Corporate Position
on Climate Change
March 25, 2022

Introduction
INPEX has revised its “Corporate Position on Climate Change*1” based on its “INPEX Vision @2022*2” announced
on February 9th, 2022.
This paper outlines
INPEX’s position and initiatives concerning the key themes listed to provide stakeholders with2
a better understanding of how the company is responding to the challenges of climate change.

1. Basic Management Policy Towards a Net Zero Carbon Society by 2050
2. Climate Change Goals

3. Initiatives in the 5 Net Zero Businesses
3-1. Develop a Hydrogen Business
3-2. Promote CCUS *3
3-3. Enhance and Emphasize Renewable
Energy Initiatives

3-4. Promote Carbon Recycling andCultivate New Business Opportunities
3-5. Promote Forest Conservation

4. Towards a Cleaner Upstream Business and Implementation of a Shift to Natural Gas
For more information on the company’s initiatives relating to sustainability including Climate Change
response, please refer to our Sustainability Report*4.
*1：This document is a provisional English translation of the “Corporate Position on Climate Change”.
If any ambiguity of interpretation is found in this provisional translation, the Japanese text shall prevail.
*2：https://www.inpex.co.jp/english/company/pdf/inpex_vision_2022.pdf*3：Carbon dioxide Capture, Utilization and Storage*4：https://www.inpex.co.jp/english/csr/csr/
Copyright© INPEX CORPORATION. All rights reserved.

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Basic Policy on Management
Towards a Net Zero Carbon Society by 2050

1

INPEX will proactively engage in energy structure reforms towards the realization of a net zero carbon society
by 2050, while responding to the growing energy demands of Japan and the world and fulfilling its
responsibility for the development and stable supply of energy over the long-term.

2The company will set climate change response goals to achieve its own net zero carbon emissions by 2050, tocontribute to the realization of the Paris Agreement objectives in relation to climate change.

3INPEX will expand 5 net zero businesses at an accelerated pace through the following three initiatives, in order
to offer solutions responding to the needs of society and become recognized as a credible key player.
ReduceCO2 emissions
from upstream
operations(CCUS)

1. Leverage the company’s strengths (knowledge and experience)
INPEX will make the most of its strengths such as its management, technical and operational
experience gained in Japan and around the world to select business targets and apply its
management resources including human resources, finances and business knowledge.

2. Strengthen collaboration with industry, academia and government
Responding to changing times requires innovation and the realization of new business models.
INPEX will promote long-term ties and collaboration with industry, academia and government in a
broad spectrum of business fields.
3. Utilize policy support measures
The company will collaborate on the improvement of policy frameworks and promote rapid andefficient initiatives making use of policy incentives.
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Enhance andemphasize
renewableenergyinitiatives

Becominga Pioneer ofEnergy
Transformation

Promotecarbon recycling
and cultivate newbusiness opportunities

Develop ahydrogenbusiness

Promoteforestconservation2

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Climate Change Goals⚫ INPEX has set its own goals to contribute to realizing a net zero carbon society as outlined in the Paris Agreement.

2050

2030

Scope 3NET ZERO*1

30% OR MORE*2

REDUCTION

in absolute emissions(Scope 1+2)

reduction of net carbon intensity(Scope 1+2)

*1: on INPEX equity share basis*2: in comparison with 2019

work together withall relevant stakeholders toaddress challenges
across the value chains

TO ACHIEVE THESE GOALS INPEX WILL…
Promote CCUS;
Strengthen renewable energy initiatives;
Promote forest conservation for CO2 absorption;
Maintain current low methane emissions intensity of approximately 0.1% *3 (calculated by methane emissions/ natural gas production); andAim to eliminate routine flaring by 2030.*3*3: in INPEX-operated projectsPROMOTE THE ONGOING DISCLOSURE OF CLIMATE-RELATED INFORMATION IN LINE WITH TCFD RECOMMENDATIONS.

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33 Initiatives in the 5 net zero businesses
3-1. Develop a Hydrogen Business⚫ Commercialize 3 or more projects by around 2030 and aim to produce and supply 100 thousand tons or more ofhydrogen/ammonia per year

3-2. Promote CCUS
⚫ Aim to become a leading company in the CCUS business by targeting an annual CO₂ injection volume of 2.5
million tons or more in around 2030 and promoting technical development and commercialization

3-3. Enhance and Emphasize Renewable Energy Initiatives⚫ Aim to secure 1-2 gigawatts of installed capacity, mainly in the offshore wind and geothermal power generation
business, and become a key player by accelerating business expansion using assets acquired through M&A and othermeans as a platform

3-4. Promote Carbon Recycling and Cultivate New Business Opportunities⚫ Promote the adoption of methanation in society and aim to supply about 60 thousand tons* of synthetic methane
per year through INPEX’s natural gas trunk pipeline network by 2030 while pursuing further development*Equivalent to approx. 200 thousand households

3-5. Promote Forest Conservation⚫ Strengthen and expand projects aimed at CO₂ absorption through forest conservation, from supportive measures
to project participation
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44Towards a Cleaner Upstream Business andImplementation of a Shift to Natural Gas
4. Towards a Cleaner Upstream Business and Implementation of a Shift to Natural Gas⚫ Aim to achieve zero routine flaring by 2030 and thoroughly make projects cleaner by introducing CCUS,
utilizing forest credits, introducing electricity based on renewables and saving energy.

⚫ Raise the gas investment ratio from the current level of around 50% to around 70% to increase the gas ratioof the portfolio.
⚫ For the natural gas development business, consider feedstock supply for hydrogen and ammonia projects andbusiness transformation opportunities.

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INPEX’s Current Initiatives
March,28,20246

1 | Vision for around 2030
Medium-termbusiness plan period

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Around 2030

Invest up to about 1 trillion JPY in the 5 net zerobusinesses and aim for these businesses to generate
about 10% of operating cash flow by 2030

2050

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2 | Climate change targets (1)▶Net carbon intensity◆ Our net carbon intensity (provisional figure) in 2023 was 29kg-CO2e boe. ※1◆ Aim to reduce 10% (4.1kg/boe) or more over a 3-year period towards our 2030 target. ※2▶Scope 1+2+3◆ Scope 1+2 : Reduction GHG emission towards net zero target by initiatives such as making the oil and natural gas
business cleaner with CCUS, hydrogen and ammonia, renewable energy, etc., and complemented offset by forest
conservation and afforestation.
◆ Scope 3 : Reducing our Scope 3 emissions by cooperating with all our stakeholders on the supply chain throughproducing clean energy, implementing natural gas shift, methanation and promoting carbon-neutral LNG and gas
to customers.
▶Methane emissions intensity◆ Our methane emissions intensity (provisional figure) in 2023 was 0.05%. Aim to maintain the current low
methane emissions intensity.
▶Eliminating routine flaring◆ At each project, accelerate efforts to make the business cleaner through continued flare reduction measures, etc.
*1 barrels of oil equivalent*2 Reduction of 2019 net carbon intensity (41.1kg/boe) by over 30%
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2 | Climate change targets (2)▶Promoting initiatives in line with TCFD recommendations◆ Implementing and regularly reviewing economic assessments on each of our projects using internal carbon pricing as abase case, set based on EU price of IEA STEPS($90/t-CO2 in 2030, $113 /t-CO2 in 2050）or regulatory carbon priceprediction.
◆ Also, conducted financial assessments of our portfolio by referring to the IEA WEO Announced Pledges Scenario (APS) .
We also use the Net Zero Emissions by 2050 Scenario (NZE) ※ as a reference for the assessments.
◆ Established an internal system to evaluate and manage climate-related risks and opportunities in line with TCFD
recommendations.
◆ Established an internal system to manage our efforts to achieve our climate change goals.
◆ Established an internal system to address and manage voluntary carbon credits.
▶ Building an organizational framework and optimizing personnel allocation to develop and enhance clean energy technology◆ To accelerate the implementation of energy transformation (EX) through technical research and new business
investment, the existing Technical Research Center (TRC) within the Technical Division will be progressively reorganized.
The division overseeing EX research and development at TRC will be integrated with the New Business Development
Unit of the Renewable Energy & New Business Division to create the Innovation Division. The New Venture Unit, which
will inherit the functions of the New Business Development Unit, and the I-RHEX Unit, which will inherit the EX researchand development functions of TRC, will be established at INPEX headquarters.
◆ Built a framework to execute business operations more efficiently and flexibly by reinforcing organizational structure
and personnel, including the establishment of the Hydrogen & CCUS Development Division.
※Scenario that assumes that the global energy sector will reach net zero in 2050
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3 | 3-1. Develop a Hydrogen Business▶Integrated demonstration of hydrogen & ammonia production and usage in Kashiwazaki City,Niigata Prefecture, Japan◆ In 2023, commenced construction of surface plant facilities of Kashiwazaki Clean Hydrogen/Ammonia Project with the aim ofcompleting construction in 2025.
▶Commercialization of blue hydrogen project in Niigata Prefecture, Japan◆ Based on the results of the above initiative, aim to construct a blue hydrogen production plant utilizing INPEX natural gas fields
and existing infrastructure and produce hydrogen on a commercial scale by around 2030 (100-thousand-ton scale)▶Clean Hydrogen and Ammonia Projects Overseas (Australia, U.S., Abu Dhabi, etc.)◆ Signed a strategic collaboration agreement (SCA) with ADNOC, the Japan Organization for Metals and Energy Security(JOGMEC) and Mitsui & Co., Ltd. (Mitsui) regarding a joint study for the verification of greenhouse gas (GHG) emissions at aclean ammonia production project implemented by ADNOC in Abu Dhabi in the United Arab Emirates (UAE).
◆ Jointly awarded a one million Australian dollar grant from the Australian Government to conduct a feasibility study into thegrowth potential of a clean hydrogen market in Darwin, northern Australia. The Darwin Clean Hydrogen Hub joint study
between INPEX, Santos, Xodus and CSIRO will explore opportunities to provide clean hydrogen solutions.
◆ In 2023, concluded a shareholder agreement for INPEX to acquire shares in Japan Suiso Energy, Ltd. (JSE), a joint venture
between Kawasaki Heavy Industries, Ltd (Kawasaki), Iwatani Corporation (Iwatani). Aiming to steadily build a commercialscale international liquefied hydrogen supply chain from Australia to Japan.
◆ In 2023, agreed to conduct a conceptual design (pre-FEED) for a large-scale low-carbon ammonia project in Texas, USA with
Air Liquide Group, LSB Industries and Vopak. Targeted to produce more than 1.1 million tonnes per annum (MTPA) of lowcarbon ammonia by the end of 2027
◆ In 2023, commenced joint study with Green Hydrogen International (GHI) for large scale green hydrogen/ammonia project inSouth Texas.
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3 | 3-2. Promote CCUS

▶ CO₂EOR demonstration at Minami-aga (Niigata Prefecture, Japan)◆ In 2023, CO2 injection tests were conducted.
▶ CO₂EOR scale up in Abu Dhabi◆ Pursue technical evaluations to increase CCUS capacity of ADNOC Onshore CO₂EOR activities from the current 0.8 million tonsper year with ADNOC.
▶ Promotion of CCS/CCUS business development in Japan and overseas◆ Conduct surveys of suitable CCS/CCUS locations and technical development in Japan and overseas.Make full use of knowledge,
experience and assets in the oil and natural gas sector with the aim of commercializing the CCS/CCUS business.
◆ Since 2022, have been participating in the CCS Long-Term Roadmap Study Group organized by the Ministry of Economy,
Trade and Industry (METI) and involved in discussions to develop policies of the commercialization of CCS in Japan.
◆ Tokyo Metropolitan Area CCS and Tohoku Region West Coast CCS have been selected by JOGMEC to conduct a feasibility
study on Japanese Advanced CCS Project, a public offered project in FY2023.
▶ CCS Introduction of the Ichthys LNG Project (Australia)◆ Conducted pre-appraisal reservoir evaluation and preparation for planned 3D-seismic survey and exploration drilling in GHG
assessment permit (G-7-AP) in Bonaparte Basin, offshore Northern Territory of Australia.
◆ Aiming to start the injection of more than 2 million tons of CO2 per year in the latter 2020s.
▶ Carbon Credit Development for CCUS
◆ Participated in the development of the CCS＋Initiative※ since September 2021 and joined as a Partner n March 2022.
※Initiative which is developing a methodology for generating carbon credits from CCUS projects
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3 | 3-3. Enhance and Emphasize Renewable Energy Initiatives▶ Wind power◆ In February 2022, acquired a 50% stake in the Luchterduinen offshore wind farm and a 15% stake in the Borssele
III/IV offshore wind farm operating off the coast of thNetherlands. Acquired a 16.7 percent stake in the Moray
East Offshore Wind Farm in March 2023.
◆ In April 2022, Goto Floating Wind Farm project in Nagasaki, which INPEX joins, was awarded Japan’s first public
offering plan certification as an offshore wind power generation facility by the Ministry of Economy, Trade andIndustry(METI) and the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) of Japan. Construction
work began in the same year. Commercial operation is planned in January,2026.
▶ Geothermal Power◆ In 2021, joined the Muara Laboh Geothermal Power Project in Indonesia,there after acquired additional shares(INPEX in essence holds approximately 30%), and considering further development.
◆ In 2022, joined the Rantau Dedap Geothermal Power Project in Indonesia (INPEX in essence holds approximately27.4%).
◆ In 2022, joined the Rajabasa Geothermal Project in Indonesia (INPEX in essence holds approximately 31.45%).
◆ In 2023, started construction of the Geothermal Power Project in the Oyasu area, Yuzawa City, Akita Prefecture,
Japan. Conducting preparations toward commencement of operations in March 2027.
◆ Continuing geothermal surveys at Amemasudake, Hokkaido.

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3 | 3-4 . Promote Carbon Recycling and New Business Opportunities▶ Metanation◆ As part of the NEDO grant project, we are promoting the construction and operation of a 400 Nm3/h e-methane
production plant in Nagaoka City, Niigata Prefecture, and the development of practical application technology
through sales at our company Gas Pipeline. Construction of the test facilities started in 2023.
◆ Commencing with Masdar and Mitsubishi Chemical Group, a joint feasibility study for carbon recycle chemicals
project in Abu Dhabi.
▶ Artificial Photosynthesis◆ As a member of the Japan Technological Research Association of Artificial Photosynthetic Chemical Process(ARPChem), conducting research and development on a part of solar hydrogen generation technology under"Development of Technology for Producing Raw Materials for Plastics Using CO2 and Other Sources" Projects.
▶ Developing Business in New Fields◆ Study of methane pyrolysis, CO2 capture, next-generation lithium-ion battery, and drone utilization.
◆ Investment in OCOchem to develop technology for producing green formic acid from CO2 and water.
◆ Invested in Kyoto Fusioneering Ltd., a Japan-based fusion energy startup.

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133 | 3-5. Promote Forest Conservation▶ Business Participation in Forest Conservation Projects◆ In August 2023, started planting trees in collaboration with the Bank of Australia and New Zealand andQantas Airlines under the carbon farming* and renewable biofuels project.
◆ Exemining opportunities for forest conservation projects by utilizing knowledge obtained throughafforestation and savanna fire management in Australia.

*An agricultural method that aims to improve soil quality and reduce greenhouse gas emissions by incorporating atmospheric CO 2 into soil through afforestation projects
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4 | Towards Cleaner Upstream Business andImplementation of a Shift to Natural Gas▶ Clean Upstream Business◆ Ichthys:Introduce measures to minimize flaring during production and fuel gas consumption and promote lowcarbon operations.
◆ Abu Dhabi:In addition to partially-started clean power utilization at operation of onshore facilities, make operations
cleaner in cooperation with ADNOC by supplying offshore facilities with clean power from onshore, etc..
◆ Norway: The company started supplying electricity to Snorre from the Hywind Tampen floating offshore windpower plant in the Snorre oil field.
◆ Japan: Conducted direct measurement of methane leaks with JOGMEC at INPEX operated Naoetsu LNG Terminal
as well as Koshijihara plant.
▶ Implementation of a shift to natural gas◆ Carry out exploration projects in Vietnam, Malaysia, etc.to acquire more natural gas resources in Asia,◆ Carry out gas exploration, expand gas assets in Europe..

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Revision History
Corporate Position on
Climate Change

Copyright© INPEX CORPORATION. All rights reserved.

INPEX’s current initiativesDecember 2015 Published

December 2015

PublishedJuly2018 Updated

February 2017

UpdatedJanuary2021 Updated

July

2018

UpdatedMarch2022 Updated

February 2020

UpdatedFebruary 2021

UpdatedMarch2022

UpdatedFebruary 2023

UpdatedMarchUpdated

2024

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