Sustainability Report 2024

Sustainability Material Issues: Targets and Achievements

Environment

Achievement of Targets for Addressing Climate Change
FY2024 Achievements	FY2027 Targets	Mid- to Long-term Targets, Initiatives, and Directions
Achieved a CDP Climate Change score of B Achieved net carbon intensity of 28 kg-CO₂e/boe in FY2024 Achieved methane emission intensity (methane emissions/natural gas production) of 0.05%	Reduce net carbon intensity (Scope 1 + Scope 2) by 35% versus 2019 levels	Achieve net zero in absolute emissions by 2050 (Scope 1 + Scope 2) Reduce net carbon intensity (Scope 1 + Scope 2) by 60% by FY2035 Aim to contribute to reducing society’s emissions by about 8.2 million tons per year by FY2035 (our reduction contributions to society’s GHG emissions through our products and services) Achieve zero routine flaring by FY2030 Maintain methane emission intensity (methane emissions/natural gas production) at the current low levels (about 0.1%)

Expansion of natural gas and LNG business
	FY2024 Achievements	FY2027 Targets	Mid- to Long-term Targets, Initiatives, and Directions
Australia	Confirmed that Ichthys LNG has increased the capacity of the facility to produce 9.3 million tons per year. Also promoted lower-carbon operations by minimizing flaring and fuel gas emissions during production.	Maintain and enhance a safe and stable production structure of 9.3 million tons per year at Ichthys LNG through safe operations and improved facility utilization rates. Also continue promoting lower-carbon operations.	Maintain safe and reliable operation and expand liquefaction capacity at the Ichthys LNG Project in Australia Start production at the Abadi LNG Project in Indonesia at the beginning of the 2030s Strengthen LNG trading capabilities to achieve more flexible LNG supply Focus on exploration in activities in high-potential areas where early monetization is possible
Indonesia	Conducted preparatory activities ahead of starting basic design work (FEED) (onshore/offshore geotechnical and geophysical surveys, FEED contractor tender, environmental approval applications, land procurement)	Continue necessary preparatory work to start production at the beginning of the 2030s
Abu Dhabi	Expanded the supply of clean power to onshore oil fields. Worked with ADNOC to adopt clean power by also supplying offshore oil fields with onshore clean power.	Continue to reduce flaring and adopt clean power at offshore facilities
Norway	Confirmed commercial-scale gas and oil at the PL636B (Cerisa) and PL090 (Rhombi) blocks. Started a development study. Conducted development studies for gas and oil discovery structure at Peon and South Flåm, etc. Continued to provide power from the Hywind Tampen floating wind farm to the Snorre oil field	Work to further reduce carbon emissions at Snorre and other existing production projects (use renewable energy for operational power, etc.) Conduct preparatory work for development and production at the South Flåm and Cerisa gas and oil fields (including lower-carbon measures) Discover new gas reserves through exploration activities, and acquire low-carbon oil and gas assets through M&A activities

Implementation of lower-carbon solutions
	FY2024 Achievements	FY2027 Targets	Mid- to Long-term Targets, Initiatives, and Directions
CCS	Conducted reservoir assessments, new 3D seismic data acquisition and processing work, and evaluation well drilling work, etc. at the G-7-AP GHG assessment block in Australia The Tokyo Metropolitan Area CCS Project and Tohoku Region West Coast CCS Initiative Project, in which we participate, were adopted under the 2023 Survey on Implementation of Advanced CCS Projects commissioned by JOGMEC The Tokyo Metropolitan Area CCS Project and Tohoku Region West Coast CCS Project, in which we participate, were adopted, and relevant studies were launched, under the 2024 Engineering Design Work for Advanced CCS Projects commissioned by JOGMEC	Make FID and move to EPC phase toward commercialization of the Bonaparte CCS Project at the G-7-AP GHG assessment block in Australia Conduct study into CCS adoption at the Wisting Oil Field development concept in the Barents Sea, Norway Conduct study toward commercialization of the Trudvang CCS Project in the North Sea, Norway Conduct pre-FEED and FEED work at Advanced CCS Projects in which we are involved in Japan and continue work toward commercialization	Contribute to adoption of lower-carbon energy by leveraging developed organizational capabilities and existing technologies Reduce GHG emissions by combining CCS with natural gas and LNG projects in which we participate, and provide GHG emission reduction solutions and supply blue hydrogen to third parties
Hydrogen/ammonia	Progressed, as planned, construction of aboveground facilities for the integrated demonstration testing of hydrogen and ammonia production and usage in Kashiwazaki City, Niigata Prefecture Completed the feasibility study for a blue hydrogen production project using our natural gas fields and existing infrastructure in Niigata Prefecture, and began basic design preparations toward commercialization Completed pre-FEED work for a large-scale, low-carbon ammonia production project at the Port of Houston, Texas Signed a joint study agreement for a green hydrogen project in southern Texas, and completed the feasibility study	Conduct demonstration testing of blue hydrogen and ammonia in Kashiwazaki City, Niigata Prefecture, and methane technology demonstrations in Koshijihara, Niigata Prefecture, to enable operations to start in 2025/2026 Conduct pre-FEED, FEED, and other work related to hydrogen and ammonia projects and continue work toward commercialization

Expansion of Businesses in Power-related Fields
FY2024 Achievements	FY2027 Targets	Mid- to Long-term Targets, Initiatives, and Directions
Reached a FID on Quorn Park photovoltaic and battery energy storage system project in Australia through Potentia Energy (formerly EGPA) INPEX subsidiary INPEX Geothermal signed a memorandum of understanding with PLN Indonesia Power for a joint geothermal study in Indonesia Joined Floating Offshore Wind Technology Research Association (FLOWRA) Began work toward exploratory drilling related to geothermal power generation projects in Japan (Okuhida Onsengo district of Takayama City, Gifu Prefecture, and Shibetsu Town, Hokkaido)	Secure and grow stable profits for Potential Energy Develop and expand capacity of in-house power supplies (expand existing projects, including extension of the Muara Laboh Geothermal Power Project in Indonesia, and acquire new projects)	Continue to enhance profitability and expand renewable energy, as our major initiative in the power business, by focusing on core business regions and fields where we have technical capabilities Pursue business opportunities in cleaner gas-fired power generation, integrated with fuel supply through our existing gas pipeline networks, while exploring future possibilities for hydrogen co-firing/dedicated combustion and CCS implementation Maximize the value of power asset portfolio by optimizing the combination of renewable energy, which needs support for fluctuations in output, and balancing power sources (battery and gas-fired power) Expand development, production, and supply projects for the non-oil and natural gas subsurface mineral resources needed to support the energy supply system Provide opportunities for more efficient and cleaner energy supply for power-intensive industries such as data centers
Began examining power solution projects in each region with partners, including batteries and cleaner gas-fired power generation based on CCS, to promote advanced, lower-carbon energy systems	Develop and own balancing power sources (gas-fired power, batteries, etc.) Strengthen business foundations for power solutions (aggregation, power market trading, retail, etc.) Develop scenarios for expanding power solution projects in Japan by leveraging our strengths Implement major power solution project initiatives through expansion of partnerships, including initiatives under the comprehensive collaboration agreement with Hokuriku Electric Power Develop and demonstrate an Environmental Management System (EMS) with EMS operators
Invested in EneCoat Technologies, a developer of perovskite solar cells, to enhance initiatives across our entire iodine supply chain Developed a raw material supply project concept for subsurface mineral resources, for which demand is likely to increase in the future	Launch new development, production, and supply projects for subsurface mineral resources Assess and consider geothermal and direct lithium extraction projects Formulate a growth strategy for increased profitability and business scale expansion for Chiba Prefecture projects (gas and iodine) in collaboration with the Tokyo Metropolitan Area CCS Project and integrated with upstream, midstream, and downstream processes

Biodiversity Conservation
FY2024 Achievements	FY2027 Targets	Mid- to Long-term Targets, Initiatives, and Directions
Conducted nature readiness self-assessments and identified issues with our nature-related initiatives Conducted assessments based on TNFD’s LEAP approach and identified interfaces of our projects with nature, impacts and dependencies, and risks and opportunities Made a commitment to “Achieve net zero deforestation in operational projects starting in 2025 or later” as our quantitative target for biodiversity conservation Updated the database of protected areas for our project areas	Expand the scope of nature-related disclosures in line with the TNFD framework Steadily implement biodiversity conservation initiatives in our project areas Achieve net zero deforestation in operational projects	Steadily plan and implement biodiversity conservation initiatives based on the mitigation hierarchy Promote initiatives that contribute to realizing nature positivity Promote nature-related disclosures for our projects in line with the TNFD framework

Implementation of environmental pollution measures
FY2024 Achievements	FY2027 Targets	Mid- to Long-term Targets, Initiatives, and Directions
Implemented environmental pollution measures (air quality and wastewater), and planned and conducted environmental monitoring at each operational organization in accordance with the laws and regulations of countries in which we operate our projects, international standards, and good practices Conducted waste management at each operational organization in accordance with laws and regulations. Also conducted periodic inspections and audits of waste service providers. Developed and maintained rules and procedures to prevent incidents at the wells, pipelines, plants, and other assets of each operational organization. Also contracted with Oil Spill Response to establish and maintain a structure for responding to a large-scale oil spill.	Continue steady implementation of the initiatives to the left, and review as the situation changes	Continue steady implementation of the initiatives to the left, and review as the situation changes

Social

Prevention of Major Incidents
FY2024 Achievements	FY2027 Targets	Mid- to Long-term Targets, Initiatives, and Directions
Maintained rate of zero major incidents Achieved Group-wide process safety management competency (developed necessary books and tools and rolled out the process safety fundamentals)	Optimize the process safety competency management framework for adoption by operational organizations Reestablish the minimum requirements for process safety management, including for the net zero businesses	Maintain rate of zero major incidents Clarify the required level of process safety competency and develop the necessary education and training materials Determine process safety management requirements in line with project purposes

Securing of Occupational Health and Safety
FY2024 Achievements	FY2027 Targets	Mid- to Long-term Targets, Initiatives, and Directions
With LTIR of 0.45 and TRIR of 2.06, failed to meet both targets (LTIR: 0.28 and TRIR: 1.95) Conducted initiatives to prevent incidents through safety measures through awareness-raising activities for the Life-saving Rules based on incident trend analysis Demonstrated HSE leadership by conducting six management site visits and holding special seminars Strengthened health management by conducting a Group-wide survey of best practices for preventing mental health problems on a site-by-site basis, and reporting the results to the Health Management Committee	Ensure compliance with the Life-saving Rules and implement safety measures based on incident trend analysis Create a framework for planning and implementation in relation to common issues across all departments globally, and strengthen integrated Group-wide initiatives Comprehensively revise HSE procedures Promote HSE assurance activities through reviews and audits Promote Group-wide awareness-raising activities Enhance sharing of dedicated HSE information	Improve Group-wide safety awareness, and conduct integrated safety management including incident reduction initiatives Establish the foundations for smooth development and implementation of appropriate levels of HSE management in all new projects Regularly communicate messages on HSE from senior management to operating sites and elsewhere

Enhancement of Engagement and Promotion of DE&I
	FY2024 Achievements	FY2027 Targets	Mid- to Long-term Targets, Initiatives, and Directions
Global	Held a conference with past recipients of the Value Awards as part of efforts to promote INPEX Values Provided opportunities for overseas office employees to be assigned to our head office (six employees in total from Australia and Abu Dhabi)	Continue promoting INPEX Values (Value Awards Conference) Provide opportunities for overseas office employees to be assigned to our head office (expand the number of applicable overseas offices) Promote assignment of the right people to the right positions on a global level	Aim to enhance work quality and efficiency by becoming an employer of choice and creating a rewarding workplace Secure diverse human resources, including high-potential human resources and women in particular Cultivate a culture of support for individuals to take on challenges, and enhance the development of human resources to realize our growth strategy Develop a work environment that encourages a high level of engagement by diverse human resources
Japan	Established a task force to promote women’s empowerment and promoted the development of work environments based on its recommendations Conducted regular pulse surveys to visualize organizational issues and employee awareness Implemented measures to improve the quality and amount of training, including expansion of the self-development support system, adoption of selective training, and offering assignments to our young employees for practical training at our offices and operational sites in Japan and overseas	Continue promoting specific measures in the area of human resources tied to the Human Resources Strategy Maintain and enhance competitive wages to secure high-potential human resources Expand training for employees to take on challenges and enhance development of organization leaders Further develop work environments that enable active participation of women and other diverse human resources

Respect for Human Rights
FY2024 Achievements	FY2027 Targets	Mid- to Long-term Targets, Initiatives, and Directions
Published respective FY2023 Statement Pursuant to the United Kingdom Modern Slavery Act 2015 and the INPEX Australia Modern Slavery Statement Disclosure of Transparency Act Due Diligence Report in response to Norway's Transparency Act Continued to conduct human rights training Worked with external human rights specialists to conduct human rights due diligence Identified our salient human rights issues and reported them to the Sustainability Committee	Conduct effectiveness evaluation of human rights due diligence and formulate action plans Continue to issue Statement Pursuant to the United Kingdom Modern Slavery Act 2015 and the INPEX Australia Modern Slavery Statement Continued Compliance with Norway’s Transparency Act Continue to conduct human rights training Improve the methods used for risk assessments of significant suppliers and contractors (including with regard to human rights)	Ensure compliance with the laws and regulations of the areas in which we operate and with international norms Continue human rights due diligence

Coexistence with, and Development of, Local Communities (Indigenous Peoples)
	FY2024 Achievements	FY2027 Targets	Mid- to Long-term Targets, Initiatives, and Directions
Global	At our main sites, located in Japan, Australia, Indonesia, and Abu Dhabi, received feedback from local communities via diverse channels, including telephone, email, letter, and face-to-face dialogue with our office representatives, depending on the region and nature of our business	Maintain positive relationships with stakeholders through proactive and ongoing dialogue Continue to implement our social contribution strategy Formulation and Implementation of the Reconciliation Action Plan (RAP) with Aboriginal and Torres Strait Islander peoples in Australia for 2026 and beyond	Contribute to developing local communities and addressing 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 needs of local communities through dialogue with stakeholders in the areas in which we operate
Japan	Maintained positive relationships with stakeholders through continuous dialogue, including appropriate response to inquiries from local communities and publication of newsletters
Australia	Maintained positive relationships with government agencies, industry groups, and local stakeholders through more than 300 dialogues Continued to execute Reconciliation Action Plan (RAP) 2023–2025 Directly employed 54 Aboriginal and/or Torres Strait Islander people and indirectly employed about 130 of them on average through contractors, as of the end of FY2024 Procured more than A$ 19.5 million of goods/services from 21 Aboriginal and/or Torres Strait Islander businesses, as of the end of FY2024

Supply Chain Risk Management
FY2024 Achievements	FY2027 Targets	Mid- to Long-term Targets, Initiatives, and Directions
Continued CSR self-assessment surveys (including with regard to human rights and anti-bribery and anti-corruption (ABC) measures) for significant suppliers in Japan Continued risk assessments (including with regard to human rights and ABC measures) of significant suppliers, and improved the methods used for risk assessments Conducted on-site CSR audits of suppliers Continued holding the Supplier Forum (including supplier awards) Participated in the supply chain subcommittee of the Global Compact Network Japan	Establish a unified process for supplier CSR management utilizing our supply chain network, including each of our overseas sites Continue CSR self-assessment surveys for significant suppliers in Japan Establish methods for collecting and managing information on suppliers' efforts for reducing GHG emissions Conduct CSR audits of suppliers (through desktop and on-site audits) Continue holding the Supplier Forum (including supplier awards)	Establish a structure for reducing operational and reputational risks by visualizing, and implementing measures against, the CSR potential risks in our supply chain Strengthen supply chain risk assessments and compliance Visualize supply chain-related GHG emissions and work with suppliers to reduce them

Governance

Improvement of Corporate Governance Structure
FY2024 Achievements	FY2027 Targets	Mid- to Long-term Targets, Initiatives, and Directions
Continued holding comprehensive discussions in Board of Directors meetings (in particular, provided information and opportunities for active discussions that contributed to formulation of INPEX Vision 2035, held discussions from a wide range of perspectives, including positioning, target metrics, and planning processes, after first ensuring at the beginning of the year that there would be many opportunities for discussion) Held lectures and discussion sessions by AI experts on the theme of AI and the energy industry to enhance the knowledge of Board members (continued engaging experts to speak at Board meetings every year) Discussed Director candidates for the March 2025 General Meeting of Shareholders in the Nomination and Compensation Advisory Committee from the perspective of further enhancing Board diversity. The Board selected appropriate candidates based on these discussions (for the first time at INPEX, a foreign national was selected as a Director candidate).	Enhance the corporate governance structure through appropriate operation of the Board, and assess the effectiveness of the Board and continue implementing the PDCA cycle Continue holding comprehensive discussions at Board meetings Define the roles of Directors and the Board based on the Company’s characteristics, review criteria for Board agenda items, and continue to consider optimal governance structures as needed	Strengthen the corporate governance structure, including enhancement of the supervisory role of the Board Deepen discussions by the Nomination and Compensation Advisory Committee about achieving further diversity in the Board (appointing more women, and people with foreign nationality and management experience) and about a succession plan for the Representative Director, President & CEO, and provide feedback on those discussions to the Board Establish and maintain a globally comparable corporate governance structure as a Japanese global company
Appointed an Outside Director as the Chair of the Nomination and Compensation Advisory Committee to strengthen the independence of the Committee The Chair of the Nomination and Compensation Advisory Committee provided feedback to the Board on the annual deliberations of the Committee, including the succession plan for the Representative Director, President & CEO (FY2024 initiative based on the Board effectiveness assessment) Discussed the nomination and compensation of Directors with the appropriate involvement of the Nomination and Compensation Advisory Committee	Further enhance the governance structure for the nomination and compensation of Directors Further enhance the level of feedback to the Board concerning the status of deliberations in the Nomination and Compensation Advisory Committee (Director nominations and compensation, Representative Director, President & CEO succession plan, etc.) Discuss, in the Nomination and Compensation Advisory Committee, the combination of skills the Board should have in relation to achieving the Mid‑term Business Plan, select suitable candidates, and submit recommendations to the Board
Enhanced the global tax governance structure through close communication with overseas sites	Further enhance tax planning and tax compliance through maintenance and expansion of a dedicated taxation organization

Improvement of Risk Management Structure
FY2024 Achievements	FY2027 Targets	Mid- to Long-term Targets, Initiatives, and Directions
Reviewed project-related and other risks Checked the risk management structure Monitored risks through internal committees Implemented the PDCA cycle for risks	Continue steady implementation of the initiatives to the left	Optimize and improve the risk management structure Continue to monitor mitigation/management plans for material risks and issues identified by each division under INPEX Vision 2035
Held 20 INPEX Value Assurance System (IVAS) Committee meetings Provided the Board of Directors with an executive summary of risk assessment results for major projects	Hold IVAS Committee meetings as needed Report progress and action plans for each of our projects at monthly Board of Directors meetings
Held two Information Security Committee meetings Held two training sessions on targeted email attacks Conducted one e-learning lesson on information security Conducted a security assessment of operating systems	Hold two Information Security Committee meetings (excluding extraordinary meetings) Hold two training sessions on targeted email attacks Conduct one e-learning lesson on information security Conduct a security assessment of operating systems
Promoted the head office business continuity plan (BCP) activities for earthquake scenarios, and provided BCP education and training Revised the head office BCP for infectious disease scenarios based on verification and assessment of COVID-19 responses	Promote head office BCP activities for earthquake scenarios, and provide BCP education and training

Compliance with Laws and Prevention of Bribery and Corruption
FY2024 Achievements	FY2027 Targets	Mid- to Long-term Targets, Initiatives, and Directions
Ensured awareness of compliance and enhanced education and training programs (monthly publication of compliance news, training for new graduates and mid-career employees, level-specific compliance lectures, officer and executive compliance training, legal compliance monitoring, compliance assessments, etc.) Jointly enhanced compliance across the Group (held a global compliance meeting, provided training support to sites in Japan, etc.) Appropriately applied anti-bribery and anti-corruption (ABC) regulations (continued training, due diligence, risk assessments of ABC practices at offices in Japan and overseas, etc.) Effectively developed and appropriately operated the whistle-blowing system (provided training for whistle-blower response personnel, etc.)	Continue implementing the following compliance initiatives: Ensure awareness of compliance and enhance education and training programs Jointly enhance compliance across the Group Appropriately apply ABC regulations Effectively develop and appropriately operate the whistle-blowing system	Fully comply with and appropriately respond to the laws and regulations (including ABC laws) and judicial/administrative sanctions of the areas in which we operate, and international norms and ethics, etc.

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