Carbon neutral.
Vale is reinforcing its pact with society as it strives to meet all current demands of our planet. To align with world-class sustainability best practices, Vale will invest at least US$ 2 billion in initiatives to reduce the company's
carbon emissions by 33% by 2030.
It is the largest investment ever undertaken by the mining industry to tackle climate change and is part of Vale's commitment to becoming carbon-neutral by 2050.
At least US$ 2 billion investment in initiatives to reduce emissions over the next 10 years
Reduce the carbon footprint by 33% by 2030
Greenhouse Gas Emissions and Global Warming
Increase in global average surface temperature drives climate change and causes extreme weather and climate events to occur more frequently. These climate changes are largely attributed to higher concentrations of greenhouse gases
on a global scale. Carbon dioxide (CO2) emissions have spiked since the industrial revolution, causing the global temperature to increase at an average rate of 1°C since the end of the XIX century . According to the United Nations
Environment Programme (UNEP), global GHG emissions in 2030 need to be approximately 25% and 55% lower than in 2018 to reach 1.5°C and 2°C global warming targets, which is the safe limit established by scientists. One way to contribute
to this goal is to reduce/offset carbon emissions.
To become carbon neutral, 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 carbon-neutral?
Vale believes that the future is all about the choices we make today. Therefore, we cannot afford to postpone our commitment to the future. We are one of the largest mining companies in the world and we understand our responsibility
towards the planet. Our Strategy unfolded in 2030 targets uphold this commitment. We are reducing our CO2 emissions (Scope 1 and 2) and defining the targets on our Scope 3 emissions, in line with our strategic pillar - New Pact with Society - and the goal of improving your value to society. Vale has adopted more challenging and ambitious sustainability goals to foster safer and more sustainable activities in the mining industry and have a beneficial
effect on society.
The emissions target set for 2030 is part of Vale’s plan to become carbon neutral by 2050. After reaching this target, Vale will assess the possibility of reducing remaining emissions based on carbon prices through 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
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 carbon neutral – (i) measure emissions; (ii) reduce emissions; (iii) offset remaining emissions; (iv) verify and validate data with transparency.
Mapping of Emissions
The first step in mitigating the impacts of climate change is to map out direct and indirect greenhouse gas (GHG) emissions. Vale’s direct emissions come from its operations (Scope 1) while indirect emissions come from external sources
involved in the production process, such as the electric power consumed in its operations (Scope 2). In 2019, our direct Scope 1 emissions – emissions from the use of fossil fuels; self-generation; and chemical and physical reactions
in industrial processes – and Scope 2 emissions (emissions from the purchase of electric energy) totaled approximately 12.6 million tons of CO2. Our goal is to reduce and limit emissions to 9.5 MtCO2e by 2030, in line with the Paris Agreement.
We plan to reduce the company's carbon emissions by 33% by 2030, lower than in 2017, and neutralize scopes 1 and 2 carbon emissions in our operations by 2050.
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.
- Recover and protect more than 500,000 hectares of native forest by 2030.
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Vale currently protects one million hectares globally
- 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).
- Self-generate 100% of electric power from clean sources globally.
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Vale is committed to self-generate 100% of electric power in Brazil by 2025 and use 100% self-generated clean energy globally by 2030.
- Folha Larga Wind Project, in Campo Formoso, in the state of Bahia, with an installed capacity of 151.2 megawatts. Wind power is expected to increase its stake in Vale's electric grid in Brazil by 200% (from 3% to
9%), compared to 2019.
- Energy Efficiency Measures
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- High energy efficiency across Vale's production chain, supported by a systematic management model and multidisciplinary teams.
- 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
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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.
- Sentinel – Artificial intelligence
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Vale’s AI Center located in Vitória forged a partnership with researcher Ali Soofastei from the University of Queensland in Australia to develop a new artificial intelligence tool that optimizes the operation of off-highway
trucks by displaying the ideal speed for lowest fuel consumption on the vehicle’s dashboard. The technological solution was tested on 50 trucks in Itabira, Minas Gerais, resulting in savings of 585,000 liters of
diesel and R$ 1.8 million. Regarding the environmental impact, reduced diesel consumption avoided emissions of 1,500 tons of CO2, the equivalent of planting 2,000 trees of the Atlantic Forest.
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 carbon-neutral, 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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