Sustainability Structure

INPEX’s basic approach to sustainability management is to promote both a stable supply of energy and energy transition initiatives, while addressing climate change and other sustainability issues through its business and value chains. Following this approach, we engage in sustainability management focusing on the sustainability-related materiality of greatest importance to us and our stakeholders.

Governance

Organizational Structure

Our governance structure for promoting sustainability is detailed below.

Board oversight

With skills in sustainability, our Board of Directors acts in the role of supervisory authority for sustainability-related risks and opportunities. Please refer to the Board member's Skill Matrix in Corporate Governance for details. To improve the level of knowledge among members of the Board, we provide lectures and meetings to exchange ideas with external experts to deepen their knowledge of global trends and issues in sustainability.

Management accountabilities

Executive Committee

From the viewpoint of expediting decision-making with respect to business execution decisions, including those related to sustainability, we have established the Executive Committee to facilitate agile decision-making for matters that are not required to be resolved by the Board of Directors and to hold discussions that can contribute to decision-making by the Board. Executive Committee meetings are held once a week and as necessary. The Committee is composed of full-time Directors, Executive Officers who are Senior Vice Presidents of various divisions, and other Executive Officers who are deemed necessary by the Committee Chair and appointed by resolution of the Committee. The Committee is chaired by the Representative Director, President & CEO.

Representative Director, President & CEO, divisions, and subsidiaries.

The Representative Director, President & CEO represents the Company and is responsible for business execution, including sustainability. Executive Officers, as either Senior Vice Presidents or officers in charge, execute business for the specific divisions and subsidiaries to which they are appointed. Each business executive appointed to specific divisions and subsidiaries manages the progress of measures and initiatives for sustainability and reports the results to the Executive Committee.

Sustainability Committee

We established the Sustainability Committee to fulfill the INPEX Group’s social responsibilities and promote initiatives that contribute to the sustainable development of society. Chaired by the Representative Director, President & CEO, the Committee comprises the Representative Director; Senior Vice President, General Administration Division; Senior Vice President, Corporate Strategy & Planning Division; Chair of the Compliance Committee; and Chair of the Corporate HSE Committee. The Committee deliberates on basic policies regarding sustainability and material issues related to sustainability implementation. Under the Committee, we have established a Sustainability Working Group and Climate Change Strategy Working Group, which comprise operational-level members from various divisions to support Group-wide, cross-sectional consultation.

Matters Resolved, Deliberated, and Reported at Meetings of the Board of Directors, Executive Committee, and Sustainability Committee in FY2024

The Sustainability Committee discusses the following and other matters continually and systematically to promote consistent Group-wide sustainability management. Matters discussed by the Committee are also resolved and reported by the Executive Committee and Board of Directors. In FY2024, the Sustainability Committee met two times and sustainability was discussed at 13 of the 15 meetings of the Board of Directors.

• Formulation of action plans for sustainability management
• Determination of our initiatives and future matters for consideration based on the Corporate Position on Climate Change
• Assessment of climate change-related risks and opportunities
• Review of our materiality
• Survey report on enhancing human rights management
• Plan of social contribution activities

Other Committees Related to Business Execution

In addition to the Sustainability Committee, we have established the Compliance Committee, Corporate HSE Committee, Information Security Committee, and INPEX Value Assurance System (IVAS) Committee to promote various measures. Overviews of each committee and the activities they conducted in FY2024 are detailed below.

1. Compliance Committee

The Compliance Committee was established to promote consistent compliance initiatives across the Group. Chaired by the Director in charge of compliance, the Committee comprises the Senior Vice Presidents and officers of the standing organizational units. The Committee formulates and monitors implementation of basic compliance-related policies and measures for the Group, formulates annual action plans, and resolves material matters, while also managing the implementation status of compliance activities. The Committee met three times in FY2024. Furthermore, to ensure coordination between the Committee and the workplace, compliance promotion personnel and managers are assigned to each workplace. The Compliance Unit, which serves as the secretariat of the Committee, regularly holds liaison meetings with compliance promotion personnel to enhance and solidify their understanding and awareness of compliance.

2. Corporate HSE Committee

In accordance with the HSE¹ Management System (HSEMS) regulations, the Corporate HSE Committee was established to promote occupational health and safety and environmental initiatives. The Corporate HSE Committee, chaired by the Director in charge of HSE, comprises the Senior Vice Presidents and officers of the standing organizational units and deliberates on policies and material matters related to HSE. Material matters deliberated by the Committee are resolved by the Executive Committee and then resolved or reported by the Board of Directors. The Committee met four times this fiscal year to resolve and report on HSE objectives, analysis of trends in major incidents and injury-causing incidents in the previous fiscal year, and HSE performance and other matters for the first half of this fiscal year. The Committee deliberates on mid-term plans, annual objectives, and annual programs for HSE to be addressed by the Group as a whole; understanding and assessment of the situation through HSE audits; and maintenance, review, and improvement of the HSEMS. The officer in charge of HSE also ensures the necessary corrective and review actions are reflected in HSE objectives, programs, and other initiatives for the following fiscal year.

In FY2024, the Environmental Management Working Group met two or three times at each operational organization to discuss responses to the TNFD² and treatment of waste. The Safety Working Group was also established in 2025 to discuss safety-related issues across the Group and improve safety performance. Meetings and workshops are planned to identify Group-wide issues.

¹Health, safety, and environment

²Task force on Nature-related Financial Disclosures

3. Information Security Committee

The Information Security Committee was established to consider and make decisions regarding measures necessary for maintaining, managing, and strengthening information security. The Committee, chaired by the Senior Vice President of Technical Headquarters, deliberates on basic policies and material matters related to information security, and manages our response to information security incidents and recurrence prevention measures. The Committee met twice in FY2024.

4. IVAS Committee

The INPEX Value Assurance System (IVAS) Committee was established to confirm the status of preparations at important milestones of major projects in which we participate, and to contribute to our decision-making process for promoting and improving the value of the projects. Chaired by the Senior Vice President of Technical Headquarters, the Committee engages in organization-wide activities such as acquiring new projects, performing technical assessments and other matters in every phase of existing projects, including exploration, assessment, and development.

Compensation

In FY2022, we revised our compensation system for all Directors, including the Representative Director but excluding Outside Directors. As part of this revision, we adopted net carbon intensity as a KPI for stock-based compensation and safety metrics (zero major incidents) as a KPI for bonuses.Details of the management metrics are as follows.

Strategy

We defined our Sustainability Principles, based on our Mission, and identified the sustainability-related materiality of greatest importance to us and our stakeholders. We identified our materiality while considering the financial effects the environment and society had on us, and our impacts on the environment and society. We reviewed this list again in FY2024 and selected Climate Change, Safety, Human Capital, Human Rights, Biodiversity, and Environmental Pollution as our materiality. Of these, we selected Climate Change, Safety, and Human Capital as financial materiality due to the significant financial effects the environment and society have had on us. We also established action plans for priority issues of each materiality, incorporated these plans into the PDCA cycle of each department, and we are working toward continuous improvement.

Materiality Identification Process

We identified our materiality by considering the financial effects the environment and society had on us, and our impacts on the environment and society. To achieve this, we assessed sustainability-related risks and opportunities that affected anticipated financial effects in terms of the likelihood and magnitude of the financial effects. We also assessed the impacts of our business on the environment and society in terms of the likelihood and severity of the impacts. We conducted a survey among all our officers and employees, and other companies in the same industry, to establish a list of potential materiality. Our financial materiality was then resolved by the Sustainability Committee and Executive Committee and reported to the Board of Directors.

Please refer to Feature 2: Materiality for details on our materiality assessment process.

INPEX’s Materiality and Action Plans

In line with INPEX Vision 2035, we have established our materiality and action plans as detailed below. We also incorporated the plans into our PDCA cycles to enable improvement.

Materiality

Company management, decision-making, and risk management are very material elements of governance. We also consider a strong governance structure to be a material element for supporting our materiality initiatives and realizing sustainable growth for the Company.

For this reason, we established three action plans – improvement of our corporate governance structure, improvement of our risk management structure, and compliance with laws and prevention of bribery and corruption – as specific initiatives for maintaining and enhancing our governance structure.

Risk Management, Metrics, and Targets

We strive to continuously improve our risk management structure, which is designed to appropriately identify and manage the risks associated with our business operations, including sustainability-related risks. We have established a structure to prevent, or otherwise mitigate, adverse impacts. This helps us to maintain and reinforce the trust of our customers, business partners, investors, and other stakeholders, and maximize our corporate value. Please refer to our Risk Management Structure in the section on Governance for details on our risk management process. Please also refer to the explanations of each materiality for details on individual risk management, metrics and targets.