Sustainable Development framework

MOL Group is committed to sustainable development. We recognise the need to create shared values. We also regard SD as a benefactor to society and a provider of great value to our business as well.

Based on our commitment, we set up our own Sustainable Development Framework in 2006. On one hand we are to adopt and be in harmony with international best practices and requirements, while on the other hand we are to develop sustainable operations within the company as a long-term objective,. This framework provides MOL with an effective monitoring system and a robust planning and decision making-process.

The framework is based on the principle that SD should be an integral part of MOL’s day-to-day operations. This implies that the framework should be integrated into prevailing business strategies and recognised as a normal part of our business operations, embracing environmental and social considerations not just economic ones. There is, therefore, no such concept as a “sustainability strategy” or “sustainability budget” since every business strategy and budget should embrace sustainable development.

MOL carries out an annual company “screening”, and the aim of it is to assesses current practices and ensure that international best practices in the oil and gas industries are adhered to. The company screening also benchmarks documents against basic requirements of the international conventions to asses its overall performance.

The framework ensures the efficient achievement of our clearly stated strategic objectives and specific goals. It also acts as a powerful stimulus for ongoing MOL Group and Unit-level research, development efforts, enhances sustainability awareness and transparency.

Governance structure

The most senior SD Governance body in MOL, the Sustainable Development Committee (SDC) of the Board of Directors. The majority of the SDC members qualify as independent and non-executive. Chairman and the Deputy Chairman of the Supervisory Board are permanent invitees to the meetings of SDC, ensuring the highest commitment and representation of sustainability issues, both in internal and external MOL Group relations. The Committee reviews and approves SD related policies and long-term objectives.

The implementation of SD objectives is coordinated by the so-called Sustainable Development Panel, made up of MOL Business and Functional Unit representatives. The main duty of the members of the panel is to ensure the integration of sustainability approach into day-to-day business operations, and to coordinate the unit-level SD action plan.

The Head of SD oversees the development and implementation of Group-level SD actions, manages and controls the development and revision of group level SD strategic initiatives, and evaluates and reports on performances and results of SD issues at group level.

The SD Panel Head is the main bridge between the Management and the Business and Functional Units, with the main role of coordinating the operational work of the SD panel.

The core of the system’s operation is a cycle of several important steps which lead to the integration of the three SD pillars and the implementation of Sustainability principles in day-to-day operations.

The continuous interaction between Units and the outside environment produces information about best practices, international trends, important issues and events, changes in regulations or policies as well as stakeholder needs.

Team members analyse and discuss issues surfaced by the information, consider development opportunities and solutions, compare them with international trends and available options and propose the best available and effective options to the relevant decision-making body.