Integration of ESG into decision making: Options, trade-offs and comparison - case study OMV

Alexander Baranowski

Research output: ThesisMaster's Thesis

Abstract

This thesis presents a novel methodology for assessing energy projects through ESG factors, explicitly focusing on their integration into NPV calculations and qualitative performance scoring. As the energy industry faces increasing pressure to address climate change and societal expectations, OMV, a leading multinational integrated energy company, acknowledges the necessity of embedding ESG considerations into its strategic and financial decision-making to maintain competitiveness and sustainability. This study advances OMV's current ESG framework by developing a dual approach: a monetary integration within NPV calculations and a non-monetized ESG KPI scoreboard. The thesis harnesses a rich compilation of literature, industry best practices, and expert insights to identify pertinent ESG indicators and frame a comprehensive evaluation method. A case study contrasts a fossil fuel project with a renewable initiative, demonstrating the methodology's practicality and its capacity to encapsulate a project's full spectrum of ESG-related risks, costs, and benefits. This research contributes to the growing discourse on sustainable project valuation, providing actionable insights for stakeholders and policymakers in the energy sector and beyond, advocating for informed, responsible energy project decisions that align with long-term sustainability objectives.
Translated title of the contributionIntegration von ESG in die Entscheidungsfindung: Optionen, Trade-offs und Vergleiche - Fallstudie OMV
Original languageEnglish
Awarding Institution
  • Montanuniversität
Supervisors/Advisors
  • Posch, Wolfgang, Supervisor (internal)
  • Püttmann, Jost, Supervisor (external), External person
  • Feichtinger, Gerald, Co-Supervisor (internal)
Award date22 Mar 2024
Publication statusPublished - 2024

Bibliographical note

embargoed until 05-02-2029

Keywords

  • Sustainability
  • ESG
  • Decision-Making
  • Energy Industry
  • Project Valuation
  • Renewable Energy
  • Fossil Fuels
  • Net Present Value
  • Financial Analysis
  • NPV in Energy Projects
  • ESG Integration
  • ESG Metrics
  • Climate Change Impact
  • Sustainable Energy
  • Financial Decision Making

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