Vale

Sustainability strategy and accountability

Vale discloses its process for identifying and prioritising its most relevant sustainability impacts as well as the outcome of this process through document analysis, engagement with stakeholders and qualitative and quantitative consultation, in relation to its sustainability strategy. Vale has group-wide targets on key sustainability topics for the most material parts of its value chain, including biodiversity, local communities, eco-efficiency and climate change, and it reports advances and improvement points every year against all the sustainability targets. Vale provides evidence of linking performance criteria in senior executives’ remuneration policies to targets and objectives which cover nature, such as reducing GHG emissions and implementing social action models.

Stakeholder engagement

Vale discloses an overview of the issues raised during its stakeholder engagement activities, which cover nature, including biodiversity, and social issues. The company discloses how often and through which channels it engages with various stakeholder groups.

Key areas and species

Vale discloses a total of 814.6 square kilometres of impacted areas in 2021, including the name of locations and protected areas. It also discloses a total of 5,442 species populations existing in or adjacent to its own locations, of which 2,968 are fauna and 2,471 flora. The company discloses the status, according to IUCN Red List species and national conservation list species, for organisms found in its own locations.

Water

Vale set a 2030 target to reduce water withdrawal by 10% compared to the 2017 base year. The company exceeded the target in 2021 and will set a new target next year. Additionally, Vale recognises the rights to land and water of local communities and Indigenous Peoples. The company identifies specific risks to water rights and sanitation and preventive and corrective action plans. It also includes the community and other users through different monitoring processes. The company discloses that 2% of its freshwater withdrawal comes from areas with high levels of water risk and 3% from areas with medium to high levels of water risk. Vale reports a decrease in water pollution and discloses its processes for managing and monitoring discharge water quality.

Solid and air pollution

Vale reports annually on air quality parameters of emissions of harmful air pollutants, including particulate matter (PM), sulphur oxide (SOx) and nitrogen oxide (NOx), and all three emissions dropped compared to the 2018 base year. Vale also set a target to reduce PM by 16%, SOx by 16% and NOx by 10% by 2030 compared to 2018.

Safe, clean, healthy and sustainable environment

Vale demonstrates that its human rights risks and impacts identification process includes a focus on the health of local communities. The company is committed to zero tolerance for acts of violence, threats, intimidation or judicial harassment committed against land and environmental rights defenders.

Indigenous Peoples’ and land rights

Vale is committed to respecting Indigenous Peoples’ rights. The company discloses the process and details to identify and recognise the rights of Indigenous Peoples when activities in its own operations may impact their rights, including carrying out the matrix of stakeholders and characterisation of communities, and describes how it obtains Indigenous Peoples’ free, prior and informed consent through a consultation process with active participation. Vale holds its business relationships to the same standards as itself and requires them to uphold ILO Convention No. 169 on Indigenous and Tribal Peoples. Moreover, Vale recognises the rights to land and water of local communities and establishes its human rights policy based on the voluntary guidelines for responsible governance of land, fisheries and forest land regimes.

Sustainability strategy and accountability

While Vale discloses the experience and qualifications of members of its Sustainability Committee, it is unclear what expertise and experience related to the company’s most material pressures on nature these members possess.

Lobbying

Vale discloses a list of trade associations of which it is a member wherever it operates. However, the company does not disclose a clear and detailed framework for assessing alignment of its trade associations with nature-positive policies. The company does not report (potential) misalignment between the lobbying activities of its trade associations and nature-positive policies.

Impact and dependencies assessment

While Vale mentions using GRI system indicators to monitor the performance of its operational impacts on biodiversity, no evidence was found that the company has holistically assessed its impacts or how it depends on nature, including biodiversity. The company has an opportunity to start such an assessment across its value chains, focused on quantification of its impacts or dependencies.

Key areas and species

Vale does not disclose the locations of its suppliers that are in or adjacent to areas important for biodiversity. Moreover, the company does not disclose species populations existing in or adjacent to the locations of its suppliers.

Ecosystem conversion and restoration

Vale does not disclose a commitment to ensure zero conversion, any activities to achieve conversion-free supply chains or a time-bound target to achieve conversion-free supply chains. Vale also does not disclose a commitment or any activities to minimise ecosystem conversion.

Resource exploitation and circularity

Vale does not disclose its inputs, including its material footprint. While the company reports on some circularity metrics, there is no evidence it reports quantitatively on its group-wide circularity performance (e.g. circular material productivity). Moreover, while Vale provides details of practices to monitor and improve soil health in its restoration and rehabilitation activities, it does not disclose a target to improve soil health in its production or sourcing practices.

Water

Vale does not engage with suppliers to reduce water withdrawal. While the company reports on effluents, it does not offer metrics on specific pollutants discharged. Moreover, the company does not disclose targets to reduce water pollution.

Solid and air pollution

While Vale discloses several business practices regarding waste management, no evidence was found that it reduces the production of hazardous waste. While Vale provides some information on plastic, no specific quantitative evidence was found that the company is reducing plastic use and waste in its own operations. Neither does Vale report on the amount of plastic waste generated and proportions directed from or to disposal.

GHG emissions

While Vale discloses its scope 1, 2 and 3 emissions, the amount increased compared to the previous year. Therefore, the company does not demonstrate a year-on-year reduction compared to the baseline. Vale aims to reduce 33% of scope 1 and 2 emissions by 2030 and 15% of scope 3 emissions by 2035 compared to the 2018 base year. However, no evidence was found that these targets are aligned with a 1.5-degree trajectory.

Invasive species

While Vale mentions invasive species management for its restoration activities, it is unclear what the process and outcome are of such management. No evidence was found that the company identifies the activities that could lead to the introduction of invasive species in its value chain

Safe, clean, healthy and sustainable environment

While Vale mentions its priority to seek zero harm to employees and communities, it has an opportunity to make a commitment to respect the right to a safe, clean, healthy and sustainable environment. While the company discloses evidence of tracking the safety of local communities, it does not disclose specific evidence of tracking its actual or potential negative impacts on the health of local communities.

Indigenous Peoples’ and land rights

No evidence was found that Vale requires its business relationships to have a process to identify legitimate tenure rightsholders, paying particular attention to vulnerable or marginalised tenure rightsholders, and to negotiate with them to provide adequate compensation.

Vale describes the process for identifying its human rights risks and impacts in specific locations or activities covering its own operations. It also discloses the results of its human rights risk assessments, which are aggregated across its operations and locations. The company provides a case study describing how it has acted on a salient human rights risk issue. Vale discloses categories of stakeholders whose human rights have been or may be affected by its activities as well as details of engagement with these stakeholders.

Vale has a publicly available policy statement which shows it is committed to respecting the health and safety of workers, and it expects its suppliers to do the same. While the company discloses that it provides a minimum wage to its employees, it has an opportunity to disclose a time-bound target for paying all workers a living wage or that it has achieved paying all workers a living wage. Moreover, while the company states that it expects its suppliers to pay wages that are sufficient for workers and their families to fulfil their basic needs, it has an opportunity to disclose how it works to support the payment of a living wage by its suppliers. Vale discloses the proportion of its total direct operations workforce covered by collective bargaining agreements. However, while the company states that it encourages its suppliers to respect employees’ right to freedom of association and the right to collective bargaining, it has an opportunity to describe how it works to support the practices of its suppliers in this regard.

No evidence was found that Vale has a publicly available global tax strategy. While the company discloses that it conducts periodic risk assessments related to bribery and corruption, no evidence was found that the company describes publicly the process to identify these risks and impacts. However, Vale does include anti-bribery and anti-corruption clauses in its contracts with direct business relationships. The company discloses information related to political freedom in its operations and its engagement with public agencies and institutions but does not formalise this approach in a public policy document. It specifies that it does not make political contributions.