Sustainability Report 2023

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Sustainability Report 2023

Our Policy

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. Our sustainability management activities focus on the six Sustainability Material Issues of greatest importance to our business and our stakeholders. They are governance, compliance, climate change, health, safety and environment, local communities, and human capital.

Sustainability Governance Structure

Chaired by our Representative Director, President & CEO, our Sustainability Committee was established to clearly communicate our senior management executives’ vision for sustainability, discuss basic policies for sustainability, and promote Group-wide and systematic sustainability practices. The members include Representative Directors, the Senior Vice President of the General Administration Division, and the Senior Vice President of the Corporate Strategy & Planning Division (Vice-chair of the Sustainability Committee). The Chairs of our Compliance Committee and Corporate HSE Committee also attend the meetings to facilitate collaboration with their respective committees. The Sustainability Committee met three times in FY2023, and the matters addressed at those meetings were also discussed at Executive Committee and Board of Director meetings.

Under the Sustainability 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.

Sustainability Governance Structure

1 INPEX Value Assurance System (IVAS) Committee: A committee that supports our project promotion and value enhancement decision-making process

Sustainability Material Issues

We have identified six of the seven core sustainability themes in ISO 26000 as areas of high importance for the Company and our stakeholders, and these form our Material Issues. Our Material Issues have been identified based on double materiality, whereby we identify and prioritize issues that may have a significant impact on our business sustainability, external stakeholders, or the environment.

Six Sustainability Material Issues

We have also identified priority actions (Key Tasks) for each Material Issue area and embedded these Key Tasks into our PDCA cycle to enable continuous improvement. In 2017, we reviewed and revised each Key Task through a four-step prioritization process (1. Issue identification and gap analysis; 2. Stakeholder dialogue; 3. Issue prioritization; and 4. Management review). This review also incorporated the perspective of the United Nations Sustainable Development Goals (SDGs)2.

In March 2022, we reviewed our Key Tasks following dialogues with major stakeholders which were conducted concurrently with the announcement of our Long-term Strategy and Medium-term Business Plan (INPEX Vision @2022) during the previous month. Our Material Issues and Key Tasks are reviewed annually through engagement with internal and external stakeholders. The results are approved by the Sustainability Committee chaired by the Representative Director, President & CEO and reported to the Board of Directors.

2 Sustainable Development Goals (SDGs): 17 goals and 169 targets adopted by the United Nations Sustainable Development Summit in September 2015 that represent common goals for ending poverty, protecting the planet, and ensuring that by 2030 all people enjoy peace and prosperity

INPEX Key Tasks

  • Improvement of the governance structure
  • Improvement of the risk management structure
  • Respect for human rights
  • Compliance with laws and prevention of bribery and corruption
  • Supply chain risk management
  • Prevention of major incidents
  • Securing of occupational health and safety
  • Biodiversity conservation and water risk management
  • Implementation of assessments of impact on local and indigenous communities and measures to reduce impact
  • Contribution to local economies
  • Promotion of climate change response goals and disclosures based on TCFD recommendations
  • Promotion of five net zero businesses
    • Hydrogen/ammonia
    • CCUS
    • Renewable energy
    • Carbon recycling and new business
    • Forest conservation
  • Cleaner oil and gas business and transition to natural gas
  • Realization of Making INPEX employer of choice

Engagement with Industry Associations

To support our business and sustainability objectives, we participate in the International Association of Oil & Gas Producers (IOGP), Australian Energy Producers , and Ipieca (an international association addressing environmental and social issues in the oil and gas industry). Through our membership and participation in these initiatives, we aim to continuously improve our business practices and governance, as well as our safety, environmental, economic and social performance. Aligned with our own Corporate Position on Climate Change, each of these organizations is positioned to support energy transition consistent with the objectives of the Paris Agreement. Within Japan, we are members of the Japan Energy Resources Development Association, the Japan Natural Gas Association, and Japan Gas Association to ensure the sound development of the industry and a stable energy supply. Our industry association memberships further support our efforts to build sound and constructive relationships with governments and administrative authorities by presenting a collective voice on key matters within the energy industry. Other initiatives in which we participate include the Extractive Industries Transparency Initiative (EITI)—which aims to increase transparency and improve natural resource management in oil, gas, and mineral producing countries—, Challenge Zero (Challenge Net Zero Carbon Innovation)—an initiative led by the Japan Business Federation (Keidanren)—, New Energy Foundation, Japan Hydrogen Association, and ccus + initiative that challenges groups and organizations in Japan and abroad to take concrete innovation actions to help achieve a decarbonized society.

The following industry organizations are a selection of those in which we participate.

United Nations Global Compact

We have been a signatory to the United Nations Global Compact since 2011 and have declared our support for its Ten Principles in the areas of human rights, labor, the environment, and anti-corruption. Since 2012, we have participated in activities of the various sustainability-related subcommittees set up by the Global Compact Network Japan.

International Association of Oil & Gas Producers (IOGP)

IOGP is an international industry association representing the world’s main oil and gas companies, and related organizations. Its principle objectives are to promote greater sustainability and safety of oil and gas production activities. Additionally, IOGP conducts a range of activities, including formulating best practices, sharing technologies in the industry, and addressing important issues such as environmental protection and occupational safety. When comparing ourselves with industry standards, we evaluate IOGP’s health and safety benchmarks.

Australian Energy Producers (formerly Australian Petroleum Production and Exploration Association)

Australian Energy Producers (formerly known as the Australian Petroleum Production and Exploration Association) is an industry association representing the energy sector in Australia. We engage in policy and regulatory development related to the Paris Agreement, supporting efforts by the oil, gas, and LNG sectors to reduce greenhouse gas emissions and transition to clean energy.


Ipieca is an international industry association representing companies, organizations, and persons involved in the oil and gas industry. It provides guidance and resources for a range of environmental challenges, including environmental protection, climate change, biodiversity, and water management. It is also engaged in collaborative activities, offering exemplary practice as guidelines, for promoting the role of the oil and gas industry in international environmental frameworks and in achieving the SDGs.

GX League Basic Concept

GX stands for “green transformation,” a concept for transforming the entire economic and social system to reduce emissions and increase industrial competitiveness. It perceives opportunities for economic growth in Japan’s goal of carbon neutrality by 2050 and its GHG emission reduction targets by 2030. We have participated in the GX League since April 2023, with the Ministry of Economy, Trade and Industry serving as the secretariat. Participating companies are required to establish targets for direct and indirect domestic emissions, work to reduce emissions, and publicize their efforts. We have already disclosed our own transition strategy and vision for climate change.

Extractive Industries Transparency Initiative (EITI)

EITI is an international initiative established to improve transparency and accountability in the resources extraction industry. It is operated by a partnership of governments, companies, civil society organizations, and international institutions. We disclose our financial contributions by country in our ESG data.

Japan Business Federation (Keidanren)

As a member of Keidanren, we uphold and implement the spirit of the federation’s Charter of Corporate Behavior. We also participate in Challenge Zero, with our methanation technologies and artificial photosynthetic chemical process listed as examples of our innovation challenges on the official website. Challenge Zero is a collaboration between Keidanren and the Japanese government to realize a decarbonized society as the long-term goal of the Paris Agreement, an international framework for climate change measures. This is a new initiative designed to provide a powerful voice and support, both domestically and internationally, for the innovation challenges of companies and organizations.

Japan Hydrogen Association

INPEX participates in the Japan Hydrogen Association and conducts a range of activities to support growth and expansion of the hydrogen industry. These activities include collaborating with governments, building domestic and international partnerships, making government policy recommendations, and assisting in market development. We also share information on the latest domestic and international trends in technologies and markets, and promote domestic and international collaborations to help realize a hydrogen society.

CCS+ Initiative

INPEX participates in the CCS+ Initiative, which aims to develop an integrated carbon accounting infrastructure for CCUS under Verra’s Verified Carbon Standard (VCS), the world’s most widely used greenhouse gas crediting program. We share information on the latest trends in CCUS-related technologies and markets, and actively support the spread and expansion of CCS, contributing to realizing a carbon-neutral society.

The Oil & Gas Methane Partnership 2.0 (OGMP 2.0)

INPEX joined the Oil & Gas Methane Partnership 2.0 (OGMP 2.0), a reporting framework for methane reductions by oil and gas companies. OGMP 2.0 was established as an international reporting framework under the United Nations Environment Programme (UNEP), providing member companies with a framework for comprehensive, measurement-based reporting to promote methane reductions. By reporting methane emission reductions through the OGMP 2.0 framework, we are improving the accuracy and transparency of our methane emissions reporting. We are also actively sharing technological innovation and information on specific initiatives with other member companies with the aim of measuring and reducing methane emissions.