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Impact to Communities

Vale’s social activities are based on the principles and guidelines of the Code of Conduct, on the Anti-Corruption, Human Rights and Sustainability policies, as well as on the Sustainability Guidelines. According to our guidelines, Vale leaders must contribute to the local stakeholders management process, ensuring the identification, engagement and monitoring of relationships with these publics.

General guidelines for the relationship with local communities:

Performance

In 2018, 63% of our operations carried out social impact assessments and 78% carried out environmental impact assessments. Approximately 38% of the operations publicly disclosed the results of social impact assessments, while 50% of operations publicly disclosed the results of their environmental impact assessments. In the same year, 72% of our operations implemented local development programs based on the local communities’ needs, and 75% of them encouraged the creation of committees or social dialogue groups.

We developed more than 350 Relationship and Investment Plans with local communities during 2018, linked to impact management or local development. In one year, between 2017 and 2018, we recorded a 33% reduction in the average response time to communities and a 46% increase in handling of issues , as well as a 69% decrease in the number of interdictions of Vale’s operations.

Relationship with Communities

The relationship with communities is guided by Vale's Social Action model, built and implemented through the management of human rights processes, social and environmental risks and impacts, community health and safety, involuntary removal, relationships with local communities, relationships with indigenous peoples and traditional communities, actions to support local development, social and environmental investments and conflicts with communities. Guidelines and documents are established and disseminated for each of these processes.

As one of our community engagement strategies, we have adopted the design and implementation of the Community Relationship Plans (PRC). The PRC principle is the mobilization and social participation in the definition and prioritization of the social actions to be implemented in the communities.

Community Engagement
In order to monitor the Community Relationship Plans, community relationship teams establish a systematic routine of participatory meetings to monitor the implementation of actions, evaluating the adherence and effectiveness of the results with the community. This follow-up is recorded in the Stakeholders, Demands and Issues System (SDI).

Performance Goals

According to data consolidated in August 2020, Vale has relationships with 1,422 communities, distributed among 124 municipalities in Brazil. Of these, 416 are priority communities for engagement. The goal is for all priority communities to have a PRC developed. Currently approximately 42,3% of these communities have plans in 2020.

Grievance Mechanisms

What is it?

It is a formal process of Vale for global interactions management, which can be used by any stakeholders to communicate/contact with the company, and it requires a response or an action from the company.

Organization

Composed of several listening channels, such as Community Relationship Professionals, Ombudsman, Social Medias, Talk to us and 0800 phone lines. Relationship teams communicate directly with their audiences, enabling greater efficiency and agile in the processes of mitigation and resolution of potential conflicts.

Guiding Principles and Pact with Society

The Mechanism is guided by the following UN guiding principles on Business and Human Rights and the ICMM:

For the construction of a new pact with society, it is essential to consolidate dialogue strategies, reinforcing the importance of ensuring more effective listening and response channels.

Management Steps

Channels

Types of Interactions

The community’s interactions are captured primarily by the relationship teams, registered in the Stakeholders,Demands and Issues System (SDI) and treated, involving different areas of the company, according to the complexity and type of the interaction.

Indicators' Performance

Vale, recognizing the Community's perception of its operations’ impacts, adopted in its performance management model the reporting of social indicators related to grievances. Below are the graphs’ models and tools used by all management levels of the company to monitor grievances.

Heat Map - Management tool for the executive board

Communities Health and Safety

Community Health and Safety actions contribute to the construction of risk perception by communities and, consequently, to the consolidation of a safety culture in the territories. These initiatives, mostly education and social mobilization, are preventive in nature and are associated with risk management controls and / or operational impacts that directly or indirectly affect neighboring communities.

Risk management

Vale's risk management model ensures that the health and safety of communities are taken into account in risk assessment processes at operational and strategic levels (business risks). In addition, existing procedures and controls are implemented to prevent and mitigate impacts and risks to the health and safety of communities, assessing their suitability and taking corrective action whenever necessary. The actions, whether operational and / or strategic (relationship), are aligned so that the implementation and results are legitimized and recognized by the communities.

Performance Goals

Vale monitors and records all occurrences and/or accidents involving neighboring communities, and annually sets targets and indicators for conducting education campaigns and relationship actions in locations that interact with our operations.

Perspective

Based on the principles of Vale's Social Action Guide, the Communities Health and Safety Plan is in process to be standardized, which aims to define guidelines and standards throughout Brazil for actions aiming to prevent accidents and implement a culture of safety in neighboring communities.

Resettlements

The involuntary removal process aims to manage physical and/or economic displacement, people, families, communities and/or social groups in a situation of socioeconomic vulnerability, due to our activities.​
For Vale, the Involuntary Removal process must ensure the restitution of life conditions and productive and economic living standards at equivalent or better levels compared to those verified before the start of the process, as well as the respect for human rights.

In Brazil and Mozambique, this process has been standardized since 2012, in compliance with international standards and guidelines, such as those established by the United Nations (UN) regarding the right to adequate housing, and performance standards from the International Finance Corporation (IFC). In Mozambique the resettlement is governed by a specific law since 2012.

The guidelines that regulate the Resettlement and Social Compensation issues at Vale are:

  • Seek alternatives to avoid or minimize the need for physical and/or economic resettlement;
  • Consider all people from the area of interest and host area;
  • Involve relevant public authorities, organizations and social movements, at the appropriate time for each phase of the process;
  • Consider public policies, government plans and programs, as well as local political and cultural characteristics;
  • Promote permanent dialogue and ensure the participation of affected people throughout the process, ensuring the proper handling of complaints and claims;
  • Collectively develop the Resettlement and Social Compensation Plan together with the affected people, families, communities and/or social groups, focusing on the consensus among them and Vale for the joint definition of the negotiation framework;
  • Identify and acquire host areas that offer economic and production development conditions and real estate value appraisal equivalent to or higher than the current area/real estate;
  • Avoid monetary compensation due to the risks of worsening living conditions and violation of Human Rights;
  • Apply transparency and fairness in dialogue processes to formalize individual terms of agreement, based on the the Resettlement Plan negotiation framework;
  • Promote the host area division plan and the replacement of the productive and economic activity in a collaborative manner as an enabler of technical capacitation and recovery of community relations.
  • Ensure access to public and community services after relocation, prioritizing the adequacy of the existing public and community facilities, as well as trying to meet the demands of host communities;
  • Promote the recovery of economic and production development through the provision of inputs (when applicable) and technical training, as well as opportunities for the reorganization of community relations and organizations;
  • Monitor the levels of quality of life and productive development after the relocation and, whenever required, take measures to ensure that the resettlement process objectives are met.

In the cases of involuntary resettlement of vulnerable people, Vale implements a process that involves, in short, the following phases and activities:

  • Previous identification of the need to remove people in situations of socioeconomic vulnerability;
  • Planning of the involuntary resettlement process, defining activities, deadlines, roles and responsibilities among Vale's internal areas, the need for hiring services, the preparation of teams, the definition of stakeholder engagement strategies and structuring research instruments and a database;
  • Execution of an integrated diagnostics, which considers the qualified participation of those affected in the identification of the various aspects related to their way of life, productive and economic performance, work, as well as socio-organizational, socio-cultural and land tenure aspects;
  • Preparation of the Resettlement Action Plan (RAP), considering care groups, care alternatives, structuring the host area and other compensation measures, as well as care initiatives for people and families who need special support, among others;
  • Negotiations with interested parties, aiming to conclude the terms of adherence to the involuntary resettlement process;
  • Implementation of the Resettlement Action Plan;
  • Preparation and execution of the resettlement;
  • Post-removal monitoring and adoption of corrective actions, if necessary.

Brazil:

In Brazil, between January 2013 and January 2019, Vale carried out involuntary resettlement processes involving 988 families, of which 852 families were resettled due to the logistics and operation of the Northern System. Among these families, 758 families received simple and assisted indemnity, 101 families were assisted in resettling and 129 were assisted in other ways, such as real estate exchange and social rent.

Social Legacy

In our Sustainability Policy, we are committed to working in an integrated manner with stakeholders in order to contribute to the building of a positive legacy for future generations, considering social, cultural, environmental and economic aspects. In addition to monitoring and anticipating trends in global sustainability issues developing, adopting, and sharing best practices, we aim to continuously improve our social and environmental performance.

Support for local development consists of planning, executing, monitoring social investment actions, seeking continuous process improvement, resource use enhancement results leveraging and maximization of the positive impacts of mining by stimulating local content and shared value. Vale’s areas, together with Vale Foundation and other entities, contribute to the promotion of partnerships between sectors with the purpose of enhancing the opportunities for territorial development, supporting the construction of the legacy that Vale intends to leave to the communities.

For us, obtaining and maintaining the Operating License is closely related to the generation of a positive legacy for the territories, to an effective management of risks and impacts as well as to a structured relationship with stakeholders.

The guidelines that regulate our activities are:

Policies and Procedures

Business Case

Na Trilha dos Valores Project

The project proposal is a guidance for students and teachers of elementary schools neighboring the railroad about how to live safely with the railway, and thus, make them aware of the precautions needed when approaching the railroad, especially when a train is passing by.

The main focus is to work the school community knowledge and involvement in issues related to railway safety through a playful methodology, involving dynamics such as storytelling railway games and guided visits to the Vale Museum, among other actions.

The aim is, through dialogue and raising of awareness, to seek to reduce the number of railway incidents in these locations, which can range from incorrectly disposing of garbage to stoning and movement of people on or near the railroad. The project so far has had 3,203 participants in the municipalities of Cariacica, Fundão and Serra.

“This project has represented a lot in the life of the Maria Magdalena Pisa school, as it aims to provide our students with this wonderful tour. The activities carried out at the school teach us how to value the environment and the railway safety, since our school is adjacent to Vale’s railway line”, said Sérgio Ricardo Barbosa Wetler, teacher.

Business Case

Vale Cuidar Project

It is an initiative that invests in empowering adults to enhance the development of children from 0 to 5 years. Workshops, seminars and training activities are carried out so that adults that interact directly with a child may increase their knowledge in matters related to early childhood and in the repertoire of interventions and children’s plays, in their professional or living space.

After 5 years of project:

In 2019, the project had the Metropolitan region of Vitória, Resplendor and Tumiritinga as participant municipalities. About 750 people were involved in the formation process, while over 5,000 kids will benefit from the playing spaces. The project is related to the SDG Health and Wellfare.

Business Case

Maria Ortiz Community Relationship Plan – Colatina/ES

In 2019, among the Relationship Plans carried out, we highlight the Maria Ortiz, a community of Colatina/ES, plan. This fishing community has about 60 families living between the railway and the Doce River. The participative methodology was held in 3 community meetings, where residents mapped out the main demands and opportunities of the community. Since then, the group identified possibilities for social initiatives that Vale could develop together with the community to improve the residents' quality of life. The actions were prioritized in a 3-year plan, starting with leisure activities for children and gymnastics for the elderly, a sports court and popular gym. As a first action in 2019, prior to the the equipment construction works, we held two leisure mornings. About 50 residents attended the meeting cycle.

"Vale interacted with the residents in a meeting, where they were taught how to demand improvements for the neighborhood through collective opinion. On September 1st, the first results arose: the residents collaborated and we had 5 hours of joy and fun for groups of all ages of the Ortiz community", said Claudio Marques dos Santos, president of the Maria Ortiz Residents Association – AMMOR.

business case

Partilhar Program

The Partilhar Program aims to promote a socio-economic development of the locations where we operate by joining forces with our supply chain. To make this ambition viable, Vale created The IVC – Índice de Valor na Comunidade an innovative methodology that aims to recognize and value the suppliers that contribute most to the social progress of each region.

This initiative intent to enhance the generation of value, bringing benefits to suppliers and communities, reinforcing Vale's commitment to people and the new pact with the society.

For more information about the Partilhar Program click here.


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