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CSR
CORPORATE SOCIAL RESPONSIBILITY

Our Approach to Corporate Responsibility

Basic Policy

INPEX aims to be a company that wins, retains and builds upon the deep-rooted trust of its stakeholders as an indispensable member of society by considering society’s expectations and engaging in sustainability practices focused on Material Issues closely connected to our business.

CSR Promotion System

CSR Promotion System

We have clearly expressed executive management’s CSR stance and established the CSR Committee, chaired by the Representative Director, President & CEO in order to promote companywide and systematic sustainability practices. The CSR Committee members include the Representative Directors, the head of the General Administration Division, and the head of the Corporate Strategy & Planning Division (vice-chair). The Chairs of the Compliance Committee and the Corporate HSE Committee attend CSR Committee meetings to facilitate collaboration with their respective committees.

*1 CSR Promotion Council: A subordinate organization of the CSR Committee comprising by working-level members from various divisions. By creating this link between top management and the divisions, we engage in CSR activities on a common ground of understanding.

External Initiatives in which INPEX Participates

In response to the demands of global society, we promote sustainability practices and participation in both domestic and overseas initiatives.

  • The United Nations Global Compact
  • International Association of Oil & Gas Producers
    (IOGP)
  • The Australian Petroleum Production & Exploration Association
    (APPEA)
  • Extractive Industries Transparency Initiative (EITI)
  • the global oil
    and gas industry association for environmental and social issues
    (IPIECA)
  • Japan Petroleum Development Association
    (JPDA)

Identification of Material Issues

In April 2012, we identified five key issues among the seven core social responsibility subjects in ISO 26000 as Material Issues of importance to INPEX and our stakeholders.

In May 2015, we reexamined the Material Issues in light of factors such as events that affect business activities associated with the progress of our main projects and changes in the stakeholder’s area of concern. As a result, we redefined the Material Issues to include “Governance.”

Furthermore, CSR actions that should be prioritized for each Material Issue have been defined as Key Tasks, and have been incorporated into our PDCA cycle in order to achieve continuous improvement. We plan to conduct regular reviews of the Key Tasks according to circumstances, as we do with the Material Issues. In fiscal 2017, we incorporated the concept of the Sustainable Development Goals (SDGs) *2 into high-priority topics and reviewed Key Tasks using the four steps shown in the figures below.

*2 Sustainable Development Goals (SDGs): Seventeen goals adopted by the UN Sustainable Development Summit in September 2015 that describe the UN’s agenda for people, planet and prosperity.

Key Tasks Prioritization Process

Click each step for more details.

↓This chart is scrollable horizontally.

  • STEP 1 Issue Identification and Gap Analysis
  • STEP 2 Stakeholder Dialogues
  • STEP 3 Issue Prioritization
  • STEP 4 Management Review

STEP 1:
We identified social issues that we should consider, making reference to INPEX policies, GRI Standards, the SDGs, assessment items of SRI research companies, and other criteria. In issue identification, we made reference to boundaries and the content of dialogues with stakeholders.*3

*3 See “Our Commitment to Stakeholders” for more information.

STEP 2:
In February 2017, we conducted a questionnaire to confirm stakeholder expectations and concerns with respect to issues that INPEX should address.

STEP 3:
Based on stakeholder survey findings, we evaluated social issues on two axes: importance to our stakeholders and importance to our business operations.

STEP 4:
INPEX Advisory Committee Member, Kaori Kuroda compiled qualitative information on the importance of issues to our stakeholders and their importance to our business operations. She reviewed and validated the matrix .

Matrix of Key Tasks

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Targets and Results of Material Issues

Click the icons of Material Issues for more details about relevant SDGs, target and results of Material Issues.

↓This chart is scrollable horizontally.

Relevant
SDGs
Key Tasks FY2016 Targets FY2016 Results FY2017 Targets
16: PEACE, JUSTICE AND STRONG INSTITUTIONS Development of a
governance structure
  • Evaluate the effectiveness of the Board of Directors as a whole and disclose a summary of the evaluation results
  • Evaluated the effectiveness of the Board of Directors as a whole, disclosed a summary of the evaluation results, identified and addressed points prioritized for improvement
  • Established the Nomination and Compensation Advisory Committee
  • Evaluate the effectiveness of the Board of Directors as a whole and engage in continuous initiatives to improve effectiveness (establishment of a PDCA cycle)
  • Ensure smooth operation of the Nomination and Compensation Advisory Committee
Development of a
risk management
system
  • Review the headquarters Business Continuity Plan (BCP)*4 for earthquakes and provide relevant education and training to employees
  • Reviewed the headquarters Business Continuity Plan (BCP) for earthquakes and provided education and training to employees
  • Practice headquarters Business Continuity Management (BCM)*5 for earthquakes and provide education and training to employees

*4 Business Continuity Plan (BCP) : The selection of key operations for continuation in the event of a disaster in order to prevent interruption. Prepare a system making it possible to continue such operations.

*5 Business Continuity Management (BCM) : Education and training to instill the formulation and maintenance of BCP initiatives, and renewing management activities to ensure regular business operations in emergencies.

Relevant
SDGs
Key Tasks FY2016 Targets FY2016 Results FY2017 Targets
8: DECENT WORK AND ECONOMIC GROWTH
12: RESPONSIBLE CONSUMPTION AND PRODUCTION
16: PEACE, JUSTICE AND STRONG INSTITUTIONS
Respect for
human rights
  • Continue to conduct CSR training
  • Strengthened initiatives to upgrade human rights management, including disclosure of a statement on the UK Modern Slavery Act 2015
  • Strengthen initiatives to upgrade human rights management, including formulation of human rights policy
  • Provide training on human rights management (Target attendance ratio: 90%)
Legal compliance,
prevention of bribery
and corruption
  • Continue Anti-Bribery and Anti-Corruption (ABC) risk assessment at overseas offices
  • Widely disseminate and strengthen implementation of the ABC Guidelines
  • Engage in activities for development of global compliance systems
  • Conducted ABC risk assessment at two overseas offices
  • Revised the ABC Guidelines, formulated procedures, and began implementation
  • Engaged in global compliance activities through cooperation with the departments in charge of compliance at the Jakarta Office and Perth Office
  • Continue ABC risk assessment at overseas offices
  • Widely disseminate and strengthen implementation of ABC regulations (conduct of training, etc.)
  • Enhance global compliance systems
Conducting
Environmental and
Social Impact
Assessment (ESIA)
in supply chain
  • Participate in Supply Chain Working Group of Global Compact Network Japan
  • Conduct risk assessment of main suppliers and contractors
  • Participated in Supply Chain Working Group of Global Compact Network Japan and contributed to preparation of a cross-industry supplier self-evaluation questionnaire
  • Conducted risk assessments of main domestic service and construction contractor candidates (eight ABC due diligence risk assessments, thirty HSE assessments)
  • Conducted risk assessments of main service and construction contractor candidates in Australia and Indonesia (ABC due diligence risk assessments, HSE assessments)
  • Continue to participate in Supply Chain Working Group of Global Compact Network Japan
  • Administer a cross-industry supplier self-evaluation questionnaire to main domestic suppliers and contractors
  • Continue to conduct risk assessments of main suppliers and contractors
Relevant
SDGs
Key Tasks FY2016 Targets FY2016 Results FY2017 Targets
3: GOOD HEALTH AND WELL-BEING
6: CLEAN WATER AND SANITATION
8: DECENT WORK AND ECONOMIC GROWTH
12: RESPONSIBLE CONSUMPTION AND PRODUCTION
14: LIFE BELOW WATER
15: LIFE ON LAND
Prevention of
severe accidents
  • Launch Corporate HSE Third Phase Mid-term Plan
  • Enhance HSE assurance and governance
  • Thorough accident and disaster prevention using the risk management process
  • Implement ICS *6 based Emergency Response Procedure through Level 3 crisis exercises
  • Revised the HSE Policy and the HSE Management System Manual
  • Conducted corporate HSE audits, HSE reviews, and management HSE site visits as planned
  • Reported HSE risk management information to the Management Committee, continued preparation of safety cases
  • Conducted Level 3 crisis exercises four times as planned
  • Improve the HSE Management System
  • Provide education and training for all employees
  • Raise the level of HSE assurance and governance
  • Strengthen the HSE risk management process
  • Conduct crisis exercises on a more practical level
Securing
occupational
health and safety
  • Provide HSE technical support and strengthen HSE management at worksites
  • Incident reduction target: LTIF *7 0.17 / TRIR *8 0.91 or less
  • Provided HSE technical support in Japan and overseas and shared HSE lessons learned from construction work at each business site at HSE forums
  • Incident reduction results: LTIF 0.11 / TRIR 0.97
  • Provide HSE technical support and strengthen HSE management at worksites.
  • Incident reduction target: LTIF 0.12 / TRIR 0.81 or less
Conservation of
biodiversity and
efficient use of
water resources
  • Comply with IFC *9 requirements and evaluate environmental risk management
  • Established the Environmental Management Working Group
  • Collect information on environmental risks
  • Strengthen environmental management

*6 Incident Command System (ICS) : Standardized system of emergency and crisis response

*7 Lost Time Injury Frequency (LTIF) : Rate of injury resulting in fatalities or lost time per million hours worked

*8 Total Recordable Injury Rate (TRIR) : Rate of total fatalities, lost work day cases, restricted work day cases, and medical treatment cases per million hours worked

*9 IFC : International Finance Corporation

Relevant
SDGs
Key Tasks FY2016 Targets FY2016 Results FY2017 Targets
1: NO POVERTY
8: DECENT WORK AND ECONOMIC GROWTH
9: INDUSTRY, INNOVATION AND INFRASTRUCTURE
10: REDUCE INEQUALITIES
17: PARTNERSHIPS FOR THE GOALS
Conducting
assessments and
reduction measures
of impacts on
local communities
and indigenous
communities
  • Maintain good relationships through continuous dialogue with stakeholders
Japan
  • Provided information on operating status and safety initiatives through community briefings and issuance of newsletters at the Naoetsu LNG Terminal
Australia
  • Provided more than 230 stakeholder information sessions and updates
  • Established INPEX Larrakia Advisory Committee and held six meetings
Japan
  • Maintain good relationships through continuous dialogue with stakeholders using community briefings, issuance of newsletters, etc.
Australia
  • Manage the impact on and concerns of local communities and stakeholders as the Ichthys LNG Project transitions from construction to operations phase.
Contribution to
local economies
Global
  • Planned social contribution activities: ¥2.87 billion
  • Continue to support community programs
Ichthys LNG Project
  • Continue to provide local employment and procurement opportunities in the project
Global
  • Social contribution activities result: ¥1.34 billion
Australia
  • Supported 39 community programs and initiatives in areas of operation
Ichthys LNG Project*10
  • More than 8,700 local Northern Territory employees have been engaged
  • More than 1,100 local Northern Territory businesses have secured contracts and procurement orders
  • More than A$17 billion in Project contracts, procurements and overhead commitments have been made in Australia
  • More than 1,200 Aboriginal and Torres Strait Islander peoples employed
  • 61 Aboriginal and Torres Strait Islander-owned businesses awarded contracts totalling more than A$150 million
Global
  • Social contribution activities plan: ¥1.64 billion
Australia
  • Continue to retain INPEX Australia’s 1% Aboriginal and Torres Strait Islander direct employees
Ichthys LNG Project
  • Develop and implement Ichthys LNG Project operations-phase strategy to establish longer-term community investments
  • Identifying appropriate Aboriginal and Torres Strait Islander direct employment targets to be in place for the Ichthys LNG Project operations phase
  • Setting Aboriginal and Torres Strait Islander employment targets for Ichthys LNG Project operations-phase subcontractors
  • Implementing, reviewing and updating an Aboriginal and Torres Strait Islander procurement strategy (by the end of 2018)

*10 All figures are cumulative totals from the start of development of the Ichthys LNG Project in 2012 until the end of 2016.

Relevant
SDGs
Key Tasks FY2016 Targets FY2016 Results FY2017 Targets
7: AFFORDABLE AND CLEAN ENERGY
9: INDUSTRY, INNOVATION AND INFRASTRUCTURE
13: CLIMATE ACTION
Promotion of
renewable energy
  • Ensure stable operation of solar power generation facilities
  • Start commercial operations of first unit of the Sarulla geothermal Independent Power Producer (IPP) Project in Indonesia
  • Promote commercialization of geothermal power generation business in Japan
  • Promote R&D of new energy and renewable energy
  • Ensured stable operation of solar power generation facilities
  • Started commercial operations of first unit of the Sarulla geothermal Independent Power Producer (IPP) Project in Indonesia in March 2017
  • Conducted drilling surveys in the Amemasudake area of Hokkaido, the Oyasu in Akita Prefecture, and the environs of the Bandaisan area in Fukushima Prefecture and shortterm fumarolic testing at a second well in the Amemasudake area
  • Promoted R&D of artificial photosynthesis, etc.
  • Ensure stable operation of solar power generation facilities
  • Start commercial operations of second and third units of the Sarulla geothermal Independent Power Producer (IPP) Project in Indonesia
  • Promote commercialization of geothermal power generation business in Japan
  • Promote R&D of new energy and renewable energy
Promotion of
environmentally
friendly
natural gas
development
  • Promote natural gas development activities
  • Expand the gas pipeline network, including the opening of Toyama Line operations
  • Engage in proposal activities to promote natural gas use
  • Expanded the total length of the gas pipeline network to approximately 1,500km by starting operation of the Toyama Line
  • Started supply of natural gas in areas along the Toyama Line (to Nihonkai Gas Co., Ltd., Nissan Chemical Industries, Ltd. Toyama Plant, Asahi Soft Drinks Co., Ltd. Hokuriku Plant)
  • Continue a stable supply of natural gas through safe operation of domestic gas fields, the Naoetsu LNG Terminal, and the approximately 1,500km gas pipeline network and increase supply volume
  • Engage in proposal activities to promote natural gas use
Addressing
climate change
  • Undertake energy conservation and energy efficiency improvement at operating sites and offices
  • Review the Japan Business Federation’s Commitment to a Lower Carbon Society Plan *11 of the JPDA
  • Revised the Position Paper on Climate Change
  • Held GHG management workshops
  • Introduce and implement internal carbon pricing
  • Develop scenarios for a low-carbon society
  • Hold climate change strategy workshops

*11 Commitment to a Lower Carbon Society Plan : This is an action plan in which since FY2013, Japan Business Federation has called on various trade associations to participate and coordinated their GHG emissions reduction initiatives. The JPDA participates in the action plan and has set targets for GHG (excluding concomitant CO2) emissions from mining facilities in domestic oil and natural gas development projects.

Relevant
SDGs
Key Tasks FY2016 Targets FY2016 Results FY2017 Targets
4: QUALITY EDUCATION
5: GENDER EQUALITY
8: DECENT WORK AND ECONOMIC GROWTH
Human resource
development and
fair evaluation
  • Continue holding global HR meetings
  • Continue to instill INPEX Values
  • Administration of an internal questionnaire on INPEX Values
  • Internal sharing of INPEX Values via publication of case studies and a handbook on the intranet
  • Continue holding global HR meetings
  • Continue measures to instill INPEX Values studies
Promotion of
diversity
  • Implement the employer action plan in accordance with the Act on Promotion of Women’s Participation and Advancement in the Workplace
  • Continue to promote diversity (hiring of females, foreign nationals, and persons with disabilities)
  • Published a feature article on women’s participation in the workplace in an in-house newsletter
  • Proactively hired females, foreign nationals, and persons with disabilities
  • Set up a counselling desk for persons with disabilities
  • Implement a revised employer action plan in accordance with the Act of Promotion on Women’s Participation and Advancement in the Workplace
  • Continue to promote diversity (hiring of females, foreign nationals, and persons with disabilities)

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Management Review Comments
from INPEX Advisory Committee Member, Kaori Kuroda



By their very nature, the global businesses of INPEX have a certain impact on communities and the environment in which INPEX operates. For this reason, society expects INPEX to engage in continuing initiatives to minimize negative effects, such as environmental impacts, and to maximize positive effects, such as the vitalization of local economies.
INPEX deserves recognition for its approach to identifying the Key Tasks involving serious engagement with stakeholders, such as gathering stakeholder opinions and reflecting them in its initiatives. I expect INPEX to establish a PDCA cycle by setting quantifiable KPIs and qualitative targets for the identified Key Tasks and continuously assessing results.

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