Key Efforts to Make INPEX the Employer of Choice

Professional Development

In line with its Basic Policy on human resources (HR), INPEX implements initiatives aimed at developing employees who embody the Company’s desired qualities, support positive organizational culture, and contribute to the mid- to long-term growth of its workforce.

In addition to providing training in the knowledge and skills required for each job grade and managerial position, we also offer business training for personnel to acquire specialized knowledge and business skills for the energy industry. Specific leadership training has been developed to strengthen management skills of global-level leaders. This includes programs focused on cultivating internationalism, strengthening leadership and management capabilities, as well as diversity, equity, and inclusion (DE&I) training to enable participants to work and produce results with a diverse workforce. We also conduct age-specific career workshops and implement a fast-track selective program for chosen employees, to support early career development. Through these training programs, we provide employees with the necessary business knowledge and skills and cultivate an awareness of their own growth. In this way, we aim to support the performance and growth of participants and contribute to long-term success and development of the organization as a whole.

In FY2024, a total of 212 employees participated in our leadership development and related programs, including next-generation leader selection and development.

Approach to HR Development (extract from the employees’ guidebook)

Human Resource Development for Younger Employees

The first three years of graduate employment in the Company is a designated development period for young employees. During this period, we implement various measures that enable them to acquire the basic skills needed to operate and grow in the workplace, while taking ownership of their careers.
In FY2024, we provided new employees with a joint two-week group training program for all job categories. In addition to each department explaining what they do, we facilitated group activities to enhance teamwork and underscore the importance of collaboration. Through this training, we aimed to equip new employees with the essential mindset and skills required in the workforce.

After the group training, we conduct regular pulse surveys and counseling sessions with external experts alongside additional job category-specific development programs. During the first three years of employment, we provide continuous workplace adaptation assistance and personal growth support, along with follow-up training for all job categories. Follow-up training entails employees gathering again in their year groups by using network of their connection, from their respective assigned departments, to share with each other their experiences so far, reflect on their situation from various perspectives, and strengthen solidarity within their groups.

We also implement support and guidance systems led by veteran employees (a mentoring system for technical employees and trainer system for office workers and others), and human resource development measures tailored to job category-specific career plans.

Alongside these systems, we actively assign our young employees to offices and operational sites in Japan and overseas to provide practical training. Our focus includes achieving further growth and networking through contact with different operations and environments, and developing human resources capable of playing active roles across global operations.

In FY2024, approximately 80 young employees deepened their expertise through work experience at Niigata and other operational sites in Japan as well as in offices and sites in Australia, Norway, and Abu Dhabi.

In addition to the above, we provide mid- to long-term development opportunities to foster skilled and autonomous engineers capable of working collaboratively with engineers from other fields. By implementing development pathways starting from their third year, our objective is for them to develop their own areas of specialization by their sixth year.

Supporting Career Autonomy for All Employees

To encourage employees to take ownership of their careers, we provide a range of training opportunities tailored to each employee’s individual desire to learn. This includes personal development programs and business knowledge training (free choice of e-learning courses). Our personal development programs for employees, including fixed-term and contractual employees, provide financial assistance from the Company for correspondence courses, school-based courses, and acquiring and renewing qualifications, to help our employees gain qualifications and improve their language skills. In FY2024, 329 employees participated in these programs.

We also conduct career workshops for employees aged 30, 40, and 50 years, providing them with opportunities for self-reflection and career assessment. These workshops encourage autonomous career development aligned with their aptitudes, values, and experiences.

In FY2023, we established an internal Career Support Desk which offers employees career guidance from career consultants. In FY2024, we enhanced Group-wide career awareness by distributing the INPEX My Career Handbook to all employees and conducting career-related lectures. We continuously monitor career awareness through engagement surveys and implement initiatives to encourage and enhance career development.

Selective Development of Next-generation Leaders

In FY2021, we launched our Breakthrough Leadership Program (BLP)¹, a selective leadership development program for non-managerial employees to select and develop, at an early stage, transformational leaders with Group-wide, cross-organizational perspectives who can create new value at evolving business sites. In FY2022, we launched the Advanced Leaders Program (ALP)² to empower and strengthen the leadership abilities of our existing executives. Both ALP and BLP are selective programs open to employees who are determined to play key roles at INPEX and aspire to improve the company by leading its organizations. Participants self-nominate, and we select those most likely to be self-driven next-generation leaders. Since the launch of BLP, five participants have been appointed as new managers.

In Australia, we launched a leadership development program in FY2022 with team leaders and managers participating in a training program aimed at further improving the qualities and behavioral attributes expected of leaders.

¹A program lasting up to five years and tailored based on the experiences of each selected employee to accelerate their development, and fast-track their employment as managers, by strategically and deliberately subjecting them to an intensive series of challenging assignments (including more sophisticated tasks, leadership positions, and jobs at different departments) over a short time frame.

²A program to develop next-generation managers with strong foundations and rich ideas, through participation in management and business programs in Japan and overseas, learning of the latest information and trends to acquire skills for identifying issues, and engagement with employees from other companies.

Leadership Development

We incorporate better understanding about the roles and leadership required for the respective levels and capability development into our leadership development program for non-managerial employees to improve their motivation for personal growth and execution of their duties. After appointing executives, we provide group training programs with 100% attendance required by applicable executives. Programs include new executive training in scenario and business planning, new manager training in HR evaluation and feedback, and new general manager training in vision-making. In FY2023, we also began a 360-degree feedback program for all members of management up to and including the President & CEO. The objective is to enhance management capabilities by encouraging self-reflection and behavioral changes through peer feedback on performance.

Reskilling in Digital Technologies

We aim to strengthen corporate competitiveness by increasing the number of personnel with data science and programming skills. We established the Digital Academy mainly to develop human resources for planning and execution of digital transformation (DX) projects, as well as advanced data utilization, management, and analysis. The academy provides a range of digital technology-related education. Application of the knowledge acquired through these courses will improve data analysis and management capabilities. In the first phase, starting in June 2023, we offered a digital transformation literacy course to all employees, drawing approximately 350 participants from diverse professional backgrounds. A post-course survey received 141 responses, with 37 participants reporting a quantitative improvement in work efficiency, saving an average of five hours. We anticipate long-term organizational benefits by continuing reskilling efforts in digital technologies.

HR Evaluation and Allocation

At the core of our approach to HR management is a commitment to fairness in its personnel system. This approach is based on three concepts: a fair job-based grading system, a pay-for-job/performance compensation system, and a transparent evaluation system.

We conduct HR evaluations annually along two axes: work target evaluations (target management) and work behavior evaluations (competencies).

Accordingly, we disclose the evaluation process and criteria to those being evaluated to ensure transparency and fairness, and connect achievement of performance targets for the organization with the growth of individuals. We do this by (1) setting targets linked to high-level targets and work responsibilities, (2) providing real-time feedback and progress confirmation, and (3) ensuring well-balanced evaluations and treatment.

To support the continued development of our personnel, we are working to prevent rigidity in personnel assignment, the dependency on individuals by introducing a term limit system for line management positions, and reduction in opportunity for promotion.

We regularly review the positions, succession plans, and talent of executives in each division. Employees are encouraged to declare their job and division preferences, to help management better understand their career outlook. Conducted annually in the past, we changed the system to allow employees to declare their preferences at any time. We also provide regular one-on-one meetings between employees and their supervisors to encourage dialogue that leads to mid- to long-term career development. In addition, we provide opportunities for employees to pursue their own career paths through an internal job posting system. This leads to more appropriate personnel allocation and assignment while motivating employees. Concurrently, we run a job return system to welcome back motivated employees who had resigned from the Company due to unavoidable personal reasons.

Promotion of Diversity

DE&I (Diversity, Equity and Inclusion) Policy

The Group views the promotion of Diversity, Equity, and Inclusion (DE&I) as crucial to becoming an employer of choice. By fostering a diverse workforce and implementing DE&I initiatives, we aim to sustainably grow our business in a rapidly changing environment. Our goal is to gain societal recognition for our contributions to creating a more prosperous society through energy development. We pledge to:

• Respect international norms on human rights and not discriminate based on race, skin color, gender, sexual orientation, gender identity, age, creed, religion, birth, nationality, disability or educational background.
• Mutually respect and honor the individuality and diversity of every employee and strive to ensure employees have fair and equitable opportunities for self-fulfillment and career development.
• Not tolerate harassment or behavior that could be misconstrued as harassment.
• Provide opportunities for diverse human resources to make the most of their abilities, including the promotion of women’s empowerment, thereby promoting vitality and innovation.
• Build a workforce that generates business value based on the acceptance of diversity, willingness to grow and autonomous action.
• Create a work environment in which employees can work with peace of mind by widely disseminating the above initiatives.

Promotion of Women’s Empowerment

In line with our DE&I Policy, we are intent on creating an environment that enables women to showcase their full potential. We recognize there is uneven representation of females across job categories and their underrepresentation in managerial roles.

To address this issue, in FY2024, we established a task force of volunteer female employees to promote women’s empowerment. The task force aims to make us the most rewarding company in Japan for women, and create an environment where all employees including men, feel the most satisfaction and happiness in their work.

We are committed to improving the ratio of women in managerial positions by proactively securing human resources capable of becoming female managers through the continuous measures such as holding special events for female students in the recruitment of new graduates, and by ensuring that the proportion of women among newly hired employees including mid-career hires reaches at least 30% together with providing learning opportunities for their growth. Furthermore, we will continue support to improve the ratio of taking male paternity leave to achieve the target as well as work-life balance support with childcare and nursing care.

LGBTQ+

Within the Group, the term “diversity” refers to all differences related to people or businesses, including sexual orientation and gender identity.

To promote understanding towards LGBTQ+ within our workforce, we have conducted a regular internal training program for employees and officers since FY2017. In FY2024, we conducted seminars for recruitment interviewers and training for employees handling human resource information. We launched the INPEX LGBT ALLY³ program by employee volunteers in FY2019. In FY2024, allies organized diversity discussions where participants exchanged opinions about minorities within INPEX, including themes related to LGBTQ+.

Efforts have also been under way to upgrade internal systems. In FY2020, employees were given the right to refuse requests to undertake business travel on the grounds that they are LGBTQ+, and in FY2021, “family” was redefined to include same-sex partners and their children under the Company’s benefit program. Employees are also encouraged to start using names (including pronouns and titles) that reflect their gender identity.

In addition to an internal LGBTQ+ consultation desk, we set up a second consultation desk managed by outside experts in FY2022. Our continuing positive action in these areas have earned us recognition in Japan. Every year since FY2019, we have received Gold or Silver awards in the PRIDE Index, Japan’s first index evaluating initiatives in the workplace related to LGBTQ+ and sexual minorities.

³ALLY: A supporter and person who understands related issues

Employment of Foreign Nationals

We actively employ foreign nationals as we believe diversity brings vitality to the workplace. To achieve inclusion – which means to build workplace environments and interpersonal relationships that contribute to business through mutual respect and recognition – we provide relocation support services for foreign nationals, in particular those who normally use English in their daily work, to minimize the challenges they may experience living and working in Japan. In addition, we prepare intranet postings and documents in both Japanese and English, and offer weekly Japanese-language lessons with an external teacher, with the aim of creating work environments where employees can be active and comfortable.

Efforts to Engage Older Workers

To support the autonomous career development of our senior employees, we conduct career workshops for them to learn to design their own pathway for future success and growth through self-reflection and taking stock of their career experiences.

Since FY2022, we have been conducting career consultants by in-house career consultants for employees aged 55 years to think about their career vision and actions toward the milestone age of 60.

In April 2023, we revised our personnel system for older workers (under reemployment contracts) and changed the remuneration structure for people over 60 years of age to one based on their work roles.

In FY2019, we set up INPEX Solutions, LTD. as a fully owned subsidiary functioning as a think tank for the Group. This subsidiary conducts surveys and research, as well as providing support in consulting and HR development. Many retired Group employees transfer to this company where they can make use of their expertise. This includes sharing their knowledge accumulated throughout their career or by exploring new business opportunities for the Group.

Promotion of Employment of People with Disabilities

We continue to be proactive in recruiting people with disabilities, taking into consideration the nature of the work and the workplace environment. As of the end of FY2024 (December 31, 2024), we have employed 48 people with disabilities in Japan, representing 3% of our domestic workforce. Since FY2020, it has become common to work from home, a more amenable and conducive workplace environment for people with physical disabilities. This has enabled us to maintain an employment rate of people with disabilities that exceeds the legally required rate in Japan. After experiencing the COVID-19 pandemic, we are promoting measures to remove barriers for employees with disabilities, including chat-enabled virtual meetings and closed captioning for videoconferences. We also conduct regular interviews and post-recruitment onboarding (follow-up towards getting used to the workplace), seeking to create environments where they can work with peace of mind.

Promotion of Work-life Balance

In accordance with its policy on DE&I, we are promoting work-life balance, aiming to create an environment where all employees can work according to their individual circumstances while maximizing their abilities in a way that suits their lifestyle.

To support this objective, in April 2019, we established a Group-wide flextime work system, previously limited to employees with childcare and nursing-care responsibilities. In April 2020, we also introduced work-from-home arrangements for office-based employees, enabling flexible work style.

In April 2021, core time was eliminated from the flextime work system, and the system was extended to include employees at all Japan-based operational sites. In addition to allowing paid leave in half-day units, we continue to encourage employees to take consecutive days off during summer and set recommended dates for taking paid leave.

These measures aim to give employees time for physical and mental refreshment. To reduce overtime work, Wednesday is designated as a work-life balance day in Japan, where employees are encouraged to go home early. If an employee’s overtime continuously exceeds a certain threshold, the employee’s supervisor and the Human Resources Unit will communicate with the employee to understand the situation, jointly identify problems, and devise strategies to address these problems.

As a further measure to promote diversity and individuality, we introduced a year-round casual business dress code to make the work environment even more motivating for employees.

Support for Childcare and Nursing Care

We support work-life balance for employees who are either parenting or providing care to family members and have created a comprehensive framework to support lifestyle requirements. We offer statutory childcare leave to employees (maximum of 24 months), up to the day before the child’s first birthday, or up to the child’s second birthday if childcare facilities cannot be used and the Company agrees. We also exceed the legal requirement in paying employees their full salary for the first five days of starting childcare leave as well as 20% of their salary – within the stipulated standard – during childcare or nursing-care leave as a benefit for non-occupational injury or maternity/childcare leave⁴. We also provide payment of salary during sick/injured childcare leave or nursing-care leave for up to five days per eligible family member⁵, which is again above the legal requirement.

Furthermore, the scheme offers a high degree of flexibility, allowing employees with childcare or nursing-care responsibilities to work at different times of the day, as well as for shorter periods through the shortened work hours program with flextime.

In addition to these system-related initiatives, for staff with children and their co-workers, we also implement measures for fostering positive attitudes to reduce worries about balancing childcare and work and ensure diligent follow-up care by supervisors, among other purposes. Such efforts include a training program for supervisors overseeing staff with children, discussions hosted by male employees who have taken paternity leave, and sharing the messages from top management for employees who have just returned from childcare leave. We also encourage male employees to participate in parenting and share information on our intranet, such as materials that advocate for the benefits of childcare leave for male employees and how the system works. As a result of these efforts, there is a growing trend in the percentage of males taking childcare leave. In September 2024, we extended the eligibility for shortened working hours until an employee’s child graduates from elementary school. We also extended the eligibility for restriction of overtime work and late-night work and exemption from stipulated overtime work until the child graduates from junior high school. We strive to create environments that allow a balance between childcare and work and encourage further understanding about childcare leave.

To help alleviate any anxiety employees returning to work after childcare leave may have, we offer a personal development program to those interested in improving their skills while on leave and encourage participation in discussions prior to returning to the workplace. Those who return to work prior to their child’s first birthday are entitled to two 30-minute nursing breaks per day (paid) until the child turns one year old.

To further assist employees with childcare responsibilities, we provide childcare support arrangements for children up to the age of three. In addition, we have an agreement with a Company-led nursery school to give enrollment priority to the children of our employees. We have also signed up with a childcare service provider.

Acknowledging these efforts, the Tokyo Labor Bureau has consistently praised INPEX since FY2012 as a company that supports its employees to balance work with childcare responsibilities. As a testament to our commitment, we have been awarded with the “Kurumin” next-generation certification five times.

We also support a balance of work and nursing-care responsibilities by offering flexible arrangements related to nursing-care leave for those with elderly parents, even if they are not officially certified care recipients as per the usual legal requirement.

⁴During childcare leave, the public employment security office pays 67% or 50% of regular monthly salary as childcare allowance. Separate from this childcare allowance, we go beyond the legal requirement and pay 20% of an employee’s salary – within the stipulated standard – during childcare or nursing-care leave as a benefit for non-occupational injury or maternity/childcare leave.

⁵A maximum of 10 days if there are two or more eligible family members

Health and Productivity Management

INPEX Group Health Statement

We believe the mental and physical health of all employees is the foundation of the Company, and therefore regard health management as a material management issue. The INPEX Group Health Statement issued in September 2018 sets out our position to support and improve the health of employees and their families, with the President & CEO appointed as Chief Health Officer.

The statement declares that: the Company will maintain and improve the physical and mental health of employees as well as their families; the Company aims to build a vibrant corporate culture by creating a work environment to maximize the potential of all employees; and employees should recognize their own responsibility in improving their lifestyles and proactively strive to maintain physical and mental health.

Approach to Health and Productivity Management

Under the leadership of the President & CEO as Chief Health Officer, we are working with our labor union, health insurance union, and medical officers to maintain and improve the health of our employees and their families and to create a healthy workplace. For this purpose, we have set up the Health Management Committee (Committee inauguration date: September 26, 2018).

The Committee meets regularly, at least once a year, and seeks collaboration with the people-in-charge of business sites, safety and health committees, and partner medical institutions. Based on the INPEX Health Management Strategy Map developed in FY2022 from a mid- to long-term perspective, the Committee discusses key annual measures while working to understand health issues and validate the effects of each measure. By implementing ongoing improvements through this PDCA cycle, we can advance health and productivity management strategically as one united Group. We are recognized as an outstanding organization in health and productivity management, including being recognized four times under the Health & Productivity Stock Selection program and five times as a “White 500” enterprise in the large enterprise category of the Certified Health & Productivity Management Outstanding Organizations Recognition Program so far.

Health Management Committee

Agenda items:

• Issues relating to employee health and required countermeasures
• Groundwork for health and productivity management, steps to improve the workplace environment
• Specific measures to address employee mental and physical health
• Review of effectiveness of measures to maintain and improve health
• Other important matters relating to maintaining and improving health

Measures to Maintain and Improve Health

Based on the INPEX Group Health Statement, we will maintain and improve the physical and mental health of employees and their families, create a work environment to maximize the potential of all employees, and strive toward creating workplaces that can better maintain and improve health and meet needs for well-being, while considering circumstances such as the culture and customs of each country or Group company.

We implement measures so that employees understand health check results and apply them to their daily lives, such as preventing lifestyle diseases. Such measures include workplace health checks, complete medical examinations through reservation services, health check result confirmation and interviews with a public health nurse or medical officer, and specified health guidance. We also work to improve the health levels of all employees while establishing measures and environments that encourage employees’ healthy behaviors and conducting a variety of measures to maintain and improve health. These efforts include organizing walking campaigns, offering financial assistance for various club activities, providing health apps, and conducting online health seminars.

We have also established specific targets for: employee participation in health checks and stress checks; average overtime hours; paid leave acquisition rate; and participation in government-sponsored specified health checks and specified health guidance programs. We are also working to reduce presenteeism and absenteeism and become a company where every employee has a high level of health awareness, is healthy in mind and body, and is highly motivated in their work.

Mental Health Initiatives

The Group sees the strengthening of measures for mental health as a global common issue, undertaking measures such as e-learning, collaboration with doctors, and follow-up for those returning to work from leave.

When conducting the annual stress check required by law, we also conduct an engagement survey to analyze the state of our organizations. We feed back the results to each organization and advocate improvement to create more conducive workplaces. We maintain a high level of participation in stress checks, exceeding 90% each year, and use this to regularly check our employees’ mental health and engagement. At the same time, in the quarterly pulse surveys, supervisors can view the responses, we visualize the state of organizations and individually in a timely manner, and we take efforts to improve organizational issues and follow up with individuals.

For those with mental health issues, the primary physician, medical officers, health nurse, HR department, and the employee’s supervisor work together to provide follow-up care while the employee is on leave and after their return to work. We also provide access to mental health counselors to employees stationed overseas and their accompanying family members.

We also provide education on psychological safety to new employees during their orientation training, offer an external employee assistance program (EAP) that allows employees to seek consultation when feeling mentally or physically unwell, and implement a system under which trainees receive operational guidance and emotional support from older workers – referred to as “mentors” (for first-year office workers and first and second-year technical employees) and as “supporters” (for second and third-year office workers). These efforts are now well established.

Other Initiatives to Tackle Health Issues

In addition to legally required health checks before and after overseas assignments for applicable employees and their families, we also made annual health check during the assignment mandatory to regular check their state of health. Furthermore, we have a system for emergency transportation arrangements, which includes international transportation in case of injury or sickness.

As a measure to prevent infectious diseases, we also offer influenza vaccinations at our workplaces or financial assistance for these vaccinations. In FY2024, we started antigen testing as a measure to prevent measles and rubella. For employees on overseas assignments and their families, our efforts include providing them with vaccinations against various infectious diseases, familiarization on the risk of infectious diseases (such as malaria, Zika virus, HIV, and tuberculosis) and other overseas medical risks, and information on medical treatment at their country of assignments to alleviate their concerns about infectious diseases and maintain their health on assignment.

Furthermore, we strive to create work environments to enable employees with cancer, or other serious illness or issues, to balance treatment and work commitments. This is achieved through our newly established sick leave system and flexibility in workstyles (extension of shorter working hours, shortened working hours for flextime work, and selecting the number of working days per week). We also provide all employees with financial assistance for cancer screenings, and in FY2024, we launched a cancer screening campaign as a new measure for health issues unique to female employees.

Results of Health and Productivity Management

FY2024 Results

Health Management Committee Meetings

• Held two meetings (June 10 and December 12, 2024)

Major Initiatives for Health and Productivity Management

• Partially revised the INPEX Health Management Strategy Map
• Made changes to the total health support plan that combines online health seminars and smoothie deliveries to improve dietary habits by addressing issues like skipping breakfast and vegetable intake shortage (increased number of health seminars)
• Conducted a walking campaign in collaboration with the health insurance union
• Organized self-check promotion month to strengthen measures for mental health
• Conducted cancer screening campaign targeting female employees
• Implemented measures for the third year of a plan against smoking
• Conducted antigen testing for measles and rubella

List of Other Measures for Maintaining and Improving Health

General Health Measures

• Establishment of infirmary/health management room (medical officer/public health nurse/nurse)
• Establishment of health consultation desk
• Support for requirements against lifestyle-related diseases
• Financial assistance for health checks
• Treatment of time required for follow-up health checks as working time
• Treatment of time required for vaccination as working time
• Cancer seminars by partner medical institutions
• Online exercise
• Morning warm-up sessions (before work)
• Financial assistance for welfare activities
• Promotion of sports facility use through introduction of a Cafeteria Plan

Other Initiatives

Senior Vice President’s Awards and General Manager’s Awards

These awards aim to energize the organization by recognizing the day-to-day achievements of employees.

Cafeteria Plan (free-choice employee benefit program)

The Cafeteria Plan grants points to employees each year. Employees can use their points to choose benefits that most suit them. Benefit options include childcare and nursing care support, disease prevention, access to fitness gym or sporting facilities, leisure activities, and entertainment options.

Internal company event support (team building and recreation activities)

Financial support is provided to cultivate a sense of unity and strengthen relationships within the organization, aiming to promote interaction and communication between employees.

Employee shareholders’ association (62% participation)

Employees are supported in their efforts toward mid- to long-term wealth accumulation, including through payment of financial incentives to employees participating in the employee shareholders’ association.

Free-choice defined contribution plans (80% participation)

Employees are supported in their efforts to build wealth for the future. Based on the choice and life plan of the individual, a set allowance is paid as part of their salary or contributed to their pension plan.

Support for employees undergoing medical treatments

Employees are assisted in managing their work commitments alongside medical treatments, serious illness such as cancer or otherwise as specified by the government, through flexible work arrangements tailored to their treatment solutions.