Suppliers
Vale depends on its supply chain. From railroad tracks to outsourcing, supply management permeates Vale's entire production chain and is strategic to our business.
The success of the operations and projects relies on the agility in purchasing materials and services, the correct choices of items, the inventories and the management of health, safety and sustainability variables by our suppliers. Therefore, our suppliers play a fundamental role in the search for best practices towards sustainable development.
We share with our suppliers the values that guide our actions, such as the priority to life, caring for the planet and valuing people.
Our Management
Requirements to Registration
Our suppliers are managed according to the same compliance standards that are upheld within the Company with respect to social and environmental safety and ethics and integrity aspects. During this process, Vale verifies the history of third-party supplier companies and their partners early in the registration phase, analyzing their compliance with the requirements of Vale's Global Anti-Corruption Program. We also verify public information regarding slave labor sanctions and public data published by the Brazilian Federal Government (CEIS, CEPIM and CNEP), among other criteria. If any irregularity is found, the supplier is not registered and may be deemed disqualified to serve us and, consequently, will not be registered.
During the registration phase of new suppliers, Vale has some initiatives as shown below:
| Initiative |
Description |
|
|
|
|
Supplier’s Code of Ethics and Conduct |
Defining the main guidelines that guide Vale's relationship with its suppliers and subcontractors. Its acceptance by the supplier is a mandatory step before registering the supplier in Vale's register. (Global Initiative) |
|
Global Anticorruption Program |
The Global Anti-Corruption Program is applicable to all employees, officers, suppliers, distributors, consultants, representatives, agents, brokers or any other intermediaries or third parties engaged to represent Vale or to act on behalf of, for the benefit of or in the interest of Vale. (Global Initiative) |
|
Third-party Due-Diligence |
Evaluating the reputational risk of suppliers and their partners. Mandatory phase before registration with Vale, by periodic routine or on demand. Several parameters are evaluated, such as Vale's history, negative media, check on market compliance web portals, among others, for the company and its partners. (Global Initiative) |
|
Environmental licenses and legal requirements |
Compliance with environmental legal requirements, as applicable, to applicable suppliers (specific industries and categories). In certain cases, there may be on-site audits by Vale's Environment department. (Brazil Initiative) |
|
Health and Safety Evaluation |
This document applies to companies (contractors and their subcontractors) in the bidding process and to companies performing controlled activities whose contractual scope includes provision of service. (Brazil Initiative) |
Initiative
Supplier’s Code of Ethics and Conduct
Description:
Defining the main guidelines that guide Vale's relationship with its suppliers and subcontractors. Its acceptance by the supplier is a mandatory step before registering the supplier in Vale's register. (Global Initiative)
Global Anticorruption Program
Description:
The Global Anti-Corruption Program is applicable to all employees, officers, suppliers, distributors, consultants, representatives, agents, brokers or any other intermediaries or third parties engaged to represent Vale or to act on behalf, for or on behalf of Vale. - Global Initiative
Third-party Due-Diligence
Description:
Evaluating the reputational risk of suppliers and their partners. Mandatory phase before registration with Vale, by periodic routine or on demand. Several parameters are evaluated, such as Vale's history, negative media, check on market compliance web portals, among others, for the company and its partners. (Global Initiative)
Environmental licenses and legal requirements
Description:
Compliance with environmental legal requirements, as applicable, to applicable suppliers (specific industries and categories). In certain cases, there may be on-site audits by Vale's Environment department. (Brazil Initiative)
Health and Safety Evaluation
Description:
This document applies to companies (Contractors and their subcontractors) in the bidding process and to companies performing Controlled Activities whose contractual scope includes provision of service. – Brazil Initiative
Supplier’s Periodic Monitoring
Vale also periodically monitors suppliers for social, environmental, humanitarian, performance and governmental aspects.
| Initiative |
Description |
Frequency |
|
|
|
|
|
Local Labor Obligations |
Monitoring contracts with third parties in Brazil regarding labor aspects, minimizing exposure to risks in various aspects such as safety, exhaustive working hours, labor debts (Third Party Contracts Service Center). |
Monthly |
|
Black-list of employers using slavery-like Labor |
Crossing Vale's register of suppliers with the public dirty list of slave labor, published by the Brazilian Ministry of Labor. |
Monthly |
|
Government public sanction list |
Crossing the register of active suppliers of Vale with the public sanction list of Brazil’s Transparency web portal (CEIS, CEPIM, CNEP). |
Monthly |
|
Carbon emissions management program in the value chain |
Monitor and engage key suppliers in managing their emissions through the CPD Supply Chain Program. |
Annual |
|
Public sanctions follow-up (global Sanctioned entities and countries POL-0025-G) |
This policy applies to Vale and its subsidiaries 100% and shall be reproduced by its direct and indirect subsidiaries, in Brazil and in other countries, always respecting the instruments of incorporation and applicable law. |
Quarterly |
|
Supplier Development Index |
Monitor, through an established indicator, the performance of Vale suppliers through five different criteria (technical quality, environmental protection, health and safety, respect for employees and continuous improvement) aiming at transparency and quality in the supplier relationship. |
Biannual |
Initiative
Local Labor Obligations
Description:
Monitoring contracts with third parties in Brazil regarding labor aspects, minimizing exposure to risks in various aspects such as safety, exhaustive working hours, labor debts (Third Party Contracts Service Center).
Frequency:
Monthly
Black-list of employers using slavery-like Labor
Description:
Crossing Vale's register of suppliers with the public dirty list of slave labor, published by the Brazilian Ministry of Labor.
Frequency:
Monthly
Government public sanction list
Description:
Crossing the register of active suppliers of Vale with the public sanction list of Brazil’s Transparency web portal (CEIS, CEPIM, CNEP).
Frequency:
Monthly
Greenhouse Gas Emissions Program (GHGE)
Description:
Listing GHG emissions from active suppliers according to GHG Protocol.
Frequency:
Annual
Public sanctions follow-up (global Sanctioned entities and countries POL-0025-G)
Description:
This policy applies to Vale and its subsidiaries 100% and shall be reproduced by its direct and indirect subsidiaries, in Brazil and in other countries, always respecting the instruments of incorporation and applicable law.
Frequency:
Quarterly
Supplier Development Index
Description:
Monitor, through an established indicator, the performance of Vale suppliers through five different criteria (technical quality, environmental protection, health and safety, respect for employees and continuous improvement) aiming at transparency and quality in the supplier relationship.
Frequency:
Biannual
Impact Management
Carbon emissions management in the value chain
Vale is committed to making its suppliers aware of the issue of climate change and engaging them in improving the management of their emissions. Since 2011, we have encouraged our value chain in emissions management, through a contractual clause and the application of an annual questionnaire on Greenhouse Gases (GHG). Reducing GHG emissions in line with the Paris Agreement is part of Vale's commitments for 2030.
In addition to the target established for emissions resulting directly from its operation (scopes 1 and 2), Vale is committed to also act on indirect emissions, wich resulting from activities related to the production of goods and services necessary for its production itself. The engagement of our suppliers in the management of their emissions and the commitment to reduce environmental impacts are essential to achieve this goal together.
Vale suppliers considered key in terms of emissions in the supply chain are annually invited to participate in the CDP Supply Chain program. CDP is a non-profit organization that operates the global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts. To learn more about the organization, click
here.
To learn more about Vale's actions and goals for reducing emissions, visit our
Climate Change page.
Business Case
InoveCapital
InoveCapital is a web platform that facilitates our suppliers' access to working capital credits and investment in their operations. In this platform, suppliers will be able to view their invoices and request from participating financial institutions the advance payment of invoices or obtain financing to assist in the delivery of goods or services contracted by Vale.
Benefits:
Partilhar Program
Program Objectives
The Partilhar Program aims to contribute to the socioeconomic development of the locations where the company operates, by joining forces with our supply chain. To achieve this ambition, Vale proposes 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 value generation, bringing benefits to suppliers and communities, reinforcing Vale's commitment to people and the new society pact.
Socioeconomic development promoted by the Program intends to:
Promoting job generation in the communities in which we operate
Stimulating local purchases, making new business opportunities
Encouraging the income generation by expanding the wage bill
Stimulating the increase in tax collection
Encouraging voluntary social investment
The IVC – Índice de Valor na Comunidade
To identify the social contribution of suppliers in the communities, Vale created the
IVC – Índice de Valor na Comunidade. The IVC is calculated considering 5 levers, that aim to promote the generation of value in the communities, as shown below:
A multidisciplinary team was developed this methodology based on objective criteria, disclosed to the participants in a transparent manner, and seeks to ensure balance and stimulate competition between companies, regardless of size or origin.
Innovation in Supply Chain Management
Now, Vale's sourcing process has the IVC as an additional parameter for evaluation and decision-making, in addition to the technical and commercial aspects. The inclusion of this index allows the prioritization of business with suppliers that have a greater contribution in the communities where the company operates.
In order to strengthen our local supply chain, in addition to changing the purchasing process, the Partilhar program will provide incentives for training and increasing the competitiveness of suppliers that have joined the program.
For more information about the Partilhar Program click here.
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