Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Safety
• Health
• Energy Security

Environmental Achievements

• Reduced greenhouse gas emissions per unit of production in some areas, despite increased production.
• Implemented CO2 capture and storage (CCS) pilot project.
• Initiated mangrove reforestation project in Abu Dhabi.
• Received APPEA Environmental Award for minimizing environmental impact of land surveys.

Social Achievements

• Launched community investment programs in Azerbaijan and Georgia.
• Implemented various educational programs in Indonesia and UAE.
• Provided support for local communities near pipeline projects.
• Participated in the Extractive Industries Transparency Initiative (EITI).

Governance Achievements

• Established a corporate HSE committee to oversee health, safety, and environmental activities.
• Implemented a comprehensive internal control system.
• Strengthened compliance framework with a compliance committee and internal reporting system.

Climate Goals & Targets

Environmental Challenges

• Increased greenhouse gas emissions due to increased production.
• Challenges in managing environmental impact of large-scale LNG projects.
• Supply chain disruptions and risks associated with operating in remote and challenging environments.
• Maintaining stakeholder relations in diverse geographical areas.

Mitigation Strategies

• Implementing energy efficiency measures and decommissioning old oil and gas fields.
• Developing and implementing CO2 capture and storage technologies.
• Investing in environmental protection programs and community engagement initiatives.
• Strengthening HSE management systems and conducting regular safety training.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Implementation of procurement ethics guidelines.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of low-carbon energy sources such as natural gas and next-generation fuels.

Reporting Standards

Frameworks Used: GRI G3

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• APPEA Environmental Award (2007)

Environmental Metrics

ESG Focus Areas

• HSE (Health, Safety, Environment)
• Community Relations in Oil & Gas Producing Countries
• Stakeholder Engagement
• Compliance
• Governance

Environmental Achievements

• Reduced GHG emissions by 23,000 tons-CO2 compared to 2007
• Reduced VOC emissions by approximately 150 tons compared to 2007
• Reduced benzene emissions by 9 tons (37%) compared to the previous year
• Recycled 84% of drilling cuttings and waste water in domestic operations (approximately 29,000 tons)
• Implemented various measures to reduce GHG emissions, VOC emissions, and PRTR substances emissions

Social Achievements

• Supported various community development programs in Azerbaijan, Georgia, and Turkey (approximately $6.09 million)
• Implemented a water supply program in Venezuela
• Supported education and cultural exchange programs in various countries
• Provided aid to disaster-stricken areas (e.g., Australia bushfires)
• Donated used uniforms to Mali

Governance Achievements

• Established a Compliance Committee
• Developed a new compliance manual
• Implemented an internal reporting (helpline) system
• Established a corporate HSE committee
• Implemented a new internal control system compliant with the Financial Instruments and Exchange Act

Climate Goals & Targets

Environmental Challenges

• A fatal accident at a domestic pipeline construction site
• Data collection challenges for overseas operations
• Insufficient human error countermeasures
• Oil spill incidents in Egypt
• Soil contamination at a former oil production base

Mitigation Strategies

• Review and strengthening of outsourcing work and HSE management systems
• Development of guidelines for data collection in overseas operations
• Strengthening of human error countermeasures
• Implementation of emergency measures and investigation of causes of oil spills
• Soil remediation work and investigation of contamination

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Procurement ethics guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and technologies (e.g., GTL, DME, CCS)

Reporting Standards

Frameworks Used: GRI Guidelines 2006

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• GTL, DME

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Health, Safety, and Environment (HSE)
• Community Relations
• Corporate Governance
• Compliance
• Human Resources Management
• Fair Trade
• Information Disclosure
• Climate Change

Environmental Achievements

• Reduced GHG emissions by 23,000 tons to 411,900 tons from the previous year in domestic operations. Reduced GHG emissions per unit of production below 2007 levels.
• Reduced VOC emissions by 150 tons in Japan from the previous year.
• Reduced benzene emissions by 90% since 2001.
• 84% of drilling and waste mud (29,000 tons) recycled in 2008.
• 67% (3,700 tons) of other industrial waste recycled in Japan.

Social Achievements

• Cultural exchange programs in Abu Dhabi and Indonesia.
• Social and economic improvement projects in Venezuela and UAE.
• Community relations programs in Japan and Australia.
• Donations to communities devastated by wildfires in Australia and to the Republic of Mali.
• Scholarship program for Indonesian and Japanese students.
• Participation in the Ecocap Movement.

Governance Achievements

• Established the HSE Management System.
• Established the Corporate HSE Committee.
• Updated the Compliance Manual.
• Established the Executive Officer System.
• Implemented an internal control reporting system.

Climate Goals & Targets

Environmental Challenges

• Incomplete and inaccurate environmental performance data from overseas operations.
• A fatal incident at a tunnel construction site in Japan.
• Insufficient countermeasures against human errors.
• Data collection and analysis system not fully developed in overseas project sites.
• Insufficient implementation of measures for mental health care and pandemic flu preparedness.

Mitigation Strategies

• Developing detailed guidelines for data collection.
• Reviewing and upgrading the HSE Management System for contractors.
• Developing countermeasures against human errors based on human factor engineering.
• Developing data collection and analysis system and providing technical assistance to Operational Organizations.
• Stepping up measures for mental health care and pandemic flu preparedness in 2009.

Supply Chain Management

Responsible Procurement

• Guidelines for Fair Business Conduct with Suppliers and Contractors
• Procedure for Handling Procurement

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products
• Development of GTL and DME technologies
• Carbon capture and storage (CCS) technology

Reporting Standards

Frameworks Used: GRI G3

Sustainable Products & Innovation

• GTL (gas-to-liquids) technology
• DME (dimethyl ether) technology

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Protection
• Health and Safety
• Community Development
• Human Resources
• Governance
• Supply Chain Management

Environmental Achievements

• Reduced GHG emissions per unit of production in Japan to 20% below 1990 levels (meeting JPDA Voluntary Action Plan target).
• Reduced VOC emissions by approximately four tons compared to the previous fiscal year.
• Completed biopile remediation of soil contaminated in a 2005 incident.
• INPEX Browse Ltd. received the 2009 APPEA Environment Award for low-environmental-impact survey methods.

Social Achievements

• Implemented various programs to support employees' work-life balance, including childcare leave and reduced working hours.
• Donated US$500,000 to Indonesian Red Cross for earthquake relief.
• Donated AU$2.28 million to build a vocational school in Darwin, Australia.
• Engaged in community investment programs (CIP) along the BTC Pipeline route, spending US$4.38 million in Azerbaijan, Georgia, and Turkey.

Governance Achievements

• Established a Compliance Committee to ensure consistent compliance throughout the Group.
• Implemented an internal control system for financial reporting, receiving an unqualified opinion from an independent auditor.
• Conducted compliance training sessions for officers and employees.

Climate Goals & Targets

Environmental Challenges

• Reducing greenhouse gas emissions while increasing natural gas production.
• Managing soil and air contamination risks.
• Ensuring safe operations and preventing work-related incidents, particularly among contractors.
• Maintaining a stable and flexible supply of natural gas.
• Ensuring fair and responsible procurement practices, especially for large-scale projects.

Mitigation Strategies

• Implementing energy-efficient systems, using natural gas as fuel, exploring CO2 capture and storage technologies.
• Formulating voluntary guidelines for soil contamination surveys and prevention.
• Implementing HSE Management System, conducting HSE audits, providing HSE training, and working with contractors to improve their HSE management.
• Increasing natural gas production capacity, diversifying sources, and upgrading underground storage facilities.
• Establishing Guidelines for Fair Business Conduct with Suppliers and Contractors, and implementing transparent procurement practices.

Supply Chain Management

Responsible Procurement

• Guidelines for Fair Business Conduct with Suppliers and Contractors; evaluation of suppliers' environmental and social responsibility.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products and technologies; CO2 capture and storage.

Reporting Standards

Frameworks Used: GRI G3

Certifications: ISO 14001 (Nagaoka Field Office)

Awards & Recognition

• 2009 APPEA Environment Award

Environmental Metrics

ESG Focus Areas

• Health, Safety, and Environment (HSE)
• Corporate Social Responsibility (CSR)
• Corporate Governance

Environmental Achievements

• Monitored business activities' environmental impact and reduced emissions of VOCs and PRTR substances.
• Research and development for photocatalytic reactions generating methane from CO2 and water.
• Active in CCS technology for CO2 capture and storage.

Social Achievements

• Supported greenhouse agriculture in Azerbaijan.
• Repaired elementary schools in Venezuela.
• Participated in reforestation projects in Niigata Prefecture, Japan.
• Supported local community events in Japan (Nagaoka Festival Fireworks Show, Kashiwazaki marathon, Gion Kashiwazaki Festival).

Governance Achievements

• Established a Compliance Committee and internal notification system.
• Conducted compliance training seminars.
• Implemented an Executive Officer System to improve decision-making speed and efficiency.
• Appointed outside directors and auditors to ensure independent oversight.

Climate Goals & Targets

Environmental Challenges

• Marine blowouts and related risks (following the Deepwater Horizon oil spill).

Mitigation Strategies

• Reviewed and implemented reforms for selecting drilling contractors, HSE management, design standards for drilling wells, and oil leak prevention/response plans.
• Strengthened HSE-related communications through process meetings with contractors and pre-work meetings.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO 9000, ISO 14001, OHSAS 18001

Environmental Metrics

ESG Focus Areas

• Sustainability
• Corporate Governance
• Human Capital
• Health, Safety, and Environment (HSE)

Environmental Achievements

• Not disclosed

Social Achievements

• Achieved a 4.2% proportion of women in management roles, exceeding the target of 3%
• Promoting mental and physical well-being and work-life balance
• Received gold certification in PRIDE Index 2022 for LGBT+ inclusivity

Governance Achievements

• Complies with all principles of the Corporate Governance Code
• Regularly evaluates the effectiveness of the Board of Directors
• Established Nomination and Compensation Advisory Committee

Climate Goals & Targets

Environmental Challenges

• Enhance discussions regarding strategies
• Further revitalize discussion at Board of Directors meetings
• Deeper discussions regarding the desired state of the Board of Directors
• Ongoing reinforcement of portfolio management

Mitigation Strategies

• Implementation of pre-meeting briefings for non-Executive Officers
• Enhancement of explanation of background information in discussion of new matters
• Implementation of a lecture and opinion exchange meeting for the Board of Directors by external experts

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO 9001, ISO 14001, ISO 45001, PRIDE Index 2022 (Gold)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Health & Safety
• Environment
• Local Communities
• Respect for Human Rights
• Human Capital

Environmental Achievements

• Achieved net carbon intensity of 28 kg-CO2e/boe in FY2023
• Achieved methane emissions intensity (methane emissions/natural gas production) of 0.05%
• Continued to achieve a CDP Climate Change A- score
• Reached cumulative total of 1,000 cargo shipments for all products at Ichthys LNG Project

Social Achievements

• Invested approximately 4.4 billion yen in social contribution initiatives
• Developed and started to execute Reconciliation Action Plan (RAP) 2023–2025 in Australia
• Directly employed 52 Aboriginal and/or Torres Strait Islander people in Australia
• Procured more than A$ 8.2 million of goods/services from 16 Aboriginal and/or Torres Strait Islander businesses in Australia

Governance Achievements

• Enhanced the corporate governance structure through appropriate operation of the Board of Directors
• Appoint an Outside Director as the Chairman of the Nomination and Compensation Advisory Committee to strengthen the independence of the Committee
• Responded to revisions of the Companies Act and the Corporate Governance Code, and to Tokyo Stock Exchange reforms

Climate Goals & Targets

Environmental Challenges

• Risk of fluctuations in crude oil prices, natural gas prices, foreign exchange and interest rates
• Climate change risk
• Country risks, etc.
• Risk of disasters, accidents, system failures, etc.
• Risk of failure in exploration, development or production
• Risk of fossil fuel-related assets becoming stranded
• Uncertainty regarding the company’s outlook for enhanced shareholder returns

Mitigation Strategies

• Implement management that is conscious of cost of capital and stock price
• Improve capital efficiency and maintain a level exceeding our weighted average cost of capital (WACC)
• Capitalize on the medium- to long-term LNG demand expansion
• Clearly set forth the potential of the clean energy field
• Increase shareholder returns
• Introduce CCS into LNG projects to mitigate emissions
• Developing renewable energy, hydrogen, ammonia, and other clean energy sources

Supply Chain Management

Supplier Audits: Self-assessment surveys (including questions on human rights and ABC measures) by major domestic suppliers and contractors; CSR audit to suppliers (paper and on-site audits)

Responsible Procurement

• Supplier Code of Conduct Guidelines

Climate-Related Risks & Opportunities

Transition Risks

• Risk of fossil fuel-related assets becoming stranded
• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Growth opportunities in clean energy

Reporting Standards

Frameworks Used: International Integrated Reporting Framework, Guidance for Collaborative Value Creation (METI), TCFD

Sustainable Products & Innovation

• Blue hydrogen
• Blue ammonia
• e-methane (synthetic methane)
• Renewable diesel

Awards & Recognition

• Yearbook Member in the S&P Global Sustainability Award 2024
• Environmental Sustainability and Progress in the Ministry of Environment’s ESG Finance Awards Japan