Respect for Human Rights

Our Policy

INPEX supports international norms such as the International Bill of Human Rights, the International Labour Standards of the International Labour Organization, the United Nations Guiding Principles on Business and Human Rights, and the human rights principles of the United Nations Global Compact. In FY2017, we issued the INPEX Group Human Rights Policy to clearly define our commitment to respecting human rights and fulfill our responsibilities in this regard. In accordance with that policy, we implement measures to address the human rights of all stakeholders in each country and region where we operate, including stakeholders in our supply chains. The policy prohibits all forced labor and child labor and affirms our respect for the protection of freedom of association and right to collective bargaining.

INPEX annually discloses our 'Modern Slavery Act Statement' to comply with the United Kingdom Modern Slavery Act and an 'INPEX Australia Modern Slavery Statement' to comply with the Australian Modern Slavery Act. These statements outline our policies, systems, and specific initiatives for preventing slave labor and human trafficking within the company and throughout our supply chain. Starting from FY 2022, INPEX Idemitsu Norge conducts due diligence on human rights and labor conditions in compliance with the Norwegian Transparency Act. We also publish an annual report called the 'Transparency Act Due Diligence Report' to disclose the implementation status.

In FY2023, to enhance our supply chain management we formulated Supplier Code of Conduct Guidelines. Additionally, we reviewed our human rights due diligence assessment sheets with the aim of reassessing the risks we face in our business. In FY2024, we plan to conduct surveys and interviews regarding human rights issues that are particularly relevant based on benchmark studies and trends across the oil, gas and renewable energy industries.

Management Structure

Our approach to human rights is outlined in the INPEX Group Human Rights Policy approved by our Board of Directors. The Compliance Committee reports to the Board on human rights-related risks and performance. For information regarding our compliance structure, please see Initiatives towards Promoting Compliance .

The INPEX Group Human Rights Policy, Sustainability Principles, Business Principles, and Code of Conduct require all of our officers and employees not only to comply with laws and regulations but also to respect social norms and act with high moral values. Our Business Principles makes the following statements concerning human rights.

• We recognize that human rights are important rights that derive from the dignity of individuals, and we respect the human rights of individuals in relevant countries.
• Non-complicity in human rights violations, compliance, social security, and fair competition: We respect international human rights codes, and we pay attention not to be involved in any act that may infringe human rights.
• Prohibition of discrimination and equality under the law: We do not discriminate based on factors such as race, skin color, gender, sexual orientation, gender identity, age, creed, religion, birth, nationality, disabilities, or educational background.
• Abolition of forced labor and child labor: We do not force employees to work against their will, and we do not cause children to work.

Human Rights Due Diligence

Since FY2016, we have been conducting human rights due diligence with the assistance of outside human rights experts at our sites in Japan and overseas to enhance our human rights management. Conducted in line with the INPEX Group Human Rights Policy, we have applied this due diligence to all seven of our operational sites in three countries as of the end of FY2023.

In FY2024, we added renewable energy business risks to our oil and gas industry risks and reassess human rights risks through our value chain with the cooperation of third-party organization.

These reassessments will extend to all of the stakeholders in our value chain—our employees, indigenous peoples, migrant workers, suppliers and contractors, and local communities.

For the projects for which INPEX serves as the operator, we manage social and environmental risks—including human rights due diligence—based on the Performance Standards of the International Finance Corporation (IFC), which are globally recognized guidelines for environmental and social risk management. We monitor compliance with these standards within the Ichthys LNG Project operations through regular reports and audits. IFC Performance Standard 2—Labor and Working Conditions covers forced labor, child labor, working conditions, and grievance mechanisms.

Desktop Investigation

In 2024, we updated our desktop investigation, expanding its scope to include renewable energy business and covering human rights risks to our employees, women, children, indigenous peoples, migrant workers, the employees of suppliers/contractors, and local communities.

• Utilized the database of RepRisk—a provider of the ESG risk research and analysis—to identify potential instances of human rights violations in the oil and gas sector
• Classified the country risk of the areas in which we operate into three levels (high/medium/low) based on documents issued by Verisk Maplecroft and other research organizations
• Performed studies of international norms, guidelines, and industry-related documents to identify critical human rights issues

Interview Surveys

• Conducted surveys and interviews—with reference to the Global Compact Self Assessment Tool for the Ten Principles of the United Nations Global Compact—at all of our sites to understand the status of responses to human rights risks identified through the desktop investigation
• Revised content of assessments to assess latent and manifest risks in FY2024

Examination and Implementation of Corrective Action Plans

• Confirmed the status of management of human rights risks, based on assessments in light of the results of the surveys mentioned above
• Provided feedback on the assessment results to each site and discussed future actions, such as widely disseminating the INPEX Group Human Rights Policy and providing human rights education
• Continued to provide human rights education as part of our efforts to strengthen respect for human rights based on the assessment results
• Conducted regular reviews of the risks and content of surveys to more precisely monitor the risks and actions to address them
• Investigated human trafficking, equal wages, and other human rights risk areas through a risk identification and assessment process (Considering geographical and other characteristics of our business operations, and the risk management already conducted, these areas were not deemed to be salient human rights risks for the Company.)

In FY2023, with no operational sites requiring a human rights-related mitigation plan, there were similarly no corrective actions required.

To avoid these risks, we are implementing the following measures.

Respect for human rights in the workplace

The following critical human rights issues relate to human rights risks in workplace environments: non-complicity in human rights violations, compliance, social security, fair competition, prohibition of discrimination, equality under the law, forced labor, child labor, occupational health and safety, working hours (rights to breaks and days off), appropriate working environments (including access to water), wages (right to enjoy an adequate standard of living), freedom of association and right to collective bargaining, responsible safety management, and more. We engage in the following activities with respect to these issues. For information regarding our helpline contact points, please see the Development and Operation of Whistleblower System section.

Raising Awareness of Human Rights

In FY2017, to deepen awareness of the importance of considering the human rights of various stakeholders as we go about our day-to-day business, we conducted human rights training for all officers and employees. Since FY2018, we have been providing this training every year to all new graduates and mid-career hires. Every year, to deepen awareness of the importance of considering the human rights of various stakeholders as we go about our day-to-day business, we conduct human rights training for new graduates and mid-career hires. This training emphasizes the importance of treating others sincerely, respectfully, and fairly, and all of our human rights training emphasizes respect for human rights.

Improvement of Working Environments

Aligned to our Code of Conduct, we strive to create sound working environments for our employees, which is in part achieved through fair working hours and wages.We ensure that standard working hours at all of our sites in Japan and overseas are a maximum of 48 hours per week, and any overtime work is performed with the consent of the employee concerned.We also pay wages to all employees at a level that exceeds the living wage of the site where they work. In addition to these measures, each year we administer a survey to employees to monitor their working environments and check that there are no human rights violations such as harassment.

Dialogue between Labor and Management

Our labor agreement with the INPEX Labor Union stipulates that the Union possesses the right to organize, the right to bargain collectively, and the right to act collectively. We strive to maintain and develop a healthy labor and management relationship by regularly providing opportunities for these parties to exchange views and ideas on a wide range of issues, such as challenges faced by the Company and future prospects, in addition to labor issues (health & safety, working environments, remuneration, working hours, training, career development, stress management, equal opportunities, etc.).

The Union is made up of a central head office and branches, and has established its branches at our five key sites in Japan. Furthermore, the central head office manages and handles seconded employees in Japan and other sites without branches.The central head office and the branches engage in close communication and dialogue regarding labor-management issues through biannual central labor-management meetings and labor-management meetings by five branches.Union officers go on-site to overseas sites once per year to engage in direct discussions with personnel dispatched overseas. They conduct local labor and living condition studies, perform document-based fact-finding studies for areas they were unable to visit in person, and share information regarding actual conditions at overseas sites and requests from locally stationed personnel with the Company (the head office Human Resources Unit and overseas offices) to address problems and make improvements.

We provide appropriate notification in advance of any operational changes that will significantly affect employees. No complaints have been received from the union since it was formed in FY2008.

External Stakeholders (Local Communities and Suppliers)

Establishment of Grievance Mechanism

We actively respond to inquiries, complaints, and grievances from all stakeholders at all of our sites in Japan and overseas. We have a dedicated page on our website for handling inquiries and grievances from external stakeholders—including local residents and suppliers—and we respond to their feedback in a timely and appropriate manner in person at our sites, and via telephone, mail, and our website.

In FY2023, no human rights complaints were received in Japan, Indonesia, or Australia.

For information regarding inquiries, please see the Local Communities section.

Supply Chain

Thorough procurement practices involve human rights risks related to the freedom of association, collective bargaining, forced labor, child labor, workplace discrimination, working conditions (occupational health and safety, wages, working hours, access to water, etc.), impact on local communities, worker rights, and more.

Measures to address them include the release of a statement based on the UK Modern Slavery Act and Australian Modern Slavery Act, formulation of the Supplier Code of Conduct and Supplier Code of Conduct Guidelines, and conducting of ESG workshops for our business partners.

As part of our own supplier selection process, in FY2023 we introduced a self-assessment of modern slavery risks, formulated Supplier Code of Conduct Guidelines, and explained our initiatives at our supplier forum.

For more information, please see the Supply Chain Management section.

Local Communities

The rights of indigenous peoples and local residents encompass issues such as access to water and land, livelihoods, employment, vulnerable groups, and impact on the protection of cultural heritage. To avoid negatively affecting local communities, we conduct assessments of our environmental and social impact on local communities and have established a complaint contact point.

Assessments of Impact on Human Rights of Local Communities

For the Abadi LNG Project in Indonesia, we have examined and assessed the human rights requirements of the IFC Performance Standards using the following process as part of the environmental and social impact assessments we are currently conducting.

We confirm and manage social risks, including human rights, in accordance with internal regulations. These risks relate to the requirements of the Voluntary Principles on Security and Human Rights (VPSHR).

Through our dialogue with stakeholders, we formulated the Social Investment Strategy 2021–2023. We have planned and are now implementing a wide array of activities in the following focus areas: 1) Improvement of local economies; 2) Education; 3) Public health; 4) the Environment; and 5) Strategic community contribution. Of these, our primary initiatives related to public health and access to clean water are indicated below.

For information on other specific initiatives on FY2023, please see the Local Communities section.

Identification of Salient Human Rights Risks

The salient human rights risks identified in the current human rights due diligence are as follows.

• Child labor
• Forced labor
• Impact on cultural heritage and traditional culture
• Infringement on the rights of local communities
• Discrimination in recruitment and employment
• Environmental damage impacting local communities

We also investigated human trafficking, equal pay, and other human rights risk areas through a risk identification and assessment process. Considering geographical and other characteristics of our business operations, and the risk assessments already conducted, these areas were not deemed to be salient human rights risks for the Company.

In FY2024, we reviewed our human rights risk desktop investigation, including our renewable energy business within the investigation scope. We identified the following issues.

In the future, based on the results of surveys, we will assess the risks involved with identified human rights issues. For human rights risks that are determined to be salient risks, we plan to prioritize the implementation of corrective actions.