Our Approach to Corporate Responsibility

Our Policy

In our pursuit of the sustainable development, production and supply of energy, we engage in CSR management, which focuses on the Material Issues that are most important to both our business and our stakeholders. We dedicate our efforts to sustainability and value creation throughout our value chain.

CSR Implementation

We disclose our executive management's approach to sustainability, and have the CSR Committee chaired by the Representative Director, President & CEO in place to promote groupwide 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 of the CSR Committee). The Chairs of the Compliance Committee and the Corporate HSE Committee also attend the CSR Committee meetings to facilitate collaboration with their respective committees. We have also created a groupwide consultation system
supported by the Climate Change Strategy Working Group and the CSR Promotion Council, a subdivision of the CSR Committee comprising working-level members from various divisions.

Participation in External Initiatives

We promote sustainability practices with participation in both domestic and overseas initiatives, such as the United Nations Global Compact, the International Association of Oil & Gas Producers (IOGP), the Australian Petroleum Production & Exploration Association (APPEA), the Extractive Industries Transparency Initiative (EITI), IPIECA*1 , the Japan Petroleum Development Association (JPDA), and Japan Natural Gas Association.

Participation in the United Nations Global Compact

In December 2011, we became a signatory to the United Nations Global Compact and declared our support for its ten principles related to the four areas, human rights, labor, environment, and anti-corruption. Since FY2012, we have continuously participated in activities of the various sustainability-related subcommittees of the Global Compact Japan Network.

Identification of Material Issues and Prioritization Process

In April 2012, we identified five key issues among the seven core social responsibility subjects in ISO 26000 as Material Issues of importance for us and our stakeholders. In May 2015, we reexamined the Material Issues considering factors such as impacts of business activities associated with the progress of our key projects and changes to stakeholder priorities. As a result, we redefined the Material Issues by adding the sixth issue, “Governance.” Furthermore, our actions that should be prioritized for each Material Issue have been defined as Key Tasks, and have been incorporated into our PDCA *2 cycle to achieve continuous improvement. In FY2017, we incorporated the perspectives of Sustainable Development Goals (SDGs) *3 into the existing Key Tasks, mapped the Key Tasks through a four-step prioritization process (1. Issue identification and gap analysis, 2. Stakeholder dialogues, 3. Issue prioritization, and 4. Management review), and reevaluated the Key Tasks. We will continue to review the Key Tasks on regular basis.

Identification of Material Issues
Governance
Compliance
HSE
Local Communities
Climate Change
Employees
  1. *1IPIECA
    The global oil and natural gas industry association for environmental and social issues
  2. *2PDCA
    Plan-Do-Check-Act
  3. *3Sustainable Development Goals (SDGs)
    17 goals and 169 targets adopted by the UN Sustainable Development Summit in September 2015 that represent common goals for ending poverty, protecting the planet and improving the lives and prospects

Targets and Results of Material Issues

Governance

16 PEACE, JUSTICE AND STRONG INSTITUTIONS
Key Tasks Medium to Long-Term Initiatives and Directions FY2020 Results FY2021 Targets
Strengthen governance structure Improvement of the effectiveness of the Board of Directors, appropriate information disclosure including dialogue with shareholders, cooperation with stakeholders, and continuous enhancement of corporate governance
  • Strengthen the corporate governance structure, including enhancement of the supervisory role of the Board of Directors
  • Expand the discussion on business strategies based on Vision 2040 and the Medium-term Business Plan, and monitor the progress
  • Continued to implement a PDCA cycle to evaluate the effectiveness of the Board of Directors, and had evaluation performed by a third-party evaluation body
  • Setting discussion items for responding to low crude oil price and climate change, aiming to effective discussion of the Board of Directors
  • Held a roundtable meeting among the Directors for the exchange of views, with participation of climate change experts
  • Made steady progress in preparation for response to revision of Japan’s Corporate Governance Code and the restructuring of the Tokyo Stock Exchange, which are scheduled for 2021
  • Discussed matters relating to director nomination and compensation, with appropriate support and advice by the Nomination and Compensation Advisory Committee, and resolved the policy for determining individual directors’ compensation approved by the Board of Directors
  • Enhanced company’s tax management system through the recruitment of tax specialists
  • Enhancement of the corporate governance system through appropriate operation of the Board of Directors and continue to implement evaluation of the effectiveness of the Board of Directors. Continue the PDCA cycle
  • Respond to the amendment of the Companies Act, the restructuring of the Tokyo Stock Exchange and the revision of Japan’s Corporate Governance Code
  • Discuss matters relating to director nomination and compensation, with appropriate support and advice by the Nomination and Compensation Advisory Committee
  • Implement global expansion of the tax governance structure
Upgrade risk management system
  • Promoted Business Continuity Management (BCM)*1 for earthquake scenario activities and conducted training and education at corporate headquarters
  • Implemented and operated a crisis response system under the Corporate Crisis Management Team for the novel coronavirus disease (COVID-19)
  • Promote corporate headquarters-based BCM activities for earthquake scenarios, provide BCM education and training for employees, and update corporate headquarters BCP *2 for highly virulent infectious disease scenarios including measures to prevent the spread of the novel coronavirus disease (COVID-19)
  • Implement and operate a crisis response system under the Corporate Crisis Management Team for the novel coronavirus disease (COVID-19)
  1. *1Business Continuity Management
    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
  2. *2Business Continuity Plan
    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

Compliance

8 DECENT WORK AND ECONOMIC GROWTH
12 RESPONSIBLE CONSUMPTION AND PRODUCTION
16 PEACE, JUSTICE AND STRONG INSTITUTIONS
Key Tasks Medium to Long-Term Initiatives and Directions FY2020 Results FY2021 Targets
Respect human rights Appropriate responses to and full compliance with the laws and regulations of the areas in which we operate, anti-bribery and anti-corruption laws, judicial/administrative sanctions, international standards and ethics, and respect for human rights
  • Strengthen global human rights management structure
  • Strengthen supply chain risk assessment and compliance
  • Published the UK Modern Slavery Act Statement FY2019
  • Conducted human rights training for new recruits
  • Participated in the IPIECA human rights working group (ongoing)
  • Publish the UK and Australia Modern Slavery Act Statement FY2020
  • Continue human rights training for new employees
  • Strengthen human rights management
Comply with laws, prevent bribery and corruption
  • Conducted various types of compliance training, including harassment prevention training for managerial employees
  • Conducted ABC risk assessments at domestic offices in Japan
  • Launched and began operation of the INPEX Global Hotline
  • Participated in the anti-corruption working group of the Global Compact Network Japan (ongoing)
  • Continue to provide information on compliance and conduct education and training programs (including harassment prevention training for non-managerial employees at domestic offices in Japan)
  • Maintain initiatives aimed at bolstering global compliance systems (including continued operation of the INPEX Global Hotline, etc.)
  • Widely disseminate and strengthen the implementation of ABC regulations (including continued implementation of training and due diligence, etc.)
  • Continue to conduct ABC risk assessments at Japan and overseas offices
Conducting Environmental and Social Impact Assessment (ESIA) in supply chain
  • Administered a supplier self-assessment questionnaire including human rights and ABC to major domestic suppliers and contractors
  • Continued risk assessment including human rights, ABC of major domestic suppliers and contractors
  • Administered a survey on the status of operator initiatives for human rights, and ABC, in relation to non-operated projects
  • Continue to administer a supplier self-assessment questionnaire including human rights and anti-bribery and anti-corruption (ABC) to major domestic suppliers and contractors
  • Continue risk assessment including human rights, anti-bribery and anti-corruption (ABC) of major domestic suppliers and contractors, and improve the methods used for risk assessment
  • Participate in the supply chain working group of the Global Compact Network Japan

HSE

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
Key Tasks Medium to Long-Term Initiatives and Directions FY2020 Results FY2021 Targets
Prevention of major incidents Under our commitment to the HSE Policy, top management, managers and staff implement the process defined in the Corporate HSE Management System.
Think, act and promote safety culture as “Safety Number One” on INPEX Values and aim to achieve zero incidents and prevent major incidents
  • Promote actions to achieve the Revised HSE 3rd Phase Mid-term Plan (FY2016-2022)*3 including following actions:
    — Enhance effectiveness of the Corporate HSE Management System (HSEMS)
    — Improve HSE assurance and governance by continuous implementation of the risk management-based audits and HSE reviews
    — Fulfill HSE technical support by utilizing HSE human resources and foster HSE leaders by continuing to promote opportunities for acquiring HSE competencies
    — Develop HSE activities that incorporate opinions from worksites and improve HSE management based on the results of the HSE culture survey
    — Thoroughly prevent major incidents by promoting Process Safety management
    — Reduce incidents using leading indicators
    — Reinforce emergency and crisis response capability
    — Reinforce GHG emissions control and environmental management as well as promote management of social impacts
    — Implement initiatives based on the INPEX Group Health Statement and Corporate Health Management Standard
  • Enhanced the Corporate HSE Management System (established and revised a total of 6 Corporate HSE Standards, supported the creation of HSE engagement plans regarding the headquarters including non-operated projects, and established the Revised HSE 3rd Phase Mid-term Plan [FY2016-2022]*3).
  • Improved HSE assurance and governance (participated in 6 HSE reviews and conducted 2 risk-based audits at overseas sites remotely)
  • Provided HSE technical support (implemented 11 technical support operations)
  • Ingrained HSE risk management to prevent major incidents and disasters (held 6 training sessions and workshops, etc., for enhancement of HSE risk management for operated projects, prepared an annual report on process safety leading indicators, assisted in the establishment of safety cases both domestically and overseas, conducted HSEIA reviews, and conducted asset integrity management and process safety assurance reviews of the domestic E&P business, domestic energy business, and Ichthys LNG Project)
  • Reinforced emergency and crisis response capability (implementing countermeasures against COVID-19 using the Corporate Crisis Management Team as the secretariat, conducted emergency level 3 crisis response exercises two times based on the scenarios of a serious accident at a business site of the domestic energy business and a major earthquake striking directly beneath Tokyo metropolitan area, conducted functional training on 7 occasions, and revised a security response plan for Abu Dhabi Office)
  • Enhance the Corporate HSEMS (improve consistency between company regulations and HSEMS documents and complete standardization of HSE standards)
  • Improve HSE assurance and governance (improve the consistency and effectiveness of HSEMS through HSE reviews and risk-based audits)
  • Provide HSE technical support and foster HSE leaders (continue to secure HSE resource and promote more efficient acquisition of HSE competency through initiatives for comprehensive HSE training and exercises online)
  • Enhance process safety and asset integrity management (develop a dashboard to promote visualization of management situation, enhance process safety and asset integrity management through measurement of Tier 3 and Tier 4 leading indicators)
  • Reinforce emergency and crisis response capability (increase company-wide security and crisis management capabilities by reviewing the functions of the Corporate Crisis Management Team from various perspectives including Crisis Management Team formation, application software and exercise program)
Securing occupational health and safety
  • Strengthened HSE management at worksites (conducted safety document survey and HSE Forum, but did not carry out management site visits because of travel restrictions in place due to the COVID-19 pandemic)
  • Reduced the number of incidents (LTIF*4: 0.26 / TRIR*5 2.24; completed online curriculum on life-saving rules and published HSE Flash and Learning from Incident [LFI] )
  • Improved health promotion and maintenance program (developed health risk resisters for INPEX Standards and gathered information on COVID-19, issued an alert, and conducted survey led by the health and safety management division of the Corporate Crisis Management Team)
  • Strengthen HSE management at worksites (develop and execute an action plan for fostering HSE culture and HSE leadership based on the results of the HSE culture survey)
  • Reduce the number of incidents (provide incident information and causes in a timely manner using the newly introduced incident reporting system and prevent recurrence of similar incidents by measuring leading indicators such as implementation status of accident remedies)
  • Strengthen health management (enhance initiatives for employee health improvement, occupational health and safety and infection control based on the INPEX Group Health Statement and Corporate Health Management Standard)
Conserve biodiversity, manage water resource appropriately
  • Executed and reviewed a Corporate Environmental Management Plan including initiatives for biodiversity conservation and water management
  • Implement and revise Corporate Environmental Management Plan including actions for biodiversity conservation and water management

Conservation of biodiversity

  • Updated a protected areas database of adjacent to domestic and overseas project sites
  • Implemented marine environmental impact assessments at domestic projects
  • Participated in forestation and biodiversity conservation activities at domestic projects
  • Planned a simple survey of ecosystem of peripheral areas of domestic project sites (Nagaoka)
  • Implemented measures for specific invasive alien plant species at domestic projects
  • Implemented survey on current situation of biodiversity at overseas projects
  • Conducted biodiversity monitoring at overseas projects
  • Created a report about our biodiversity conservation activities

Conservation of biodiversity

  • Update the protected areas database of areas adjacent to domestic and overseas project sites
  • Implement marine environmental impact assessments at domestic projects
  • Implement measures for specific invasive alien plant species at domestic projects
  • Participate in forestation and biodiversity conservation activities at domestic projects
  • Conduct an ecosystem survey in peripheral areas of domestic projects (Nagaoka)
  • Conduct surveys on current status of biodiversity at overseas projects
  • Conduct biodiversity monitoring at overseas projects
  • Publish report on INPEX’s biodiversity conservation activities
  • Consider establishment of policy on biodiversity conservation

Water management

  • Conducted water stress assessments in project areas
  • Collected and analyzed data on water consumption in projects
  • Execute and review Corporate Environmental Management Plan including initiatives for biodiversity conservation and water management

Water management

  • Update water stress assessments in project areas
  • Comprehend water balance, as well as collect and analyze water consumption data of projects
  • Prepare report on the Group’s water usage and water risks
  • Consider establishment of policy on water risk management
  1. *3Revised HSE 3rd Phase Mid-term Plan
    (FY2016-2022)[PDF:6.31KB]
  2. *4Lost Time Injury Frequency
    Rate of injury resulting in fatalities or lost time per million hours worked
  3. *5Total Recordable Injury Rate
    Rate of total fatalities, lost work day cases, restricted work day cases, and medical treatment cases per million hours worked

Local Communities

1 NO POVERTY
8 DECENT WORK AND ECONOMIC GROWTH
9 INDUSTRY, INNOVATION AND INFRASTRUCTURE
10 REDUCED INEQUALITIES
17 PARTNERSHIPS FOR THE GOALS
Key Tasks Medium to Long-Term Initiatives and Directions FY2020 Results FY2021 Targets
Conducting assessments and measures to reduce impact on local and indigenous communities Contribute to regional development and the solution of social issues through projects, respecting human rights and the cultures and customs of the areas in which we operate
  • Comprehend community needs and conduct measures through engagement with stakeholders in the areas in which we operate

Japan

  • Provided information on operational status and safety management of the Naoetsu LNG Terminal through community briefings and public newsletters

Japan

  • Maintain positive relationships with stakeholders through continuous dialogue, including appropriate response to inquiries from local communities and publication of newsletters

Australia

  • Held more than 250 stakeholder engagement activities and provided more than 50 community updates
  • Received approximately 800 local operating area inquiries (of which 50 percent related to employment opportunities)

Australia

  • Maintain positive relationships with stakeholders and communities through proactive and integrated engagement

Indonesia

Conducted an environmental and social impact assessment, which has been undertaken every year since 2018. In 2020, assessed the impacts on communities during construction and operation phase and likewise conducted impact assessment in regard to concern of local communities

Indonesia

Continue to implement environmental and social impact assessment while maintaining positive relationships with stakeholders
Contribution to local economies

Global

  • Invested approximately 2.2 billion yen in social contribution initiatives

Global

  • Continue investments for social contribution initiatives in response to the needs of the local community

Australia

  • Supported more than 350 Larrakia individuals and facilities through the Larrakia Ichthys LNG Foundation Trust since its establishment in 2018
  • Retained 25 Aboriginal and Torres Strait Islander employees including the Solid Pathways program participants
  • Employed more than 100 Aboriginal and Torres Strait Islander people through Ichthys LNG operations’ contractors
  • INPEX and contractors engaged 8 Aboriginal and Torres Strait Islander businesses for a total value of more than A$4 million

Australia

  • Ensure the success of the Larrakia Ichthys LNG Foundation Trust
  • Increase INPEX Australia’s direct employment of Aboriginal and Torres Strait Islander peoples to 36 people or three percent of employees by the end of 2021
  • Employ an average of 60 Aboriginal and Torres Strait Islander peoples through our Ichthys LNG operations’ contractors each year from 2019 to 2021
  • Increase the number of Aboriginal and/or Torres Strait Islander majority owned businesses engaged by INPEX and its contracting partners by 50 percent with a total contract value between 2019 to 2021 being greater than A$ 1 million

Climate Change

7 AFFORDABLE AND CLEAN ENERGY
9 INDUSTRY, INNOVATION AND INFRASTRUCTURE
13 CLIMATE ACTION
Key Tasks Medium to Long-Term Initiatives and Directions FY2020 Results FY2021 Targets
Promote development of natural gas as a more environmentally friendly source of energy Strengthen governance systems and promote initiatives in the areas of business strategy, risk and opportunity assessment, and emission management, so as to contribute towards the realization of the Paris Agreement goals on climate change
  • Implement initiatives aimed at the realization of the net zero carbon society
  • Undertake continuous information disclosure in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)
  • Achieved stable and efficient production operations in the Ichthys LNG Project
  • Continued a stable supply of natural gas and increased supply volume through the safe operation of gas fields, the Naoetsu LNG Terminal and the approximately 1,500 km long, high-pressure gas pipeline network in Japan
  • Implemented proposal activities to promote natural gas utilization
  • Promoted construction operations for local smart energy projects using gas cogeneration facilities
  • Implemented carbon neutral gas proposal activities in Japan
  • Created a system for the inspection, data compilation and reporting on methane dissipation from equipment and machinery at business sites in Japan
  • Continue to achieve stable and efficient production operations at the Ichthys LNG Project
  • Maintain a stable supply of natural gas and increase supply volume through the safe operation of gas fields, the Naoetsu LNG Terminal and the approximately 1,500-kilometer long, high-pressure gas pipeline network in Japan
  • Engage in activities to promote natural gas utilization
  • Start commercial operation of local smart energy projects using gas cogeneration facilities
  • Start sale of carbon neutral gas
  • Continue to improve management of GHG emissions, including methane
Strengthen climate-related risk management
  • Formulated guidelines for the assessment and management of climate-related risks and opportunities
  • Transformed the Climate Change Strategy Working Group into an advisory body of the CSR Committee
  • Disclosed greenhouse gas emissions on an equity share basis
  • Improved the company’s Carbon Disclosure Project (CDP) Climate Change score (from B to A-)
  • Announce the company’s Business Development Strategy, and set goals for climate change
  • Revise the company’s Corporate Position on Climate Change
  • Formulate Guidelines for Transactions and Management of VCUs*6
  • Formulate Guidelines for Management of Climate Change Goals
Promote renewable energy business
  • Ensured stable operation of photovoltaic power generation facilities
  • Ensured stable operation of the Sarulla Geothermal IPP Project in Indonesia
  • Continued environmental impact assessments and conducted flow tests with all production and reinjection wells in the Oyasu region in Akita Prefecture. Continued surveys on geothermal resources at Amemasudake, Hokkaido
  • Conducted preparation work toward final investment decision (FID) for the domestic wind power business
  • Continued R&D of technologies that contribute to building an electricity-hydrogen-methane value chain
  • Ensure stable operation of photovoltaic power generation facilities
  • Ensure stable operation at the Sarulla Geothermal IPP Project in Indonesia
  • Drive forward existing geothermal power generation business in Japan
  • Pursue new geothermal power business opportunities in Japan and overseas.
    Continue environmental impact assessments and flow tests with all production and reinjection wells in the Oyasu region in Akita Prefecture
  • Pursue onshore and offshore wind power generation business opportunities in Japan
  • Pursue new offshore wind power generation business opportunities in Japan and overseas
  • Continue R&D of technologies that contribute to building an electricity-hydrogen-methane value chain
  1. *6VCUs
    Verified Carbon Units

Employees

4 QUALITY EDUCATION
5 GENDER EQUALITY
8 DECENT WORK AND ECONOMIC GROWTH
Key Tasks Medium to Long-Term Initiatives and Directions FY2020 Results FY2021 Targets
Develop human resources and increase workforce motivation Develop a corporate culture that facilitates self-initiative and a strong sense of values and purpose for a diverse workforce in accordance with INPEX Values
  • Continue the promotion of INPEX Values
  • Develop an environment which enables a diverse workforce to demonstrate their talent

Global

  • Ongoing promotion of INPEX Values (including Values Award, etc.)
  • Conducted an engagement survey

Global

  • Continue promoting INPEX Values (including Values Award, group-wide promotion, etc.)

Japan

  • Ongoing facilitation of internal job posting
  • Continuation of career consultations for young corporate employees
  • Ongoing interviews with young technical employees for skill mapping
  • Reduced overtime hours and continued encouragement of the taking of paid leave
  • Expansion of business knowledge training through e-learning materials
  • Expansion of “career design” training program
  • Additional training for line managers
  • Converted some contract staff to regular employment
  • Introduced a return-to-work scheme
  • Introduced work-from-home arrangements
  • Began satellite office operation
  • Provided subordinate training seminars and remote-work focused mental health awareness sessions
  • Provided health-related seminars on topics including smoking, dealing with back pain, stretching exercises to improve bodily functions, etc.
  • Selected for 2020 Health & Productivity certification
  • Obtained certification in the large enterprise category of the 2020 Certified Health & Productivity Management Outstanding Organizations Recognition Program (White 500)

Japan

  • Continue facilitation of internal job posting
  • Continue providing career consultations for young corporate employees
  • Initiate career consultations for senior employees, and continue skill mapping interviews for young technical employees
  • Continue reducing overtime hours and further encourage employees to take paid leave
  • Eliminate core time from the flextime working system
  • Introduce a new scheme for “internal side work”
  • Expand work-from-home arrangements
  • Implement well-being workshops
  • Hold seminars on psychological safety
  • Introduce a training program for the next generation of leaders
  • Introduce online learning materials to enhance the English-language business skills of all employees
  • Introduce team-building initiatives
  • Continue providing health-related seminars
  • Realize continued Health & Productivity certification
  • Realize continued certification from the Certified Health & Productivity Management Outstanding Organizations Recognition Program
Promote diversity

Global

  • Regular exchanging of views among diversity contacts at global offices

Global

  • Provide opportunities for employees from overseas offices to gain experience at other worksites

Japan

  • Ongoing training for managers of people with parental responsibilities
  • Continued LGBT awareness training
  • Achieved Silver “Work with Pride 2020” certification
  • Held a chat-based social event for employees with impaired hearing

Japan

  • Continue measures based on our General Employer Action Plan to promote the active participation of women
  • Develop policies for same-sex partners and their children to enjoy the same treatment as the family members of other employees
  • Implement unconscious bias training