Statement on sustainability

Statement on sustainability

In today’s turbulent global environment – marked by geopolitical tensions, disruptive changes, and growing uncertainties, including in energy supply – long-term perspectives and reliable partnerships are particularly important. At RAG Austria AG, we are committed to providing transparent information about our business activities, priorities, measures, and sustainability developments on a voluntary basis, reflecting our sense of responsibility.

The last few years, marked by ongoing crises such as a global pandemic, the war in Ukraine, and rapidly advancing climate change, have impressively demonstrated how closely energy supply, geopolitical challenges, and economic performance are linked. While public debate is increasingly focused on a purely renewable energy supply, the importance of fossil fuels, especially natural gas, for global and European energy supply remains high. This relevance needs to be evaluated with greater realism and objectivity in public discourse. For example, demand for industrial processes and peak load periods will remain significant in the future. A secure and affordable energy supply is only possible if system constraints are recognized. For example, the current lack of long-term storage capacity for solar power means that solar, wind, and hydroelectric power must be curtailed in the summer, leaving them unused. This makes it even more important to push for technically and economically viable solutions to store excess solar power for the winter and make it available in the long term. We therefore need to undertake an honest assessment of the current regulatory and market framework conditions, without euphemism or unrealistic promises. Domestic production of crude oil and natural gas remains essential for security of supply and domestic economic value generation, as it is carried out to the highest standards and with lower CO2 emissions than all imports.

As one of Europe’s leading independent gas storage operators, RAG Austria AG has a special responsibility and a systemic role as critical infrastructure in the face of natural gas supply restrictions and changing energy flows in Europe. By acting quickly, we were able to continuously guarantee the security of supply and thus once again demonstrate our capabilities. We connected Haidach – our largest energy storage facility, with a storage volume of 2.98 billion cubic meters – to the Austrian grid as the storage operator in accordance with legal requirements. Freed-up storage capacities were again made available on the market through our subsidiary RAG Energy Storage GmbH (RES for short), and some were used as strategic gas reserves. Both the regular operation and the high availability of our facilities, as well as the precise provision of energy for our customers – and thus for the people of Austria and Central Europe – were and are guaranteed at all times.

Focus on sustainable energy mining

Our strategic focus on the security of supply is at the heart of our business activities and has proven both right and necessary, especially in recent years of crisis. Our infrastructure and services, along with the associated investments and the continuous expansion of storage solutions, have directly benefited Central Europe, its economy, and consumers. This experience confirms our sustainable approach, which is firmly embedded in our corporate strategy. At the same time, we are consistently pursuing the goal of gradually making our services for the secure supply of energy climate-neutral. This is realized, for example, through the use of photovoltaic systems, hydrogen production and storage as an energy source, and the use of these energy sources for electricity and heat generation in our H2 combined heat and power plants for our own energy supply. With our technology solutions, we also want to show our customers in Austria and Central Europe practical ways to achieve climate neutrality and to push forward these goals together.

Renewables and Gas – Shaping the future of energy

Our work focuses on combining security of supply with climate responsibility, or “renewables and gas.” We are making our contribution by further developing existing storage infrastructure, enabling new applications, and entering partnerships with industry and research. We are actively shaping the energy future: technology-neutral, practical, and responsible. Closely linked to the sustainable management of our underground porous natural gas storage, which in the future will also be increasingly used for hydrogen and green gas, we are committed to effective interaction among the generation, conversion, storage, and use of green energy. The energy transition can only succeed if we manage to store excess summer solar energy for winter use in the form of hydrogen, using it directly or as green electricity for industry, heating, and mobility during periods of low sun and wind. However, this requires room for innovation, crossindustry cooperation, appropriate regulatory frameworks, and technology neutrality.

Opening up new perspectives

For us, sustainability is not merely a concept, but an integral part of our daily work in all areas. We strive to achieve improvements along the entire value chain and further develop the energy industry and its technologies toward CO2 neutrality with our innovative strength, step by step, with foresight and responsibility.

Looking at what we have achieved confirms that we are on the right path to a sustainable energy future. On this basis, we are working on specific projects that address our key economic, social, and environmental issues and contribute to the ongoing development of our sustainability management. In our sustainability report, we show what we are achieving in the context of sustainability and security of supply, take stock, present the specific measures we are taking to become even better, and introduce you to our pioneering demonstration projects. We invite you to continue this path with us and explore new opportunities together.

The Management Board of RAG Austria AG