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 certified 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 |
| Greenhouse Gas Emissions Program (GHGE) |
Listing GHG emissions from active suppliers according to GHG Protocol. |
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
Greenhouse Gas Emission Program (GHG)
Vale is committed to making its suppliers aware of the issue of climate change and engaging them in improving their emissions management. That's why we created the Greenhouse Gas Emission in the Value Chain Program.
Since 2011, we have been encouraging our value chain in emissions management through training on GHG inventories. In 2012, we pioneered in the country by including a clause in our standard contract that requires us to submit a yearly GHG inventory questionnaire*. In addition, we promote periodic forums to encourage the exchange of experiences and discuss challenges related to the topic.
Business Case
Inove - Supplier Development
Inove is a Supplier Development Program that aims to contribute to the sustainable development of Vale's suppliers and to build a positive legacy in the regions where Company operates.
With the financing, training and business incentive fronts, we seek to increase the competitiveness of the local business community and strengthen our production chain.
Training
Provide training to Vale suppliers in a targeted manner, aiming to improve performance and leave a legacy in the regions where we operate.
Inove works in partnership with development programs of suppliers of class entities (Federations and Trade Associations), contributing with methodologies and content for the training.
Fostering business
Fostering sustainable business through regional diagnostics for supplier identification.
Competitiveness
Increasing the competitiveness of our suppliers through financial tools, products and services with lower costs than those practiced in the market.
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:
