Targets and Achievements - INPEX Sustainability Report 2022 (for FY2021)

Strengthen our governance structure
FY2021 Achievements	FY2022 Targets	Medium- to Long-Term Targets, Initiatives and Directions
Enhanced our corporate governance system through the proper operation of the Board of Directors and continued to evaluate the effectiveness of the Board of Directors and run the PDCA cycle Responded to revisions of the Companies Act and the Corporate Governance Code, and to Tokyo Stock Exchange reforms	Enhance the corporate governance system through appropriate operation of the Board of Directors, and continue to evaluate of the effectiveness of the Board of Directors and run the PDCA cycle Regularly report to the Board of Directors on progress and action plans for INPEX projects (including net zero programs) Promote efforts to optimize the Board of Directors (in terms of diversity, size and composition) based on Nomination and Compensation Advisory Committee discussions of the vision for the INPEX Board of Directors	Improve the effectiveness of the Board of Directors, appropriately disclose information (including through dialogue with shareholders), cooperate with stakeholders, and continuously enhance corporate governance Strengthen the corporate governance structure, including enhancement of the supervisory role of the Board of Directors Deepen discussion by the Nomination and Compensation Advisory Committee toward achieving further diversity of the Board of Directors, and provide feedback on those discussions to the Board Enhance discussion on business strategies supporting INPEX Vision @2022, its associated Medium-term Business Plan, and anticipated future business development, and monitor the progress made
Discussed the nomination and remuneration of Directors with the appropriate involvement of the Nomination and Compensation Advisory Board Published a Director skill matrix Established a subcommittee comprising independent directors and external lawyers to review our executive compensation system Study and formulation of proposals by the subcommittee for reforming the executive compensation system	Optimize the number of Directors for more efficient discussions and agile decision-making Further enhance the Board of Directors’ diversity based on the Directors skill matrix Introduce and implement a new system of executive compensation aligned with key goals of the Medium-term Business Plan
Expanded the tax governance structure across our global operations	Strengthen management of global tax risks arising out of overseas sites’ operations and cross-border transactions, through appropriate management of the tax governance structure

Strengthen our risk management system

FY2021 Achievements

FY2022 Targets

Medium- to Long-Term Targets, Initiatives and Directions

Held 10 IVAS¹ Committee meetings
Provided the Board of Directors with an executive summary of risk assessment results for major projects

Hold IVAS Committee meetings as appropriate
Provide the Board of Directors with monthly progress reports and action plans for INPEX projects (including net zero programs)

Continue implementing and monitoring measures to manage critical risks and issues identified by each division under the Medium-term Business Plan

Held two Information Security Committee meetings
Held two training sessions on targeted email attacks
Conducted an e-learning lesson on information security
Monitored security and responded to issues through the internal security team

Hold two Information Security Committee meetings
Hold two training sessions on targeted email attacks
Conduct an e-learning lesson on information security
Monitor security and respond to issues through the internal security team

Promoted Corporate headquarters-based business continuity management (BCM)² activities for earthquake scenarios, and provided BCM education and training for employees
Implemented and operated a COVID-19 crisis response system under the Corporate Crisis Management Team

Promote Corporate headquarters-based BCM activities for earthquake scenarios and provide BCM training and education
Update and revise as needed the headquarters business continuity plan (BCP)³ for virulent infectious disease scenarios, based on review of COVID-19 measures
Continue operating the Corporate Crisis Management Team for COVID-19 and other pandemic-related BCP teams, and develop and execute a plan for disbanding those teams after the pandemic subsides

1	INPEX Value Assurance System
2	Business 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
3	Business 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

Supply Chain Risk Management
FY2021 Achievements	FY2022 Targets	Medium- to Long-Term Targets, Initiatives and Directions
Continued requirement for self-evaluation surveys (including questions on human rights and anti-bribery/anti-corruption (ABC) measures) by major domestic suppliers and contractors Continued risk assessment of major suppliers and contractors (including with regard to human rights and ABC measures), and improved the methods used for risk assessment Participated in Global Compact Network Japan’s supply chain working group	Publish our Supplier Code of Conduct Introduce CSR assessments and audits for major domestic suppliers and contractors Continue risk assessment of major suppliers and contractors, including with regard to human rights and ABC measures Continue participating in the supply chain working group of the Global Compact Network Japan	Strengthen supply chain risk assessment and compliance

Respect human rights
FY2021 Achievements	FY2022 Targets	Medium- to Long-Term Targets, Initiatives and Directions
Published respective FY2020 Statements pursuant to the UK Modern Slavery Act and the Australian Modern Slavery Act Continued conducting human rights training for new employees Held a human rights seminar for major vendors conducted by an external instructor	Publish respective FY2021 Statements pursuant to the UK Modern Slavery Act and the Australian Modern Slavery Act Continue conducting human rights training Review human rights due diligence questionnaire Conduct interview surveys with operating sites	Fully comply with and appropriately respond to the laws and regulations of the areas in which we operate, including ABC laws, judicial/administrative sanctions, international norms and ethics, and full respect for human rights Continue human rights due diligence

Comply with laws, prevent bribery and corruption
FY2021 Achievements	FY2022 Targets	Medium- to Long-Term Targets, Initiatives and Directions
Facilitated thorough awareness of compliance and enhanced education and training programs (including harassment prevention training for non-managerial employees at domestic offices, and exchanges of insights and opinions with compliance teams in other companies) Bolstered global compliance systems (including continued operation of the INPEX Global Hotline, etc.) Widely disseminated and strengthened the implementation of ABC regulations (including continued implementation of training and due diligence activities) Continued to conduct ABC risk assessments at domestic and overseas offices	Ensure thorough awareness of compliance and enhance education and training programs (including e-learning, compliance awareness surveys and training based on the survey results, and response to revisions of the Whistleblower Protection Act) Bolster 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 domestic and overseas offices	Fully comply with and appropriately respond to the laws and regulations of the areas in which we operate, including ABC laws, judicial/administrative sanctions, international norms and ethics, and full respect for human rights Continue human rights due diligence

Pursue climate change goals and provide TCFD-recommended disclosures
FY2021 Achievements	FY2022 Targets	Medium- to Long-Term Targets, Initiatives and Directions
Maintained stable and efficient production operations at Ichthys LNG Maintained 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-kilometer long, high-pressure gas pipeline network in Japan Engaged in activities to promote natural gas utilization Started commercial operation of local smart energy projects using gas cogeneration facilities Started sale of carbon neutral gas Continued to improve management of GHG emissions, including methane	Australia: Aim to further increase the current LNG production capacity to build a framework capable of stably producing 9.3 million tons per year at Ichthys LNG Abu Dhabi: Aim to further reduce production cost by optimizing personnel allocation and introducing new technologies, and supply offshore facilities with clean power Norway: Commence power generation at Hywind Tampen, and evaluate the introduction of hydropower from shore in the Wisting Oil Field development plan Japan: Save energy consumption, introduce carbon neutral power, implement zero flare measures Further expand carbon neutral products and marketing	Increase gas ratio of portfolio by raising gas investment ratio to about 70% Make our projects and operations cleaner by achieving zero routine flaring, introducing CCUS and renewable electricity, conserving energy, utilizing forestation credits, and other actions

Advancing five net zero businesses

FY2021 Achievements

FY2022 Targets

Medium- to Long-Term Targets, Initiatives and Directions

Achieved CDP Climate Change A- score for the second consecutive year
Revised our Corporate Policy on Climate Change
Set the goal for net zero carbon emissions by 2050
Formulated Guidelines for Climate Change Goals
Formulated the Guidelines for Transactions and Management of VCUs¹

Continue to achieve a CDP Climate Change A- score
Reduce net carbon intensity by 10% (4.1 kg/boe) or more between 2022 and 2024
Set and manage annual targets of emissions intensity on a project basis
Lay the groundwork for complying with ISSB² climate disclosure standards

Reduce GHG emissions intensity by 30% or more by 2030
Achieve zero routine flaring by 2030
Maintain methane emissions intensity (methane emissions/natural gas production) at its current low level (approx. 0.1%)

1	Verified Carbon Units
2	International Sustainability Standards Board

Cleaner oil & gas business and transition to natural gas

FY2021 Achievements

Targets to FY2023-24

Targets to FY2030

Hydrogen & ammonia

Began study for the commercialization of a clean ammonia production project in Abu Dhabi
Launched hydrogen and ammonia production demonstration project in Kashiwazaki, Niigata Prefecture

Commence operation of the hydrogen and ammonia production demonstration project in Kashiwazaki, Niigata Prefecture in FY2024
Continue studying the commercialization potential of a clean ammonia production project in Abu Dhabi
Consider and launch new projects in Japan and overseas

Commercialize three or more projects
Aim for hydrogen/ammonia production and supply of 100,000 tons/year or more

CCUS

Approved a development plan inclusive of a CCUS project for the Tangguh LNG project in Indonesia
Initiated a joint study to launch a CO₂EOR¹ pilot test at our Minami-aga Field Office

Begin injection testing in FY2023 for Minami-aga CO₂EOR pilot test
Advance preparations for introducing CCS at Ichthys LNG
Consider and launch new projects in Japan and overseas

Achieve annual CO₂ injection volume of 2.5 million tons or more
Become a leading company in CCUS by promoting technical development and commercialization

Renewable energy

Ensured stable operation of photovoltaic power generation facilities
Joined the Muara Laboh Geothermal Power Plant project in Indonesia
Propelled existing geothermal power generation business in Japan
Continued environmental impact assessment and flow tests of all production and reinjection wells in the Oyasu region of Akita Prefecture
Joined new offshore wind power project off Goto City, Nagasaki Prefecture, Japan
Joined offshore wind power project in the Netherlands

Ensure stable operation of photovoltaic power generation facilities
Carry out studies for stable operation and additional development at Muara Laboh Geothermal Power Plant project in Indonesia
Continue development of Oyasu Geothermal Power Project (Akita) and geothermal surveys at Amemasudake (Hokkaido)
Seek out other opportunities for new geothermal projects in Japan and overseas
Move forward with development at offshore wind power project off Goto City, Nagasaki Prefecture, Japan
Pursue development of promising offshore wind power projects in Japan and overseas toward large-scale commercialization of floating wind power generation

Aim to secure 1-2 gigawatt-scale installed capacity, mainly in the offshore wind and geothermal power generation business
Accelerate business expansion using assets acquired through M&A and other means as a platform

Carbon recycling & new business

Developed a drone-supported business concept with Terra Drone Corporation
Verified the effectiveness of an artificial photosynthesis project in Darwin, Australia
Signed a membership agreement with innovation platform Plug and Play
Began technical development toward the practical application of a methanation system at Nagaoka Field Office
Launched INPEX Challengers Program to promote creation of internal start-ups

Employ drones in facility inspections
Pursue further R&D in artificial photosynthesis
Construct a plant for planned 2025 launch of synthetic methane production as a methanation technical development project
Continue running the INPEX Challengers Program
Development of other new business projects

Promote the adoption of methanation in society
Supply about 60,000 tons of synthetic methane annually via our pipeline network

Forest conservation

Acquired 1 million tons of VCUs from Indonesia’s Rimba Raya Biodiversity Reserve REDD+ project, and started support for construction of orangutan conservation camp

Participate in and pursue development opportunities for forest conservation projects
Acquire about 1.5 million tons of forestation credits per year from leading forest conservation projects

Secure about 2 million tons of forestation credits per year from leading forest conservation projects by 2030 through project participation, development, etc.

1	Enhanced Oil Recovery

Prevention of major incidents

FY2021 Achievements

FY2022 Targets

Medium- to Long-Term Targets, Initiatives and Directions

Enhanced the Corporate HSE Management System (revision/recompilation of the system’s various manuals to improve their conformance with our rules and standards).
Improved HSE assurance and governance by conducting four Corporate HSE audits at operator sites in Japan and overseas
Provided HSE technical support in 26 operations, and HSE leadership training that included a new seminar for HSE skill development covering areas of safety, health and environment
Enhanced process safety and asset integrity management by conducting HSE reviews and providing technical support (bowtie analyses, safety case reviews, etc.) at operator projects, and by commencing measurement and monitoring of Tier 3¹ and Tier 4² leading indicators
Thoroughly implemented serious incident management by reporting, investigating, and statistically analyzing serious/high-potential incidents, drawing lessons from them, and sharing our findings
Reinforced emergency and crisis response capabilities by continuing to respond to COVID-19 through the Corporate Crisis Management Team, share information, and make improvements, and by carrying out three Corporate-level crisis response trainings that simulated crises in Japan and overseas

Enhance the effectiveness of the Corporate HSE Management System: complete standardization of Corporate HSE Procedures and develop the next Corporate HSE Mid-term Plan
Strengthen HSE assurance and governance: conduct three Corporate HSE audits
Provide HSE technical support and foster HSE leaders: extend HSE technical support to renewable energy and other projects, and systematically provide HSE training
Enhance process safety and asset integrity management: conduct HSE reviews, support safety case implementation, and prepare related policies
Thoroughly implement serious incident management: report, investigate, and statistically analyze serious/high-potential incidents, draw lessons from them, and share our findings
Reinforce emergency and crisis response capabilities: strengthen defenses against emerging threats such as cyberattacks and the increased severity of natural disasters, and the platforms for security/crisis management

Achieve safe performance of high-risk operations and full prevention of serious incidents by thorough practicing the Life-Saving Rules and strengthening process safety management
Carry out actions that help improve HSE management

Senior executives demonstrate HSE leadership
Contribute to carbon-reduction projects through HSE management
Perform thorough risk management
Strengthen incident prevention efforts
Prevent leaks from facility processes
Prepare for emerging threats
Help to address global environmental challenges and create environmental value
Reinforce infection control measures

Compliance of executive management, managers, and staff with processes established under the HSEMS
Aim to achieve zero incidents and prevent major incidents by more firmly embedding the culture of the INPEX Value “Safety Number One”

1	Indicators to monitor the performance of barriers that prevent Tier 1 and 2 Loss of Primary Containment (LOPC) events
2	Indicators to monitor the implementation and effectiveness of the management systems elements

Securing occupational health and safety
FY2021 Achievements	FY2022 Targets	Medium- to Long-Term Targets, Initiatives and Directions
Strengthened HSE management at worksites by: analyzing HSE culture survey feedback to identify strengths/weaknesses of each division, and using the results to develop an action plan that will be incorporated in the next mid-term plan; and held annual HSE Forum Reduced the number of incidents by: revising the reporting/investigation standards; developing the reporting system and promoting its use; reporting, statistically analyzing, benchmarking, drawing lessons from incidents, and sharing the findings; and introducing incident management-related safety leading indicators Strengthened health management by: implementing measures against COVID-19; conducting a health performance survey; holding health-related seminars; revising the Corporate Health Management Standard; and drafting health risk register standards	Strengthen HSE management at worksites: formulate/implement action plan based on the results of the HSE culture survey; reinforce coordination between Corporate and operator projects; and hold HSE Forum Reduce the number of incidents: issue incident bulletins; draw lessons from incidents; statistically analyze and benchmark incidents; strengthen incident cause investigation; and promote introduction of safety leading indicators Strengthen health management: maintain COVID-19 measures; assess state of occupational health management at operating sites; carry out health programs; and enhance health risk assessments	Achieve safe performance of high-risk operations and full prevention of serious incidents by thorough practicing the Life-Saving Rules and strengthening process safety management Carry out actions that help improve HSE management Senior executives demonstrate HSE leadership Contribute to carbon-reduction projects through HSE management Perform thorough risk management Strengthen incident prevention efforts Prevent leaks from facility processes Prepare for emerging threats Help to address global environmental challenges and create environmental value Reinforce infection control measures Compliance of executive management, managers, and staff with processes established under the HSEMS Aim to achieve zero incidents and prevent major incidents by more firmly embedding the culture of the INPEX Value “Safety Number One”

Biodiversity conservation & water risk assessment
	FY2021 Achievements	FY2022 Targets	Medium- to Long-Term Targets, Initiatives and Directions
Executed and reviewed our Corporate Environmental Management Plan, including initiatives for biodiversity conservation and water management		Execute and review our Corporate Environmental Management Plan, including initiatives for biodiversity conservation and water management	Achieve safe performance of high-risk operations and full prevention of serious incidents by thorough practicing the Life-Saving Rules and strengthening process safety management Carry out actions that help improve HSE management Senior executives demonstrate HSE leadership Contribute to carbon-reduction projects through HSE management Perform thorough risk management Strengthen incident prevention efforts Prevent leaks from facility processes Prepare for emerging threats Help to address global environmental challenges and create environmental value Reinforce infection control measures Compliance of executive management, managers, and staff with processes established under the HSEMS Aim to achieve zero incidents and prevent major incidents by more firmly embedding the culture of the INPEX Value “Safety Number One”
Conservation of biodiversity	Updated the database of protected areas adjacent to domestic and overseas project sites Participated in forestation and biodiversity conservation activities at domestic projects (some activities were not held due to COVID-19 safety measures) Collected basic information on ecosystems, etc of peripheral areas of our domestic projects (Nagaoka, Joetsu, Kashiwazaki, Niigata) Surveyed the current situation of biodiversity at overseas projects (bird surveys & rare species surveys) Conducted biodiversity monitoring at overseas projects Considered the establishment of a biodiversity conservation policy	Update the database of protected areas adjacent to domestic and overseas project sites Participate in forestation and biodiversity conservation activities at domestic projects Conduct an ecosystem survey in peripheral areas of domestic projects (Nagaoka) Survey the current status of biodiversity at overseas projects Conduct biodiversity monitoring at overseas projects Establish the biodiversity conservation policy Consider revisions to biodiversity conservation targets and KPIs
Water management	Updated water stress assessments in project areas Assessed the current state of water balance of our businesses and collected/ analyzed data on the volume of freshwater/seawater intake and use Considered the establishment of a water risk management policy Responded to the CDP water security questionnaire	Update water stress assessments in project areas Assess the current state of water balance of our businesses and collect/analyze data on the volume of freshwater/seawater intake and use Consider revisions to water risk management targets and KPIs

Respect human rights
FY2021 Achievements	FY2022 Targets	Medium- to Long-Term Targets, Initiatives and Directions
Published respective FY2020 Statements pursuant to the UK Modern Slavery Act and the Australian Modern Slavery Act Continued conducting human rights training for new employees Held a human rights seminar for major vendors conducted by an external instructor	Publish respective FY2021 Statements pursuant to the UK Modern Slavery Act and the Australian Modern Slavery Act Continue conducting human rights training Review human rights due diligence questionnaire Conduct interview surveys with operating sites	Fully comply with and appropriately respond to the laws and regulations of the areas in which we operate, including ABC laws, judicial/administrative sanctions, international norms and ethics, and full respect for human rights Continue human rights due diligence

Comply with laws, prevent bribery and corruption
FY2021 Achievements	FY2022 Targets	Medium- to Long-Term Targets, Initiatives and Directions
Facilitated thorough awareness of compliance and enhanced education and training programs (including harassment prevention training for non-managerial employees at domestic offices, and exchanges of insights and opinions with compliance teams in other companies) Bolstered global compliance systems (including continued operation of the INPEX Global Hotline, etc.) Widely disseminated and strengthened the implementation of ABC regulations (including continued implementation of training and due diligence activities) Continued to conduct ABC risk assessments at domestic and overseas offices	Ensure thorough awareness of compliance and enhance education and training programs (including e-learning, compliance awareness surveys and training based on the survey results, and response to revisions of the Whistleblower Protection Act) Bolster 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 domestic and overseas offices	Fully comply with and appropriately respond to the laws and regulations of the areas in which we operate, including ABC laws, judicial/administrative sanctions, international norms and ethics, and full respect for human rights Continue human rights due diligence

Make INPEX the best place to work
	FY2021 Achievements	FY2022 Targets	Medium- to Long-Term Targets, Initiatives and Directions
Global	Continued promoting INPEX Values, including by presenting the annual Values Awards and holding workshops	Revise plans and measures for promoting INPEX Values Resume opportunities for overseas office employees to be assigned to our headquarters	Implement programs and promote a corporate culture that cultivates employee satisfaction/engagement Expand support for employee career development Create a workplace environment that supports diverse workstyles and employee well-being
Japan	Continued implementation of our internal recruitment system (job board) Introduced a new scheme to facilitate internal side work Continued providing career consultation to young office workers and holding skill mapping interviews with young technical employees Expanded career consultation to older workers Implemented well-being workshops Held seminars on psychological safety Launched Breakthrough Leaders Program for fostering the next generation of managers Introduced online learning materials to enhance the English-language business communication skills of all employees Started coaching sessions for participants in the general manager training program Revised work-from-home arrangements Introduced “super flextime” system Held two rounds of workplace COVID-19 vaccinations Introduced team-building initiatives Encouraged employees to take annual paid leave Held health-related seminars Received certifications by the 2021 Health & Productivity Stock Selection Program, and the 2021 Certified Health & Productivity Management Organizations Recognition Program Constructed a new employee dormitory Continued measures based on our General Employer Action Plan to promote women’s participation and advancement in the workplace Received Gold rating in the 2021 Pride Index and Best Practice Award from Work with Pride Developed policies for same-sex partners and their children to enjoy the same treatment as the family members of other employees Implemented unconscious bias training	Continue/improve the internal recruitment system (job board) Continue/improve the scheme facilitating internal side work Develop a comprehensive career development system, including career training and consultation Draw up measures for further building and instilling psychological safety in the workplace Establish a new leadership training program Establish a new training program for employees receiving promotions Launch Advanced Leaders Program to train candidates for general manager positions Create a system for managing employee self-directed learning Expand training, consultation, and other support for young employees in their first or second year on the job Establish a new leadership training program for female employees Continuously receive certifications by the Health & Productivity Stock Selection Program and the Certified Health & Productivity Management Organizations Recognition Program Expand occupational physician team Formulate policies to support personnel with cancer or incurable disease Conduct a third round of workplace COVID-19 vaccinations Reduce the amount of overtime work (average of all employees) from FY2021 level Increase the rate of annual paid leave taken (average of all employees) from FY2021 level Continue measures based on our General Employer Action Plan to promote women’s participation and advancement in the workplace Continuously receive Gold rating in the Pride Index from Work with Pride, and establish a support program with the assistance of LGBT experts Continue implementing unconscious bias training

Sustainability Report 2022 (for FY2021)

Sustainability Report 2022 (for FY2021)

Our approach

Governance

Compliance

Climate Change

HSE

People

Performance Data

Sustainability Material Issues: Targets and Achievements

Governance

Compliance

Climate Change

HSE

Local Communities

Employees

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