Independent assurance report to the management of OMV Petrom S.A.
We have been engaged by OMV Petrom S.A. (“OMV Petrom”, or the “Company”) to perform a ‘limited assurance engagement’, as defined by International Standards on Assurance Engagements, here after referred to as the engagement, to report on OMV Petrom’s English version of the 2020 Sustainability Report (the “Subject Matter”) for the year ended 31 December 2020.
Criteria applied by OMV Petrom
In preparing the Subject Matter, OMV Petrom applied the Global Reporting Initiative Standards (“GRI Standards”) Core Option (the “Criteria”).
OMV Petrom’s responsibilities
OMV Petrom’s management is responsible for selecting the Criteria, and for presenting the Subject Matter in accordance with that Criteria, in all material respects. This responsibility includes establishing and maintaining internal controls, maintaining adequate records and making estimates that are relevant to the preparation of the Subject Matter, such that it is free from material misstatement, whether due to fraud or error.
Our responsibility is to express a conclusion on the presentation of the Subject Matter based on the evidence we have obtained.
We conducted our engagement in accordance with the International Standard for Assurance Engagements Other Than Audits or Reviews of Historical Financial Information (‘ISAE 3000’) and the terms of reference for this engagement as agreed with OMV Petrom on 3 December 2020. Those standards require that we plan and perform our engagement to obtain limited assurance about whether, in all material respects, the Subject Matter is presented in accordance with the Criteria, and to issue a report. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risk of material misstatement, whether due to fraud or error.
We believe that the evidence obtained is sufficient and appropriate to provide a basis for our limited assurance conclusions.
Our Independence and Quality Control
We have maintained our independence and confirm that we have met the requirements of the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants, and have the required competencies and experience to conduct this assurance engagement.
EY also applies International Standard on Quality Control 1, Quality Control for Firms that Perform Audits and Reviews of Financial Statements, and Other Assurance and Related Services Engagements, and accordingly maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.
Description of procedures performed
Procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent than for a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed. Our procedures were designed to obtain a limited level of assurance on which to base our conclusion and do not provide all the evidence that would be required to provide a reasonable level of assurance.
Although we considered the effectiveness of management’s internal controls when determining the nature and extent of our procedures, our assurance engagement was not designed to provide assurance on internal controls. Our procedures did not include testing controls or performing procedures relating to checking aggregation or calculation of data within IT systems.
A limited assurance engagement consists of making enquiries, primarily of persons responsible for preparing the Subject Matter and related information, and applying analytical and other appropriate procedures.
Our main procedures included:
► Obtain an overview of the company’s activities, as well as its organizational structure and procedures;
► Conduct interviews with key personnel to understand relevant systems, processes and internal control procedures related to the content of the Subject Matter assured, which support the data collection;
► Examine relevant documents at the company’s management level to assess awareness and priority of reporting issues and to understand how progress is being monitored;
► Perform analytical procedures at company level;
► Perform virtual meetings with responsible persons from OMV Petrom Headquarters, Refinery Petrobrazi, CCPP Brazi, Asset Moldova and Asset Crisana to obtain evidence of performance indicators;
► Test, on a sample basis, how data are collected, collated, consolidated and reported;
► Assess the coverage of material issues which have been raised in stakeholder dialogues, in media reports and environmental and social reports of peers;
► Test, on a sample basis, the disclosure and presentation of the Subject Matter against the Criteria.
We also performed such other procedures as we considered necessary in the circumstances.
Based on our procedures performed and the evidence obtained, we are not aware of any material modifications that should be made to the Subject Matter for the year ended 31 December 2020, in order for it to be in accordance with the Criteria.
Ernst & Young Assurance Services S.R.L.
28 April 2021