Corporate Position onClimate 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.

2 This paper outlines INPEX’s position and initiatives concerning the key themes listed to provide
stakeholders with a better understanding of how the company is responding to the challenges ofclimate 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 and Cultivate 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/

1

1

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

1INPEX will proactively engage in energy structure reforms towards the realization of a net zerocarbon 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, to contribute to the realization of the Paris Agreement objectives in relation to climatechange.

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 acredible 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 theworld 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 realizationof new business models. INPEX will promote long-term ties andcollaboration 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 and efficient initiatives making use ofpolicy incentives.

Enhance andemphasize
renewableenergyinitiatives

Becominga Pioneer ofEnergy
Transformation

Promotecarbon recycling
and cultivate newbusiness opportunities

Develop ahydrogenbusiness

Promoteforestconservation2

2

Climate Change Goals
INPEX has set its own goals to contribute to realizing a net zero carbon society as outlined inthe 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 methaneemissions / natural gas production); andAim to eliminate routine flaring by 2030.*3*3: in INPEX-operated projects

PROMOTE THE ONGOING DISCLOSURE OF CLIMATE-RELATED INFORMATION IN LINE WITH TCFD RECOMMENDATIONS.

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 ormore of hydrogen/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 other means 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

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 ratio of the portfolio.
For the natural gas development business, consider feedstock supply for hydrogen and ammonia
projects and business transformation opportunities.

5INPEX’s Current Initiatives
February 17, 2023

6

1Vision for around 2030
AroundMedium-termbusiness plan period
HydrogenAmmonia

CCUS

RenewableenergyMethanation

Forestconservation

Kashiwazaki
demonstration project

700t/year
Kashiwazaki demonstration
project, etc.

6Kt/year
Renewable power
generating capacity

500MW
Domestic technology
development business

400N㎥/h

REDD+ project

1.5MMt
GHG intensity
reduction by

10% or more

2030
Approx.
150 times

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

Commercialization of
3 or more projects

CO₂ injection

2.5MMtApprox.
2-4 times

Renewable power
generating capacity

Scale upper year

1-2GW

Around 2035

Production business scale

10K N㎥/h

Project
participation

Production business scale

Expansion

60K N㎥/h(360Kt/year)

Carbon credit acquisition

2MMt

Monetization as CCUS
business

Future production ofgreen hydrogen(60Kt/year)

Expansion

Expanded sustainable forest
conservation business

Sustainedefforts

Expanded stablesupply of clean oil& gas

per year
GHG intensity reduction byMaking the businesscleaner

30% or more(vs. 2019)
Investment ratio for gas business

Oil & gas
Investment ratio
for gas businessApprox. 50%

Supply of approx. 10% of
domestic demand

100Kt/year

Approx.
400 times

Approx.
25 times

2050

Approx. 70%
Gas shift

Reinforced trading functions
LNG handling volumeApprox. 10MMt

7

All figures based on INPEX equity portion

7

2

Climate Change Goals

INPEX's current initiatives
CCUS

Net carbon intensity
Our net carbon intensity (provisional figure) in 2022 was 28kg-CO2e boe . *1
Aim to reduce 10% (4.1kg/boe) or more over a 3-year period towards our 2030 target.*2
Scope 3
Reduce our Scope 3 emissions through marketing carbon-neutral LNG and gas to customers.
Complement initiatives towards net zero targets such as making the oil and natural gas business cleaner,
implementing a natural gas shift and promoting CCUS, hydrogen and ammonia, renewable energy, carbon
recycling, etc.
Methane emissions intensity
Our methane emissions intensity (provisional figure) in 2022 was 0.06%. Aim to maintain thecurrent low methane emissions intensity of approximately 0.1%.
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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82Climate Change Goals

INPEX's current initiatives
CCUS

Promoting initiatives in line with TCFD recommendations
Implementing and regularly reviewing economic assessments on each of our projects using internalcarbon pricing as a base case, set based on EU price of IEA STEPS($90/t-CO2 in 2030, $113 /t-CO2 in2050）or regulatory carbon price prediction.
Conducting financial assessments of our portfolio using the IEA WEO Sustainable Development
Scenario (SDS)※1 as one of the major scenarios. We also use the Net Zero Emissions by 2050 Scenario(NZE)※2 as a reference.
Established an internal system to evaluate and manage climate-related risks and opportunities in linewith 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
Established I-RHEX (INPEX Research Hub for Energy Transformation) to promote the development andenhancement of clean energy technology .
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.
*1 Scenario consistent with the Paris Agreement’s goals of keeping average global temperature rise to well below 2 degrees
Celsius compared to pre-industrial levels and pursuing efforts to limit it to 1.5 degrees Celsius.
*2 Scenario that assumes that the global energy sector will reach net zero in 2050.

Copyright© INPEX CORPORATION. All rights reserved.

933-1 Develop a Hydrogen Business

INPEX's current initiatives
Integrated demonstration of hydrogen & ammonia production and usage in Kashiwazaki City,Niigata Prefecture, JapanIn October, 2022, took a final investment decision (FID) on drilling operations and the construction offacilities associated with a demonstration of a business model to produce carbon-free hydrogen &ammonia through a natural gas reforming process. Plan to construct a blue hydrogen & ammonia
production plant and aim to start operation 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 byaround 2030 (100-thousand-ton scale).
Clean ammonia production in Abu Dhabi
Conducted a joint study with ADNOC, JERA and JOGMEC on exploring the commercial
potential of a clean ammonia production business in the UAE.
Based on the results of the joint study, Aiming to construct a clean ammonia plant andcommence supply from the second half of the 2020s.
Clean hydrogen projects overseas (Australia, Abu Dhabi, Indonesia, etc.)
Promote business expansion through feasibility studies and collaboration, aiming
at large-scale project development overseas. Now pursuing opportunities in thehydrogen production, liquefaction, offloading and shipping business.
In 2022, signed a Memorandum of Understanding with Australian energy provider
AGL Energy to conduct a feasibility study on a green hydrogen production projectin the state of South Australia and New South Wales. A study has been conducted
on exporting hydrogen and methanation utilizing hydrogen.

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1033-2. Promote CCUS

INPEX's current initiatives
CCUS

CO₂EOR demonstration at Minami-aga (Niigata Prefecture, Japan)
In April 2021, commenced a joint study with JOGMEC for a CO2 enhanced oil recovery pilot test ,and commenced drilling in preparation for a pilot test in June 2022, completed in January 2023.
Aiming to commence CO₂ injection tests by the end of 2023.
CO₂EOR scale up in Abu Dhabi
Pursue technical evaluations to increase CCUS capacity of ADNOC Onshore CO₂EOR activities
from the current 0.8 million tons per 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 ofcommercializing the CCS/CCUS business.
In April 2022, signed a memorandum of understanding between PTTEP and JGC Holdings Corporation
To explore CCS project.
Since 2022, have been participating in the CCS Long-Term Roadmap Study Group organized by the Ministry ofEconomy, Trade and Industry (METI) and involved in discussions to develop policies of the commercializationof CCS in Japan.
In January 2023, signed a memorandum of understanding between ITOCHU Corporation,
Mitsubishi Heavy Industries, Ltd., and Taisei Corporation for a joint feasibility study
on a large-scale and wide-area CCS value chain project using ship transportation.

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11

33-2. Promote CCUS

INPEX's current initiatives
CCUS

CCS implementation at the Ichthys LNG Project (Australia)
Aiming to sequester CO2 captured at the INPEX-operated Ichthys LNG plant in Darwin, Australia.
In August 2022, began joint research with JOGMEC for CCS business opportunity assessment at
Australian LNG operation, and awarded a GHG assessment permit (G-7-AP) at offshore Northern
Territory, Australia.
Introduce CCS to Ichthys in the late-2020s and begin injecting 2 million tons or more of CO₂ peryear as a first step.

Carbon Credit Development for CCUS
Participated in the development of the CCS＋Initiative＊ since September 2021 and joined as a Partnerin March 2022.

*Initiative which is developing a methodology for generating carbon credits from CCUS projects

Copyright© INPEX CORPORATION. All rights reserved.

1233-3. Enhance and Emphasize Renewable Energy Initiatives

INPEX's current initiatives

Wind power
In February 2022, acquired a 50% stake in the Luchterduinen offshore wind farm and a 15% stake in theBorssele III/IV offshore wind farm operating off the coast of the Netherlands.
Both are currently in stable operation.
In April 2022, Goto Floating Wind Farm project in Nagasaki, which INPEX joins, was awarded Japan’s firstpublic offering plan certification as an offshore wind power generation facility by the Ministry of Economy,
Trade and Industry(METI) and the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) of Japan.
Construction work began in the same year.
To pursue start-up of commercial operation in January 2024.
Geothermal
In December 2021, joined the Muara Laboh Geothermal Power Project in Indonesia,
thereafter acquired additional shares (INPEX in essence holds approximately 30%), andconsidering further development.
In October 2022, joined the Rantau Dedap Geothermal Power Project in Indonesia(INPEX in essence holds approximately 27.4%).
In December 2022, joined the Rajabasa Geothermal Project in Indonesia (INPEX inessence holds approximately 31.45%).
In June 2022, resolved to enter the construction phase of the Geothermal Power Projectin 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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13Promote Carbon Recycling and Cultivate
3 3-4. New
Business Opportunities
INPEX's current initiatives

Methanation
As a NEDO-sanctioned project, promoting technical development by constructing to launch amethane production capacity of 400 normal cubic meters per hour, and selling it through our gas
pipeline. Transitioning to EPC(Engineering, Procurement, Design) work.
Methane pyrolysis
Conducting R&D studies for future commercialization.
Artificial photosynthesis
Participated in ARPChem (Japan Technological Research Association of Artificial Photosynthetic
Chemical Process) since 2012. Have been participating in phase 2 since March 2022.
In December 2022, the joint team of INPEX and the University of Tokyo, supported byARPChem, won fist place at international artificial photosynthesis competition (out of 22teams).
DronesIn February 2021, made an investment in Terra Drone Corp and commenced joint
studies on the INPEX-Terra Drone Intelligent Drone Plan.
In 2022, conducted a drone flight demonstration test using LTE communications
together with Mitsubishi Heavy Industries, Ltd., Mitsubishi Heavy Industries
Machinery Technology Corporation, and INPEX Pipeline Co., Ltd., in Kashiwazaki City
in Niigata Prefecture, Japan.
Studying implementation of inspection by drones of plant and long-distance pipelinenetworks.
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1433-5. Promote Forest Conservation

INPEX's current initiatives

Business participation in forest conservation projects
In February 2021, entered into an agreement with conservation firm infiniteEARTH to acquire
5 million tons worth of carbon credits over 5 years by supporting the project. Currently
preparing the construction of 3 Orangutan Release Camps.
By around 2030, stably secure about 2 million tons of forestation credits per year from leading
forest conservation projects, such as the Rimba Raya REDD+ Project.
Aim to participate in projects in addition to acquiring credits from forest conservation projects
by utilizing INPEX’s track record in carbon credit acquisition through supporting the Rimba
Raya REDD+ Project and afforestation and savanna fire management at Ichthys.
In March 2022, commenced collaboration with ANZ and Qantas to evaluate a carbon farming※and renewable biofuels project.
*The carbon farming in this project provides an opportunity to support carbon
capture from the atmosphere through reforestation and improving of soil, thus
reducing GHG emissions.

Copyright© INPEX CORPORATION. All rights reserved.

154Towards Cleaner Upstream Business andImplementation of a Shift to Natural Gas

INPEX's current initiatives

Cleaner upstream business
Ichthys: Introduce measures to minimize flaring during production and fuel gas consumption andpromote low-carbon 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 powerfrom onshore, etc.
Tangguh : Plan to reach FID on CCUS in 2024 and commence injection in 2026.
Norway: Plan to supply clean power to offshore production facilities of Snorre project in the mid 2023
from floating offshore wind power generation facilities such as Hywind Tampen, etc.
Kashagan: Evaluate and implement GHG reduction based on GHG & Energy Management Strategy.
ACG: Evaluate and implement GHG reduction based on ACG Life of Field Strategy.
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 and M&A activities in Vietnam, Malaysia, etc. to acquire additional natural gas
resources in Asia.
Carry out gas exploration, expand gas assets in Europe.

Copyright© INPEX CORPORATION. All rights reserved.

16

Revision History
Corporate Position on
Climate Change
December 2015
July
2018
January 2021
March2022

Copyright© INPEX CORPORATION. All rights reserved.

Published
UpdatedUpdatedUpdatedINPEX’s current initiatives
December 2015
February 2017
July
2018
February 2020
February 2021
March2022
February 2023

Published
UpdatedUpdatedUpdatedUpdatedUpdatedUpdated17