Risk Management

As a general rule, INPEX assesses and manages climate-related risks and opportunities on an annual basis.

Regarding revisions and assessments of our climate-related policies, after deliberation and approval by the Sustainability Committee, reports will be submitted to the Executive Committee and Board of Directors according to the details (Figure A). Our overall response to climate change is managed by the Climate Change Strategy Group that resides in the Corporate Strategy & Planning Unit of the Corporate Strategy & Planning Division. The Climate Change Strategy Working Group – an advisory body of the Sustainability Committee – conducts climate-related risk assessments and develops proposals for prevention and mitigation measures.

Figure A: Framework for Approval and Reporting Related to Risks and Opportunities

Our climate-related risk assessment process follows the procedure outlined in ISO 31000:2018 (Figure B), an international risk management standard. We update external and internal factors and share information regarding the Company’s status among Working Group members. We then identify risks and analyze their causes, prevention measures, mitigation measures, and residual risks (Figure C). We assess the residual risks using the Risk Assessment Matrix (Figure D) we developed.

Figure B: ISO 31000 Process

Figure C: Risk Analysis Process

Figure D: Risk Assessment Matrix