OMV Sustainability Report 2011 En

ResourcefulnessSustainability Report 2011

OMV Sustainability Report 2011 2

Contents

About this Report 3

Foreword by the CEO 6

Company Profile 8Value Creation [9]Strategy 2021: Profitable Growth [10]

Resourcefulness. Our Concept for Sustainability 12The Resourcefulness Concept [13] · Organization [16]Stakeholder Dialogue [17] · Key Topics in 2011 [18]Roadmap 2012 and beyond [20]

Our Way to Human Resourcefulness 22Major Activities in 2011 [23] · Targets [27] · Human Rights [32]Community Relations [35] · HR Management [37] · Health [41]Safety [45] · Security and Resilience [50] · Figures [51]

Our Way to Natural Resourcefulness 57Major Activities in 2011 [58] · Targets [60]Environmental Management [61] · Energy and Climate Protection [63]Environmental Protection [66] · Product Responsibility [71]Future Energies and Innovation [74] · Figures [76]

Our Way to Financial Resourcefulness 80Major Activities in 2011 [81] · Targets [82]Responsible Governance [83] · Risk Management [86]

Verification Statement 90

GRI Index 93

Abbreviations, Imprint and Disclaimer 98


The OMV Sustainability Report covers the

2011 business year and presents our sus-

tainability performance data, continuing

seamlessly from the 2010 report. It describes

how we integrate environmental, social, and

economic considerations into our business.

We continue to publish the Sustainability

Report on an annual basis.

Reporting boundaries

Data from operations under managementcontrol have been fully taken into account,i.e.: 3 Data from all OMV Group activities with a

stake of more than 50%. This includesExploration and Production (E&P) opera-tions in Austria, Kazakhstan, Yemen, andNew Zealand; the Schwechat andBurghausen refineries; gas logistics (tran-sit and storage) in Austria; and OMVPetrom S.A. in Romania (E&P, refining,marketing, Doljchim fertilizer plant) whereOMV holds 51% of the shares, referred toas Petrom in the remainder of this report

3 Joint ventures, including minority share-holdings, where OMV exerts controllinginfluence as operator, for example, E&Poperations in Pakistan

The data is consolidated at Group level. Inaddition, a breakdown of environmental andsafety key performance indicators for theoperating business segments Explorationand Production (E&P), Refining and Market-ing, including Gas and Power (G&P) andPetrochemicals (R&M), is available online.While the boundaries for environmental KPIsfollow the principle outlined above, safetyperformance includes also data from E&Pjoint ventures where OMV is a minority partner.

The following data has not been taken intoaccount for this report: 3 Figures from holdings of 50% or less

if there is no significant operational influence

3 Environmental data from filling stations,due to the fact that the vast majority ofthem are operated by partners function-ing as independent companies, except fill-ing stations under the control of PetromMarketing that meet the above-mentionedboundary criteria. We work closely onmaterial sustainability matters with ourjoint venture partners, filling stationlicensees, contractors, and suppliers.Examples of how they implement ourpolicies are given in this report.

About this Report

An OMV E&P site

Students at school in Pakistan supported by OMV

Our majority shareholding Petrol Ofisi (97%)is in the process of integration. Where infor-mation covers Petrol Ofisi this is indicatedaccordingly. As nearly all Petrol Ofisi fillingstations are owned and operated by thedealer due to legal regulations, Petrol Ofisihas only very limited management control.Environmental KPIs are not included sincethe corresponding reporting system is still inthe process of being aligned with Groupstandards. Workplace safety performanceincludes Petrol Ofisi data, with certain weak-nesses but without material impact onGroup data.

Content and materiality

In selecting the content for this report, weapplied the materiality principle. The materi-ality assessment takes into account that

reported information covers topics and indi-cators which would substantively influencethe assessments and decisions of manage-ment and stakeholders.

For the present report, we updated our lastyear’s materiality analysis. In 2010 internaland external stakeholders were asked to rankabout 60 topics according to their impact on and significance to OMV on a scale from1 (= low) to 6 (= high). In 2011, internalexperts were consulted regarding their per-ception of recent developments within thesetopics. Due to increased stakeholder interestand based on the feedback we received inour stakeholder dialog sessions on theResourcefulness concept, we included fournew issues: Shale Gas, Employees’ Engage-ment, Educational and Entrepreneurial Initia-


Sustainability issues identified as material for OMV

Emergency and crisis management

Air emissions

Business ethicsStakeholder dialog

Sustainable growth

Community relations

Occupational health

Water management

Waste management

Integration and expansionCareer planning Local suppliers

Life cycle assessmentBiodiversity Industrial relationsLand use and planning

Educational & Entrepreneurial Initiatives

SRI

Shale Gas

Employees’ Engagement

H2 MobilityCommunity health programs

Charitable donations, social sponsoring

Workplace and contractors’ safety

Security of supply Process safety

Product safetyEnergy efficiency

Renewable energies

Climate change

Human rights

Cleaner fuels

Integration of sustainabilityinto core business

Equal opportunities and diversity

Job security and creation

Spills and leakages

Relevance to external stakeholders highlow

Rel

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tern

al s

take

ho

lder

s

high


tives as well as Socially Responsible Invest-ment (SRI). The topics of highest signifi-cance are addressed in this report.

Furthermore, at the start of every reportingcycle, the team of editors reviews all theaspects covered in the Global Reporting Ini-tiative (GRI 3.0) guidelines for sustainabilityreports. In 2011, the team came to the con-clusion that all aspects are relevant for an oiland gas company that operates internation-ally. Therefore, OMV decided to adhere tothe principle of comprehensive and transpar-ent reporting and provide as much informa-tion as possible about all material core indi-cators and some additional indicators aswell. The report was prepared in accordancewith the guidelines of the GRI, the GRI Oiland Gas Sector Supplement, and the Green-house Gas Protocol (GHG Protocol), a corpo-rate accounting and reporting standarddeveloped by the World Business Council forSustainable Development (WBCSD) and theWorld Resources Institute (WRI). We self-declare that this report meets the require-ments of GRI Application Level A+.

Reporting methodology

Data generation at site level relies on a vari-ety of business-specific methods, processsystems, and tools. We use a central report-ing tool, which can be accessed from mostOMV sites and offices via the OMV Intranet,for the group-wide collection of HSSE data.The completeness and accuracy of reporteddata are checked at the corporate level.Cross-checks are performed systematically.Feedback loops with the reporting sites anddepartments ensure high data quality. Thisreporting process is documented in writtenprocedures. If we identify limitations in thecoverage or reliability of data, we disclosethem and implement measures to improve

the reporting process. As detailed in theAssurance Statement, Ernst & Young pro-vided limited assurance on disclosures anddata relating to four specific focal areas inthe PDF Sustainability Report 2011.

Corporate regulations

OMV regulations for the management ofsustainability across the Group are con-tained in directives (Code of Conduct; HSSEPolicy; Management System; health, safety,security, environmental, and several humanresources directives) and standards (HSETerms and Definitions; Incident Investiga-tion; HSE Risk Management; ContractorHSSE Management; group-wide HSE Report-ing and Consolidation; Environmental Man-agement Accounting; Health Standards,etc.). In addition, some business segmentsand sites have established specific comple-mentary guidelines and procedures.


Sustainability has always held great impor-tance for the OMV Group. Our principleswere affirmed back in 2003 when we signedup to the UN Global Compact: taking respon-sibility for the people and the environmentalong the entire value chain, promoting newsolutions and acting with integrity at alltimes and in all places. This SustainabilityReport describes what we have achieved inthe past year and what our plans and inten-tions are. It is at the same time our declara-tion of progress for the UN Global Compact.

In the past year we have reworked our concept for sustainability under the name“Resourcefulness”. Since handling humanand finite natural resources is a vital precon-dition for sustainable business success, westrive to be a role model for responsiblebusiness conduct wherever we operate.

“Resourcefulness” complements our strat-egy for profitable growth. In pursuing it weare gearing ourselves up for the future andensuring that our actions are in line with theneeds and requirements of society and thepeople in the regions in which we operate. To further its realization we installed a sen-ior-level Resourcefulness Executive Team in2011.

Health, Safety, Security and Environment(HSSE) is one of OMV’s highest priorities:Our functional HSSE Strategy and conceptwas updated in 2011, taking into considera-tion the increasing expectations of stake-holders, lessons learned from major acci-dents in our industry, our presentperformance and future demands. Beyondthat, “Resourcefulness” aims at challengingOMV to find not just standard answers butinnovative solutions providing long-termshared value and success for OMV, societyand the environment.

Human Resourcefulness. OMV employsabout 30,000 people and operates in some30 countries across four continents – as aninvestor, as an employer and as a client.Responsible dealing with all our stakehold-ers is the key to long-term success. Thisholds especially true for our employees. In2011 we implemented a number of initia-tives to advance our health and safety man-agement. Diversity management is anotherarea in which we made unmistakableprogress, doubling the percentage ofwomen in senior management posts. Fur-thermore, we are proud of our crisis man-agement, which was challenged more thanever before by the unrest in North Africa. We

Foreword by the CEO


were able to evacuate all of our expatriatesout of the crisis regions in a safe and timelymanner. Unfortunately we were not able toimprove our safety performance: in 2011,four workers sadly died on duty and three incommuting accidents.

Natural Resourcefulness. OMV is committedto making a contribution to the transition inthe energy sector, which we do by expand-ing our gas business and developing newregenerative energy sources. The efficientuse of water and energy and the reduction of emissions is a daily responsibility that wehave been fulfilling consistently for manyyears. This report contains numerous exam-ples of how we have been able to realize sig-nificant saving potentials in 2011.

Financial Resourcefulness. We need the con-fidence of investors. Sustainability aspectsare taking on ever-greater significance andanalysts examine them intensively. Demon-strating responsible management of oppor-

tunities and risks is now vital for long-termgrowth and reliable business success. Ourrigorous safety manage ment is a big advan-tage here. In 2011, we initiated a Major Acci-dental Events study to reevaluate our high-est risks. But we are also keen to getsustainability factors incorporated in invest-ment and business decisions to an evengreater degree in the future. We thereforeintend to develop methods to measure andevaluate them.

The demands placed on us grow as weexpand our operations. Our “Resourceful-ness” concept enables us to deal with this sothat everyone benefits: OMV, society and theenvironment. We’re getting to work on it.

Gerhard Roiss


OMV is an integrated, international oil and

gas company with three core business seg-

ments: Exploration and Production (E&P),

Gas and Power (G&P), and Refining and

Marketing (R&M).

Exploration and Production

OMV is successfully exploiting its core assetsin Romania and Austria and has a well-bal-anced international portfolio. In 2011, OMV’soil and gas production was 288 kboe/d andits proven reserves were about 1.13 bn boeat year-end. More than two-thirds of its pro-duction comes from Romania and Austria –the remainder from a growing internationalportfolio. Oil and gas account for around50% each of overall production.

Gas and Power

Our integrated Gas and Power (G&P) busi-ness segment operates across the entire gasvalue chain. We have long-proven partner-ships with major gas suppliers to assure sta-ble supply to our markets and also producegas at our own fields. With our 2,000 km gaspipeline network as well as our gas storagefacilities with a capacity of 2.4 bcm, we are amajor contributor to security of supply inAustria and beyond. Additionally, we aredriving the Nabucco gas pipeline project,

which will also increase Europe’s security ofsupply. Our Central European Gas Hub(CEGH) is the most important gas tradingplatform on the gas routes from East to Westand also operates a gas exchange. Our gashub in Baumgarten is Central Europe'slargest gas distribution node for Russian gas.

Refining and Marketing including

petrochemicals

OMV operates refineries in Schwechat (Aus-tria) and Burghausen (Southern Germany),both with integrated petrochemical com-plexes. Together with the Petrobrazi refinery(Romania) and our 45% stake in Bayernoil(Southern Germany), these give us a totalannual processing capacity of 22.3 mn t(450,000 bbl/d). Our retail network consistsof approx. 4,500 filling stations in 13 coun-tries including Turkey. With strong retailbrands, high quality non-oil business (VIVA)and an efficient commercial business, wehave a leading position in our market.

Company ProfileExplorationAustraliaEgyptFaroe IslandsIrelandNorway

Exploration and ProductionAustriaKazakhstanKurdistan Region of IraqLibyaNew ZealandPakistanRomaniaTunisiaUnited KingdomYemen

Worldwide exploration and production portfolio


Value creation

The total revenues generated of EUR 44,037mn include sales of EUR 43,680 mn, incomefrom dividends and interest (EUR 263 mn)and revenues from the sale of assets. Distri-bution to stakeholders (EUR 30,350 mn) islargely made up of operating costs to OMV’ssuppliers, which also includes the deprecia-tion of fixed assets. EUR 10,572 mn is dis-tributed to governments and compriseexcise duty (EUR 9,627 mn), income tax(EUR 560 mn) and royalties paid (EUR 385

mn). EUR 1,123 mn is distributed to OMV’semployees in wages and salaries as well asother employee benefits. Interest expensetotaled EUR 382 mn and was distributed toOMV’s capital providers. Dividends of EUR441 mn (for the financial year 2011) werepaid out to shareholders. Having investedEUR 10.5 mn in the community, an addi-tional value retained of EUR 1,157 mnremained within the company.

Value creation and distribution to stakeholders 2011

Suppliers 68%

Capital providers 1%

Employees 3%

Governments 24%

Shareholders 1%

Society <1%

Economic value retained 3%

Significant financial assistance received by governments or government organizations

Company name

GAS CONNECT Austria GmbH

OMV AG

OMV (NORGE) AS

EUR in Thousands

52

89

3,380

Details

Training funding (apprentices)

Training funding (apprentices)

Refund of exploration cost


Strategy 2021:

Profitable Growth

In September 2011, the OMV ExecutiveBoard presented a strategy update based onthe pillars of “growth – integration – change– performance” in Istanbul: Strategy “Prof-itable Growth”. In the coming years, OMVwill develop into a focused, integrated oiland gas company with clearly improvedprofitability and strong growth in theupstream sector.

The upstream business E&P – the explo-ration and production of oil and gas – willhave a far more significant role. OMV willalso experience strong growth in the gassector – from the production and transporta-tion to the marketing of gas. From the gashub Baumgarten, OMV can deliver to all ofEurope and can therefore contribute to sup-ply security in Europe. Modern gas-firedpower plants will complete the portfolio.R&M will continue to be an important ele-ment of the integrated value chain, but, overtime, will be of lesser relative significance inthe portfolio.

The OMV portfolio will be more focused andprofitability will continue to be enhanced inorder to optimally meet the challenges of thefuture.

The cornerstones of OMV's strategy are:

Growing upstream Integrated gas Restructured oil downstream Improved performance across the entireGroup

Growing upstream

E&P is the growth driver within the OMVportfolio. OMV will direct approximatelytwo-thirds of future investments towardsexploration and production of oil and gas.

The foundation will be an increased per-formance of the existing upstream portfolio.The speed of resource maturation from dis-covery to production will be increased. Tar-geted acquisitions will not only yield furtherproduction volumes, but will also add addi-tional development and exploration opportu-nities. Stepping up exploration efforts willensure the sustainability of the E&P portfolioand provide a foundation for long-termgrowth. In its future growth ambition, E&Pwill focus on the Caspian Region, the MiddleEast and Africa.

Integrated gas

In Europe and Turkey, the gas business inparticular will continue to experience stronggrowth. Natural gas is the cleanest fossil fueland will be the most significant source ofenergy in the future, and thus OMV's gasbusiness will gain significance. OMV will actin a fully integrated way – from the gas fieldto transport infrastructure and storage all theway to distribution channels. An importantaspect of this is the strengthening of theBaumgarten gas hub and the Central Euro-pean Gas Hub (CEGH) trading platform. Theconversion of gas into electricity extends thevalue chain and ensures, aside from sellingand trading of gas, an additional importantand profitable marketing platform for gas.The Nabucco project continues to be animportant project for OMV and will contributeto the long-term gas supply for Europe.

Restructured oil downstream

In light of contracting oil downstream mar-kets in Europe, OMV will adjust its exposureto the R&M segment: In the coming years,up to EUR 1 bn shall be generated throughdivestments of R&M assets. In addition, therefineries’ product yield will be adjustedtowards market demand for middle distil-lates and petrochemical feedstock, especiallypropylene. The modernization of existingassets will be finalized at Petrobrazi. Enhanced


asset-backed trading activities will supportthe optimal use and capacity utilization ofexisting assets. Special emphasis will be puton effective management of capital and costefficiency.

Improved performance across the entire

Group

To support the path to profitable growth,OMV will launch an ambitious performanceimprovement program to significantlyincrease profitability by 2014. The programwill target revenue improvements, costreductions and capital optimization.

Our objectives

Our key objective is to raise performanceshort-term until 2014

Stabilized production in Romania andAustria (200-210 kboe/d)Better gas integration along the valuechainR&M divestments (up to EUR 1 bn)Performance improvement program(+2% points return on average capitalemployed (ROACE))

Delivering growth is our mid-term focusuntil 2016

Organic production growth ~2% p.a.,based on 2010 (up to 4% p.a. incl. acquisitions)~100% three-years average ReserveReplacement Rate (RRR) target (incl. acquisitions)Increased exploration expenditureIntegrated gas portfolio growth

Our aim is to build a position for long-termgrowth until 2021

Larger exploration footprintUnconventional gas Nabucco and related activities, incl.access to upstreamAdditional gas-fired power plants(dependent on equity gas supply)

Focused, more integrated growth

Growing

Upstream

Integrated Gas

Restructured

Oil Downstream

current positionExploration focus

1

2

3


Resourcefulness. Our Concept for Sustainability

Resourcefulness is our concept for responsible business behavior. We aim at securing future energy resources for the common good. As one of the leading European oil and gas companies, OMV facesmajor challenges. Global energy requirements are increasingsignificantly. At the same time, environmental protection and socialjustice are of growing importance. The demands placed on usincrease as we expand our operations. A responsible approach tobusiness is crucial if we wish to remain successful. Our response tothe Arab spring was an outstanding example of how we handle ourresponsibilities within an increasingly complex business environment.

Concept Resourcefulness | Human Resourcefulness | Natural Resourcefulness | Financial Resourcefulness


In 2011, OMV’s concept for sustainabilitywas restructured under the name “Resource-fulness”. Our aim is to secure future energyresources for the common good. Sinceresources are our core business, handlinghuman and finite natural resources responsi-bly is a vital precondition for our sustainableeconomic success. Wherever OMV operates,we want to become a role model for respon-sible business behavior towards all our rele-vant stakeholders.

Our credo in doing this is: Always thinktwice. Because we want to find not just stan-dard answers but innovative solutions thatprovide long-term shared value and successfor OMV, society and the environment.

Resourcefulness is the umbrella for ourbehavior with regards to environment,safety, human rights, diversity, health andbusiness ethics.

We add social and environmental aspectsin every business decision we make.We are committed to develop mutualunderstanding and trust with our stake-holders.

We strengthen our employees creativityand social competence.We make the effects of our behaviormeasurable.

The Resourcefulness concept was passed by the Board at the end of 2011 and will complement our 2021 business strategy forprofitable growth. It essentially has threedimensions:

Human Resourcefulness: People are themost important resource for achieving long-term success. So for us, Human Resourceful-ness means:

Respectful relations with all our stake-holders: We are committed to treating allour stakeholders with respect. The UNGlobal Compact with its ten principlesforms the basis for our ethical behavior.We have used it to create a comprehen-sive Code of Conduct for OMV that con-tains guidelines for our behavior withregards to business ethics, diversity,health, human rights and safety.Skills to succeed: By supporting educa-tional and entrepreneurial initiatives inour core markets, we promote the skills

Concept Resourcefulness | Human Resourcefulness | Natural Resourcefulness | Financial ResourcefulnessThe Resourcefulness Concept

The Resourcefulness Concept

We find innovative

solutions that lead to a win-win

situation in the long run for OMV,

society and the environment.

Resources are ourcore business.

We have a special

responsibility tobe careful withtheses finitenatural resources.The same appliesto human andfinancialresources.

Resourcefulness Concept

Being

careful w

ithresources

Inno

vati

veso

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Resourcefulness


people require to be successful. Westrengthen our employees’ creativity andsocial competence, and we invest in theeconomic development of the communi-ties in which we operate. We support edu-cational initiatives in the fields of energyand management in our core markets.

Natural Resourcefulness: We have a specialresponsibility since we work with finite natu-ral resources. It is our duty to contribute to asecure, diversified energy supply while atthe same time helping to protect the envi-ronment. So for us, Natural Resourcefulnessmeans:

Efficiency and responsibility in our corebusiness: In order to secure the supply ofenergy, we produce and process oil andgas. We do this as efficiently and safely aspossible. We look for innovative solutionsthat lead to a win-win situation for OMV,society and the environment. Develop the gas business further: As it isthe cleanest fossil fuel, we will particularlyfocus on gas as an important raw materialfor generating electricity and heat inEurope. We will therefore put a specialemphasis on this area in our Strategy2021. Developing new sources of energy: Weuse our core competences to fosterenergy sources such as geothermalenergy, second-generation biofuels andinfrastructure for H2 mobility.

Financial Resourcefulness: To achieve prof-itable growth we must also act in a finan-cially responsible manner. So for us, Finan-cial Resourcefulness means:

Making the effects of responsible busi-ness measurable: With the support of sci-entists, we are developing suitable instru-ments, in particular key performanceindicators, processes and standards forour decision-makers. By measuring theeffects of our actions, we will be able tomake the best decisions in our core busi-ness for us and our stakeholders in thefuture. Responsible investment: We will evaluatethe opportunities of socially responsibleinvestment for OMV.

Human Resourcefulness

Natural Resourcefulness

FinancialResourcefulness

Securing futureenergy resources for the common

good



Our functional Health, Safety, Security andEnvironment (HSSE) strategy supports ourResourcefulness endeavors. Its target is tomake health, safety, security and environ-mental issues an irreducible part of our day-to-day business. The HSSE strategy formu-lates six strategic goals and promotes themby defining concrete objectives, which areset out in the following chapters. Our strate-gic HSSE goals are:

Establish HSSE as an integral part of OMVGroup’s company cultureProvide valuable, reliable HSSE data andanalyses to enable business decisionsthat improve performanceImprove health and ability to workthrough integrated health managementactivitiesPrevent accidents and ensure safe operationsProtect people, assets and reputation andensure business continuityMinimize environmental impact through-out the lifecycle



The CEO of OMV has overall responsibilityfor sustainability-related issues. He hasassembled the newly created Resourceful-ness Executive Team (RET) which meetsevery six weeks under the direction of CEOPetrom. In future this will be supported bythe Resourcefulness Advisory Group (RAG),still to be convened, and the central Corpo-rate Sustainability department, which wasestablished in 2011. The department isresponsible for the further development ofthe Resourcefulness concept, regular report-ing and communication as well as stake-holder management, internal and commu-nity relations, as well as social projects.

The Resourcefulness concept is designed togive OMV's responsibility and future orienta-tion a clear face both internally and exter-nally and to embrace all internal functionslinked to the three dimensions.

Organization

Concept Resourcefulness | Human Resourcefulness | Natural Resourcefulness | Financial ResourcefulnessOrganization


Stakeholder Engagement is an integral partof the Resourcefulness concept. Getting toknow the interests and views of our stake-holder groups helps us identify future chal-lenges and to constantly improve our per-formance. Our stakeholders includeinvestors, customers, employees, communi-ties, suppliers, authorities and others. Byengaging in dialog with all interested par-ties, our goal is to earn trust and build last-ing relationships.

Since 2010, we have been able to ensureefficient stakeholder management by apply-ing a customized database assisting man-agement and employees in identifying andreviewing relevant stakeholders and in man-aging our interactions with them across allour business activities. The roll-out of thisdatabase is ongoing.

In establishing the Resourcefulness conceptwe thoroughly integrated stakeholder con-cerns and their perception of OMV. In 2011,we conducted several stakeholder dialogsessions asking mainly NGO participants fortheir views on our strategic initiatives. Theirfeedback was both critical and constructiveand encouraged us to continue pursuing ourcurrent direction in the management of sus-tainability issues.

Furthermore, a stakeholder dialog forumtook place in Bucharest in November 2011.Debates were held on topics such as explo-ration, production and refining, addressingthe gas market deadlock and dynamizing thelocal electricity market.

As a member in a diverse set of sector-specific associations and broader initiatives,OMV contributes to the global fostering ofthe sustainability agenda. Selected affilia-tions are:

ARGE BiokraftAustrian Network for Sustainable ManagementAustrian Society of Automotive Engineers(ÖVK)Austrom – Österreichisch-RumänischeGesellschaft (Austro-Romanian Society)CedigazChatham HouseConcawe – CONservation of Clean Air and Water in EuropeEBEN – European Business Ethics Network, AustriaEnergy CommunityEurogas – The European Union of the Natural Gas IndustryEuropia – European Petroleum IndustryAssociationFederation of Austrian Industries (IV)GIIGNL (Groupe International des Importateurs de Gaz Naturel Liquefie)IGU (International Gas Union)IPIECA – International Petroleum IndustryEnvironmental Conservation AssociationMarcogaz – Technical Association of theEuropean Natural Gas IndustryNUMOV (Nah- und Mittelost-Verein e.V.)OENWE – Austrian Business Ethics NetworkOGP – International Association of Oil &Gas ProducersOME – Observatoire Méditerranéen de l’EnergieRenewable Energy in Central & EasternEurope, postgraduate MSc programrespACT – Austrian Business Council forSustainable DevelopmentRSPO – Roundtable on Sustainable Palm OilUNECE Gas CentreUNGC – UN Global CompactWEC (World Energy Council)

Stakeholder Dialog

Concept Resourcefulness | Human Resourcefulness | Natural Resourcefulness | Financial ResourcefulnessStakeholder Dialog


Human Resourcefulness

With the start of the Arab Spring, OMVsafely evacuated its expatriates in all coun-tries affected including Egypt, Libya, Tunisiaand Yemen. Although it was not possible tocontinue operations, OMV took socialresponsibility and continued to financiallysupport its local employees. In addition, asocial initiative to provide psycho-socialhealth treatment for the traumatized younggeneration in Tripoli was established inLibya.

By the end of 2011, OMV completed thehealth risk assessment of all workplacesgroup-wide. All health hazards were evalu-ated, trends identified and mitigation meas-ures established. With the participation of“emergency simulators” (specifically trainednurses), 130 medical emergency exerciseswere conducted in Romania in 2011 in col-laboration with all internal and externalemergency resilience groups. Similar train-ings took place in Austria. Special healthpromotion initiatives focused on preventivescreening for spine and joint disorders. Vac-cination campaigns adapted to specific localand epidemiological situations were carriedout in various countries.

HSSE training and a maturing reporting cul-ture are considered key factors in furtherimproving safety performance. In 2011,nearly 220,000 records and reports wereentered into the group-wide incident report-ing tool “Think:Ahead CARE”, including107,000 findings, hazards and near misses(an increase of 48% vs. 2010); over 76,000measures were assigned and 86% com-pleted on time. A best-practice, patentedtraining program entitled “Stepping, Lifting& Manual Handling. Working at heights”was provided to more than 7,100 PetromE&P employees. Initial results indicate that

the number of incidents decreased signifi-cantly in the months following training pro-vision.

In terms of its diversity strategy, OMV madesome significant progress in 2011. The ratioof female Senior Vice Presidents almost dou-bled from 6% to 12%; our target remains18% by 2015. In addition, the ratio of non-Austrian Senior Vice Presidents increasedfrom 20 to 33%.

Natural Resourcefulness

Since 2008, R&M has implemented meas-ures to reduce greenhouse gas emissionsthat account for total annual savings ofaround 200,000 t CO2 equivalents. For theongoing restructuring of the Petrobrazi refin-ery the potential to make further cuts ofalmost 200,000 t CO2 equivalents have beenidentified. Reductions of greenhouse gasemissions were also achieved in E&P opera-tions in Kazakhstan and Romania. Great sav-ing potential is seen in flaring reduction inTunisia due to the planned South TunisiaGas Pipeline. During the Schwechat refin-ery’s stoppage in 2011, the lowest flaringtime during a turnaround of the petrochemi-cal part of the refinery was recorded.

Efficient water management is a key issue inOMV’s operations. In 2011, the sewage sys-tem at the Petrobrazi refinery was partlyrenewed to minimize the amount of treatedwastewater. The project design for revamp-ing the wastewater treatment plant wasfinalized. Scarcity of water resources is aspecific challenge in various OMV’s explo-ration sites such as the Yemeni desert.There, OMV installed a new wastewatertreatment unit in Block S2. This will enablethe use of treated water for irrigation anddust control.

Key Topics in 2011

Concept Resourcefulness | Human Resourcefulness | Natural Resourcefulness | Financial ResourcefulnessKey Topics 2011


To use equity gas for producing electricity,OMV is building two new gas-fired powerplants. In 2011, the construction of the 860-MW plant in Brazi (Romania) was completed.Full commercial operation is expected tostart in H2/12. The 870-MW plant in Samsun(Turkey) is under construction.

The windfarm in Dorobantu (Romania)started commercial operation in 2011. It consists of 15 wind turbines with an overallcapacity of 45 MW mitigating 11,700 t CO2

emissions.

Financial Resourcefulness

In 2011, OMV started initiatives to makeresponsible business behavior measurablein financial terms. Good governance andcomprehensive risk management con-tributed to the overall business performance.

To make the efforts of responsible manage-ment measurable, OMV will develop theappropriate tools. Our aim is to be able tomake more use of these criteria in the futureto assess decisions to be made in our corebusiness.

Process Safety Management contributes significantly to OMV’s business and financialperformance by means of proactive losscontrol management. It is concerned withthe proactive identification of and safeguard-ing against releases of hazardous sub-stances. In 2011, there was a focus on thedefinition and maintenance of safety criticalelements in all offshore and onshore assetsof the three business segments. Other activi-ties included process safety managementwalk-around trainings, the implementationof process safety key performance indicatorsand the reporting of process safety hazardsand incidents.

Regarding emission trading, OMV maintainsa low-risk trading strategy. In addition to thetrading of EU allowances, we optimize theOMV carbon portfolio where necessary bymonitoring the possibilities of using creditsfrom flexible project-based mechanisms,such as the Clean Development Mechanism(CDM) and Joint Implementation (JI), as pro-vided for under the Linking Directive.

Concept Resourcefulness | Human Resourcefulness | Natural Resourcefulness | Financial ResourcefulnessKey Topics 2011


With the Resourcefulness concept we areable to build upon a very solid foundation.Over the past years OMV has always been afrontrunner in terms of sustainability issues.However, our business environment ischanging dramatically. Social, economic,political and environmental conditions con-front our business with new challenges forthe continuation of our business. The scar-city of resources is becoming an increasinglypressing issue.

This is why we will continue our journeytowards long-term shared value and successfor OMV, society and the environment. Forthis reason, governance of all issues related toResourcefulness will be provided by thenewly created corporate function, while linemanagement continues to be responsible for

the results of our activities and social projects.In 2012, we have started five strategic initia-tives that will drive our Resourcefulnessefforts in the years to come:

Skills to succeed: We promote the skills peo-ple require to be successful. We strengthenour employees’ creativity and social compe-tence, and we invest in the economic devel-opment of the communities in which weoperate by stimulating local content. Wesupport educational initiatives in the fields of energy and entrepreneurship in our coremarkets.

Eco-Efficiency: In order to secure the supplyof energy, we produce and process oil andgas. We do this as efficiently and safely aspossible. We look for innovative solutions

Roadmap 2012 and beyond

Concept Resourcefulness | Human Resourcefulness | Natural Resourcefulness | Financial ResourcefulnessRoadmap 2012 and beyond

Employees Care!

Innovation andsocial competence

Resourcefulness

Controlling

KPIsMaking the effectsof responsible busi-ness measurable

Local contentVocational trainingEducational initiatives

Water managementCarbon management

GeothermalBiofuelsH2 Mobility

Skills to Succeed

Eco-Efficiency

Eco-Innovation

Resourcefulness Roadmap


that lead to a win-win situation for OMV,society and the environment. As the cleanestfossil fuel, we will focus even more on gas asthe most important raw material for generat-ing electricity and heat in Europe. Anotherparticular focus of our endeavors in the fieldof eco-efficiency is on water and carbonmanagement.

Eco-Innovation: We use our core skills to tapinto alternative energy sources such as geo-thermal energy, second-generation biofuelsand infrastructure for H2 mobility.

Employees Care!: We motivate employees toactively engage into driving responsible andsustainable business behavior. We encour-age them to take responsibility for Resource-fulness projects and come up with their ownideas, using their ingenuity and creativity tocreate win-win situations for our stakehold-ers and the benefit of our company.

Resourcefulness Controlling is our way ofmeasuring the effects of our actions. Thisenables us to make the best decisions forOMV and our stakeholders in the future. Forthis purpose we are planning to develop aKPI-set that will help us manage Resource-fulness throughout our organization. Addi-tionally, we aim to develop methods andtools to make the effects of Resourcefulnessmeasurable.

Concept Resourcefulness | Human Resourcefulness | Natural Resourcefulness | Financial ResourcefulnessRoadmap 2012 and beyond


Our Way to Human Resourcefulness

People are the most important resource for achieving long-termsuccess. So for us, Human Resourcefulness means:

Respectful relations with all our stakeholders.Providing skills to succeed by strengthening our employee’screativity and educational initiatives in our core markets.

We are committed to treating all our stakeholders with respect. TheUN Global Compact with its ten principles forms the basis for ourethical behavior with regard to business ethics, diversity, health,human rights and safety.

We promote the health, ability to work and skills people require to be successful. We strengthen our employees’ creativity and socialcompetence, and we invest in the economic development of thecommunities in which we operate. We support educational initiativesin the fields of energy and entrepreneurship in our core markets. We ensure safe operations, protect people, assets and reputation and thus contribute to business continuity.



Educational Initiatives in Pakistan

In Pakistan, over the past years OMV has provided access to pri-mary schools for more than 3,000 rural children in operationalareas by establishing 75 village based schools. Poor infrastruc-ture and school facilities in Pakistan limit the possibilities foreducation and future employment. By constructing two to threeschool buildings every year and hiring local teachers OMV con-tributes to a better educational environment.

Additionally, the infrastructural upgradation support to themodel high school earlier established by OMV in Chundiko aswell as a Training & Resource Centre (TRC) for regular profes-sional support to teachers was continued during the year 2011.The Citizen Foundation (TCF) has almost completed the con-struction of the high school building supported by OMV throughits Joint Venture Fund in one of its operational districts. The pro-vision of electricity and a health support system for villagescomplements our infrastructural involvement.

Besides this OMV has access to education high on its agenda. To this end, OMV has set up several initiatives and programs.Among these are a training program for engineers and techni-cians and a skills training program for women. Furthermore adiverse set of scholarships is intended to generate more oppor-tunities for self-employment and access to schools for young-sters in areas where high schools cannot be established due tothe absence of infrastructure.

Technical Scholarship for Women

As a continuously growing international company we are con-stantly looking for motivated future employees. To proactivelymeet the challenges of technical skill shortages, OMV is increas-ing its efforts to support the advancement of young people, inparticular women in technical careers. OMV launched a scholar-ship program to inspire young women from our Austrian com-munities to take an engineering degree by providing financialsupport. The OMV Scholarship offers 15 female high schoolgraduates the opportunity to receive EUR 350 per month overthe entire period of regular undergraduate studies in a techno-logical discipline. Particular focus is placed on the promotion ofsocially disadvantaged students. Full details of the applicationprocess are to be found on our website.

Major Activities in 2011

Concept Resourcefulness | Human Resourcefulness | Natural Resourcefulness | Financial ResourcefulnessMajor Activities 2011


Enlargement of OMV Kindergarten

The OMV kindergarten opened near the new head office in Sep-tember 2009. Operated jointly with the organization "Kinder inWien", the kindergarten is attended by children of employeesfrom all OMV sites. In 2011 we expanded our OMV kindergartenfacilities, which provide daycare for up to 120 children on a sur-face area of over 1300m². The facilities include a playgroundwith fruit trees and bushes which can be used all year round.The opening times are geared towards working hours butextend beyond core time. The teaching staff at the bilingualkindergarten includes native English speakers.

Diversity Strategy 2020

Along with the OMV values, the Executive Board has defineddiversity as one of the high-level objectives for the Group. Thisincludes the development and implementation of a Group-widediversity strategy. We are currently concentrating on two majorareas: nationality diversity and gender diversity. Efforts arebeing directed at the highest possible management level as allother levels will automatically follow suit. Our target is toachieve a diversity mix at the Senior Vice President level of 18%women and 38% internationals by 2015, and 30% women and50% internationals by 2020. In 2011 we were able to significantlyincrease both gender and nationality diversity at Senior VicePresident level. With 33.3% international (22% in 2010) and 12%female (6% in 2010) employees at Senior Vice President level weare well on the way to achieving our targets. As a vital interme-diate step towards achieving our diversity targets, we aim tohave 30% females in all management development programs.Various initiatives such as the technical scholarship for youngwomen, the establishment of English as the company language,flexible working conditions for young mothers and fathers andthe enlargement of the OMV kindergarten are concrete meas-ures aimed at fostering diversity at OMV.



Human rights consulting visit in Tunisia

In October 2011, OMV conducted a human rights consulting visitin Tunisia. OMV Sustainability Team members and externalhuman rights consultants visited OMV premises in Tunis, Sfaxand in the OMV blocks in order to interview management,employees, contractors, local authorities, local communities andseveral other stakeholders. The aim was to evaluate the currentrisk exposure concerning human rights violations and compli-ance with the OMV Human Rights Policy and the OMV HumanRights Matrix. Structured according to the key categories of theresponsibility for human rights in the business context, the find-ings of the human rights consulting visit have triggered adetailed list of recommendations. The findings show that aware-ness of and the overall approach to human rights of OMVTunisia is good. Most areas covered by the Human Rights Matrixeither pose no problems or are being dealt with in a humanrights compliant and professional manner.

An immediate outcome of the human rights consulting visit isespecially beneficial to our female employees in Tunisia: mater-nity leave periods were extended and thus adapted to interna-tional standards, which are higher than in Tunisian legislation.However, two main areas clearly merit further attention: OMV’sapproach to its social environment, in particular communityrelations, and its relationship with contractors concerning work-ers’ rights. Correspondingly, one of the targets set after the visitis to create the post of a community relations advisor at OMVTunisia with a broad mandate of managing all relevant aspectsof community relations, in cooperation with and supported bythe line/project managers. Furthermore we plan to develop agrievance mechanism for dealing with claims of external stake-holders, especially communities, as well as a list of specific ten-der and auditing questions to be used for contractors providingoperational services to OMV field operations. We are well on theway to achieving all these targets.

Arab Spring

The year 2011 was characterized by political upheaval in Egypt,Tunisia, Libya and Yemen. The “Jasmine Revolution“ developedrapidly and unexpectedly into a deteriorating security situationwhich also impacted on OMV Group’s operations, people andassets. As a result we took the decision to evacuate our expatri-ates from these countries. In a joint effort, 169 expatriates fromOMV and third parties, including children and spouses, weresuccessfully evacuated without any major incident and returned



soundly to Austria or their home countries (Tunisia: 65; Egypt: 4;Libya: 32; Yemen: 68). Our business in the various countries wasalso secured. Full repatriation was possible in Tunisia after sev-eral weeks. We did face severe problems during evacuation:communication was lost when the Libyan government shutdown mobile networks and satellite communication, and roadtravel became increasingly dangerous, especially in the LibyanDesert and towards Benghazi – a problem which affected manycompanies. Despite these difficulties we were able to organizeall the necessary flights and documents, especially throughclose collaboration with organizations and authorities in Austriaand abroad. The fact that all emergency evacuations were suc-cessful and expatriates came to no harm demonstrates that ouremergency and crisis management system is effective. Althoughno commercial operations could be carried out, OMV acted onits social responsibility and continued to financially support itslocal employees. In addition, a social initiative to provide psy-chological and social health treatment for the traumatized younggeneration in Tripoli was established in Libya.



Concept Resourcefulness | Human Resourcefulness | Natural Resourcefulness | Financial ResourcefulnessTargets

Targets

Human rights

What we will do in 2012 (and after)

Develop Code of Conduct in Urdu for Pakistan

Implement recommendations on human rights according to human rights consultancy visit in Tunisia

Human rights self-checks in Iraq Region of Kurdistan, Romania, Pakistan, Kazakhstan

Human rights consultancy visit in Iraq Region of Kurdistan

Human rights training of supply chain auditors

Human rights classroom training for employees and contractors in addition to e-learning tool

Planned for 2011 (and after) What we did in 2011

Human rights training and awareness

Human rights e-learning tool in Romanian andTurkish

Roll out Code of Conduct in Urdu for Pakistanventure

Set up human rights training programs forPetrol Ofisi, private security forces in Samsunand other G&P operations

Train security forces in the Kurdistan region ofIraq

Human rights e-learning tool: Romanian version developed and rolled out in Romania;Turkish version postponed to 2012

Roll out Code of Conduct in Urdu for Pakistanventure was postponed

Human rights training in Petrol Ofisi & Samsun(Turkey) is still work in progress and has notbeen conducted yet

Kurdistan: Security briefing in the framework ofa visit of Corporate Sustainability staff tookplace

Romania: Human rights training program conducted for security forces

Tunisia: Human rights consulting visit conducted

Process of human rights check was set up

Inclusion of human rights elements in all supplier audits

95% of supplier audits to include human rightselements and HSSE criteria

95% of supplier audits included human rightselements and HSSE criteria


Community Relations


Austria Comprehensive and ongoing stakeholder information, discussions and meetings will becarried out in the region of OMV Austria Shale Gas Project Area

Romania Implementation of selected community projects on the basis of the results of the social riskmapping conducted in 2011

Turkey Ensure regular and proactive stakeholder consultation in Samsun region supporting thefinalization of OMV Samsun power plant

Projects improving local skills and livelihood opportunities will be developed

Libya Opening of “OMV Libya Youth Center“ in Tripoli planned

Pakistan Start implementation of joint school development project with Hilfswerk international inthe new Mehar block

Final stage of PPP project “Hepatitis” cofunded by Austrian Development Agency

Local skill enhancement projects will be further developed

Tunisia Pilot project grievance mechanism for local communities in Tunisia

Development of community relations projects with focus on local content and vocationaltraining in South Tunisia

Yemen Community relations project plans will be reviewed in line with a possible re-entering intothe operation area in the first half of 2012


International community relations initiatives

Comprehensive training on OMV’s sustainabilityapproach in Kazakhstan and discussions withrelevant stakeholders

Review existing set-up of community develop-ment projects in Pakistan after acquisition ofnew blocks

Kazakhstan initiatives were postponed

Pakistan: Review conducted; project implemen-tations to be rolled out starting 2012

Turkey: Kozluk OMV Anatolian Teacher TrainingHigh School as key project in line with OMVSamsun power plant project

Pakistan: Educational initiatives further developed

Libya: Social initiative to provide psycho-socialhealth treatment for the traumatized young gen-eration in Tripoli was initiated; operations to bestarted in 2012

Professionalization of the stakeholder management system

Develop our stakeholder database further

Identify and classify stakeholder groups in moredetail

Define criteria to prioritize stakeholder groups

Roll out stakeholder database throughout theGroup to gather data and trace and report onstakeholder interaction

Stakeholder Database implemented with focuson Petrom in 2011

Classification of stakeholders in Petrom conducted: 3 key criteria defined; 11 groupsidentified; 16 guidelines issued

Effectiveness of community relations

Track downtimes associated with communityissues, analyze root causes, and define improve-ment measures

3 Tracking of downtime and mapping the risks inrelation with communities started in 2011. Firststep was the implementation of the category ofcommunity relations incidents in our online inci-dent reporting system in Petrom. These stepsensure a consistent and transparent tracking,reporting and monitoring of community inci-dents.




Employees


Diversity Continue program

Increase number of female managers

Implement technical scholarship for women

Job Rotations Further increase job rotations by 20%

E&P graduate program Recruit > 100 graduates for E&P in all E&P countries

New Technical Training Center Petrom Establish a concept and project plan for the new Technical Training Center

Employees’ Integrate sustainability projects in individual target planning Sustainability Engagement and skill development programs within OMV


Diversity

Start implementation of the diversity strategyaction plan

A concept for a technical scholarship for womenhas been developed

An increase of both gender and nationalitydiversity at senior management level has beenachieved

Strategic Workforce Planning

Strategic Workforce Planning Project, aiming atensuring the availability of adequate humanresources for OMV in the future, has beenstarted for E&P

Realization of HR’s new role New HR organization

3 Implement the new HR organization; analyzeand redefine all international HR processes

New HR organization has been implemented

All international HR processes have been analyzed and redefined

Human Capital Management (HCM)

Conduct HCM survey Group-wide

Develop action plan based on the results of thesurvey

HCM survey conducted throughout the groupwith 16,889 participants in 25 countries, groupresult above external benchmark, participationrate 69%

Job rotations

Continue to increase the number of job rotationsbetween business segments

Number of job rotations between business segments increased to 77

Integration of Petrol Ofisi

Set up language and cultural training for Turkey Language and cultural training programs forTurkey in which 22 employees participated havebeen set up

3 Petrol Ofisi employees already expatriated tothe group

15 employees in major OMV training programs


Health


Continue to develop health risk register 3 Review lessons learned for continuous improve-ment in health risk assessment

Implement and monitor OMV Health Standard 3 Follow-up on action plans from the audits toensure continuous improvement

3 Carry out spot audits to ensure high standards

3 Integrate Petrol Ofisi in this system

Health promotion activities 3 Develop material for two major health promotioncampaigns on ergonomics and healthy eating

Continue emergency and preventive medicine training 3 Follow-up on the implementation of recommen-dations made during the Medical EmergencyResilience Audit

Share knowledge 3 Develop a database for medical issues


Develop health risk register

3 Once additional medical staff have been trained,all remaining employee workplaces will be riskassessed

3 All clinics to be risk ranked and audited, startingwith those at highest risk; action plan

3 A database was developed, the final workplaceswere assessed and initial conclusions drawn

3 All clinics were audited and local action plansdeveloped

Implement and monitor the OMV Health Standard

3 Continue implementation of the Health Standard and status monitoring

3 All clinics and procedures were audited and gapanalyses were carried out

Health promotion activities

3 Specific focus on cardiac prevention, back pain,and prevention of ergonomic risks

3 Health promotion activities for employees werecarried out with high participation rates

Continue emergency and preventive medicine training

3 Continued emergency and preventive medicinetraining

3 Emergency drills and special medical assistanceprograms were implemented

3 Intensified training of medical staff and first aidresponders

Harmonize and improve medical infrastructure

3 Ongoing harmonization of regulations andrefurbishment of clinics

3 Ongoing harmonization of regulations andrefurbishment of clinics



Safety


Continue to improve safety performance and standards 3 Improve the HSSE performance of contractorsby close monitoring and interaction: all newhigh/medium risk contractors with KPIs and targets

3 Roll-out and training on Golden Rules, a guid-ance for safe working based on a simple set ofeight rules

3 Implement IVMS concept across Group

3 Extend “Stepping, Lifting and Manual Handling.Working at Heights“ training initiative group-wide

3 Harmonize permit to work system across Group


Continue to improve safety performance and standards

3 Knowledge sharing to ensure proper follow-upof incidents and dissemination of lessonslearned

3 Properly investigate high-potential incidents(HiPos) establish actions and close out

3 Extend IVMS (In-Vehicle Monitoring System)concept across Group and harmonize drivingpolicies and standards

3 HSSE Alerts developed and disseminatedgroup-wide for lessons learned

3 Improved reporting of high potential incidents(HiPos) implemented and HiPo Review Boardset up

3 Incident investigation training programs deliv-ered to senior managers and safety experts

3 IVMS concept extended and transportation con-tractors forum established and held

Security


Enhance security and resilience management 3 Advice and provide training to security managers across OMV Group

3 Implement a system for improved sharing ofsecurity information

3 Conduct crisis and resilience exercises as wellas self-assessment of high-risk country emergency preparedness


Enhance security management

3 Harmonize security standards with a focus onsocio-politically challenging countries of operation

3 Developed and implemented Group securitymanagement: organizational set-up and trainingprograms



By signing the UN Global Compact, OMV

has documented its fundamental commit-

ment to respecting, fulfilling and supporting

human rights within its sphere of influence.

OMV views and applies human rights as a

means of balancing the different interests

and needs of all relevant stakeholders in a

practical and culturally sensitive way. A cor-

porate human rights master plan was drawn

up in 2011, in the light of Prof. Ruggie’s

guiding principles. Its focus is on aware-

ness-raising, due diligence and grievance

mechanisms for communities.

Human rights management system

OMV's commitment to human rights is ahigh-priority aspiration which it seeks to ful-fill systematically. Over the last few years wehave been able to develop our human rightsmanagement system and implement a com-prehensive matrix covering our businessprocesses. The human rights managementsystem was developed in close cooperationwith external experts. Its key elements arethe OMV Human Rights Policy and the OMVHuman Rights Matrix.

The OMV Human Rights Policy was adoptedby the Executive Board in 2007. It is basedon the OMV Code of Conduct and sets outthe principles of our understanding of, andresponsibility for, the protection of humanrights in our business environment. In accor-dance with the commitments set out in theUN Global Compact, OMV respects, fulfillsand supports human rights within its sphereof influence, as well as seeking to avoid therisk of complicity in human rights violationsas understood under international law. TheHuman Rights Policy is the normativeumbrella for the management of humanrights issues as part of our operations.

OMV’s specific human rights responsibilitiesare contained in a Human Rights Matrix,derived from the UN Global Compact andthe Business Leaders Initiative on HumanRights.

Responsibilities

Any activity undertaken by OMV entailspotential risks and opportunities in the humanrights area. These will vary from country tocountry. Collecting baseline informationabout the social conditions in the countriesin which we operate is the first step we takewhen we prepare to take decisions about ourbusiness activities. This obligation is theresponsibility of project managers, generalmanagers of local OMV companies and linemanagers. They are supported by companyexperts and consultants. The CEO of OMVbears ultimate responsibility for sustainabil-ity management, including human rights.

Risk assessments

We have developed and implemented anumber of tools to evaluate the humanrights situation and enforce commitment tohuman rights in our areas of operation. Tomanage our human rights risks we gather asmuch information as we can on the socio-economic conditions in a country or an areawe are considering entering. The OMV “NewCountry Entry Self-Check” is a checklist usedto estimate the human rights situation inpotential operating areas. It helps identifyand avoid the risk of involvement in humanrights violations before entering a new coun-try or a new project. All investment deci-sions requiring Executive Board approvalundergo a mandatory sustainability evalua-tion that includes human rights aspects.

Human Rights

Concept Resourcefulness | Human Resourcefulness | Natural Resourcefulness | Financial ResourcefulnessHuman Rights


There were no practices identified in termsof child or forced labor. Clauses forbiddingchild and forced labor are part of the con-tract with our suppliers and contractors. Inthe supply chain audits carried out for OMVby external auditors, and in the humanrights consulting visit carried out in 2011 no such issues were identified.

The human rights analysis draws on reportsby reliable NGOs such as Amnesty Interna-tional and Human Rights Watch, as well asreports by and about companies that areactive in the area. If necessary, strategies aredeveloped that ensure compliance with ourCode of Conduct and Human Rights Policy.In existing projects and countries where weare already active, we carry out case-by-caseconsulting visits with a focus on human rights,together with external human rights experts.

Suppliers

In order to actively foster human rights inour sphere of influence, we have developeda mandatory human rights questionnaire forstandard OMV supplier audits and havetrained auditing teams how to use it. In 2011we launched a software that bundles all therelevant information on our “A“ suppliers.Of the 512 “A” suppliers with whom 80% ofOMV Group’s purchasing volume is sourced,

19 companies were selected in 2011 for acomprehensive audit, including compliancewith human rights criteria.

In 2011, a Human Rights training programwas conducted for security forces in Roma-nia. The aim was to maintain and raise thelevel of awareness, especially in this impor-tant target group. This training program,conducted by an external human rights con-sultant, was based on the standards recom-mended by the UN Global Compact andOMV Human Rights Matrix. It was ourresponse to the problem of high fluctuationof our security personnel, also in view ofseveral newly tendered and contracted secu-rity companies. The training program wasprovided for 15 representatives from sevensecurity companies as well as 11 OMVPetrom managers involved in security and22 Petrom managers from different depart-ments.

More than 96% of all our contractors andsuppliers comply with our Code of Conduct.An external human rights consultant togetherwith OMV management is providing humanrights trainings for security forces. Also, CSRsupply chain audits including human rightsare carried out by an external auditor.


Human Rights Trainings held in 20111

Where When Who took part

Romania Nov 2011 Contractors (security forces) and staff

Vienna Sept 2011 Staff

1 Altogether 55 employees (0.18% of total workforce + employees using the e-learning tool) participated in the listed human rightstraining programs in 2011, including 15 representatives from 7 security companies.


Training programs

As in the years before, OMV continued toprovide training courses and workshops toraise human rights awareness both inter-nally and externally in 2011. An essential ele-ment here was to provide an explanation ofOMV’s Human Rights Matrix. The functional-ities of OMV’s Human Rights Self-Checks,OMV’s Country Entry Checklist and the humanrights section of OMV’s supplier audits wereimportant training topics. Other key issueswere the basic principles of the OMV Code ofConduct and our approach to sustainability.

In 2011, human rights awareness trainingwas provided both face-to-face and using oure-learning tool launched in 2010. By the endof 2011, this tool had also been rolled out atPetrom, enabling employees to undergo indi-vidual web-based training in German, Eng-lish and Romanian. The tool is available onour Intranet, so most of our employees haveaccess to this e-learning tool.



Due to the very nature of its operations,

OMV has a considerable impact on the local

communities of the countries in which it is

active. Typical E&P activities, for example,

are highly visible to the local population and

include seismic operations, drilling activi-

ties, as well as the construction of pipelines

and operation of processing plants. All these

operations have a significant impact on local

communities. With all its efforts in the field

of community relations, OMV aims to estab-

lish and maintain harmonious relations with

all its local stakeholders based on mutual

respect and trust.

Management approach

OMV works in communities ranging fromfishermen in the Barents Sea to tribes in theYemeni desert and farmers in the vicinity of Gänserndorf. OMV applies a proactiveapproach in its involvement with local com-munities.

The community relations managementprocess ensures that social risks are care-fully considered in the areas of its opera-tions. Claims and demands are taken seri-ously and discussed in order to findsolutions and agreements. The process alsosupports the identification of communityneeds and planning of community projectsbased on local needs. OMV believes thateconomic development helps empower localcommunities and in future it will supportthose initiatives that help local communitiesto improve their economic conditions.Group-wide community relations require-ments are defined in corporate directivesand standards.

In order to strengthen our relationship withlocal communities and authorities, a localcouncil model (KoGeB) is established forexample in Kozluk. KoGeB is a community-based organization built around a partner-

ship between the Kozluk community, thelocal authorities and local business and pro-vides a forum to support good decisions andactivities of common interest.

Monitoring resettlements is part of commu-nity relations management. In 2011 – in par-ticular during the acquisition of new assetsin Pakistan and Tunisia – no resettlementshave been caused by OMV activities.

Grievance mechanisms

To ensure that claims and demands aretaken seriously and discussed in order tofind solutions and agreements grievancemechanisms are part of our community rela-tions management process. For our powerplant project in Samsun/Kozluk, Turkey wehave established a structured grievancemechanism already in 2010 to handle com-plaints from local communities both com-prehensively and transparently. Local stake-holder complaints such as disturbance anddamage due to heavy truck transport arereported and discussed with managementand the respective compensations are pro-vided.

In September 2011, a new instrument – Griev-ance Management System (GMS) – wasfinalized and implemented in OMV Petrom.In 2011, a total number of 1,734 grievanceswas recorded and monitored using thisinstrument. In countries where it is legallybinding for filling stations, for example,OMV has also established structured griev-ance mechanisms. In other countries actionstill needs to be taken.

Local value creation

There are no corporate directives that explic-itly stipulate or promote the use of local sup-pliers. However, local spending with our “A“suppliers nearly reached 72% of total expen-diture. OMV classifies as “A“ suppliers those

Concept Resourcefulness | Human Resourcefulness | Natural Resourcefulness | Financial ResourcefulnessCommunity Relations

Community Relations


suppliers and contractors which in 2011accounted for 80% of the total purchasingvolumes of the procurement departments inthe Group (Petrol Ofisi excluded). The pro-curement process is organized on a material-specific basis: whether or not contracts canbe issued locally depends heavily on theproduct or materials involved, with localavailability and quality being key factors. Dif-ferent contracts are concluded in the variouscountries but the focus is on creating a localsupply chain, particularly in certain non-OECD countries.

Creating local employment opportunitiesand using in-country supply companies arejust two of the many examples of how a sus-tainable business environment can be cre-ated, which is equally important in bothindustrialized and emerging countries. Forinstance, E&P is managing joint venturesthat will be investing high amounts in indus-try and infrastructure in Tunisia, and OMV isone of the largest international E&P compa-nies in Pakistan, where it employs more than420 local employees. E&P is aware of thefact that it has numerous different stakehold-ers in all its operation sites and it maintainsan active dialogue with them all.

With our participation in major gas infra-structure projects such as Nabucco and liq-uefied natural gas terminals in the Nether-lands, OMV’s contribution to securing thesupply of gas to Europe is significant. At the

same time, the G&P business segment cre-ates a direct, positive economic impact inthe regions where its projects and invest-ments are located, e.g. by employing localmanpower and using local suppliers. Oneexample is the Samsun project in Turkey, acombined cycle gas-fired power plant(CCPP), for which we supported localemployment policy: here, catering and emer-gency services were provided by local sup-pliers and the municipality of Kozluk, forexample. Management of the CCPP Samsunproject provided an ambulance and a fire-fighting truck to the local municipality, whichhires and pays local residents to operate theemergency services. This is just one exam-ple of how local job opportunities were cre-ated in addition to the jobs related directly tothe construction of the power plant.

Social performance

Large companies depend on people’s trust.For OMV to continue its successful growth,we need to gain and retain not only the trustof our customers, investors and employeesbut also that of the local communities inwhich we operate. We do this by initiatingand supporting social projects on a localbasis. In this way we create value for thecommunities, thereby maintaining our excel-lent reputation. We do so by carefully evalu-ating potential partners and suppliers as wellas consulting with NGOs for our collabora-tive efforts.

Concept Resourcefulness | Human Resourcefulness | Natural Resourcefulness | Financial ResourcefulnessCommunity Relations


OMV employs over 30,000 people world-

wide. Their performance is responsible for

our success. High safety and health stan-

dards, fair pay and flexible employment

models create a positive work environment,

making OMV an employer of choice. In ful-

filling our responsibility towards our

employees and society, we are guided by

the principles of the international social

accountability standard SA8000. As a signa-

tory of the UN Global Compact, OMV

pledged to uphold further principles of rele-

vance to Human Resources and has included

these in corporate directives.

Management approach

In order to maintain our position as anemployer of choice for the best people:

We optimize and harmonize HR manage-ment systems, tools and efficiency acrossour international operations.We endeavor to strengthen our attractive-ness as an employer.We make sure we have the right talent inthe right job at the right time.We look for and reward superior perform-ance and leadership.We manage our corporate culture andorganizational development across theentire Group, building cross-divisionaleffectiveness and thereby leveraging anintegrated approach in stakeholder rela-tions.

The new HR organization was established inline with the new head office organization in2011 and has now been implemented; allinternational HR processes have been ana-lyzed and redefined. The results were posi-tive; the mixture of Business Partners andCompetence Centers is well appreciated inthe organization. In order to maintain effec-tiveness and internal dialog within ourorganization, we continued to increase thenumber of job rotations, with 77 imple-mented in 2011. With the integration of

Petrol Ofisi we set up language and culturaltraining programs for Turkey in which 22employees participated.

Responsibilities

OMV’s HR business partners and managersact as competent partners for executives,employees and employee representatives.One of their roles is that of sparring partnerand employee management advisor. Infor-mation exchange inside and outside thecompany keeps them up to date on bestpractices in modern HR management. It alsohelps them consistently handle comparableissues and problems across the Group. Therole of an HR manager also includes over-seeing the implementation of OMV Group’sdriving values.

HR supports employees at all stages of theircareers at OMV Group, with local manage-ment playing the most important role.Strategic decisions that have a bearing onthe entire company’s workforce are takencentrally. Similarly, where general issuescould have an impact on the Group, localmanagement is obliged to follow the guide-lines set down by Corporate HR.

Workforce and local employment

In 2011 the number of employees at OMVdecreased by approximately 7.4%. The rea-sons were mainly outsourcing activities atOMV Petrom. 96.27% of our employees arecovered by mandatory periods of noticeunder national employment laws or bargain-ing agreements for cases of necessaryrestructuring.

In the countries in which we operate, we tryto achieve a high percentage of local man-agement and staff. Because market condi-tions and job requirements differ from coun-try to country, the percentage is variable butgenerally exceeds 90%. Developing the localworkforce, especially in countries with a

Concept Resourcefulness | Human Resourcefulness | Natural Resourcefulness | Financial ResourcefulnessHR Management

HR Management


shortage of skilled workers, is one of OMV'shighest priorities. Local graduate and expertdevelopment programs have been initiatedin several countries.

In 2011 OMV started a strategic workforceplanning project. Its aim is to establish aneffective business process for the alignmentof our business and HR strategies in order toensure availability of adequate humanresources for OMV in the future. We thusadopt a long-term perspective on our work-force and respond to future demand both bypositioning OMV as an employer of choiceand starting initiatives such as our inte-grated graduate development program, aim-ing at consistent, fast-tracked developmentof employees to an expert level as well asfostering commitment, networking and inter-cultural exchange.

Rights and obligations

The rights and obligations of our employeesare set out in labor contracts. They arederived from various company agreements,collective bargaining agreements and locallyapplicable policies. Nearly all of our employ-ees – 99.86% – have the right to exercisetheir freedom of association and collectivebargaining. For 99.64% of our employeesminimum wages or salaries are fixed by lawor agreed upon in collective bargainingagreements. 87.44% of our employees arerepresented by local trade unions or workscouncils.

Equal opportunities

Our commitment to providing equal oppor-tunities for all employee groups in all recruit-ment processes, company procedures andemployment contracts is contained in thecorporate Antidiscrimination Directive. Thisprinciple applies throughout the entireemployment period from hiring to termina-tion. When a complaint is filed under the

directive, we are committed to giving theemployee the support required as far as islegally possible.

The principle of equal remuneration for menand women for equal work is anchored inthe OMV Antidiscrimination Directive. Thelevel of compensation is based on theemployee’s function and management levelas well as skills and professional experience.Compliance with the directive is reviewedannually by internal auditors.

As of January 1st, 2010, OMV madeallowance for legislative changes in the areaof registered partnerships in Austria whichpermit same-sex couples to enter into a civilunion. For the area of validity of the new Acton Registered Partnerships ("EPG"), OMVconcluded a framework agreement whichputs same-sex partners on an equal footingin terms of labor claims. In addition to theexisting instances regulated by law or collec-tive agreement, equality of status was thusextended to include company retirementregulations and other provisions relevant tothe claims of marital partners.

Global People Survey

We maintain ongoing dialog with employeesto find out what works well in their jobs andidentify room for improvement. EmployeeEngagement is monitored by conducting thegroup-wide HCM Global People Survey atregular intervals. An important integratedcomponent of HCM is that management andstaff get together to analyze and discussEmployee Engagement Drivers, topics rang-ing from diversity to value implementation.

In 2011, we conducted the HCM surveythroughout the Group. As “HCM” stands for“Have your say. Commit to change. Makethings better.” the goal was to learn moreabout our employees’ opinions on our com-



pany, and their relationships with co-workersand managers in order to together suggestimprovements and implement activities tomake things better. The survey was volun-tary and anonymous. In 2011, 16,889employees from 25 countries participated in15 languages.

The survey’s results have been summarizedin the so-called "Engagement Index". Thisindex measures employee engagement andshows how motivated, enabled and ener-gized employees are in delivering their bestperformance. The OMV Group "EngagementIndex" reached 87% and represents a goodoverall result, being 5 points above theglobal benchmark for our industry (GlobalOil & Chemicals benchmark).

Benefits

For several years, OMV has offered companypension plans to employees in Austria andGermany. Refining and Marketing (R&M)introduced pension plans in the CzechRepublic and Slovakia in 2008. Since 2009,OMV Group has had enhanced insuranceprotection for expatriates and their accom-panying family members worldwide, regard-less of origin or nationality. In addition toproviding comprehensive private healthinsurance coverage, the company insuresemergency treatment, medical evacuation,provision of medical information, etc. Since2010, OMV Group business travelers havebeen covered by this insurance as well, sinceit includes comprehensive business travelhealth insurance worldwide on a Groupbasis.

When OMV moved to its new head office in2009, the OMV Group Works Councilreached an agreement with managementregarding partial (50% gross) reimbursementof public transportation costs incurred bycommuting employees. Employees working

at the head office complexes in Vienna andBucharest have access to free bottled water,coffee and tea in a "Coffee & More" arealocated on each floor.

Work-life balance

Taking the needs and wishes of our employ-ees into consideration, OMV has created awork-at-home option during periods ofparental part-time work in collaboration withthe Works Council. A “Home Office Agree-ment” enables male and female employeesto work half of their weekly working days athome and half at their respective OMVoffices so as to help make the early years ofparenthood easier for them.

In Austria, company agreements allowemployees to take up to a year off work. Asabbatical is not restricted to any particularpurpose. The model is for employees whohave been with the company for at least twoyears. A sabbatical can be arranged bymutual agreement, taking the company’sinterests into consideration.

Development and training

Over the last few years we have developedmany employee training and developmentprograms that are now well established andsuccessful. The introduction of the Perform-ance and Development System (PDS) was amajor step towards building a group-widejob performance and employee develop-ment culture. The PDS is a key communica-tion tool for cascading company goals andhelping individual employees implement thecorporate strategy. As a web-based systemfor the entire Group, the PDS ensures equalopportunities by harmonizing performanceand development discussions. It facilitatesmanagement across borders and affiliates,and considerably reduces complexity andcosts.



Providing high-quality apprenticeship train-ing is a key concern at OMV. At the end of2011, OMV had 100 apprentices in Austriaand 25 in Germany. We try hard to makeyoung people aware of the apprenticeshipswe offer and endeavor to present ourselvesas an attractive employer, as well as encour-aging women to take an interest in a careerwith OMV Group.

Idea management

Idea management provides our employeeswith a channel for submitting new sugges-tions and alternative solutions concerningproducts and services, improvement of com-petitiveness, working conditions, internalprocedures and processes, environmentalprotection and similar topics, thereby con-tributing to our company’s success. It alsopromotes cross-departmental entrepreneur-ial thinking and action. Innovative ideas fromour employees saved us EUR 1,597,835 in2011. In 2011, we paid out bonuses totalingover EUR 51,588.46 for valuable employeesuggestions and for not realized but interest-ing ideas the employees received non-cashgifts worth EUR 4,274 in recognition.



Health is a universal value so access to

healthcare must be universal. Every

employee benefits from our high occupa-

tional health (OH) standards and wide-rang-

ing health initiatives. Since sustainable suc-

cess depends on a healthy, motivated

workforce, health management makes a

fundamental contribution to our company’s

performance.

Our approach to occupational health

The health of our employees is a primaryasset and resource. In our HSSE Policy, wehave committed ourselves to promoting ouremployees’ physical and mental well-being.We want to ensure that our employees arehealthy and fit so that they can carry out thework assigned to them. Our objectivesinclude the roll-out of high health standardsharmonized group-wide and the systematicassessment and reduction of health risks.

The mission of health organization is to pro-mote good health by offering up-to-datemedical treatment, preventive health careand psychological counseling. The HealthManagement Department (HMD) team iscomposed of medical doctors with addi-tional expertise on occupational, interna-tional and public health, emergency medi-cine and health management which allowsus to act as a center of competence. Withtheir regular contributions on health topicsand practices, HMD and local experts sup-port line management in taking ultimateresponsibility for occupational health.

HMD also supports operational HSSE andmedical staff with state-of-the-art expertiseon all health-related issues. It acts at theinterface between work and health, servingOMV and its employees worldwide by pro-viding scientific evidence, providing work-related recommendations and setting the

standard for occupational health (OH)impacts – e.g. acceptable thresholds forinfluential factors.

Health audit 2011

Compliance to the health standard and thework procedures was audited during 2011.For this purpose an audit plan and auditquestionnaires were drawn up for local clin-ics and country health management and allclinics and medical providers were visited inall countries belonging to the Group.

Group-wide a 97.25% level of compliancewas measured. The audit revealed that cor-porate health regulations and internal workprocedures have largely been implementedand that the main medical activities are beingperformed adequately, based on sound com-petence. The high-quality services providedoften exceed the local legal requirementsand, in addition to standard medical care,employees have access to physical therapyand a wide range of preventive measures.

In countries with high risk exposure orremote areas, external medical providersoffer high-quality service on site. Ambu-lances, medical containers and medicalemergency response processes have beenupgraded to OMV standards in Kazakhstan.

Health Risk Assessment (HRA)

By the end of 2011, all workplaces through-out the Group had been assessed using astandardized approach. Health hazards wereidentified, their risk to our employees’ healthwas evaluated and appropriate control andrecovery measures were determined. A spe-cific database was set up to collect and ana-lyze the data, creating a basis on which toidentify trends and focus on areas forimprovement. Initial results indicate that mit-igation measures in place work well and

Concept Resourcefulness | Human Resourcefulness | Natural Resourcefulness | Financial ResourcefulnessHealth

Health


reduce the probability level of these healthhazards to ALARP (As Low as ReasonablyPracticable). Although technical safety andprevention measures are important andneed to be applied and constantly re-evalu-ated according to the highest standard pos-sible, personal awareness of health hazardsremains a key area of focus. Health riskassessment is a continuous process and willbe updated periodically to reflect changingworking conditions. Its procedure and scopeis constantly assessed using state-of-the-artevidence-based medicine.

Medical emergency resilience

In 2011, we focused on the assessment of allmedical emergency resilience activitiesgroup-wide, from first-aid training to evacua-tion, generating recommendations for theimprovement of medical emergency care.

Findings and recommendations includedmaintaining adequate numbers of trainedfirst aid responders, provision of first aidmaterials, development of local medicalemergency and evacuation plans and train-ing for medical staff in emergency medicine.As a result of the medical emergencyresilience audits, over 1,500 first aid respon-ders were trained in Romania. First aid train-ing was also provided in Austria, Iraq, NewZealand and Tunisia.

With the participation of “emergency simu-lators” (specially trained nurses) 130 medicalemergency exercises were conducted inRomania in 2011 in collaboration with allinternal and external emergency resiliencegroups. Similar training programs took placein Austria.


A newly built, modern OH clinic offering a broad range of services to the 2,500 employeesworking at the Bucharest headquarters was made available there in spring 2011. 118 medicalstaff in Romania was retrained in accordance with group-wide health standards and specificRomanian legal requirements with a strong focus on emergency training, provided by thelocal emergency service (SMURD).

Occupational Health (OH) in Romania


A round-the-clock psychological counselinghotline for emergencies is available toPetrom employees. Similar services are provided in Austria.

In 2011, the telemedicine project was final-ized in collaboration with SMURD (theRomanian Emergency Rescue Service).Petrom has supported the extension of thenational emergency telemedicine network toinclude 14 additional local hospitals and twoPetrom clinics, which now offer direct assis-tance by telephone and videoconferencingfrom the Dispatch Centre of the main emer-gency hospital in Bucharest. Local doctorsreceive support in making faster decisionson necessary evacuation and transport tospecialized clinics all over Romania. Besidesthis, Petrom donated three ambulance carsto SMURD.

Health Promotion Initiatives

Specific health surveillance and healthchecks provide the basis for developinghealth promotion activities. In 2011, a spe-cialized preventive screening program forspine and joint disorders was offered in Aus-

tria and Romania. Vaccination campaignsagainst tick-borne encephalitis, flu, hepatitis,tetanus and other illnesses, adapted to spe-cific local and epidemiological situations,were run in various countries.

Voluntary health checks on lifestyle-relatedhealth risks such as cholesterol, blood sugarlevels, nutrition, smoking and drinkinghabits were offered to our employees inmany countries. In 2011, over 23,800employees took part in voluntary healthchecks group-wide, empowering them tomitigate and control these risks proactively.Our local health teams ran specific healthprevention programs such as an intestinalcheck and prevention program in Austria;eye health checks in Austria and Romania;skin checks in Germany and Austria; nutri-tion sessions in Austria, Germany and Pak-istan – focusing here on health issues whilefasting during Ramadan; an alcohol informa-tion campaign in Germany; ergonomic train-ing in Austria and Romania; an anti-smokingcampaign and the promotion of physicalactivity in Romania with over 4,000 partici-pants.


Two major projects were developed in Romania. The spring campaign on healthy livingfocused on the dangers of smoking and provided support for those wishing to give up. Over1,200 employees participated in this project. Employees also had the opportunity to have thelevel of CO measured in their exhaled air, providing a good correlation with the individuallevel of smoking and potential health risks deriving from tobacco consumption. In theautumn campaign the focus was on promoting physical activity. Pedometers were handedout to employees and the campaign was again well received, with over 3,000 employees tak-ing part. The high participation rate was the result of active involvement of our medical staff,including face-to-face meetings with employees at the workplace, lotteries, the provision ofrelevant information for employees on the intranet and new printed information booklets.

Healthy living projects


Medical support abroad

A network of international doctors and clin-ics collaborate with OMV to provide medicalservice for our expatriates. Over 788 medicalexaminations of expatriates and their familymembers in 2011 helped ensure they werehealthy and fit for their tasks during deploy-ment.

Health and community relations

In 2011, together with the community rela-tions team, a project was developed whichaimed to support traumatized children inLibya. In Pakistan, local communities wereprovided with snake bite serum. Further-more, hepatitis B vaccination and the educa-tion campaign on hepatitis preventive meas-ures were continued with full support fromthe respective district governments and theAustrian Development Agency (ADA). In2011, nearly 5,500 persons were given allthree doses of hepatitis B, whereas morethan 6,000 persons were covered for twodoses and will have their third dose in 2012.More than 7,000 persons were screenedagainst hepatitis B during the year. The over-all project coverage is in 94 villages for boththe vaccination and education campaign. In Romania a limited volume of importantresources were allocated through the Mae-cenas Fund to enable ten employees toreceive medical treatment for severe medicalconditions outside Romania which is notavailable on national health insurance. Blood donation campaigns were organizedin Austria, Germany and Romania.


Creating a safe work environment for our

employees and contractors is one of OMV's

top priorities. We work hard to ensure safe

operations and prevent accidents based on

the standards laid down in our corporate

directives. We continue to train and

empower people to work safely, and we

apply hazard identification and risk manage-

ment practices to reduce incidents and

losses.

Our approach to workplace safety

All workplaces and processes must be safeand secure for OMV, our stakeholders andthe environment. We believe that all acci-dents are preventable. Group-wide safetyregulations, reporting, management toolsand training courses contribute to improvingsafety performance. We focus particularly ontransportation safety, contractor manage-ment and process safety. Safety is a linemanagement responsibility, supported byexpert advice. Leading and lagging safetyindicators are monitored on a monthly basisand provide input for management deci-sions.

Workplace safety

We did not succeed in reducing the numberof fatalities in 2011 as compared to 2010.Sadly, there were four work-related fatalitiesand three fatal commuting accidents: afteran explosion during maintenance work at amethanol tank at the Antalya fuels terminalin Turkey, a Petrol Ofisi employee and a con-tractor were killed. One OMV contractordriver lost his life in a roll-over road accidentin Yemen. Another contractor lost his life inan accident at a Petrom rig site in Romania(fall from heights). The fatal commuting acci-dents happened to a filling station partneron an Austrian highway and another in Bul-garia, and there was also a fatal commutingaccident involving a contractor of the Sam-

sun power plant construction site in Turkey.Of the seven persons who lost their lives,two were women.

In 2011, the LTIR for the entire Group, includ-ing Petrom and Petrol Ofisi, was 0.66 (2010:0.74) injuries per million hours worked foremployees; the figure increased to 0.68(2010: 0.56) for contractors.

By the end of July 2011, OMV in Pakistancompleted 10 million working hours withouta lost time injury (LTI) with an averagemonthly workforce of up to 2,000 employeesand contractors undertaking a range of com-plex high-risk activities, including seismicdata acquisition, drilling of wells, plant turn-arounds, numerous maintenance jobs andconstruction projects.

In Romania, the Petrobrazi refinery com-pleted 5 million hours without a work acci-dent by end of 2011. A substantial contribu-tion to this improvement was the “Safe intothe Future” initiative, an ambitious safetyprogram consisting of 15 projects, each ofthem having specific objectives and deliver-ables. Some of the sub-projects were final-ized at the end of 2011, others will continuein 2012.

The “Safe into the Future” initiative includedthe following aspects:

Implementation of an electronic work per-mit system, also covering contractor com-paniesA long term training conceptSafety training material for specific worksduring the refinery shut downCoaching sessions for managers andemployeesImplementation of a pre-start up reviewstandard Quantitative risk assessment study andrisk mitigation plan established

Concept Resourcefulness | Human Resourcefulness | Natural Resourcefulness | Financial ResourcefulnessSafety

Safety


Ex- zone maps reviewed and staff trainedregarding proper behavior in these areasCommunication material such as posterson gates and internal roads, stickers forhelmets and articles on a blog and in theemployee magazine.

Safety awareness and training

Safety training accounted for most of themore than 279,000 HSSE training hours pro-vided in 2011. During 2009 and 2010, 46 of58 work-related accidents occurred duringstepping, lifting, manual handling or work-ing at heights using incorrect techniques.For this reason Petrom initiated an importanttraining campaign dedicated to “Stepping,Lifting & Manual Handling. Working atHeights.” in 2011. The objective of the train-ing program was to teach best practices tothe employees involved in these activities ona daily basis and, thereby, reducing the num-ber of work-related accidents. The trainingmethod is patented by Petrom and includesa theoretical section and practical exercisesusing three movable platforms (“simula-tors”) that recreate real working conditions.Initial results show that the number of inci-dents decreased significantly in the monthsfollowing the training programs, as com-pared to the same period in 2010. Over 7,100E&P employees were trained in 2011 andfurther roll-out to other business segmentsis planned.

135 senior managers including ExecutiveBoard members participated in leadershiptraining programs with a specific focus onHSSE in 2011. These were also an essentialpart of the HSSE integration and develop-ment of Petrol Ofisi and its alignment withOMV’s HSSE principles.

Senior managers were also trained in inci-dent investigation in order to actively leadinvestigations and the actions close-outprocess.

On November 4th 2011, the OMV GlobalSafety Day took place for the first time withover 2,400 employees from all business seg-ments participating at 41 different locationsworldwide. Keynotes were given by mem-bers of the Executive Board. The goals of this day were to highlight the importance of safety culture for each and every individ-ual and to enable employees to discusssafety in an interactive environment. Theparticipants were shown the short film "IfOnly…“ describing three actual cases thatoccurred in OMV Group. The film shows theimportance of a safety-oriented attitude, theconsequences of not following certain sim-ple rules and the impact of such incidents onfamily and loved ones.

To make HSSE an integral part of OMVGroup’s company culture, measures toestablish a Group-wide harmonizedapproach in a corporate program with afocus on management have been intro-duced. A variety of training programs suchas a general introduction to HSSE, HSSE formanagers, information security and man-agement walk-around training were pro-vided, with a total of 700 participants. Spe-cific technical training programs, on ourreporting tools, for example, were also pro-vided for around 400 participants.

Proactively collecting reports about nearmisses, hazards and findings and drawingon assessments and lessons learned helpsus reduce incident rates and the likelihood ofan incident occurring in the first place. In2011, we systematically disseminated brief



descriptions of incidents and high potentialincidents (HiPo), including root causes, les-sons learned and photos in the form ofHSSE Alerts to promote dialog and con-tribute to changes in behavior.

Nearly 220,000 records (incidents, nearmisses, investigations, findings, hazards,assessments and measures) and reportswere entered in the “Think:Ahead CARE“reporting and management toolOver 107,000 findings and hazards werereported and followed upOver 76,000 measures were assigned and86% were completed within the scheduledtime frame23 HSSE Alerts were circulated via email,and published on the intranet and on bul-letin boards group-wide.

Integration of new assets

The fatal accident at the Antalya fuels termi-nal was a tragic lesson for the whole organi-zation and accelerated the integration anddevelopment of Petrol Ofisi’s HSSE organiza-tion. An independent external HSSE Manage-ment system audit identified the main areasof improvement. An action plan to closethese gaps was developed and its imple-mentation started immediately. A series of

site visits and hazard identification work-shops at the most relevant assets has led tothe start of systematic risk assessment. Par-allel to this an HSSE training campaign waslaunched including senior and line managersof Petrol Ofisi. Further training programswere provided on incident investigation(root cause analysis), defensive driving,management walk-around and first aid. Aspart of the integration of Petrol Ofisi, HSSEorganization was altered, with the HSSEmanager reporting directly to the CEO.

New assets in Pakistan and Tunisia wereacquired in 2011 with limited HSSE manage-ment or systems in place. We therefore heldleadership workshops, performed audits andprovided intensive training sessions to im-prove the situation, resulting in successfulintegration of the new assets in OMV’s HSSEmanagement system.

Contractor HSSE management

Contractors do an increasing amount ofwork on behalf of OMV. Though the conceptof outsourcing brings well-known benefits, it does not diminish our responsibility toensure that our contractors work to our standards and under safe conditions.


The achievement of OMV in Pakistan to have had no LTI since the end of 2009 would nothave been possible without the contribution of the contractors, who have played an impor-tant role in building up and maintaining a strong HSSE culture. Contractor management,especially relating to unskilled labor, is an immense challenge. OMV in Pakistan has tackledthis challenge by making contractor training an integral part of its business plans and byinvolving contractors as well as employees in all aspects including the HSSE incentive andreward scheme. According to this scheme, awards are given not only to employees but alsoto contractors based on their HSSE performance. Some HSSE awards include Best NearMiss and Hazard Reporting Awards, Star Driver Award, Safety Champion Award and BestContractor Award. This has served to foster a strong HSSE culture among the workforce.Proactive reporting has shown to be the other key factor that has helped OMV in Pakistan tobuild a safe working environment.

Contractor HSSE management in Pakistan


A review of OMV Group’s standard address-ing the management of contractors revealedsome gaps and indicated a piecemealapproach across the company. In alignmentand cooperation with the Procurementdepartment, the Corporate HSSE Depart-ment via its Safety Team revised and consol-idated this process resulting in the new Con-tractor HSSE Management standard. Thoughmany practices were in place, there was aneed to formalize the whole process andfocus attention on the operational aspects ofcontractor management. In addition, therequirement for assessing our contractorsaccording to high, medium and low risk withan integrated prequalification process has

been developed, thereby directing theappropriate level of management supervi-sion to the contractor. The concept of a Contract Holder has been formalized bymeans of the requirement to hold regularmeetings with the contractor, ensure thecontractor’s compliance with our manage-ment system, monitor the contractor’s per-formance based on Key Performance Indica-tors (KPIs) and act as a clear single point ofcontact within OMV. In 2012, the new Con-tractor HSSE Management will be rolled outand our employees and contractors will betrained to improve the performance of bothparties resulting in more efficient work beingdone safely.


In order to ensure safe and incident-free shutdowns in 2010 and 2011, the Schwechat refin-ery continued its "Safety Initiative 2010+". Special attention was paid to integrating contrac-tors by providing information and training on HSSE as well as by raising awareness ofunsafe working conditions and taking action to address them. The fact that the employees ofour contractors come from an increasing number of different countries and speak verydiverse languages poses new challenges. We implemented a system enabling communica-tion and safe working procedures despite the potential language barriers associated with theincreasing diversity of nationalities and mother tongues spoken by our contractors. Amongother things we had a safety induction film translated into 18 languages. During the shut-downs, external specialists on safety supported the workforce on site with their know-how.Thanks to these measures, 2010 and 2011 saw the best HSSE performance during shut-downs in the history of the refinery. In 2011, with about 800,000 additional working hours(97% contractors), we had only one LWDI (Lost Work Day Injury).

Safety Initiative 2010+ at Schwechat Refinery


Road safety

Having signed the European Road SafetyCharter in 2010, OMV Group committeditself to the UN Decade of Action for RoadSafety 2011 – 2020, for example by using in-vehicle monitoring technology and by pro-viding its drivers with theoretical and practi-cal training on how to prevent car crashes.

Petrom continued its road safety initiative:2,463 drivers underwent a two-day driving skills course that emphasized roadsafety for light vehicles. 1,602 E&P employees were trained in2011 for heavy vehicles. A speciallydesigned truck with built-in simulatorsand an inside training classroom visited12 different selected locations.

The Road Transportation Contractors’ SafetyForum was organized at Petrom in 2011.This event brought together about 80 partici-pants from Petrom, including the CEO andother members of the Executive Board, aswell as contractors in the road transportationservices.

In the Refining and Marketing (R&M) busi-ness segment in Petrom, a gap analysisregarding transportation safety was con-ducted and an action plan was drawn up toclose the gaps. After installing an in-vehiclemonitoring system (IVMS) in Petrom in 2010and 2011, we decided to roll out IVMS acrossthe Group to bring down the road accidentrate and operating costs, improve driverbehavior and increase the security of ourassets. The vision is to monitor all high-risktrips using this technology in the future.



For a company such as OMV Group, it is cru-

cial to have the capacity to handle business

operations and respond appropriately in the

event of potential, imminent or actual crisis

situations, especially in parts of the world in

which widespread political upheaval and

social unrest can quickly become a part of

everyday life.

Information capabilities

In order to support business with accurateand anticipatory information on politicalrisks and operational security threats, wehave developed a protective intelligencecapability in a newly formed Security andResilience Department, providing, for exam-ple, country risk assessments for Yemen,Tunisia and Libya with regular updates tosupport decision-making for future opera-tions in these particular countries. Close con-tact with authorities, information providersand external organizations has proven to becrucial in crisis situations, so we endeavor tonetwork effectively with external local,national and international organizations inorder to enhance our resilience. Thisincludes membership of ASIS International,the OGP International Security Committee aswell as critical infrastructure initiativesdriven by NATO, the European Union andAustria.

Resilience

In 2011, we revised our Group security man-agement by introducing a dedicatedresource for resilience, which combines allgroup efforts relating to emergency, crisisand business continuity management. Wedeveloped a corporate crisis and businesscontinuity management standard which wasrolled out across business divisions, corpo-rate functions and ventures. This standardalso established a baseline for all crisis man-agement support plans to build on. Further-more, crisis team members were identifiedand trained and crisis rooms were reviewed.By conducting over 60 crisis and emergencyexercises group-wide, one of them involving171 filling stations, we improved operationalpreparedness to mitigate a broad array ofrisks, such as those resulting from elemen-tary hazards (earthquakes) as well as safety,security and environmental risks. Further-more, these exercises contribute to the secu-rity of personnel, the uninterrupted reliabilityof technical infrastructure and businessprocesses and the protection of physical andfinancial assets as well as strategic informa-tion and organizational reputation.

Loss prevention

In the field of loss control we analyzed andassessed current and future risks as well asrisks deriving from corruption and organizedcrime. Based on these investigations weidentified areas of potential loss and conse-quently implemented loss prevention pro-grams. In 2011, we also supported opera-tions carried out by local authorities to arrestpeople involved in theft according to ourzero tolerance regarding theft policy.

Concept Resourcefulness | Human Resourcefulness | Natural Resourcefulness | Financial ResourcefulnessSecurity and Resilience

Security and Resilience


Workforce and Local Employment

Concept Resourcefulness | Human Resourcefulness | Natural Resourcefulness | Financial ResourcefulnessFigures

Total workforce by employment type and region 2011*

Employees

Total

Status

White-collar workers

Blue-collar workers

Total

Employment type

Full-time

Part-time

Total

Employment type

Permanent

Temporary***

Total

Austria

3,716

2,780

936

3,716

3,558

158

3,716

3,641

75

3,716

Romania

22,603

8,840

13,763

22,603

22,603

-

22,603

22,271

332

2,603

Rest ofEurope

1,027

788

239

1,027

1,001

26

1,027

1,022

5

1,027

Middle East/Africa**

2,305

1,575

730

2,305

2,301

4

2,305

2,067

238

2,305

Rest of theWorld

499

499

-

499

499

-

499

499

-

499

Total

30,150

14,482

15,668

30,150

29,962

188

30,150

29,500

650

30,150

Employees

New recruitments

Thereof new jobscreated***

Contract terminations****

Total sum of employees

Austria*

252

116

227

3,716

Romania

383

233

2,087

22,603

Rest ofEurope

95

27

145

1,027

Middle East/Africa**

446

359

191

2,305

Rest of theworld

38

38

73

499

Total

1,214

773

2,723

30,150

Net employment creation and average turnover segmented by region 2011

*** Breakdown of workforce by region into different categories (including temporary agency workers). Some companies are notincluded (e.g. OMV Exploration & Production Ltd, Petrom Exploration & Production Ltd). For this reason the figures are not exactlycomparable with the figures in the Annual Report 2011.

*** Including Petrol Ofisi.*** A temporary contract of employment is of limited duration and terminated by a specific event, such as the end of a project or

work phase, the return of replaced personnel, etc.

**** Austria: Data covers only companies that use the Austrian SAP payroll accounting system. Other companies, such as EconGas,are not included.

**** Increase of recruitments and contract terminations due to inclusion of Petrol Ofisi (not reported in 2010).**** Excluding replacements**** Including Social Plan termination and retirements

Figures



Contract terminations by region 2011

Austria

Male

Female

Total

Romania

Male

Female

Total

Rest of Europe

Male

Female

Total

Middle East/Africa*

Male

Female

Total

Rest of the world

Male

Female

Total

Abs.

4

7

11

39

30

69

13

20

33

76

9

85

41

31

72

%

36.36

63.64

100.00

56.52

43.48

100.00

39.39

60.61

100.00

89.41

10.59

100.00

56.94

43.06

100.00

Abs.

45

15

60

1,105

257

1,362

43

29

72

73

19

92

1

-

1

%

75.00

25.00

100.00

81.13

18.87

100.00

59.72

40.28

100.00

79.35

20.65

100.00

100.00

0.00

100.00

< 30 years 30 - 50 years

Abs.

140

16

156

497

159

656

33

7

40

14

-

14

-

-

-

%

89.74

10.26

100.00

75.76

24.24

100.00

82.50

17.50

100.00

100.00

0.00

100.00

0.00

0.00

0.00

> 50 years

Abs.

189

38

227

1,641

446

2,087

89

56

145

163

28

191

42

31

73

%

83.26

16.74

100.00

78.63

21.37

100.00

61.38

38.62

100.00

85.34

14.66

100.00

57.53

42.47

100.00

Total

Percentage of local employees 2011

Austria

Austria*

Romania

Romania

Rest of Europe

Bosnia and Herzegovina

Bulgaria

Croatia

Czech Republic

Germany

Hungary

Republic of Moldova

Norway

Serbia

Slovakia

Slovenia

United Kingdom

89.2%

98.7%

100.0%

98.4%

93.3%

84.8%

88.0%

100.0%

100.0%

50.0%

53.8%

70.8%

96.8%

71.9%

Middle East/Africa

Egypt

Iran

Libya

Pakistan

Tunisia

Turkey**

Kurdistan (Iraq)

Yemen

Rest of the world

Australia

Kazakhstan

New Zealand

100.0%

100.0%

82.9%

98.8%

77.1%

98.0%

67.0%

75.5%

100.0%

92.0%

85.7%

* Including Petrol Ofisi

** Austria: Data covers only companies that use the AustrianSAP payroll accounting system. Other companies, such asEconGas, are not included

** Turkey: Including Petrol Ofisi


Equal Opportunities


Diversity in 2011

SupervisoryBoard

ExecutiveBoard

Senior Management

Austria*

Romania

Abs.

2

0

5

836

5,105

%

13.3

0.0

11.4

23.5

22.6

Abs.

13

5

39

2,720

17,498

%

86.7

100.0

88.6

76.5

77.4

Gender

Women Men

Abs.

0

0

0

664

800

%

0.0

0.0

0.0

18.7

3.5

Abs.

5

3

30

1,968

16,114

%

33.3

60.0

68.2

55.3

71.3

Abs.

10

2

14

924

5,689

%

66.7

40.0

31.8

26.0

25.2

Abs.

3

2

15

384

301

%

20.0

40.0

34.1

10.8

1.3

Total

15

5

44

3,556

22,603

Age

<30 30-50 >50

Nationality

Non-AustriaNon-Romanian

* Austria: Data covers only companies that use the Austrian SAP payroll accounting system. Other companies, such as EconGas, are not included.

Percentage of female employees 2011

Austria

Austria*

Romania

Romania

Rest of Europe

Bosnia and Herzegovina

Bulgaria

Croatia

Czech Republic

Germany

Hungary

Republic of Moldova

Norway

Serbia

Slovakia

Slovenia

United Kingdom

23.5%

22.6%

45.0%

43.0%

65.2%

35.0%

11.8%

35.3%

58.6%

19.2%

50.0%

67.7%

59.7%

45.2%

Middle East/Africa

Egypt

Iran

Libya

Pakistan

Tunisia

Turkey**

Kurdistan (Iraq)

Yemen

Rest of the world

Australia

Kazakhstan

New Zealand

28.6%

80.0%

20.0%

8.2%

16.5%

15.3%

12.0%

8.0%

44.4%

19.0%

42.9%

** Austria: Data covers only companies that use the AustrianSAP payroll accounting system. Other companies, such asEconGas, are not included

** Turkey: Including Petrol Ofisi



Development and Training

Average hours and costs of training and education divided into categories in 2011

Senior management

number of training participants

money spent on trainingper category

hours per category

Management



hours per category

Experts



hours per category

Project managers



hours per category

Technicians



hours per category

Administrators



hours per category

Grand Total



hours per category

Austria

26

€ 103,135,00

1,172

304

€ 885,609.00

17,824

1,419

€ 2,521,453.00

55,822

61

€ 157,226.00

3,631

398

€ 335,737.00

11,255

79

€ 104,578.00

3,117

2,287

€ 4,107,738.00

92,821

Romania

31

€ 160,482.00

1,322

502

€ 1,475,322.96

28,825

1,450

€ 1,827,952.90

150,279

110

€ 169,953.45

4,877

10,100

€ 285,267.62

192,860

63

€ 36,822.46

2,042

12,256

€ 3,955,801.39

380,205

Rest of Europe

9

€ 15,542.42

203

291

€ 185,729.48

5,938

412

€ 270,194.56

12,573

53

€ 42,488.20

824

253

€ 111,392.45

2,284

355

€ 173,133.59

9,211

1,373

€ 798,480.70

31,033

Middle East/Africa*

0

€ 0.00

0

189

€ 223,652.69

6,217

590

€ 817,174.96

21,021

27

€ 48,720.00

1,106

464

€ 513,895.75

22,380

199

€ 143,619.03

4,973

1,469

€ 1,747,062.43

55,697

Rest of theworld

0

€ 0.00

0

14

€ 27,537.00

386

226

€ 493,150.00

14,931

1

€ 2,200.00

24

197

€ 250,629.00

12,968

35

€ 71,798.00

3,030

473

€ 845,314.00

31,339

Total**

66

€ 279,159.42

2,697

1,300

€ 2,797,851.13

59,190

4,097

€ 5,929,925.42

254,626

252

€ 420,587.65

10,462

11,412

€ 1,496,921.82

241,747

731

€ 529,951.08

22,373

17,858

€ 11,454,396.52

591,095

** Including Petrol Ofisi,** Increase of total figures due to easing of training freeze in Romania.



Health

Indicator Number of medical consultations or medical exams

Medical consultations

Paramedic interventions

Physiotherapeuticaltreatments

Exams requiredby law2

Vaccinations

Petrom

61,188

71,158

10,307

19,591

7,895

OMV1

40,149

39,429

4,078

1,477

3,197

OMV2011

101,337

110,587

14,385

21,068

11,092

Petrom

92,561

100,592

8,188

24,094

13,161

OMV1

38,436

30,236

4,607

1,232

3,187

OMV2010

130,997

130,828

12,795

25,326

16,348

Petrom

35,692

24,180

5,103

1,002

3,681

OMV1

78,145

89,308

7,781

26,317

13,802

OMV2009

113,837

113,488

12,884

27,319

17,483

The decrease in legally required examina-tions at Petrom was caused by the decreasein the headcount. The decrease in vaccina-tions was a result of the much milder flu sea-sons in 2011 and a lower level of interestamong employees. The decrease in consul-

tations at Petrom (by ~30.000) was a resultof the decreased headcount, on the onehand, and the fact that since 2011 theprocess of checking Medical Leave Certifi-cates has no longer been conducted by themedical staff of PetroMed, but solely by HR,on the other hand.

1 Excluding Petrom2 Petrom changed its medical exam statistics from counting all parts of an exam (2008) to counting the number of persons examined (2009).


Occupational Safety

Safety figures1

Own employees

Fatalities

Lost workday injuries2

Fatality rate (FAR)

Lost-time injury rate (LTIR)

Lost-time injury severity (LTIS)

Total recordable injury rate (TRIR)

Commuting accidents

Contractors3

Fatalities

Lost workday injuries

Fatality rate (FAR)

Lost-time injury rate (LTIR)

Lost-time injury severity (LTIS)

Total recordable injury rate (TRIR)

Fatal commuting accidents

Commuting lost workday accidents

number

number

per 100 mn working hours

per million working hours



number

number

number

per 100 mn working hours




number

number

2011

1

34

1.90

0.66

29.1

1.01

22

3

67

2.89

0.68

18.8

1.14

3

5

2010

3

41

5.08

0.74

23.6

1.29

13

1

52

1.05

0.56

13.10

1.23

0

3

2009

1

46

1.50

0.71

36.8

1.53

20

3

55

3.54

0.68

27.9

1.58

1

8

2008

7

61

9.39

0.91

57.7

2.17

25

9

77

9.64

0.92

31.9

1.73

1

12

2007

3

40

4.54

0.65

21.3

n.r.

n.r.

8

100

9.22

1.24

35.2

n.r.

n.r.

n.r.

Safety

n.r. = not reported1 As of 2011 these figures also include Petrol Ofisi2 Lost workday: calendar day. Lost workday injuries: incidents with more than one lost workday.3 As of 2007, partners and employees of filling stations are included in the scope of safety statistics. Between 2006 and 2008, demergers and integration of contractor

companies led to a shift in incident numbers between employees and contractors.



Our Way to Natural Resourcefulness

From the point at which oil and gas are extracted to the moment ofconsumption as fuel or heat by customers, we have a duty to respectthe resources we use. Since we work with finite natural resources it isour special responsibility to contribute to a secure, diversified energysupply while at the same time helping to protect the environment. So for us, Natural Resourcefulness means:

Efficiency and responsibility in our core businessDeveloping the gas business further as gas is the cleanest fossilfuelDeveloping new resources of energy such as geothermal energy,second-generation biofuels as well as infrastructure for H2 mobility



Concept Resourcefulness | Human Resourcefulness | Natural Resourcefulness | Financial ResourcefulnessMajor Activities in 2011


Water management in Romania

OMV’s concerns regarding water consumption were addressedthrough various initiatives in 2011. For example, a crude produc-tion site by the Black Sea, the so-called Asset X in Petrom E&P,achieved remarkable success following the implementation of awater management plan. Beyond the target of 5% less freshwater consumption from natural resources, the site in factachieved a reduction of 9% in just one year. The mechanismswhich brought about this reduction were preventive mainte-nance of water and heat networks, rehabilitation of condensaterecovery systems and the installation of a new plant for conden-sate recovery in the crude oil unit of the Midia Terminal. Addi-tionally, the site made use of desalted water for offshore techno-logical consumption.

With the aim of adopting a systematic approach to managingfreshwater consumption and wastewater, OMV took the firststep of assessing Petrom’s E&P data baseline and current prac-tices in 2011 and piloted a water management plan in one of itsassets. OMV is set to implement water management plans in allPetrom E&P, R&M and G&P operations in 2012.

Waste disposal at Petrom refineries

In 2010, Petrom installed state-of-the-art waste treatment facili-ties near the Arpechim and Petrobrazi refineries in Romania in2010 to treat the waste from the refinery's internal and externalsludge lagoons. These facilities enable land remediation to bedovetailed with waste and water management. The techniquesused are thermal treatment, incineration and bioremediation. Bythe end of 2011 one of the Petrobrazi refinery`s external sludgelagoons were completely emptied and the waste removed wastreated. Works for the other one are ongoing. At Arpechim,works for emptying and treatment of hazardous waste are inprogress for three lagoons. Both projects at Petrobrazi andArpechim are on schedule. Triazine and acrylonitrile waste gen-erated by Arpechim’s past activities had accumulated in two triazine waste storage basins and in one acrylonitrile waste stor-age site. Petrom started site remediation and waste manage-ment operations in 2010 and completed them in 2011, at a totalcost of some EUR 1 mn. Between 2010 and 2011, roughly 4,000 tof waste was removed from the two triazine storage basins and500 t from the acrylonitrile storage site. Waste was disposed ofby means of high-temperature incineration. Here Petrom wasseeking to minimize both waste quantities and the risk to theworkforce, local communities and the environment. Moreover,site conditions were improved so as to bring them into line withinternational refinery standards and national legislation.


Decommissioning of Doljchim plant

We take particular care over the safe decommissioning of sitesin accordance with industry best practices. Environmentalaspects such as decontamination and waste disposal are man-aged rigorously. Petrom’s chemical plant Doljchim has beenunder decommissioning since 2009, with all technological plantsat the site undergoing demolition. From 2009 to 2010 a total of11 installations were decommissioned and demolished. Another22 installations were shut down in 2011. The completion ofdecommissioning Doljchim is scheduled for 2012, when anothernine installations will be demolished. The high-risk activitiesinvolved, such as the handling of hazardous wastes, requirecareful planning and compliance with strict HSSE standards. Aspart of our annual emergency training program, we performed26 fire drills and three internal SEVESO exercises to test theinternal emergency plan. In 2011, HSSE training programs wereprovided for our employees and contractors on the health andsafety risks of the demolition process, security risks, industrybest practices, lessons learned from internal and external safetyand security incidents as well as legal and internal require-ments. A specialized company for safety supervision also sup-ported the teams on site during demolition works in 2011.



Targets


Environmental Objectives


Identify environmental risks and costs

3 Develop a generic framework for group-wide environmental risks assessments

Optimize processes to make efficient use of natural resources and minimize waste and emissions to air,water and land

3 Use energy efficiently and reduce carbon intensity of OMV activities and portfolio

3 Strengthen waste and water management

3 Improve oil spill response

Manage greenhouse gas emissions economically

3 Review and update carbon strategy

3 Elaborate a road map for GHG and energy-related projects and start implementation

3 Report on progress towards strategic targets


Strive for minimum environmental impact

3 Improve environmental risk assessmentmethodology

3 Review marine oil spill response and arrange-ments for OMV tanker charter operations andterminal operations

3 Continue updating onshore oil spill responseplans and teams

3 Analyzed current environmental risk assess-ment methodologies

3 Reviewed all relevant service contracts andexisting assurance for tanker operations and ter-minal operations

3 Revised and adapted oil spill response plansand teams based on organizational changes

Decrease carbon intensity of activities where OMV is the operator

3 Identify and implement activities to furtherreduce direct GHG emissions

3 Start commercial operation of Brazi gas powerplant and Dorobantu wind park

3 Achieved further reduction of 10,400 t CO2equivalent per year

3 Started commercial operation of Dorobantuwind park

Ensure efficient waste management

3 Assess waste inventory and evaluate wasteflows

3 Developed waste management project atPetrom to gain reliable data and benchmarkagainst international best practices


We responsibly address issues involving

environmental impact along the entire value

chain, from upstream and downstream pro-

duction to product quality requirements.

High on our agenda is how to reconcile

activities we undertake to help secure

energy supplies in our markets with the

challenges of climate protection and carbon

management. We strive to manage energy

and natural resources efficiently and to

reduce emissions and discharges. Our envi-

ronmental management directive and our

standards, targets and performance meas-

urements constitute a group-wide frame-

work for ongoing improvement. Environ-

mental issues are taken into account in

decision-making processes, both at corpo-

rate and operational level.

Policy and guidelines

Environmental management in OMV Groupis based on precautionary, proactive man-agement aimed at minimizing environmentalimpact. Group-wide requirements for envi-ronmental management processes aredefined in the Environmental ManagementDirective. This links the high-level principlesset out in OMV Group’s Policy on Health,Safety, Security and the Environment (HSSE)and in our commitment to the UN GlobalCompact to the implementation at the opera-tional level.

To ensure the integration of environmentalmanagement processes in core business, the environmental directive is linked to otherbusiness processes such as investments,strategy development, planning, budgetingand purchasing. Detailed environmentalstandards are defined at the level of busi-ness segments and sites according to thespecifics of the respective business activi-ties. 80% of OMV Group’s business activities(expressed in million tonnes oil equivalentprocessed, produced or transported) were

certified according to ISO 14001 by the endof 2011. This corresponds to 100% of crudeoil processing at all OMV and Petromrefineries, 6% of oil and gas production in theGroup and 100% of the gas transmission vol-ume sold by OMV.

Monitoring and development

At the corporate level, the monitoring ofenvironmental KPIs is embedded in stan-dardized reporting processes on an annualand monthly basis. Annual targets are setand deployed to the business segments. Cost estimates and GHG emission projec-tions are included in group-wide planningassumptions. The corporate directive oninvestment controlling requires an analysisof GHG emissions to be undertaken for eachproject and emissions to be reduced as faras reasonably possible (ALARP). Cost andrevenue estimates are factored into eco-nomic analysis and incorporated in everyinvestment decision. All contractors andsuppliers must comply with the Code ofConduct and its commitment to environmen-tal protection.

Environmental compliance

Legal compliance monitoring and audits areperformed regularly to ensure that all neces-sary environmental permits are in place andthat measures required by permits andinspection reports are complied with. Fullyfunctional, integrated management systemsimplemented in refineries, gas logistics andE&P in Pakistan and the UK support the legalcompliance process.

In 2011, OMV Group (including Petrol Ofisi)faced monetary fines for non-compliancetotaling EUR 0.61 mn (2010: 0.50 mn). Thefines can be related to environmental inci-dents such as spills, exceeded discharge lim-its, cases of non-conformity relative to wastemanagement requirements and flaring. Non-

Concept Resourcefulness | Human Resourcefulness | Natural Resourcefulness | Financial ResourcefulnessEnvironmental Management

Environmental Management


compliance may also result in non-monetarysanctions such as warnings from authorities,the suspension of permits and restrictedoperations.

Environmental expenditures and

investments

Environmental protection expenditures,excluding depreciation, amounted to EUR 209 mn in 2011, of which EUR 56 mnwas spent on integrated pollution preven-tion (in 2010: EUR 223 mn and EUR 64 mn). EUR 31 mn (2010: EUR 36 mn) was spent on direct measures to reduce the environ-mental impact of OMV products, such asdesulphurization and the production ofhydrogen for the desulphurization process.Environmental investments for assets putinto operation in the reporting year totaledEUR 92 mn in 2011, of which EUR 35 mn was allocated for integrated prevention(2010: EUR 87 mn and EUR 43 mn).

Provisions for environmental costs, decom-missioning and restoration are reviewed in astandardized process twice a year, based ona detailed inventory. This cross-functionalprocess involves line management, HSSEexperts and controlling staff. The environ-mental provisions can be found in OMVGroup’s Annual Report 2011.

EBRD loan for environmental improvements

Petrom continues to use the environmentalloan from EBRD (European Bank for Recon-struction and Development) of EUR 300 mnsigned in March 2009 by ensuring compli-ance with EBRD requirements in order tosustain performance of its operations andinvestments. The loan finances a series ofprojects such as measures for environmentdecontamination, replacement of old pipes,modernization of boilers or refurbishment ofthe wastewater treatment system. In addi-tion to environmental benefits, the projectswill benefit local communities by creatingnew jobs and providing roads with publicaccess, thereby contributing to the economicand social development of the area.

Concept Resourcefulness | Human Resourcefulness | Natural Resourcefulness | Financial ResourcefulnessEnvironmental Management


Today’s energy and climate policies present

major challenges to the oil and gas industry.

As energy demand grows, the industry has

a primary responsibility to contribute to

securing the energy supply. At the same

time, greenhouse gas (GHG) emissions must

be reduced in all economic sectors so as to

mitigate climate change. We will continue

to expand our gas business activities and

promote the use of natural gas for power

generation by building high-efficiency gas-

fired power plants in order to reduce the

carbon intensity of OMV’s portfolio. Equally

importantly, we will continue to monitor

and control our own GHG emissions.

Energy management

The oil and gas industry is an energy-inten-sive business, with energy accounting for asignificant share of our operational costs.Improved energy efficiency is, therefore, apriority for OMV, not least since it also helpsreduce GHG emissions. Thus, our carbonstrategy and GHG emissions reduction arekey elements of our energy management.

Total energy consumption of OMV was 131.7petajoule in 2011 (2010: 134.1 PJ). Purchasedenergy, such as electricity and heat,accounted for only 5% of total energy con-sumption.

All OMV Group refineries have implementedcertified Energy Management Systems accord-ing to EN 16001:2009 or ISO 50001:2011. Sys-tems and processes have been installed toestablish energy objectives, monitor energyperformance and continuously improveenergy efficiency.

GHG emissions and reduction strategy

In 2008, we made a clear commitment todecreasing the carbon intensity of activitieswhere OMV is the operator by 2015. Our

targets for managing GHG emissions are:Reduce direct GHG emissions from Explo-ration and Production (E&P) and Refiningand Marketing (R&M) through efficiencyimprovements by 1 mn t or by at least10% as compared to a 2007 baseline anda strategic reference scenario (“businessas usual”).Contribute to the decarbonization of theenergy markets in Central and South East-ern Europe by reducing the carbon inten-sity of our portfolio, promoting naturalgas and selectively including power gen-eration.Limit the power generation portfolio to nomore than 0.37 t CO2 per MWh by usingstate-of-the-art technology.

The Carbon Strategy is currently beingreviewed and will be updated in the light ofthe new business strategy 2021 “ProfitableGrowth”.

Direct emissions (scope 1)

Emission levels of carbon dioxide (CO2),methane (CH4) and nitrous oxide (N2O)directly related to our operations were 11.6 mn t in 2011 (2010: 12.2 mn t). The otherGHGs are of minor relevance and havetherefore not been included in OMV’s GHGfigures. The reduction in GHG emissionsresulted from business interruptions inNorth African countries, the shutdown of Refinery Arpechim as well as GHG reduction projects.

Petrom E&P is in the process of replacingold boilers with modern ones to improveenergy efficiency and reduce emissions. Thiswill result in less fuel gas consumption andthus reduce CO2 emissions.

OMV Group was able to significantly reducequantities of gas flared in Komsomolskoe,Kazakhstan by modifying the gas separator.

Concept Resourcefulness | Human Resourcefulness | Natural Resourcefulness | Financial ResourcefulnessEnergy and Climate Protection

Energy and Climate Protection


This improved dehydration of the gas to beinjected. Before this modification, insuffi-cient dehydrated gas caused frequent com-pressor shutdowns, so gas was re-routed forflaring instead of being injected. Approxi-mately 1,800 t of CO2 equivalent was emittedas a result of flaring-produced gas in 2011,as opposed to 12,200 t CO2 equivalent emit-ted in 2010. Great saving potential is seen inflaring reduction in Tunisia due to theplanned South Tunisia Gas Pipeline.

Since 2008, R&M has implemented measuresto reduce GHG emissions that total annualsavings of 200,000 t CO2 equivalent. Gener-ally, all measures taken to improve energyefficiency contribute directly to the reductionof GHG emissions. For example, Petrobrazirefinery shows reduction potential of another200,000 t CO2 equivalent in 2015, thus con-tributing to achieving the target set in theCarbon Strategy. At the Schwechat and Burg-hausen refineries, a bundle of process opti-

mization measures was likewise initiated tofurther increase energy efficiency by 2015.The turnaround of the Schwechat refinery in2011 saw the lowest flaring time during astoppage of the petrochemical part of therefinery.

Indirect Emissions from OMV Products

(Scope 3)

The GHG intensity of the product portfoliodecreased slightly over several years, due toa greater focus on the less carbon-intensivegas and power business, investment in alter-native energies, as well as non-energy use ofoil and gas (as raw materials for the produc-tion of polymers, fertilizers, etc.) in down-stream activities. However, in 2011 the inten-sity increased, mainly caused by changes inthe product portfolio after the integration ofPetrol Ofisi, for example. The bottom line isthat sales volumes of our products havegrown, thereby increasing absolute indirectGHG emissions.


GHG intensity of the OMV product portfolio

Million tonnes CO2 equivalent

Million tonnes GHG permillion tonnes oil equivalent

Oil to energy Oil for non-energy use Gas to energy Gas for non-energy use GHG Intensity

2007 2008 2009 2010 2011

120

100

80

60

40

20

0

3.0

2.5

2.0

1.5

1.0

0.5

0


In October 2011, we started commercialoperation of our wind farm Dorobantu inRomania, thus contributing to environment-friendly production of power. Dorobantu is a45 MW wind farm which accounts for 5% ofnationwide wind energy capacity. In 2011,

31,600 MWh was delivered to the nationalgrid, which means a saving of 11,700 t CO2

emissions based on an average national gridfactor of 0.37 t/MWh in Romania. In 2012, wewill expand the farm’s capacity by 9 MW.


Emissions trading

OMV is subject to the EU Emissions Trading Scheme (ETS). At the end of 2011, 21 of its operating installations had been in the scheme: three in Austria, one in Germany, and 17 inRomania. Around 47% of the direct GHG emissions of OMV (5.56 mn t) were CO2 emissionsfrom EU ETS installations. As a result of emission reductions, supplementary allocations andplant shutdowns, OMV Group recorded a surplus of 2.97 mn certificates as of the end of2011.

OMV maintains a low-risk trading strategy. In addition to the trading of EU allowances, weoptimize the OMV carbon portfolio when needed by monitoring the possibilities of and useof credits from flexible project-based mechanisms such as the Clean Development Mecha-nism (CDM) and Joint Implementation (JI), as provided for under the Linking Directive.

Allocation of allowances and emissions by countries 2011

Unit

1,000 certificates

kt1 CO2

1,000 certificates

Allowances

Emissions

Result

Austria

2,768

2,810

-41

Germany

1,311

1,102

209

Romania

4,444

1,646

2,798

1 kilotonne (kt) = 1,000 tonnes


To minimize the impact of our operations on

the ecosystem we are committed to sustain-

able resource management. These efforts

include efficient use of water, proper waste

treatment and disposal, sensitivity to areas

of high biodiversity and prevention of harm-

ful emissions.

Air emissions

Emissions of sulphur dioxide (SO2) were sig-nificantly reduced. A reduction of emissionsof nitrogen oxides (NOX) and non-methanevolatile organic carbon compounds (NM-VOCs) can be attributed to the shutdown ofthe Arpechim refinery, the business interrup-tion in North African countries and to im-provement measures, for example fuelswitch and process optimization.

OMV activities do not result in materialemissions of ozone-depleting substances.These substances are emitted only in verysmall quantities (<1 t in 2011) due to refrig-eration or fire fighting.

Gas and Power (G&P) has changed its opera-tions philosophy for the gas logistics businessin Austria, with electrically-driven compres-sors partially replacing gas-driven turbinesand compressors in the system. As a result,e-driven compressors have been installed atNeustift and Baumgarten. Additionally, twocompressors in the WAG pipeline system at Baumgarten will also be replaced with e-compressors by 2013. The mix of gas andelectrically-driven devices will also enhancethe resilience of the transmission system.

Concept Resourcefulness | Human Resourcefulness | Natural Resourcefulness | Financial ResourcefulnessEnvironmental Protection

Environmental Protection

Air Emissions by Type of Pollutant

Tonnes

2007 2008 2009 2010 2011

SO2 NOX NM-VOC Particulates

18,000

15,000

12,000

9,000

6,000

3,000

0


Water management

OMV uses water from various sources forsteam generation, cooling and industrialprocessing. Closed-loop cooling systems inour refineries are a good example of efficientwater use. As it forms an integral part of allenvironmental and social impact assess-ments, the minimization of impact on waterbodies is taken into account both in thedesign of facilities (e.g. discharge of coolingwater from a planned gas-fired power plantinto the Black Sea) and in environmentalmanagement plans. In 2011, total water con-sumption throughout OMV Group opera-tions was about 52 mn cubic meters (2010:59 mn). A total of 26 mn cubic meters ofwastewater (2010: 32 mn) were dischargedafter appropriate on-site or off-site treatmentin OMV-owned or community water treat-ment plants.

Scarcity of water resources is a specific envi-ronmental challenge in Yemen, especially in our Block S2 in the Yemeni desert. Weinstalled a new wastewater treatment unitthat enables us to use the treated water forirrigation and dust control. The unit is await-ing start-up as soon as the country's politicalsituation improves.

Large amounts of formation waters have tobe managed in Exploration and Production(E&P) operations; the figure was 55 mn cubicmeters in 2011 (2010: 51 mn). In Austria, Pak-istan, Libya, Tunisia and Kazakhstan, OMVreinjects 100% of all produced water afterappropriate treatment and in Romania over95%. The remaining quantities are treatedand discharged. In New Zealand, producedwater is discharged to the marine environ-ment after undergoing treatment to meet therequired discharge quality standards

In 2011, one concern was raised in Romaniaas regards a water resource being affectedqualitatively. The media warned about thequality of drinking water in Pordeanu, TimisCounty, near the Hungarian border, whereodorous mud and sulphur was discoveredcontaining flammable gas. The analysis ofthe water sample revealed that the localwater source was not polluted with oil,reservoir water or associated gas, but thatthe groundwater contains natural gas as iscommon in many areas of western Romania.OMV was not notified of any other concernas regards water resources having beenaffected quantitatively by the direct removalof water.


Water withdrawal by source

Water from public 9%supply systems 9%

Groundwater 53% Surface water 38%


Due to restructuring and optimization activi-ties, total water consumption at PetromRefining has decreased by 60% since 2005and wastewater management systems havealso been improved. The volume of dis-charged wastewater fell from 22.7 mn cubicmeters per year in 2006 to 12.6 mn cubicmeters in 2011.

At the Petrobrazi refinery the rehabilitationof the sewerage will minimize the amount ofwastewater requiring treatment by segregat-ing wastewater streams based on their levelof contamination. Wastewater will be col-lected safely, avoiding any leakage into theground. The revamp of the wastewater treat-ment plant with a planned investment valueof approximately EUR 10 mn will result inbetter quality discharged wastewater and areduction of sludge waste.

Waste

OMV activities generate solid and liquidwastes, including oily sludges, waste chemi-cals, spent catalysts and construction debris.The total waste generated in 2011 increasedfurther by 38% to 883,000 t. Due to remedia-tion of sludge pits, demolition and abandon-ment as well as cleaning of wastewatertanks, the amount of hazardous waste

increased by 165,000 t compared to the pre-vious year. There was no transport, import,or export of waste deemed hazardous underthe regulations of the Basel Convention.

In 2011, we focused on establishing a group-wide approach to improve the effectivenessand efficiency of our waste management.We started with Petrom’s waste manage-ment system by identifying operationalwaste management processes, waste flows,quantities and costs. This established a reli-able data baseline against international bestpractices. Within this framework we auditedthree main waste contractors.

The E&P division at Petrom is in the processof cleaning 44 sludge pits containing about600,000 m3 of sludge, of which 42 have beenalready completed. Here, water, oil andsolids are separated out, then the water isreinjected into the residual and technologicalwells. Oil is then reintroduced into the pro-duction process and the residual solids aretreated by way of a thermal desorption sys-tem before final disposal. During implemen-tation of Petrom’s program to create thewaste infrastructure needed for the cleanupof contaminated soil as well as abandon-ment of around 26,000 oil wells and 1,100


Waste Disposal Paths 2011

H Other disposal 17%

H Recycling 3%

H Landfill 7%

NH Landfill 24%

NH Other disposal 5%

H Incineration 21%NH Recycling 23%

NH Incineration <1%

Hazardous waste (H) Non-hazardous waste (NH)


production facilities, Petrom E&P built fourbioremediation plants and two landfills in2011.

With respect to the abandonment programin Petrom E&P, subsurface and surfaceworks were completed for 732 and 73 wellsrespectively in 2011. The sites were return tothe initial condition for all wells fully aban-doned. In addition to wells, 71 facilities wereabandoned and sites of around 2.1 ha wererehabilitated.

Drilling mud

Exploration and Production (E&P) seeks toavoid the use of hazardous substanceswhenever less hazardous alternatives areavailable. In drilling operations, we usewater-based drilling fluids wherever techni-cally feasible: 90% of the drilling mud usedby E&P is water-based. If this is not possiblefor technical reasons, as in the case ofextended-reach wells, we use non-aqueousdrilling fluids (NADF), selecting the leasttoxic option. The use of diesel-based drillingfluids has been completely phased out ofOMV operations. Waste minimization andmanagement plans require measures suchas the reuse of drilling mud. Cuttings aretreated to reduce toxicity and disposed of inaccordance with applicable national regula-tions and best available technology. In E&Poperations, drilling mud and cuttings accountfor most of the total waste generated.

Spills and leakages

In 2011, OMV recorded six significant hydro-carbon spills (>1,000 liters; level 3, 4, and 5on a scale of 1 to 5) and 2,001 minor releases(2010: 8 and 2,239, respectively). Theamount of hydrocarbons spilled was 503,000liters (2010: 147,000 liters). This increase wasdue to an unauthorized, criminal access tooil pipelines in Romania, more than 80%caused by two spills.

In general spills can be the result of safety or security incidents, but they are mostlycaused by corrosion of aging infrastructure.On the Turkmenoi Multiphase Trunk line(TOC) in Kazakhstan, for example, a series of oil spill incidents were experienced due to high levels of corrosion in 2011. Pipelinerepair or replacement feasibility studieswere carried out and the decision was madeto replace the pipeline. What is more, sitecleaning and soil replacement was carriedout promptly and effectively, reducing anyfurther risk to land or water.

As part of the Oil Facilities Program, PetromE&P performs upgrades to reduce leakage atgathering stations, metering points and pro-cessing parks. Replacement of old and obso-lete oil and gas gathering facilities with newproduction manifolds was finalized in 2011,while the replacement with new meteringpoints is in progress and will be finalized in2012. Petrom E&P is also in the process ofconstructing and re-lining its priority oil andgas pipelines to restore system integrity. In2011, Petrom E&P replaced and modernizedaround 220 km of pipelines. Also, a PipelineIntegrity Management team was created tofurther enhance the implementation andongoing management of pipeline integrity,pipeline spill management and abandon-ment as well as risk-based inspections ofsurface facilities. This will lead to a high-quality production transport system, increas-ing energy efficiency and decreasing envi-ronmental impact by preventing spills inrelated areas. This program includes manysmall to medium-scale local pipeline proj-ects as well as one off-shore project.

In 2011, OMV has reviewed the arrange-ments for oil spill response and concludedthat the tanker operations and terminal oper-ations are covered by existing assurance andservice contracts. Likewise, the oil spillresponse plans and teams were revised andadapted due to organizational changes.



Biodiversity

Before we launch new projects and opera-tions, biodiversity issues are addressed byway of environmental impact assessmentsand permitting processes. Development inthe vicinity of protected areas or areaswhere protected species exist need to beundertaken with special regard for these vul-nerable populations and ecosystems. Wethen monitor them closely to ensure that noadverse impact occurs as a result of ouroperations. As yet, OMV has not needed todevelop biodiversity action plans for any ofits operations. Nevertheless, we pay specialattention to biodiversity issues at the sites ofa number of our operations.

For several years, OMV in New Zealand hassupported many initiatives to protect andenhance New Zealand’s ecosystem. Theseinclude a partnership with a project run bythe New Zealand Department of Conserva-tion (DOC) to determine the present popula-tion and level of recovery of humpbackwhales in New Zealand’s waters. The know-ledge and experience gained from this project is also fed into the OMV-sponsoredLEARNZ project, which provides a series offree online "virtual" field trip for teachersand students. In 2012, OMV in New Zealandplans to support a community initiative promoting the restoration, protection andenhancement of the indigenous ecosystemat Rotakare Scenic Reserve.



OMV produces gasoline and diesel fuels and

a broad range of other products including

bitumen, oils, lubricants, gas and heating

oil, as well as specialized products such as

petrochemical products and fertilizers for

our industrial customers. We strive to pro-

vide high-quality products that meet our

customers’ expectations and help them save

costs. In lifecycle assessments of R&D proj-

ects we focus on CO2 emissions of new

products. Health and safety aspects are an

integral part of managing product quality

from production through to storage, trans-

port and sales.

Policy and guidelines

We manage the quality and safety of ourproducts in line with our internal policiesand international and national regulationsand standards. Substantial product-relatedfines totaled EUR 0.12 mn (including PetrolOfisi). In OMV Petrom SA an antitrust inves-tigation regarding the withdrawal of theretail product “Eco Premium” from theRomanian fuels market is pending. In 2011,there were no further product-related fines.

Product Safety – material safety data sheets

The quality and safety of our products arethe result of standardized processes, qualitytesting across the supply chain, and a highlydeveloped traceability system. We makedetailed information available to our part-ners and customers concerning our productsand the materials used to produce them. Allproducts that are manufactured, marketed ordistributed by OMV comply with the applica-ble legal regulations. Safety data sheets forOMV products can be downloaded from ourwebsite. These provide our customers andemployees with comprehensive informationon potential health, safety and environmen-tal hazards as well as precautionary meas-ures to be taken for safe product handlingand usage.

OMV application engineers and sales staffprovide product training on an ongoingbasis for OMV employees, suppliers, fillingstation partners and other customers. Com-plaint management processes are wellestablished for corporate clients, for theSchwechat and Burghausen refineries andfor VIVA products. Product-related customercomplaints are systematically recorded, analyzed and followed up.

A downstream group-wide complaint man-agement system is being prepared. The sys-tem covers all relevant countries, customergroups, suppliers and third party serviceproviders as well as all products and servicecategories. The implementation phasestarted in November 2011 and the system is expected to go live in September 2012.

REACH and CLP

The implementation of the EU Regulation on Registration, Evaluation and Authorisa-tion of Chemicals (REACH) meant that all our refineries successfully registered around200 substances by the end of 2010. Activitiescontinued throughout 2011 with participa-tion in SIEFs and REACH consortia (CON-CAWE, LOA, FERC, etc.) with a view to main-taining registration dossiers and updatingtheir common and joint parts. REACHremains a daily business process for OMVrefineries.

The EU Regulation on Classification, Label-ing and Packaging of substances and mix-tures (CLP) requires manufacturers andimporters of such products in or into the EEA to ensure the re-classification and re-labeling of substances and mixtures. Byusing internationally agreed classificationcriteria and labeling elements, the aim is tofacilitate trade as well as help global effortsto protect human beings and the environ-ment from the hazardous effects of chemi-

Concept Resourcefulness | Human Resourcefulness | Natural Resourcefulness | Financial ResourcefulnessProduct Responsibility

Product Responsibility


cals, thus complementing REACH. Notifica-tion of the classification and labeling (C&L)of substances and mixtures to ECHA is sub-mitted either within REACH or as a separatedossier for those exempted from registra-tion. We submitted all due C&L notificationssuccessfully and the product safety datasheets were updated accordingly.

We have several working groups that over-see our compliance with REACH and CLPregulations. We are also members of theREACH and CLP working groups within thetrade associations for the oil and chemicalindustries.

Transport

OMV looks for safe, environmentally friendlyand economical ways of transporting itsproducts. In environmental terms, pipelinetransport is the best alternative because itrequires low energy use and reduces theneed for road and rail transport. A decreasein road transport minimizes the risk of inci-dents and emissions to the atmosphere,including greenhouse gas (GHG) emissions.

The percentage of the different types oftransport used will vary from refinery torefinery according to product range, cus-

tomer location and the regional distributionnetwork. Road transport accounts for 10-26%of deliveries from refineries, and rail trans-port for 17-88%. Ship transport fromSchwechat refinery accounts for 10.3%,while 73% of all deliveries from Burghausen,Feldkirchen and Steinhöring are pipelinetransport. OMV does not own tankers; allvessels are chartered through first-class shipbrokers. The highest quality and safety stan-dards are applied to shipping operations.

Shale gas

An expert team analyzed the potential ofshale gas in the Vienna Basin in a number ofstudies. The estimated shale gas resourcescould make a significant domestic contribu-tion to Austria’s energy supply security.OMV has successfully operated in Austria forover 60 years, especially in the Matzen field.We are committed to compliance with thehighest technological standards as well aswith strict Austrian and European environ-mental laws and regulations, which guaran-tee the environmentally sound use ofresources. This also applies to the extractionand production of shale gas. OMV will nottap shale gas resources until an environmen-tally friendly extraction method has beenestablished.


Modal split 2011

Burghausen, Feld-kirchen, Steinhöring

10%

17%

73%

Road

Rail

Pipeline

Ship

Schwechat

25.7%

28.1%

35.9%

10.3%

Petrobrazi

10%

88%

2%


Cleaner fuels

At present, 93% of gasoline and 99% ofdiesel sold by the OMV Group is sulphur-free (sulphur content <10 ppm). In 2011,OMV blended 424,000 t FAME into diesel and171,000 t ethanol into gasoline fuels. Accord-ing to the calculation method established inthe EU Renewable Energy Directive, biofuelsblending results in the avoidance of GHGemissions of 839,000 t CO2 equivalent in thetransportation sector.

OMV has produced and sold sulphur-freelight heating oil since mid-2008. Use of thisnew product reduces CO2 emissions byroughly 1% compared to standard heatingoil. Since Austrian heating oil companiesestablished a fund to sponsor the replace-ment of old, inefficient heating boilers with

new condensing boiler technology in 2009,CO2 emissions can be reduced by 3–4 t peryear for each new boiler. By 2016, reductionof CO2 emissions in the Austrian heating sec-tor will be as much as 430,000 t. OMV sup-ports the use of compressed natural gas(CNG) as an environment-friendly trans-portation fuel: up to 20% lower CO2 emis-sions, 80% reduction of carbon monoxideand virtually no particulate emissions.Across our network of approximately 4,500filling stations we offer gas as fuel (eitherLPG or CNG) at 466 filling stations, a cover-age rate of 10%. As of the end of 2011, CNGis sold at 63 OMV filling stations in Austriaout of 171 sites in total. CNG is presentlyavailable at 11 OMV retail outlets in Ger-many and six in Bulgaria.



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) as well as in inno-

vative projects in the renewable energy

field. OMV thereby prioritizes technologies

where it can bring in its core competencies

(e.g. geothermal energy).

Opportunities

The industries involved in providing energyfor entire economies can make importantefforts to mitigate and adapt to climatechange. We are working in several areas ofour core business to respond to climate chal-lenges. Reducing the carbon intensity of ourportfolio is a key element of our businessstrategy. We do so by investing in powergeneration, enhancing the energy efficiencyof our products and operations and provid-ing lower carbon fuels. Our company sup-ports research and pilot projects on renew-ables (e.g. geothermal energy), energyefficiency and future technologies.

Innovation

OMV’s investments in R&D benefit our cus-tomers, the environment and our business.We work closely with universities, non-uni-versity research institutes and numerousindustrial partners and actively participate indiverse technology networks. R&D expendi-ture in the Group totaled EUR 15.9 mn in2011. In the near and long term future wewill strengthen our R&D focus on secondgeneration renewables that are close toOMV’s core competencies and assets. Thiswill involve an increase in our annual R&Dbudget of up to EUR 50 mn.

Geothermal energy project

Geothermal energy generally refers to thethermal energy stored in the Earth’s crust.This energy is distributed between the con-stituent host rock and the natural fluid that iscontained in its fractures and pores at tem-peratures above ambient levels. The fluidsconcerned are mostly water with varyingamounts of dissolved salts. Quantities of hotrocks and fluids contained in them are sub-stantially larger and more widely distributedthan oil and gas fluids contained in sedimen-tary rock formations. Western Turkey seemsto be an ideal location for hydrothermalpower as some investigations in the pasthave shown. OMV leverages synergies ofexploration, production and power plantknow-how and will analyze the potential inthis area with the aim of investing in a geo-thermal power plant. Three main compo-nents are under consideration:

Resource – estimate the magnitude anddistribution of high temperature fields,obtain a licenseTechnology – assess requirements forextracting and utilizing energy from geo-thermal reservoirs including drilling,reservoir design and stimulation, as well as thermal energy conversion to electricity. Economics – create a business model andestimate the cost of supplying electricity.

The feasibility study, to be carried out in2012, should deliver a sound basis for aninvestment project as well as a future OMVstrategy for geothermal power.

Concept Resourcefulness | Human Resourcefulness | Natural Resourcefulness | Financial ResourcefulnessFuture Energies and Innovation

Future Energies and Innovation


Second Generation Biofuels –

BioCrack project

The goal of the BioCrack project is to design,construct and test a pilot plant for the com-bined conversion of an intermediate productof the mineral oil refinery and solid biomassinto a fuel similar to conventional diesel. Thegenerated product contains significant por-tions of biogenic carbon from the biomassand can be upgraded using existing refineryunits to obtain the final quality of diesel fuel.BioCrack allows the use of existing infra-structure with concurrent utilization ofrenewable raw material in the oil industry,thereby contributing significantly to thereduction of CO2 emissions.

The technology is based on a patent belong-ing to our project partner BDI – Bio EnergyInternational AG. Other project partners areuniversity-based.

The pilot unit is currently being installed atthe Schwechat refinery. Steel construction iscomplete and several plant items weremounted at the end of 2011. The aim is tocommission the unit at the end of the 1stquarter 2012.

At the same time, the Technical University ofGraz is working on the scientific foundationof the process. Thermodynamic and kineticdata have been measured and a simulationmodel of the process has been built. Nowthe major focus is to optimize the opera-tional parameters in order to maximize theyield of valuable products. Much work isalso being done on upgrading side products.In close co-operation with the Technical Uni-versity of Graz and BDI, scheduled pilot testsat OMV's pilot center will be prepared start-ing January 2012 so as to be ready for thefirst products from the pilot tests. Sometests will also be carried out on the FCC pilotunit at Vienna University of Technology.

H2 Mobility project

The H2 Mobility initiative was founded inSeptember 2009 as a public-private partner-ship between Germany’s National Organiza-tion for Hydrogen and Fuel Cell Technology(NOW) and eight industry stakeholders,including OMV. Its aim is to build a hydro-gen fuelling infrastructure by 2015 and suc-cessfully introduce fuel cell vehicles to theGerman market. The network will expand viacorridors from metropolitan areas into fullgeographical coverage.

In 2011 the H2 Mobility consortium (17 com-panies and OEMs – car manufacturers, oiland gas companies and utilities) developeda joint entity business model to develop aninfrastructure for hydrogen in Germany. In2012 negotiations between partners will getunderway to found the joint entity. Infra-structure investment should be in place from2014 onwards, depending on serial produc-tion of the cars.

Concept Resourcefulness | Human Resourcefulness | Natural Resourcefulness | Financial ResourcefulnessFuture Energies and Innovation



Environmental protection expenditures 2011

Soil and groundwater 25%

Air 16%

Env. management 10%

Waste 32%

Noise and vibration 3%

Nature protection 2%

Wastewater 12%

Total energy consumption per business segment

Petajoule

2007 2008 2009 2010 2011

E&P R&M G&P

120

100

80

60

40

20

0

E&P 27%

G&P 11%

R&M 62%2011

Figures

Energy intake by primary energy source 2011

Residual gas 34%

Electricity, heat 5%

Liquid fuels 15%

Natural gas 41%

Others 1%

FCC coke 4%



Total GHG emissions by business segment

Million tonnes CO2 equivalent

2007 2008 2009 2010 2011

E&P R&M G&P OMV Group

18

15

12

9

6

3

0

Water consumption per business segment

Million cubic meters

2007 2008 2009 2010 2011

E&P R&M G&P

60

50

40

30

20

10

0



Total waste by type

Thousands tonnes

Hazardous waste Non-hazardous waste1 Until 2008, waste from ongoing production only, one-off waste from projects not included.2 Increase due to drilling waste from Petrom E&P included for the first time in 2008.3 Change in group-wide reporting methodology: total waste amounts (production and projects).

20071 20082 20093 2010 2011

900

750

600

450

300

150

0

HSSE training hours

OMV Group

OMV (excl. Petrom)

Petrom

Petrol Ofisi

Per business division:

E&P

G&P

R&M

Corporate and others

2011

279,100

64,700

201,600

12,800

155,400

10,300

111,900

1,500

2010

229,000

51,600

177,400

n.a.

106,200

19,100

99,800

3,900

2009

188,500

63,100

125,400

n.a.

80,100

3,900

95,900

8,600

2008

253,700

56,400

197,300

n.a.

140,300

4,500

103,100

5,800

2007

338,000

55,200

282,800

n.a.

243,100

2,400

81,000

11,500

Note: figures are rounded to the nearest hundred.



Environmental figures1

Energy consumption

Water consumption

Thereof groundwater

Emissions

GHG (direct, scope 1)

GHG (indirect2, scope 3)

CO2

CH43

N2O4

SO23

NOX

NM-VOC3

Particulate emissions

Wastewater discharge

Chemical oxygen demand

Hydrocarbons

Total nitrogen

Waste5

Non-hazardous waste

Hazardous waste

Waste oil6

Total waste

Spills

Flaring and Venting

Hydrocarbons flared

Hydrocarbons vented

Unit

PJ

mn m³

mn m³

mn t CO2 equivalent

mn t CO2 equivalent

mn t

t

t

t

t

t

t

t

t

t

t

t

t

t

number

t

t

2011

131.7

52

27.6

11.6

119

9.5

96,654

178

4,930

14,051

9,241

417

1,134

47.8

155

434,790

398,219

—

833,009

2,007

326,622

108,265

2010

134.1

59

32.4

12.2

108

10.0

100,004

215

5,587

16,432

11,818

422

1,525

55.5

261

369,060

233,126

—

602,186

2,247

477,284

81,483

2009

147.8

65

28.1

11.7

109

10.7

36,008

975

5,927

15,123

10,531

1.799

1,860

55.6

331

379,933

138,294

—

518,227

2,671

n.r.

n.r.

2008

165.4

77

26.9

12.0

105

11.1

27,136

1,036

9,039

14,890

10,553

2,492

1,890

84.0

372

216,681

22,714

439

239,834

1,701

n.r.

n.r.

2007

159.5

76

25.3

12.1

102

10.8

39,880

1,440

10,290

13,759

9,707

2,944

2,741

62.2

437

75,261

21,004

322

96,587

884

n.r.

n.r.

EN3

EN8

EN16

EN16

EN16

EN16

EN16

EN20

EN20

EN21

EN22

EN23

OG6

Environmental figures at a glance

n.r. = not reported1 Environmental figures including Petrom as of 2006; Kazakhstan and Petrom Marketing as of 2009. Not including Petrol Ofisi, because reporting

systems are still being established or integrated.2 Scope 2: Indirect GHG emissions from purchased energy such as electricity and heat account for about 5% of total energy consumption and are

therefore not assessed regularly.3 Increases due to adapted estimation and calculation methodologies in refineries (NM-VOC, 2007), E&P (2008-09) and Petrom E&P (CH4, 2010).

Further changes in CH4 may be expected due to ongoing improvements in reporting methodologies in E&P.4 Decrease mainly caused by the closure of the chemical plant Doljchim, where N2O was generated in the course of fertilizer production.5 While until 2008 only production waste was reported, total waste amounts including those from one-time projects are given as of 2009.6 As of 2009, included in hazardous waste.


Our Way to Financial Resourcefulness

To achieve profitable growth we must also act financially responsible.So for us, Financial Resourcefulness means:

Making the effects of responsible behavior measurableSocially responsible investments

With the support of scientists we are developing suitable instruments,in particular key performance indicators, processes and standards for our decision-makers. Measuring the effects of our actions willenable us to make the best decisions in our core business for us andour stakeholders in the future. Furthermore, we will evaluate theopportunities of socially responsible investment for OMV.

At its very basis, Financial Resourcefulness is also about soundgovernance structures, reliable compliance instruments and themitigation of both immediate and long-term risks. Furthermore, wemeasure and demonstrate losses through incidents in order to put theright focus on prevention and risk reduction measures. OMV iscommitted to flawless business behavior in all of its operations.




Risk assessment: Major Accident Events Study

Major Accident Events such as an accidental marine oil spill cancause extensive damage to marine and wildlife habitats as wellas local communities, tourism and the fishing industry. For adrilling company involved in or responsible for a major accident,the consequences in terms of reputation and financial impactcould be devastating, too. Avoidance of Major Accident Eventstherefore has absolute priority.

In 2011, a Major Accident Events (MAE) study was initiated withthe aim of identifying and ranking operational sites with thehighest risk of impacting on the Group’s reputation and surviv-ability. Within the framework of MAE we developed and imple-mented a risk screening methodology to rank high-potentialMAE sites and activities, which was finalized this year. The nextstage will be to carry out audits of the operating sites, prioritiz-ing those of highest risk. The audits will review the effectivenessof management and technical integrity systems which preventand control MAEs to As Low as Reasonably Practicable (ALARP).There will also be a review of the effectiveness of emergencyresponse and crisis management systems minimizing theimpact of MAEs.



Targets


Process Safety and Risk Management


Develop group-wide standards and KPIs

3 Improve process safety and technical integrity barrier performance: 80% of sites to report process safetyincidents in CARE, develop process safety issues register, risk reduction plan and status report

3 Conduct MAE audits according to prioritization of MAE study


Develop group-wide standards and KPIs

3 Extend management walk-around concept onprocess safety

3 Risk-rank safety-critical locations and identifyoperating assets with the potential to cause amajor accident

3 Process safety management walk-around train-ing programs delivered to senior managers

3 Implemented process safety KPIs based oninternational standards

3 Carried out Major Accident Events (MAE) studyidentifying high-risk OMV Group sites and activ-ities

Contractor and Supply Chain Management


Contractor management

3Monitor suppliers and contractors to ensure that they comply with our requirements

Supply chain management

3 Evaluation of the share of “A“ suppliers with an own CoC


Contractor management

3Monitor suppliers and contractors to ensure thatthey comply with our requirements

3Monitored suppliers and contractors to ensurethat they comply with our requirements

Supply chain management

3 Evaluate % of “A“ suppliers who have adoptedour CoC

3 Evaluate % of “A“ suppliers who have createdtheir own CoC

3 Evaluation of the share of “A“ suppliers whoadopted their own CoC (88 out of 512) and theshare of “A“ suppliers who accepted the OMVCoC (rest)


OMV seeks to promote a sense of proactive

ethical responsibility throughout the Group

as a whole as a crucial element of its philos-

ophy. Commitment to honesty and integrity

in all business dealings is required of every-

one working for OMV, and there are clear

rules on conflicts of interest, gifts and hospi-

tality as well as assessment of third parties.

A compliance system and the relevant

processes help to ensure adherence to our

regulations. Behaving fairly towards our

stakeholders substantially enhances our

good reputation as an employer and busi-

ness partner.

Values, guidelines and standards

The Group upholds a series of self-imposedobligations based on both internal and exter-nal standards. OMV regulations for the man-agement of sustainability across the Groupare contained in a series of directives andstandards. Some business segments andsites have established their own specificcomplementary guidelines and proceduresin addition.

By signing up to the UN Global Compact(UNGC), OMV has committed to implement-ing the ten UNGC principles on humanrights, labor standards, the environment andanti-corruption. The OMV Code of Conductsets forth clear rules of behavior in accor-dance with the UNGC. This applies to allOMV employees in all business segments aswell as to contractors. The OMV BusinessEthics Directive clearly defines further rulesregarding conflicts of interest, gifts, hospital-ity and assessment of third parties.

Living corporate culture

OMV Group’s corporate values are those of “Professionals, Pioneers, and Partners”.Defined with the help of our internal andexternal stakeholders, they motivate andguide our employees. Our driving values

are systematically embedded in ongoingactivities. For example, we use them as anadditional assessment criterion for businessawards, talk about them at meetings andhighlight them in the employee magazinesMove and Impact. In our external communi-cation and advertising activities we empha-size the fact that professionals, pioneers and partners make up OMV Group’s humancapital.

Public Affairs

The Group’s involvement in political consen-sus-building likewise derives from a sense of fundamental responsibility. As an interna-tionally active integrated oil- and gas com-pany that is committed to European values,OMV conducts public affairs activities–incoordination with OMV’s representation inBrussels, Corporate Public Affairs in Petrom,business divisions and ventures–at anational, European, and international level.We participate actively in the developmentof the political, economical, and regulatoryframework that impacts our group.

For example, OMV actively fosters the devel-opment of the Nabucco project. The annualbudget for our representative office in Brus-sels amounts to a sum between EUR 250,000and 300,000.

In 2009, OMV was one of the first Austriancorporations to participate in the voluntaryregistry for lobbyists with the EU Commis-sion.

Compliance management

OMV operates in many countries with differ-ent cultures and laws. We have set up acompliance organization which supports theimplementation of OMV’s standards andmonitors that in all parts of the Group opera-tions comply with local laws. The OMV com-pliance organization manages

Responsible Governance

Concept Resourcefulness | Human Resourcefulness | Natural Resourcefulness | Financial ResourcefulnessResponsible Governance


Anti-corruption and business ethicsProhibition of insider trading and marketabuseAntitrust lawTrade embargosData protection

The compliance organization is a dedicatedteam of multinational experts which is led by the Chief Compliance Officer. He reportsdirectly to the Executive Board and to theSupervisory Board.

OMV takes measures to raise awareness andtrain its employees by publishing directivesand instructions, as well as providing face-to-face and web-based training. OMV set up a business ethics hotline and a web-basedform to enable employees to ask for advice.Additionally, every compliance officer can becontacted by mail, telephone or in person.

Business ethics

Because business relations are not merelylegal relations between enterprises but alsoinvolve human relationships, conflicts ofinterest can arise. OMV provides people act-ing on its behalf with a clear set of rules tofollow in a potential conflict of interest situa-tion. In addition the Business Ethics Directivealso provides guidance on gifts, donations,hospitality and sponsorship, facilitation pay-ments as well as third party assessment.

We are working on the further improvementof compliance and business ethics manage-ment throughout OMV Group and will reporton progress in the future. For example, theOMV Executive Board has approved a newCode of Business Ethics in January 2012.Roll-out of the code including training pro-grams and an internal information campaignwill take place in 2012.

Inside information guidelines and

fair competition

OMV’s Issuer Compliance Directive providesguidance on proper handling of inside infor-mation and prevention of market abuse andinsider trading. A compliance system andthe relevant processes are in place to sup-port the implementation of the directive.

The OMV Code of Conduct contains a clearcommitment to the principles of free and faircompetition. OMV aims to fully adhere toantitrust legislation and the laws on restraintof competition and fair trading practices.Everyone acting on behalf of OMV under-goes extensive training to ensure awarenessof and compliance with these rules.

We engage only in business activities thatare based on the principles of fairness andintegrity. When negotiating, we state ourposition clearly and pursue our objectivesconsistently. We aim to apply the same stan-dards in all of our dealings with our businesspartners, be they customers, suppliers orcontractors.

Advertising standards

OMV’s advertising standards are in line withthe recommendations of the InternationalAdvertising Association (IAA). Advertising,sponsoring, promotion, communication andevent management activities are based onour corporate sponsoring guidelines andstandards such as our professional eventmanagement guidelines, corporate identityguidelines and in-house standards.

Compliance training

In order to safeguard compliance with inter-nal and external regulations we conductcompliance training on a regular basis.While face-to-face training programs aremandatory, an e-learning tool has been



introduced which provides a completeoverview of regulations in place. OMV is cur-rently training new staff in the framework ofthe New Employee Orientation (NEO) pro-gram dealing with such topics as anti-cor-ruption policies and procedures. Overall in2011, a total of 170 staff received face-to-facetraining in these areas, and a special anti-corruption presentation was organized toraise awareness among line management,with approximately 50 line managers andsenior staff taking part.

The new business ethics regulation, whichwas approved by the OMV Executive Boardin January 2012, will be launched along witha roadshow comprising a training sessionfor employees in different OMV countries.The aim is to provide face-to-face trainingfor a substantial number of employees inanti-corruption policies and procedures.

Actions taken

In 2011, our Corporate Audit department car-ried out 26 compliance audits throughoutthe Group which focused on compliancebusiness ethics issues. Risk-related audits,including fraud and corruption issues, forman inherent part of the audit plan of the Corporate Internal Audit. Internal Auditinvestigated several cases of suspected mis-conduct that were either detected in theseaudits or reported to us directly. In case ofserious violations, sanctions can extend todismissal and claims for damages.

Internal Audit

An external quality assessment of OMV’sinternal audit system was performed at theend of 2010. The external auditor stated that“the internal audit activity of OMV Groupgenerally conforms to the Standards andCode of Ethics”. This means that according

to Standard 2430, the internal audit activityof OMV Group may report that their activi-ties are “conducted in conformance with theInternational Standards for the ProfessionalPractice of Internal Auditing”.

Monetary Fines

OMV faced a total of approximately EUR0.23 mn in substantial monetary fines fornon-compliance with laws and regulations in 2011 (including Petrol Ofisi). Apart fromthat there were no non-monetary fines.

Procurement policy and guidelines

We aim to conduct the procurement processin a professional, confidential and ethicalmanner in accordance with our corporateguidelines, the Business Ethics Directive andour Code of Conduct. Suppliers of goods orservices are informed of this policy beforebusiness is conducted. In 2011, 424 “A“ sup-pliers (83%) of OMV & Petrom acceptedOMV’s Code of Conduct. Further 88 “A“ sup-pliers of OMV & Petrom additionally pro-vided their own Code of Conduct (PetrolOfisi excluded).

Initiated in 2008 with the aim of enhancingthe procurement process, the ProcurementExcellence Program PEPE resulted in animprovement in sustainability practices inour supply chain. It is now obligatory tomake specific reference to the OMV Code ofConduct in all contracts, for example. The2010 revision of the supplier audit systemreinforced aspects relating to human rightsand labor as well as safety and environmen-tal criteria. A supplier management systemhas been established in all countries andprovides OMV and Petrom with risk assess-ment and evaluation data with regard to “A”suppliers. Category management enables usto leverage synergies and optimize costs.



We assess the current and future financial

and non-financial risks associated with our

activities in a regular strategic review. It

entails monitoring both the macroeconomic

environment and our industry’s situation

(market growth, regulations, technologies,

etc.), assessing the impact of these trends

on OMV and developing strategic initiatives.

The key non-financial and financial risks

identified in respect of OMV’s medium-term

plan are market price risks, business process

risks, political risks, regulatory and compli-

ance risks, personnel risks as well as hazard

risks. We assess non-financial risk in social

and environmental impact assessments,

hazard identification (HAZID) and hazard

and operability analysis (HAZOP) studies,

as well as other recognized methodologies.

Risks are events and developments, bothinside and outside OMV, that have a poten-tially negative effect on the company’s abil-ity to achieve its aims and objectives. It isthe Group’s policy to maintain at all times astructured, systematic group-wide overviewof all risks to ensure that they are monitoredand controlled at every management level.Our Enterprise Wide Risk Management(EWRM) covers all operational and strategicrisks in consolidated companies. A precisesequence has been defined which comprisesrisk identification, evaluation, consolidationand reporting, together with risk monitoring,control and mitigation. This ensures thatrisks are identified and that control and miti-gation measures are implemented at allorganizational levels of the company.

The key Group risks are governed centrally toensure the ability to meet the strategic objec-tives, through the essence of corporate direc-tives, including those relating to health, safety,security and environment, legal matters andcompliance, human resources and corporatesocial responsibility with special emphasis onhuman rights and market price risks.

Documentation and monitoring of the identi-fied risks is facilitated by an appropriate ITtool. Clearly defined limits are set for sub-stantial risks, risks requiring individual moni-toring and all other risks, broken down intothose relevant to business segments, com-panies and the Group as a whole.

Risk exposure

OMV operates in a highly challenging busi-ness environment. In common with theentire oil and gas industry, OMV is exposedto a variety of risks – mainly market risks,but also operational, strategic, regulatory,political as well as hazard risks. Increasedstakeholder expectations need to beaddressed in order to ensure not only thelicense to operate but also the license togrow. Transparent information and commu-nication are absolutely essential to safe-guard the company’s reputation.

OMV’s exploration and production activitiestake place in many different environments –from offshore New Zealand to the NorthAfrican desert, from the steppe of Kaza-khstan to the Carpathian Mountains inRomania and the vineyards of Lower Aus-tria. As a result, the regional impact is notjust widespread but also varied. Typical E&Pactivities that are highly visible to the localpopulation include seismic operations,drilling activities, construction of pipelinesand processing plants, as well as ongoingproduction operations.

In the future, E&P’s strategic endeavors willlead to further growth – not only in countrieswhere the business segment is alreadyactive, but also in countries where OMV hasnot yet undertaken any E&P activities. It isunlikely that the gas-oil ratio of roughly50/50 or the offshore production, whichmakes up about 1/5 of OMV’s total produc-tion, will change very much over the comingyears. However, with every new exploration

Risk Management

Concept Resourcefulness | Human Resourcefulness | Natural Resourcefulness | Financial ResourcefulnessRisk Management


activity, development project or asset acqui-sition, OMV will be exposed to new soci-eties, which have their own culture, desiresand history. E&P has proven that it can oper-ate for a long period of time in challengingsocioeconomic environments. In NorthAfrica and the Middle East, OMV’s businessmodel has proven to be sustainable over thepast 25 years. We will strive to keep up oursuccessful presence in the region.

Political and regulatory risks

Although OMV has extensive experience inthe political environment in Central andEastern Europe (CEE) and South East Europe(SEE) and in its core oil and gas productionareas, political developments in all marketswhere OMV operates are kept under con-stant observation. Furthermore, country-spe-cific risks are assessed before entering newcountries.

International, EU and national energy andclimate policies and upcoming safety andsocial regulations will confront the oil andgas industry with major challenges in thenear future. Tighter rules in the EuropeanUnion Emission Trading Scheme (EU ETS)for the 2013-20 period might lead to higherproduction costs, significantly affecting inter-national competition. In addition, uncertaintyover the future market price of CO2 poses arisk to the future cost of greenhouse gas(GHG) emissions allowances and credits.

More stringent environmental regulationslead to rising costs for compliance andremediation, and these could adverselyaffect the results of our operations and ourfinancial state. Many countries in which weundertake exploration and production activi-ties, such as Yemen, are tightening theirlegal controls on flaring and venting, so it iscritical that we phase out those practices assoon as practicable.

The growing use of economic tools in moni-toring environmental performance is likelyto increase regulation of the protection andutilization of fresh water resources and otherecosystem services. We can also expectgreater demands for more efficient use ofnatural resources and minimization of wastestreams. Tighter discharge controls areincreasingly being adopted for offshoreoperations. Some of the countries in whichwe operate now have a “zero harmful dis-charge” policy. All of these trends willincrease financial liability for existing andpotential environmental damage, such asland and water pollution and physical dam-age to habitats.

We engage with the relevant industry associ-ations to monitor the development of inter-national and regional regulation of theseenvironmental issues, particularly in the EU.

Environmental and social risk assessment

and management

OMV’s risk management is not limited toimmediate business and regulatory risks. It also includes social, political and othereconomic risks. All of our operationsincreasingly employ integrated environmen-tal, social and health impact assessments asthe basis for managing environmental sus-tainability risks. The greatest risks to theenvironment arise during exploration, devel-opment and production. We implement anEnvironmental Management Plan (EMP) ateach of our operational sites. For every facil-ity and project, risk assessments are rou-tinely carried out and emergency and crisismanagement plans are in place. Hazard,environmental and climate change-relatedrisks are assessed together with all otheridentified risks twice a year.



A key success factor for us is the employ-ment of qualified, motivated people in ourinternational workforce. However, the oil andgas industry as a whole faces difficulties hir-ing and retaining highly specialized staff.Through systematic staff succession anddevelopment planning, Corporate HumanResources enables OMV to meet futuregrowth requirements in order to mitigatepersonnel risks.

Carbon risks

Climate change risks are included in the fullyintegrated, group-wide risk managementprocess (EWRM). Risks related to the EUEmission Trading Scheme (EU ETS) are sep-arately recorded, aggregated for the Group as a whole and monitored by a group-widecommittee (Carbon Steering Committee) on an ongoing basis. In particular the impactof the revised allocation rules in the EU ETSfrom 2013 onwards is being analyzed in detail.Furthermore, OMV is monitoring emergingregulations related to climate change in alloperating countries, for instance the estab-lishment of the New Zealand EmissionsTrading Scheme or ongoing discussions ofcarbon tax in several countries.

We collect economic data to assess the riskof climate change to our business. Our mar-kets are already feeling the impact of energyand climate policies. Tighter emissions trad-ing rules after 2013 will result in increasedproduction costs, which in turn will signifi-cantly affect international competition. Fur-ther critical issues arising from climatechange include market price risk assessmentconcerning unknown future costs of CO2,higher insurance premiums and relatedrisks. The frequency and intensity of extremeweather events may rise in the future, affect-ing our production and transportation infra-structure directly or indirectly through com-plex interactions on global energy markets.

Countermeasures to reduce the potentialimpact of all identified climate change riskshave been evaluated and either planned orimplemented. They include the following:the use of economic instruments such asemissions trading and carbon portfolio man-agement; integrative consideration of GHGemissions and climate change-related issuesin strategy, controlling and other key busi-ness processes; operational and engineeringmeasures to protect platforms from cyclonedamage, protection from flooding, etc.

On the other hand, we can expect new busi-ness opportunities in the field of alternativeenergies, greater efficiency and innovationin production processes and products, andthe advent of new technologies to deal withthe energy systems of the future.

Process safety

Process Safety Management (PSM) is theproactive identification, analysis, evaluationand safeguarding of the release of haz-ardous substances and process accidentsthat could occur as a result of failures inprocess technology, procedures or equip-ment. It applies to the management of haz-ards associated with the chemical and physi-cal properties of the substances handled inour oil and gas activities. Our vision is forprocess safety hazards to be effectively man-aged in every facility across the Group.While there are areas in which we areapproaching this state, previous assess-ments suggest that it is not universal.

A PSM implementation plan was elaboratedin 2011 and basic governance established.Since process safety has to do with manag-ing our plants, processes and people, PSMactivities in 2011 also included the MajorAccident Events (MAE) study, process safetymanagement walk-around training pro-grams, implementation of process safety



KPIs and reporting of process safety hazardsand incidents. A pilot of the Risk BasedInspection Project was carried out forPetrom E&P in 2011, to be extended to allPetrom E&P assets in 2012. The IntegrityProgram 2012 has also been elaborated andis in place for all assets to be rolled out. This program focuses on integrity assurance forpipelines, manifolds and wellheads.

We will be required to undertake a signifi-cant number of activities to facilitate effec-tive implementation of the PSM plan. Thesefocus on providing governance and guid-ance through the development of a corpo-rate standard and recommendations onprocess safety based on industry best prac-tice, supporting capability developmentthrough a structured training curriculum, ini-tiating the building of accessible knowledgebases, supporting and advising those imple-menting the requirements, and objectivelymeasuring performance.


Proactive measures to avoid damage of production assets have been necessary at the Siretriver in Romania. The Siret river bank was damaged by the 2010 flood, endangering theintegrity of a well. In order to avoid any environmental pollution and negative impacts on therelationship with the community and local authorities, Petrom E&P decided to proactivelyinvest in consolidation work. Usually the community itself or the local government is respon-sible for managing floods and the damages occurring from them. But in order to developand sustain our business, Petrom E&P decided to take responsibility for the necessary investment.

Case study: consolidation of Siret river bank


Ernst & Young IndependentAssurance ReportLimited assurance on disclosures and datarelating to four specific focal areas in OMV’s“pdf” Sustainability Report 2011

Engagement

We were requested to provide limited assur-ance on disclosures and data relating to fourspecific focal areas in the “pdf” Sustainabil-ity Report 2011 (hereafter “the Report”) ofOMV AG (hereafter “OMV”). The focal areas are:3 Contractor management specifically

material reported under “Suppliers” onpage 33, “Contractor HSSE management”on pages 47 and 48, and “Procurementpolicy and guidelines” on page 85.

3 Business Ethics specifically materialreported under “Human Rights” on pages32 to 34 and “Responsible Governance”on pages 83 to 85.

3 Workplace Safety specifically materialreported under “Safety” on pages 45 to49, with the following indicators foremployees and contractors at group level:- Lost-time injury rate (LTIR)- Lost-time injury severity (LTIS)- Total recordable injury rate (TRIR)- Fatalities- Commuting accidents

3 Greenhouse Gas Emissions (GHG)- Group processes and controls to aggre-

gate and collate GHG scope 1 emissions- Presentation of data in the report includ-

ing exclusions, footnotes etc.

We also performed the Global Reporting Initiative (GRI) Application Level Check toconfirm the application level declared byOMV.

Our procedures have been designed toobtain a “limited level” of assurance onwhich to base our conclusions. The extent ofevidence gathering procedures performed isless than for that of a “reasonable” assur-ance engagement (such as a financial audit)and therefore a lower level of assurance isprovided.

Under the “General Conditions of Contractfor the Public Accounting Professions1” ourliability is limited to intentional violations orgross negligence of the contract. In cases ofgross negligence the maximum liabilitytowards OMV and any third party together is EUR 726,730.

Management responsibilities

The Report has been prepared by the man-agement of OMV who are responsible forthe collection and presentation of informa-tion reported.

What we did to form our conclusion

It is our responsibility to express a conclu-sion on the disclosures and data of the focalareas included in the Report on the basis ofthe limited assurance engagement.

Our assurance engagement has beenplanned and performed in accordance withthe International Federation of Accountants’ISAE30002 and the Code of Ethics for Profes-sional Accountants, issued by the Interna-tional Federation of Accountants, whichincludes requirements in relation to ourindependence.

Verification Statement

1 Version dated February 21st 2011 (AAB 2011), issued by the Chamber of Public Accountants and Tax Advisors, section 8 -http://www.kwt.or.at/de/PortalData/2/Resources/downloads/downloadcenter/AAB_2011_englische_Fassung.pdf

2 International Federation of Accountants’ International Standard for Assurance Engagements Other than Audits or reviews of Historical Financial Information (ISAE3000).


We assessed the information relating to dis-closures and data of the identified four focalareas in the Report against following criteria:3 GRI sustainability reporting guidelines

(G3.03) application level A+.3 OMV’s Corporate Regulations (directives,

standards and procedures) related to thefocal areas, of which a summary is pro-vided on page 5 of the Report.

We believe that these criteria are suitable forour assurance engagement.

In order to form our conclusions we under-took the following worksteps:3 Interviewed a selection of Group and

functional senior managers and execu-

tives at company HQ in Austria, Turkeyand Romania to understand key expecta-tions in the focal areas and identify sys-tems, process and internal controlsprocesses to support them.

3 Reviewed Group level, Board and Execu-

tive documents to assess awareness andpriority of the focal areas and to under-stand how progress is tracked.

3 Examined risk management and gover-

nance processes supporting the selectedfocal areas.

3 Visited four reporting sites: Austria

(Gänserndorf), Romania (Petrobrazi &

Brazi) and Turkey (Petrol Ofisi) to reviewprogress and obtain evidence of perform-ance across the focal areas. In addition we conducted data reviews in relation toGHG emissions and safety at site level forcompleteness, reliability, accuracy andtimeliness.

3 Reviewed data samples and processes

relating to energy and GHG emissions

and workplace safety to test whether theyhad been collected, consolidated andreported appropriately at Group level.This included reviewing data samples andconversion factors relating to CO2 emis-sions to test whether the data coveringScope 1 emissions had been reported inan accurate, reliable and complete man-ner.

3 Reviewed the coverage of material issues

within the four focal areas against the keyissues raised in the stakeholder dialogues,areas of performance covered in externalmedia reports and the environmental andsocial reports of OMV’s peers.

3 Challenged statements and claims in the

Report on the four focal areas against ourworksteps and the GRI principles.

3 Reviewed whether OMV’s reporting hasapplied the GRI G3 Guidelines to a level

consistent with the A+ application level.

Limitations to Engagement

3 Our review was limited to the four focalareas and the specified key performanceindicators.

3 We have not tested comparative data,derived from the Sustainability Reportsfrom previous years;

3 We did not test data derived from externalsurveys, we only verified that relevant disclosures and data are correctly quotedin the Report.

3 The scope of our review procedures atoperational level was limited to a sampleof four site visits.

3 http://www.globalreporting.org/ReportingFramework/G3Online/


Our Conclusion

Based on the scope of our review nothinghas come to our attention that causes us tobelieve that the disclosures and data relatingto the four focal areas in the Report were notprepared, in accordance with the criteriaidentified above.

Nothing has come to our attention thatcauses us to believe that OMV’s sustainabil-ity reporting does not meet the GRI A+ appli-cation level.

Commentary

Our observations and recommendations forimprovement will be raised in a report toOMV’s management.

Vienna, April 26th 2012

ERNST & YOUNG

Wirtschaftsprüfungsgesellschaft m.b.HGerhard Schwarz e.h.Georg Rogl e.h.Douglas Johnston e.h.

The Global Reporting Initiative (GRI) devel-ops globally applicable quality criteria forsustainability reporting in consultation witha wide range of stakeholders drawn frombusiness, employer and employee represen-

tatives, civil society, academic institutions,and other areas. The GRI Content Indexgives an overview of all the disclosures inthe present report.


GRI Content Index

Strategy and Analysis

Statement from the most senior decision-maker of the organization

Description of key impacts, risks, and opportunities

Organizational Profile

Name of the organization

Primary brands, products, and/or services

Operational structure of the organization

Location of the organization’s headquarters

Number of countries where the organization operates

Nature of ownership and legal form

Markets served

Scale of the reporting organization

Significant changes during the reporting period regard-ing size, structure, or ownership

Awards received in the reporting period

Report Parameters

Reporting period for information provided

Date of most recent previous report

Reporting cycle

Contact point for questions regarding the report or its contents

Process for defining report content

Boundary of the report

Limitations on the scope or boundary of the report

Basis for reporting on joint ventures, subsidiaries, etc.

Data measurement techniques and the bases of calculations

Restatements of information

Significant changes from previous reporting periods

GRI Content Index

External assurance

•

•

••

•

••

•••

•

•

••••

••

•

•

•

••••

SR pp. 6–7

SR pp. 18–21, 86–89; AR pp. 59–61

SR Imprint

SR pp. 8–9

SR p. 8; AR pp.142–147

SR Imprint

SR pp. 6, 8–9; AR pp. 40, 44, 48

AR pp. 32, 33

AR pp. 13, 14

AR pp. 52, 56–57,142–148

AR pp. 52–54

www.OMV.com

SR p. 3

SR p. 3

SR p. 3

SR Imprint

SR p. 4–5

SR p.3

SR p.3

SR pp. 3–6

SR pp. 3–6

s. commentary

s. commentary

SR pp. 93–97

SR p. 90

p. 13

p. 15

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

p. 29

p. 29

p. 29

n/a

pp. 16 – 17

p. 29; Appendix A

p. 29; Appendix A

p. 23; Appendix A

p. 29

pp. 23,29

Various sections

n/a

p. 24

Statement of Continuing Support

1.

1.1

1.2

2.

2.1

2.2

2.3

2.4

2.5

2.6

2.7

2.8

2.9

2.10

3.

3.1

3.2

3.3

3.4

3.5

3.6

3.7

3.8

3.9

3.10

3.11

3.12

3.13

Profile Disclosures

Description Status Links IPIECA UNGCStatement/Commentary:

3.10

No restatements of information

since the last report.

3.11

No significant changes since

the last report.

4.

4.1

4.2

4.3

4.4

4.5

4.6

4.7

4.8

4.9

4.10

4.11

4.12

4.13

4.14

4.15

4.16

4.17

Disclosure on Management Approach


Governance, Commitments, and Engagement

Corporate governance/Management structure of the organization

Independence of the highest governance body

Structure of the governance body in organizations thathave a unitary board structure

Mechanisms for shareholders and employees to providerecommendations

Linkage between compensation for members of the high-est governance body, senior managers, and executives, and the organization’s performance

Mechanisms to avoid conflicts of interest

Expertise of the members of the highest governancebody for guiding the organization’s strategy on economic, environmental, and social topics

Mission statements, codes of conduct, sustainability principles

Procedures for overseeing the organization’s sustainability management

Evaluation of the highest governance body’s own per-formance, particularly with respect to sustainability

Precautionary approach addressed by the organization

Externally developed economic, environmental, andsocial charters, principles, or other initiatives

Memberships in associations and advocacy organizations

List of stakeholder groups engaged by the organization

Basis for identification and selection of stakeholders with whom to engage

Approaches to stakeholder engagement

Key topics and concerns of stakeholders

Disclosure on Management Approach – Economic

Disclosures on Management Approach – Environmental

Disclosure on Management Approach – Labor Practicesand Decent Work

Disclosure on Management Approach – Human Rights

Disclosure on Management Approach – Society

Disclosure on Management Approach – Product Responsibility

•

•n.a.

•

•

•

•

•

•

n.a.

•

•

•

••

••

•

•

•

•

•

•

SR pp. 8–9, 19; AR pp. 20–28

AR pp. 20–28

s. commentary

SR pp. 16, 38-39;AR pp. 28

AR pp. 22–23,26–27, 134, 140–141

SR pp. 83-85; AR pp. 26–27

AR pp. 24–26

SR pp. 6, 13-15,83–85

SR pp.16–17

s. commentary

SR pp. 20–21, 71–73, 86–89; AR pp.30, 59–61, 120–121; s. commentary

SR pp. 6, 13, 22, 32–34, 35, 59, 81

SR pp. 17

SR pp. 17

SR pp. 17

SR pp. 17

SR pp. 18–19

SR pp. 10–11

SR pp. 12–15, 61–63, 65

SR p. 13

SR pp. 12–15, 32

SR pp. 12–14, 35–36, 83–85

SR pp. 12–15, 71–73, 83

p. 14

p. 14

SE15

SE16

n/a

n/a

n/a

p. 13

p. 14

n/a

p. 13

p. 14

n/a

pp. 12, 17

p. 12, 17

p. 11, SE1, SE16

p. 11; indicators

pp. 23, 85, 94,105; SE4, SE5,SE6, SE7, SE13

pp. 35, 47, 54;E1, E2, E3, E5,E7, E8, E9, HS4

pp. 23, 66; SE15,SE16, SE17,HS1, HS2, HS3

p. 100; SE2; SE8,SE9, SE10, SE18

pp. 85, 105; SE1,SE3, SE11,SE14, HS5

HS4, E3

1-10

1-10

1-10

1-10

1-10

1-10

1-10

1-10

1-10

1-10

7

1-10

1-10

Sharing the Communi-cation on Progresswith the company’sstakeholders

1, 4, 6 and 7

7, 8 and 9

1, 3 and 6

1, 2, 3, 4, 5 and 6

10

1 and 8

4.

4.1

4.2

4.3

4.4

4.5

4.6

4.7

4.8

4.9

4.10

4.11

4.12

4.13

4.14

4.15

4.16

4.17

DMAEC

DMAEN

DMALA

DMAHR

DMASO

DMAPR


4.3

The organization has a Super-

visory Board.

4.10

According to the Austrian

Stock Corporation Act, respon-

sibility for evaluating the per-

formance of the highest gover-

nance body does not lie with

the reporting organization.

4.11

Investments in portfolio adap-

tation and decarbonization are

the strategic expression of our

precautionary approach.

Performance Indicators

Economic Performance Indicators

EC1

EC2

EC3

EC4

EC6

EC7

EC8

EC9

Environmental Performance Indicators

EN1

EN2

EN3

EN4

EN5

EN6

EN8

EN9

EN11

EN12

EN14

EN16

EN17

EN18

EN19

EN20

EN21

EN22

EN23

EN24


Direct economic value generated and distributed

Financial implications and other risks and opportunitiesdue to climate change

Coverage of the organization’s defined benefit plan obligations

Significant financial assistance received from the government

Policy and practices of spending on locally-based suppliers

Procedures for local hiring

Services provided primarily for public benefit

Understanding significant indirect economic impacts

Materials used by weight or volume

Percentage of materials used that are recycled input materials

Direct energy consumption by primary energy source

Indirect energy consumption by primary source

Energy saved due to conservation and efficiency improvements

Initiatives to provide energy-efficient and renewableenergy-based products and services

Total water withdrawal by source

Water sources significantly affected by withdrawal of water

Location and size of land owned, leased, or managed inprotected areas

Description of significant impacts of activities, products,and services on biodiversity in protected areasBiodiversity

Strategies, current actions, and future plans for managing impacts on biodiversity

Total direct and indirect greenhouse gas emissions by weight

Other relevant indirect greenhouse gas emissions by weight

Initiatives to reduce greenhouse gas emissions andreductions achieved

Emissions of ozone-depleting substances by weight

NOx, Sox, and other significant air emissions by type and weight

Total water discharge by quality and destinationWater Management

Total weight of waste by type and disposal method

Total number and volume of significant spills

Weight of hazardous waste shipped internationally

•

•

•

•

•

•••

•

•

•n.m.

•

•

••

•

•

•

•

n.m.

•

n.m.

•

•

•

••

SR p. 9; AR pp.52–59

SR pp. 61–65, 71–73

SR p. 39; AR pp.86, 109

SR p. 9

SR p. 35–36

SR p. 37–38, 51

SR pp. 23–24

SR pp. 35–36

s. commentary; AR pp. 41–42, 46

s. commentary

SR pp. 76–77, 79

s. commentary

SR pp. 63

SR pp. 18, 63–65,74– 75

SR p. 66, 77

SR p. 67

SR p. 70; s. commentary


SR pp. 60–70

SR pp. 63–64, 77, 79

s. commentary

SR p. 63–65

s. commentary

SR pp. 64–65, 77, 79

SR pp. 67, 77; s. commentary

SR pp. 68, 78–79; s. commentary

SR pp. 68–69, 77

SR p. 68

p. 23, SE4, SE13,SE14

pp. 21, 35

n/a

SE13

SE5, SE7

SE5, SE6

SE4

SE6

n/a

E10

E2

E2

E2

E3

E6

E6

E5

E5

E5

E1

E1

E1

E7

E7

E9

E10

E8

E10

7

6

SE1

8

8 and 9

8

8

8 and 9

8 and 9

8

8

8

8

8

8

8

7, 8 and 9

8

8

8

8

8

8

EC1

EC2

EC3

EC4

EC6

EC7

EC8

EC9

EN1

EN2

EN3

EN4

EN5

EN6

EN8

EN9

EN11

EN12

EN14

EN16

EN17

EN18

EN19

EN20

EN21

EN22

EN23

EN24


EC9

More detailed reporting will be

set up in the long term

EN1

Raw materials refer to the

amounts of oil and gas pro-

duced, used and sold, and

make up the company’s key

material flows. While amounts

of auxiliary, working, and pack-

aging materials are marginal

and therefore not reported,

detailed information about

energy consumption is given

for EN3 and EN4. Due to com-

plexity, more detailed reporting

is not planned in the future.

EN2

Insignificant percentage given

the reliance on materials

derived from primary extrac-

tion.

EN4

Purchased energy, such as

electricity and heat, accounted

for only 5% of total energy con-

sumption.

EN11/EN12

For new projects, biodiversity

is addressed in environmental

impact assessments and per-

mitting processes, but the use

of biodiversity action plans has

not yet been implemented in

any of our operations.

EN17

Scope 3 emissions from prod-

uct use are material and

reported. All other Scope 3

emissions, for example, emis-

sions related to externally pur-

chased crude oil intake,

employee business travel, and

logistics, are not material

because of their relatively

insignificant amounts com-

pared to indirect emissions

from product use.

EN26

EN27

EN28

EN29

EN30

Social Performance Indicators: Labor Practices and Decent Work

LA1

LA2

LA4

LA5

LA7

LA8

LA10

LA13

LA14

Social Performance Indicators: Human Rights

HR1

HR2

HR3

HR4

HR5

HR6

HR7

HR8

Social Performance Indicators: Society

SO1

SO2

SO3


Initiatives to mitigate environmental impacts of productsand services and extent of impact mitigation

Packaging materials that are reclaimed

Fines for non-compliance with environmental regulations

Significant environmental impacts of transport

Total environmental protection expenditures and investments by type

Total workforce by employment type, employment contract, and region

Rate of employee turnover

Percentage of employees covered by collective bargaining agreements

Minimum notice period(s) regarding significant operational changes

Rates of injury, occupational diseases, lost days, andabsenteeism, and number of work-related fatalities byregion

Risk-control programs in place to assist workforce members regarding serious diseases

Average hours of training per year per employee byemployee category

Composition of governance bodies and breakdown ofemployees in terms of diversity

Ratio of basic salary of men to women by employee category

Investment agreements that include human rights clauses

Suppliers and contractors that have undergone screening on human rights

Employee training on policies and procedures concerning aspects of human rights

Total number of incidents of discrimination and actionstaken

Right to exercise freedom of association and collectivebargaining

Operations identified as having significant risk for incidents of child labor

Operations identified as having significant risk for incidents of forced or compulsory labor

Security personnel trained concerning aspects of human rights

Effectiveness of practices that manage the impacts ofoperations on communities

Business units analyzed for risks related to corruptionBusiness Ethics

Employees trained in organization’s anti-corruption procedures

•

n.m.

•

••

•

••

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

SR pp. 71–73

s. commentary


SR p. 72

SR p. 62

SR pp. 51–52

SR pp. 51–52

SR p. 37–38

SR p. 37–38

SR p. 45–47, 56

SR pp. 41–44, 55

SR pp. 53–54

SR pp. 52–53; AR p.25; s. commentary

SR p. 38

SR p. 32–34

SR pp. 27, 33–34, 85

SR pp. 25, 27, 33–34

SR pp. 38; s. commentary

SR pp. 32–34, 38

SR p. 32–34

SR p. 32–34

SR pp. 25, 27, 33–34

SR pp. 28, 33–36, 59

SR pp. 83–85; s. commentary

SR pp. 83–85

HS4

n/a

n/a

E1, E8

n/a

p. 23; SE15

p. 23; SE15

p. 100; SE16,SE8

SE16

HS3

HS2

SE17

SE15

SE15

SE8

SE9

SE8

SE8, SE18

p. 100; SE8, SE9

p. 100; SE8, SE9

p. 100; SE8

SE10

SE1

SE11, SE12

SE11

7, 8 and 9

8 and 9

8

8

7, 8 and 9

SE1

6

1 and 3

3

1

1

1 and 6

1 and 6

SE1

1,2, 3, 4, 5 and 6

1,2, 3, 4, 5 and 6

1,2, 3, 4, 5 and 6

1,2 and 6

1, 2 and 3

1, 2 and 5

1, 2 and 4

1 and 2

SE8, SE9

10

10

EN26

EN27

EN28

EN29

EN30

LA1

LA2

LA4

LA5

LA7

LA8

LA10

LA13

LA14

HR1

HR2

HR3

HR4

HR5

HR6

HR7

HR8

SO1

SO2

SO3


EN19

OMV uses ozone-depleting

substances only on a labora-

tory scale (<1 t per year).

EN21/EN22

Classification structure adapted

to specific business character-

istics.

EN27

The company’s main products,

oil, gas, and electricity, are

delivered without packaging

materials.

EN28

Reporting on dispute resolu-

tion concerning environmental

issues will be developed.

LA13

In accordance with the Aus-

trian law, no data have been or

will be collected on minority

groups.

HR4

Reporting systems are under

evaluation and quantitative

data will be available over the

long term.

SO2

Risks-related audits, including

fraud and corruption issues,

are inherent parts of the audit

program of Corporate Internal

Audit.

SO4

SO5

SO8

Social Performance Indicators: Product Responsibility

PR1

PR3

PR6

PR9

Oil & Gas Sector Specific Indicators

OG1

OG2

OG3

OG4

OG5

OG6

OG7

OG8

OG9

OG10

OG11

OG12

OG13

OG14


Actions taken in response to incidents of corruption

Public policy positions and participation in public policydevelopment and lobbying

Fines and sanctions for noncompliance with regulations

Life cycle stages in which health and safety impacts ofproducts and services are assessed

Type of product and service information required by procedures

Programs for adherence to laws related to advertising

Fines for non-compliance with regulations concerningthe provision and use of products and services

Volume of proven reserves

Amount spent on renewable energy R&D

Installed capacity of renewable energy technologies bysource

Percentage of operating sites in which biodiversity riskhas been assessed and monitored

Volume of formation/produced water

Volume of hydrocarbon flared and ventedPerformance Indicators – Environment

Amount of drilling mud and cuttings

Benzene and sulfur content in diesel and gasoline

Operations where indigenous communities are presentor affected by activities and where specific engagementstrategies are in place

Number and description of significant disputes with localcommunities and indigenous people

Sites that have been decommissioned or are in theprocess of being decommissioned

List of sites where resettlements took place, the numberof households resettled in each of the affected localitiesand how their livelihoods were affected in the process

Number of process safety events, by business activity

Volume of biofuels produced, purchased, and sold

••

•

•

•

••

•••

•

••

•

••

•

•

•

••

SR pp. 83–85

SR p. 83

SR p. 85

SR pp. 71–73, 79,86–88

SR pp. 71–73

SR p. 84

SR p. 71

SR p. 8; AR p. 15

SR p. 74

SR p. 19, 74–75

SR p. 70

SR p. 67, 77, 79

SR pp. 63, 77


SR pp. 71–73



SR p. 59

SR pp. 35–36; s. commentary

SR pp. 81–83, 88–89

SR. p. 73

SE11, SE12

SE14

n/a

HS4

HS4

HS4

n/a

p. 23

E3

E3

E5

E9

E4

E10

n/a

SE2

SE1, SE3

n/a

SE3

HS5

E3

10

1-10

SE8, SE9

1

8

SO4

SO5

SO8

PR1

PR3

PR6

PR9

OG1

OG2

OG3

OG4

OG5

OG6

OG7

OG8

OG9

OG10

OG11

OG12

OG13

OG14

Description Status Links IPIECA UNGC

Legend:

EC1 Key Performance Indicators

EC5 Additional Indicators

Actions Taken to

Implement Principle

• Fully reported

• Partly reported

Outcomes from

Implementing Principle

n.a. Not applicable

n.m. Not material

SR Sustainability Report 2011

AR Annual Report 2011

Statement/Commentary:

SO4

No groupwide systematic data

collection fully established.

Systematic reporting will be

set up in the long term.

OG7

The system to report drilling

mud and cuttings separately

from total waste will be fully

developed as foreseeable in

one year.

OG9

Some examples are given in

this report. Systematic report-

ing will be set up in the long

term.

OG10




term.

OG12




term.


Abbreviations

CEE Central and Eastern EuropeCNG Compressed natural gasCO2 Carbon dioxideCoC Code of ConductE&P Exploration and Production businesssegmentEBITD Earnings before interest, tax, anddepreciationESIA Environmental and Social ImpactAssessmentG&P Gas and Power business segmentGHG Greenhouse gasGRI Global Reporting InitiativeHAZID Hazard IdentificationHAZOP Hazard and Operability AnalysisHiPo High Potential IncidentIPIECA International Petroleum IndustryEnvironmental Conservation AssociationIVMS In-vehicle monitoring systemLPG Liquefied petroleum gasLTIR Lost-Time Injury Rate; number ofinjuries per one million working hoursMW MegawattNabucco Gas pipeline project; aims at con-nection the Caspian region with AustriaNOX Nitrogen oxidesOGP International Association of Oil & GasProducersPDS Performance & Development SystemPJ Petajoule: 1 PJ equals 1015 joulesppm Parts per millionR&D Research and DevelopmentR&M Refining and Marketing business segmentREACH Registration, Evaluation, Authorisa-tion, and Restriction of ChemicalsScope 1 Direct emissions; category of GHGaccounting as defined by the GreenhouseGas Protocol

Scope 3 Indirect emissions; category of GHGaccounting as defined by the GreenhouseGas ProtocolSEE Southeastern Europe TJ Terajoule: 1 TJ equals 1012 joulestoe Tonne of oil equivalentUNGC United Nations Global Compact

Imprint

Owner and publisher:

OMV AktiengesellschaftTrabrennstrasse 6–81020 Vienna, [email protected]

Concept, texts and layout:

akzente kommunikation und beratung gmbh,Munich

Photos:

OMV archive

Disclaimer

None of the information provided in thisSustainability Report constitutes or shall bedeemed to constitute an invitation to pur-chase or trade in stocks, securities of anykind, or American Depository Receipts (ADR)issued by OMV Aktiengesellschaft.

In the interests of simplicity and readability,the language used in this report is gender-neutral to the greatest extent possible; themasculine gender includes the femininewherever applicable.

Abbreviations, Imprint and Disclaimer

OMV Sustainability Report 2011 En

Documents

global compact

crisis management

filling stations

shale gas

reporting process

profitable growth

southern germany

past year