OMV Petrom Sustainability Report 2021
About this | CEO | OMV Petrom | Corporate Sustainability | Sustainability at | Mapping our specific | Transition to low carbon | Responsible | People & | Innovation & | Performance in | Annexes | 2 | |||||||||||
Report | Statement | Group | Governance | OMV Petrom | Sustainability Risks | business | operations | Communities | Digitalization | detail |
Content
About this Report | 3 | Transition to Low Carbon Business | 22 | Performance in detail | 96 | ||
Climate Change and Energy Transition | 22 | Economic Performance | 97 | ||||
CEO Statement | 4 | ||||||
Social Performance | 98 | ||||||
Run Responsible operations | 33 | Environmental Performance | 115 | ||||
OMV Petrom Group | 5 | Health, Safety, Security | 34 | ||||
Annexes | 121 | ||||||
Environment | 55 | ||||||
Corporate Sustainability Governance | 7 | ||||||
Business Principles & Economic Impacts | 65 | Risks and Opportunities Summary | 122 | ||||
Supply chain | 71 | GRI Content Index | 129 | ||||
Sustainability at OMV Petrom | 10 | ||||||
EU Taxonomy Reporting | 137 | ||||||
Sustainability Framework in our Business Strategy | 10 | People & Communities | 75 | ||||
TCFD Recommendations Index | 139 | ||||||
Materiality | 13 | Employees | 76 | Memberships | 140 | ||
Community Relations | 84 | Abbreviations and Definitions | 141 | ||||
Mapping our specific Sustainability Risks | 16 | ||||||
Human Rights | 88 | Assurance Statement | 143 | ||||
Innovation & Digitalization | 92 | ||||||
Innovation & Circular Economy | 93 | ||||||
Digitalization | 95 | ||||||
About this | CEO | OMV Petrom | Corporate Sustainability | Sustainability at | Mapping our specific | Transition to low carbon | Responsible | People & | Innovation & | Performance in | Annexes | 3 | |||||||||||
Report | Statement | Group | Governance | OMV Petrom | Sustainability Risks | business | operations | Communities | Digitalization | detail |
About this Report
This 2021 OMV Petrom Group Sustainability Report, presents the impact of our activities on the economy, environment, and society, our progress and new commitments, and complements the 2021 OMV Petrom Annual Report with the legally required information related to the non-financial reporting requirements, specified by Ministry Order No.1938/2016, as amended. The sustainability reports are prepared by OMV Petrom on an annual basis. This Report has been prepared in accordance with the GRI Standards: Core option - updated 2020, and the information included in the Report refers to the financial year 2021, from January 1st to December 31st, 2021.
The data presented in the Report is consolidated at the OMV Petrom Group level, headquartered in Bucharest, Romania, unless boundaries are otherwise specified. Relevant oil & gas sector data boundaries are considered for each material topic in the text of this Report. The Report also includes disclosures required under the EU Taxonomy Regulation, the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) and a series of IPIECA core disclosures, the SASB Sustainability Accounting Standards
for the oil & gas sector, and the provisions of the non-binding EU Guidelines on non-financial reporting.
The Report's content has been assured through an assurance process by the Company auditor, Ernst &Young Assurance Services SRL (EY Romania) in accordance with the ISAE 3000 Standard. More information about OMV Petrom can be found in the OMV Petrom Annual Report 2021 and on our website: www.omvpetrom.com.
NOTE: In this report, the terms "the Company," "OMV Petrom," "OMV Petrom Group and "the Group" are used for convenience where references are made to OMV Petrom S.A. and its subsidiaries in general (see OMV Petrom Annual Report 2021).
Starting with January 1, 2022, OMV Petrom's business segments were renamed as follows: Upstream to Exploration & Production; Downstream Oil to Refining & Marketing, and Downstream Gas to Gas & Power.
2021
KEY
FIGURES
EUR
11 bn
investments by 2030
in the energy transition
Top ESG Ratings:
Ranked in the top 3% of the Oil and Gas Producers Industry by Sustainalytics
A - CDP Climate Change*
*based on OMV Group's response
11%
reduction in carbon intensity vs. 2019
Net zero
operations by 2050
EUR
>11 mn
investment in communities development
>1 mn
seedlings planted in Romania plants for tomorrow program (2020 - 2021)
30%
reduction of carbon intensity of operations by 2030
83%
recovery rate of waste generated
30.6%
share of women at management level
About this | CEO | OMV Petrom | Corporate Sustainability | Sustainability at | Mapping our specific | Transition to low carbon | Responsible | People & | Innovation & | Performance in | Annexes | 4 | |||||||||||
Report | Statement | Group | Governance | OMV Petrom | Sustainability Risks | business | operations | Communities | Digitalization | detail |
CEO Statement
2021 was a year when the global COVID-19 pandemic continued to disrupt lives, societies and industries. A year when concerns related to security of supply also became more real than ever, highlighting yet again the need for a strong and diversified energy sector.
For us, at OMV Petrom, 2021 was a milestone year, with the launch of our Strategy 2030. We have set out on an ambitious path to transform OMV Petrom for a lower carbon future, with sustainability fully embedded into our business plans. We put forward the largest private investment plan in the Romanian energy sector, totaling EUR 11 bn. Around 35% of our investments will go to low and zero carbon solutions. We also intend to enlarge the share of natural gas in our hydrocarbon production to about 70%, as we see natural gas as a key enabler for a successful energy transition in Romania.
Increased performance and transparency on ESG issues remain a key focus for us. In 2021, we continued to improve our disclosure related to climate change management, in accordance with the recommendations issued by the Task Force on Climate-related Financial Disclosures. Our efforts were recognized by ratings agencies such as Sustainalytics that placed us among the top 3% performing peer companies. It makes us proud to see that OMV Petrom's management of sustainability is rated as strong. Moreover, at the same time holds us to account to keep working on the areas where we need to improve.
Our Net Zero journey
The global climate crisis remains urgent and requires our immediate attention. In December 2021, we announced a bold investment plan, with the ambition to lead the energy transition in South-East Europe by capitalizing on emerging market opportunities. On our journey to reach Net Zero operations by 2050, we aim for a 30% reduction in the carbon emissions of our operations by 2030, versus 2019. Our combined Scope 1, 2 and 3 emissions will decline by approximately 20% by 2030. We also target a reduction in our methane intensity to less than 0.2% by 2025, in line with international targets.
Our Strategy 2030 builds on a strong sustainability framework, with a clear commitment to run responsible operations, foster people and communities and leverage innovation and digitalization.
Our new climate targets will soon be followed by new commitments in other sustainability areas.
Run Responsible operations
Health and safety remain a top priority for OMV Petrom and, in this context, we deeply regret the two contractor fatalities that occurred in 2021. We express our sincere condolences to their families. Our focus remains to avoid any health and safety incidents.
Running responsible operations is also about focusing on resource efficiency and acting with integrity and transparency towards all our stakeholders. We have zero tolerance for any form of corruption and expect our partners to do the same.
Foster People & Communities
As a corporate citizen, OMV Petrom contributes significantly to the economic and social fabric of society. We want to build and keep a talented, diverse and engaged team to help the company transition to a low-carbon business and achieve its regional growth goals. Diversity and inclusion are powerful advantages that aid in the creation of business value and support our ability to innovate. We continued to increase women's representation in leadership positions and are already ahead of our 30% target for 2025.
We strive to make a positive difference in our communities by listening and acting on their concerns, as well as supporting their long-term development. We continued to invest in infrastructure to improve access to basic services such as healthcare and education in the pandemic context. And our three-year forestation program initiative became a collaborative platform and a collection of "firsts": the first Tiny Urban forest in Romania and the first platform for calculating and estimating the carbon sink potential of newly planted forests.
Leverage Innovation & Digitalization
To support our ambitious decarbonization plans, we will invest approximately 2 bn euro in innovation and new technologies, mainly in hydrogen and carbon capture and storage. We expect these will help us achieve the target to capture more than 2 mn tons of CO2 per year by 2030. And as partners in a European research project, we will implement a carbon capture and utilization pilot in our Petrobrazi Refinery.
The far-reaching changes brought about by the energy transition cannot happen without digitalization. We constantly focus on developing the digital skills of our employees and we are leveraging the power of digitalization to simplify and automate processes within the company. This will help us improve our organization's agility and offer a better experience for our customers.
Our 2021 Sustainability Report
I welcome you all to read through our Report, as we take a look back at our promises and how far we've come, as well as introducing our new commitments to sustainability. Most prominently, we share in this Report the story of our energy and our people year after year, with 2021 serving as an example of our ability to adapt, overcome and continue to deliver results.
This is our sustainability story. This is what we do: provide the energy for a better life!
Christina Verchere
CEO OMV Petrom
About this | CEO | OMV Petrom | Corporate Sustainability | Sustainability at | Mapping our specific | Transition to low carbon | Responsible | People & | Innovation & | Performance in | Annexes | 5 | |||||||||||
Report | Statement | Group | Governance | OMV Petrom | Sustainability Risks | business | operations | Communities | Digitalization | detail |
OMV Petrom Group
In 2021, OMV Petrom maintained its position as the largest energy company in Southeastern Europe, acting along the entire energy value chain: from exploration and production of oil and gas to refining and fuels distribution, and further on to power generation and marketing of gas and power.
Our mission is to provide the energy needed for day-to-day modern life: light, heat and fuels for mobility. Moreover, we are proud to be one of the top ten employers in Romania, as well as one of
Upstream
- In 2021, our Upstream countries of operation included Romania, Bulgaria and Kazakhstan1, with main operation activities occurring in Romania within seven domestic assets operating 152 commercial oil and gas fields, including onshore and shallow offshore exploration & production and deep offshore exploration
- At the end of 2021, our portfolio consisted of 419.1 mn boe proved reserves and around 47.2 mn boe hydrocarbon production, including 3.2 mn tons of crude oil and natural gas liquids and 3.7 bn m3 of natural gas
- In 2021 the sale of our 100% shareholding in Kom-Munai LLP and Tasbulat
Oil Corporation (holding the production licenses for four onshore fields, respectively Komsomolskoe, Aktas, Tasbulat and Turkmenoi) in Kazakhstan was completed - In the Eastern Black Sea, we signed a Production Sharing Contract (PSC) for
Georgia Offshore Exploration Block II in March 2021 - Additionally, in December 2021 the transfer of 40 marginal onshore oil and gas fields was closed
Downstream Oil
- As part of our downstream operations, we operate Petrobrazi Refinery, located in Prahova County - Romania, with a capacity of 4.5 mn tons per year capable of processing OMV Petrom's entire Romanian equity crude oil
- Our retail included a total of 787 filling stations located in Romania, Moldova, Bulgaria and Serbia, operated under two brands: Petrom and OMV
- In 2021, we reached 5.34 mn tons of refined product sales, of which 2.94 mn tons were retail sales
Downstream Gas
-
Our Brazi Combined Cycle Power Plant (CCPP) is a gas-firedpower plant that has a capacity of 860 MW, and it is located in the same area as the
Petrobrazi Refinery - In 2021, the Downstream Gas segment recorded gas sales volumes of 48.94 TWh (including 38.42 TWh to third parties) and generated 4.79 TWh of electricity, a high record since start of operations.
the largest taxpayers and private investors in the country.
Headquartered in Bucharest, Romania, the OMV Petrom Group had a turnover of RON 26 bn, with a CAPEX of RON 2.8 bn in 2021. The integrated business model
1 OMV Petrom had operations in Kazakhstan until May 2021
Refining | Storage Logistics | Power Marketing | Power Production |
of the Group, with Upstream, Downstream Oil and Downstream Gas as its three business segments, ensures its financial resilience in a volatile context, and helps provide an uninterrupted supply of energy to society.
Onshore Oil Exploration | Onshore Gas Exploration | Offshore Oil and Gas | Transportation | Marketing of Refined | Gas Marketing |
and Production | and Production | Exploration and Production | and Non-fuel Products |
Usage
Aviation | Agriculture | Cars | Constructions | Plastics | Chemicals | Electricity | Heating | Hospitality | Steel |
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Disclaimer
OMV Petrom SA published this content on 28 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 June 2022 06:51:03 UTC.