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CSR
CORPORATE SOCIAL RESPONSIBILITY

Local Communities

Basic Policy

INPEX is committed to building and maintaining trust with local communities through open and transparent engagement.
Dedicated community engagement teams are set up for our operator projects. In Australia, a community grievance management procedure is in place to appropriately address grievances received from local residents and no major grievances were reported in fiscal 2017.
In 2017, we issued the INPEX Group Human Rights Policy, based on the United Nations Guiding Principles on Business and Human Rights. The policy aims to recognize and respect the human rights of people in the communities, including indigenous communities, in which INPEX operates. In Australia, we are committed to working with Aboriginal and Torres Strait Islander peoples to build sustainable and mutually beneficial relationships as captured in our Aboriginal and Torres Strait Islander Engagement Policy. No involuntary resettlement of Indigenous community groups has been required by INPEX operated projects in 2017.
By applying the Creating Shared Value (CSV)*1 philosophy to support initiatives that produce social benefits while meeting business objectives, we contribute to the development of local communities through employment opportunities, skills development, support for education, and environmental preservation.
In 2017, INPEX Australia began development of a community investment outcomes measurement framework in consultation with community partners. The framework will help us to evaluate the social outcomes and impact created by the initiatives in which we invest, and additionally support the community investment strategy that we will execute to complement the 40-year operation of the Ichthys LNG Project.

*1 Creating Shared Value : An approach proposed by Michael E. Porter and Mark R. Kramer in which social value is created by addressing social demands and generating economic value

Targets and Results

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Key Tasks FY2017 Targets FY2017 Results FY2018 Targets
Conducting assessments
and measures to
reduce impacts
on local indigenous
communities
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.
Japan
  • Provided information on operating status and safety initiatives through community briefings and issuance of newsletters at the Naoetsu LNG Terminal
Australia
  • Held approximately 300 stakeholder engagement activities
  • Among inquiries from local communities, we suitably adequately addressed community concerns (comprising 3% of all inquiries received)
  • Held six meetings with INPEX Larrakia Advisory Committee
Japan
  • Maintain good relationships with stakeholders through continuous dialogue including community briefings and issuance of newsletters
Australia
  • Continue to 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
  • Social investment plan: ¥1.64 billion
Australia
  • Continue to retain INPEX Australia’s 1% direct employees of Aboriginal and Torres Strait Islander descent
Ichthys LNG Project
  • Develop and implement Ichthys LNG Project operations-phase strategy to establish longer-term community investments
  • Identify appropriate Aboriginal and Torres Strait Islander direct employment targets to be in place for the Ichthys LNG Project operations phase
  • Set Aboriginal and Torres Strait Islander employment targets for Ichthys LNG Project operations-phase subcontractors
  • Review, update and implement an Aboriginal and Torres Strait Islander procurement strategy (by the end of 2018)
Global
  • Actual social investment was ¥1.41 billion
Australia
  • Retained INPEX Australia’s 1% Aboriginal and Torres Strait Islander employees
Ichthys LNG Project
  • Framework is being established for a mid-term social contribution strategy and evaluations of social contribution effects
  • “Target-setting deliberations in progress” for direct and indirect employment of Aboriginal and Torres Strait Island workers in the project operations phase
  • Contracted 62 Aboriginal and Torres Strait Islander owned businesses to a value over A$157 million during the onshore construction phase since its commencement
Global
  • Social investment plan: ¥1.61 billion
Australia
  • Finalize and implement mid-term community investment strategy and outcomes measurement of key community investments
  • Increase Aboriginal and Torres Strait Islander recruitment and retention (direct & indirect)
  • Increase Aboriginal and Torres Strait Islander supply diversity

Case Study 01

Listening to the community

The Catalina Creeks (two rivers shown in the foreground of the image) and the product loading jetty (shown at the center left of the image)

In Darwin, fishing is a huge part of life, with an estimated one-in-three households having access to a fishing boat. How the Darwin Harbour is utilised is therefore incredibly important to the community and it was essential to proactively seek feedback on the Ichthys LNG Project concept.
We started engaging with local communities and stakeholders in Darwin - the location for the Ichthys LNG Project’s onshore operations- early in the Project’s lifecycle.
For example, community feedback helped to shape project execution decisions concerning public access to Darwin Harbour’s Catalina Creeks, a popular local fishing spot located next to the Project’s onshore processing facilities. The original concept for the Project’s product loading jetty could have impeded or even prevented public access to this important recreational area.
This community feedback was a key factor in the redesign of the product loading jetty and implementation of a marine safety zone around the plant site to maximise the safety of the harbor, while also ensuring that public access to the popular Catalina fishing creeks was maintained.

Case Study 02

Celebrating a remote Aboriginal community’s airport ownership

Djarindjin Airport’s local Aboriginal refueling team

In April 2009, INPEX formed a partnership with the Djarindjin Aboriginal Corporation for the long-term use of Djarindjin Airport, which is located 185 kilometers north of Broome on the remote Dampier Peninsula in the Kimberley region of Western Australia.
Because of its close proximity to Broome - a support and logistics hub for the Ichthys LNG Project’s offshore works and the offshore Browse Basin where the Ichthys gas field is located, the airport was an ideal location for the refueling and emergency landing of helicopters to and from the Ichthys offshore facilities. However, the airport required major upgrades to support the operation of a world-class project, including airstrip resealing, expansion of fuel facilities, and the installation of shelters and an automated weather station.
Realizing its potential to enable a dedicated income stream and employment opportunities for the community, the Djarindjin Aboriginal Corporation decided to upgrade the airport and took out a substantial loan to finance the work. In April 2018, a ceremony was held to celebrate the significant achievement of the Djarindjin Aboriginal Corporation fully repaying the loan and thereby becoming Western Australia's first Aboriginal-owned airport operator.
Members of local Aboriginal communities have been employed to support ongoing maintenance of the airport. The refueling team is led by local man, Kimberley (Kim) Baird, who was recognized at the celebration event for his contribution and vision. Having overcome significant personal challenges himself, Kim understood the issues in developing a local workforce that includes individuals with an array of personal difficulties associated with the use and misuse of drugs and alcohol and mental health problems, as well as individuals with limited work experience.
Kim’s dedication to developing a local team paid off. Today, Aboriginal refueling crew supports the INPEX Ichthys and Shell Prelude LNG projects and operates to international safety standards while undertaking ‘hot’ refueling of up to 24 helicopters per day.

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