Contents About This Report01 Links and Cross-References02 Foreword by the CEO Corporate Profile10 Strategy and Objectives11 Group Structure In the Spotlight14 What Our Stakeholders Tell Us17 OMV in Dialogue20 Future Energies and Innovation Economy24 Economy Environment28 Climate Protection and Emissions Management32 Environmental Management34 Sustainable Resource Management38 Environmental Impacts of Our Products Social Responsibility42 Employees46 Health48 Safety52 Business Ethics53 Human Rights55 Community Relations Indicators60 Performance Indicators63 GRI Content Index66 GRI Application Level67 Independent Assurance Statement68 Sustainability Program Abbreviations and Definitions ImpressumRating agencies evaluate the financial and the sustainability performance ofOMV Group against social, ethical, and environmental criteria. Our shares andbonds may be eligible for socially responsible investment.
About This Report This print version of the OMV Sustainability Report 2009 presents key information on OMV’s sustainability performance. Additional information is provided in the full-length version of the report, available on the OMV website. The report describes how we integrate environmental, social, and economic considerations into our business. Functional strategies in the areas of health, safety, security, and environmental management (HSE), corporate social responsibility (CSR), and human resources (HR) support our sustainability management. As a forward-looking company we try to learn from your comments, ideas, and suggestions for improvement. Please let us know what you think. You can get in touch with us via the contact details on the back cover. The report covers the 2009 business year, in We work closely on material sustainability seamless continuation of the 2007-08 reporting matters with our joint venture partners, filling period covered in the last report. In the future station licensees, contractors, and suppliers. we plan to continue publishing the Sustainability Examples of how they implement our policies Report together with the Annual Report. are given in this report. Reporting Boundaries Content Data from operations under full management The information contained in this report relates control are fully taken into account, i.e.: to the typical impacts of an oil and gas company Data from all OMV Group activities with a on social and environmental sustainability issues. stake of more than 50% The report takes into account recommendations Joint ventures where controlling influence from stakeholder dialogues and industry is exerted and in which OMV acts as an associations, as well as disclosure demands by operator, including minority shareholdings. financial analysts and by the general public.The report was prepared in line with the guidelines The data are consolidated at group level. In of the Global Reporting Initiative (GRI) and the addition, a breakdown of environmental and Greenhouse Gas Protocol (GHG Protocol). safety key performance indicators for the operating business segments Exploration and Materiality Check Production (E&P), Refining and Marketing, The materiality assessment takes into accountEnvironmentaland safety KPI including Petrochemicals (R&M), and Gas and that reported information covers topics andreporting: Power (G&P), is disclosed in the online version indicators that would substantively influence/about.html of the report. the assessments and decisions of stakeholders, both internal, including management, and The following data are not taken into account external. These are: for this report: The typical impacts of an oil and gas company Figures from holdings of equal or less than on social and environmental sustainability 50% if there is no significant operational issues influence Information requirements by the management Environmental data from filling stations, due The outcomes of stakeholder dialogues to the fact that the vast majority of filling International sustainability reporting guidelines, stations are operated by partners functioning especially GRI and IPIECA guidelines and their as independent companies, except filling respective indicator protocols, from which stations under control of Petrom Marketing all core indicators should be covered, and that meet the above-mentioned boundary additional indicators as far as information is criteria to be included in the Group-wide available with reasonable effort reporting.
Best practice examples by industry peers were developed for all indicators and made Disclosure demands by financial analysts, available online. The completeness and accuracy rating agencies, institutional investors, etc. of reported data are checked at corporate level. Cross-checks (over time, between sites, andThe team of editors checked all the aspects comparison with normalized industry-specificcovered in the GRI guidelines for sustainability data) are performed systematically. Feedbackreports to determine whether they were material. and commenting loops with the reporting sitesThe team came to the conclusion that all aspects and departments ensure high data quality. Thisare relevant for an industrial company that reporting process is documented in writtenoperates internationally. Therefore, OMV decided procedures. If we identify limitations in theto provide as much information as possible coverage or reliability of data, we discloseabout all material core indicators and some them and introduce measures to improve theadditional indicators. reporting process. Parts of the print and online versions of the Sustainability Report 2009, asStakeholder Involvement well as aspects of the underlying managementDespite the abundance of obligatory information systems, were reviewed by Deloitte (asassociated with a sustainability report that meets expressed in the Assurance Statement).the requirements of the A+ Application Levelof the GRI, it was important to OMV to address Corporate Regulationsthe crucial questions and suggestions of our OMV regulations for the management ofstakeholders in an appropriate way. The “In sustainability across the Group, such as CSRthe Spotlight” chapter of this report focuses on and HSE management and reporting, aretopical subjects about which our stakeholders contained in directives (Code of Conduct;demanded information and explanations during HSE Policy; HSE Management System; CSRthe Stakeholder Fora that take place on a Management; HSE Awareness and Competency;regular basis. Environmental Management Directive; Safety Management Directive; Investigation,Reporting Methodology Management, and Reporting of Incidents; OMVData generation at site level relies on a variety Emergency and Crisis Management; Health andof business-specific methods, process systems, Health Management; several human resourcesand tools. A central reporting tool that can be directives), and standards (e.g. HSE Termsaccessed from all OMV sites and offices via and Definitions). In addition, some businessthe OMV Intranet is used for the Group-wide segments and sites have established specificcollection of HSE data. Standardized definitions complementary guidelines and procedures.Chapter OpenersCorporate In the Economy Environment Social Indicators andProfile Spotlight Responsibility Assurance
Links and Cross-ReferencesBy combining its Annual Report and Sustainability Report, OMV embarked on a journey towardscomprehensive sustainability reporting. The Annual Report contains certain subject matterand detailed data that must be included in sustainability reporting to meet the criteria of theA+ Application Level of the GRI Reporting Guidelines.The comprehensive online version of this describes OMV’s organizational structure,Sustainability Report contains further objectives and strategy, corporate governance,information, details, case studies, and the risk management, and business segments.breakdown of performance data by business To help save natural resources by avoidingsegment. The print report uses a Web symbol redundant information in the Sustainability This symbol pointsto indicate that more information on a particular Report, the following topic map identifies to additional information on thesubject is available on the OMV website. essential information in the Annual Report that OMV website: is relevant to understanding our sustainability www.omv.comAlthough its focus is on business performance performance in the business context. /Sustainabilityreportdata, the OMV Annual Report 2009 also Organizational Structure Objectives and Strategy General information on the Objectives and strategy of OMV as well management and ownership as of the operating business segments structure of OMV and Petrom Corporate Governance Management structure of OMV, including the Statement of the Supervisory Board, the Corporate Governance report, compensation of the Executive Board members, and a description of the independence 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, including Petrochemicals (R&M), and Gas and Power (G&P) Financial Performance Presentation of the performance data for the 2009 reporting period in the directors’ report, consolidated financial statements, and performance indicators Links and Cross-References | OMV Sustainability Report 2009 01
Foreword by the CEO Dear Stakeholders, The impact of global warming and changing OMV operates in a highly challenging business international energy and climate policies affect environment: Oil prices remain volatile, yet the OMV by posing regulatory and market risks for move towards a low carbon economy requires our economic performance. We have responded major investments from the oil industry. OMV to these challenges by seizing new opportunities must contribute to a secure and diversified energy in power and renewable energies. This is reflected supply while at the same time participating in in our new Strategy 2015 – the “3plus Strategy” – the fight against climate change. These are the which integrates our sustainability agenda: conditions under which OMV has become a OMV operates three integrated business market leader in Central, Eastern, and South- segments – Exploration and Production (E&P), eastern Europe. Our integrated strategy and Gas and Power (G&P), and Refining and solid financial structure helped us weather Marketing (R&M) – plus we are expanding the the global economic turbulence of 2009 and business portfolio towards sustainability by confirm our strong market position. strengthening the less carbon-intensive gas business, extending the value chain towards the Our aim is to tackle the challenges ahead and new power business, and adding renewables to create new business opportunities by integrating our portfolio. and enforcing sustainable development in our OMV operates in three growth markets – core processes. Central and Eastern Europe, Southeastern Europe, and Turkey – plus its supply regions The key to OMV’s future success is a highly secure energy supplies to our markets. motivated international workforce. We attract OMV focuses on three values – Professionals, outstanding employees. Nevertheless, hiring and Pioneers, Partners – that distinguish us from retaining specialized professionals will remain a our competitors – plus we are pursuing further challenge in our industry. integration across the business segments. We reached out to you, our stakeholders, in many different ways in the course of the year. The annual Stakeholder Forum in November provided an important opportunity to meet with you. We presented our 3plus Strategy at the event and discussed your expectations regarding the future of energy systems, mobility, innovation, and corporate social responsibility. The valuable feedback we received from you will help us implement the 3plus Strategy and improve our sustainability management. The views you shared with us have also influenced the contents of this Sustainability Report. We believe that long-term economic achievement (profit) is only possible if we care about human well-being (people) and the protection of the environment (planet). Together with our driving values, this approach marks the way forward not only for the company’s vision and strategy but also for the conduct expected of every single employee. As a pioneering professional partner, OMV works towards sustainable value growth and acts responsibly.02 OMV Sustainability Report 2009 | Foreword by the CEO
To further anchor sustainability in our business Implementation of a business ethicsactivities, we defined three focus areas to guide e-learning toolinternal and external stakeholders and activities: Integration of our non-financial and financial Diversity & Education: We want to promote reporting the development of a multicultural and External recognition of our sustainability international workforce based on our cultural performance through rating results and awards. roots, and provide equal opportunities for women and men Our future sustainability activities will include: Health & Safety: We create occupational Stakeholder management and dialogue health programs to ensure employees are fit Continued internationalization of our workforce for their work; integrate community health Health risk assessments projects into the sustainability strategies of our Further improvement of the safety performance, operations; and strengthen safety performance with a focus on process safety CO2 Emissions Reduction: We foster energy Reduction of GHG emissions and increased efficiency measures and initiatives to decrease energy efficiency. direct and indirect greenhouse gas (GHG) emissions; and we encourage behavioral By joining the UN Global Compact (UNGC), OMV changes on the part of employees, suppliers, made a commitment to implementing the 10 and customers. UNGC principles on human rights, labor standards, the environment, and anti-corruption. OurThese sustainability focus areas have been Sustainability Reports render an account of whatincluded in the target setting for 2010, at the we are doing to meet that commitment. They arecorporate level through the Balanced Scorecard the means by which we provide an annual(BSC), and at individual management level Communication on Progress (COP) to the UNGC.through the performance development andmanagement by objectives systems. From It’s people who make a difference. That’s why we2010 on we will award a percentage of the encourage everybody who works for and withnon-result-related variable compensation OMV to support and live our driving values:(bonus) for achieving targets in the focus areas. Professionals, Pioneers, Partners. It is thanks toThus the economic dimension of sustainability the efforts of our employees and partners that(profit) is now accompanied by the pillars we continue to create value for our shareholderspeople and planet at the individual management and stakeholders. They deserve the highestlevel as well. credit for contributing to the sustainable growth of our company.Each member of the Executive Board sponsorsone of the sustainability targets in the BSC, Wherever we operate around the world, we trythereby demonstrating our commitment to the to be an exemplary employer, a reliable businessachievement of these goals. partner, and a good neighbor.We made substantial progress on our Vienna, March 23, 2010sustainability performance in the reporting period: Significantly improved safety performance; nevertheless, five fatalities occurred, which is unacceptable Step change in incident reporting but still too many spills Measurable progress on reducing GHG emissions; the phase-out of flaring in some operations continues Wolfgang Ruttenstorfer Foreword by the CEO | OMV Sustainability Report 2009 03
People: IntegrationOMV explores, discovers, and extracts oil and gas on fourcontinents. We supply energy to markets stretching fromthe Black Forest to the Black Sea. Our continued growth isdriven by the common goals of innovative and ambitiouspeople with a wide range of backgrounds. Furthering theintegration and internationalization of such a highly diverseworkforce is a key issue for us.With our increasing success as a business comes socialresponsibility. We campaign for transparency and promotesustainable social development in every country we operatein. We know that complete information, mutual respect,and fair treatment are prerequisites for building andmaintaining long-term relationships with our stakeholders.A company is defined in no small part by its approach todifferent cultures. We undertake a clear commitment tocompliance with international law as well as with the lawsof a country. We respect, fulfill, and support the fulfillmentof human rights within our sphere of influence.
Planet: Supply Security and Natural ResourcesAs the leading energy group in Central and SoutheasternEurope, OMV plays a key role in ensuring energy security inits three regional markets of Central Europe, SoutheasternEurope, and Turkey. At the same time we share the globalchallenge of significantly reducing future greenhouse gasemissions to counter climate change. The careful use offinite resources like fossil raw materials is in everyone’sinterest. For example, OMV uses crude oil not only as anenergy source but also as the raw material for a wide rangeof products. We promote environmentally friendly naturalgas for the transportation sector and to generate electricity.Renewable energies are in the process of being integratedinto our portfolio.Natural resources, both finite and renewable, are OMV’score business. They enable us to contribute to developmentand growth in the markets we operate in. Our job is to securethese valuable resources for future generations as well.
“Aren’t you blowing in the wrong direction?” “No, I’m blowing towards the future.”
Profit: Our 3plus StrategyThe focus of OMV’s operations is on the three businesssegments Exploration and Production (E&P), Refiningand Marketing (R&M), and Gas and Power (G&P). Inaddition, we are extending our portfolio into sustainableenergy investments, in particular by expanding ourpower business.We are active in three regions, Central Europe, SoutheasternEurope, and Turkey, and provide a secure energy supply forthese growth markets through our activities in other regions.A trio of driving values – Professionals, Pioneers, Partners– helps us create synergies and integrate our activities,motivated by our “Move & More” philosophy.Included in the three pillars of sustainability – People,Planet, Profit – are three focus areas: Diversity & Education;Health & Safety; and Reduction of Carbon Dioxide Emissions.We see our 3plus Strategy as a solid basis for profitablegrowth and sustainable business success.
“How many business segments do you need to reap the rewards?” “Good things come in threes.”
Corporate Profile | In the Spotlight | Economy | Environment | Social Responsibility | Indicators Strategy and Objectives Sustainability is fully integrated into OMV’s corporate strategy and the strategies of the individual business segments. Our Balanced Scorecard includes measurable sustainability targets both at corporate level and in the business segments, with objectives, projects, and measures covering the entire value chain.The OMV Strategy Our road to market leadership is based on a PLUS expansion PLUS our supplyin detail: /group_ of the business regions strengthen clear strategy that combines and applies the portfolio towards our market positionmanagement.html E&P CEE “3plus” assets of OMV. We assess and manage sustainability G&P SEE and vice versa our risks and opportunities related to the R&M Turkey 3 Segments 3 Markets sustainable development of OMV, from the strategic level to operational aspects in the areas 3 Values Professionals of health, safety, security, and the environment Pioneers (HSE), and human rights. Partners PLUS synergies through integration Sustainability Strategy 2015The Sustainability Functional strategies ensure that our business Diversity & EducationProgram 2009-10 grows in an economically, environmentally, and Health & Safetyand Sustainability socially balanced way: CO2 Emissions ReductionStrategy 2015 are CSR: We manage our business responsiblypresented on the and live a culture of integrity. These focus areas are included in the corporateback flap HSE is a natural and integrated part of our Balanced Scorecard and in the individual activities. We apply industry best practices, act management targets. responsibly, and are accountable for our actions. HR: In all our human resources activities our Monitoring and Review aim is to position OMV as an employer of We monitor our sustainability performance choice on a truly international level. constantly, and have integrated non-financial information as well as environmental and safety Sustainability Focus Areas key performance indicators into the regular To strengthen the integration of sustainability financial reports to the senior management, into our business, we defined three focus areas: including the Supervisory Board.UNGC case studyon OMV: Our Commitmentshttp://www.unglobalcompact. The OMV Code of Conduct sets clear rules of Driving Valuesorg/Issues/ behavior in accordance with the UN Global In 2007-08, we adopted a trio of driving values:human_rights/ Compact (UNGC). It applies to all OMV employees Professionals, Pioneers, Partners. EmployeeBusiness_ in all business segments as well as to contractors. identification was high in 2009 but thePractice.html implementation showed room for improvement. In 2009, the case study OMV, the UN Global Compact and Human Rights: From Signature “Living the Values” is the motto of our future to Implementation was published in the UNGC activities to strengthen the perception ofMore on OMV’s series Embedding Human Rights into Business the driving values as supporting day-to-daydriving values: Practice. It describes how OMV has integrated business. The cornerstones will be continuity,/values.html human rights into its business. leadership, emotional aspiration, and integration.10 OMV Sustainability Report 2009 | Strategy and Objectives
Group StructureAs the leading energy group in Central and Southeastern Europe, OMV provides more than 100 millionpeople with energy. We operate in more than two dozen countries on four continents. Our activitiesinclude exploration and production of oil and gas, transport, refining, a network of over 2,400 fillingstations, and selective investments in power in addition to our core business. About 35,000 employeescontribute to the sustainable growth of OMV as professionals, pioneers, and partners.Integration of SustainabilitySustainable development means meeting the and Commitments” is based on the global socialneeds of the present without compromising accountability standard SA8000.the ability of future generations to meet theirown needs. As we grow selectively beyond our Our joint venture partners are expected, and our CSR, HSE, and HRexisting oil and gas business towards power and contractors are required, to implement HSE and responsibilities for sustainabilityrenewable energy, we integrate sustainability CSR standards that are in accordance with our management: /sus_into our business on the basis of three pillars: corporate directives. integration.html People: Social responsibility towards internal and external stakeholders Sustainability Committee Planet: Environmental management and The Sustainability Committee, convened for minimization of environmental impacts the first time in 2009, supports the Executive Profit: Economic success in the long term. Board, which bears overall responsibility for integrating sustainability into the companyTwo management systems were set up to ensure management. The Committee analyzes risks insustainable value creation. The corporate HSE terms of sustainability and suggests strategicmanagement system is based on international objectives and goals for the Balanced Scorecard.environmental standards such as ISO 14001 It developed and recommended three focusand health and safety standards such as OHSAS areas to guide OMV’s sustainability activities in18001. The corporate directive “Management of the medium term. In addition, the Committee OMV SustainabilityCorporate Social Responsibility – Processes enables strategic coordination across business Committee: /sus_ segments and departments. integration.html Executive Board Sustainability Committee Exploration & Production Petrom Human Resources Refining & Marketing Corporate Affairs & Sustainability Procurement Gas & Power Communication & Public Affairs Strategy Global Solutions Controlling & Accounting Treasury, Risk ManagementProducts and ProductionWe explore, discover, and extract oil and natural will continue to develop the product portfoliogas in six core regions, providing millions of towards sustainability by reducing its carbonpeople with energy, heating, mobility, and intensity. That means strengthening the less Products and brands andeveryday products and services. As a fully carbon-intensive gas business, extending sustainability inintegrated energy group, OMV looks for ways the value chain towards the power business, the value chain:to achieve synergies between the business and adding renewables to the portfolio. /products.htmlsegments and all along the value chain. We Group Structure | OMV Sustainability Report 2009 11
In the Spotlight: Sustainable GrowthDynamic growth brings with it an even greater responsibilitytowards society and the environment. Sustainability meansrecognizing that responsibility on a permanent basis. Byengaging in constructive dialogue with OMV stakeholders,we can better understand their various perspectives,arguments, and needs. We try to do everything possibleto enhance stakeholder value.As in previous years, interest in this year’s OMV StakeholderForum was extremely high. Participating stakeholders tookthe opportunity to raise a number of critical issues withsenior OMV executives, and made their views known.We take the demands of sustainability seriously, and ourability to meet them is constantly growing.
“What do we want to talk about?” “Sustainable growth.”
Corporate Profile | In the Spotlight | Economy | Environment | Social Responsibility | Indicators What Our Stakeholders Tell Us We actively encourage our stakeholders to share their views and concerns about OMV’s growth strategy, activities, and performance. The annual Stakeholder Fora provide a popular platform for lively stakeholder input. Described below are seven major issues which were raised in previous Stakeholder Fora and discussed by participants at the 2009 Stakeholder Forum. Sustainable Growth Although the recession caused a temporary slump in global demand for energy, current market signals point to an economic rebound accompanied by a rise in energy consumption. It is critically important to OMV to safeguard energy supply security in its markets. At the same time, in order to limit the effects of climate change the global community is challenged to reduce carbon emissions worldwide by up to 80% by 2050. OMV too is expected to set emissions reduction targets and take appropriate decisions to ensure sustainable growth. At the 2009 Stakeholder Forum it was suggested that OMV should advise its suppliers and contractors to reduce their greenhouse gas (GHG) emissions as well. For example, OMV could encourage the use of vehicles with A roundtable discussion at the 2009 Stakeholder Forum alternative fuel systems. Preparing for the Future OMV CEO Wolfgang Ruttenstorfer opened the These stakeholders felt that OMV lacked a long- 2009 Stakeholder Forum by introducing the new range environmental vision. corporate strategy 2015 – the 3plus Strategy – which outlines in detail the direction OMV will Some of the stakeholders pressed for more be taking over the next five years. rapid decarbonization with quantified medium- and long-term targets. They wanted to know In general the carbon emissions reduction whether OMV would support a demand for a targets he announced met the expectations of 40% cut in carbon emissions by 2020 and zero the stakeholders, who supported the need to emissions by 2050. boost energy efficiency and strengthen the gas and power business in the OMV portfolio. The OMV responded that it had taken a clear position transition to a post-carbon society cannot be on the carbon reduction targets it could set withinMore on the OMV achieved overnight; interim technologies are a plannable time limit. What the situation isCarbon Strategy required. But in the long run, according to going to be several decades from now, both forin the chapter some of the stakeholders, greater reliance on the world and for OMV, is difficult to predict. As“Climate Protectionand Emissions renewable energies was unavoidable, not Mr. Ruttenstorfer put it in his closing statement,Management” and only from an environmental point of view “No one can say for sure today what the world/carbon.html but also to provide future-proof green jobs. will look like in 2050.”14 OMV Sustainability Report 2009 | What Our Stakeholders Tell Us
Responsibility in a RecessionIn the last five years OMV has worked hard to credibility. Stakeholders expect a company toadvance its sustainability agenda, with impressive “walk the talk” even – or especially – in aresults in terms of substance and communication. downturn. Cost cutting should be spread fairlyThese achievements have raised stakeholder and transparently.expectations. With the economy now in arecession, the question on many stakeholders’ A weak economy breeds tension betweenminds is: Will the Group slash operating and established partner relationships and capitalinvestment costs? And if so, will there be an market expectations. The stakeholders wonderedimpact on environmental and social standards? whether OMV would be able to defy pressure from the analysts and the capital markets toThe Stakeholder Forum participants urged OMV cut costs, and asked if contracts were beingto stay the course. If OMV were to achieve cost renegotiated. The stakeholders expressedsavings at the expense of the workforce or CSR their hope that OMV would act in the spirit ofor HSE outlays, it would immediately lose partnership even when times are tough.Open InnovationInnovation is crucial to business evolution.Which trends in energy and transportation isOMV banking on for the future? Socioeconomicmodels for the future need to be assessed interms of their sustainability and strategic fit.Some 2009 Stakeholder Forum attendeessuggested that OMV should strengtheninnovation as a cultural element within itsinnovation management system. To dothat, they said, will require openness,time, commitment, and the provision ofcreative space.OMV Deputy CEO Gerhard Roiss told theStakeholder Forum, “OMV highly appreciatessuggestions for innovative ideas and newbusiness models.” For OMV innovation is a keysuccess factor for maintaining competitiveadvantage and sustainable profit growth inhighly competitive and dynamic industries. ThusOMV fully recognizes the role innovation playsin increasing the company’s long-term value. OMV Deputy CEO Gerhard Roiss (left) and Willi Nowak, head of the Austrian Traffic Club (middle), at the 2009 Stakeholder Forum What Our Stakeholders Tell Us | OMV Sustainability Report 2009 15
Corporate Profile | In the Spotlight | Economy | Environment | Social Responsibility | Indicators Electromobility Mobility has become an elementary human need options like gas-generated power are merely in our globally networked world. Developed interim solutions, and therefore OMV must societies depend on the mobility of people, systematically identify and tap the potential for goods, and information in order to function. In energy savings. view of the fact that motorized transport is a major cause of climate change, electric cars are When it comes to the link between electromobility increasingly attracting political support. and sustainable energy sources, numerous ideas are emerging along a new value chain. OMV is OMV is following this trend with interest. Our promoting these technical innovations through stakeholders share our view that linking new its internal and cross-company R&D activities, forms of mobility with renewable energies for example with the automotive industry. One represents a great opportunity for the company. of the main challenges for OMV will be to Stakeholder Forum participants suggested identify and develop new business models that OMV focus on mobility as a service rather along different steps in the value chain, including than on individual products. OMV should look the electric car itself, battery components, or at many different forms of energy, especially providing the required energy and infrastructure. renewables. The stakeholders pointed out that Diversity and Equal Opportunities Openness towards different cultures is a sine people with disabilities. When jobs are advertised, qua non for a company that operates in dozens more attention should be paid to promoting of countries around the world. Cultural diversity equality of opportunity. Employees should be can and should be a positive force in our granted sufficient opportunities for freedom of everyday activities. OMV’s stakeholders would action and self-organization to increase motivation like us to send a clear signal, within the company and spur innovative thinking. as well as to the outside world, on equality of opportunity, diversity, and individual freedom of OMV welcomed these recommendations. action. In addition to the benefits to OMV itself, We are respectful towards different cultures such a signal could serve as an appeal to society and actively support diversity. Many of our at large. The stakeholders called upon OMV to employees from the countries in which we contribute to equal opportunities for all by operate work in the OMV head office in Austria, setting a good example. and many of our Austrian employees work at OMV locations abroad. The number of women One of the issues brought up at the Stakeholder in management is growing. We avoid setting Forum was that OMV has too few women in quotas because careers at OMV are determined senior management positions. Stakeholders also solely by qualifications and skills. advocated providing equal opportunities for Stakeholder Value The Stakeholder Forum participants said they then intensify the dialogue with them; both would like to see OMV’s stakeholder management the stakeholders and OMV would benefit from activities put on a more structured footing. They the resulting transparency. OMV was in full also suggested that OMV clearly identify which agreement on this point, which has been stakeholder groups it wants to work with, and incorporated into the objectives for 2010.16 OMV Sustainability Report 2009 | What Our Stakeholders Tell Us
OMV in DialogueAs a large industrial group that operates internationally, OMV has a wide range of stakeholders. Wedefine a stakeholder as a group or individual that has a legitimate stake in our organization and/oris affected by our business activities. In line with the principles of sustainable corporate governance,we engage in constructive dialogue with all our stakeholders. Most important, stakeholder concernsare taken seriously. OMV’s stakeholders provide major impetus for the ongoing development of oursustainability activities, particularly with regard to issues management.Stakeholder GroupsOMV stakeholders include investors, customers, our activities as well. We listen closely to allemployees, and suppliers. Our economic success interested parties and respond to their concernsis vitally dependent on them. Many other and questions.stakeholder groups have a justified interest inStakeholder Landscape suppliers consumers and works contractors councils distributors universities customers employees science/ non-university research partners research stock exchanges society local banks capital population markets shareholders analysts EU/ governments/ municipalities politics sustainability public industry administration associations/ chambers NGOs/NPOs social issues competitors environment media external consultants OMV in Dialogue | OMV Sustainability Report 2009 17
Corporate Profile | In the Spotlight | Economy | Environment | Social Responsibility | Indicators 2009 Stakeholder Forum OMV convened its fourth annual Stakeholder two OMV employees, the stakeholders had Forum since 2006 on November 19, 2009. The ample opportunity to express their views. Forum was structured into three consecutive parts: In the final plenary session, designated external Part 1 (Plenary discussion): Presentation rapporteurs presented the ideas and proposals of Strategy 2015 by OMV CEO Wolfgang which participants had brought up at the Ruttenstorfer roundtable discussions. The four members of the Part 2: Nine roundtable discussions OMV Executive Board who were present directly Part 3 (Plenary discussion): Roundtable results addressed each of the issues raised. Summing presented by external stakeholders and up, Wolfgang Ruttenstorfer said he was grateful responses from the OMV Executive Board. for every suggestion and had gained valuable insights. In particular he realized that the company Each roundtable discussion started off with a needed to be more self-critical. He assured different introductory question relating to the participants that stakeholder concerns would three pillars of sustainability, People/Society; feed into the sustainability process and be given Planet/Environment; and Profit/Economy. The careful consideration. He highlighted two areas proposed discussion topics had been identified to focus on in the future: the development of a on the basis of the previous Stakeholder Fora long-term sustainability strategy, and the and the continuous interaction of OMV with consistent integration of sustainability require- external and internal stakeholders throughout ments into the Group’s day-to-day activities. the year. Follow-up Activities Implementation A few weeks after the Forum, the OMV Around 100 external and internal stakeholders employees who had moderated the roundtable accepted the invitation to learn about OMV’s new discussions, CSR and HSE managers, and corporate strategy and offer their feedback on the external consultants came together for a follow- challenges ahead. The interactive dialogue was up workshop to review the issues raised by conceived as an exercise in open communication the stakeholders. The aim was to ensure thatMore on the2009 OMV and innovation, reflecting OMV’s view of itself as stakeholder recommendations would be takenStakeholder Forum: a learning organization. During the roundtable into account in future strategic planning and/sh_forum.html discussions, each of which was moderated by decision making. 2009 Petrom Stakeholder ForumMore on the Petrom organized its first-ever Stakeholder from Romanian government ministries andPetrom Stakeholder Forum on November 26, 2009, in Bucharest. The agencies, academia, NGOs, and an internationalForum: theme was “Energy Efficiency and Sustainable financial institution. Specific opportunities for/sh_petrom.html Energy.” Two members of the Petrom Executive cooperation were identified. Petrom will develop Board and energy efficiency experts from the an action plan for following up on the stakeholder business divisions discussed with representatives suggestions put forward at the Forum.More on Local Stakeholder Dialogueslocal stakeholderdialogues: OMV maintains permanent dialogue with local and in the course of our operations and locations/sh_local.html stakeholders during the planning of new projects all over the world.18 OMV Sustainability Report 2009 | OMV in Dialogue
Employee FeedbackMembers of the OMV Executive Board regularly could hardly be more different from the areasengage in direct dialogue with one of OMV’s where OMV is active. Nevertheless, they sharemost important stakeholder groups – our with OMV a passion for tackling challenges andemployees. For example, Board members make the determination to align their activities withannual “Meeting Point” visits to major sites to defined values. Each of the two events in 2009talk to employees on the ground about how the was hosted by an Executive Board member, whocompany is doing, what the challenges are, and drew parallels between his guest’s experienceswhat the future strategy will be. The key topics and everyday work life at OMV.addressed at the meeting were: How is OMVperforming in a challenging financial year? What In her monthly online chat with employees,does a conservative financial strategy mean, the CEO of Petrom talked about performanceand how can we save costs while at the same culture, the restructuring process, CSR, and othertime continuing to grow? subjects. The CEO also maintains direct, open dialogue with employees by undertaking road-Launched in 2009, the “Driving Values Lounge” shows aimed at bridging the distance betweenafter-work discussion series at the OMV head the Petrom head office and the various locationsoffice feature special guests who are known for of our operations.their outstanding achievements in fields thatExpert GroupsBy taking part in international expert groups OGP, Concawe, EurogasOMV supports ongoing debate on specific social OMV is an active member of several committeesand environmental issues confronting the oil and and task forces of the International Associationgas industry. We learn from different approaches of Oil & Gas Producers (OGP); Eurogas (the More on OMV‘sand best practices in order to further improve European Union of the Natural Gas Industry); Human Rights E-learning Toolkitour own performance. and the oil companies’ European association for in the chapter environment, health, and safety in refining and “Human Rights”IPIECA distribution (Concawe). and /hr_tools.htmlOMV participates in the International PetroleumIndustry Environmental Conservation Association OMV representatives participate in the OGP/(IPIECA). In 2009, IPIECA published the second IPIECA Health Committee, which publishededition of its human rights training toolkit for the Health Aspects of Work in Extreme Climates,oil and gas industry, which is a reference for our Food and Water Safety, and Drilling Fluids andHuman Rights E-learning Toolkit. Health Risk Management in 2009.Challenges and Goals in 2010OMV will continue to expand and professionalize Promote the targeted, balanced inclusion ofits stakeholder management system in 2010: the groups in formal and informal dialogues Survey and categorize all our stakeholders Encourage our stakeholders to express their Assess how we communicate with the various concerns in a constructive dialogue stakeholder groups Incorporate issues addressed in stakeholder dialogues into our sustainability management. OMV in Dialogue | OMV Sustainability Report 2009 19
Corporate Profile | In the Spotlight | Economy | Environment | Social Responsibility | Indicators Future Energies and Innovation As an energy group OMV must respond to the challenges of rising energy demand, finite fossil fuel reserves, and climate change. We do so by investing in research and development (R&D) and in innovative projects in the renewable energy field. The OMV Future Energy Fund supports and funds renewable energy and emissions reduction projects which can be integrated into OMV’s core business in the medium term. Research and Development We invest in R&D for the benefit of our technology networks. As we expand our customers, the environment, and our business. knowledge base, we leverage synergies with We work closely with universities, non-university existing expertise. R&D expenditure in the research institutes, and numerous industrial Group totaled EUR 14.4 million in 2009. partners, and actively participate in diverse OMV Future Energy FundMore on the OMV The OMV Future Energy Fund was set up in 2006 of the organizational framework required toFuture Energy Fund with startup capital of EUR 100 million. Its goal implement renewable energy projects in theand its projects: is to identify and provide startup funding for individual business segments.www.omv-futureenergyfund. research and pilot projects dealing with renewablecom energy, reducing greenhouse gas (GHG) emissions, In the short term OMV is focusing on wind and improving energy efficiency. With the aid energy. Concentrated solar power (CSP), carbon of this funding OMV aims to generate a total capture and storage (CCS), and zero-emission investment volume of EUR 500 million in the power plants (ZEP) will play a key role in the three business segments. long term. The Future Energy Fund will continue to support the identification of new projects. It The Future Energy Fund helped identify the will be involved in promoting discussion both potential of future energies for OMV by within the Group and in stakeholder dialogues conducting screening exercises and feasibility regarding future energy initiatives. studies. It supported the setup and strengthening Exploration and Production Fossil Energy potential of geothermal energy, old oil and gas New methods in production technology aim at wells in Austria and Romania that would other- increasing production yield, reducing production wise be abandoned are kept in continued use. A costs, or extending the use of production project is evaluating the geothermal potential in facilities. The trend in exploration is inevitably the northern and central Vienna Basin to generate towards complex deposits that are difficult to heat and electricity. develop, such as the complicated structures in the extremely deep Vienna Basin or areas in In order to screen promising areas for geothermal deep water (e.g. in Egypt and Australia). projects in Romania, in 2009 Petrom E&P analyzed the results of a 2008 feasibility study, Future Energies internal data on oil and gas reservoirs, legal Geothermal Power: To explore and exploit the requirements, critical success factors, and risks.20 OMV Sustainability Report 2009 | Future Energies and Innovation
Carbon Capture and Storage (CCS): Another gas. E&P is developing a process for separatingresearch focus is the capture and storage of off the CO2 released during oil and gas productioncarbon dioxide during the production of oil and and injecting it into the reservoir.Gas and PowerFossil Energy Zero-Emission Power Plant (ZEP): OMV sees Biomethane projectCompressed natural gas (CNG) was introduced ZEP/CCS as having the potential to contribute in Bruck an deras an OMV fuel a few years ago. Expanding the substantially to the reduction of CO2 emissions Leitha, Austria: /gas.htmlnetwork of natural gas filling stations will create from fossil fuels within a few years. It is also athe infrastructure required for distribution. major bridging technology for the future when energy will be fully renewable. We are workingFuture Energies on creative solutions for CCS that can be used inBiogas: The addition of biogas (biomethane) the entire value chain of OMV activities: power Near-zero-emissionmakes natural gas an even more attractive plants, process engineering, CO2 transport, and power plant project:product in environmental terms. geological storage. /gas.htmlRefining and MarketingFossil EnergyThe focus of our market-oriented developmentwork is on adding biofuels to gasoline anddiesel. Other research projects are evaluatingfurther possible biocomponents for blending,and the fuel requirements for future engine andvehicle technologies.Vitatherm, the first heating oil without sulfur,combines eco-friendliness and cost efficiencyin heating. In mid-2009, an Austrian oil industryinitiative to promote the use of heating oil(www.heizenmitoel.at) started a subsidyprogram to encourage people to switch frominefficient heating systems to new types ofboilers. Research continued on the use ofbiogenic components in heating oils.Future EnergiesSecond-generation Biodiesel: A feasibility study manufacturer side (trucks and buses fromwas completed on the construction of production Daimler) and the customer side (Deutsche Post, Hydrogen fillingfacilities at the Schwechat refinery for high- DHL, and the Stuttgart public transportation stations in Grazquality second-generation biodiesel. Although authority SSB). and Stuttgart:the project was shown to be technically feasible, /refining.htmlinvestment decisions can only be made once Converting Biomass to Liquid Fuels: We launchedregulations and sustainability criteria for biofuels with partners new research projects to convertare clearly defined. To gain more experience biomass into liquid fuels. The goal is to crackwith this new type of fuel, in 2009 R&M launched natural oils and also cellulose and lignin togethera three-year fleet test with its partners from the with fossil components in existing or new plants. Future Energies and Innovation | OMV Sustainability Report 2009 21
EconomyIt is important to OMV to be economically successful. Notonly for the sake of our shareholders. High profits benefitmany others as well. Our positive business performancehelps finance the substantial investments we make in socialprojects and in environmental protection.We are a major regional employer and taxpayer, with a hugenumber of suppliers. Many of our business stakeholders arestrongly dependent on capital flows from OMV. Even whentimes are tough we make a point of maintaining long-termrelationships with them that are based on fairness.Through wages and salaries, taxes and duties, and largepurchasing volumes, every OMV location spurs regionaleconomic development and creates added value.
“Am I too forceful?”“Don’t worry, I can take it.”
Corporate Profile | In the Spotlight | Economy | Environment | Social Responsibility | Indicators Economy In 2009 the global economy was in the throes of a deep recession. Like other energy companies, OMV was affected by the business downturn and the dramatic slump in oil prices. Revenues and net profits fell significantly. To meet the challenges, in 2008 we implemented cost-reductionOMV‘s economic measures that are expected to save the company EUR 300 million by the end of 2010.performance:Annual Report 2009and /ec_approach.html Our Approach Declining global demand for oil and gas led to a To help us weather the turbulent economy we sharp drop in oil prices. However, the long-range developed our “3plus Strategy” for sustainable challenges of achieving profitable growth and growth based on a combination of our 3 main cutting CO2 emissions remain unchanged. The strengths: 3 Markets – plus our supply regions outlook for OMV’s markets reflects fundamental strengthen our market position, and vice versa; changes in energy demand. The oil market is 3 Segments – plus we are expanding the mature in Central and Eastern Europe (CEE), business portfolio towards sustainability; 3More on the OMV where demand has slowed, but in Southeastern Values – Professionals, Pioneers, Partners –Strategy in thechapter “Strategy Europe (SEE) and Turkey oil consumption is plus we achieve synergies through integration.and Objectives” growing. The demand for gas and power shows As a responsible company and an importantand /strategy.html growth across all OMV markets. economic actor, OMV seeks to take the interests of its stakeholders into account, and to make a Illustrative growth rates until 2030 for oil, positive contribution to the economy at regional, gas, and electricity consumption in CEE, SEE, national, and international level. and Turkey OMV works closely and constructively with its partners, contractors, and suppliers, in the firm belief that sustainable cooperation and balanced terms and conditions will be to our mutual benefit. We worked to meet sustainability targets in all our activities. We continued to modernize and restructure our refineries, we developed our Oil Gas Power power business, and we expanded our non-oil business. Our goal is to implement sustainabilityObjectives in 2009: Oil Gas Power not only in but also beyond our core business./ec_approach.html A key monitoring and control instrument is the Balanced Scorecard (BSC). The use of this management tool enables OMV to embed its Oil Gas Power vision and strategy in the Group’s day-to-day activities, and to chart the progress on their implementation. The BSC also includes sustainability objectives. Regional Economic Impacts Regional Employer on the market conditions and job requirements,Percentage of local OMV is an important regional employer in but for the Group as a whole it exceeds 90%.employees: the countries where it has operations. The OMV’s activities have a direct economic impact/per_empl.html percentage of local employees varies depending on these countries. They also have indirect24 OMV Sustainability Report 2009 | Economy
effects on regional value creation because dependent on the product or materials involved,consumer spending by OMV employees and their and on local availability and quality. Especially inhouseholds boosts turnover in retailing, trade some non-OECD countries the focus is on a localand industry, agriculture, and tourism, thereby supply chain.stimulating regional economic development. More than 95% of OMV’s main suppliers agreeLocal Suppliers to comply with the OMV Code of Conduct whenOMV has no corporate directives that explicitly they enter into specific contracts, frameworkstipulate or promote the use of local suppliers, contracts, and general terms and conditions ofbut local spending clearly exceeds 40% of the purchase. OMV classifies as A suppliers thosetotal spent. The procurement process is organized suppliers and contractors which in 2009 accountedon a material-specific basis. Thus whether or for 80% of the total purchasing volumes of thenot contracts can be issued locally is strongly procurement departments in the Group. EBRD Workshop social issues are integrated into the projects In September 2009, over 30 OMV employees submitted for approval. Gas and Power (G&P) attended an in-house workshop facilitated by organized the workshop to train OMV an expert from the European Bank for project managers to consider the social and Reconstruction and Development (EBRD). In environmental aspects of a project in the early his presentation on the EBRD’s Environmental stages of its development. They need to be and Social Policy, Dariusz Prasiek explained able to clearly present sustainability issues CSR in the that strict compliance with its conditions to management within the decision-making procurement is a prerequisite for project financing. This process. Informed decisions will help ensure process: ensures that sustainable development and the sustainability of our activities. /procurement.htmlChallenges and Goals in 2010Exploration and Production (E&P) will aim at Sustainable procurement management will focusmaintaining a CSR structure that reflects OMV’s on the following goals and performance indicators:values and responds to stakeholders expectations, Group-wide measurement of the extent toand at establishing a global reputation for OMV’s which purchasing volumes by OMV’sCSR and sustainability performance. A suppliers are covered by a code of conduct Survey of how many of OMV’s A suppliersRefining and Marketing (R&M) will continue to have established their own code of conductexpand the non-oil business, implement the At least 40% of the purchasing volume vianew retail and gastronomy concept for the VIVA local spending, i.e. procurement departmentsshops, and restructure and modernize the in OMV countries will promote purchasingPetrom refineries. from domestic suppliers 95% of supplier audits to include CSRThe priorities for Gas and Power (G&P) are the elements (about 20 per year)diversification of gas suppliers and regions to Development of long-term sustainabilitymeet future gas needs, and progress on the strategies for Kazakhstan, Yemen, and NewNabucco gas pipeline project. The development Zealand.of electricity generation is due to enter a decisivephase when the first gas-fired power plantcomes into operation. Economy | OMV Sustainability Report 2009 25
EnvironmentWe explore and develop oil and gas resources, and supplyenergy to over 100 million people. Our top prioritiesinclude implementing climate protection measures at ourproduction sites as well as high quality standards for ourproducts. We promote alternative energy sources and haveset ourselves firm targets to address climate change issues.We seek to minimize the impacts of our activities on theearth’s resources and ecosystems. Our environmentalpractices include efficient water use, proper wastetreatment and disposal, emissions reductions, and pollutionprevention measures. We operate with scrupulous carein areas that are rich in biodiversity.
“There is a burning issue that must be addressed.” “I know, it’s global warming.”
Corporate Profile | In the Spotlight | Economy | Environment | Social Responsibility | Indicators Climate Protection and Emissions Management Today’s energy and climate policies present major challenges for the oil and gas industry. The industry has a primary responsibility to contribute to the security of energy supply as energy demand grows. Yet in order to mitigate climate change, greenhouse gas (GHG) emissions must be reduced in all economic sectors. OMV is fully committed to developing its business sustainably. That requires balancing economic, environmental, and social considerations. We will continue to strengthen our gas business, promote the use of natural gas for power generation by building high-efficiency gas-fired power plants, and explore renewable energies. It is no less essential that we control and monitor our GHG emissions. Carbon Strategy Carbon exposure is one of the biggest challenges Power generation portfolio at no more than for the future of the oil and gas industry. The 0.37 t CO2 per MWh, applying state-of-the-art key features of the OMV investment proposition technology. include the pursuit of sustainable growth and contributing to the decarbonization of European To implement the Carbon Strategy, annual energy markets. targets are integrated in the corporate Balanced Scorecard, establishing the contribution of Targets each business segment towards achievement We have made a clear commitment to decrease of the strategic goals. Cost estimates and GHGThe OMV Carbon the carbon intensity of activities where OMV is emission projections are factored into theStrategy in detail: the operator, and to set targets for managing economic analysis and become part of every/carbon.html GHG emissions: investment decision. Reduction of direct GHG emissions from Exploration and Production (E&P) and Refining Organizational Responsibility and Marketing (R&M) by 1 million tonnes, The overall Group-wide responsibility for climate or at least 10%, until 2015, as the result of change issues lies with the CEO, and for each efficiency improvements business segment with the respective member of Contribution to the decarbonization of the the OMV Executive Board. The Carbon Steering energy markets in Central and Southeastern Committee, made up of corporate functions and Europe by reducing the carbon intensity of senior managers from the business segments, the portfolio, promoting gas, and selectively meets three to four times a year to evaluate the including power progress on the Carbon Strategy, and to discuss the Emissions Trading Strategy and the relevant business and sociopolitical factors. E&P’s Approach to Carbon Management A revised procedure for estimating and We set up an internal E&P GHG Steering reporting GHG emissions will help establish Committee under the chairmanship of one comprehensive GHG baselines for each of the three regional vice-presidents. Carbon operated venture. The baselines will allow the management and GHG reduction are now Steering Committee to make value judgments seen as a strategic issue for E&P as a whole, about where the most significant GHG and the Committee will oversee the rapid emissions cuts can be made, and to identify achievement of the agreed targets. projects for achieving these reductions.28 OMV Sustainability Report 2009 | Climate Protection and Emissions Management
Risks and OpportunitiesRisks Reducing the carbon intensity of the portfolio is Carbon risksFor OMV, regulatory risks concerning climate a key element of the business strategy: and opportunities:change include the tightening of rules in the Portfolio adaptation by strengthening the E&P /en_risk.htmlEuropean Union Emission Trading Scheme and Gas and Power (G&P) business with power(EU ETS) for the period 2013-20. This will lead investments to enhance gas valueto increased production costs, which in turn will Increased energy and environmental efficiencysignificantly affect international competition. of both products and production sitesIn addition, the structure of EU energy markets Lower carbon fuelswill change in connection with energy efficiency Support for research and projects ontargets and the increasing use of renewables. renewables, energy efficiency, and future technologies.OMV closely monitors climate change-relatedregulations in every country where we have Financial Implicationsoperations. New Zealand amended its emissions We assess the current and future financial effectstrading scheme in November 2009. OMV is of climate change issues by using complementarynow setting up the technical and commercial approaches at two levels, strategic and operative.processes required by the new system. We are As part of our regular strategic review we monitoralso monitoring Norway’s regulations. Many the development of the future macroeconomiccountries in which OMV undertakes exploration and industry environment (market growth,and production activities, for example Yemen, regulations, technologies, etc.), and try toare tightening their legal controls on flaring understand the impact of these trends on OMVand venting. It is therefore even more critical and develop strategic initiatives.that we phase out these practices as soon aspracticable. Finally, we will carefully monitor In addition, we measure current and futurethe development of climate change-related financial risks by their potential impact on OMV’spolicies at international level. EBITD and cash flow. The evaluation of climate change-related risks is an integral part of thePhysical risks related to extreme weather events OMV Enterprise Wide Risk Management (EWRM)might increase in the future, affecting our system. EWRM is integrated with our businessproduction and transportation infrastructure processes both horizontally and, in conjunctiondirectly or indirectly via complex interactions on with strategic and mid-term planning, vertically.global energy markets. Further risks related to Climate change-related risks are assessedclimate change include market price risks for together with all other identified risks on aCO2 and rising insurance fees. biannual basis.Opportunities Countermeasures to reduce the potential impactThe industries that provide energy for entire of all identified climate change risks include theeconomies can make important contributions to use of economic instruments such as emissionshelp mitigate and adapt to climate change. OMV trading and carbon portfolio management;is working in different areas of its core business integrative consideration of GHG emissionsto respond to the challenges represented by and climate change-related issues in strategy,climate change. controlling, and other key business processes; and operational and engineering measures to protect our facilities. Climate Protection and Emissions Management | OMV Sustainability Report 2009 29
Corporate Profile | In the Spotlight | Economy | Environment | Social Responsibility | Indicators Greenhouse Gas Accounting Direct Emissions (Scope 1) Emissions Trading Direct emissions of carbon dioxide (CO2), methane OMV is subject to the European Union (CH4), and nitrous oxide (N2O) were 11.7 million Emission Trading Scheme (EU ETS), with 23 tonnes in 2009 (2008: 12 mn t). The other GHGs of its installations included in the scheme in are of minor relevance and therefore are not the reporting period. Over 55% of the Group’s included in OMV’s GHG figures. GHG emissions direct GHG emissions (6.5 mn tonnes) were increased with the integration of Petrom data as of CO2 emissions from ETS installations. As a 2006. While GHG emissions are now decreasing result of emissions reductions, supplementaryGHG accounting for the Group, new production at operations in allocations, and unplanned stoppages, OMVmethodology: New Zealand and Yemen increased E&P‘s GHG Group recorded a surplus of 1.81 million/greenhouse.html emissions in 2009. certificates at the end of 2009. Million tonnes CO2 equivalent OMV follows a low-risk trading strategy. In addition to the trading of EU allowances, the 15.0 OMV carbon portfolio is optimized by using 12.0 credits from the flexible project-based mechanisms, the Clean Development Mechanism 9.0 (CDM) and Joint Implementation (JI), as provided 6.0 for under the Linking Directive. A systematicGHG Emissions screening of our own CDM or JI projects is 3.0per Business periodically updated. Several projects and projectSegment 0.0 proposals are currently under development at E&P R&M G&P OMV Group different stages of the CDM or JI project cycle, 2005 2006 2007 2008 2009 but had to be deferred or cancelled due to the changed economic environment in 2009. Participation in carbon funds for purchasing credits from CDM and JI projects is another instrument used to manage the OMV carbon portfolio. N2O Abatement Project project documentation and published it for Nitrous oxide (N2O), or laughing gas, is a the global stakeholder consultation process. A greenhouse gas with a warming potential 296 monitoring system to determine the baseline times higher than that of CO2. In mid-2008, was set up and adaptation measures for the Petrom began a JI project aimed at reducing plant reactor were underway. However, in N2O emissions from a fertilizer plant in 2009 fertilizer production dropped due to the Romania by around 260,000 tonnes of CO2 troubled economy and Petrom decided to equivalents per year. Petrom carried out the close the plant by the end of 2010.30 OMV Sustainability Report 2009 | Climate Protection and Emissions Management