Human Rights Due Diligence

Since FY2016, INPEX has been conducting human rights due diligence with the assistance of outside human rights experts at its sites in Japan and overseas to enhance its human rights management. This due diligence is carried out in line with the INPEX Group Human Rights Policy, and covers both projects where we serve as operator and projects where we participate as non-operator. This includes joint venture projects in which we participate. We also cover suppliers with significant monetary impacts, based on the human rights risks associated with our business activities. When entering new projects, we also assess human rights risks through the INPEX Value Assurance System (IVAS) Committee.

In FY2024, with the cooperation of external experts, we conducted an assessment of human rights risks across our entire value chain, expanding the scope to include both our oil and gas business and our renewable energy business.

We identified human rights issues by reviewing the documents of survey institutions such as the Sustainability Accounting Standards Board (SASB) and the Organization for Economic Co-operation and Development (OECD), international norms, various guidelines, and industry-related literature. When identifying risks across our businesses, our scope covered stakeholders who may be affected along our value chain, from exploration and appraisal, development preparation and development, production, to transportation and sales. These stakeholders include our employees, women, children, indigenous peoples, migrant workers, the employees of suppliers and contractors, and local communities.

Regarding the human rights issues identified through our desktop assessment, we conducted human rights risk assessments to identify the issues (especially salient human rights issues) that need to be handled as a priority.

We conducted human rights risk assessments along the two axes of severity and likelihood for the human rights issues identified through our desktop assessment. We also used the knowledge of external experts in our assessments.

We assessed the severity of cases related to human rights issues based on the following three items:

We assessed likelihood based on country- and sector-specific risks (risk assessment based on external data), frequency taking into consideration the past occurrences related to human rights issues, and the vulnerability of management systems management system

We conducted a survey on the vulnerability of management systems management systemand past occurrences related to each human rights issue and used the results to assess human rights risks.

The survey was conducted for the following entities in our business:

For each surveyed entity, we obtained responses regarding the state of their management system for addressing human rights issues we identified, and assessed the vulnerability of that management system. We used the results to assess human rights risks as factors for consideration in assessing likelihood.

For each surveyed entity, we reviewed whether there had been any actual occurrences of human rights violations related to the identified human rights issues.
If such cases existed, we used them to inform human rights risks as factors for consideration in assessing severity and likelihood, after taking into account their details and the adequacy of response measures.

Based on the assessment of actual and potential human rights risks across our value chain, the following human rights issues have been identified as salient human rights issues requiring priority attention.

We also investigated other areas of human rights risks—such as prohibition of discrimination and equality under the law, working hours, human trafficking, equal pay for equal work, women's rights, and privacy—through our risk identification and assessment process. Considering geographical and other characteristics of our business operations, and the risk management already conducted, these areas were not deemed to be our salient human rights risks.

Based on the above human rights risk assessment results, we will implement the following initiatives to address identified human rights risks.

For salient human rights issues identified as a result of risk assessments, we identified the issues to be prioritized and considered mitigation measures, after considering the materiality and the state of management system at each survey entity.

In FY2025, we confirmed two major incidents caused by on-site work. In response, we provided appropriate remedy to affected stakeholders and implemented corrective actions at the project level to address the identified issues. In addition, we introduced preventive measures, including strengthening site-level management and controls, to mitigate the risk of recurrence.
We will continue to conduct ongoing monitoring.

For human rights issues with potential risks, we work to strengthen prevention measures, taking into consideration the materiality and the state of management system at each survey target.

We will continue to conduct ongoing monitoring and further strengthen our human rights risk management processes based on our human rights due diligence.