CSR Action Plan Targets and Achievements (Fiscal 2022 ‐ 2023)
The JAPEX GroupFive Core CSR Themes“SHINE”

JAPEX Core
CSR themes

S

Stable and sustainable energy supply

H

HSE as our culture

IIntegrity and governanceN

Being a good Neighbor

EThe Employer of choice

Challenges

Stable energy supply
Materiality

Establishment of CN business
Promotion of HR development and diversity

Digital transformation (DX)

Fiscal 2022 Action Plans and Targets
Promote E&P business for stable supply of oil and natural gas

Fiscal 2022 Achievements
・ May 2022: Acquired the well interest in southern Texas (Eagle Ford Shale) and southern Oklahoma (Woodford Shale),USA.
・ Continued measures toward achieving 230,000 barrels per day at Garraf Oil Field in Iraq.

Fiscal 2023 Action Plans and Targets● Promote E&P business for stable supply of oil and natural gas

Materiality
Stable energy supply

・ Progress in crude oil and natural gas development project in Seagull Block in the British North Sea.
・ Addressed energy demand in Eastern Java, Indonesia.
・ Implemented additional development project in Japan (Katakai Gas Field, etc.).
Stable energy

Promote I/U business for stable supply of natural gas and electricity

・ Electric power sold: 3.0 billion kWh
・ Occurrence of an incident affecting gas transportation quality. Considered recurrence prevention measures and ensured itssupply● Promote I/U business for stable supply of natural gas and electricity

thorough implementation.
Promote DX based on business challenges

・ Analyzed current status to identify major business issues across the company, including operations. Implemented thefollowing measures:-Implementation of a system necessary for operation and energy intensity management.

-Introduction of predictive maintenance using AI in production facilities.

-Implementation of 3D visualization tools at plants.

Promote technology development for early commercializing of Carbon dioxide Capture ・ Evaluated underground storage of CO2, including existing oil and gas fields, and studied suitable sites, well specifications,and Storage (CCS)/Carbon dioxide Capture, Utilization, and Storage (CCUS)

monitoring methods, and storage costs.

● Promote DX based on business challenges● Promote technology development for early commercializing of CCS/CCUS

DXEstablishment of CNbusiness・ Received the “Best Presentation Award” from the Japanese Formation Evaluation Society for its integrated mineralquantification technique for volcanic reservoirs that contributes to identification of the properties of volcanic reservoir
formations. A significant contribution not only in the field of oil and natural gas development, but also in other fields
including CCS business.
Continue to develop technology for Onnagawa Formation in Ayukawa Oil Field
Developmentof newS

technologies

・ Applied and adopted as a business operator of the "Joint Study for Acid Stimulation in Onnagawa Tight Oil Formation"

through joint research with Japan Oil, Gas and Metals National Corporation(Subject: Acid stimulation demonstration test at the Onnagawa tight oil formation to increase oil production and to recover(JOGMEC). Expand into Akita tight oil and other tight reservoir development in Japan.

more reserves), one of the publicly solicited projects in FY2022 led by JOGMEC.

Continue efforts toward commercialization of methane hydrate

・ Executed according to the plan, a marine survey allocated for FY2022 aiming for the next offshore production test,
through Japan Methane Hydrate Operating Co., Ltd.

Continue efforts to develop deep sea mineral resources through J-MARES

・ Conducted demonstration tests for the practical application of deep-sea survey technology, production systems andenvironmental survey technology, through J-MARES.

● Continue to develop technology for Onnagawa Formation in Ayukawa Oil Field

through joint research with JOGMEC. Expand into Akita tight oil and other tightreservoir development in Japan● Continue efforts toward commercialization of methane hydrate● Continue efforts to develop deep sea mineral resources through new Horizon Ocean

Research & Technology Co.,Ltd.

* J-MARES was dissolved at the end of March 2023. 2023 and beyond, continue

Stable andefforts to develop deep sea mineral resources through new Horizon Ocean Researchsustainable& Technology Co., Ltd.

energy supply

Promote CCS/CCUS commercialization studies in Japan and overseas

・ Overseas-Continued implementation of feasibility studies for realization of CCS/CCUS projects in emerging countries.

● Promote CCS/CCUS commercialization studies in Japan and overseas

Establishment of CN

・ Domestic-May 2022: Conducted a feasibility study for a hub and cluster type CCUS project at the Niigata East Port area.

-December 2022: Invested in a specialized fund, the “ANRI-GREEN No.1,” for the issues of climate change andenvironment.

-January 2023: Idemitsu Kosan, Hokkaido Electric Power, and JAPEX initiated a joint study for implementation of CCUS
in the Tomakomai Area of Hokkaido.

・ Established CN Business Promotion Committee. The committee was held 12 times.

Climate change
responseAchieve our GHG emission reduction targets

・ GHG emission intensity: 3.56 t-CO2/TJ (11% reduction)

・ Achieve our GHG emission intensity targets (Scope1+2) based on the JAPEX2050

・ GHG emissions at the sites in scope of the Japan Petroleum Development Association target increased by 30,000 t-CO2● Achieve our GHG emission reduction targets

・Achieve our GHG emission intensity targets (Scope1+2) based on the JAPEX2050- FY2019 result: 3.97 t-CO2/TJ (base year)(about 20%) from the previous fiscal year due to emissions resulting from malfunctioning production facilities. On the- FY2019 result: 3.97 t-CO2/TJ- FY2022 target: 3.58 t-CO2/TJ (10% reduction)other hand, for the Japan Petroleum Development Association's target "reducing emission by 40% in FY2030 from the- FY2023 target: 3.42 t-CO2/TJ (14％ reduction)- FY2030 target: 2.38 t-CO2/TJ (40％ reduction)
・ Reduce emissions to achieve the 2030 GHG emission reduction target set by thebase year (FY2013)," it was reduced by 18,000 t-CO2 (about 9%) from the base year.

- FY2030 target: 2.38 t-CO2/TJ (40％ reduction)
・Reduce emissions to achieve the 2030 GHG emission reduction target set by theJapan Petroleum Development Association based on the Nippon Keidanren Carbon

Japan Petroleum Development Association based on the Nippon Keidanren Carbon

Neutrality Action Plan

Neutrality Action Plan

Promote efforts to commercialize renewable energy power generation businesses

・ October 2022: Abashiri Biomass 2nd Power Plant started commercial operation.

(biomass, offshore wind power, etc.)

・ March 2023: Abashiri Biomass 3rd Power Plant started commercial operation.

● Scale up the renewable energy business・ March 2023: Established "Commitment Regarding Handling of Forest Certified Products in Supply of the Biomass Fuel,"
and obtained the CoC certification under FSC and PEFC, the international forest certification systems.
Contribute to a low-carbon society by promoting the use of natural gas

・ Expanded use of natural gas through solution sales for fuel conversion (from other fuels to natural gas) and introduction ofcogeneration systems, etc.

● Contribute to a low-carbon society by promoting the use of natural gas

1

JAPEX CoreCSR themes

Occupationaloccupational accident rate (Average rate -10% over the last three years)

・ TRIR: 1.39

health and- Lost Time Injury Frequency (LTIF): 0.09

- LTIF: 0.00

safety- Total Recordable Injury Rate (TRIR): 0.88

- TRIR: 0.86 (10% lower than the average for the last three years)

Continue water stress assessments in our operating areas

・ VOC emissions decreased by about 1% compared to the previous fiscal year and decreased by about 37% compared tothe base year due to control of atmospheric emissions at production mines.
・ Conducted water risk assessment for areas where development and production sites operating as operators are located.
Confirmed that there are no operational sites in areas of high water stress.

Pollution

Promote efforts to reduce water consumption

resource recycling

Promote efforts to reduce waste

・ Conducted an assessment of the current status of waste volume in terms of recycling rates by vendor and volume by*cultureContinue to earn the Blue ranking in the Performance Level Evaluation Program

biodiversity andecosystems

Continue efforts to reduce negative impact at operating sites and surrounding areas● Promote efforts to reduce waste● Continue efforts for KEI to earn the Blue ranking in PROPER

・ Continued monitoring of mangrove forests planted in 2019 for environmental protection around Pagerungan Island,● Continue efforts to create a positive impact in protected areas

・ In anticipation of the final disclosure of the TNFD framework in 2023, implemented external trend assessment in order tostart risk analysis related to biodiversity and ecosystem conservation.

Strengthen our corporate governance system● Promote efforts to reduce water consumption

・ Maintained earning the Blue ranking by continuing environmental activities.

Indonesia.

Preservingbase year (FY2000)

Waste volume is disclosed in ESG Performance Data.

(PROPER) of the Indonesian Ministry of Environment by KEI
Continue efforts to create a positive impact in protected areas● Continue efforts to maintain a 45% reduction in VOC emissions compared to theWater consumptions are disclosed in ESG Performance Data.

location and by type.

ouroccupational accident rate

・ Collected and monitored data on water consumption and conducted study to reduce water consumption.
*prevention andMateriality● Promote efforts based on the Medium-term HSE Plan and reduce the domestic and・ LTIF: 0.84

emissions compared to the base year (FY2000)

HSE asFiscal 2023 Action Plans and Targets

Promote efforts based on the Medium-term HSE Plan and reduce the domestic andContinue efforts to maintain a 45% reduction in Volatile Organic Compounds (VOC)H

Fiscal 2022 Achievements

Fiscal 2022 Action Plans and TargetsChallenges

・ Conducted evaluation of the effectiveness of the Board of Directors.
・ Linked part of officer compensation to company-wide climate change response objectives.

● Continue efforts to reduce negative impact at operating sites and surrounding areas● Strengthen our corporate governance system

・ Promoted diversity in the Board of Directors: Increased the number of Outside Directors (4→5); increased the number offemale Directors (1→2).
Governance

Promote company-wide risk management

・ Held Risk Management Committee in each quarter. In this committee, the management monitored the implementation
status of the projects across the board and quantitatively assessed and evaluated individual risks. Conducted reviews to● Promote company-wide risk management

utilize knowledge and lessons learned in future investment decisions.
Strengthen information security and promote personal information protection

・ Serious information security incident: 0・ Conducted awareness-raising activities for employees regarding personal information protection.

Continue to strengthen the Business Continuity Plan (BCP)

disaster prevention, disaster prevention education for general employees, and dissemination of disaster prevention

IIntegrityand・ Awareness-raising and educational activities on disaster prevention: Company-wide lectures by external authorities on
information using the JAPEX's IT platform.

● Strengthen information security and promote personal information protection● Continue to strengthen the Business Continuity Plan (BCP)- Maintain and enhance disaster prevention capabilities (Improvement andenhancement of emergency response capabilities)

・ Emergency drills: Continued conducting drills in cooperation between Head Office and district sites and between districtsites and subsidiaries and associates, and at each district site.
Implement measures against COVID-19Crisis

・ Established the Emergency Response Headquarters as a countermeasure against infectious diseases. Implementedmeasures such as taking body temperature every morning, washing hands on a daily basis, disinfecting, and calling tomanagement

avoid the three Cs. Upon confirmation of a person with positive reaction, implemented measures to prevent the spread ofinfection, such as identifying and contacting those subject to travel restrictions and period thereof.

governance
Strengthen cyber security response

・ Cyber security education for control systems: 100 % participation rate.

● Strengthen cyber security

Continue overseas security response

・ Formulated JAPEX's guidelines for facility security as part of physical security.

● Continue overseas security response

・ Inadequate response to overseas security incidents: 0Compliance

Ensure compliance・ With in-house training and other efforts, the number of cases of both insider trading and bribery: 0● Ensure compliance

Promote efforts to respect human rights

・ Disclosed the UK Modern Slavery Act Statement.

● Promote efforts to respect human rights

・ Established human rights policy.
・ Conducted human rights due diligence.
・ Conducted questionnaires on harassment (twice a year). The percentage of those who feel they have been harassed
decreased compared to the previous year.

2JAPEX Core
CSR themes

Fiscal 2022 Action Plans and Targets

Challenges

Make contributions to local communities and engage in social activities in ourdomestic and overseas operating areas

Fiscal 2022 Achievements
・ Overseas project
Garraf (Iraq)-Construction and repair of facilities at schools and educational facilities.

-Education campaign in elementary schools.

-Distribution of food items for local events.

-Donation of facilities and equipment to medical institutions.

Fiscal 2023 Action Plans and Targets

Materiality● Make contributions to local communities and engage in social activities in ourdomestic and overseas operating areas

Kangean (Indonesia)-N
Being aImplemented the following as planned: measures related to COVID-19, donations of scholarship to high schools,
support for fisheries, agriculture and small and medium enterprises, and infrastructure improvements such as mosquerenovations.
・ Domestic operating area
-Growingsite tours for local entities concerned, participation in local events, ensuring the safety of schoolchildren, andtogether with

continuation of volunteer stand guard, etc.

stakeholders
Promote supply chain management

goodClean-up of roads around sites, participation in volunteer clean-up activities, support for advertisements, donations,・ Established the CSR procurement policy and CSR procurement guidelines. Disseminated them to existing suppliers.
Conducted a CSR procurement survey to suppliers.

Neighbor● Promote supply chain management

・ Ensured and created a fair trading and competitive environment.
Promote constructive dialogue with stakeholders

・ Provided information to the Tokyo Stock Exchange and the press in timely and appropriate manner. Produced anddistributed publications.

● Promote constructive dialogue with stakeholders

・ Maintained and created opportunities for dialogue, including IR site tours for securities analysts and institutional investors
and IR briefings for individual investors.
・ Selected as a “Company of Remarkable Improvement in Disclosure” of the “Selection for Excellence in CorporateDisclosure.”
Promote Diversity, Equity & Inclusion (DE&I)

・ Rate of female new graduates: 33.3%

Achieve targets based on the DE&I Policy

・ Rate of mid-career hires to total hires: 52.1%● Promote DE&I

Achieve targets based on the DE&I policy- Rate of female new graduates: 30% or more・ Number of female managers: 18- Rate of female new graduates: 30% or more

- Rate of mid-career hires to total hires: 50% or more・ Rate of mid-career hires in management positions: 25.9%- Rate of mid-career hires to total hires: 50% or more

- Number of female managers: 25 persons or more (Target year: end of・ Rate of male employees obtaining childcare leave: 58.9%- Number of female managers: 25 persons or more (Target year: end ofFY2025)

FY2025)- Rate of mid-career hires in management positions: Maintain at least 20%- Rate of mid-career hires in management positions: Maintain at least 20%(Target year: end of FY2025)(Target year: end of FY2025)- Rate of male employees obtaining childcare leave: 80% or more (Target year:- Rate of male employees obtaining childcare leave: 80% or more (Target year:end of FY2025)

end of FY2025)

Strengthen human capital management
Promotion of HR
development anddiversity

・ Started reskilling and skilling programs.
-Started DX literacy education.

-Established a learning platform as JAPEX UNIVERSITY.

-Started M&A and other specialized skilling education.

*Reskilling Program: An initiative to have people study for the purpose of acquiring skills and knowledge that will be● Strengthen human capital management- Promote reskilling and skilling programs (Promote DX education, make use of

Promotion of HR
development and diversity

Promotion of HR
development and diversity

the learning platform as JAPEX UNIVERSITY, etc.)

useful in new tasks that will arise in the future due to changes in the work styles. Intention of introducing thisEprogram is to develop and deploy autonomous human resources who can respond to various business fields.
Implement human resource development training programs

The・ Implemented measures to support career development.
-Established a career consultation desk.

-

Implemented a talent management system.

-Expanded number of departments applicable to internal personnel recruitment.

・ Conducted personnel trainings including career stage training and unconscious bias training.

Employer・ Conducted professional education for technical employees (40 times a year).

of choice・ In FY2022, conducted a training for developing commercial human resource as a practical training on economic modelingand legal affairs for English contracts, planned and prepared in FY2021.
Promote an employee-friendly workplace・ Actual usage rate of paid leaves: 83.2％ (up 1.7% year-on-year).
・ Started personnel system reform and measures for employee engagement.

Promote health management
Creating a fairand goodworkingenvironment

・ Continued to have 100% employees receiving regular medical checkups.
・ The number of people with BMI within the standard value range decreased by 1.1% compared to the previous year.

● Promote an employee-friendly workplace● Promote health management

Promotion of HR
development and diversity;
DX・ Conducted a survey on women's health, and held seminars on women's specific cancers, which was selected as important
item, and enabled receiving cancer screenings during working hours.
・ Certified as one of the Health & Productivity Management Outstanding Organizations in 2023.
・ Certified as one of the Sports Yell Company 2023.
● Make consideration on side jobs/second jobs
● Improve office environment

DX3