Case study: How OMV creates economic value for its stakeholders
OMV is one of Austria’s largest listed industrial companies, producing and marketing oil and gas as well as chemical solutions in a responsible way and developing innovative solutions for a circular economy. OMV aims to provide a secure supply of affordable energy for the sustainable development of society and the economy, while creating and distributing sustainable economic value for all its stakeholders.
This case study is based on the 2020 Sustainability Report by OMV, prepared in accordance with the GRI Standards, that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.
Abstract
Economic value generation and distribution is a key priority for OMV Tweet This!, as is inclusive financial growth and shared value creation. In order to create economic value for its stakeholders OMV took action to:
- create economic value for employees and suppliers
- create economic value for capital providers and shareholders
- create economic value for society
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With this case study you will see:
- Which are the most important impacts (material issues) OMV has identified;
- How OMV proceeded with stakeholder engagement, and
- What actions were taken by OMV to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2020 Sustainability Report OMV identified a range of material issues, such as expansion of new energy solutions, spills management, talent attraction and retention, asset integrity and process safety, diversity, inclusion, and non-discrimination. Among these, creating economic value for its stakeholders stands out as a key material issue for OMV.
Stakeholder engagement in accordance with the GRI Standards
The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:
Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.
Key stakeholder groups OMV engages with:
| Stakeholder Group | Method of engagement |
| Capital market participants
| · Regular reports and presentations · Roadshows · Annual General Meetings · Conferences · Socially responsible investor (SRI) meetings |
| Customers
| · Advertising · Events |
| Employees
| · Townhall events · Small update events with an Executive Board member · Internal newsletters · Infoscreens · Intranet · Internal blog |
| Governmental authorities
| · Information exchange · Relationship management · Regular reporting (as required by law) |
| Industry associations
| · Information exchange and regular contact with industry associations |
| Local communities | · Sustainability projects, sponsorships, and donations · Grievance mechanisms |
| Media
| · Press releases and conferences · Interviews |
| NGOs/NPOs
| · Social projects, sponsorships, and donations · Stakeholder dialogue and grievance mechanisms |
| Peer companies, competitors, joint venture and other business partners | · Industry meetings · Contracts · Participation in working groups such as IPIECA, IOGP
|
| Scientific and research institutions
| · Joint projects with industry partners, scientific organisations, and universities · Conferences and lectures |
| Suppliers and contractors
| · Negotiations and contracts · Supplier audits and assessments · Supplier events |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics OMV conducted online surveys among its stakeholders, with a total of 225 responses received. The stakeholder groups engaged were OMV employees, NGOs/NPOs, governmental authorities, media, capital market participants, suppliers and contractors, customers, joint venture and other business partners, competitors, scientific and research institutions, industry associations, and local communities.
What actions were taken by OMV to create economic value for its stakeholders?
In its 2020 Sustainability Report OMV reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees and suppliers
- In 2020, OMV paid EUR 1,308 mn for employee wages and benefits and EUR 15,607 mn to suppliers.
- Creating economic value for capital providers and shareholders
- In 2020, OMV paid EUR 371 mn to capital providers (interest expense and other financial result) and EUR 879 mn to shareholders and hybrid capital holders (dividend distribution).
- Create economic value for society
- In 2020, OMV paid EUR 15 mn in social spending.
Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?
The GRI Standard addressed in this case is: Disclosure 201-1 Direct economic value generated and distributed
Disclosure 201-1 Direct economic value generated and distributed corresponds to:
- Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth
- Targets: 8.1, 8.2
- Sustainable Development Goal (SDG) 9: Industry, Innovation and Infrastructure
- Targets: 9.1, 9.4, 9.5
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References:
This case study is based on published information by OMV, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:
https://www.omv.com/services/downloads/00/omv.com/1522200880397/dload_sustainability_report_2020_EN
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