JAPEX has positioned climate change measures as one of its key management issues.
Aiming to contribute to global initiatives against climate change and the government's "2050 Carbon Neutral" initiative, the entire JAPEX Group, including its subsidiaries and affiliates, is working to reduce GHG emissions and transform its business.
Policy of Measures
JAPEX is organizing policies and implementing measures from four perspectives based on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), which calls for disclosure of information on the financial impacts of climate change (TCFD Recommendations).
Items related to climate change are deliberated, discussed, and reported by upper management as appropriate.
- Having deliberations and discussions regarding the promotion of sustainability, including climate change, at the Sustainability Committee chaired by the president (as needed)
- Monitoring progress of GHG reduction targets by the Management Risk Committee (twice a year, and as needed)
- sustainability promotion status (once a year for each, and as needed)
JAPEX formulates and implements strategies based on the identification of medium- to long-term risks and opportunities associated with climate change, including the impact of the transition to a decarbonized society on our business.
We perform scenario analysis based on multiple assumptions including STEPS (*1) and SDS (*2) published by the International Energy Agency (IEA), and use the results to formulate strategies.
*1: Stated Policies Scenario: A scenario assuming that currently announced policies will be realized
*2: Sustainable Development Scenario: A scenario in which efforts are pursued to keep the global average temperature increase well below 2 degrees above pre-industrial levels and to limit it to 1.5 degrees
JAPEX assesses and manages business risks at the time of investment decision and at the execution stage.
In the area of climate change, we monitor the carbon tax, GHG emission targets, and emission regulations of the countries and regions where we operate, reflect these trends in our business risks as appropriate, and implement the necessary measures.
In 2017, we also introduced Internal Carbon Pricing (ICP), adding risk tolerance to carbon taxes and GHG emission regulations to our assessment criteria.
JAPEX's risks related to climate change
JAPEX's risks related to climate change, as identified through discussions with external experts, are as follows:
- Transition risk
- Regulations and laws: Increased additional cost burden due to environmental laws such as carbon tax
- Market and technology: Revenue decline due to lower demand for oil and natural gas
- Reputation: Reputation for GHG emissions from operations related to oil and natural gas
- Physical risk
- Increase in abnormal weather events: Impact on onshore and offshore facilities due to extreme weather fluctuations
Indicators and Targets
The JAPEX Group's GHG emission reduction target for 2050 is set in the carbon neutral policy "JAPEX2050."
- Achieve carbon neutrality in 2050 with Scope 1 (direct emissions) and Scope 2 (indirect emissions).
- As the first step, we aim to achieve a 40% reduction in CO2 emissions per unit of production by 2030 (compared to fiscal 2019).
- Contribute to the reduction in Scope 3 (JAPEX's supply chain emissions).
Since 2013, JAPEX has been participating in the Keidanren Low Carbon Society Action Plan as a member of the Japan Petroleum and Mining Association. We have incorporated the Association's GHG reduction targets into our CSR action plan.
With the aim of achieving these targets, we are working to establish new technologies, including application and use of these technologies, and to create and expand businesses related to energy with low environmental impact.
Efforts toward reduction in Scopes 1 and 2
JAPEX is working to reduce GHG emissions and conserve energy at our sites to achieve reduction in Scopes 1 and 2.
- Reduction of GHG emissions: Reduce flaring (combustion) operations and vent emissions through effective use of low-pressure excess gas.
- Energy conservation: Improve operational efficiency, identify energy loss through exergy analysis, and implement measures.