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CSR
CORPORATE SOCIAL RESPONSIBILITY

Our Approach to Corporate Responsibility

Basic Policy

With the aim of sustainable energy development, we engage in CSR management which focuses our priorities on the Material Issues closely related to our business and stakeholders. We dedicate our efforts to striving for sustainability and value creation throughout our value chain.

CSR Promotion System

CSR Promotion System

We have disclosed the executive management's approach of sustainability, 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 subsidiary organization of the CSR Committee comprising working-level members from various divisions. By creating this link between top management and the divisions, we engage in sustainability practices based on a common ground of understanding.

*2 IVAS: INPEX Value Assurance System

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)
  • IPIECA
  • Japan Petroleum Development Association
    (JPDA)
  • Japan
    Natural Gas
    Association

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 us 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 stakeholders’ areas 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. In fiscal 2017, we incorporated the concept of Sustainable Development Goals (SDGs) *3 into high-priority topics and prioritized the Key Tasks in four steps: 1. Issue identification and gap analysis, 2. Stakeholder dialogues, 3. Issue prioritization, and 4. Management review.

*3 Sustainable Development Goals (SDGs): Seventeen goals and 169 targets 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.*4

*4 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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See “Targets and Results of Material Issues” for more information.

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.

Key Tasks FY2017 Targets FY2017 Results FY2018 Targets
Strengthen the
governance structure
  • 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
  • Improved the diversity of the Board of Directors by increasing the number of outside directors and appointing a female director
  • Mid to long-term corporate strategic management discussion held at the Board of Directors to support the development of Vision 2040 and Medium-term Business Plan 2018-2022
  • Conducted an evaluation of the Board of Directors as a whole and improved the operation of board meetings based on the evaluation results
  • Convened meetings of Nomination and Compensation Advisory Committee (held 4 times)
  • Continue initiatives to improve corporate governance, including in response to the revision of the Corporate Governance Code (e.g. introduce an executive officer stock compensation plan overseen by the Nomination and Compensation Advisory Committee)
  • Monitor status of Medium-term Business plan 2018-2022
  • Continue initiatives for the implementation of efficiency evaluations and improvements for the Board of Directors as a whole. (PDCA cycle)
Upgrade the risk
management system
  • Promote earthquake-related Business Continuity Management (BCM)*5 education and training activities to Tokyo (head office) personnel
  • Engaged in headquarters Business Continuity Management (BCM) activities for earthquakes (convening of the BCM headquarters Promotion Committee) and provided education and training to employees.
  • Conduct Tokyo Office-based BCM activities for earthquakes scenario, provide BCM education and training to employees, and review Tokyo office BCP *6 for highly virulent infectious disease scenarios.

*5 Business Continuity Management (BCM) : A proactive plan outlining the priority operations and steps to be taken in the event of a disaster to avoid or mitigate the risk of interruption to business activities.

*6 Business Continuity Plan (BCP) : The activities undertaken by a company to develop and maintain a business continuity framework and ensure overall preparedness by the company through education and training initiatives.

Key Tasks FY2017 Targets FY2017 Results FY2018 Targets
Respect for
human rights
  • Strengthen initiatives to improve human rights management, including formulation of human rights policy
  • Provide training on human rights management (Target attendance ratio: 90%)
  • Issued a FY2016 disclosure statement in response to the UK Modern Slavery Act 2015
  • Strengthened human rights management, including the introduction of a human rights policy
  • Conducted training on human rights management (98% attendance)
  • Strengthen initiatives to improve human rights management
  • Issue a FY2017 disclosure statement in response to the UK Modern Slavery Act 2015
  • Continue human rights management training for new recruits and mid-career employees
  • Implementation of human rights risk assessment on supply chain
Legal compliance,
prevention of bribery
and corruption
  • Continue ABC risk assessment at overseas offices
  • Widely disseminate and strengthen the implementation of ABC regulations (conduct of training, etc.)
  • Enhance global compliance systems
  • Conducted compliance training by work theme and level
  • Conducted an ABC risk assessment at one overseas office
  • Conducted ABC-related training (e-learning)
  • Engaged in global compliance activities through cooperation with the departments in charge of compliance at the Jakarta Office and Perth Office
  • Conduct compliance training by work theme and level
  • Continue ABC-related risk assessments at overseas offices
  • Widely disseminate and strengthen implementation of ABC regulations (through training and other means)
  • Enhance global compliance systems
Conducting
Environmental and
Social Impact
Assessment (ESIA)
in supply chain
  • Continue to participate in Global Compact Network Japan’s Supply Chain Working Group
  • Administer a cross-industry supplier self-evaluation questionnaire to main domestic suppliers and contractors
  • Continue to conduct risk assessments 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 the Supply Chain Working Group of Global Compact Network Japan
  • Administer a cross-industry supplier self-evaluation questionnaire to major domestic suppliers and contractors
  • Continue risk assessment of major domestic suppliers and contractors
Key Tasks FY2017 Targets FY2017 Results FY2018 Targets
Prevention of
major incidents
  • Improve the HSEMS *3 (revision of HSE Policy, HSEMS Manual and corporate HSE standards; expansion of HSEMS scope)
  • Raise the level of HSE assurance and governance (HSE reviews as planned along with HSEMS; introduction of risk management-based method into corporate HSE audit)
  • Strengthen the HSE risk management process (consideration of ALARP in risk management; preparation of safety cases and promotion of barrier management at major facilities)
  • Conduct crisis exercises on a more practical level (exercises for a Tokyo inland earthquake, commencement of the Ichthys LNG Project and gas leaks from gas pipelines)
  • Revised 5 corporate HSE Standards; introduced e-learning system for HSE education; discussed HSE management for non-operator projects
  • Conducted risk management-based corporate HSE audit at 3 operational organizations; participated in 15 HSE reviews responding to requests from the site
  • Reported HSE risks to the quarterly Management Committee; assisted preparation of a safety case for the oil terminal Naoetsu, Gas Guarico, and gas pipelines
  • Conducted emergency response exercises for: gas pipelines damages and gas leaks due to natural disaster; Ichthys LNG Project oil spills, and a Tokyo inland earthquake
  • Strengthen the HSE Management System (continuous improvement of HSE standards; establishment of the HSE management manual of non-operator projects)
  • Enhance HSE assurance and governance (improve the consistency and effectiveness of HSEMS through HSE reviews and audits; execution of HSE First policy)
  • Strengthen the HSE risk management process to prevent major incidents (promote safety case document creation and barrier management at major facilities; application of Process Safety leading KPIs)
  • Enhance emergency and crisis preparedness (Practical exercises for a Tokyo inland earthquake, the Ichthys LNG Project and the Naoetsu LNG Terminal)
Securing
occupational
health and safety
  • Provide HSE technical support and strengthen HSE management at worksites (promotion of HSE technical support beyond operator projects; management site visits to demonstrate leadership and share lessons learned)
  • Incident reduction target: LTIF*8 0.12 / TRIR*9 0.81 or less (achieving zero incidents or LTIF 0.12 /TRIR 0.81; improvement of incident reporting system; enhancement of leading KPIs)
  • Assisted preparation of more than 17 safety cases for operator projects; shared lessons for contractor HSE management at HSE Forum; conducted 8 management site visits
  • Built a system to share lessons learned from incidents; introduced global incident reporting software
  • Rate of Incidents: LTIF 0.28 / TRIR 1.74
  • Provide HSE technical support and strengthen HSE management at worksites (expansion of the support scope; site visit exchanges by site representatives; deepen mutual understanding with site workers)
  • Incident reduction (Target: LTIF 0.12 / TRIR 0.70 or less zero incidents of Process Safety KPI Tier 1 and 2; stringent safety controls for works at height or in confined space)
Environmental management
(Conservation of biodiversity,
appropriate water resource
management)
  • Strengthen environmental management and collect information on environmental risks (environmental impact assessment of our business, and plans to avoid or mitigate impact; continuing GHG emission risk management)
  • Began the Environmental Management Working Group quarterly discussions over company-wide environmental concerns; completed surveys on water and biodiversity
  • Strengthen environmental management and climate change risk management (GHG emission controls; plans for biodiversity, water, and companywide environmental KPIs)

*7 HSEMS : HSE Management System

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

*9 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

Key Tasks FY2017 Targets FY2017 Results FY2018 Targets
Conducting
assessments and
reduction measures
of impacts on
local communities
and 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 Project 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
Key Tasks FY2017 Targets FY2017 Results FY2018 Targets
Promotion of
renewable energy
  • Ensure stable operation of solar power generation facilities
  • Start commercial operations of second and third 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 operation of Unit 2 at the Sarulla Geothermal IPP Project in Indonesia, cleared a path to commercial operation of Unit 3
  • Geothermal plant in the Oyasu region in Akita Prefecture moved to the next-period survey phase; Continued drilling surveys and short-term fumarolic testing in the Amemasudake region of Hokkaido.
  • Set a clear path to the start-up of a domestic wind power business
  • Promoted R&D for construction of a renewable energy value chain, including artificial photosynthesis
  • Ensure stable operation of solar power generation facilities
  • Start commercial operation of Unit 3 of the Sarulla Geothermal IPP Project in Indonesia, achieve stable operations of the power plant as a whole
  • Promote existing geothermal power generation business in Japan
  • Pursue new geothermal and wind power business
  • Promote various forms of R&D towards the building of a renewable energy value chain
Development of
natural gas as
a cleaner source of
energy
  • 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; increase supply volume
  • Engage in activities to promote natural gas use
  • Achieved stable supply of natural gas through safe operation of domestic gas fields, the Naoetsu LNG Terminal, and a 1,500-km network of pipelines; Increased volume of gas supplied by 11.2% versus fiscal 2016
  • Proactively promoted natural gas to potential buyers along the domestic gas pipeline
  • 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; increase supply volume
  • Engage in activities to promote natural gas use
Strengthen climate
change-related risk
management
  • Introduce and implement internal carbon pricing
  • Develop scenarios for a low-carbon society
  • Hold climate change strategy workshops
  • Introduced and started administering internal carbon pricing in October 2017.
  • Established four scenarios for a low-carbon society including a 2°C scenario.
  • Held a climate change risk assessment workshop in December 2017
  • Erect a framework for assessing the risks and opportunities related to climate change
  • Construct a process for evaluating the financial effects of our ability to respond to the 2°C scenario
  • Construct a process for estimating the volume of methane leaks
Key Tasks FY2017 Targets FY2017 Results FY2018 Targets
Human resource
development and
improvement of
job satisfaction
  • Continue measures to instill INPEX Values
  • Provide career-building opportunities for employees
  • Put in place a framework for work style reform
  • Internal sharing of INPEX values case studies: Posted a handbook and case studies on the company intranet; “Value Awards” award system to encourage employees to provide case studies of excellence in practicing INPEX values
  • Introduced an internal recruiting system and a career consultation system for corporate employees
  • Reduced overtime work and improved the proportion of paid leave taken by introducing a staggered work hours system and a promotion to take paid leave
  • Take measures to instill INPEX Values and continue the Value Awards (including Group companies)
  • Continue the internal recruiting system and the career consultation system for corporate employees
  • Reduce overtime work and continue measures to improve the proportion of paid leave taken
Promotion of
diversity
  • Implement a revised employer action plan in accordance with the Act on Promotion of Women’s Participation and Advancement in the Workplace
  • Continue to promote diversity in the workplace (hiring of women, foreign nationals, and persons with disabilities)
  • Conducted training for managers and supervisors who oversee the work of employees at child-raising age
  • Conducted LGBT Training
  • Proactively hired women, foreign nationals, and persons with disabilities
  • Implement a revised 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 women, foreign nationals, and persons with disabilities)
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