Updated, Integrated Long-term Strategy at MOL

The Board of Directors of the Hungarian oil and gas trust MOL reviewed and approved 'MOL Group 2030+', an update of the company’s long-term strategy – which was originally announced in October 2016 –, fully integrated with a new sustainability strategy and complemented with a longer-term vision and ambitions beyond 2030.

A statement by the company says that MOL keeps key initiative as they proved to be progressive and successful, but now accelerate business transformation. The company will transform its traditional businesses for the low-carbon future by making them even more efficient and focused. Downstream will become a highly efficient, sustainable, chemical focused leading downstream player, Consumer Services will become a best in class digitally driven consumer goods retailer, and Upstream will also be a more efficient and sustainable, value-generating strategy pillar.

Chairman and CEO is quoted in the statement by saying that ”the MOL 2030 long-term strategy has so far proved to be progressive, credible and directionally correct. Accordingly, MOL has taken important strategic steps in the right direction over the past five years. However, we have observed an unprecedented pace of changes around us recently, including rapid progress in the green energy transition. Our updated strategy seeks to accelerate our transition process to enhance MOL’s resilience and our ability to shape a sustainable future. We will sharpen our focus, increase our efficiency further, while seeking new opportunities with a new determination. One thing has not changed since 2016: we remain deeply committed to the transformation of our traditional fossil-fuel-based operations into a low-carbon, sustainable business model.”

Investing in new businesses to shape a low-carbon circular economy
MOL wants to significantly increase its EU Taxonomy-aligned climate-friendly investments to exceed 50% of total capex by 2030 and to approach 100% by 2050, or earlier. MOL also wants to play a key role in shaping the low-carbon circular economy with investments in new businesses such as waste integration and utilization, recycling, carbon capture, utilization and storage (CCUS), advanced biofuels and potentially hydrogen-related opportunities. In the next five years, MOL will spend USD 1bn on new, low-carbon and sustainable projects to become a key player in CEE in the circular economy.

Significant carbon reduction targets by 2030, fully aligned 2050 ambitions with the EU Green Deal
In line with the Paris Agreement and the need for globally coordinated efforts to limit global warming and climate change, it is also the role of MOL to contribute to the decline in carbon emissions from its value chain and operated assets. Accordingly, MOL will reduce group-level emissions by 30% by 2030, make both E&P and Consumer Services carbon-neutral (in terms of Scope 1 and 2 emissions) by 2030, while Downstream emissions (Scope 1 and 2) will be reduced by 20% by 2030 (from a 2019 base) for existing operations. MOL also shares the EU’s ambition to be climate-neutral by 2050 in terms of all (Scope 1, 2 and 3) carbon emissions and wishes to actively participate in the industrial revolution required to make Europe carbon-neutral, both on its own and in partnering with others.