Net zero.
Aware of all the planet’s current urgencies, Vale reinforces our
pact with society. And, in line with the best sustainability
practices worldwide, we will invest in reducing our carbon
footprint in all areas within the company's scope of
responsibility. Furthermore, Vale has also committed to cut 15%
of the emissions from our value chain by 2035.
It is the largest investment ever undertaken by the mining
industry to tackle climate change and is part of Vale's
commitment to becoming net zero by 2050.
Invest up to US$6 Billion to reduce
direct and indirect emissions.
Reduce by 33% the carbon footprint by
2030
Reduce 15% the carbon emissions from our
value chain by 2035.
Greenhouse Gas Emissions and Global Warming
The intensification of global warming causes climate change, and
consequently increases the frequency of extreme weather events.
Climate change is related to increased global emissions of GHGs.
Carbon dioxide (CO2) emissions have been increasing since the
Industrial Revolution. Since the end of the 19th century until
now, the global average temperature has risen by almost 1°C. The
latest report by the UN Intergovernmental Panel on Climate Change
(IPCC) predicts that the temperature of the planet will rise by
other 1.5°C within the next decade. According to the UN
Environment Programme, global GHG emissions in 2030 must be 25% to
55% lower than they were in 2018 to limit the average temperature
increase on Earth to between 1.5°C and 2°C, the limit scientists
consider safe. One of the ways we can contribute to this goal is
to reduce and/or neutralize our carbon emissions.
To become net zero, companies must calculate their carbon
footprint, reduce their current emissions to the point where
it reaches a balance, and neutralize what they cannot reduce
with carbon offsets. Remaining emissions can be offset through
reforestation of degraded areas or purchase of carbon credits.
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The concept of “carbon neutrality” was strengthened by the Paris
Agreement.
Entered into force in 2015 by 195 countries, the Paris Agreement set
out the target to limit global warming to well below 2°C and pursue
efforts to further limit it to 1.5°C. The Paris Agreement is a
bridge between today's policies and climate-neutrality before the
end of the century. Governments agreed to reduce emissions and
achieve a balance between emissions and removals in the second half
of the century – which is the very definition of carbon neutrality.
Why does Vale want to become net zero?
Vale believes that tomorrow is built on the choices we make today.
Therefore, it is not possible to postpone our commitment to the
future. We are one of the largest mining companies in the world
and we know our responsibility. Our strategy, broken down into
specific goals, undertakes this commitment by means of our
strategic New Pact with the Society pillar and the goal is
to
improve society’s perception of the value Vale generates.
We are reducing emissions of CO2 and equivalents (Scope 1 and 2)
by 2030 and emissions caused by our value chain (Scope 3) by 2035.
To guide the implementation and delivery of our commitments
undertaken in climate change, the company created the Low Carbon
Forum, a group led by our CEO and composed of executive officers
and their technical teams. This initiative reflects the engagement
of our top leadership in the subject, helps to monitor the
performance in relation to the undertaken commitments, and drives
constant progress in achieving Vale's climate agenda.
As we adopt more challenging and ambitious sustainability goals,
we promote a safer and more sustainable mining industry and impact
society positively. Our emission reduction target is part of
Vale's trajectory to become net zero by 2050. After reaching this
target, we will evaluate the possibility of reducing the impact of
our remaining emissions by offsetting them through the purchase of
carbon credits.
We are committed to reach carbon neutrality to fulfill our role in
creating a sustainable world for future generations. Our Mission
is to transform natural resources into prosperity and sustainable
development.
This agenda is a result of a consultation process aligned with a
real demand from society for climate change and reduction of scope
1 and 2 emissions. We are stepping forward to develop a New Pact
with Society with more transparency and responsibility.
- Eduardo Bartolomeo, Vale's CEO
To achieve the scope 3 objective, in order to encourage customers
and suppliers in the same direction and aligned with its
commitment to be net zero, Vale will rely on a portfolio of high
quality products and innovative technologies to provide solutions
that lead to the reduction of these emissions.
To achieve the scope 3 objective, in order to encourage customers
and suppliers in the same direction and aligned with its
commitment to be net zero, Vale will rely on a portfolio of high
quality products and innovative technologies to provide solutions
that lead to the reduction of these emissions.
- Eduardo Bartolomeo, Vale's CEO
The Paris Agreement was signed by global leaders in 2015. It sets
out a global framework to reduce the effects of climate change by
limiting global warming to well below 2°C by 2100 above
pre-industrial levels. According to UN’s Intergovernmental Panel
on Climate Change (IPCC), human activities have already warmed the
Earth’s average temperature by 0.87°C since the start of the
Industrial Revolution. Also in 2015, representatives of UN member
states pledged to take measures to foster sustainable development,
including combating climate change and its impacts. Vale maintains
its targets aligned with the Paris Agreement and UN’s 2030 agenda
as it strives to meet all current demands of our planet.
Requirements to become net zero – (i) measure emissions; (ii)
reduce emissions; (iii) offset remaining emissions; (iv) verify
and validate data with transparency.
Mapping of Emissions
The first step to combat the impacts of climate change is to map
our direct and indirect GHG emissions. Vale's direct emissions
come from our own operations (Scope 1) and our indirect emissions
come from the purchase of electric energy in the market (Scope 2).
The target considers 2017 as the base year for the emission
reduction. In that year, our direct and indirect emissions totaled
around 14.1 million tons of CO2 equivalent (MtCO2e).
Our goal is to reduce to 9.5 MtCO2e by 2030, in line with the
ambition of the Paris Agreement.
This is the first step to achieve carbon neutrality by 2050.
There are also emissions from our value chain (Scope 3), which
represent 98% of Vale's total carbon inventory today. Given the
relevance of the Scope 3 emissions, the company has set a target
to reduce its net emissions by 15% by 2035 (based on the year
2018). This represents a reduction of approximately 90 MtCO2e –
which is equivalent to the emissions from the energy used in Chile
in 2019.
In this way, we will reduce our emissions, offset our residual
carbon emissions and help to build a more sustainable world for
future generations.
Our goal is to reduce carbon emissions by 33% by 2030, based on
2017 emissions, reduce our suppliers' emissions by 15% by 2035,
based on 2018 emissions, and become net zero by 2050 in our
operations.
We will reduce our emissions and offset the carbon emissions that
cannot be avoided in order to create a more sustainable world for
future generations.
Learn about each scope
Scope 1
Emissions from our operations due to the consumption of diesel,
natural gas, coal, and gasoline, for example. These are the
emissions under our (Vale) control and management.
Scope 2
These are indirect emissions from the consumption of electric
power or steam. We do not manage how electric energy is generated
as well as emissions from this phase, but we can be more efficient
and reduce emissions indirectly.
Scope 3
Emissions from the value chain, that is, emissions from our
suppliers, outsourced transport, and our customers. Emissions from
the steel industry, for example, are classified as Scope 3.
Initiatives Underway and Next Steps
We are implementing a series of initiatives to achieve our social
and environmental goals and help fight plundering climate change
caused by emissions of pollutants. Check out our main initiatives
below.
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Recover and protect more than 500,000 hectares of native
forest by 2030.
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Currently, Vale protects almost 1 million hectares
worldwide, 800,000 of which are in the Amazon – an area
equivalent to five times the city of São Paulo.
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Replace diesel with renewable sources of electric energy in
mining and transport activities, including trucks and
trains.
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The first 100% electric shunting locomotive operating on
the Vitória-Minas railroad (EFVM).
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Self-generate 100% of electric power from clean sources
globally.
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By 2025, Vale is committed to achieving self-sufficiency
in electric energy in Brazil and, by 2030, 100% of the
energy used in all of our operations globally will come
from renewable sources.
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Currently, Vale is building Sol do Cerrado, one of the
largest solar energy plants in the country, with an
installed capacity of 766 megawatts. Located in Jaíba
(MG) and scheduled to start up in October 2022, this
solar plant will meet 13% of Vale's electricity demands
in 2025 and will represent an annual cost reduction of
US$70 million after the startup. The company is
investing US$500 million in the project.
-
In the second half of 2020, in partnership with the
company Casa dos Ventos, Vale started up the 151MW Folha
Larga Sul wind power plant, located in Bahia. Part of
the electricity it generates is reserved for Vale’s
20-year power purchase contract (PPA in Portuguese),
which enables us to reduce CO2e emissions by 32 thousand
tons per year. Our contract also gives our company an
option to purchase future power plant assets, enabling
Vale to become a partner and self-producer of energy.
- Energy Efficiency Measures
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High energy efficiency across Vale's production chain,
supported by a systematic management model and
multidisciplinary teams.
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Increased thermal efficiency of pelletizing furnaces in
Brazil, using the Lean Six Sigma methodology to minimize
deviations and reduce specific consumption of thermal
power applied in pelletizing processing, seeking to
achieve integrated operational excellence and specific
benchmarks of each production unit. Thermal power
consumption at the Tubarão pelletizing plants reduced by
4.3%. Specific consumption of natural gas cut down from
10.64 to 9.65 Nm³/t, representing a 9.3% reduction.
- Autonomous Trucks
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Huge off-highway trucks with a 240-ton capacity travel
autonomously (no drivers) on the roads of a vast mining
area. The vehicles are controlled only by computer
systems, GPS, radar, and artificial intelligence, moving
efficiently between the mining area and the unloading
area. These trucks are operated at the Brucutu mine, in
Minas Gerais. The autonomous iron ore transportation
system offers higher productivity, causes lower wear and
tear to parts, and increases the useful life of the
equipment by 15%. This initiative is of utmost importance
in the process of reducing Vale’s emissions of CO2 and
particulate matter considering that the equipment consumes
less fuel.
- Powershift Program
-
Vale created an internal program called PowerShift to
support its sustainability goals with a focus on the
transition to a low-carbon economy. The program seeks to
clean up Vale’s electric grid with the use of renewable
energy, alternative fuels, and boost forest initiatives
and technological innovation for greater operational
efficiency. Initiatives linked to PowerShift cover 40% of
the 2030 reduction target.
- Partnerships – The Charge On Innovation Challenge
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Vale's partnership with mining companies BHP and Rio
Tinto, the Charge On Innovation Challenge, launched in
May. This global call for innovation challenges
entrepreneurs to develop solutions to electrify big
trucks, such as those used in mines. The end goal is to
generate solutions that will replace diesel with batteries
and thus significantly reduce emissions from mining
operations.
This project attracted 430 companies from 19 sectors and
organizations and another 21 mining companies joined the
initiative as sponsors. The next phase will analyze the
proposals and the product presentations. The challenge is
being led by Austmine, the leading not-for-profit industry
association for the Australian mining equipment,
technology and services sector (METS).
Vale, BHP and Rio Tinto recently announced that they
intend to become net zero by 2050.
ESG Portal - Eliminating Environmental, Social, and
Governance Gaps
One of Vale’s socio-environmental goals, established in 2019, is
to eliminate the main gaps mapped concerning best practices in the
Environment, Social and Governance areas (ESG). Based on this
analysis, we mapped an action plan to close these ESG gaps. Among
the initiatives, we can highlighted: actions with a greater focus
on our climate change agenda, in line with our commitment to be
net zero, more diversity in the Board of Directors, more women in
our workforce and others initiatives aligned with the 2030
commitments.
We are committed to integrating sustainability into our business
by building a strong and positive economic, social and
environmental legacy and mitigating the impacts of our operations.
In 2019, we launched our ESG portal, providing greater
transparency in our initiatives. To learn about them and our
action plan, access the
ESG portal.
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