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2023

Sustainability Report 2022

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Sustainability Report 2022

Sustainability Material Issues: Targets and Achievements

Governance

  • SDG 16 (icon)
Improvement  of our governance structure

FY2022 achievements

FY2023 targets

Medium- to long-term targets, initiatives, and directions
  • Enhanced our corporate governance structure through appropriate operation of the Board of Directors, and evaluated the effectiveness of the Board of Directors and continued the PDCA cycle
  • Responded to revisions of the Companies Act and the Corporate Governance Code, and to Tokyo Stock Exchange reforms
  • Enhance the corporate governance structure through appropriate operation of the Board of Directors, and evaluate the effectiveness of the Board of Directors and continue the PDCA cycle
  • Respond to revisions of the Companies Act and the Corporate Governance Code, and to Tokyo Stock Exchange reforms
  • Build relationships between the Board of Directors and local stakeholders, such as partners and local communities (including holding Board of Directors meetings in countries in which we operate)
  • Strengthen the corporate governance structure, including enhancement of the supervisory role of the Board of Directors
  • Continue to deepen discussions by the Nomination and Compensation Advisory Committee toward achieving further diversity of the Board of Directors, and provide feedback on those discussions to the Board
  • Enhance discussions on management strategies based on INPEX Vision @2022, its associated Medium-term Business Plan, and anticipated future business development, and monitor the progress made
  • Published a skill matrix for Directors
  • Introduced and implemented a new system of officer compensation aligned with key goals of the Medium-term Business Plan
  • Discussed the nomination and compensation of Directors with the appropriate involvement of the Nomination and Compensation Advisory Committee
  • Publish a skill matrix for Directors and Audit & Supervisory Board Members
  • Enhance training, etc. for newly appointed officers
  • Discuss the nomination and compensation of Directors with the appropriate involvement of the Nomination and Compensation Advisory Committee
  • Strengthened management of global tax risks, arising out of overseas sites’ operations and cross-border transactions, through appropriate operation of the tax governance structure
  • Assess state of tax compliance in each country through centralized management of tax information
Improvement of our risk management structure

FY2022 achievements

FY2023 targets

Medium- to long-term targets, initiatives, and directions
  • Held 10 INPEX Value Assurance System (IVAS) Committee meetings
  • Provided the Board of Directors with an executive summary of risk assessment results for major projects
  • Hold 25 IVAS Committee meetings
  • Provide the Board of Directors with an executive summary of risk assessment results for major projects
  • Continue to monitor mitigation/management plans for material risks and issues identified by each division under the Medium-term Business Plan and their implementation
  • Held two Information Security Committee meetings
  • Held two training sessions on targeted email attacks
  • Conducted an e-learning lesson on information security
  • Conducted a security assessment of operating systems
  • Hold two Information Security Committee meetings
  • Hold two training sessions on targeted email attacks
  • Conduct an e-learning lesson on information security
  • Conduct a security assessment of operating systems
  • Promoted head office-based business continuity management (BCM) activities for earthquake scenarios, and provided BCM education and training for employees
  • Implemented and operated a COVID-19 crisis response structure under the Corporate Crisis Management Team
  • Promote head office-based BCM activities for earthquake scenarios, and provide BCM education and training for employees
  • Revise the head office business continuity plan (BCP) for infectious disease scenarios based on examination and assessment of COVID-19 responses
Supply Chain Risk Management

FY2022 achievements

FY2023 targets

Medium- to long-term targets, initiatives, and directions
  • Published Supplier Code of Conduct
  • Continued self-assessment surveys (including questions on human rights and anti-bribery and anti-corruption (ABC) measures) by major domestic suppliers and contractors
  • Continued risk assessment of major suppliers and contractors (including with regard to human rights and ABC measures), and improved the methods used for risk assessment
  • Participated in the supply chain subcommittee of the Global Compact Network Japan
  • Continue self-assessment surveys (including questions on human rights and ABC measures) by major domestic suppliers and contractors
  • Continue risk assessment of major suppliers and contractors (including with regard to human rights and ABC measures), and improve the methods used for risk assessment
  • Participate in the supply chain subcommittee of the Global Compact Network Japan
  • Strengthen supply chain risk assessment and compliance

Compliance

  • SDG 8 (icon)
  • SDG 12 (icon)
  • SDG 16 (icon)
Respect for human rights

FY2022 achievements

FY2023 targets

Medium- to long-term targets, initiatives, and directions
  • Published respective FY2021 statements pursuant to the United Kingdom Modern Slavery Act 2015 and the Australian Modern Slavery Act
  • Continued to conduct human rights training
  • Continued risk assessment of major suppliers and contractors (including with regard to human rights), and improved the methods used for risk assessment, together with the procurement departments and departments responsible for sustainability
  • Publish respective FY2022 statements pursuant to the United Kingdom Modern Slavery Act 2015 and the Australian Modern Slavery Act
  • Continue to conduct human rights training
  • Improve the methods used for risk assessment of major suppliers and contractors (including with regard to human rights)
  • Fully comply with and appropriately respond to the laws and regulations, including ABC laws, of the areas in which we operate, judicial/administrative sanctions, international norms and ethics, and full respect for human rights
  • Continue human rights due diligence
Compliance with laws and prevention of bribery and corruption

FY2022 achievements

FY2023 targets

Medium- to long-term targets, initiatives, and directions
  • Ensured awareness of compliance and enhanced education and training programs (e-learning lessons, compliance awareness surveys and training based on the survey results, response to revisions of the Whistleblower Protection Act, etc.)
  • Bolstered global compliance structures (continued operation of the INPEX Global Hotline, etc.)
  • Ensured awareness and enhanced operation of ABC regulations (continued training, due diligence, risk assessments of ABC practices at domestic and overseas offices, etc.)
  • Ensure awareness of compliance and enhance education and training programs (e-learning lessons, officer training, compliance assessments, etc.)
  • Bolster global compliance structures (continued operation of the INPEX Global Hotline, etc.)
  • Ensure awareness and enhance operation of ABC regulations (continued training, due diligence, risk assessments of ABC practices at domestic and overseas offices, etc.)
  • Fully comply with and appropriately respond to the laws and regulations, including ABC laws, of the areas in which we operate, judicial/administrative sanctions, international norms and ethics, and full respect for human rights
  • Continue human rights due diligence

Climate Change

  • SDG 7 (icon)
  • SDG 9 (icon)
  • SDG 13 (icon)
  • SDG 15 (icon)
Promotion of climate change response goals and disclosures based on TCFD recommendations

FY2022 achievements

FY2023 targets

Medium- to long-term targets, initiatives, and directions
  • Continued to achieve a CDP Climate Change A- score
  • Reduced net carbon intensity in FY2022 to 28kg-CO2e/boe
  • Achieved methane emissions intensity (methane emissions / natural gas production) of 0.06%, which was below our target of about 0.1%
  • Continue to achieve a CDP Climate Change A- score
  • Reduce net carbon intensity by 10% (4.1kg-CO2e/boe) or more between FY2022 and FY2024
  • Check details of emissions reduction measures in individual projects for achieving the FY2030 target for net carbon intensity
  • Reduce net carbon intensity by 30% or more by FY2030
  • Achieve zero routine flaring by FY2030
  • Maintain methane emissions intensity (methane emissions / natural gas production) at its current low level (about 0.1%)
Promotion of five net zero businesses

 

FY2022 achievements

Targets to FY2023-24

Targets to FY2030

Hydrogen and ammonia
  • Made final investment decision (FID) for drilling wells and constructing aboveground facilities for the integrated verification trial of hydrogen and ammonia production and use in Kashiwazaki City, Niigata Prefecture, Japan.
  • Conducted joint research on commercial feasibility of clean ammonia production in Abu Dhabi
  • Currently working with a local power generator in Australia to conduct a study on hydrogen export and hydrogen-based methanation
  • We are currently procuring materials and equipment for ground preparation, CO2 injection, production, and observation well drilling for the hydrogen and ammonia production demonstration project in Kashiwazaki City, Niigata Prefecture, Japan. Our plan is to begin operations in 2025.
  • Continue to study the commercialization potential of a clean ammonia production project in Abu Dhabi
  • Consider and launch new projects in Japan and overseas
  • Commercialize three or more projects
  • Aim for hydrogen and ammonia production and supply of 100,000 tons/year or more

CCUS
  • Began well drilling for a CO2 EOR verification trial in the Minamiaga Field Office and completed work in January 2023
  • Awarded rights to operate G7-AP offshore GHG assessment block in Northern Territory, Australia
  • Participated in the CCS Long-Term Roadmap Study Group, organized by the Ministry of Economy, Trade and Industry, and in developing a framework for commercialization of CCS in Japan
  • Conduct injection testing in FY2023 for a CO2 EOR verification trial in the Minamiaga Field Office and consider moving to the next phase
  • Consider and launch new projects in Japan and overseas
  • Progress assessments and other preparations to introduce CCS at Ichthys LNG
  • Achieve annual CO2 injection volume of 2.5 million tons or more
  • Become a leading company in CCUS by promoting technical development and commercialization

Wind power generation
  • Joined Luchterduinen and Borssele III/IV offshore wind power projects in the Netherlands
  • Established the London office of INPEX Renewable Energy Europe Limited, a subsidiary in the United Kingdom in charge of wind farms in Europe, which was established in November 2021, and began work through this office
  • Began construction for floating offshore wind power project off Goto City, Nagasaki Prefecture, Japan
  • Progress development of offshore wind power business, and construction for floating offshore wind power project offshore Goto City, Nagasaki Prefecture, Japan
  • Ensure stable operations and expand business at European wind power projects
  • Generate business opportunities in Southeast Asia, Australia, and the United States
  • Secure 1–2 gigawatt-scale installed capacity, mainly in the offshore wind and geothermal power generation business
  • Accelerate business expansion using assets acquired through M&A and other means as a platform

Geothermal power generation
  • Acquired new concessions at Muara Laboh Geothermal Power Project in Indonesia
  • Opened Jakarta office of INPEX Geothermal, Ltd.
  • Made FID for Oyasu Geothermal Power Project, Akita Prefecture, Japan
  • Carry out additional development at Muara Laboh Geothermal Power Project in Indonesia
  • Progress construction for Oyasu Geothermal Power Project
  • Progress exploration of geothermal energy in other regions, including Indonesia and Japan

Carbon recycling and new business
  • Moved to EPC (engineering, procurement, and construction) work for methanation technical development project
  • Considered large-scale methanation facilities in Australia, etc.
  • Entered and won first prize, together with the University of Tokyo, in an international competition for artificial photosynthesis
  • Invested in CarbonOrO Holding, a company developing CO2 capture technologies
  • Conducted several test flights using drones to inspect our facilities
  • Construct a plant for planned 2025 launch of synthetic methane production as a methanation technical development project
  • Pursue further R&D in artificial photosynthesis
  • Use drones to inspect our facilities
  • Promote the adoption of methanation in society
  • Supply about 60,000 tons of synthetic methane annually via our pipeline network

Forest conservation
  • Continued support for Indonesia’s Rimba Raya Biodiversity Reserve REDD+ project
  • Created a forestation credit screening form (improved the process)
  • Participate in and pursue development opportunities for forest conservation projects
  • Acquire about 1.5 million tons of forestation credits per year from leading forest conservation projects
  • Secure about 2 million tons of forestation credits per year from forest conservation projects by FY2030 through project participation, development, etc.
Cleaner oil and gas business and transition to natural gas

 

FY2022 achievements

FY2023 targets

Medium- to long-term targets, initiatives, and directions

Australia
  • Adopted measures to minimize flaring during production and fuel gas consumption at the Ichthys LNG Project, and promoted low-carbon operations
  • Aim to further increase the current LNG production capacity to build a structure capable of stably producing 9.3 million tons per year at the Ichthys LNG Project
  • Increase gas ratio of portfolio by raising gas investment ratio to about 70%
  • Make our projects cleaner by achieving zero routine flaring, introducing carbon capture, usage, and storage and renewable electricity, conserving energy, utilizing forestation credits, etc.

Abu Dhabi
  • In addition to starting to use clean power at some onshore facilities, worked with the Abu Dhabi National Oil Company to adopt clean power, including using onshore clean power to supply offshore facility power needs
  • Aim to further reduce production costs by optimizing personnel allocation and introducing new technologies, and supply offshore facilities with clean power

Norway
  • Commence power generation at the Hywind Tampen floating wind farm
  • Expanded the volume of carbon neutral gas sold
  • Promotion of low-carbon business by starting power generation at the Hywind Tampen floating wind farm and power provision to the Snorre oil field and the pursuit of the potential for reducing CO2 emissions from oil and gas production plants by using power supplied from onshore hydroelectric power generation
  • Expanded the volume of carbon neutral gas sold

HSE

  • SDG 3 (icon)
  • SDG 6 (icon)
  • SDG 8 (icon)
  • SDG 12 (icon)
  • SDG 14 (icon)
  • SDG 15 (icon)
Prevention of major incidents

FY2022 achievements

FY2023 targets

Medium- to long-term targets, initiatives, and directions
  • Reduced the number of incidents by: issuing incident bulletins; drawing lessons from incidents; statistically analyzing and benchmarking incidents; strengthening incident cause investigation; promoting the introduction of safety leading indicators; and conducting interviews with contractors and developing safety moments in relation to Life-saving Rules (LSRs) to expand activities to not only operational organizations but to contractors, domestic subsidiaries, INPEX Technical Research Center, and Akasaka Head Office as well
  • Enhanced process safety and asset integrity management by conducting HSE reviews and providing technical support (bowtie analyses, safety case reviews, etc.) at operator projects, and by commencing measurement and monitoring of Tier 3 and Tier 4 leading indicators
  • Strengthen incident prevention efforts by: issuing incident bulletins; drawing lessons from incidents; and promoting LSRs, other internal campaigns, and the introduction of safety leading indicators
  • Further improve process safety management through systemic programs by: conducting HSE reviews and providing technical support (bowtie analyses, safety case reviews, etc.) at operator projects and commencing measurement and monitoring of Tier 3 and Tier 4 leading indicators）
  • Implement HSE risk management and HSE management for the five net zero businesses
  • Ensure compliance with LSRs for safety in high-risk operations, strengthen process safety management, and completely eliminate major incidents
  • Carry out actions that help improve HSE management

    1. Senior management executives demonstrate HSE leadership
    2. Contribute to carbon-reduction projects through HSE management
    3. Perform thorough risk management
    4. Strengthen incident prevention efforts
    5. Prevent leaks from facility processes
    6. Prepare for emerging threats
    7. Help to address global environmental challenges and create environmental value
    8. Reinforce infection control measures
Securing of occupational health and safety

FY2022 achievements

FY2023 targets

Medium- to long-term targets, initiatives, and directions
  • Strengthened HSE management at worksites by: formulating/implementing an action plan based on the results of the HSE culture survey; reinforcing coordination between corporate divisions and operator projects; and holding an HSE Forum to share good practices and issues
  • Strengthened health management by: driving the creation of a health management activities platform; and developing COVID-19 Risk Screening for Overseas Travelers to review risks for traveling on business trips as a response to COVID-19
  • Demonstrate HSE leadership by: implementing an action plan based on the results of the HSE culture survey; reinforcing coordination between corporate divisions and operator projects; and holding an HSE Forum
  • Strengthen health management by: standardizing health management activities; strengthening mental health management; and standardizing infectious disease management
  • Ensure compliance with LSRs for safety in high-risk operations, strengthen process safety management, and completely eliminate major incidents
  • Carry out actions that help improve HSE management

    1. Senior management executives demonstrate HSE leadership
    2. Contribute to carbon-reduction projects through HSE management
    3. Perform thorough risk management
    4. Strengthen incident prevention efforts
    5. Prevent leaks from facility processes
    6. Prepare for emerging threats
    7. Help to address global environmental challenges and create environmental value
    8. Reinforce infection control measures
Biodiversity conservation and water risk management

 

FY2022 achievements

FY2023 targets

Medium- to long-term targets, initiatives, and directions

Biodiversity conservation
  • Established and published our biodiversity conservation policy and commitment
  • Continued biodiversity conservation activities and monitoring by: conducting a survey of biodiversity in Japan, etc.
  • Updated the database of protected areas for project areas
  • Identify risks and opportunities related to biodiversity
  • Consider establishing targets and making disclosures in compliance with requirements such as the Taskforce on Nature-related Financial Disclosures (TNFD)
  • Implement biodiversity conservation initiatives in project areas
  • Ensure compliance with LSRs for safety in high-risk operations, strengthen process safety management, and completely eliminate major incidents
  • Carry out actions that help improve HSE management

    1. Senior management executives demonstrate HSE leadership
    2. Contribute to carbon-reduction projects through HSE management
    3. Perform thorough risk management
    4. Strengthen incident prevention efforts
    5. Prevent leaks from facility processes
    6. Prepare for emerging threats
    7. Help to address global environmental challenges and create environmental value
    8. Reinforce infection control measures

Water risk management
  • Established and published our water risk management policy and commitment
  • Updated water stress assessments in project areas
  • Assessed the current state of water balance and aggregated/analyzed data on the volume of freshwater/seawater intake and use in our projects
  • Identify risks and opportunities related to water risk management
  • Consider implementing initiatives and making disclosures in compliance with requirements such as the TNFD
  • Carefully examine water balance , and identify issues, in project areas

Local Communities

  • SDG 1 (icon)
  • SDG 8 (icon)
  • SDG 9 (icon)
  • SDG 10 (icon)
  • SDG 17 (icon)
Implementation of assessments of impact on local and indigenous communities and measures to reduce impact

 

FY2022 achievements

FY2023 targets

Medium- to long-term targets, initiatives, and directions

Japan
  • Maintained positive relationships with stakeholders through continuous dialogue, including appropriate response to inquiries from local communities and publication of newsletters
  • Maintain positive relationships with stakeholders through continuous dialogue, including appropriate response to inquiries from local communities and publication of newsletters
  • Contribute to local development and the addressing of social issues through our business activities, while respecting human rights and the cultures and customs of the areas in which we operate
  • Understand and respond to community needs through dialogue with stakeholders in the areas in which we operate

Australia
  • Maintained positive relationships with government agencies, industry groups, and local stakeholders through more than 300 dialogues
  • Maintain positive relationships with stakeholders through proactive dialogue
Contribution to local economies

 

FY2022 achievements

FY2023 targets

Medium- to long-term targets, initiatives, and directions

Global
  • Invested approximately 3 billion yen in social contribution initiatives
  • Continue investment in social contribution initiatives in response to the needs of the local communities in which we operate
  • Contribute to local development and the addressing of social issues through our business activities, while respecting human rights and the cultures and customs of the areas in which we operate
  • Understand and respond to community needs through dialogue with stakeholders in the areas in which we operate

Australia
  • Achieved targets set in Reconciliation Action Plan (RAP) 2019–2022 , and develop the next plan for RAP 2023–2025
  • Directly employed 49 Aboriginal and/or Torres Strait Islander people and indirectly employed about 100 people on average through contractors, as of the end of FY2022
  • Procured more than A$ 13 million of goods/services from 23 Aboriginal and/or Torres Strait Islander businesses from FY2019 to FY2022
  • Achieve targets set in RAP 2023–2025
  • Continue to implement our social contribution strategy

Human Capital

  • SDG 4 (icon)
  • SDG 5 (icon)
  • SDG 8 (icon)
Making INPEX the best place to work 

 

FY2022 achievements

FY2023 targets

Medium- to long-term targets, initiatives, and directions

Global
  • Considered new measures for INPEX Values
  • Promote INPEX Values
  • Resume opportunities for overseas office employees to be assigned to our headquarters
  • Implement programs and establish a corporate culture that cultivates employee satisfaction and engagement
  • Expand support for employee career development
  • Create a workplace environment that supports needs for diverse workstyles and employee well-being

Japan
  • Adopted a job-focused personnel system for executives
  • Secured human resources by increasing recruitment of mid-career employees
  • Held third round of workplace COVID-19 vaccinations and expanded the headquarters occupational physician team
  • Adopt a job-focused personnel system and talent management system for regular employees and employees working under reemployment contracts
  • Employ diverse human resources, including women, researchers, and highly specialized individuals
  • Overhaul the employee benefit program (introduce Cafeteria Plan)

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