Vale launches its first Integrated Report, with the results of the management of
material topics, updated in 2020 after consultation with its main stakeholders.
“Since I took over the leadership of Vale a few months after the tragedy of the dam
rupture in Brumadinho, I have emphasized as priorities of the company: people, safety and reparation. These
three words inspired us to outline the direction that we believe is essential to build a better Vale.
We are determined to fully reparation and compensate for the damage caused by the
tragedy, and I will never get tired of saying that we will never forget Brumadinho. We are committed to
contributing more and more to improve and develop the communities in which we operate. We know that we
have a way to go. But we remain firm in establishing a New Pact with Society, the strategic pillar that
we adopted in 2019.
We started an intense cultural transformation process and, throughout 2020, we
reflected a lot on our role and objectives as a company. Today, at the beginning of this journey, we
understand that we exist to improve life and transform the future of the people and communities where we
operate, together! This is Vale's purpose. This is what will guide our journey from now on. We know it
will be long, but we are determined to continue moving forward, with humility, active listening and open
dialogue.
We recognize that climate change increasingly represents one of the greatest
challenges facing society. We will invest more than USD 2 billion to reduce greenhouse gas emissions from
our operations by 33% (Scopes 1 and 2) by 2030. This is the largest investment ever committed by the
mining industry to mitigate climate change and it is part of Vale’s commitment to become carbon-neutral
by 2050.
For Scope 3 emissions, we have established a 15% reduction by 2035, based on our 2018
emissions. This commitment considers that most of our carbon footprint is in the value chain, more
specifically in iron ore processing by the steel industry.
All of our goals are in line with the ambition of the Paris Agreement. We are firmly
committed to contributing with solutions that help limit the increase in global average temperature by no
more than 2°C, committing additional efforts to help limit this increase to 1.5°C.
In this report you will find more information about our key environmental, social,
and governance results, as well as our remediation and risk management efforts. As president of Vale, I
reaffirm my commitment to dedicate all possible resources to lead the company towards the
transformations necessary to create and share value with society.
Business Model
Inputs
Financial Capital
Financial resources
Natural Capital
Minerals, water, forest and energy resources
Human Capital
Employees and third parties
Intellectual Capital
Technology: Vale Technological Institute, R&D and innovation and
proprietary technologies
Social Capital
Relationship with priority stakeholders
Manufactured Capital
Logistical structure and infrastructure
Purpose
We exist to improve life and transform the future. Together.
Analysis of risks and opportunities
Governance practices of the Novo Mercado
ESG strategy connected to the
business
Business activities
Exploration and mineral research
Project development and implementation
Operation (Mining / Processing / Logistics)
Mine closure and future land use
Commercialization
Distribution
Vale
Products
Passenger railway
transport
The main impacts
Hover over the items below to read more
Environmental
Protected areas (positive)
Reduced emissions due to higher renewables consumption (positive)
Developing new technologies and solutions (positive)
Decharacterizing dams and other structures (neutral)
Impacts on water, soil and air (negative)
Impacts on fauna and flora (negative)
Social
Employment and income generation (positive)
Knowledge transfer (positive)
Income generation through tax payments (positive)
Social projects (positive)
Land use conflicts (negative)
Fatalities and changed lives (negative)
Impacts to local communities (negative)
Dividends and shareholder value (positive)
Promoting the local economy (positive)
Infrastructure for society (positive)
Migration caused by Vale's presence, increasing the demand for
infrastructure, services and products (neutral)
Payment of taxes and provisions (negative)
Actions that are part of the Comprehensive Reparation
Plan
Structuring socio-economic projects that seek comprehensive reparation and
the well-being of the affected people, in addition to the payment of individual indemnities.
Socio-environmental reparation actions.
Investment in urban infrastructure and public facilities.
Initiatives to improve the quality of life of people from evacuated
territories, to restore, as far as possible, their previous living conditions.
Read more
For information on the progress of the reparation actions in
Brumadinho, click here
Vale's material topics lead the company's ESG agenda. These topics are
connected to the
pillars of our business strategy that directs the focus of our risk management, finding opportunities and developing measures aimed to prevent and/or mitigate negative impacts, in addition to the creation of shared value
with the communities where Vale operates. Find out about the company's 2030 commitments, linked to the UN
agenda:
-
Climate Change
-
Baseline (2017) |
Target |
Result by Dec/2019 |
Result by Dec/2020 |
14,1 MtCO2e
|
Reduce Scope 1 and 2 absolute greenhouse gas emissions by 33% (based
on 2017) by
2030.
Be carbon- neutral in Scopes 1 and 2 by 2050.
Reduce by 15% Scope 3 net emissions by 2035.
|
11% reduction in absolute GHG emissions, Scope 1 and 2, compared to the 2017 base
year.
(As the commitment related to Scope 3 emissions was formalized in December 2020,
monitoring started in 2020).
|
26.6% reduction of Scope 1 and 2 emissions, compared to the 2017 base
year.
18% reduction in Scope 3 emissions, compared to the 2018 base year.
|
-
Energy
-
Baseline (2017) |
Target |
Result by Dec/2019 |
Result by Dec/2020 |
Global: 69% of estimated consumption for 20301
|
Global: 100% renewable electricity consumption
|
Global: 83% of the estimated consumption for 2030 through declarations from
suppliers attesting to the renewable origin of current energy consumption in
Brazil
|
Global: 85%3 of the estimated consumption for 2030, through
declarations from suppliers attesting to the renewable origin of current energy
consumption in Brazil and the future energy of the Sol do Cerrado Project
|
Brazil: 40% of the estimated consumption for 20252
|
Brazil: 100% self-production of renewable electricity by 2025
|
Brazil: 49% of the estimated consumption for 2025.
181 MW of installed capacity
|
Brazil: 62%3 of the estimated consumption for 2025
947 MW of installed capacity
|
1. For the global target, information may vary depending on
changes in the volume and source of electricity consumption projected for 2030, as well as
energy declarations. For the Brazil goal, information may vary due to changes in electricity
consumption projected for 2025 and the projection of hydroelectric generation depending on
hydrological conditions.
2. The future energy of the wind projects being implemented by
partners (Acauã, Gravier, Folha Larga, among others) will only be counted in this indicator when
obtaining the declarations from suppliers attesting the renewable origin of the energy destined
to Vale.
3. Estimated self-production in Brazil in 2025, considering the
additional energy from the wind projects to be destined for Vale and the energy from the Sol do
Cerrado Project. Wind projects and the solar project add 16 pp to the baseline. The increase of
the remaining 6 pp is due to the variation in hydroelectric generation in the current portfolio
due to hydrological conditions.
-
Water
-
Baseline (2017) |
Target |
Result by Dec/2019 |
Result by Dec/2020 |
0,350 m³/t FeEq
|
Reduce the use of fresh water by 10%
|
8.4% reduction compared to baseline
|
8.7% reduction in relation to the baseline
|
-
Forest
-
Baseline (2017) |
Target |
Result by Dec/2019 |
Result by Dec/2020 |
-
|
Recover and protect an additional 500,000 ha of forest areas beyond the company's
borders
|
106 ha
|
53.899,8 ha
|
-
Socioeconomic Contribution
-
Baseline (2017) |
Target |
Result by Dec/2019 |
Result by Dec/2020 |
-
|
Health, education and income generation4
|
Health: 77 Basic Health Units with expanded services and 955 families served with
social methodologies/technologies for access to water and/or sanitation.
Education: 1,599 education professionals trained.
Income generation: 461 entrepreneurs supported.
|
Health: 496 Basic Health Units with expanded services and 955 families served
with social methodologies/technologies for access to water and/or sanitation.
Education: 3,308 trained education professionals.
Income generation: 1.860 entrepreneurs supported.
|
4. Throughout 2020, Vale revised its social positioning with a
focus on becoming an inducer of social capacity in governments, communities and the private
sector, with the aim of directing the company's various investments to meet the needs to develop
territories. Thus, for 2021 onwards, new indicators may be defined for better monitoring by
theme, in order to increasingly contribute to Vale's commitments to sustainable development and
the construction of a New Pact with Society.
-
ESG Gaps – Environmental, Social and Governance
-
Baseline (2017) |
Target |
Result by Dec/2019 |
Result by Dec/2020 |
-
|
Eliminate key ESG gaps in best practices – 63 mapped gaps
|
26
|
37
|
See the full list and the Action Plan for ESG Gaps:
Vale, seeking to improve its ESG practices, revised its list of gaps at the end of 2020,
adding 11 new gaps, in addition to the 52 initially mapped, currently totaling 63 ESG gaps, all to be closed
by 2030.
Learn more
To improve its governance, Vale has been seeking references in the
best national and international practices and has adopted several initiatives in 2020

Formed the Audit Committee
We create this Committee in 2020 to oversee the quality of our financial statements,
internal controls, compliance, integrity and risk management.

Formed the Nominating Committee
This committee was created in 2020 to monitor the quality of the composition of the
Board of Directors, ensuring a balance of experience, technical knowledge and diversity.

Instituted the Compliance Department
The area includes Corporate Integrity, the Whistleblowing Channel and
Internal Audit and reports directly to the Board of Directors.

Terminated the shareholders' agreement
To adapt to the new requirements of the Novo Mercado regulations, we terminated the
agreement with Litela Participações SA, Litel Participações SA, Bradespar SA, Mitsui & Co. Ltd. and
BNDES Participações S.A. (BNDESPAR). The votes, previously owned by the shareholders, are no longer
tied to the agreement.

Extended the performance of CIAE-SB
Understanding its importance, we extended CIAE-SB’s term of the Independent Advisory
Committee for Extraordinary Dam Safety (CIAE-SB) until April 2021.

Document review
In 2020, we also revised our Vale Code of Conduct and the Global Anti-Corruption
Policy.
Read more
Vale's governance structure
Our socioenvironmental programs and plans present goals and indicators connected
to risk management, preventive measures and mitigation of impacts on fauna, flora, emissions, waste, water,
energy, socioeconomic issues and critical social issues. Among the environmental issues, material topics for
Vale include dams, biodiversity, eco-efficiency and climate change.
Mining Dams Emergency Action Plans (PAEBM)
Local communities are involved in emergency preparedness and response processes, carried
out in accordance with GISTM principle 13 (prepare for emergency response to failures in tailings disposal
structures), which include:

Emergency response training with communities in regions exposed to the risk of
damage;

Partnerships with the local Civil Defense to ensure proper conditions in emergency
protocol simulations;

Installation of sirens and alarms in strategic locations;

Teams and communication channels dedicated to community dialogue;

Full support for restoring the living and working conditions of people impacted by
relocation in the event of mandatory removal.
Read more
Read more about PAEBM
Biodiversity
Vale protects or helps protect an area almost 11 times larger than the total area
occupied by our operational units. Click on the map below to find out more details about each
region.
Total protected area:
9.054,65 km²
Climate Change
Vale recognizes that climate change represents one of the greatest challenges facing
society. In order to respond to this challenge, the company is committed to helping to limit the increase in
global average temperature to less than 2°C, as defined in the Paris Agreement.
In 2020, Vale invested USD 81 million in a series of initiatives,
distributed over three main solution routes: energy efficiency and renewable electricity; use of bioenergy;
and electrification and implementation of innovative technologies.
The Vale
Carbon-Neutral Strategy establishes the commitment to:

Become a carbon-neutral miner (Scopes 1 and 2) by 2050;

Reduce Scope 1 and 2 absolute emissions by 33% by 2030, compared to the
base year of 2017, in line with the Paris Agreement;

Reduce Scope 3 net emissions by 15% by 2035, compared to the base year
of 2018;

Adopt a shadow price of USD 50 per ton of of
CO2eq on new projects and investments – already adopted since 2020;

Adopt an internal carbon price (shadow price) of
USD10 per ton of CO2eq, for carbon sequestration in forest restoration
and reforestation projects – already adopted since 2020;

Consume 100% of electricity from renewable sources by 2025 in Brazil
and globally by 2030;

Recover and protect an additional 500,000 hectares by 2030.
Renewable Electric Energy
In the search for leadership in low-carbon mining, we are committed to achieving 100% self-production of electricity from renewable sources in Brazil by 2025 and 100% renewable electricity consumption globally by 2030. As an important contribution to this goal, Vale announced in December 2020 the Sol do Cerrado Project for generating solar energy in the municipality of Jaíba (MG) in Brazil.
In 2020, Vale implemented Smart Energy, an automated system that will manage the
company's overall energy consumption. The challenge for 2021 is to automate 80% of
Vale's energy matrix, ensuring transparency and reliability.
Private Social Investment
Contact
Questions and comments about the Integrated Report should be sent through the Contact
Us.
Click here

Amazon Rainforest
Protected area |
Location |
Ownership |
Area (km2) |
Carajás National Forest
|
Brazil (Pará)
|
ICMBio Partnership3
|
3910,0
|
Tapirapé-Aquiri National Forest
|
Brazil (Pará)
|
ICMBio Partnership3
|
1142,4
|
Itacaiúnas National Forest
|
Brazil (Pará)
|
ICMBio Partnership3
|
1365,9
|
Tapirapé Biological Reserve
|
Brazil (Pará)
|
ICMBio Partnership3
|
992,0
|
Igarapé do Gelado Environmental Protection Area
|
Brazil (Pará)
|
ICMBio Partnership3
|
232,7
|
Carajás Fields Ferruginous National Park
|
Brazil (Pará)
|
ICMBio Partnership 3
|
220,0
|
São Luís Botanical Park
|
Brazil (Maranhão)
|
Exclusive
|
1,1
|
2 Source: State Secretariat for the Environment and Sustainable Development (Semad),
State Forestry Institute (IEF), Government of Minas Gerais.
3 Source: Chico
Mendes Institute for Biodiversity Conservation (ICMBio) Ministry of the Environment.
4 Source: State
Environmental Institute (Inea), Government of Rio de Janeiro.

Atlantic Forest
Protected area |
Location |
Ownership |
Area (km2) |
Cunhambebe State Park
|
Brazil (Rio de Janeiro)
|
INEA Partnership
|
380,5
|
Monument Serra das Torres
|
Brazil (Espírito Santo)
|
IEMA Partnership
|
104,6
|
Biological Reserve Duas Bocas
|
Brazil (Espírito Santo)
|
IEMA Partnership
|
29,1
|
National Forest of Goytacazes
|
Brazil (Espírito Santo)
|
ICMBio Partnership3
|
14,3
|
São Luís Botanical Park
|
Brazil (Espírito Santo)
|
Exclusive
|
0,3
|
Vale Nature Reserve
|
Brazil (Espírito Santo)
|
Exclusive
|
227,1
|
Sooretama Biological Reserve
|
Brazil (Espírito Santo)
|
ICMBio Partnership3
|
278,0
|
Private reserves of natural heritage (RPPN) in the Quadrilátero Ferrífero de
Minas Gerais
|
Brazil (Minas Gerais)
|
Exclusive
|
128,0
|
Protection areas of four small hydroelectric plants (SHPs)
|
Brazil (Minas Gerais)
|
Exclusive
|
3,3
|
3 Source: State
Environmental Institute (Inea), Government of Rio de Janeiro.

Mozambique
Protected area |
Location |
Ownership |
Area (km2) |
Private Protected Area
|
Savanna
|
Exclusive
|
16,7
|

Sundaland
Protected area |
Location |
Ownership |
Area (km2) |
Vale Malaysia Ecological Center (Vale Eco Centre)
|
Malaysia
|
Exclusive
|
2,9
|

Forest and Maquis
Shrubland
Protected area |
Location |
Ownership |
Area (km2) |
Northern Forests Nature Reserve (Forêt Nord Nature Reserve)
|
New Caledonia
|
Government Partnership of New Caledonia 4
|
2,7
|
Pic du Grand Kaori Reserve
|
New Caledonia
|
Government Partnership of New Caledonia 4
|
3,1
|
4 Type of natural vegetation present in the hotspot entitled New Caledonia.
|
|