Climate Change Data

Japan Petroleum Exploration Co., Ltd.

Climate Impact & Sustainability Data (2021-04 to 2022-03, 2022-04 to 2023-03, 2023-04 to 2024-03)

Reporting Period: 2021-04 to 2022-03

Environmental Metrics

Total Carbon Emissions:620,000 tCO2e/year (Scope 1+2)
Scope 3 Emissions:10,170,000 tCO2e/year
Total Energy Consumption:10,511 TJ/year
Water Consumption:45,690,000 kL/year
Waste Generated:46,687,000 kL/year
Carbon Intensity:3.20 ton-CO2/TJ (FY2021)

ESG Focus Areas

  • Climate Change
  • Stable and Sustainable Energy Supply
  • HSE (Health, Safety, and Environment)
  • Community Relations
  • Employee Well-being
  • Governance
  • Diversity, Equity & Inclusion (DE&I)

Environmental Achievements

  • Reduced GHG emission intensity (Scope 1+2) by 19% compared to FY2019
  • Achieved zero supply disruption to clients despite temporary suspension of gas supply from Soma LNG Terminal due to an earthquake.
  • Earned the Blue ranking in the PROPER program for 10 consecutive years.
  • Continued efforts to reduce negative impacts at business locations and their surrounding areas.

Social Achievements

  • Established the JAPEX Diversity, Equity & Inclusion (DE&I) Policy.
  • Increased the percentage of female new-graduates hired to 35.3%.
  • Increased the rate of paid leave taken to 81.2%.
  • Certified as one of the Health & Productivity Management Outstanding Organizations for the sixth year in a row.
  • Made contributions to local communities in domestic and overseas operating areas.

Governance Achievements

  • Selected for the Prime Market in the Tokyo Stock Exchange’s new market segments.
  • Established the Risk Management Committee and the Sustainability Committee.
  • Improved the effectiveness of the Board of Directors.
  • Linked officers’ compensation to responses to climate change (from FY2022).

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero GHG emissions from JAPEX’s operating locations by 2050.
Medium-term Goals:
  • Reduce GHG emission intensity (Scope 1+2) by 40% compared to FY2019 by FY2030.
  • Launch CCS/CCUS hub and cluster model business by FY2030.
  • Achieve business profit target of ¥50.0 billion, ROE of 8%, and E&P vs. non-E&P profit composition of 5:5 by FY2030.
Short-term Goals:
  • Reduce GHG emission intensity (Scope 1+2) by 10% compared to FY2019 by FY2022.
  • Reduce domestic occupational injury frequency rate (10% lower than the average for the last three years) by FY2023.

Environmental Challenges

  • Fluctuations in crude oil and natural gas prices.
  • Rapid transition to a decarbonized society.
  • Declining volume of oil and gas reserves.
  • Decline in domestic natural gas production.
  • Resolution of issues related to CCS/CCUS operations to achieve early commercialization.
  • Decreasing energy demand due to declining population in Japan.
  • Intensifying competition in the Japanese market due to liberalization of electricity and gas businesses.
Mitigation Strategies
  • Shift to a business portfolio that is resilient against low crude oil prices (renewable energy, CCS/CCUS).
  • Pursue a low-carbon and decarbonized business portfolio.
  • Develop remaining production potential in Japan and acquire new interests overseas.
  • Procure LNG with competitiveness.
  • Expand the renewable energy business.
  • Decarbonize power generation and gas businesses.
  • Push ahead with technological and marketing endeavors for CCS/CCUS.
  • Expanding sales of natural gas by switching fuels.
  • Expanding the supply of energy with a low environmental impact.

Supply Chain Management

Responsible Procurement
  • CSR Procurement Policy

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather
  • Sea-level rise
  • Water resources depletion
Transition Risks
  • Policy and legal risks (carbon taxes)
  • Market and technology risks (weaker oil and gas demand)
Opportunities
  • CCS/CCUS
  • Renewable energy

Reporting Standards

Frameworks Used: GRI Standards, TCFD Recommendations

Certifications:

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 13 (Climate Action)

JAPEX's initiatives contribute to these goals through stable energy supply, development of new technologies (CCS/CCUS, renewable energy), and GHG emission reduction.

Sustainable Products & Innovation

  • Carbon-neutral LNG
  • CCS/CCUS

Awards & Recognition

  • Health & Productivity Management Outstanding Organization (6 years in a row)

Reporting Period: 2022-04 to 2023-03

Environmental Metrics

Total Carbon Emissions:0.251 million ton-CO2e/year (Scope 1+2)
Scope 3 Emissions:7,240 thousand tons-CO2
Total Energy Consumption:3,190 MWh/year
Water Consumption:47,310 m3/year
Waste Generated:48,266 tons/year
Carbon Intensity:3.56 ton-CO2/TJ (FY2022)

ESG Focus Areas

  • Stable energy supply
  • Establishment of carbon neutral (CN) business
  • Promotion of human resources (HR) development and diversity
  • Digital transformation (DX)

Environmental Achievements

  • Reduced GHG emission intensity by 11% compared to FY2019 (3.56 ton-CO2/TJ)
  • Achieved zero emissions in Scope 2 by purchasing non-fossil fuel certificates for approximately 27,000 tons-CO2 equivalent.
  • 29% reduction in overall Scope 3 emissions compared to the previous fiscal year, mainly due to the end of the Canadian Oil Sands Project.

Social Achievements

  • Percentage of female new-graduates hired: 33.3%
  • Percentage of male employees taking childcare leave: 58.9%
  • Rate of paid leave taken: 83.2%
  • Certified as one of the Health & Productivity Management Outstanding Organizations in 2023
  • Certified as a Sports Yell Company 2023.

Governance Achievements

  • Increased the number of outside directors (4→5), increased the number of female directors (1→2).
  • Linked part of officer compensation to company-wide climate change response objectives.
  • Conducted an evaluation of the effectiveness of the Board of Directors.

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero emissions by 2050
Medium-term Goals:
  • Reduce GHG emission intensity by 40% compared to FY2019 by FY2030
  • Number of female managers: 25 or more (by the end of FY2025)
  • Percentage of male employees taking childcare leave: 80% or more (by the end of FY2025)
  • Launch CCS/CCUS hub and cluster model business by FY2030
Short-term Goals:
  • Reduce GHG emission intensity to 3.42 ton-CO2/TJ by FY2023
  • LTIF: 0.00, TRIR: 0.86 by FY2023

Environmental Challenges

  • Geopolitical risks impacting oil and natural gas supply.
  • Declining domestic natural gas production.
  • Need to establish a robust corporate structure resilient against low crude oil prices.
  • Need to invest in new potential flagship projects to replace the two Canadian projects that were withdrawn from.
  • Trading below 1x PBR despite achieving a record high ROE of 16.9%.
Mitigation Strategies
  • Building a competitive LNG procurement portfolio with an appropriate mix of term and spot contracts.
  • Expanding the renewable energy business.
  • Launching CCS/CCUS model business by 2030.
  • Aggressively pursuing new acquisitions while appropriately managing risk by diversifying the regions and timing of investments, as well as asset types.
  • Quantitative analysis and comparisons with companies in the domestic energy sector and international oil majors to address the PBR issue.

Supply Chain Management

Responsible Procurement
  • Established the CSR procurement policy and CSR procurement guidelines

Climate-Related Risks & Opportunities

Physical Risks
  • Impacts on onshore and offshore facilities due to extreme changes in weather
  • Impacts of sea-level rise on onshore and offshore facilities and impacts of water resources depletion
Transition Risks
  • Policy and legal risks (carbon taxes)
  • Market and technology risks (weaker oil and gas demand)
  • Reputation risk
Opportunities
  • Development of CCS/CCUS technologies
  • Expansion of renewable energy business

Reporting Standards

Frameworks Used: International Integrated Reporting Framework, TCFD Recommendations

Sustainable Products & Innovation

  • Carbon-neutral LNG
  • CCS/CCUS technologies

Awards & Recognition

  • Company of Remarkable Improvement in Disclosure (SAAJ)

Reporting Period: 2023-04 to 2024-03

Environmental Metrics

Total Carbon Emissions:8,598,000 tCO2e/year
Scope 1 Emissions:217,000 tCO2e/year
Scope 2 Emissions:20,000 tCO2e/year
Scope 3 Emissions:8,361,000 tCO2e/year
Water Consumption:46,713,000 m3/year
Waste Generated:47,631,000 tons/year
Carbon Intensity:3.38 ton-CO2/TJ

ESG Focus Areas

  • Stable energy supply
  • Establishment of Carbon Neutral (CN) business
  • Promotion of HR development and diversity
  • Digital transformation (DX)

Environmental Achievements

  • Reduced GHG emission intensity by 15% compared to FY2019
  • Achieved GHG emission intensity target (Scope 1 + 2) of 3.38 ton-CO2/TJ

Social Achievements

  • Selected for the 2024 Health & Productivity Stock Selection
  • Recognized as one of the “White 500 in Health and Productivity Management Outstanding Organizations”
  • Percentage of female new-graduates hired: 35.0%
  • Percentage of male employees taking childcare leave: 60.0%

Governance Achievements

  • Amended the Articles of Incorporation to enable the appointment of a Chairman of the Board of Directors other than the President
  • No incidents involving the violation of the Anti-Bribery Guidelines in fiscal 2023

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero emissions by 2050
Medium-term Goals:
  • Reduce GHG emission intensity by 40% compared to FY2019 by FY2030
  • Achieve business profit of ¥50.0 billion and an ROE of 8% in fiscal 2030
Short-term Goals:
  • Reduce GHG emission intensity to 3.26 ton-CO2/TJ by FY2024

Environmental Challenges

  • Fluctuations in crude oil and natural gas prices
  • Rapid transition to a decarbonized society
  • Declining volume of oil and gas reserves
  • Resolution of issues related to CCS/CCUS operations to achieve the early commercialization of these businesses in Japan
Mitigation Strategies
  • Shift to a business portfolio that is resilient against low crude oil prices
  • Pursue a low-carbon and decarbonized business portfolio
  • Develop remaining production potential in Japan
  • Acquire new interests overseas
  • Push ahead with both technological and marketing endeavors, including securing CO2 storage capacities, promoting cost reductions, and taking initiative in rule making

Supply Chain Management

Responsible Procurement
  • CSR procurement survey to suppliers

Climate-Related Risks & Opportunities

Physical Risks
  • Impacts on onshore and offshore facilities due to extreme changes in weather
  • Impacts of sea-level rise on onshore and offshore facilities and impacts of water resources depletion
Transition Risks
  • Increase in additional expenses due to carbon taxes and other environmental laws and regulations
  • Decrease in revenue due to weaker oil and gas demand and lower prices
Opportunities
  • Use CCS/CCUS along with other decarbonization technologies at our production sites
  • Implement and commercialize CCS/CCUS promptly
  • Participate in projects of LNG supply infrastructure development
  • Expand energy supply with low environmental impact and service areas through businesses such as commissioned projects that utilize existing infrastructure

Reporting Standards

Frameworks Used: TCFD Recommendations

Certifications: Kurumin certification, Eruboshi certification

Sustainable Products & Innovation

  • CCS/CCUS technologies

Awards & Recognition

  • 2024 Health & Productivity Stock Selection
  • White 500 in Health and Productivity Management Outstanding Organizations