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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:

Greater offer of credit lines;
Simplicity and agility in obtaining resources;
Strengthening the company's working capital;
Reduction in interest rates, stimulated by competitiveness among multiple financial institutions.

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