Metrics and Targets
Targets
Following its Corporate Position on Climate Change, INPEX has set its own targets along two axes – decarbonization of its business and contribution to lower-carbon society – to contribute to realizing a low-carbon society as outlined in the Paris Agreement. For the decarbonization of our business, we aim to achieve net zero by 2050, and as part of the process, reduce net carbon intensity by at least 60% versus 2019 levels by 2035. To achieve this target, in our Mid-term Business Plan for 2025 to 2027, we seek to achieve a net carbon intensity reduction of 35% versus 2019 levels by 2027 as a milestone.
This target has been revised upwards following the early achievement of the previous target of 30% reduction versus 2019 levels by 2030 stated which was set in the previous Mid-term Business Plan. Next, as a contribution to lower-carbon society, regarding the reduction of Scope 3 emissions, we will work together with all relevant stakeholders to address challenges across the value chain. At the same time, through providing CCS and other lower-carbon solutions and supplying clean power, we aim to generate 8.2 million tons of avoided emissions each year for society by 2035. We will also continue to maintain methane emission intensity (methane emissions / natural gas production) at the current low levels (about 0.1%) and aim to achieve zero routine flaring.
Targets for Addressing Climate Change
2 In comparison with 2019 level. Note that the reduction ambition and targets reflect the current economic environment and reasonable expectations. These are premised on a business environment of consistent progress in decarbonization technology, economic rationality and realization of policies in each country and region.
3 In INPEX-operated projects
Roadmap to Achieve Targets
We have developed the roadmap, as detailed below, to achieve our targets for the decarbonization of our business. As the roadmap and achievement of targets are affected by the external environment, including technological progress and the feasibility of measures in each country and region, we identify such risks through scenario analysis and other means, and at the same time, use the marginal abatement cost (MAC) curve1 for analyzing the cost-effectiveness of reduction measures and regularly revise our strategy.
1 It represents individual abatement measures by illustrating the reduction potential (the expected reduction amount from implementing the measure) and the abatement cost (the cost required to reduce one ton of CO2). The measures are arranged in order of increasing abatement cost, showing the reduction potential of each measure.
Roadmap to Achieve Decarbonization of INPEX Business by 2050
In addition to reducing our emissions, we also work on the decarbonization of society. We state avoided emissions as targets toward the decarbonization of society, and we will work toward them after strictly assessing the profitability of individual projects, taking into consideration the use of government support in each country.
Roadmap to Contribute to a Low Carbon Society
Results
In FY2024, our GHG emissions (Scope 1 and Scope 2) amounted to approximately 6,878 thousand tons-CO2e, which was decrease of approximately 42 thousand tons-CO2e compared to FY2023 levels. This was due to the use of clean power in operations and a review of our business portfolio.
Item |
Jan–Dec, |
Jan–Dec, |
Jan–Dec, |
|---|---|---|---|
Direct GHG emissions (Scope 1)1 (thousand tons-CO2e) |
6,839 |
6,864 |
6,833 |
Direct GHG emissions (Scope 2)1 (thousand tons-CO2e) |
69 |
56 |
45 |
Net carbon intensity2 (kg-CO2e/boe) |
28 |
28 |
28 |
Methane emission intensity3 (%) |
0.05 |
0.05 |
0.05 |
INPEX's Net Carbon Intensity
2 Net carbon intensity including offsets
3 Methane emission intensity on operational control basis: Calculated as methane emissions/gas production (%), the formula used by the Oil and Gas Climate Initiative
4 Offsets include the amount absorbed through forest conservation and the amount contributed to reduction through renewable energy projects where the environmental value of said projects are considered to be attributable to us. Contributions from renewable energy are calculated based on the Guidelines for Measurement, Reporting and Verification of GHG Emission Reductions in JBIC’s GREEN (the J-MRV Guidelines).
The GHG emissions within our operational control2 are detailed below.
2This scope includes our head office and Technical Research Center (both in Tokyo), overseas offices, and operational organizations in Japan and overseas.
Item |
Jan–Dec, |
Jan–Dec, |
Jan–Dec, |
|---|---|---|---|
Direct GHG emissions (Scope 1) (thousand tons-CO2e) |
6,339 |
6,622 |
6,614 |
Direct GHG emissions (Scope 2) (thousand tons-CO2e) |
48 |
35 |
36 |
Collection, Analysis, and Reporting of GHG Emissions
We regularly collect, analyze, and report our GHG emissions in accordance with procedures based on host country systems and international guidelines,such as the GHG Protocol. We also obtain third-party assurance – using International Standard on Assurance Engagements (ISAE) 3410 as the verification standard – of our environmental data from SOCOTEC Certification Japan to ensure the reliability of our GHG emission reporting.
As part of efforts to reduce emissions in our upstream business in Japan, we participate in the Keidanren Carbon Neutrality Action Plan, which is a voluntary emission reduction initiative, through our membership in the Japan Energy Resources Development Association. In FY2021, we reexamined our targets for reducing emissions by FY2030. We are also a member of GX League and subject to the voluntary emission trading (GX-ETS Phase 1) in Japan. After carrying out calculations and monitoring according to the guidelines stipulated by the GX League’s secretariat, since FY2024, we have been reporting our progress toward the voluntary targets of GX-ETS set based on the government’s targets.