796,377 708,721 90,115 4,420 803,256 Hours per category 3,970 1,741 280 5,991 3,506 1,032 102 4,640 Middle management Number of employees 934 118 32 1,084 724 218 16 958 Money spent on training per category 1,597,638 150,553 80,050 1,828,241 1,819,736 192,152 25,253 2,037,141 Hours per category 108,908 2,502 1,175 112,584 94,417 3,440 792 98,649 Professional Number of employees 6,264 214 167 6,645 5,992 216 36 6,244 Money spent on training per category 2,596,303 300,430 184,640 3,081,373 2,337,752 186,244 83,445 2,607,441 Hours per category 221,638 7,281 21,258 250,177 292,385 4,464 1,202 298,051 Technical assistance Number of employees 664 222 70 956 2,865 399 61 3,325 Money spent on training per category 245,323 242,101 120,722 608,146 196,102 225,686 128,154 549,942 Hours per category 9,162 5,906 3,372 18,440 41,428 6,090 2,034 49,552 Administrative Number of employees 448 301 66 815 905 225 41 1,171 Money spent on training per category 193,570 39,974 63,019 296,563 156,612 34,594 43,402 234,608 Hours per category 17,833 6,247 1,383 25,463 24,248 3,696 1,118 29,062 Facility management/Maintenance Number of employees 294 21 13 328 10,167 31 7 10,205 Money spent on training per category 71,577 147 22,500 94,224 139,427 1,727 18,151 159,305 Hours per category 4,060 165 786 5,011 145,235 568 354 146,157 Sub-Total excluding Austria Number of employees 10,026 22,052 Money spent on training 6,707,794 6,404,205 Total hours of training 417,665 626,111 Austria1 Number of employees 2,598 2,836 Money spent on training 5,195,596 4,944,270 Hours of training 114,438 148,123 Grand Total Number of employees 12,624 24,888 Money spent on training per category 11,903,390 11,348,475 Hours per category 532,103 774,234 1 Data for Austria not available by category76 OMV Sustainability Report 2007/08 | Performance Indicators
  • 81. GRI Content IndexProfile DisclosuresG3 Code Description Status unGC links Commentary1. Strategy and Analysis 4.3 The organization1.1 Statement from the most senior decision-maker of SR pp. 2-3 has a Supervisory l 4 the organization AR pp. 9-11 Board.1.2 Description of key impacts, risks, and opportunities l 4 AR pp. 60-63; SR p. 32; /risks.html2. Organizational Profile 4.10 Responsibility for evaluating the perfor-2.1 Name of the organization l SR back cover; AR p. 33 mance of the highest2.2 Primary brands, products, and/or services l 4 SR p. 11; AR p. 20; /regional.html governance body does2.3 Operational structure of the organization l 4 SR p. 10; AR pp. 131-34 not lie with the report-2.4 Location of organization’s headquarters l 4 AR p. 17 ing organization, ac- cording to the Austrian2.5 Number of countries where the organization operates l 4 AR pp. 40, 44, 48, 138 Stock Corporation Act.2.6 Nature of ownership and legal form l 4 AR p. 322.7 Markets served l 4 AR pp. 16-172.8 Scale of the reporting organization l 4 AR pp. 52, 58, 131-372.9 Significant changes during the reporting period AR pp. 52-53 l 4 regarding size, structure, or ownership2.10 Awards received in the reporting period l 4 /awards.html3. Report Parameters www.3.1 Reporting period for information provided l SR front flap omv.3.23.3 Date of most recent previous report Reporting cycle l l 4 4 SR front flap SR front flap com3.4 Contact point for questions regarding the report or its contents l 4 SR Impressum, back flap links to indicators on the OMV web-3.5 Process for defining report content l 4 SR front flap; /about.html site begin:3.6 Boundary of the report l 4 SR front flap; /about.html http://www.omv.3.7 Limitations on the scope or boundary of the report l 4 SR front flap; /about.html com/sustainability3.8 Basis for reporting on joint ventures, subsidiaries, etc. l SR front flap; /about.html 2007-08_en/3.9 Data measurement techniques and the bases of calculations l 4 SR front flap The rest of each3.10 Re-statements of information l 4 SR front flap specific address appears in the table3.11 Significant changes from previous reporting periods l 4 SR front flap in green3.12 GRI Content Index l 4 SR pp. 77-793.13 External assurance l 4 SR pp. 81, 82-844. Governance, Commitments, and Engagement4.1 Corporate governance/Management structure of AR pp. 24-29 l 4 the organization4.2 Independency of the highest governance body l 4 AR pp. 24-294.3 Structure of the governance body in organizations n.a. 4 that have a unitary board structure4.4 Mechanisms for shareholders and employees to SR pp. 46-47, 60; AR p. 29 l 4 provide recommendations4.5 Linkage between compensation for members of the highest AR pp. 25, 28, 124, 130 l 4 governance body and the organization’s performance4.6 Mechanisms to avoid conflicts of interest l 4 SR pp. 46-47, 61; AR pp. 26-27 legend:4.7 Expertise of the members of the highest governance body AR pp. 26-27 EC1 key Performance for guiding the organization’s strategy on economic, l 4 Indicators environmental, and social topics EC5 Additional Indicators4.8 Mission statements, codes of conduct, SR pp. 12-15 l 4 l Fully reported sustainability principles l Partly reported4.9 Procedures for overseeing the organization’s l SR p. 10 4 m Not reported sustainability management /sustainability.html4.10 Evaluation of the highest governance body’s own n.a. Not applicable n.a. 4 performance, particularly with respect to sustainability 4 Complies with4.11 Precautionary approach addressed by the organization SR p. 68 UN Global Compact l 4 SR Sustainability AR pp. 30, 60, 113-144.12 Externally developed economic, environmental, SR p. 14 Report 2007/08 l 4 and social charters, principles, or other initiatives /memberships.html AR Annual Report 2008 GRI Content Index | OMV Sustainability Report 2007/08 77
  • 82. Corporate Profile | In the Spotlight | Environment | Social Issues | Outlook | IndicatorsCommentary G3 Code Description Status unGC links 4.13 Memberships in associations and advocacy organizations l 4 /memberships.htmlDMA SO At OMV this 4.14 List of stakeholder groups engaged by the organization l 4 SR pp. 16-17; /dialogue.htmlis not a clearly demar-cated responsibility 4.15 Basis for identification and selection of SR pp. 16-17 l 4(department or staff stakeholders with whom to engage /about.html, /dialogue.htmlfunction). Management 4.16 Approaches to stakeholder engagement l 4 SR pp. 16-17; /dialogue.htmlof these aspects falls 4.17 Key topics and concerns of stakeholders SR pp. 16-17, 20-25under the responsibil- l 4 /dialogue.html, /pspotlight.htmlity of various depart- Disclosure on Management Approachments. DMA EC Disclosure on Management Approach – Economic l 4 /economy_approach.htmlDMA PR At OMV this DMA En Disclosures on Management Approach – Environmental l 4 SR p. 28is not a clearly demar- DMA lA Disclosure on Management Approach – SR p. 44cated responsibility l 4 Labor Practices and Decent Work(department or staff DMA HR Disclosure on Management Approach – Human Rights l 4 SR p. 56function). Management DMA SO Disclosure on Management Approach – Society l 4 SR pp. 56, 61, 62-64of these aspects fallsunder the responsibil- DMA PR Disclosure on Management Approach – Product Responsibility l 4 SR pp. 48, 50, 52, 61; /crisis.htmlity of various depart-ments. Performance Indicators EconomicEn1 The data refer to EC1 Direct economic value generated and distributed AR pp. 52-54, 57-58the amounts of oil and l /indicators_economy.htmlgas produced and soldsince these products EC2 Financial implications and other risks and SR pp. 32-34 l 4 opportunities due to climate changemake up the compa-ny’s key material flows. EC3 Coverage of the organization’s defined benefit plan obligations l AR pp. 58, 81-82, 86, 101 EC4 Significant financial assistance received from the government l /indicators_economy.htmlEn2 0 percent EC6 Policy and practices of spending on locally-based suppliers /regional.html l /indicators_economy.html EC7 Procedures for local hiring l 4 SR p. 45; /regional.html EC8 Services provided primarily for public benefit l SR pp. 58-59, 62-65 Environmental En1 Materials used by weight or volume l 4 AR pp. 41, 43, 46 En2 Percentage of materials used that are recycled input materials l 4 En3 Direct energy consumption by primary energy source l 4 SR pp. 29, 74; /energy.html En4 Indirect energy consumption by primary source l 4 SR p. 29; /energy.html EN5 Energy saved due to conservation and efficiency SR p. 29 l 4 improvements /energy.html, /saving.html EN6 Initiatives to provide energy-efficient and SR pp. 29, 68-71 l 4 renewable energy-based products and services /energy.html En8 Total water withdrawal by source SR pp. 35, 74 l 4 /indicators_environment.html EN10 Percentage and total volume of water recycled and reused l 4 SR p. 35 En11 Location and size of land owned, leased or managed SR pp. 37-38 l 4 in protected areas /biodiversity.html www. En12 Description of significant impacts of activities, products, and services on biodiversity in protected areas l 4 SR pp. 37-38 /biodiversity.html omv. EN14 Strategies and current actions for managing SR pp. 37-38 com En16 impacts on biodiversity Total direct and indirect greenhouse gas emissions l 4 /biodiversity.html SR pp. 30-31, 74 l 4links to indicators by weight /indicators_environment.htmlon the OMV web- En17 Other relevant indirect greenhouse gas emissions SR p. 31 l 4site begin: by weight /indicators_environment.htmlhttp://www.omv. EN18 Initiatives to reduce greenhouse gas emissions and SR pp. 30-31, 34 l 4com/sustainability reductions achieved2007-08_en/ En19 Emissions of ozone-depleting substances by weight l 4 SR p. 37The rest of each En20 NOx, SOx, and other significant air emissions by SR pp. 37, 74 l 4specific address type and weight /indicators_environment.htmlappears in the table En21 Total water discharge by quality and destination SR pp. 35, 74 l 4in green /indicators_environment.html78 OMV Sustainability Report 2007/08 | GRI Content Index
  • 83. G3 Code Description Status unGC links CommentaryEn22 Total weight of waste by type and disposal method SR p. 35, 74 l 4 En27 The company’s /indicators_environment.html main products, oil,En23 Total number and volume of significant spills l 4 SR pp. 36-37; /spills.html gas, and electricity,EN24 Weight of waste deemed hazardous l 4 SR p. 35; /waste.html are delivered withoutEn26 Initiatives to mitigate environmental impacts of SR pp. 39, 68-71 packaging materials. l 4 products and services, and extent of impact mitigation /fuels.htmlEn27 Packaging materials that are reclaimed n.a. 4 lA13En28 Fines for non-compliance with environmental regulations l 4 SR p. 40; /compliance.html Distribution by gender and age is fully report-EN29 Significant environmental impacts of transport l 4 SR p. 38 ed for the ExecutiveEN30 Total environmental protection expenditures and l SR p. 40 Board and the Super- 4 investments by type visory Board, and for OMV employees inlabor Practices Austria and at Petrom.lA1 Total workforce by employment type, employment SR p. 75 For technical reasons l contract, and region /indicators_employees.html more detailed informa-lA2 Rate of employee turnover l 4 SR p. 75 tion cannot be sup-lA4 Percentage of employees covered by collective SR p. 46; AR p. 101 plied at this time. OMV l 4 will seek to provide bargaining agreements medium-term report-lA5 Minimum notice period(s) regarding significant SR pp. 59, 65 l 4 ing on gender and operational changes age distribution in alllA7 Rates of injury, occupational diseases, lost days, SR pp. 51, 74 l 4 countries where it has and absenteeism, and work-related fatalities /indicators_safety.html operations. In accor-lA8 Risk-control programs in place to assist workforce SR pp. 49, 53 dance with the law, no l 4 members regarding serious diseases data have been or willlA10 Average hours of training per year per employee SR pp. 44-46, 76 be collected on minor- l by employee category ity groups.LA11 Programs for skills management and lifelong learning l SR pp. 44-46; /careers.html lA13 Composition of governance bodies and breakdown AR p. 26 lA14 This information l 4 cannot be reported for of employees in terms of diversity /indicators_employees.html reasons of confiden-lA14 Ratio of basic salary of men to women by employee category m 4 tiality.HR1 Investment agreements that include human rights clauses l 4 SR pp. 25, 56HR2 Suppliers and contractors that have undergone l SR pp. 56-57 4 screening on human rights /procurement.htmlHR3 Employee training on policies and procedures SR pp. 57-58 l 4 concerning aspects of human rightsHR4 Total number of incidents of discrimination and actions taken l 4 SR pp. 45, 46, 60HR5 Right to exercise freedom of association and l SR p. 47 4 collective bargaining /social_security.htmlHR6 Operations identified as having significant risk for l SR pp. 56, 84 4 incidents of child labor /procurement.htmlHR7 Operations identified as having significant risk for l SR pp. 56, 84 4 incidents of forced or compulsory labor /procurement.htmlHR8 Security personnel trained concerning aspects of human rights l 4 SR pp. 56, 58, 84SO1 Effectiveness of practices that manage the impacts SR pp. 58-59, 62-64 of operations on communities l /procurement.html /social_sponsoring.htmlSO2 Business units analyzed for risks related to corruption l 4 SR p. 61; /eiti.html legend:SO3 Employees trained in organization’s anti-corruption procedures l 4 SR p. 61 EC1 key Performance IndicatorsSO4 Actions taken in response to incidents of corruption l 4 SR p. 61 EC5 Additional IndicatorsSO5 Public policy positions and participation in public SR p. 64 l 4 l Fully reported policy development and lobbyingSO8 Fines and sanctions for non-compliance with regulations l SR p. 40; /regional.html l Partly reported m Not reportedPR1 Life cycle stages in which health and safety impacts SR pp. 52, 54 l 4 n.a. Not applicable of products and services are assessedPR3 Type of product and service information required by procedures l 4 SR p. 52 4 Complies with UN Global CompactPR6 Programs for adherence to laws related to advertising l /crisis.html SR SustainabilityPR9 Fines for non-compliance with regulations concerning the AR p. 76 provision and use of products and services l Report 2007/08 AR Annual Report 2008 GRI Content Index | OMV Sustainability Report 2007/08 79
  • 84. Corporate Profile | In the Spotlight | Environment | Social Issues | Outlook | Indicators Application Level Check GRI Sustainability Reporting Guidelines The Global Reporting Initiative (GRI) develops October 2006 in Amsterdam. This third-gener- globally applicable quality criteria for sustainabil- ation version (G3) was developed in a process ity reporting in consultation with a wide range involving thousands of stakeholders, and fol- of stakeholders drawn from business, employer lows the first revised version (G2) of the original and employee representation, civil society, Guidelines which appeared in 1999 (G1). academic institutions, and other areas. The GRI Sustainability Reporting Guidelines are designed Application levels to serve as a universally valid framework which Organizations that use GRI G3 for their reporting an organization can use to report on its econom- are obliged to declare the extent to which the ic, environmental, and social performance. The GRI Guidelines have been utilized. The require- voluntary adoption of the criteria set out in the ments for reporting on each of the three Applica- Guidelines increases transparency, credibility, tion Levels, A, B, and C, are shown in the table and comparability in sustainability reporting. below. A+ indicates that the maximum criteria for completeness were met. 3rd Generation The latest revised version of the GRI Sustain- ability Reporting Guidelines was published in Report Application Level C C+ B B+ A A+ Report on: Report on all crite- Same as required for 1.1 ria listed for Level Level B Standard Disclosures OutPut G3 Profile 2.1 – 2.10 C plus: Report Externally Assured Report Externally Assured Report Externally Assured Disclosures 3.1 – 3.8, 3.10 – 3.12 1.2 3.1 – 3.8, 3.10 – 3.12 3.9, 3.13 4.5 – 4.13, 4.16 – 4.17 Not Required Management Approach Management Approach Disclosures for each Disclosures for each G3 Management OutPut Indicator Category Indicator Category Approach Disclosures Report on a minimum of 10 Report on a minimum of 20 Report on each core G3 Performance Indicators, Performance Indicators, and Sector Supplement* G3 Performance including at least one from at least one from each of: Indicator with due regard to OutPut Indicators & Sector each of: Economic, Social Economic, Environmental, the Materiality Principle by Supplement Perfor- and Environmental. Human Rights, Labor, either: a) reporting on the mance Indicators Society, Product Respon- Indicator or b) explaining sibility. the reason for its omission. * Sector Supplement in final version GRI Confirmation of Application Level A+ The present report, the OMV Sustainability Report for this level has been thoroughly checked by the 2007/08, meets the requirements of the A+ Applica- Global Reporting Initiative and is herewith officially tion Level of the GRI G3 Sustainability Reporting confirmed. Guidelines. Compliance with the reporting criteria80 OMV Sustainability Report 2007/08 | Application Level Check
  • 85. Third-Party StatementIndependent Verification erative implementation. Moreover, the three keyAs director of the Austrian Institute for Sustain- information areas of the social and environmen-able Development, I was commissioned by OMV tal sustainability pillars of OMV, namely HR, HSE,to prepare a third-party statement concerning and CSR, remain insufficiently linked. In futurethe OMV Sustainability Report 2007/08. This reporting it would be preferable to see strongerstatement is based on my verification of the con- linkage between them, with the reported infor-tent of the report according to the international mation categorized more in terms of the threeGlobal Reporting Initiative (GRI) guidelines, as pillars of sustainability than of organizationalwell as on the in-depth senior management in- responsibilities.terview which I conducted with Dr. Hilmar Kroat-Reder and Mag. Simone Alaya. The verification The parts of the report which I verified (i.e. notcovers the full version of the report on the OMV including the separately certified HSE contentwebsite and comprises two areas: all content and the economic content covered in the Annualthat is relevant to CSR, with the exception of the Report) make clear, and it was confirmed by theseparately certified HSE content, and the interre- senior management interview, that the opera-lation between the CSR and the HSE content. tive implementation of sustainability at OMV is producing exemplary achievements. This appliesThe present report is the first to be prepared by above all to the CSR area. Here there is an im-OMV since the company reorganized its report- pressive demonstration of what an internationaling approach. It was a highly commendable corporation can achieve in concrete terms when itdecision to combine the previously separate CSR comes to the protection and promotion of humanand HSE Reports into one report, which in the rights. However, a similarly pioneering approachfuture will be presented to an interested public towards integrating the supply chain into these ef-concurrently with the Annual Report. This step forts receives too little attention in the report.underscores the intention of the company totake into account all three pillars of sustainabil- The OMV Sustainability Report, with all itsity, from the corporate strategy to the actions of constituent parts, meets the criteria of the A+each individual employee. Application Level of the international GRI, which means that the reporting covers all the GRIAs the first in the new format, this report still indicators. This focus on the indicators is also re-has a certain amount of optimization potential in flected in the language used in the report. Whatterms of completeness and balance. Through the is often missing is the “warmth” with whichpresentation of information from three sources – a company lives its sustainability values, andthe print version, the full online version, and the which can also come through in a report.Annual Report – OMV offers a detailed and com-plete picture of its sustainability performance. Reports are an important element in the sustain-Even so, in the future completeness should be able development of a company. But the internalfound in one single source. This would require sustainability process is what holds the key toincluding the economic pillar of sustainability in making progress towards sustainable perfor-the Sustainability Report where, for the sake of mance. Even greater stakeholder engagementbalance, it would be given an equal amount of and committed innovation management couldattention as the social and environmental pillars. further advance this process. I look forward to seeing OMV continue to “Move & More” on itsThe content of the report focuses on the opera- path to sustainability.tive implementation of sustainability. That ispositive because the report demonstrates that Univ.-Doz. Mag. Dr. Dietmar Kanatschnig,sustainability plays an important role at the Director of the Austrian Institute for Sustainableimplementation level. Yet not enough attention Developmentis paid to those aspects of sustainability whichmake up the strategic superstructure for the op- Third-Party Statement | OMV Sustainability Report 2007/08 81
  • 86. Corporate Profile | In the Spotlight | Environment | Social Issues | Outlook | Indicators Ernst & Young Independent Assurance Report Engagement CriteriaIndependent We have performed a limited review of the HSE The HSE information included in the Report wasReview of the (Health, Safety, and Environment) information prepared under the responsibility of OMV’s HSE De-HSE information included in OMV’s Sustainability Report 2007/08 partment, based on the criteria applicable in the yearsincluded in the (hereafter “Report”). Our review covered the Chap- 2007 and 2008 (“The Criteria”), consisting of:Sustainability ter “About This Report” on the inner flying pages, c External guidelines elaborated by the GlobalReport 2007/08 HSE related information in the Chapters “Corpo- Reporting Initiative (GRI) and available on the GRI rate Structure” and “Strategy and Objectives” on website1; pages 10 and 12-13, respectively, “Environment” c OMV’s Corporate HSE Regulations (directives, on pages 26-41, “Health” on pages 48-49, “Safety” standards and procedures) related to HSE report- on pages 50-54, “Performance Indicators” on page ing, of which a summary is provided in the Chap- 74 and HSE related parts in the “Sustainability Pro- ter “About This Report” on the inner flying pages. gram” on pages 84-85. In the web content (hereaf- ter as above “Report”) our review covers all pages We assessed the HSE information in the Report with the statement “View Ernst & Young’s assur- against these criteria. We believe that these criteria ance statement”; in case that the reviewed pages are suitable for our assurance engagement. contain links to other pages, we point out that we did not review the other pages’ content. Management responsibilities OMV’s management is responsible for the prepara- We performed the review in order to obtain limited tion of the Report and the information therein in assurance that the HSE information as stated above accordance with the criteria mentioned above. This provides, in all material respects, a reliable and suf- responsibility includes designing, implementing and ficient representation of the policy, business opera- maintaining internal control relevant to the prepara- tions, events and performance with respect to HSE tion of the Report that is free of material misstate- during the reporting years 2007 and 2008. ments, selecting and applying appropriate report- ing policies and using measurement methods and Our procedures have been designed to obtain a limit- estimates that are reasonable in the circumstances. ed level of assurance on which to base our conclu- The choices made by management, the scope of sions. The extent of evidence gathering procedures this report and the reporting policy, including any performed is less than for that of a reasonable as- inherent limitations that could affect the reliability of surance engagement (such as a financial audit) and information, are set out particularly in the Chapter therefore a lower level of assurance is provided. “About This Report” on the inner flying pages of the Report and on page 74.“General Condi- The “General Conditions of Contract for the Publictions of Contract Accounting Professions” in the version of Febru- What we did to form our conclusionfor the Public ary 26th 2008 (AAB 2008), issued by the Chamber It is our responsibility to express a conclusion on theAcconting Profes- of Public Accountants and Tax Advisors are bind- HSE information included in the Report on the basissions” see: ing for this engagement. Our liability is limited of the limited review.http://www.kwt. with regards to section 8, according to which anor.at/de/desktop accountant is only liable for violating intention- Our assurance engagement has been planned anddefault.aspx/tabid- ally or by gross negligence the contractual duties performed in accordance with the International85/ and obligations entered into. In cases of gross Federation of Accountants’ ISAE30002 and the Code negligence the maximum liability towards OMV of Ethics for Professional Accountants, issued by and any third party together is EUR 726,730 in the the International Federation of Accountants (IFAC), aggregate. which includes requirements in relation to our inde- pendence. limitations to our Review c Our assurance engagement is limited to the HSE We have performed all the procedures deemed information included in the Report as mentioned necessary to obtain the evidence that is sufficient and in the Engagement Section. We did not perform appropriate to provide a basis for our conclusions. any assurance procedures on other information Our main procedures were: presented in the Report; c We have not tested comparative data, derived At headquarters level from the Sustainability Report from 2005-2006; c Assessing the suitability of the Reporting Criteria c The scope of our review procedures at site level for the purpose of this engagement; was limited to a sample of 3 site visits of OMV c Obtaining insight into the industry, the characteris- Group of a total of 22 reporting sites. tics of the organisation, and relevant HSE issues; 1 http://www.globalreporting.org/ReportingFramework/G3Online/ for Assurance Engagements Other than Audits or Reviews of 2 International Federation of Accountants’ International Standard Historical Financial Information (ISAE3000).82 OMV Sustainability Report 2007/08 | Ernst & Young Independent Assurance Report
  • 87. c Reviewing the HSE management including At site level reporting systems and processes underlying the We have selected a sample of three sites on the ba- preparation of the information in the Report; sis of their activity, their contribution to the Group’sc Reviewing the application of the Reporting Crite- consolidated data, their location, and the results of ria on HSE information on a sample basis; the review performed during prior years. Duringc Reviewing the reporting principles and significant our site visits in: Burghausen (refinery, Germany), estimates and calculations used in the prepara- Arpechim (refinery, Romania) and E&P Petrom tion of the Report; (Headquarters and two Field Clusters in Romania,c Assessing the reliability of the consolidation pro- namely Moinesti and Zemes) we were, cess for the key performance indicators and the c Assessing whether the HSE management plausibility of the HSE information in the Report including HSE reporting systems and process is by: effective by performing procedures on the exis- c Identifying inherent risks that might affect the tence of the relevant parts of HSE management; reliability of the information and investigating c Conducting interviews with the people respon- the extent to which such risks are covered by sible for HSE reporting at site level; internal controls; c Verifying the understanding and application of c Testing, on a sample basis and insofar as the Reporting Criteria on HSE reporting systems relevant for our engagement, the design and and processes; existence of the internal controls aimed at the c Performing analytical procedures at site levels; reliability of the consolidation process; c Performing a limited number of sample tests c Performing analytical procedures at Group to verify the substantiation of the HSE informa- level; tion contained in the Report. c Conducting interviews with responsible com- pany officials in order to verify the existence of the HSE policies and measures described in the Report.c Evaluating the overall view of HSE information provided in the Report.Our ConclusionsBased on our procedures performed to obtain a below. These observations do not affect our con-limited assurance, nothing came to our attention clusions as set out above.that causes us not to believe that the HSE infor- c OMV’s Corporate HSE Regulations (directives,mation in the Report provides, in all material re- standards and procedures) as well as terms andspects, a reliable and sufficient representation of definitions of HSE-KPIs are in place. Furtherthe policy, business operations, events and perfor- specific guidance at business segment level formance with respect to HSE during the reporting collecting, calculating and keeping records foryears 2007 and 2008, in accordance with the Glob- defined environmental data at site level is underal Reporting Initiative Guidelines and OMV’s Cor- development and will lead to more harmonizedporate Regulations of which a summary is provid- and standardized reporting of the environmen-ed in the Chapter “About This Report” on the inner tal indicators.flying pages. c Internal HSE Management System Audits and other audits are partly in place. NeverthelessEmphasis of matter we recognized that up to now only a limitedWithout qualifying our conclusion, we would draw number of specific audits of reported HSE datayour attention to the footnotes in the performance were performed. Strengthening the audit func-indicators section of the Report on page 74, which tion would contribute to the improvement of theexplain that certain HSE data are subject to inherent reporting of HSE data.limitations due to the way these data are measuredand obtained. The company intends to work towards Vienna, March 27th, 2009appropriate improvements. ERnST & YOunGCommentary Wirtschaftsprüfungsgesellschaft m.b.HOur observations and recommendations forimprovement will be raised in a report to OMV’s Brigitte Frey Georg Roglmanagement. Selected observations are provided Ernst & Young Independent Assurance Report | OMV Sustainability Report 2007/08 83
  • 88. ccc Impressum Print Owner and publisher: gugler* cross media, Melk/Donau, Austria OMV Aktiengesellschaft This report was produced with the use of green elec-c info.corporate-responsibility@omv.com tricity and in full compliance with Austrian ecolabel requirements and the stringent environmental guide- Concept and design: FABIAN Design lines of Photos: OMV and Suzy Stöckl Coordination: plenum gmbh To ensure climate-neutral printing, all emissions Art direction: Starnegg Art & Design generated during the production process were neu- tralized. The entire amount will be donated Paper to a WWF-selected climate protection This report was printed on Arctic Volume project in Karnataka, India:c White, a paper manufactured in Sweden. http://www.greenprint.at/uploads/ The paper contains a minimum of 10% FSC- myclimate_portfolio.pdf certified fiber and was bleached in an elemen- tal chlorine-free process. It therefore meets Produced and published in: Forest Stewardship Council (FSC) standards Vienna, Austria, April 2009 for papers from sustainably managed forests. None of the information provided in this Performance Report In the interests of simplicity and readability, the language used constitutes or shall be deemed to constitute an invitation to in this report is as far as possible gender-neutral; the mascu- purchase or trade in stocks, securities of any kind, or American line gender includes the feminine wherever applicable. Depository Receipts (ADR) issued by OMV Aktiengesellschaft.
  • 89. Sustainability Program What We Did Strengthening of the HSE management system and definition of a strategic sustainability path c Environment and monitoring the path towards 1st quartile en- c Creation of Carbon Management as a Group- vironmental performance in defined industry kPIs wide coordinating and support function c Implementation of the Environmental Manage- c Development of the OMV Carbon Strategy and ment Directive incorporation of annual targets in the Corpo- c Further integration of carbon management and rate Balanced Scorecard other HSE issues into core business processes Identification of new business opportunities in such as investment control and risk management the renewable energy field which OMV can c Evaluation of environmental KPIs against de- integrate into its core business fined peer groups c Approval in 2007-08 of 18 projects for cofund- Management of the GHG intensity of the portfolio ing by the OMF Future Energy Fund Development of internationalization Development of uniform employee definitions c Employees c Evaluation and development of standardized c Uniform occupation group definitions for tools for agreement on targets in the Group hourly-paid workers and salaried employees in c Unification of different staff development sys- Austria tems, such as PDS Expansion of the European Works Council Promotion of work-life balance at OMV c Increase in membership from 14 to 21 c Development of a sabbatical model in Austria c Introduction of long-term compensation ac- counts in Germany Roll-out and start of implementation of the OMV c Training of Health Circle moderators c Health Health Standard in all OMV countries c Introduction of Health Circles at main sites in c Stakeholder communication and information Austria and Germany c Raising awareness among local management c Promotion of the idea at Petrom, including pilot c Development of work procedures for core pro- moderator training in Romania cesses defined in the Health Standard Start of implementation of a healthcare project c Development of a standardized medical opera- at Petrom tional audit system c Setup of the PetroMed healthcare clinic network Active employee involvement in health matters c Planning of new clinics and setup of manage- through “Health Circles” rial infrastructure c Development of a guideline on the Health Circles c Development of harmonized OH regulations Reduction until 2010 of the lost-Time Injury Rate c Group-wide roll-out of the new incident report- c Safety (lTIR) to <1 and no incidents at level 4 or higher ing and management tool “Think:Ahead CARE” c LTIR total 2007: 0.99 Consolidation of the Petrom safety program c LTIR total 2008: 0.92 c Senior management involvement in incident Implementation and roll-out of an incident report- management and measures ing and management tool c Contractor management, road safety programs, c Level 4 and 5 incidents: positive results shown continued strengthening of the safety culture by the implemented measures, with the excep- tion of an increase in road incidents Promotion of awareness of OMV’s responsibility Promotion of local stakeholder dialogue c Human Rights for human rights protection c Stakeholder Fora in 2007 and 2008 c Development of a human rights management c Dialogues with local stakeholders, such as system, incl. the OMV Human Rights Matrix Maori communities in New Zealand c Human rights workshops for OMV managers Monitoring of the supply chain to enforce the ban c Human Resources corporate directives checked on forced labor and prohibited child labor for human rights aspects c Self-assessment questionnaires for suppliers local application of the Human Rights Matrix, and the pre-qualification process needs assessments, and planning activities Continuation of human rights training for c On-site gap analyses in Tunisia and Yemen security forces c Community development and investment proj- c Human rights training for security personnel in ects in Pakistan, Romania, Yemen, and Iran Austria, Romania, and Yemen84 OMV Sustainability Report 2007/08 | Sustainability Program
  • 90. What We Will Doc Strengthening of HSE leadership and commitment Implementation of the OMV Carbon Strategy c Achievement of a common understanding of demon- c Management and monitoring for reduction of direct stration and measurement of HSE leadership and GHG emissions from OMV operations commitment c Management and monitoring for reduction of indi- Spill prevention and preparedness plans rect GHG emissions from OMV products c Focus on spill prevention and preparedness plans Further development of OMV stakeholder and drills in order to reduce hydrocarbon spills management Implementation of the OMV Future Energy Strategy c Management of stakeholder expectations through c Monitoring and implementation of Future Energy internal and external communication, public events, Strategy milestones, and progress on developing and other activities renewable energy projects c Continuing internationalization c Expansion of existing Human Resources networksc c Further development of standardized tools in the on various HR issues Group, and greater use of synergies between em- Intelligent cost management ployee programs c Additional cross-functional programs and employee c Evaluation of current differences in the areas of exchange insurance and occupational health and safety, and Implementation of the OMV Values potential compensation for them c Continued implementation of the new Values (Part- Cooperation and synergies between the business segments ners, Pioneers, Professionals) c Greater use of synergies in the Group cc Further implementation and monitoring of the OMV Intensified training of medical staff Health Standard c Training in emergency medicine and other areas c Ongoing implementation in all OMV countries Harmonization and improvement of medical c Monitoring of Health Standard implementation infrastructure Ongoing health risk assessment c Harmonization of occupational health and medical c Systematic health risk assessment of workplaces regulations Ongoing promotion of health activities c Ongoing clinic refurbishment c Health promotion activities for employees according c Recruitment of medical staff to local needs and priorities c Active support of Health Circles at OMV and Petrom sites c Roll-out of the new Safety Management Directive Improvement of safety performancec c Development of training material c Through prevention: number of reported hazards c Start of training activities and the promotion of and findings safety awareness c Through actions: Action Items Response Rate (AIRR) Implementation of further transportation safety c Promotion of best use of the “Think:Ahead CARE” initiatives tool c General safety awareness promotion measures Strengthening of contractor management c Specific transportation safety program at Petrom c Follow-up on the Corporate Contractor Management Regulations at OMV and at Petrom cc Human rights awareness training Development of a human rights action plan c Roll-out of a human rights e-learning tool based on c Development of an action plan for OMV based on the IPIECA Toolkit the gap analysis conducted at E&P in 2008 c Training courses at OMV and Petrom with the BIM Development of CSR strategies Continuation of local stakeholder dialogue c Development and implementation of country CSR c Ongoing stakeholder dialogues and involvement strategies based on gap analyses Human rights training Social and environmental impact assessment (SEIA) c Continuation of training courses for security forces c Nabucco project in line with international standards Start of a due diligence and tollgate process Application of international standards on social and c Implementation of a tollgate process at G&P environmental sustainability c Making the due diligence and tollgate process the c Implementation of infrastructure projects in line with basis for future human rights goals and activities international standards (IFC guidelines) c
  • 91. Abbreviations and DefinitionsA AdBlue, Technology for reducing diesel k kPI Key Performance Indicator SCR engine emissions via selective catalytic reduction l lTIR Lost-Time Injury Rate; number ofB Barrel 1 barrel equals approx. 159 liters injuries per one million working hours BIM Ludwig Boltzmann Institute for Human Rights, Vienna, Austria M mn MillionC CnG Compressed natural gas MWh Megawatt hour; unit of energy CSR Corporate Social Responsibility n nabucco Natural gas pipeline project to connect the Caspian region withE E85 Fuel mix containing 85% ethanol Austria via Turkey and the Balkans and 15% gasoline nOx Nitrogen oxides EBIT Earnings before interest and tax; measures a company’s profitability P Peak Oil Maximum global oil extraction E&P Exploration and Production PDS Performance & Development ETBE Ethyl tert-butyl ether; additive to System increase octane rating of petrol PJ Petajoule; 1015 joule mixed with ethanol ppm Parts per millionF FAME Fatty acid methyl ester obtained R REACH Registration, Evaluation, Authorisa- from animal fat or vegetable oils; tion and Restriction of Chemical used in biodiesel Substances; EU regulationG GHG Greenhouse gas R&M ROn Refining and Marketing Romanian currency GRI Global Reporting Initiative G&P Gas and Power S Scope 1 Category of CO2 accounting asH HR Human Resources defined by the Greenhouse Gas Protocol; HSE Health, Safety, Security, and Scope 1: direct emissions Environment Scope 3 Indirect emissions HSEQ HSE and Quality SOx Sulphur oxideI IFAC International Federation of T t Metric tonne equal to 1,000 kilo- Accountants grams IFC International Finance Corporation; toe Tonne of oil equivalent a member of the World Bank group Tollgate A project management tool; a Intelligent Robotic tool used for inspection Process project progresses by passing pig or measurement purposes in through defined milestones difficult-to-access pipelines Triple Standard for reporting econo- IPIECA International Petroleum Industry Bottom mic, social, and environmental Environmental Conservation line company performance Association IPPC Integrated Pollution Prevention u un GC United Nations Global Compact; and Control; EU directive on envi- UN initiative to encourage com- ronmentally relevant industrial panies to adopt and report on installations sustainable and social policies ISPS International Ship and Port Facility unICEF United Nations Children’s Fund Security to ensure supply chain security V V/V % Volume-volume percentage
  • 92. OMV AktiengesellschaftTrabrennstrasse 6–81020 Vienna, Austriawww.omv.com

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