Integrated
Report
2021
Presentation
Vale
Governance and Compliance
Manufactured Capital
Financial Capital
Intellectual Capital
Natural Capital
Human Capital
Social Capital
Critical Analysis
Assurance
GRI Index
Credits
Summary
PHOTO: RICARDO TELES
03 Letter from the Chairman
05 Letter from the CEO
07 Reporting Process
08 Materiality
19 Vale
20 Profile
21 Business Model
22 Purpose and Values
23 Strategic Pillars
27 Focus on Reparation
36 Dams
54 Manufactured Capital
56 Production and Sales Highlights in 2021
56 Divestments in Non-core Assets
96
98
99
Social and Relationship Capital
Social Ambition
Human Rights
100
Indigenous Peoples and Traditional Communities
57 Financial Capital
59 Economic-financial Performance
61 Intellectual Capital
63
Innovation
66 Vale Institute of Technology (ITV)
67 Natural Capital
70 Climate Change
102
107
110
Local Communities
Private Social Investment
Suppliers and customers
112 Stakeholder Engagement
117 Participation in Entities and Associations
118
Independent Readers' Letter
122
Independent auditor's limited
assurance report
124
GRI Content Index
150 Credits
43 Governance and Compliance
44 Governance Structure
77 Biodiversity
80 Ecoefficiency
48 Risk Management
50 Compliance
82 Mine Closure and Future Use
84 Human Capital
86 Occupational Health and Safety
89 Covid-19
90 People
93 Diversity, Equity and Inclusion
Presentation
1. Letter from the Chairman
2. Letter from the CEO
3. Reporting Process
4. Materiality
2
2
Presentation
Vale
Governance and Compliance
Manufactured Capital
Financial Capital
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Letter from the Chairman GRI 102-14
Corporate governance is one of the foundations
for leveraging the changes that Vale needs,
especially after the Brumadinho tragedy, and for
addressing challenges related to important issues
that have the greatest impact for the company
and society, such as dam management, climate
change, human rights, diversity and many others.
In November 2020, the company took an important
step towards an organizational structure that is
aligned with these demands and challenges, by
terminating the Vale Shareholders' Agreement and
moving to the "corporation" model, with dispersed
capital, without defined control.
The change was structural and encompassed
changes to Vale's Bylaws, which included
an independent majority on the Board
of Directors, the adoption of the Lead
Independent Director role, and the election
of the Chairman and Vice Chairman of the
Board directly by shareholders. During the
2021 General Meeting, 13 members were
elected by multiple votes, including eight
independent members, compared to three in
2020. Of the total, eight were appointed by
the Vale Nomination Committee and four by
shareholders. The employee representative
director is elected in a specific vote.
PHOTO: PERSONAL ARCHIVE
Vale's structural change in corporate governance
elected a Board of Directors with eight
independent members
José Luciano Duarte
Penido, Chairman of
the Board of Directors
of Vale
Presentation
1. Letter from the Chairman
2. Letter from the CEO
3. Reporting Process
4. Materiality
3
3
Presentation
Vale
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As a reflection of this change, we now have
a Board of Directors that is committed to
consolidating solid governance following the
best international practices for a Corporation.
The Board has given full attention to the cultural
evolution of the company, prioritizing Vale's
strategic reorientation and our commitment to
the ESG agenda. A new Innovation Committee
has given more visibility to innovation and the
application of new technologies in processes,
products and our climate agenda. This formation
has led to rich and plural discussions, guided by a
necessary critical view of Vale, in order to mitigate
risks and maximize the company's delivery of value
to its stakeholders.
We also monitor on a regular basis Vale's Global
Integrated Risk Map, and we follow closely the
progress of the Dams Decharacterization Plan.
There has been an advance of about 23% in the
decharacterization of structures and, by 2022, the
forecast is to decharacterize five more upstream
structures, reaching 40% of the plan. The plan also
foresees the decharacterization of all upstream
structures in Brazil by 2035.
Another topic of attention has been Vale's
climate strategy, which includes commitments
aligned with the Paris Agreement, such as
being carbon neutral by 2050 in Scopes 1
and 2, considering projects and technologies
focused on the reduction of greenhouse gas
emissions and decarbonization. We increased
our competitiveness in the iron ore business by
developing the high-quality product portfolio with
innovative and disruptive products such as the
"green briquette". We set a Scope 3 climate target
and are actively engaging in partnerships with
customers to decarbonize the global steel industry.
Also, in the year, as a result of the structural and
cultural changes that Vale has been going through,
the company designed its new Social Ambition
- focused on the creation of a positive legacy
for society. This is a vision that aims to prevent
repetition of the damage, such as that caused
by Vale at Brumadinho, to encourage resilient
communities, and to work in the direction of
sustainable mining.
We also focused on continuing our strategy of
divesting non-core assets, highlighting the binding
agreement signed for the sale of the Moatize
coal mine and the Nacala Logistics Corridor. We
are close to completing the full reshaping of our
business portfolio, focusing on opportunities in
Iron Ore, Copper and Nickel.
Speaking of the future, in 2022 Vale's Board of
Directors will be elected at a General Shareholders'
Meeting. Continuing the evolution observed
in 2021, we have set a Nomination Committee,
composed mainly of independent directors, to
structure the process for nominating candidates.
The continuity and complementation of the
mandate of the collegiate elected at the 2021
AGM was recommended as fundamental for the
consolidation of Vale's new governance.
We know that we have many challenges to
address, and we are attentive to the issues of
greatest impact for Vale and its stakeholders, to
seek safe productivity and to promote confidence
in the operation of our assets, as well as to
the challenges related to the macroeconomic
and geopolitical environment, in particular the
escalating conflict between Russia and Ukraine.
Finally, despite the challenges, 2021 was a year
of important advances, especially in terms of
strengthening the governance structure necessary
to ensure a better Vale, where I would like to
highlight the creation of the Executive Vice-
presidency of Sustainability. For the coming years,
we will continue to be attentive to the demands
of our stakeholders and committed to make the
necessary transformations for Vale to represent
to everyone, and especially to society, a safe and
reliable company, operating under the concept of
sustainable mining.
José Luciano Duarte Penido
Chairman of the Board of Directors of Vale
Presentation
1. Letter from the Chairman
2. Letter from the CEO
3. Reporting Process
4. Materiality
4
We are attentive to the pursuit of safe
productivity and to promote
confidence in the operation of assets
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Vale
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Letter from the CEO GRI 102-14
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Eduardo Bartolomeo
Vale CEO
We are living a moment of deep transformation
of the world, of mining and of Vale. On this
journey, we seek to walk together with society,
with responsibility, transparency and coherence.
We arrive at places uninvited, so, in addition to
mitigating the negative impacts, we want, as our
social ambition states "To be a partner company in
the development of resilient communities, engaged
in relevant issues to humanity and committed to
sustainable mining".
January 25 marked three years since the collapse of
dam B1, the saddest day in our history. The tragedy,
which will never be forgotten, caused the death
of 270 people and several socio-environmental
impacts, and made evident the need for us to
learn together from everything that happened, to
transform ourselves and assume the commitment
that tragedies like this do not happen again and
that no life are lost in our company.
Thus, in 2021, we settled an agreement with the
Justice Institutions and the State of Minas Gerais,
aiming at the continuity of the reparation initiatives
that have been carried out since the occurrence of
the tragedy, in 2019, with an estimated amount of
BRL 37.7 billion. In addition to this, more than 11.4
thousand people have already been indemnified,
with individual and labor agreements signed.
Regarding dam safety, a critical point in our
operations, we had important advances during
the year. We updated our plan to decharacterize
and eliminate upstream structures, which now
includes 30 geotechnical structures, 100% of the
portfolio of dams and Tailings Storage Facilities
(EARs in Portuguese), of which seven have already
been decharacterized since 2019. With this our
commitment was also updated: decharacterize 60%
of upstream dams in Brazil by 2025, 90% by 2029
and 100% by 2035. We completed the construction
of downstream containment structures for all dams
at emergency level 3.
Regarding the critical point of dam safety,
we concluded the decharacterization of the
seventh upstream dam since 2019
Presentation
1. Letter from the Chairman
2. Letter from the CEO
3. Reporting Process
4. Materiality
5
5
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We advanced in the implementation of solutions
and technologies for monitoring, using radar,
satellite images and drones to follow conservation
status and soil displacement, among other control
technologies. We seek to advance in the use
of tailings to produce new materials, fostering
the circular economy, and in natural humidity
processing as a substitute for wet processing.
Among the themes of greatest impact and influence
at Vale are contributions to the fight against climate
change. Our goal is to zero our net emissions by 2050
(Scopes 1 and 2), and to reduce Scope 3 emissions by
15% by 2035. The efforts of our low carbon agenda
contributed to our recognition as one of the leading
companies in the Climate Change Program at the
CDP Latin America Awards 2021. In the same year,
we published our first report on climate change, in
line with the Task Force on Climate-related Financial
Disclosures (TCFD).
In addition to investing in sustainable products, such
as the "green briquette", we continued our strategy of
divesting non-core assets in 2021. As for productivity,
we recorded a 5% increase in Iron Ore production,
still below expectations for the period, due to the
lower-than-expected performance at S11D (our
largest mining complex, located in the municipality
of Canaã dos Carajás, Brazil) and we had impacts on
base metals production due to the employee strike in
Sudbury, Canada, for about two months. At the time,
Vale continued negotiations for ratification of a new
agreement, signed in August 2021.
We recorded pro-forma adjusted from continuing
operations EBITDA of USD 31.3 billion, USD 13.8
billion higher than the previous year, due to higher
iron ore and pellet sales volumes and and the prices
charged, which also contributed to a USD 15.0 billion
increase in net operating revenues from continuing
operations, which totaled USD 54.5 billion in 2021.
Payments for taxes and royalties totaled USD 7.7
billion and our investments totaled USD 5.2 billion in
the year, of which USD 4.2 billion were dedicated to
the maintenance of operations.
We have defined our social ambition with three
priority pillars - sustainable mining, resilient
communities, and global causes
With three priority pillars - sustainable mining,
resilient communities, and global causes - we
define our social ambition with commitments
related to creating social value, promoting
education, health and income generation, and
protecting human rights. More than projects,
we want to articulate alliances and promote
structuring programs capable of contributing
to social justice and to the autonomy of
communities.
Regarding these aspects, from the management
point of view, we reached 100% of Vale's
operations with risk assessment for human
rights violations. We also undertook external due
diligence in all operations and critical projects in
three-year cycles. Also, to ensure Human Rights,
with the understanding that mining can only
be carried out with Free, Prior and Informed
Consent, and with legislation that allows and
adequately regulates the activity, we have
renounced all our mining processes on indigenous
lands in Brazil, which includes requirements for
research and mining.
Strengthening a culture oriented to diversity,
equity and inclusion is a priority. We anticipate
to 2025 our commitment to double the
representativeness of women in our workforce
(from 13% to 26%), we have established the goal
of reaching 40% of leadership in Brazil made up
of black people by 2026, and we have strengthened
our anti-racist positioning. Also as part of the
cultural transformation process experienced by
the company, our Whistleblowing Channel was
restructured, with a 33.8% increase in the number
of reports received. All confirmed violations
triggered correction plans.
In socioeconomic expenditures in the territories, we
spent USD 473.5 million on social actions. Through
the Vale Foundation, our initiatives impacted more
than 860 thousand people in 50 municipalities in
six Brazilian states. In addition, since 2020, we have
donated over USD 153 million to governments and
institutions in Brazil and abroad for Covid-19 related
humanitarian aid actions.
In 2022, we will complete 80 years of operation.
Over these decades, we have learned that our role
goes beyond mining and, for this reason, in all of
Vale's decisions, people are at the center. We seek,
as our purpose says, to improve lives and transform
the future. Together.
Eduardo Bartolomeo
Vale CEO
Presentation
1. Letter from the Chairman
2. Letter from the CEO
3. Reporting Process
4. Materiality
6
6
Presentation
Vale
Governance and Compliance
Manufactured Capital
Financial Capital
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Natural Capital
Human Capital
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Reporting Process
In this second year of the Integrated Report,
referring to the period between January 1 and
December 31, 2021, we share our learnings,
challenges and advances the result of reflecting
on and listening to our different stakeholders.
This document provides indicators, management
approaches, and accountability on relevant
environmental, social and governance topics,
according to our materiality matrix (see
Materiality). The information comprises the
companies over which Vale has operational control
and their activities identified on Form 20-F.
GRI 102-45, 102-46, 102-49, 102-50
The document preparation is aligned with
the guidelines of the International Integrated
Reporting Framework (Value Reporting
Foundation). This report has been prepared
in accordance with the GRI Standards:
Comprehensive option, and includes the Mining
and Metals Sector Supplement. We report our
efforts to adhere to the Mining Principles of
the International Council on Mining and Metals
(ICMM), of which we are an active member. This
report and its appendices also include indicators
from the Sustainability Accounting Standards
Board (SASB), the Task Force on Climate-related
Financial Disclosures (TCFD), the World Economic
Forum (WEF) key metrics, and the United Nations
(UN) Sustainable Development Goals (SDGs).
PwC performed limited assurance on the report
according to the Assurance Report on page 122.
The Integrated Report 2021 has been checked
and approved by the Executive Committee, the
Sustainability Committee, and the Board of
Directors.GRI 102-32, 102-54, 102-56
We want to hear from you. Contact us to send
questions, criticism and comments about this
publication through the Contact Us channel.
GRI 102-53
More information about Vale's results is available at:
• 20-F, Report from Administration, Tax
Transparency Report and Reference Form
• Report of Governance
• ESG Portal
• Reparation Report
• Other editions of Vale's sustainability reports
GRI 102-51, 102-52
Conversion adopted for the dollar
amounts published in this report:
throughout the report, the amounts in
Brazilian reais were converted to USD at
the rate of BRL 5.39, with the exception
of the financial disclosure figures, already
published in other Vale documents.
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Ponta da Madeira
Maritime Terminal,
in the North Port.
Ore yard
Subsequent event
On April 28, 2022, the U.S. Securities and
Exchange Commission (“SEC”) filed suit
against Vale in the U.S. District Court
for the Eastern District of New York,
alleging that certain Vale disclosures
violated U.S. securities laws. The lawsuit
focuses on disclosures related to Vale’s
dam safety management prior to the
tragic dam failure in Brumadinho, Minas
Gerais, Brazil in January 2019. Vale denies
the SEC’s allegations, including the
allegation that its disclosures violated
U.S. law, and will vigorously defend
this case. The Company reiterates the
commitment it made right after the
rupture of the dam, and which has
guided it since then, to the remediation
and compensation of the damages
caused by the event.
Note 1: This document may include statements that present Vale's current expectations regarding future events or results. All
forward-looking statements involve various risks and uncertainties. Vale cannot guarantee that such statements will prove
to be accurate. These risks and uncertainties include, among others, factors related to: (a) countries where Vale operates,
especially Brazil and Canada; (b) the global economy; (c) capital markets; (d) mining and metals prices and their dependence
on global industrial production, which is cyclical in nature; (e) the high degree of global competition in the markets where Vale
operates; (f) mining and tailings storage operations; and (g) the estimation of mineral resources and reserves, their exploration
and the development of mining facilities, our ability to obtain or renew new licenses, and the depletion and exhaustion of
mines and mineral reserves and resources. For additional information on factors that may give rise to results different from
those estimated by Vale, please consult the reports filed by Vale with the U.S. Securities and Exchange Commission (SEC), the
Brazilian Securities and Exchange Commission (CVM) and, in particular, the factors discussed in the sections "Forward-looking
Statements" and "Risk Factors" in Vale's Annual Report Form 20-F."
Presentation
1. Letter from the Chairman
2. Letter from the CEO
3. Reporting Process
4. Materiality
7
7
Presentation
Vale
Governance and Compliance
Manufactured Capital
Financial Capital
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GRI Index
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ESG Databook
See the ESG Databook, an appendix
of this report, including GRI
Standards content; the Sustainability
Accounting Standards Board (SASB)
Metals and Mining segment; the Task
Force on Climate-related Financial
Disclosures (TCFD); the World
Economic Forum (WEF) key metrics;
and the Sustainable Development
Goals (SDGs), as well as adherence
to the Mining Principles of the
International Council on Mining
and Metals (ICMM). The basis of
preparation cited in the Assurance
Report is in the Databook as well.
Materiality
Our materiality matrix was updated in 2021
according to the GRI Reporting Framework and
International Framework guidelines. The
process involved the identification of priority
topics that significantly impact the organization's
value creation in the short, medium and long
term, and prioritization of relevant themes by the
company's main stakeholders. The review process
can be summarized in four major phases:
Phase 1
Document analysis and review of material and
emerging topics identified in the 2020 cycle:
sustainability ratings, the World Economic Forum
global risk report, sector trends studies, the Global
Compact progress report, and critical analysis of
Vale's 2020 reporting by the World Business Council
for Sustainable Development (WBCSD);
Phase 2
Evaluation of continuous engagement channels:
a survey of the main stakeholder demands,
identified by structured engagement channels that
already exist in the company, and consolidation of
the inputs obtained;
Phase 3
Strategy and impact vision: evaluation of
documents relating to Vale's strategy and
benchmarking studies of companies in the mining
and metals sector;
Phase 4
Broad quantitative and qualitative consultation: a
quantitative questionnaire was sent to stakeholders
and interviews were conducted with representatives
from academia, subject matter experts, local
communities, institutions, and investors.
For each topic, GRI content, indicators from the
Metals and Mining segment of the Sustainability
Accounting Standard Board (SASB), and Sustainable
Development Goals (SDGs) were associated. The
2021 materiality review process was validated by
the Sustainability Committee. GRI 102-21, 102-29, 102-46
To prioritize most
relevant topics,
1,192 people were
consulted
Through consultation, we captured
a total of 1,192 contributions, 910
from the internal public and 282 from
the external public, considering the
following stakeholder groups: GRI 102-
21, 102-42
• Employees and contractors
• Class associations or entities
• Local community
• Civil society
• Academy or experts
• Suppliers
• Non-governmental organizations
• Government/regulatory bodies
• Private companies not linked to Vale
• Investors
• Customers
• Traditional communities or
indigenous peoples
• The press
• Mining companies
• Capital markets
Presentation
1. Letter from the Chairmann
2. Letter from the CEO
3. Reporting Process
4. Materiality
8
8
Presentation
Vale
Governance and Compliance
Manufactured Capital
Financial Capital
Intellectual Capital
Natural Capital
Human Capital
Social Capital
Critical Analysis
Assurance
GRI Index
Credits
Material Topic: Dams GRI 102-47
Scope
Correlated
Indicators
• Mineral waste
• Dam risk
management
• Decharacterization
or elimination of
dams
• Emergency
response
• GRI 102-15 | 103-1,
103-2, 103-3 | G4
MM3
•SASB EM-MM-
150a.1, SASB EM-
MM-150a.2 and SASB
EM-MM-150a.3
• ODS
12
3 6 9
Risks
Opportunities
Goals
Advances
• Dam rupture
• Technologies for
• Risk management: 100% of dams and tailings storage
• 100% of the Tailings
• Socio-
environmental
impacts
• Evacuation of
territories
less dependence on
dams
• Byproducts from
tailings
facilities portfolio Hazard Identification and Risk Analysis
(HIRA) by the end of 2022; 100% connected to Vale's
Integrated Business Risk Management (ERM)
• 100% of tailings facilities operated with potential
consequences "extreme" or "very high" in compliance
with the GISTM (Global Industry Standard on Tailings
Management) by 2023
• 100% of tailings facilities in compliance with the GISTM by
2025
• Dam decharacterization plan: 60% of upstream dams in
Brazil decharacterized by 2025, 90% by 2029, and 100% by
2035
Improvement
Points
• Decrease the number
of structures with
emergency levels 1, 2
and 3
• Overcome the
technical challenges
to decharacterize/
eliminate upstream
dams in the shortest
possible time
Storage Facilities (EAR)
with extreme consequence
ratings from the Church of
England's Tailings Storage
Facilities Disclosure list have
been assessed by HIRA risk
management program
• Dam Decharacterization
Plan: 23% of the program
completed in 2021,
and the schedule for
decharacterizing all of
its upstream structures
in Brazil has been
renegotiated with the
public agencies
• All dams at emergency
level 3 with downstream
containment structures
built
What do stakeholders
want to know?
Stakeholders are interested in the reparation measures in
Brumadinho and evacuated areas and Mariana (see more
in Focus on Reparation) and how Vale has been working to
prevent the recurrence of this type of event.
Directly and/or indirectly impacts all Vale's operations and society. GRI 103-1
Presentation
1. Letter from the Chairmann
2. Letter from the CEO
3. Reporting Process
4. Materiality
9
Presentation
Vale
Governance and Compliance
Manufactured Capital
Financial Capital
Intellectual Capital
Natural Capital
Human Capital
Social Capital
Critical Analysis
Assurance
GRI Index
Credits
Material topic: Governance and Compliance GRI 102-47
Scope
Correlated
Indicators
• Governance structure
• Risk management
• Fight against corruption
• GRI 102-15 | 103-1, 103-2,
103-3 | 205 | 206 | 307 |
406 | 419
• SASB EM-MM-510a.1.
• Socio-environmental and
economic compliance
• ODS 16
• Cybersecurity
Improvement
Points
• Increase gender and racial
diversity on the Board of
Directors
Risks
Opportunities
Goals
Advances
• Eliminate main ESG gaps
in relation best practices
• Market risks
• Cultural transformation
• Innovation and new
technologies
• Operational risks
• Legal and tax risks
• Mergers, acquisitions and
divestments
• Abusive and
discriminatory practices
• Strategic, financial and
cyber risks
• Changing laws and
regulations
• Of 63 gaps mapped as
of 2019, 54 have already
been completed, with 17
in 2021
• Held Board of Director
elections in 2021: of the
13 full members elected,
8 are independent
• Created the position
of Executive Officer of
Sustainability
• Revised corporate
policies
• Created the position
of Executive Officer of
Strategy and Business
Transformation
What do stakeholders
want to know?
Stakeholders are interested in the Board composition
process, the measures we are taking for independent
and transparent decision making and the alignment
between our speech and practice.
Impacts, directly and/or indirectly, all of Vale's operations and stakeholders. GRI 103-1
Presentation
1. Letter from the Chairmann
2. Letter from the CEO
3. Reporting Process
4. Materiality
10
Presentation
Vale
Governance and Compliance
Manufactured Capital
Financial Capital
Intellectual Capital
Natural Capital
Human Capital
Social Capital
Critical Analysis
Assurance
GRI Index
Credits
Material topic: Climate Change GRI 102-47
Scope
Correlated
Indicators
• Energy consumption and
• GRI 102-15 | 103-1, 103-2,
efficiency
• Greenhouse gas
emissions
• Risks and opportunities
related to climate change
103-3 | 201 | 302 | 305
• SASB EMMM-110a.1,
SASB EM-MM-110a.2
and SASB EM-MM-130a.1.
• ODS 7 13
Risks
Opportunities
Goals
Advances1
• Transition risks: changes
in the demand pattern,
changes in public policies to
restrict emissions (including
carbon taxing), and
reputational risk, among
others
• Physical risks: increase
in average temperature,
extreme weather and sea
conditions
• Develop of
decarbonization
solutions
• Use proprietary
technology to offer
more premium
products
• Reduce Scope 1 and 2
emissions by 33% by 2030
• Use 100% renewable
energy in Brazil by (2025)
and globally (2030)
• Achieve net-zero Scope 1
and 2 emissions by 2050
• Reduce Scope 3 net
emissions by 15% by 2035
• Improve 5% of the global
energy efficiency indicator
from the 2017 baseline by
2030
• Reduced Scope 1 and
2 emissions by 24%
compared to 2017
• 98% renewable energy
in Brazil, in relation
to the estimated
consumption for the
year 2025, and 88%
globally, in relation
to the estimated
consumption for the
year 2030
• Reduced Scope 3
emissions by 15%
compared to 2018
Improvement
Points
• Assess the alignment of
2030 Scope 1 and 2 targets
with the 1.5ºC scenario
• Analyze offsetting exclusion
in 2035 Scope 3 target
and alignment with WB2C
scenario
• Evaluate inclusion of Scope
3 in the Net Zero strategy
• Define intermediate targets,
for before 2030
• Accelerate the deployment
of emission reduction
initiatives
• Clarity the post-2030
Roadmap
What do stakeholders
want to know?
Stakeholders are interested in mitigation measures (reduction of emissions, product
life cycle, i.e, carbon footprint, and business models) and adaptation (reduction of
physical impacts on territories and climate resilience). They also expect alignment of
targets with those of the Paris Agreement and transparency on the annual evolution
and trajectory of emissions, and that the company demonstrates the ability to deliver
on its commitments. In addition, they want information about the financial impacts
related to these changes.
Impacts, directly and/or indirectly, all of Vale's operations and the whole society. GRI 103-1
1 Most of the reductions in the emissions of Scopes 1, 2 and 3 are related
to lower levels of production, in 2021, when compared to the base year.
An increase in production is expected in the short term, which may lead to
an increase in emissions, although in the medium term (starting in 2026) a
decrease is expected due to the implementation of low carbon initiatives.
Presentation
1. Letter from the Chairmann
2. Letter from the CEO
3. Reporting Process
4. Materiality
11
Presentation
Vale
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Assurance
GRI Index
Credits
Material topic: Biodiversity GRI 102-47
Scope
Correlated
Indicators
Risks
Opportunities
Goals
Advances
Improvement
Points
• Biodiversity
conservation and
restoration
• Impacts of the
operations on fauna
and flora
• The Amazon
• GRI 102-15 | 103-1,
• Impacts in areas
• Intensifying our
• Forestry target:
• 62,248 hectares of protected forests and 5,125
• Globally apply
103-2, 103-3 | 304 | G4
MM1 | MM2
highly relevant to
biodiversity
contribution to the
Amazon biome
• SASB EM-MM-160a.1,
SASB EM-MM-160a.2
and SASB EM-MM-
160a.3.
• ODS 6 12 14 15
• Investment in
Biodiversity research
and conservation
• Develop of impact
businesses for biome
restoration
• Develop new
technologies
that support the
prevention of fires
and other risks
recover and protect
an additional
500,000 hectares of
areas beyond the
company's borders
by 2030, of which at
least 100,000 ha will
be through socio-
environmental
impact businesses
• Pursue neutral net
impact in projects
and expansions
hectares of recovered areas
• The Vale Fund supported the development of five
agroforestry impact businesses that productively
recovered an area of 5,125 hectares in 2021
• Development, by the Vale Institute of Technology
Sustainable Development, of genetic studies
for knowledge of the Amazon DNA in order to
contribute to biodiversity conservation
• The Vale Fund supported the development of the
PrevisIA tool, which anticipates information on
regions with higher risk of fire
• Establishment of biodiversity management
guidelines into our management model and applied
them to new projects
biodiversity standards
and plans (global vision)
• Further integrate
biodiversity
management into the
value chain
What do stakeholders
want to know?
Stakeholders are interested in the impacts of mining,
especially in the Amazon, and in conservation and
restoration actions.
Directly and/or indirectly impacts all Vale operations, communities and territories near our operations,
including habitats and species important for conservation. GRI 103-1
Presentation
1. Letter from the Chairmann
2. Letter from the CEO
3. Reporting Process
4. Materiality
12
Presentation
Vale
Governance and Compliance
Manufactured Capital
Financial Capital
Intellectual Capital
Natural Capital
Human Capital
Social Capital
Critical Analysis
Assurance
GRI Index
Credits
Material topic: Ecoefficiency GRI 102-47
Scope
Correlated
Indicators
Risks
Opportunities
Goals
Advances
• Consumption and
efficiency in water
management
• Disposal and quality of
effluents
• Atmospheric emissions
(except GHG) and air
quality
• GRI 102-15 | 103-1, 103-2,
• Water crisis and lack of
103-3 | 303 | 305
available water resources
• SASB EM-MM-120a.1, SASB
EM-MM-140a.1 and SASB
EM-MM-140a.2
• ODS 3 6 12 14 15
• Compliance with ICMM
quality standards for
effluent discharge
• Atmospheric emissions
from operations
• 11.7% reduction in the
specific use of fresh
water withdrawal in
2021
• 23% reduction in sulfur
oxide emissions
• Expansion of the water
monitoring network
and search for new
technologies
• Efficient use of water
resources through dry
processing
• Global strategy for
reducing atmospheric
emissions
• Water target: reduce
the specific use of
new and fresh water
withdrawn and used in
our processes by 10% per
ton produced by 2030,
compared to 2017
• Particulate matter
emissions, NOx and
SOx: Reduce particulate
matter emissions by
16%; Reduce sulfur
oxides emissions by 16%;
and Reduce nitrogen
oxide emissions by 10%
Improvement
Points
• Consolidate the
implementation of
the Integrated Data
Management System
• Manage controversies
related to particulate
emissions
• Globally management
considering local
specificities
What do stakeholders
want to know?
Stakeholders are interested in measures that
minimize impacts, such as water availability and
air pollution.
Impacts all Vale operations and, directly and/or indirectly, communities near our operations. GRI 103-1
Presentation
1. Letter from the Chairmann
2. Letter from the CEO
3. Reporting Process
4. Materiality
13
Presentation
Vale
Governance and Compliance
Manufactured Capital
Financial Capital
Intellectual Capital
Natural Capital
Human Capital
Social Capital
Critical Analysis
Assurance
GRI Index
Credits
Material topic: Mine closure and future use GRI 102-47
Scope
Correlated
Indicators
• Planning and
• GRI 102-15 | 103-1, 103-2,
103-3 | G4 MM10
• ODS
1 2 6 8
11
progressive closure of
assets
• Management of social
and environmental
impacts associated
with Mine closure
• Promoting a legacy
in the territories and
future land use
Risks
Opportunities
Goals
Advances
• Non-achievement
of compliance and
legislation targets
• Non-recovery of
biodiversity
• Invasion and misuse of
land
• Low economic
diversification,
maintaining local
dependence on mining
activities
• Minimize risks in the
• Disclose information
about Mine closure plan,
including the community
engagement process
territories and generate
aptitude for future uses
• Generate value for the
territories, through
economic diversification
and implementation of
new businesses
• Standards and KPIs in the
planning and executing
progressive asset closure
• Projects for future use
in two complexes: Águas
Claras Mine (MAC) and parts
of the Itabira Complex
territory
• Social participation
mechanism for the Mine
closure stage
Improvement
Points
• Structure governance reflecting
the Mine closure strategy and
future use globally, incorporating
society's expectations
• Implement future use and new
business in territories undergoing
Mine closure
What do stakeholders
want to know?
Stakeholders are interested in our biodiversity recovery, local
economic impacts, land development, and the risk of land invasion
and misuse.
Impacts, directly and/or indirectly, Vale's operations and value chain, as well as the communities
near our operations. GRI 103-1
Presentation
1. Letter from the Chairmann
2. Letter from the CEO
3. Reporting Process
4. Materiality
14
Presentation
Vale
Governance and Compliance
Manufactured Capital
Financial Capital
Intellectual Capital
Natural Capital
Human Capital
Social Capital
Critical Analysis
Assurance
GRI Index
Credits
Material topic: Health and safety GRI 102-47
Correlated
Indicators
• GRI 102-15 | 103-1,
103-2, 103-3 | 403
• SASB EM-MM-320a.1
• ODS 3 8
Scope
• Occupational health and
safety
• Process Safety Risk
Management
• Promotion of workers'
health beyond
occupational issues
(chronic diseases, healthy
habits, etc.)
Risks
Opportunities
Goals
Advances
Improvement
Points
• Risks related to workplace
accidents and fatalities
• Risks related to employee
health
• Risks of process accidents
(Process Safety)
• Structuring of critical
• Reduce to zero the
• Lowest recordable
• Improve the incident
control checks
• Accelerate the use of
technology to remove
people from risk
number of recordable
high-potential injuries
(precursors to fatalities)
by 2025
• Reduce by 50% the
number of exposures to
agents harmful to health
in the workplace by 2025
accident frequency rate
(TRIFR) in Vale's history
(1.41)
• Reduced by 35% the
number of exposures
to agents harmful to
health in the workplace
compared to the
baseline (2019)
investigation process and
organizational learning
• Improve the quality of
safety inspections (proactive
indicator)
• Advancing the operational
change management
process
What do stakeholders
want to know?
Stakeholders are interested in measures to
ensure the employees and contractors safety, and
operations safety in general.
Directly and/or indirectly impacts all Vale employees, contractors and suppliers. GRI 103-1
Presentation
1. Letter from the Chairmann
2. Letter from the CEO
3. Reporting Process
4. Materiality
15
Presentation
Vale
Governance and Compliance
Manufactured Capital
Financial Capital
Intellectual Capital
Natural Capital
Human Capital
Social Capital
Critical Analysis
Assurance
GRI Index
Credits
Material topic: People GRI 102-47
Scope
Correlated
Indicators
Risks
Opportunities
Goals
Advances
• Employee attraction,
retention, training,
and careers
• GRI 102-8, 102-15 | 103-
1, 103-2, 103-3 | 401 |
404 | 405 | 407
• ODS
5 8
• Working conditions
for contractors and
third parties
• Diversity, equity and
inclusion
• Local labour laws
• Hiring of outsourced
labour
• Leadership succession
plan
• Implement and
accelerate the
Technical Training
Program for our
employees
• Training/activation
of operational
leaders in Cultural
Transformation
What do stakeholders
want to know?
The stakeholders are interested in the Vale's
cultural transformation, promoting the
development of employees and diversity.
Directly and/or indirectly impacts all of Vale's own employees, contractors and suppliers. GRI 103-1
• Double the
• 18.7% women in the workforce
representativeness
of women in our
workforce, from 13%
to 26%, by 2025
• Guarantee that 40%
of leadership is made
up of black people*
by 2026, compared to
the 29% registered
through a self-
declaratory census
* Includes black and
brown people according
to Brazilian Institute of
Geography and Statistics
(IBGE in Portuguese)
categories.
• 20.9% women in leadership positions
• Achievement of 5.29% of professionals
with disabilities in Brazil (reaching the
legal quota)
• Hiring of 95 professionals who declared
themselves black or brown race in the
Trainee Program, which represents 66%
of the total number hired
• Conducting the first diversity census
in Brazil and Canada with 68.5%
participation in Brazil and 58% in
Canada
• Adherence to the Mover: Movement for
Racial Equity
• Expected culture and behaviors
positioned as fundamental to achieving
strategic objectives
• Critical processes (security, risk
management, community relations,
among others) disseminated in the
organization
Improvement
Points
• Apply an employee
engagement survey
• Set broader diversity,
equity and inclusion goals
(including issues beyond
race and gender)
Presentation
1. Letter from the Chairmann
2. Letter from the CEO
3. Reporting Process
4. Materiality
16
Presentation
Vale
Governance and Compliance
Manufactured Capital
Financial Capital
Intellectual Capital
Natural Capital
Human Capital
Social Capital
Critical Analysis
Assurance
GRI Index
Credits
Material topic: Human Rights GRI 102-47
Scope
Correlated
Indicators
Risks
Opportunities
Goals
Advances
• Respect and promote
• GRI 102-15 | 103-1, 103-2,
• Risks of human
human rights in
developing its activities,
partnerships, and in
production chain, during
the entire life cycle of its
ventures
103-3 | 201 | 406 | 408 | 409 |
410 | 412
• SASB EM-MM-210a.1, SASB
EM-MM-210a.2
and SASB EM-MM-210a.3
• ODS
3 8 16
rights violations in its
operations, along the
value chain
What do stakeholders
want to know?
Stakeholders are interested in Vale's commitments on
the topic and how this is shared with the value chain.
• Advance the inclusion
of the human rights
perspective in all company
processes and decision-
making
• Help to the promote the
human rights agenda
in mining companies
and in other sectors, in
joint ventures and with
customers
• Launched the Social
Ambition in 2021
• 100% of our operations
with risk analysis
related to human rights
• Performed human
rights due diligence
on 14 operations and
projects
• Consolidated of the
human rights risk
management process in
critical suppliers
• Perform human rights
due diligence on all
operations in 3-year
cycles
• Help Indigenous
peoples and Traditional
Communities to
promote their rights,
and ethnodevelopment
and appreciate their
culture
• Combat and prevent
sexual exploitation of
children and forced or
compulsory labor
• Broaden the
representation of
underrepresented
groups at Vale
Improvement
Points
• Advance human rights
management in the value
chain, including increasing
the number of human rights
due diligence processes
Directly and/or indirectly impacts all of Vale's operations and projects and value chain, as well as society as a whole. GRI 103-1
Presentation
1. Letter from the Chairmann
2. Letter from the CEO
3. Reporting Process
4. Materiality
17
Presentation
Vale
Governance and Compliance
Manufactured Capital
Financial Capital
Intellectual Capital
Natural Capital
Human Capital
Social Capital
Critical Analysis
Assurance
GRI Index
Credits
Material topic: Local Communities GRI 102-47
Scope
Correlated
Indicators
• Impacts on local
communities
• Conflict resolution
mechanisms with
communities
• Promotion of territorial
• GRI 102-15 | 103-1, 103-2,
103-3 | 201, 203 | 411 | 413
| G4 MM5 | MM6 | MM7 |
MM9
• SASB EM-MM-210b.1 and
SASB EM-MM-210b.2
development
• ODS
• Direct and indirect
economic impacts
• Indigenous Peoples and
Traditional Communities
1 2 3 5 7
8 9 10 11 17
Risks
Opportunities
Goals
Advances
• Socio-environmental
impacts resulting from
the operation
• Maximizing value
generation for
communities
• Health and safety risks in
the communities where
we operate
• Risks of involuntary
resettlement and land use
conflicts
• Risks of conflicts with
Indigenous Peoples and
Traditional Communities
• Place within the
Top 3 in the leading
external assessments
of sustainable mining
by 2030, in the social
requirements
• Launched our Social
Ambition in 2021,
guided by the pillars:
Sustainable Mining,
Resilient Communities,
and Global Causes
• Lift 500,000 people out
• Inclusion of the
of extreme poverty
• Indigenous communities
neighbouring all Vale
operations with UNDRIP*
rights plans
indicator of reduction
of events (incidents)
with communities in the
variable remuneration
of leaders
Improvement
Points
• Reduce number of events
(incidents) involving
communities
What do stakeholders
want to know?
Stakeholders are interested in managing impacts on local
communities, emphasizing the most vulnerable populations
and the territorial development agenda.
Direct and/or indirect impacts in all territories and communities located near Vale's operations, projects, or socio-economic, environmental, and cultural initiatives GRI 103-1
Presentation
1. Letter from the Chairmann
2. Letter from the CEO
3. Reporting Process
4. Materiality
18
Presentation
Vale
Governance and Compliance
Manufactured Capital
Financial Capital
Intellectual Capital
Natural Capital
Human Capital
Social Capital
Critical Analysis
Assurance
GRI Index
Credits
Vale
Vale
Vale | Integrated Report 2021
1. Profile
2. Business Model
3. Purpose and Values
4. Strategic Pillars
5. Focus on Reparation
6. Dams
19
19
Presentation
Vale
Governance and Compliance
Manufactured Capital
Financial Capital
Intellectual Capital
Natural Capital
Human Capital
Social Capital
Critical Analysis
Assurance
GRI Index
Credits
PHOTO: RICARDO TELES
Sossego Mine,
Canaã dos
Carajás, Pará
Profile
Founded in 1942 and headquartered in the city
of Rio de Janeiro, Brazil, Vale is one of the world's
leading producers of Iron Ore and Nickel. We also
produce Iron Ore pellets, Copper, Manganese Ore,
Metallurgical and Thermal coal, Platinum Group
Metals (PGM), Gold, Silver, and Cobalt.
We have a mineral exploration process and operate
logistics systems, including railroads, marine
terminals and ports, that are integrated with
our mining operations. We also have distribution
centers to support the delivery of Iron Ore
throughout the world. Directly and through
affiliates and joint ventures, we have investments
in energy and steel businesses. GRI 102-2, 102-4, 102-7
Vale has been publicly-held corporation since 1970
and its shares are traded on the New Market of
the São Paulo Stock Exchange (B3) and on the New
York (NYSE) and Madrid (Latibex) stock exchanges.
GRI 102-1, 102-5
Vale
1. Profile
2. Business Model
3. Purpose and Values
4. Strategic Pillars
5. Focus on Reparation
6. Dams
20
Presentation
Apresentação
Vale
A Vale
Governance and Compliance
Visão Global
Governança Corporativa
Manufactured Capital
Desempenho e resultados
Financial Capital
Capital Financeiro
Intellectual Capital
Capital Natural
Natural Capital
Capital Humano
Human Capital
Capital Intelectual
Social Capital
Capital Social
Critical Analysis
Capital Manufaturado
Business Model
Inputs
FINANCIAL CAPITAL
Financing
Revenues
USD 89.4 billion total assets
NATURAL CAPITAL
Minerals, water resources and
energy resources
10 thousand sq km of protected
areas
HUMAN CAPITAL
72,300 employees and 141.2
thousand contractors
INTELLECTUAL CAPITAL
Technology: Vale Institute of
Technology, R&D&I and own
technologies
SOCIAL AND RELATIONSHIP
CAPITAL
Relationship with priority
stakeholders
2,092 local relationship
communities in 8 countries
Around 18 thousand suppliers
in the supply chain, and local
procurement represent 53% of
the total financial volume
MANUFACTURED CAPITAL
Logistic structure
(ports, railroads, roads)
Production infrastructure
(mines and mills)
PURPOSE
We exist to
improve life and
transform the
future. Together.
Safety and Operational
Excellence
New pact with society
Base Metals Transformation
Discipline in capital allocation
Maximize the
flight-to-quality in Iron Ore
S
TRATEGIC PI L L A R S
BUSINESS ACTIVITIES
Exploration and mineral research
Development and implementation of projects
Operation (Mining/Processing/Logistics/Power generation)
Commercialization
Distribution
Mine closure and future land use
COM
MIT
M
E
N
T
S
People
Put the safety of people and the
environment at the core of our business
decisions, acting with respect, care and
integrity. Build a positive social,
economic and environmental legacy in
areas where we operate.
Security
Make Vale one of the safest and most
reliable mining companies in the world.
Reparation
Fully repair Brumadinho, taking a
leading role in restoring the dignity of
affected families and communities.
O
BY P R
D U C T S
Effluents
Emissions
Non-mineral waste
Mineral waste
Patents
Products
from tailings
Iron Ore
Manganese Ore
Nickel
Cobalt
Pellets
Coal
Copper
Gold
Energy
Passenger transport
on Railroads
S A
T
PR O D U C
S
E
N D SERVIC
Assurance
Análise crítica
GRI Index
Sumário GRI
Créditos
Credits
s
t
c
a
p
m
I
i
n
a
M
Environmental
Consumption of 103.7 million m³ of water and
a 20% reduction in the withdrawal of new
water in relation to the base year of 2017
Reduction of emissions due to greater
consumption of renewables
Development of new technologies and
solutions for the decarbonization of steel
and mitigation of other impacts
Recovery of degraded areas
Decharacterization of dams and other
structures
Impacts on water, soil and air
Social
860 thousand people in 50 Brazilian
municipalities impacted by Vale
Foundation projects in Brazil
Training, engagement and
development of employees
Income and employment generation
Transmission of knowledge
Social projects
Social license to operate
Land use disputes
Fatalities and changed lives
Impacts on local communities
Reputation
Relationship with socio-environmental
organizations for communities
development, environment preservation
and recovery
Economic
Adjusted EBITDA of USD 31.3 billion
Dividends and shareholder value
Fostering the local economy
Infrastructure for society
Net income from continuing
operations of USD 24.8 billion
Payment of taxes and provisions
Migrations caused by Vale's presence,
increasing demand for infrastructure,
services and products
positive
negative
Vale
1. Profile
2. Business Model
3. Purpose and Values
4. Strategic Pillars
5. Focus on Reparation
6. Dams
21
Purpose and Values
GRI 102-16
We exist to improve life
and transform the future.
Together.
Mining is essential for the development of the
world. Therefore, we seek to serve what society
needs and wants, with raw materials and other
resources to improve life, caring for the planet and
generating prosperity for all.
This is a story of transformation: of the ore, the
country, and the company, which is currently
present in more than 20 countries. Along this
transformation journey, we seek to walk together
with society, with responsibility, transparency, and
coherence.
Doing it together means listening, but this listening
will only be valuable if it is comprehensive: society,
partners, customers, and the people who make
Vale what it is in all the places it operates. Doing
it together means creating a collective capacity to
think, dialogue, design, and accomplish possible
futures for all. For mining and for the planet.
Values
• Life matters most.
• Act with integrity.
• Value the people who build our company.
• Make it happen.
• Respect our planet and communities.
Levers
• Safety.
• VPS (Vale's integrated management system).
• People.
• Innovation.
• Sustainability.
Key Behaviours
Our Ambitions
• Obsession with safety and risk management.
• A benchmark in safety.
• Open and transparent dialogue.
• Empowerment with accountability.
• Ownership for the whole.
• A best-in-class reliable operator.
• A talent-driven organization.
• A leader in sustainable mining.
• Active listening and engagement with society.
• A reference in creating and sharing value.
Vale
1. Profile
2. Business Model
3. Purpose and Values
4. Strategic Pillars
5. Focus on Reparation
6. Dams
22
PresentationGovernance and ComplianceFinancial CapitalNatural CapitalHuman CapitalIntellectual CapitalSocial CapitalManufactured Capital AssuranceCritical AnalysisCreditsValeGRI Index Strategic Pillars
We seek to constantly evolve, to consolidate Vale
as a leader in supplying products that are essential
to society’s the development. To maximize value
generation, we rely on five strategic pillars that
guide how we conduct our business and operations:
OUR STRATEGIC PILLARS
We made progress in 2021 and
continue the efforts to
address our challenges
PILLAR
SCOPE
ADVANCES IN 2021
MAIN CHALLENGES
SAFETY AND
OPERATIONAL
EXCELLENCE
To be a reference in
safety and reliability,
transforming, through
VPS, the way we operate
and maintain our assets,
with people at the center
of decision making.
• VPS assessments performed by the 2nd line
• 100% of the Tailings Storage Facilities
of defense in 100% of areas.
• Progress in the implementation of the VPS
with a focus on improving working conditions
(5S), performance management, discipline
in complying with routines and asset
maintenance.
classified as Extreme Consequence on the
Church of England Tailings Storage Facilities
Disclosure list were assessed by HIRA in 2021.
• Achieved 60% adherence to the requirements
of the Global Industry Standard on Tailings
Management (GISTM).
• 256% increase in the participation of employees
• Decharacterized 2 upstream dams in 2021,
in continuous improvement programs.
bringing the total to 7 since 2019.
• Reduced by 34% high-potential recordable
injuries between 2020 and 2021.
• Brought all dams to emergency level 3 with
downstream containment structures built
• Achieved the lowest recordable injury
frequency rate (TRIFR) in Vale's history (1.41).
• Hazard Identification and Risk Analysis (HIRA),
a risk management program, assessed 100%
of Vale sites*.
*Considers the assets grouped in operational sites, which
underwent HIRA implementation.
• Reduction of 2,900 employee exposures to
occupational risk above the Occupational
Exposure Limit (OEL).
• Reduce people risk exposure and increase
company’s competitiveness by intensifying
focus on change of processes, through remote
and autonomous operations.
• Advance the maturity of VPS in a deep and
comprehensive way to enable safe and
environmentally responsible operations, and
ensure the integrity of our assets.
• Operational discipline in complying with
established routine and standards.
• Overcome the technical challenges to
decharacterize/eliminate upstream dams in the
shortest possible time.
• Achieve full compliance with the GISTM
standard for all tailings dams by 2025.
Vale
1. Profile
2. Business Model
3. Purpose and Values
4. Strategic Pillars
5. Focus on Reparation
6. Dams
23
PresentationGovernance and ComplianceFinancial CapitalNatural CapitalHuman CapitalIntellectual CapitalSocial CapitalManufactured Capital AssuranceCritical AnalysisCreditsValeGRI Index PILLAR
SCOPE
ADVANCES IN 2021
MAIN CHALLENGES
NEW PACT
WITH SOCIETY
To be a partner company
in the development of
resilient communities,
engaged in relevant issues to
humanity and committed to
sustainable mining.
BASE METALS
TRANSFORMATION
To apply best operational
and management practices
throughout all operations
of the Base Metals business
unit.
• Defined our Social Ambition and respective
long-term indicators (2030).
• Brumadinho Reparation: 43% evolution
in total payments provided for in the
Comprehensive Reparation Agreement in
2021; 99% of victims with at least one family
member have a compensation agreement
signed with Vale, with 100% of these
agreements already paid.
• Implemented electric locomotive pilot.
• Engagement with customers who, together,
represent more than 40% of Scope 3
emissions.
• First voyage of ships equipped with rotating
sails and air lubrication, achieving efficiency
gains and reducing fuel consumption and
emissions.
• Forestry target: 62,248 hectares of protected
forests and 5,125 hectares of recovered areas
by 2021. More than 700 families engaged, 670
direct jobs and 421 indirect jobs created.
• Reduced by 11.7% fresh water withdrawal,
and by 20% considering the cumulative (since
the 2017 baseline).
• Achieved a 39% increase in female
representativeness in Vale's workforce and a
80% increase in female representativeness in
senior leadership positions compared to 2019.
• Announced the target to have 40% of Vale’s
leadership in Brazil composed of black people
by 2026 (up from 29% in 2021).
• Implement the shared value lens in our
projects and operations.
• Establish and execute a strategy to support the
removal of 500,000 people from extreme poverty.
• Collaborate with indigenous communities
neighboring all Vale operations in the
development and execution of their plans in
pursuit of their rights under the UNDRIP*
• Advance sustainability management and
mitigation of controversies, improving
performance in key external assessments of
sustainable mining.
• Evolve the investment programs to reach the
commitments made
• Contribute to the regeneration of the Amazon
ecosystem through combined strategies and
partnerships.
• Adapt the GHG emission reduction target of
Scopes 1 and 2 to the 1.5ºC scenario.
• Include Scope 3 in the net zero emission strategy.
• Produced our first ore at the Voisey's Bay and
• Conducted a Comprehensive review of
• Stabilize production at the North Atlantic
Copper Cliff Mine expansion projects.
• Signed an Agreement with OEM to sale 5% of
our Class I nickel.
• Approved phase 1 of the Manitoba extension.
maintenance processes, mainly at Salobo,
with a focus on improved operational safety
and recovery of the maintenance backlog.
and Onça Puma mines.
• Ensure replacement and growth of
production capacity through the Salobo 3,
Alemão, Cristalino and Hu'u projects, among
others.
• Achieve 30-40% of Nickel supply to the
North American electric vehicle industry
within five years.
*UN Declaration on the Rights of Indigenous Peoples
Vale
1. Profile
2. Business Model
3. Purpose and Values
4. Strategic Pillars
5. Focus on Reparation
6. Dams
24
PresentationGovernance and ComplianceFinancial CapitalNatural CapitalHuman CapitalIntellectual CapitalSocial CapitalManufactured Capital AssuranceCritical AnalysisCreditsValeGRI Index PILLAR
SCOPE
ADVANCES IN 2021
MAIN CHALLENGES
DISCIPLINE
IN CAPITAL
ALLOCATION
To keep a focus on value
creation and asset safety,
investing in sustainable
production and in
protecting/increasing
margins.
• Signed the Comprehensive Judicial
• Distributed dividends of BRL12.60/
Reparation Agreement, allowing for greater
predictability in Vale's disbursements.
share to shareholders and bought back
approximately 6% of shares.
• Simplified our portfolio with divestitures or
binding agreements for divestitures of non-
core assets (including VNC, California Steel
Industries, Moatize Coal Mine and Nacala
Logistics Corridor, Vale Manganese) leading
to a significant decrease in our cash drains.
• Unlock greater value by ensuring that 100%
of critical decisions are driven by data and
Artificial Intelligence across the value chain
and critical assets/risks.
MAXIMIZE THE
FLIGHT-TO-
QUALITY IN
IRON ORE
To leverage our strengths in
Vale’s world-class reserves,
assets and logistics to
maximize the value in
our premium portfolio of
products.
• Increased Iron Ore production capacity from
322 Mt in 2020 to about 340 Mt in 2021.
• Resumed asset capacity, such as Serra Leste,
Timbopeba and Fábrica.
• Resumed production at the pelletizing plant
in Vargem Grande.
• Maintened ~70% of Iron Ore production by
the natural humidity processing method.
• Started-up the Vargem Grande waste
filtration plant, the first of four plants
under construction in Minas Gerais, to
reduce dependence on dams.
• Investments for producing "green
briquettes" as a portfolio solution to
support the decarbonization of the steel
industry.
• Implement buffer capacity plan to 400 Mtpa
ensuring additional flexibility.
• Cooperate with partners for greener steel
industry solutions.
Vale
1. Profile
2. Business Model
3. Purpose and Values
4. Strategic Pillars
5. Focus on Reparation
6. Dams
25
Learn more
About progress on public
commitments.
Learn more
ESG Databook.
PresentationGovernance and ComplianceFinancial CapitalNatural CapitalHuman CapitalIntellectual CapitalSocial CapitalManufactured Capital AssuranceCritical AnalysisCreditsValeGRI Index Maximizing our value delivery
DE-RISKING
RESHAPING
RE-RATING
Brumadinho
Mariana
Dam safety
Resumption of
production
Focus on core
business
Benchmark in
safety
Elimination of
cash reducers
Best-in-class
reliable operator
Opportunity for
growth with
value creation
Cost efficiency
Talent-driven
organization
Leader in
sustainable mining
and ESG Practices
Reference in
creating and
sharing value
SOLID CASH FLOW GENERATION
DISCIPLINE IN CAPITAL ALLOCATION
nical
Tech
M
a
n
a
g
e
m
e
n
t
Leadership
Common policies, guidelines and
technical process requirements for
managing assets and addressing risks
inherent to our business.
Set of leadership practices expected
to reinforce key behaviours and shape
organizational culture and discipline.
Management routines,
methodologies and tools to
sustain and improve results.
Learn more
Access the
Vale Management
System Policy.
Our Management System (VPS)
We are on a journey to become a safer, more
reliable company every day, and our management
system, VPS, is a key lever in our Cultural
Transformation. The VPS is results-focused
and provides for the deep and comprehensive
implementation of policies and practices to enable
safe and environmentally responsible operations
and ensure the integrity of our assets. The VPS
contains practices that must be adopted daily by
all employees. These practices are based on three
dimensions: leadership, technical and management,
which in turn break down into 17 elements. Each
element has minimum compliance requirements
that are verified in annual cycles of formal
assessments conducted by the 2nd Line of Defense.
Learn more about here.
The VPS is a management model in constant
evolution that consolidates and continuously
improves its approach, methods, techniques, and
tools used according to what has been learned. Its
application is mandatory: being adopted globally in
operational and administrative areas.
Vale
1. Profile
2. Business Model
3. Purpose and Values
4. Strategic Pillars
5. Focus on Reparation
6. Dams
26
PresentationGovernance and ComplianceFinancial CapitalNatural CapitalHuman CapitalIntellectual CapitalSocial CapitalManufactured Capital AssuranceCritical AnalysisCreditsValeGRI Index Focus on Reparation
Brumadinho and
evacuated territories
We will never forget Brumadinho and we remain
determined to provide comprehensive reparation
and to compensate the damage caused to people
and territories by the collapse of the B1 Dam at
the Córrego do Feijão Mine in Brumadinho, Minas
Gerais, Brazil. In addition to the 270 fatalities,
five of whom were still unaccounted for as of the
publication of this report, the dam's rupture caused
profound environmental and social impacts.
We understand the profound significance that
locating the remains of the missing victims has
for the affected families. For this reason, we
continue to give priority and unrestricted support
to the continuity of the search conducted by
the Fire Department of Minas Gerais, which has
entered a new phase. Four automated search
stations have been implemented to operate
simultaneously, while a fifth (reserve) station
is available, increasing the efficiency of the
activity and the safety of those involved. Our
connection with the association representing
the victims' relatives and the support of the
Forensic Medical Institute have been invaluable
throughout this process and we are very
thankful for both.
In line with the Judicial Comprehensive
Reparation Agreement signed with the
Justice Institutions and the State of Minas
Gerais in February 2021 and homologated
by court decision in April, we reaffirmed our
commitments to continue the initiatives
underway since 2019. The total amount of the
agreement, estimated at BRL 37.7 billion (BRL
23 billion have already been disbursed since
the document was signed), will fund Vale's
obligations to do and to pay, encompassing
socioeconomic and socio-environmental
reparation actions for the damage resulting
from the dam failure. This amount does not
include compensations referring to individual
rights, which follow their normal flow of
execution by Vale.
The actions of the Agreement have been
detailed and implemented together with
society. The socio-economic projects in
“The hours I am embroidering
I don't think in nothing bad.
When I'm in the workshops
with my colleagues, there's
no sadness, it's always
everyone laughing, counting
cases is the best thing
you have. The monitors
encourage us and every time
you want to do something
best. It's gratifying people
see a story in that that you
embroidered. He was too
good to participate of the
exhibition in Inhotim.”
Geralda de Fátima Ribeiro
Pereira, student from
the project Sowing Hope
(Semeando Esperança).
PHOTO: VALE ARCHIVE
The project Sowing Hope
(Semeando Esperança),
developed by Grupo
Matizes Dumont with
about 140 women in
Brumadinho, works using
embroidery as a tool for
social transformation
Vale
1. Profile
2. Business Model
3. Purpose and Values
4. Strategic Pillars
5. Focus on Reparation
6. Dams
27
PresentationGovernance and ComplianceFinancial CapitalNatural CapitalHuman CapitalIntellectual CapitalSocial CapitalManufactured Capital AssuranceCritical AnalysisCreditsValeGRI Index
Brumadinho and 25 municipalities of the
Paraopeba River Basin were submitted for
popular consultation conducted by the State
of Minas Gerais Government in November 2021.
More than 10,000 people participated in the
consultation and were able to indicate priority
areas for investments in socio-economic repair
projects in their cities.
The disbursed amount of the Agreement also
includes BRL 4.4 billion to deploy the Income
Transfer Program (PTR), which replaced the
Emergency Payment.
More than 11,400 people have already been
compensated, with individual and labour
agreements signed. Out of a total of BRL 3 billion
committed, BRL 2.6 billion have already been paid
out under the formalized agreements.
The reparation actions are validated by public and
justice institutions: the Government of Minas
Gerais, Public Prosecution Office of the State of
Minas Gerais, Federal Public Prosecution Office,
Public Defender's Office of the State of Minas
Gerais. Reparation actions have been inspected by
independent audits: Getulio Vargas Foundation
for socio-economic reparations and EY for
financial issues. The company responsible for the
environmental reparation audit is still being defined.
The implementation of the actions foreseen in
the agreement poses challenges to all the parties.
Through several weekly meetings, involving
different technical and coordination groups, the
difficulties of governance and interpretation of
details of the Agreement have been overcome. At
Vale we have the challenge of detailing hundreds
of projects defined by the communities and
municipalities of the affected municipalities,
aligning schedules and budgets with current
restrictions, and delivering projects that add the
expected value to the territories.
Although we know we have a long way to go, we
share the advances in the commitments made in
the Comprehensive Reparations Agreement, on
the socioeconomic and environmental fronts.
More than 11.4
thousand people
compensated and
USD 2.6 billion
paid referring
to agreements
formalized
Vale
1. Profile
2. Business Model
3. Purpose and Values
4. Strategic Pillars
5. Focus on Reparation
6. Dams
Relationship
with affected
communities* GRI 103-2
In addition to the Community Relations
team that works in the field, we have
provided a toll-free phone number for
general assistance to all people who
feel directly or indirectly affected by
the Brumadinho dam collapse or the
preventive evacuations carried out and
other territories served by the Special
Board for Reparation and Development.
In 2021, of the 20,254 manifestations*
registered on the channel, 19,946 were
finalized, with 12,490 fulfilled, 4,607
responded to, and 2,849 denied.
Service Centre:
0800 031 0831
*Related to all municipalities attended by Reparation,
including territories evacuated due to emergency levels
of dams.
"Since January 25, 2019 our lives have
changed in the worst possible way.
We never imagined that the dam in
Brumadinho could break. Neither could
our family members. They imagined they
were in the safest place in the world. They
loved working for the company, they were
proud to wear the uniform. And today, all
that is left is a lot of pain, suffering and
longing. We expect the company to have a
transparent dialogue with the employees,
inform them if there is any risk of loss of
life, and to do everything to prevent it. For
us family members, everything that has
happened is very difficult."
Alexandra Andrade, president of Avabrum
(Association of Families of Victims and
People Affected by the Córrego do Feijão
Mine Dam Collapse in Brumadinho)
Learn more
Watch the
testimonial
on the link.
28
PresentationGovernance and ComplianceFinancial CapitalNatural CapitalHuman CapitalIntellectual CapitalSocial CapitalManufactured Capital AssuranceCritical AnalysisCreditsValeGRI Index "We don't want
reparation.
Reparation is for
the damage they
have done. We want
compensation. I want
to tell my children
in the future, I want
to be able to say:
Antônio Pereira was
like this, but the
company provided
support and today
we are developed. We
want a better district
and we are able to
make it happen.”
Resident of the
Antônio Pereira
district, Ouro Preto/
Minas Gerais (Source:
2021 RepTrak Survey)
SOCIO-ECONOMIC REPARATION
On the socio-economic front, we continue to work
together with communities to rebuild infrastructure
and promote livelihoods. Initiatives include:
• Construction of a social center for the victims'
families, serving about 100 people a day since
February 2021;
• The Family Referral Program, created in 2019 to
provide psycho-social assistance. About 94% of
eligible families have joined the program so far
(approximately 3,500 people).
• Conclusion of the construction of a new daycare
centre for the Palhano community in Brumadinho
(MG), with a capacity to care for 108 children, from
infants to 5 years old;
• Renovation of the Cachoeira do Choro
Community Association in Curvelo (MG), benefiting
at least 70 people;
• Delivery of 5,500 new pieces of equipment to
143 Basic Health Units in 15 municipalities served
(Brumadinho, Mario Campos, Sarzedo, Inhaúma,
Pará de Minas, Paraopeba, Pompéu, São Joaquim de
Bicas, Fortuna de Minas, Papagaios, Pequi, Morada
Nova de Minas, Itabirito, Nova Lima and Barão de
Cocais), in addition to the training of 2,168 health
professionals, benefiting the population of these
cities, which amounts to about 400,000 people;
•Ongoing works for Território Park, a joint action
with residents for the urban development of
Córrego do Feijão, with the purpose of rescuing
the bond of the population with the territory,
besides enabling a new dynamic for the local
economy, less dependent on mining. The project
foresees social spaces such as a grove, trails, an
overlook, a school, and a soccer field, in addition
to a community market and a culture and crafts
centre, where local businesses will operate, which
have been receiving consulting services and
resources for professionalization. The area will be
managed by the community itself, which has been
participating in training workshops to sustainably
manage these spaces since July 2021. The
objective is to turn Território Park into a tourist
destination and combine quality of life with jobs
and income generation of. Twenty percent of the
work has already been completed;
• Deployment of sewage collection and treatment
systems is underway in the Pires community, in
Brumadinho, serving 500 people;
• 75 organizations and 61 projects enrolled in the
Valorizar Program public notice, and 28 have been
awarded in several categories, such as Work and
Income Generation, Tourism, and Education and
Culture, totaling an investment of BRL 1.4 million in
local projects;
• Supporting small entrepreneurs with income
generation, professional qualification in
construction or gardening, and expansion of
production capacity for 300 farmers;
• Encouraging tourism – one of the levers to
diversify the local economy, generate employment
and income, and reduce dependence on mining.
Through the Strengthening the Competitiveness of
the Private Tourism Sector project, in partnership
with Circuito Veredas, we have supported the
qualification of entrepreneurs, to help them
structure their businesses and improve and expand
their services and offers. The project takes place
in Brumadinho, Igarapé, Juatuba, Mário Campos
and São Joaquim de Bicas and has been extended
until June 2023. In addition to providing training for
50 entrepreneurs since 2020, we will support new
entrepreneurs, totalling 90 beneficiaries in total.
Vale
1. Profile
2. Business Model
3. Purpose and Values
4. Strategic Pillars
5. Focus on Reparation
6. Dams
29
PresentationGovernance and ComplianceFinancial CapitalNatural CapitalHuman CapitalIntellectual CapitalSocial CapitalManufactured Capital AssuranceCritical AnalysisCreditsValeGRI Index ENVIRONMENTAL REPARATION
Removing tailings is our first step to achieving
environmental reparation. Environmental
reparation planning begins as tailings removal
progresses and affected areas are cleared by the
Fire Department, with all projects submitted for
approval by the environmental agencies before any
activity begins. So far, of the approximately nine
million cubic meters of material to be removed from
the channel of the Ferro-Carvão stream due to
the collapse of Dam B1, more than 50% have been
moved and are in the process of final disposal.
operations throughout the entire basin, because
as long as the raw water is not adequate for
abstraction, the riverside populations and rural
producers along the river banks continue to be
served with a constant supply of mineral water,
water tank trucks and water from new wells drilled,
for animal watering and irrigation. The distribution of
water involves a large logistical operation, drastically
increasing the circulation of large trucks through the
communities, which brings inconveniences of dust,
noise, and increased circulation of outsiders in the
impacted municipalities.
A factor preventing the stabilization of a faster
pace for environmental remediation in the areas
impacted in Brumadinho is the fact that the work
will only move forward after the final release by
the Fire Department of the areas for total tailings
removal, once the search operations for each
stretch of land under analysis have been completed.
We are confident that the new search stations in
operation will allow a major advance in the pace
of the search operations, which will speed up the
entire flow of management and final disposal of the
tailings and revegetation of the impacted areas.
Considering the areas impacted by the rupture
and its surroundings, we have reforested
26 hectares (of a total of 140) by planting
approximately 30,000 seedlings of species
native to the region. This process began with
the collection of fruits and seeds in the region's
forests. We have collected about 600 kg of
fruits and seeds from 80 different species so far.
Thousands of seedlings have been produced from
this, including those at the Vale Natural Reserve
in Linhares, Espírito Santo state, for planting
in Brumadinho. Preliminary monitoring results
from the areas in recovery indicate the presence
of dispersing and pollinating species that will
contribute to the recovery process.
The monitoring of the water quality of the
Paraopeba River is a central factor for the repair
Since January 2019, the water quality of the
Paraopeba River has been monitored by the Water
Management Institute of Minas Gerais (IGAM)
and Vale. Significant results of iron and aluminum
were identified in stretches most impacted by
the contribution of tailings, with attenuation
as we move away from the confluence region
of the Ferro-Carvão stream with the Paraopeba
River. The iron and manganese contents, in total
form, show an increase during the rainy season
and a reduction during the dry season, and
the current condition indicates that the water
quality is in a transition phase, with a progressive
reduction in the metal concentrations.
Detailed results of the monitoring of the water quality
of the Paraopeba River in the stretch impacted by the
rupture are available at Vale website.
In Córrego do Feijão, the foundations have been
completed and now the structures are being built
for the memorial to honour the victims, scheduled
to be unveiled in January 2023. The project,
designed by architect Gustavo Penna, involved
the participation of the entire local community
and Avabrum. Our intention is to build a space of
belonging, identification and collective interest
and a memorial to the victims of the tragedy.
EVACUATED TERRITORIES
Since the collapse of Dam B1 in Brumadinho, we
have adopted more conservative dam assessment
standards. In this sense, we have adopted preventive
procedures for removing people from risk areas
when recommended through timely monitoring of
the dams. (read more in Dams)
Although our structuring actions have evolved in
the territories, we are aware of the impacts and
our failure to meet expectations at times. We
try to learn from these cases and remain vigilant
of residents’ needs, advancing our execution of
projects and delivery of new or revitalized public
equipment to the communities.
In the territories where emergency evacuations
occurred – Barão de Cocais, Nova Lima, Itabirito,
and preventive actions in Ouro Preto – based
on dialogue with the residents and public
authorities of each municipality, we advanced the
construction and execution of the Compensation
and Development Plans. We have invested a total of
BRL190 million to minimize the impacts caused by
elevated dam safety requirements.
One of the goals of our operations in 2021 was to
encourage the creation of new business fronts
and to strengthen existing production chains,
thus contributing to increase the family income
of the population and diversify the economy.
Since March 2021, we have trained more than
1,200 entrepreneurs directly and indirectly in the
evacuated municipalities through the Horizonte
Project, which encourages innovative solutions
to the problems residents face. Of these, 39
projects are being accelerated and, as a whole,
entrepreneurs will receive more than BRL2.3 million
in seed capital to start their activities.
Vale
1. Profile
2. Business Model
3. Purpose and Values
4. Strategic Pillars
5. Focus on Reparation
6. Dams
30
PresentationGovernance and ComplianceFinancial CapitalNatural CapitalHuman CapitalIntellectual CapitalSocial CapitalManufactured Capital AssuranceCritical AnalysisCreditsValeGRI Index ONGOING ACTIONS IN THE EVACUATED TERRITORIES
Municipality
Dam/site and Emergency Level
Projects in progress or completed in 2021
Key Challenges
Nova Lima
B3/B4 Dam, Mar Azul Mine
(emergency level 3)
• Launching the Horizonte Project, which seeks to boost local entrepreneurship and stimulate initiatives
with innovative solutions to the problems faced by local residents;
• Renovating the Capela Velha football field, the Jardim Amanda court and the Marcinho and Grota Fria
bridges;
Sul Superior Dam, Gongo Soco Mine
(emergency level 3)
• Building the Territorial Development and Social Transformation Program;
• Supporting entrepreneurship projects and local projects;
Barão de Cocais
Norte Laranjeiras Dam, Brucutu Mine
(emergency level downgraded from
2 to 1 in November 2021)
• Acting to protect cultural and religious heritage;
• Revitalizatng Praça da Lagoa;
• Supporting and strengthening public health;
• Supporting and structuring the Barão de Cocais Emergency Care Unit (UPA);
• Accelerate the region's reparation and
development program;
• Close the existing ACP (Public Civil Actions)
in the territory via conciliation (CEJUSC);
• Conclude the indemnity process with
the relocated families who opted for the
extrajudicial solution;
• Address frequent requests from the
population to complete the decharacterization
plan of the Sul Superior Dam ahead of
schedule, which is not recommended due to
the complexity of the works;
• Reinforcing the public health network with the inauguration of the new Basic Health Unit (UBS) Nossa
Senhora de Bonsucesso, in addition to training more than two hundred professionals through the Health
Cycle program and renovating half of the city's ambulance fleet, as well as donating more than 450 items
to the city's UBSs, including stretchers, thermometers, oximeters, chairs for blood collection, computers,
tablets, routers, chairs and tables through the Health Cycle program;
Forquilhas I, II and III Dams, and Grupo,
at the Fábrica Mine:
Itabirito
Forquilha I, II and Group: emergency level 2
• Holding public consultations with 300 people from the São Gonçalo do Bação community about paving
the remaining 5.2 km of the MG-030 access stretch to the district, held in 2021;
• Complete indemnities;
• Conducting a study of conceptual solutions to minimize flooding in the Itabirito River, with the
objective of helping municipal management find solutions for flood prevention;
• Return Secondary Safety Zone (ZSS) families
to their original homes;
Forquilha III: emergency level 3
• Illuminating tourist spots;
• Building Itabirito's Territorial Development and Social Transformation Program, to foster the city's
protagonism and local entrepreneurship culture, with the participation of 35 individual entrepreneurs
and 14 associations from Itabirito;
• Completing the renovation and construction of courts in five municipal schools in Itabirito;
Vale
1. Profile
2. Business Model
3. Purpose and Values
4. Strategic Pillars
5. Focus on Reparation
6. Dams
31
PresentationGovernance and ComplianceFinancial CapitalNatural CapitalHuman CapitalIntellectual CapitalSocial CapitalManufactured Capital AssuranceCritical AnalysisCreditsValeGRI Index Municipality
Dam/site and Emergency Level
Projects in progress or completed in 2021
Key Challenges
Ouro Preto
Doutor Dam, Timbopeba Mine
(emergency level 1)
• Renovating the Daura de Carvalho Neto State School in partnership with the Minas Gerais Secretary of
Education to benefit more than 600 children;
• Renovating the Social Assistance Reference Centre (CRAS) to benefit more than 840 families, with an
investment of BRL 1.6 million;
• Renovating the Sorria Foundation to improve the oral health care for about 600 children and
adolescents, with an investment of BRL 847,000;
• Supporting to strengthen the public health policy in the district of Antonio Pereira through the
Cooperation Agreement with the Municipality of Ouro Preto to expand health and psychosocial care
• Insecurity for the remaining population, after
the sequence of resettlements that took
place
• Impact Management of the dam's
decharacterization works due to the
proximity of the community
In Conselheiro Lafaiete, 648 students were
preventively relocated due to the technical
reassessment of the stability of a waste rock pile
in the operations near Meridional School. Work
on the new headquarters of the school started in
September 2021, and is expected to be completed
in 2022. Since March 2020 the students have
occupied a transitional structure created by Vale
on the premises of the Presidente Antônio Carlos
University Centre (Unipac).
INVOLUNTARY RESETTLEMENT IN BRUMADINHO AND OTHER
EVACUATED TERRITORIES GRI G4 MM9
Key lessons learned:
• Taking responsibility for the facts and
• Humility is a must for dealing with such a
their consequences is the first sign of our
sensitive situation.
commitment to remediate.
• Strong management and operational
• Empathy and compassion take on a
discipline are crucial for successful
deeper meaning in light of the losses of
recovery.
those affected.
• Communication cannot be perceived
164
177
13
146
107
39
121
84
37
84
25
16
3
19
109
• Active listening and presence in the field
as advertising. The tone of voice should
to understand and legitimize demands.
respect the perspective of those affected.
• Discussions based on technical grounds
• Not being afraid of difficult
and KPIs defuse ideological conflicts
conversations with critical stakeholders is
Ouro Preto
Barão de Cocais
Nova Lima
Itabirito
Brumadinho
key to building trust.
Interim service (accumulated until 2021) Definitive service (only in 2021) Total
Access our Reparation Report, with the main initiatives from 2021.
Learn more about our initiatives
Vale
1. Profile
2. Business Model
3. Purpose and Values
4. Strategic Pillars
5. Focus on Reparation
6. Dams
32
PresentationGovernance and ComplianceFinancial CapitalNatural CapitalHuman CapitalIntellectual CapitalSocial CapitalManufactured Capital AssuranceCritical AnalysisCreditsValeGRI Index The Renova Foundation and reparation in
Mariana
Nineteen people died and thousands of livelihoods
were impacted due to the breach of the Fundão Dam
in Mariana (MG) on November 5, 2015. The dam was
operated by Samarco through a joint venture with an
equal stake owned by Vale and BHP (50%/50%).
Reparation in Mariana has been a complex and
challenging mission, both because of the breadth
of territories impacted by the rupture of the
Fundão Dam, and because of the multiple social,
cultural and economic characteristics of the
region, which covers 39 municipalities in two
states (Minas Gerais and Espírito Santo).
Throughout this period, the Renova Foundation,
created in 2016 through the Transaction and
Conduct Adjustment Agreement (TTAC), has
followed through with the commitment to fully
repair the damage caused to all those affected
and the environment. In December 2021, BRL
20.2 billion had already been disbursed by the
Renova Foundation for the reparation, of which
BRL19.6 billion went to execute the reparation and
compensation programs and the difference went
to administrative and governance expenses. Of
this total, BRL 4.7 billion was funded by Samarco
and BRL15.5 billion was funded by Vale and BHP
in equal shares. In 2021, Renova received BRL
3.7 billion from Samarco, BRL 2.15 billion from
Vale, and BRL 2.15 billion from BHP, and spent a
total of BRL 8.4 billion on its activities (BRL 7.6
billion on reparatory programs, BRL 0.7 billion on
compensation programs, and BRL 0.1 billion on
administrative/governance expenses). Since its
creation, the three sponsors have contributed BRL
19.6 billion of financial resources and spent BRL
20.2 billion: BRL 18.0 billion in reparatory programs,
BRL 1.6 billion in compensatory programs, and BRL
0.6 billion in administrative/governance expenses.
Expected disbursements in 2022 are BRL 10.4
billion, and a further BRL 6.5 billion approximately
by the end of the Foundation's mission.
EXPENDITURES FROM
2015 TO 2021
(in BRL million):
20,152
8,413
3,644
2,720
2,132
1,349 1,770
124
2015 2016 2017 2018 2019 2020 2021
Total
In August 2018, the Governance Conduct Adjustment
Term (TAC) was signed, which changed the
governance established in the TTAC to a more
independent and participatory model. This model
involve more than 70 entities working in partnership
with the support of more than 25 universities
and 40 NGOs and partners; about 6,000 people
who contribute to obtaining solutions to the
challenges together; and the direct participation
of the local committees of those affected to
negotiate indemnities and advance solutions in the
resettlement process.
These two agreements continue to guide the
actions of the Renova Foundation. Vale will continue
to seek an expedited reparation through Renova's
governance bodies and is open to discussions
that may speed up the reparation efforts. Vale is
aware that the speed of the Mariana reparation
does not meet society's expectations and has been
supporting to speed up this process.
ADVANCES AND CHALLENGES IN INDIVIDUAL
INDEMNITIES
With regard to the indemnity process, the Mediated
Indemnity Program (PIM in Portuguese) was
initially installed to pay emergency financial aid and
individual indemnities. However, a challenge was
identified from the beginning: how to compensate
informal workers, such as fishermen, cart drivers,
washerwomen and artisans, who had no way to
prove the damage caused to them by the rupture.
A new solution came through a court decision,
which instituted the Simplified Indemnity
System (Novel), in August 2020, which allowed
for advances in the compensation process.
By December 2021, more than 363,000 people
along the Rio Doce River Basin had received BRL
8.7 billion in total indemnities and emergency
financial aid (AFEs) paid out. Of this total, more
than 51,800 people along the Rio Doce River Basin
received BRL 5.1 billion in indemnities paid through
the Simplified Indemnity System.
DELAYS IN THE RESETTLEMENT PROCESS
The Renova Foundation faces challenges related to
the resettlement process that have contributed to
delays, mainly related to the Covid-19 pandemic. Of
about 600 consultations planned for the restitution
of the right to housing in the resettlement process,
107 were concluded by 2021.
The process relies on the participation of the
community and other stakeholders, such as justice
institutions and government agencies. In parallel
to housing construction, initiatives are underway
to provide integrated support to micro and small
businesses, which serve, in addition to the rest of the
territory, about 160 families from the resettlements;
support school and cultural integration activities;
and provide guardianship and protection for rescued
animals, among others. All these initiatives make
up an integrated solution to restore the affected
population’s rights to shelter and livelihoods.
Vale
1. Profile
2. Business Model
3. Purpose and Values
4. Strategic Pillars
5. Focus on Reparation
6. Dams
33
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ATTENDANCES IN 2021
Bento Rodrigues
Collective
46
(42 Houses and 4
Public Assets)
*24 new houses and 1 rebuilt
Family Resettlement
Pecuniary Assistance
Gesteira Services
25*
9
27
To conclude these services, the restitution of the
right to housing is granted through the following
modalities:
Collective Resettlement of
Bento Rodrigues
In 2021, infrastructure was completed for Bento
Rodrigues, which includes four public assets:
a school, health care unit and service station,
multi-sports court, and sewage treatment plant,
in addition to other infrastructure such as public
lighting and pavement. Additionally, a total of 47
houses were built, 42 in 2021 and 5 in 2020.
Collective Resettlement of
Paracatu de Baixo
In Paracatu de Baixo, about 93% of the
infrastructure has been completed, such as access
and drainage, and construction on the school and
11 houses began in 2021.
Family Resettlement
Through this modality, a family can choose a nearby
property to live in, or even a plot of land where their
new home will be built. By 2021, 36 houses had been
delivered, and 29 had been built (five by 2020 and 24 in
2021) and seven rebuilt (six by 2020 and one in 2021).
Gesteira Services
By 2021, Gesteira had 29 completed letter of credit
processes (similar to family resettlement). Two had
been completed by 2020 and 27 by 2021.
Pecuniary Assistance
In the Pecuniary modality, affected parties, within
their liberality and safeguarding all of their rights,
request a cash payment in an amount equivalent
to their right to housing. In total, 10 families
had their right to housing restored through cash
payments: one by 2020 and nine by 2021.
Until the properties are delivered, the resettling
public can reside in temporary housing, where
all the costs of maintenance and guarantee of
habitability are borne by the Renova Foundation,
which also provides transportation to the
temporary schools and leisure and integration
activities. The original cultural manifestations of
the affected villages are encouraged and their
continuity is guaranteed by the Renova Foundation
as well, which promotes several actions to
maintain and strengthen these activities.
Vale recorded an additional provision of BRL2.8
billion, which went to disbursements expected to
support Samarco and the Renova Foundation due to
budget overruns in the resettlement works – mainly
related to delays due to the pandemic. Some of
these funds also went to include new communities
and categories in the indemnity program.
REPARATION AGREEMENTS WITH
INDIGENOUS PEOPLES AND TRADITIONAL
COMMUNITIES
In 2015, the collapse of the Fundão dam impacted
the Krenak indigenous peoples in the municipality of
Aimorés, state of Minas Gerais and the Tupiniquim
and Guarani people located in the Comboios, Caieiras
Velhas II and Tupiniquim Indigenous Lands in the
municipality of Aracruz, state of Espírito Santo.
The Degredo quilombola community, located in the
municipality of Linhares, state of Espírito Santo, was
also impacted by the event.
In 2021, full reparation agreements, including the
payment of family compensation, were signed
with the Tupiniquins and Guarani indigenous
peoples on all affected indigenous lands,
benefiting 1,322 families.
These agreements with the Indigenous
populations were built together with the
communities, respecting their self-determination
and the due consultation process. Besides family
compensation, the negotiation prompted the
creation of a program to support economic activity
resumption and a fund to indemnify immaterial
and collective damages, and the detailing of the
actions of the Indigenous Basic Environmental Plan
to be executed in the communities.
An agreement was also signed with the
Quilombola Community of Degredo, which has
also been receiving individual compensation and
its Basic Environmental Plan will be, at the request
of the community itself, executed by the Local
Community Association that also acts as Technical
Advisor, strengthening the community’s autonomy.
Learn more
All the information can be
checked at Renova's website.
Vale
1. Profile
2. Business Model
3. Purpose and Values
4. Strategic Pillars
5. Focus on Reparation
6. Dams
34
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Renegotiation of the Programs of the
Mariana Reparation Agreement
The Governance TAC also provides for a single
process for renegotiating the socioeconomic
and socioenvironmental programs to remediate
the damage resulting from the collapse of the
Fundão dam. Considering the judicialization of
several themes, by several players; the advent
of the creation of the Priority Thematic Axes in
the 12th Court; and in view of the need to confer
greater celerity, efficiency, and definitiveness,
the renegotiation was initiated. This procedure,
which is currently underway, aims to improve the
programs without, however, confusing, inhibiting
or harming the reparatory and compensatory
actions, already carried out and/or in progress.
Thus, in April 2021, the National Council of Justice
(CNJ in Portuguese), started to promote the
mediation of this renegotiation process, together
with the parties: Samarco, its shareholders Vale
and BHP, as well as several justice institutions and
representatives of the public power. There was
also the participation of those affected, through
the holding of public hearings on the Mariana
case, as well as other face-to-face meetings
in Brasilia, Belo Horizonte and Vitória, with
representatives of the parties involved in order
to seek conciliation regarding the full reparation
process for the damage in Mariana. In June 2021,
a letter of principles was signed between the
parties with the guidelines that aim to guide
the renegotiation of these programs, as well as
discussion on the simplification of governance
and measures to confer definitiveness in the
reparation process. The meetings are still
ongoing.
The mediation of the renegotiation
process with the parties started to be
promoted by the National Council of
Justice in April 2021
Vale
1. Profile
2. Business Model
3. Purpose and Values
4. Strategic Pillars
5. Focus on Reparation
6. Dams
Aerial View of
Bento Rodrigues
Resettlement
Judicial Reorganization of Samarco
In 2021, Samarco filed for judicial reorganization before one of the Business
Courts of the District of Belo Horizonte in the state of Minas Gerais to preserve
its ability to produce, ship, receive exports and finance the normal course of its
activities, and to comply with the obligations of the Transaction and Conduct
Adjustment Agreement (TTAC).
The judicial reorganization request does not and will not impact compliance
with the reparation commitments assumed as a result of the breach of the
Fundão Dam.
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35
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Commitment
of non-repetition
One of the pillars of our work in the committing
to non-repetition of ruptures such as Brumadinho
and Mariana, is the decharacterization of all our
upstream dams* in Brazil, always placing the safety
of people and the environment as our top priority.
By decharacterizing seven such structures since
2019 – four in Minas Gerais and three in Pará, out
of the 30 mapped – we have achieved 23% of our
Decharacterization Plan. By 2022, our forecast is
to decharacterize more five upstream structures.
With this, the company expects to end 2022 with
40% – 12 of the 30 mapped dams and structures
– decharacterized.
At the same time and in line with the best practices
for dam management, we have intensified actions
to prevent, correct and monitor unsafe structures,
advancing toward the goal of having no dam in a
critical condition (emergency level 3) by 2025.
These actions also increase the safety of the
upstream structures that will be decharacterized,
until the preparatory and engineering steps for
decharacterization are completed. See more in
Dams (chapter link).
*The term dam includes dams and dam systems, called
Tailings Storage facilities (EAR in Portuguese), dry
stacking, and saddle and internal dikes.
SOME QUOTES FROM VALE'S REPUTATION SURVEY THAT ASSOCIATE THE TERM "DAM" WITH THE COMPANY:
Dam, environmental destruction
"You have to do something impressive about what happened in
Brumadinho and show that it is doing something differently in
other locations." (representative from Pará state)
Dam
"The company needs to improve investment
in safety" (representative from Espírito Santo state)
Dams
"Trying to repair its mistakes, seeking improvement and safety in
the way of mining." (representative from Maranhão state)
Dam, destruction
"Don't let things like this ever happen again, you have to assume
responsibilities." (representative from Rio de Janeiro state)
Dam Breach
"The company needs to show more about its safety procedures
of safety, what they changed after the accident, how they are
preventing themselves." (representative from São Paulo state)
Dam, destruction
"You need to take your responsibilities and make sure that you won't
make the same mistakes." (representative from Minas Gerais state)
Dams GRI 103-2, 103-3
The Brumadinho and Mariana events have
changed the global perspective on the use and
management of dams in mining. Since then,
we have been working on decharacterizing
or eliminating upstream structures in Brazil
and have been progressing in developing
technologies to reduce and dispose of tailings.
We know that we have a long way to go.
The issue of dams is currently one of the
biggest challenges in the mining sector and
especially at Vale, because, while they are
important for continued production, they cause
the perception of insecurity in the communities
near the operations, especially in the state of
Minas Gerais.
In the following topics, we present the key
measures we have taken to ensure the robust risk
management and to reduce the dependence on
dams in our operations.
DAM RISK MANAGEMENT MODEL
The management of dam assets, which include
dams to contain water, tailings and sediment, is
guided by a Policy for Dam Safety and Geotechnical
Mining Structures. The policy establishes
guidelines and commitments for managing these
structures in line with ABNT NBR ISO 9001:2015
– Quality Management System (QMS), the
documents of the Canadian Dams Association
(CDA), the Australian Committee on Large Dams
(ANCOLD), the International Committee on Large
Dams (ICOLD), the Mining Association of Canada
(MAC), the International Council on Mining and
Metals (ICMM), and the International Finance
Corporation (IFC), among others.
Vale
1. Profile
2. Business Model
3. Purpose and Values
4. Strategic Pillars
5. Focus on Reparation
6. Dams
36
PresentationGovernance and ComplianceFinancial CapitalNatural CapitalHuman CapitalIntellectual CapitalSocial CapitalManufactured Capital AssuranceCritical AnalysisCreditsValeGRI Index In 2021, the Independent Committee for
Extraordinary Advisory on Dam Safety published its
final report (CIAE-SB, in Portuguese acronym - Final
Report, 2021), and has now been discontinued. To
support governance of dam safety, the committee’s
members became independent members of the
Independent Tailings Review Board (ITRB), acting
as external reviewers of Vale's risk management
system in line with the recommendations of the
Global Industry Standard on Tailings Management
(GISTM). Our Geotechnical Executive Risk
Committee continues to monitor our Upstream
Dam Decharacterization Plan and our progress in
implementing the Dam and Tailings Management
System (TDMS) in alignment with the GISTM. It
also analyzes our governance model, composition,
duties and accomplishments of the ITRBs.
MANAGEMENT SYSTEMS
Vale has been implementing its Tailings & Dams
Management System (TDMS) since 2020, which
covers the Routine, Performance and Risk pillars, all
strategic aspects of dam and tailings storage facilities
(EARs). In 2021, the TDMS also included all business
units with clearly defined roles and responsibilities.
For 2022, the consolidation of the system is planned,
and training for all geotechnical teams.
BUSINESS
UNITS
SAFETY
& RISK
INTERNAL AUDIT AND
WHISTLEBLOWER CHANNEL
Geotechnical
Operations Team
Safety & Operational
Excellence Office
Compliance Office
(Internal Audit and
Whistleblower Channel)
1ST LINE OF DEFENSE
2ND LINE OF DEFENSE
3RD LINE OF DEFENSE
EXTERNAL SENTINELS
Engineer of Record
Dam safety inspections and
performance assessments
Independent Auditors
Public prosecutors technical
reviews and the Independent
Tailings Review Board (ITRB)
Dam Safety Reviews
Periodic technical reviews
by external engineering
company
Based on the TDMS, the work of the Engineer of
Record (EoR) for continuous monitoring of the
structures is required for dams and Tailings Storage
Facilities with a consequence classification of High,
Very High and Extreme. The EoR performs regular
safety inspections and issues monthly technical
reports in order to continuously interpret the
results of the inspection and monitoring activities
of the structures, among other duties. External to
operations, the EoR is integrated into Vale's lines of
defense.
Risk Assessment GRI 102-11
• 100% of the portfolio of dams and tailings
storage facilities with high, very high and extreme
consequence classification will have Hazard and Risk
Assessment (HIRA) for geotechnical structures by
the end of 2022, covering 56 structures.
Status in 2021: In 2020 and 2021 HIRAs were
conducted for the Dams and EARs with Extreme
consequence classification and others considered
priority, contemplating 64 structures.
Vale
1. Profile
2. Business Model
3. Purpose and Values
4. Strategic Pillars
5. Focus on Reparation
6. Dams
• 100% connected to Vale's Enterprise Risk
Management (ERM)
Status in 2021: The risks related to the rupture
of dams and EARs are inserted in the Business
Risk Management (GRN in Portuguese) system
with established standardized controls.
These risks will be gradually migrated to the
operational risk base considering the specific
critical assessments and controls defined
in the HIRAs. Operational risks must also be
identified as business risks according to criteria
established in the company's risk management
standards.
• 100% of tailings storage facilities operated with
potential very high and extreme consequences
should comply with the GISTM by 2023, and the
others by 2025.
Status in 2021: The methodology was developed
in 2021 and the first round of GISTM self-
assessment was performed, with an average
result of 60% adherence to its requirements.
Learn more
About our dam
management
approaches
Access
the GISTM
37
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In 2021, the construction of
the downstream containment
structure (ECJ) that serves the dams
Forquilhas I, II, III, IV and Group
Where are Vale's
dams located
In Ferrous Mineral operations, all
located in Brazil, Vale has:
124
dams
registered*
with the National Mining Agency
(ANM in portuguese), of which:
85%
are located in Minas Gerais
43
are taillings dams
93 dams and
2 dry stacking
are subject to the Regular
Safety Inspection Report on
a semi-annual basis covered
by the National Dam Safety
Policy.
In the North Atlantic Base Metals
operations, there are 64 tailings
dams or tailings storage facilities
(EARs), located in Canada (Ontario,
Manitoba, Newfoundland and
Labrador), totaling 67 structures
for the business (added to the 3
Base Metals operations in Brazil).
Of this total, 43 are active tailings
dams and 24 are inactive dams.
All dams located in Canada
have their performance publicly
reported in according to the
Towards Sustainable Mining (TSM)
program of the Mining Association
of Canada (MAC).
Understand Vale's dams.
*The 124 registrations account for dams, tailings storage facilities and dam/structure
systems, such as the Pontal System.
Vale
1. Profile
2. Business Model
3. Purpose and Values
4. Strategic Pillars
5. Focus on Reparation
6. Dams
38
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MONITOR AND REDUCE DAM USE
In recent years, the company has sought to
significantly reduce its dependence on the
use of dams. To this end, it has invested in
new potential solutions and intensified the
frequency of monitoring and conservation status
assessments of its dam structures.
Vale has already invested
USD 19.5 billion in facilities and
projects that seek to reduce
dependence on dams
Processing to
natural moisture
In 2021, Vale began tailings removal with unmanned equipment
operated from a remote center. Among the emergency level 3 dams, we
initiated tailings removal in two of them, and continued this process in
relevant structures, such as the Vargem Grande Dam. We also adopted
remotely controlled probing equipment was also adopted, which allows
probing to a depth of 100 meters at the dams, with more flexibility to
maintain and monitoring of the structures.
Three Geotechnical
Monitoring Centres (CMGs),
with 24-hour instrumented
and video monitoring
Water level monitoring at
different points of the dam,
with specific instruments
Measuring the dam's response
to seismic activity with
specific instruments
Radars monitoring
Using of satellite and
drone images to monitor
soil conservation and
displacement
Installating
of sirens
To replace the wet processing, where tailings are disposed of in dams, or
in piles after the humidity reduction process, Vale has advanced in the
process of reducing dam dependence.
In the last 13 years, the company has invested about USD 19.5 billion in
facilities and projects that seek to reduce dependence on dams, and in 2021
natural moisture processing reached 70% of Vale's Iron Ore production.
The main advance towards the goal was the approval of the NS04 project,
which uses the dry technique and concentration in Vargem Grande and
will contribute 1.5 Mta. Currently, there are three more dry concentration
projects for anticipated development in the coming years.
Another potential solution that is being studied is the dry magnetic
concentration of Iron Ore based on technology developed by New Steel, a
company acquired by Vale. The technology eliminates the use of water in
the low-grade ore concentration process, allowing the generated waste
minerals to be stacked, instead of being sent to dams.
Learn more
About
the solutions.
EMERGENCY ACTION PLANS FOR
MINING DAMS (PAEBM)
Part of the Dam Safety Plan (PSB in Portuguese),
the PAEBM is a technical document that defines
immediate actions in case of emergency. It is
filed with the City Halls and Brazilian Municipal,
State, and National) Civil Defense that defines
immediate actions in case of emergency.
Under the scope of community safety, as a
preventive measure, Vale performs a social
data survey of all people inserted in the Self-
Rescue Zones (ZAS*) on its floodplains. Included
in the PAEBM, the data involves information
about the people concerned in the risk zone,
especially those with any mobility restrictions
or any physical, social, or territorial vulnerability
associated with the ability to self-rescue.
Vale
1. Profile
2. Business Model
3. Purpose and Values
4. Strategic Pillars
5. Focus on Reparation
6. Dams
39
PresentationGovernance and ComplianceFinancial CapitalNatural CapitalHuman CapitalIntellectual CapitalSocial CapitalManufactured Capital AssuranceCritical AnalysisCreditsValeGRI Index Vale's plan also includes the construction of
three other downstream containment structures
for certain dams and dikes to hold tailings
in case these structures fail, protecting the
downstream area during the decharacterization
works. The first of these structures is scheduled
for completion in the second half of 2022, and
the other two are in the preliminary engineering
analysis phase.
to ensure that all work is in line with the best
engineering practices and carried out as safely as
possible. After completing deeper technical studies
on the structures, taking into account peer reviews,
and audit evaluations, more appropriate solutions
have been defined for the decharacterization
program, therefore some previously reported
deadlines had to be revised and an additional
provision of USD 1.7 billion was made.
By the end of 2021, Vale completed 23% of the
Dam Decharacterization Plan. Since this is a
rather complex process, several steps were taken
Due to the technical impossibility of meeting the
deadlines established in the legislation governing
the decharacterization of upstream structures, in
Rio de Peixe dam,
decharacterized
in 2021
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ECJ Sul
Superior dam,
in Barão de
Cocais
When the Emergency Level of a dam is raised, the
PAEBM should be activated, and from level II on,
the communities located in Self-Rescue Zones*
should be resettled to safe areas, outside the
floodplain.
The resettlement process is intended to occur in a
planned manner, considering previously collected
information, in synergy with the Municipal Civil
Defense and respecting and protecting the
human rights of those involved. It is important to
emphasize that Brazilian law requires people to
be resettled when dams are at Emergency Level
III, but Vale, aiming to reduce the risk, promotes
the resettlement of families whenever dams are
at Emergency Level II. See more in Evacuated
Territories.
Learn more
Access the PAEBMs
*The Self-Rescue Zone (ZAS) is the region located below the
structure of a dam, at a distance of 10 km or with an arrival
time of the tailings, in the extreme case of a breach, of 30
minutes. Due to its proximity, it is considered a priority in risk or
emergency situations. Under Brazilian law, there is an obligation
to evacuate the areas closest to the dam if it is considered an
emergency level 3. As a preventive measure, however, Vale
indicates that the action takes place at level 2.
DAM DECHARACTERIZATION PLAN
One of Vale's main initiatives is the
decharacterization of all upstream geotechnical
structures in Brazil, including dams, dikes and
drained stacks. Once the decharacterization is
completed, the area is reincorporated into the local
environment.
In 2021, Vale's plan to decharacterize or eliminate
upstream structures was reviewed. It includes 30
geotechnical structures, encompassing now the Área IX
Dam, at the Fábrica Mine in Ouro Preto (MG) which had
its construction method re-evaluated and changed.
During the period, Vale concluded the
decharacterization of the Fernandinho dam and also
decharacterized the seventh upstream structure
and completed works on Dike 5 of the Pontal Dam in
Itabira, wich is awaiting regulatory agencies' evaluation
and no longer has the tailings storage capability.
We also completed the construction of the
downstream containment structure serving the
Forquilhas I, II, III, IV and Grupo Dams. With this
delivery, all the dams at emergency level III now have
a downstream back up dam.
Vale
1. Profile
2. Business Model
3. Purpose and Values
4. Strategic Pillars
5. Focus on Reparation
6. Dams
40
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February 2022 Vale signed a Term of Commitment with
the Minas Gerais Government, regulatory agencies, and
State and Federal Public Prosecutors' Offices. Through
this document the schedule and our commitment of
the decharacterization of all upstream structures in
Brazil were formalized, besides placing the safety of
people and protection of the environment as absolute
priorities. Under the term of the agreement, Vale will
contribute with USD 43.7 million for investments in
social and environmental projects, to be disbursed over
eight years.
The most recent update of the Decharacterization Plan
indicates that 90% of the upstream dams in Brazil are
slated to be decharacterized by 2029 and 100% will be
decharacterized by 2035. The structures with a longer
deadline are those of higher risk, and greater complexity.
Learn more
Access the lists of structures at emergency
levels, of geotechnical structures, and the
details of the tailings dams.
FORECAST FOR
DECHARACTERIZATION OF
GEOTECHNICAL STRUCTURES
Number of upstream
geotechnical
structures
(cumulative)
7
5
4
2
1
3
5
3
Year of
decharacterization
2019 to 2021
2022
2024
2025
2026
2027
2029
2035
MEASURES FOR UPSTREAM DAMS AT EMERGENCY LEVEL 3
Measures for upstream dams under critical
safety conditions
Downstream containment structure (ECJ)1
Decharacterization
Sul Superior
B3/B4
Forquilha III
2020
2029
2020
2027
20212
2035
1 The Downstream containment structure (ECJs) were designed considering the tailings containment of the structures for which they
are intended, and updates and adaptations may be necessary. The company monitors extreme weather events and, in the occurrence
of these events, the technical teams are mobilized to evaluate and implement improvements that are necessary for the adequacy of
the structures.
2 Structure with the capacity to retain the tailings from the Forquilha I, II, III, IV and Grupo structures, in case of simultaneous rupture.
MINERAL WASTE MANAGEMENT
GRI 103-2, 103-3, MM3
Mining-metallurgical waste includes waste rock,
tailing rock, slag, and other wastes generated in the
metallurgical processes of Nickel, Copper, Cobalt, Iron
Ore, and Manganese. The topic is managed based on
the Mining and Metallurgical Waste Management
Policy, which comprises a set of guidelines to
encourage the circular economy.
TOTAL MINING AND MATELLURGICAL
in millions of tons
2017
2018
2019
2020
2021
243 83.7
250.0 97.6
235.7 55.2
402.5
729.2
341.7
689.3
335
625.9
4
.
5
191.6 4
2
7.
207.6 4
290.7
527.8
260.4
515.3
Other business areas2 Iron Oren - Tailings rock
Iron Ore - Waste rock
2 Other business areas include coal mining waste rock and tailings, nickel, copper, manganese, slag
(manganese-nickel alloy), non-inert waste rock (nickel).
Vale
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2. Business Model
3. Purpose and Values
4. Strategic Pillars
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6. Dams
41
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Sustainable
sand from
tailings
Filtered
tailings
piles
With R&D an investment of approximately
USD 9.3 million, Vale developed in 2021 a
certified sand for the civil construction
market, based on adjustments to its Iron
Ore processing operations in Minas Gerais.
This material, that was previously discarded
through piles and dams, is now processed
and transformed into a product, following a
strict quality control process.
In 2021, 250,000 tons of sand were
processed and sent for sale or donation
to be used in concrete, mortar, precast,
artifacts, cement, and road paving.
To reduce the use of dams, Vale have
announced an estimated investment of USD
2.2 billion between 2019 and 2026 to deploy
dry stacking technology for tailings in Minas
Gerais. The technique would allow the water
from the tailings to be filtered, reused and
stacked to reduce the use of dams.
One of the main progresses in 2021 was the
execution of the Experimental Landfills
at Itabira and Brucutu, this enabled the
implementation of the filtered tailings pile
(PDR in Portuguese) projects. Besides, 16
different tailings have been chatacterized
allowing a tremendous progress in more than
10 PDR projects. Operations of at least three
more PDRs are planned for 2022.
Vargem Grande
filtration
plant
In 2021, operations began at the Vargem
Grande filtration plant, the first of four
filtration plants in Minas Gerais, reducing
dependence on dams and improving the
average quality of the product portfolio
through wet processing.
Production capacity was increased by
4Mtpa and began operations at the
Maravilhas III Dam, which is planned to
receive only the ultrafine tailings from
the plants, equivalent to approximately
30% of the total tailings generated by
this operation.
Learn more
About the process.
Learn more
ESG Databook.
Vale
1. Profile
2. Business Model
3. Purpose and Values
4. Strategic Pillars
5. Focus on Reparation
6. Dams
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PresentationGovernance and ComplianceFinancial CapitalNatural CapitalHuman CapitalIntellectual CapitalSocial CapitalManufactured Capital AssuranceCritical AnalysisCreditsValeGRI Index
Governance
and Compliance
1. Governance structure
2. Risk management
3. Compliance
Serra Sul Complex, S11D.
In the photo, the Vale
employees, Amanda
Neves Lírio (trainee),
Wellington dos Santos
Lemos (in middle of
the photo) and Luciano
France Palhares (on the
left of the photo) in the
mine workshop
Vale | Integrated Report 2021
S
E
L
E
T
O
D
R
A
C
I
R
:
O
T
O
H
P
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PresentationGovernance and ComplianceFinancial CapitalNatural CapitalHuman CapitalIntellectual CapitalSocial CapitalManufactured Capital AssuranceCritical AnalysisCreditsValeGRI Index
Governance Structure GRI 102-18 | 103-2, 103-3
On December 31, 2021, Vale S.A.'s share capital
consisted of 5,132,458,398 common shares and 12
special class preferred shares (golden shares). In
February 2022, the Board of Directors approved
the cancellation of 133,418,347 common shares
issued by the Company acquired in a previous
repurchase program and held in treasury, with no
reduction in the value of its share capital. GRI 102-10
TOTAL SHARES AS OF FEBRUARY 28, 2022
Others
Shareholders with more
than 5% of total capital
56.48%
Others
1 Position as of 12/31/2020
2 Position as of 09/28/2021
6.32%
Shares in treasury
8.07%
Previ
6.35%
Capital Research
Global Intestors2
5.58%
Mitsui&Co
5.45%
Blackrock, Inc1
6.53%
5.22%
Capital International
Intestors2
Capital World
Intestors2
Governance and Compliance
1. Governance Structure
2. Risk Management
3. Compliance
ADVISORY
COMMITTEES
• Audit
• Operational Excellence and Risk
• Finance
• Innovation
• People, Compensation, and
Governance
• Nominating
• Sustainability
GENERAL MEETING
BOARD OF
DIRECTORS3
PRESIDENT(CEO)4
Eduardo Bartolomeo
EXECUTIVE OFFICERS
Alexandre Silva D’Ambrosio
Executive Vice-President
of Legal and Tax
Alexandre Pereira
Executive Vice-President
of Global Business
Solutions
Carlos Medeiros
Executive Vice-President
of Safety and Operational
Excellence
Gustavo Pimenta
Executive Vice-President
of Finance and Investor
Relations
Luiz Eduardo Osorio
Executive Vice-President
of Institutional Relations
and Communication
Maria Luiza de Oliveira
Pinto e Paiva5
Executive Vice-President
of Sustainability
Marcello Spinelli
Executive Vice-President
of Ferrous
Marina Quental
Executive Vice-President
of People
Luciano Siani
Executive Vice-President
of Business Strategy and
Transformation
Deshnee Naidoo
Executive Vice-President
of Base Metals
FISCAL COUNCIL
Audit and Compliance
Department
• Internal Audit
• Whistleblower Channel
• Corporate Integrity
General Secretariat for
Corporate Governance
3 Read more about the members
of the Board of Directors and
their background, and about
the composition of the Advisory
Committees.
4 At Vale, the chief executive officer
shall not accumulate the position of
chairman of the Board of Directors.
5 In 2022, the special director for
Reparation and Development,
Marcelo Klein, will report to
the executive vice-president of
Sustainability, Maria Luiza Paiva.
GRI 102-23
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PresentationGovernance and ComplianceFinancial CapitalNatural CapitalHuman CapitalIntellectual CapitalSocial CapitalManufactured Capital AssuranceCritical AnalysisCreditsValeGRI Index BOARD OF DIRECTORS
The Board of Directors is responsible for
overseeing the company's guidelines and strategic
plans, monitoring and evaluating its economic and
financial performance, electing and evaluating the
members of the Executive Board, and deliberating
on corporate policies, among other duties. In 2021,
Vale continued to evolve its governance, seeking
references in national and international best
practices and deepening its understanding of the
perspective of its main stakeholders. In addition,
it is also responsible for ensuring compliance with
commitments related to respect for human rights,
corporate governance rules, accountability, and
information disclosure. GRI 102-20, 102-26, 102-27
Governance practices
As required by the Brazilian Securities and
Exchange Commission (CVM), Vale publishes
an annual Report on the Brazilian Code
of Corporate Governance – Publicly Held
Companies ("the Report"). Through the Report,
Vale sets forth the practices recommended by
the Brazilian Institute of Corporate Governance
(IBGC) and that are adopted by the company.
Access the Report.
"Today we have a Board
of Directors committed
to consolidating
solid governance
following international
best practices for a
corporation. The Board
has paid full attention to
the cultural evolution of
the company, prioritizing
Vale's strategic
reorientation, and our
commitment to the ESG
agenda."
José Luciano Duarte Penido
Chairman of Vale's Board of
Directors
Board election and migration
to the "corporation" model
In 2021, the Annual Shareholders'
Meeting (AGO) was held to elect of
Vale's Board of Directors. It was the
first AGO to be held after the expiration
of Vale's Shareholders' Agreement in
November 2020. Vale's migration to
the "corporation" model, or to being a
company with dispersed capital - with
no defined control - is a landmark in
the company's history.
There were also changes to Vale's
Bylaws in order to implement
governance improvements, mandating
a Board of Directors composed of 11
to 13 full members and one alternate
(with the exception of the employees
representative), of which at list seven
must be independent, under a more
restricted concept of independence
provided for in the Bylaws; the
individual election of Board members,
except for employee representatives,
who continue to be elected in a separate
vote; and the election of the chairman
and vice-chairman of the Board by the
Shareholders' Meeting, with the adoption
of a lead independent director in case of the
election of a non-independent chairman of
the Board.
The Board is now composed of 13 members,
eight of whom are independent (up
from three in 2020), most of whom have
expertise in mining or related industries,
sustainability and governance.
Of the 13 current members of the Board
(term 2021-2023), one is an employee
representative, eight were nominated by
Vale's Nomination Committee and four were
nominated by shareholders.
Learn more
See the Board of Directors’
regulations and its entire
composition. GRI 102-22, 102-24
Governance and Compliance
1. Governance Structure
2. Risk Management
3. Compliance
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PERFORMANCE EVALUATION OF THE
BOARD AND ADVISORY COMMITTEES GRI 102-
27, 102-28
The Board of Directors recognizes that a robust
and constructive evaluation process is an essential
component of good corporate governance and its
effectiveness.
FISCAL COUNCIL
The Fiscal Council is a permanent body that
performs independent oversight of the
Executive Board and the Board of Directors and
seeks to contribute to the best performance
of the organization through the principles of
transparency, equity, and accountability.
• Finance Committee
• Sustainability
Committee GRI 102-18
Therefore, the Board has adopted the practice
of conducting annual performance evaluations
with the support of the People, Compensation
and Governance Committee areas. These
will be used to analyze and recommend the
evaluation methodology, seeking opportunities
to continuously improve its governance and
relying on the engagement of the board members
throughout this process. Based on the input
obtained in these processes, a development plan
will be created for the Board and its members,
focusing on the evolution of Vale's governance.
In 2021, due to the recent election of the new
Board of Directors, we decided not to carry out the
evaluation, and this process is planned to be carried
out during 2022 with external consulting support.
For more information on the regular evaluation
process of the Board of Directors, please visit
the company's ESG Portal, Board and Leadership
Section.
See the highlights of the last evaluation,
conducted in 2020, in the Integrated Report 2020.
The Council’s duties include supervising the
managers, reviewing management's annual
reports and financial statements, and maintaining
constant dialogue with the external auditors.
• People, Compensation
and Governance
Committee
Learn more
Access the regulations of
Vale's Fiscal Council.
• Audit Committee
The Innovation
Committee was
created in 2021
• Operational Excellence
and Risk Committee
• Innovation Committee
• Nomination Committee
ADVISORY COMMITTEES GRI 102-29, 102-31
The mission of the Advisory Committees is
to advise the Board of Directors, supervise
the performance and effectiveness of their
business risk management efforts and propose
improvements related to their areas of operation
to promote more efficient and effective decisions
from the Board of Directors.
The Advisory Committees define their annual work
plan for priority topics of their areas. Additionally,
demands for discussions and evaluations
coming from the Committee itself, the Board of
Directors, or the Executive Board are dynamically
incorporated throughout the year.
The committees are composed of independent
members with expertise in the related areas.
One of the highlights of 2021 was the Innovation
Committee creation to devote greater attention
to new technologies and initiatives that provide
more safety, sustainability, efficiency and
competitiveness to Vale's businesses. GRI 102-11,
102-18, 102-19, 102-20, 102-24, 102-29, 102-30, 102-32
Learn more
Information about
the duties and composition of
each committee.
GRI 102-22, 102-24, 102-29
Governance and Compliance
1. Governance Structure
2. Risk Management
3. Compliance
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PresentationGovernance and ComplianceFinancial CapitalNatural CapitalHuman CapitalIntellectual CapitalSocial CapitalManufactured Capital AssuranceCritical AnalysisCreditsValeGRI Index EXECUTIVE BOARD
Vale's Executive Board is responsible for executing the
business strategy approved by the Board of Directors,
developing plans and projects to ensure the company's
efficient operational and financial performance. The
Board of Directors elects the members of the Executive
Board, and the CEO is responsible for submitting the
candidates for the Executive Vice-President positions
for the Board of Directors’ approval. In this process, the
Board is supported by the People, Compensation and
Governance Committee.
In 2021, the structure of the Executive Board was
reviewed and four new positions were created:
Sustainability, People, Legal and Tax, and Business
Strategy and Transformation. Existing roles were
also reviewed to ensure greater alignment with the
company's strategy and promote the evolution of
our corporate governance, as well as to standardize
the executives' contractual conditions and align and
clarify responsibilities. We also nominated the first
non-white female leader for the Executive Board for
the Base Metals business. GRI 102-10, 102-19
Currently, the Executive Board is composed of the
CEO and ten statutory Executive Officers1, nine of
whom are statutory2. Learn more.
1 Vice Presidents appointed as Executive Officers as per Company's
Bylaws
2 They are the Company's legal representatives, responsible for day-
to-day operations and business decisions and for implementing the
general policies and guidelines set by the Board of Directors.
DEFINITION OF COMPENSATION
GRI 102-35, 102-36, 102-37 | 103 | 202
As set forth in Vale's Bylaws, the overall annual
compensation paid to the members of the
Board of Directors, Executive Board, Fiscal
Council and Advisory Committees is established
at the Annual Shareholders' Meeting. The Board
of Directors, with the support of the People,
Compensation and Governance Committee,
is responsible for distributing the approved
compensation.
The compensation of the members of
the Executive Board varies according to
metrics focused on environmental, social,
and governance (ESG) goals, among others,
especially in long-term compensation.
Short term: In 2021, the short-term goals
associated with variable compensation for the
CEO and other executive officers included:
80% OF THE RESULT BASED
ON COLLECTIVE GOALS
20%
20%
10%
5%
15%
10%
10%
10%
Economic and
Financial (Ebitda)
Health and Safety
Operational Risk
Sustainability
People
Productivity*
Vale Production
System - VPS
Specific Block
* The Productivity indicator was not included in the
President's panel and its weight of 5% was transferred to
the Economic Economic and Financial block, totaling 25%.
The remaining 20% is awarded based on the
individual targets defined for each of the
executives, in line with their focus and scope
of operation. Under consideration are elements
such as asset optimization; partnerships with
customers; resumption of production; reparation
and company reputation; dam management; ESG
agenda; integrated innovation; diversity, equity
and inclusion; safety and risk; new products
development; replacement of Nickel reserves;
plant operation; cavities; release for mining;
conducting transformative social projects.
The Health, Safety, Geotechnical, Reparation
and Compliance areas do not have financial
and productivity targets in their compensation
dashboard.
Long term: The long-term variable
compensation is based on shares (Matching and
PAV programs). In the cycle beginning in 2022, it
was proposed to increase the weight of the ESG
metric in the PAV from 20% to 25%, reinforcing
Vale's commitment to best environmental, social
and governance practices.
Four new positions were created: Sustainability,
People, Legal and Tax, and Business Strategy
and Transformation
Governance and Compliance
1. Governance Structure
2. Risk Management
3. Compliance
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Risk Management GRI 102-11, 102-15, 102-30, 102-33, 102-34
PRESIDENT
VICE-PRESIDENT
2019
27%
33%
40%
2019
33%
33%
34%
2020
19%
24%
57%
2020
31%
31%
38%
2021
11%
19%
70%
2021
29%
29%
42%
2022
11%
18%
71%
2022
27%
27%
46%
Risk management in all activities is a crucial topic
when conducting our business. To that end,
we have a Risk Management Policy, which was
revised and approved in 2021, that determines the
main methodologies, guidelines, processes, and
responsibilities on the topic.
Guided by ISO 31000, ISO 55000, COSO-ERM and,
by an operational safety management system
called Risk Based Process Safety (RBPS), Vale's
risk management is structured under the lines
of defense model, in an effort to ensure robust
governance and efficient controls. Learn more.
In addition to the Board's Advisory Committees,
responsible for overseeing the scope and
effectiveness of the executive officers' business
risk management, there are also Business Risk
Executive Committees, created by Vale's Board of
Directors: Operational Risks; Geotechnical Risks;
Strategic; Financial and Cyber Risks; Compliance
Risks; and Sustainability, Institutional Relations
and Reputation Risks. All of these act in a
preventive manner their mission is to support
Vale's executive officers in monitoring risks and
necessary deliberations.
The Integrated Risk Map is assessed and approved
at least once a year by the Board of Directors, on
the recommendation of the Executive Board and
aims to contemplate risks that need to be assessed
and monitored in all units.
Learn more
Access the Risk
Management Policy.
Fixa Variável Curto Prazo Variável Longo Prazo (ILP)
* ILPs: refer to the long-term variable remuneration programs (share-based)
Matching and PAV (Vale Stock Program).
The Integrated Risk Map is evaluated
and approved at least once a year
by the Board of Directors
Governance and Compliance
1. Governance Structure
2. Risk Management
3. Compliance
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PresentationGovernance and ComplianceFinancial CapitalNatural CapitalHuman CapitalIntellectual CapitalSocial CapitalManufactured Capital AssuranceCritical AnalysisCreditsValeGRI Index First full load of a Valemax
type vessel at theTubarão
Port Complex,
in Espírito Santo
KEY LONG-TERM EMERGING RISKS MAPPED
EPIDEMICS AND
PANDEMICS
Collective manifestation of a disease that rapidly
spreads, by direct or indirect contamination, reaching a
large number of people in a given territory (e.g., Covid-19,
ebola, avian influenza, etc)
RUSSIA - UKRAINE
WAR AND
INTERNATIONAL
SANCTIONS
CYBERSECURITY
Escalation of the conflict could lead to disruption of
international trade flows, extreme pricing, high volatility
in the markets, with particular impact on the energy
sector, increased regulatory and contractual uncertainty,
and geopolitical tensions around the world. It may
also lead to a cooling off of the international Sanctions
landscape by imposing new restrictions on selling or
purchasing products, or conducting business with
specific countries, companies and individuals.
Vale's business relies heavily on technological systems
for its operations. Cyber events or attacks can have a
significant impact on our business. Cyber risk management
discipline addresses situations in which the availability,
integrity, and confidentiality of information technology
and operational technology systems can be compromised.
CLIMATE
CHANGE
Increased sense of urgency to address the challenges
that threaten not only the mining industry, but society
as a whole. Low-carbon mining is one of our priorities for
the coming years.
Learn more
See the main causes, impacts, and
risk mitigation actions of the main
emerging risks.
RISK MANAGEMENT PROGRAM - HIRA
Vale relies on the Hazard Identification and Risk
Analysis (HIRA) program for operational risk
management. The program is designed to map
and analyze high-severity operational safety risks
or those of a very high-risk amplitude, identify
and define performance criteria and establishes
assurance of the appropriate critical controls, as
well as the mitigation plans.
In 2021, the 1st HIRA cycle was completed as
part of our strategy to improve operational
risk management. The 2nd cycle has already
started and will last and will be completed in
the next three to five years. As part of the HIRA
program, the Integrated Risk Management tool
was updated, as it now consolidates all the risk
related information in a single platform, which
contemplates the inclusion of the information
from the Risk Management area and other lines of
defense in a single platform.
We concluded
the 1st cycle
of HIRA in 2021
Governance and Compliance
1. Governance Structure
2. Risk Management
3. Compliance
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PHOTO:TADEU BIANCONI / MOSAICO IMAGEM
PresentationGovernance and ComplianceFinancial CapitalNatural CapitalHuman CapitalIntellectual CapitalSocial CapitalManufactured Capital AssuranceCritical AnalysisCreditsValeGRI Index Compliance GRI 103-2, 103-3 | 205, 205-1, 205-2
Ethics and integrity are principles that guide
how we conduct all of our activities. In 2021, Vale
launched its Global Ethics & Compliance Program,
consolidating activities to promote ethical conduct
and anti-corruption behaviour.
The program has six pillars, which guide the
expected behaviour and decision making in an
ethical and responsible manner: (1) Governance,
(2) Guidelines, (3) Communication and Training, (4)
Monitoring and Risks, (5) Whistleblower Channel,
and (6) Consequence Management. GRI 102-16
In 2021, Vale hired an independent external
consulting firm to conduct a diagnosis of the
company's compliance culture. This diagnosis
allows us to identify the maturity level of the
implemented processes, the impact of the actions,
and employee perception of the topic. In the last
year, the consulting firm's analysis demonstrated
what it found to be a step-change evolution in
Vale's compliance culture. Among the topics that
presented the most evident advances are training for
employees, appropriation of the compliance theme,
adaptation of policies and guidelines to different
realities, and dissemination of the company's
Whistleblower Channel. Additionally, the diagnosis
also points out opportunities for improvement that
are incorporated into the program's annual planning.
These include training for contractors, accountability
of the Reporting Channel, and wider dissemination
of the structure, tools, and methodologies used by
the area. We will perform this compliance culture
diagnosis at least once every two years. In addition,
the activities of the Ethics & Compliance Program,
including the Whistleblower Channel, will also be
submitted to an external audit once every two years,
starting in 2022.
In 2021, we carried out a diagnosis on
Vale's compliance culture to identify
the processes maturity level
LEARN A LITTLE ABOUT EACH OF THE PILLARS OF
VALE'S ETHICS & COMPLIANCE PROGRAM:
Governance
The Audit and Compliance Department is the
area responsible for the program. Reporting
directly to Vale's Board of Directors, the
department is supervised by the Audit
Committee and works in conjunction with the
Conduct and Integrity Committee, which has
had an independent external member since
2021. This structure ensures the necessary
autonomy and independence for the Audit
and Compliance Department to conduct of
Internal Audit, Whistleblowing Channel and
Corporate Integrity areas, the latter being
the 'guardian' of Vale's Ethics & Compliance
Program.
Guidelines
Vale's Code of Conduct brings together the
company's ethical principles, which are based on
our values and purpose. The new edition of the
document, published during the launch of the
Ethics & Compliance Program in 2021, is available
in nine languages and has audiobooks available for
the visually impaired. Employees were invited to
renew their commitment to ethics by signing the
code's statement of awareness and commitment.
In 2021, 85.74% of the employees signed the
document. New employees sign the Code of
Conduct when they are hired.
In 2021, three new editions of the Ethics &
Compliance Program documents were also
published. The Global Anti-Corruption Manual,
revised during the year, details the rules defined
in the Global Anti-Corruption Policy. The company
also published its Global Guidelines on Conflicts
of Interest and launched its first Consequence
Management Policy, a document that establishes
guidelines for applying disciplinary measures for
confirmed misconduct. GRI 205-2
Governance and Compliance
1. Governance Structure
2. Risk Management
3. Compliance
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PresentationGovernance and ComplianceFinancial CapitalNatural CapitalHuman CapitalIntellectual CapitalSocial CapitalManufactured Capital AssuranceCritical AnalysisCreditsValeGRI Index Communication and Training
The communication and training strategy of the Ethics
& Compliance Program includes mandatory actions for
all employees and specific training for areas classified as
priorities due to their exposure to the risk of corruption.
In 2021, as part of the communication actions for the
program's launch, we released four short films on
relevant topics – Ethics, the Whistleblower Channel,
Harassment, and Corruption and Fraud. We also
produced educational booklets detailing the ethical
principles of the company's Code of Conduct.
In addition, an online course on ethics and compliance
was launched and, taken by 89% of Vale employees
globally, totaling the participation of 64,330 people.
A total of 1,886 employees from priority areas also
received specific training on anti-corruption rules.
The first global edition of the conflicts of interest
campaign was also held, with 34,422 employees
participating (64.17% of employees with computer
access). GRI 205-2
Risks and Monitoring
In 2021, using tests and controls, Vale strived to
reinforce the continuous monitoring of processes and
risk management actions to track how the company
was adhering to the Ethics & Compliance Program
guidelines in practice.
Whistleblower Channel and Consequence Management
GRI 102-17, 102-34 | 406-1
In 2021, Vale's Whistleblower Channel underwent
a restructuring process through which we
implemented of new protocols. In 2021, there was
a 33.8% increase in the number of reports received
by the channel, totaling 6,248 reports that included
allegations, inquiries and complaints. Throughout
the year, 5,526 of these reports were closed. All
confirmed violations have been assigned remediation
plans. During the year, 3,014 corrective actions
were established, including actions to dismiss 157
employees.
During this period, 11 cases of sexual harassment
were confirmed in Vale's Brazilian operations. In
all 11 cases, all the victims were women. There
were also three confirmed cases of discrimination
- two involving gender issues and one related to
sexual orientation. Vale classified all these cases
as very high severity, according to the company's
Consequence Management Policy launched in 2021,
and they resulted in termination actions. In the
cases involving contractors, on the other hand, the
companies were notified and the employees were
demobilized. Eighteen cases of moral harassment
were confirmed, which generated action plans
involving training, coaching, feedback, warnings,
dismissal and/or contractors demobilization.
Additionally, Vale adopts preventive measures to
promote a culture of integrity in teams that have
had confirmed misconduct. Action plans for dealing
with allegations confirmed in 2021 also included
promoting round-table discussions and holding
health and safety dialogues on a culture of respect,
moral and sexual harassment, discrimination,
among other topics.
More information on Vale's Whistleblower Channel
and actions to promote a culture of ethics and
integrity at the company are reported in the Ethics
& Compliance Program's Annual Report.
Governance and Compliance
1. Governance Structure
2. Risk Management
3. Compliance
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PresentationGovernance and ComplianceFinancial CapitalNatural CapitalHuman CapitalIntellectual CapitalSocial CapitalManufactured Capital AssuranceCritical AnalysisCreditsValeGRI Index ANTI-CORRUPTION RULES
GRI 205, 205-1
Vale has zero tolerance for corruption and bribery.
The company's anti-corruption rules are mechanisms
intended to ensure compliance with all applicable
anti-corruption laws, including the U.S. Foreign
Corrupt Practices Act (FCPA), the Brazilian Anti-
Corruption Law (Law No. 12,846/2013), and local laws
in each country in which we operate.
In 2021, Vale's operations were submitted to
corruption-related risk assessment. These risks are
broken down internally among the areas according
to the degree of exposure to corruption and has
associated controls and clear anti-corruption rules.
In total, 16 controls are related to Vale's anti-
corruption rules, six of these are classified as
key controls and related to approvals of socio-
environmental investments, specific conditions for
donations and sponsorships, suppliers in general,
high-risk suppliers, hiring of public agents and
training in the Ethics & Compliance Program.
In 2021, no cases of corruption involving public
agents were identified. Through the company's
Whistleblower Channel, three cases of bribery
involving private companies were identified, all of
which resulted in actions to dismiss the employees
involved. GRI 205-3
SOCIOECONOMIC AND ENVIRONMENTAL
COMPLIANCE GRI 103-2, 103-3 | 307-1 | 419-1
In 2021, the Vale group companies received 21
significant fines (amounts equal to or higher
than USD 10,000) for non-compliance with
environmental laws and regulations, totaling
about USD 10.2 million, and 11 non-monetary
sanctions related to various aspects, such as
alleged non-compliance with environmental
conditions, pollution, and activities performed
without the necessary environmental
authorizations/licenses.
The company also received five significant fines,
totaling USD 868,000, and three non-monetary
sanctions (warnings) for non-compliance with
socioeconomic laws and regulations, applied in
the scope of administrative proceedings filed by
the National Land Transport Agency (ANTT in
Portuguese) and related to providing passenger
rail transport service. Vale emphasizes that it
constantly invests to continuously evolve its
control and monitoring systems, and that the
fines and non-monetary sanctions applied to
the company are discussed in the scope of the
respective administrative and judicial processes.
Governance and Compliance
1. Governance Structure
2. Risk Management
3. Compliance
ANTITRUST, UNFAIR COMPETITION, AND CONFLICTS OF INTEREST
GRI 102-25 | 206-1
Besides having a specific Anti-corruption Policy,
the main references in antitrust management are
the guidelines and decisions of the jurisdictions in
the regions where we operate. In 2021, no critical
facts of antitrust or unfair competition were
identified or reported.
In 2021, the company published an internal
document “Global Guidelines on Conflicts of
Interest”. The absence of conflicts of interest is
one of the ethical principles of the new edition of
Vale's Code of Conduct. The company repudiates
and rejects any action, influence or decision
motivated by interests contrary to the standards
that are not exclusive and legitimate to Vale.
Dois Irmãos Train
station at Vitória-
Minas Railroad
R
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B
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:
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PresentationGovernance and ComplianceFinancial CapitalNatural CapitalHuman CapitalIntellectual CapitalSocial CapitalManufactured Capital AssuranceCritical AnalysisCreditsValeGRI Index
DATA PRIVACY
Privacy is a Fundamental Individual Right, which
should have the same rigorous treatment and level
of protection as any other fundamental rights. With
rapid digitalization, growing digital dependence,
and the volume of personal data circulating in the
digital world, several laws aimed at strengthening
privacy and data protection practices are being
implemented globally.
In 2021 Vale created an independent Executive
Management of Personal Data Privacy, defining an
executive responsible for the global management of
the program at the company. The objective of the
Privacy area is to preserve the right to privacy and
protection of personal data of individuals who have
a relationship with Vale, acting in an independent
and multidisciplinary manner.
The creation of the Privacy Department was the
result of work that began in 2018, with the hiring of
specialized consultants who have conducted, over
the years, assessments of the company's maturity
in relation to the main privacy legislations in the
areas where we operate (especially but not limited
to Brazil, Europe, China and Canada), with the
implementation of specific actions in each region to
adapt our operations to privacy rules.
Company executives and employees have been
receiving regular training in privacy practices. The
company's main systems and personal data flows
are permanently evaluated, to ensure their correct
treatment in adherence to the requirements and
guiding principles of the applicable laws.
Governance
The executive management reports to the
Executive Vice President of Legal/Tax, acting in
partnership with other areas of the company such
as the Vice President of People, Corporate Security,
Department of Technology and Information
Security, Repair Management, Supplies, among
other areas of the company.
Privacy Guidelines
Vale's Privacy guidelines were established in a
Global Policy published in 2020, which sets out
the minimum conditions for Vale and other group
companies to handle personal data.
The program also has a direct communication
channel with the privacy team and with the DPO
- Data Privacy Officer, so that data subjects can
make requests concerning their data, or even
submit complaints or suggestions.
The communication channel, as well as Vale's
external privacy notice, is available on our website.
SOCIO-ENVIRONMENTAL EXPENDITURES
GRI 203-1
In 2021, Vale contributed USD 1.3 billion in
socio-environmental expenditures, including
those related to Brumadinho, which
represented a 28% increase compared to
2020. As for environmental expenditures,
the contribution totaled USD 804.2 million,
of which water resources, environmental
liabilities, and energy accounted for the
largest expenses. Social expenditures
totaled USD 473.5 million, 73% with our
own resources and 27% through incentive
laws. The main expenditures were in urban
infrastructure and mobility, culture, health,
and social protection.
Learn more
About Social
Investments.
Vale created an independent
executive management of Personal
Data Privacy. The purpose of the area
is to preserve the right to privacy
and data protection
Governance and Compliance
1. Governance Structure
2. Risk Management
3. Compliance
5353
PresentationGovernance and ComplianceFinancial CapitalNatural CapitalHuman CapitalIntellectual CapitalSocial CapitalManufactured Capital AssuranceCritical AnalysisCreditsValeGRI Index Manufactured Capital
Manufactured
Capital
Sossego Mine,
in Canaã dos
Carajás, Pará
Vale | Integrated Report 2021
S
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PresentationGovernance and ComplianceFinancial CapitalNatural CapitalHuman CapitalIntellectual CapitalSocial CapitalManufactured Capital AssuranceCritical AnalysisCreditsValeGRI Index
Apresentação
A Vale
Visão Global
Governança Corporativa
Desempenho e resultados
Capital Financeiro
Capital Natural
Capital Humano
Capital Intelectual
Capital Social
Capital Manufaturado
Análise crítica
Sumário GRI
Créditos
MANUFACTURED CAPITAL
Vale completed the year with around 340 Mtpy
of iron ore production capacity and expects to
reach 370 Mtpy by the end of 2022
Exploration
Joint Venture
ACTIVITIES MAP
Offices
Headquarter
GRI 102-3, 102-4-102-7
Operations
Port
Railroad
PRODUCTION AND SALES
Mtpy
Production
Sales
301,972
300,385
315,610
269,306 254,865
277,508
Canada
United
States
43,199
41,794
31,211
29,676
32,306
31,708
208.0
205.7
183.7
183.1
181.8
168.0
381.1
365.2
360.1
346.3
296.8
284.5
Iron
ore:
350000
280000
210000
140000
70000
0
Pellets:
50000
40000
30000
20000
10000
0
Nickel:
300
200
100
0
Copper:
400
300
200
100
0
Manganese:
1500
1,576
1,378
Reino Unido
Netherlands
Peru
Paraguay
Chile
Brazil
Argentina
Switzerland
Serbia
China
United
Arab
Emirates
Oman
India
Malaysia
Malawi
Singapore
Japan
Indonesia
Mozambique
Australia
62%
of Vale's
electricity
consumption
come from
itself-generation
portfolio
2,324 MW
was the total of Vale's
electricity self-generation
NUMBER OF STRUCTURES BY
EMERGENCY LEVEL
Level 1
Level 2
7
Level 3
3
19
30* upstream
geotechnical structures
will be decharacterized in
Minas Gerais and Pará by
2035, of which 7 have
already been concluded
since 2019
191
total dams **
67
of base
metals
124
of iron ore
VALE SERVES INDUSTRIES,
SUCH AS STEEL INDUSTRY,
ON ALL CONTINENTS
GRI 102-6
Americas
South, Central and
North America
Europe
including Turkey
Asia and Africa, considering
•Middle East North
Africa and India (Menai) –
Middle East, North Africa and
India
•China, Japan, Korea, Taiwan,
Southeast Asia (Vietnam,
Indonesia, Malaysia and
Philippines)
•Oceania (Australia)
*It accounts for the
number of structures
(EARs) to be
decharacterized, some of
which are part of the
same dam/ EAR system,
such as the dikes 1A and
1B that make up the
Conceição System
(accounted for in the
total of 191 dams/ EARs).
**Also includes
dam/tailings storage
facilities systems that
contain more than one
structure.
1000
500
0
1,063
740
573
350
ENERGY CONSUMPTION MATRIX BY SOURCE
In %
Electricity
2019
2020
2021
29.6
Diesel oil
30.3
Coal and coke
14.8
Natural gas
13.6
Others
oils
7.1
Renewable
Fuels
4.3
Other fuels:
•Other gases: 0.1
•Shipping oils: 0.1
•Other liquid fuels: 0.1
Manufactured Capital
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PresentationGovernance and ComplianceFinancial CapitalNatural CapitalHuman CapitalIntellectual CapitalSocial CapitalManufactured Capital AssuranceCritical AnalysisCreditsValeGRI Index VALE PRODUCTS GRI 102-2
Where we operate:
Iron Ore: Brazil, Oman, Malaysia and China.
Nickel: Brazil, Canada, Indonesia, Japan, China, UK.
Coal: Mozambique.
Copper: Brazil and Canada.
Manganese and ferroalloys: Brazil.
PRODUCTION AND SALES HIGHLIGHTS IN 2021
The production and sales highlights in 2021 were:
(a) the volume increase in Iron Ore production (5%
p.a.) and sales (9% p.a.) driven by higher production
at our Minas Gerais operations (17% p.a.), partially
offset by weaker performance at S11D (-11% p.a.);
(b) a favourable market price scenario (46% p.a.); (c)
the strike in Sudbury, interrupting our operations
for 70 days and contributing to a 9% reduction in
Nickel production and an 18% reduction in Copper
production; and (d) the stronger performance of
Coal production in Moatize (45% p.a.), along with
the signing of a binding agreement to sell the asset.
Learn more
Production and sales
highlights in 2021
Manufactured Capital
Divestments in non-core assets GRI 102-10
In 2021, we completed the sale of Vale New
Caledonia (VNC) to the Prony Resources
New Caledonia consortium, in line with our
commitment to withdraw from New Caledonia
in an orderly and responsible manner. A total of
USD 555 million were disbursed as part of a USD
1.1 billion package to provide VNC with the means
to build a trajectory with sustainable operations.
In December 2021, we signed a binding
agreement with Vulcan Resources (Vulcan)
regarding the sale of the Moatize Coal Mine
and the Nacala Logistics Corridor (CLN), in line
with the company's decarbonization strategy,
adapting its investment portfolio to a low-
carbon economy. The transaction involves a
total of USD 270 million, comprised of USD 80
million at the completion of the transaction
and USD 190 million from the existing business
until completion – plus a 10-year Royalty
Agreement subject to certain conditions of Mine
production and coal prices. The completion of
the transaction is subject to the fulfillment of
customary preceding conditions, including the
approval of the Ministry of Mineral Resources
and Energy of Mozambique, and the approval
of the Government of Mozambique under
the Concession Agreements for the change of
control and antitrust.
Given our commitment to a just transition, Vale
conducted a responsible investor search process
for Mozambique's assets, and the new operator,
Vulcan, a private company that is part of the
renowned Jindal Group, has extensive experience
working in Mozambique.
Also in December, we announced the sale of our
50% interest in California Steel Industries to
Nucor Corporation (Nucor), completed in February
2022. As a result of the transaction, we received
a purchase price of USD 436.7 million in cash, of
which USD 400 million is related to 50% of the
value of the negotiations and the remainder
related to adjusted net debt and working capital at
the closing of the transaction.
In January 2022, we completed the sale process
of Vale Manganês assets, including the Ferroalloy
production units in Barbacena and Ouro Preto,
and the Morro da Mina manganese ore mine, in
Conselheiro Lafaiete, Minas Gerais. The VDL Group,
a business conglomerate that operates in the
transportation, mining, and steelmaking segments,
has definitively taken over the management of the
assets of the three units, ending our activities in
the production and sale of Manganese Ferroalloys.
The transaction did not involve the manganese
ore assets that our company owns in the states
of Pará and Mato Grosso do Sul. The strategy of
divesting Vale Manganês's Ferroalloy operations
streamlines our company's operations, allowing
continued focus on core assets.
The transactions reinforce the discipline in
Vale's capital allocation, with a focus on its
core businesses and a commitment to portfolio
optimization, based on our goals to preserve our
operational continuity and a responsible and
sustainable exit.
We completed the sale
of assets in line with
our strategy to focus
on core businesses
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Industrial Complex
S11D, in Canaã dos
Carajás, Pará (PA)
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Vale | Integrated Report 2021
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Apresentação
A Vale
Visão Global
Governança Corporativa
Desempenho e resultados
Capital Financeiro
Capital Natural
Capital Humano
Capital Intelectual
Capital Social
Capital Manufaturado
Análise crítica
Sumário GRI
Créditos
FINANCIAL CAPITAL
In a year still marked by the persistent effects of the
Covid-19 pandemic and market volatility, we were able to
reach significant milestones in creating sustainable value
for our stakeholders
NET OPERATING REVENUE FROM CONTINUING OPERATIONS
In USD billion
60
50
40
30
20
10
0
36.5
39.5
54.5
2019
2020
2021
Mitsui&Co
5.58%
Shares in treasury
6.32%
Previ
8.07%
Others
56.48%
TOTAL SHARES
AS OF
FEBRUARY 28,
2022
Capital Research
Global Investors2
6.35%
Blackrock, Inc1
5.45%
Capital World
Investors2
6.53%
Capital
International
Investors2
5.22%
1. Position as of 12/31/2020
2. Position as of 09/20/2021
Capital International Investors
5,22%
Capital World Investors
6,53%
A Vale
Financial Capital
Blackrock, Inc
5,45%
Capital Research
Global Investors
6,35
Prvi
8,10%
Ações em
tesouraria
5,71
NET INCOME FROM
CONTINUING OPERATIONS
In USD billion
24.8
6.3
0.4
2019
2020
2021
25
20
15
10
5
0
-5
MARKET CAP
In USD billion
100
89.4
TOTAL ASSETS
In USD billion
91.7
92
89.4
80
60
15
14
13
12
70.1
72.0
2019
2020
2021
GROSS DEBT
In USD billion
13.1
13.4
12.2
2019
2020
2021
RESULTS AND IMPACTS
2019
2020
2021
Taxes
and royalties
In USD billion
Employee salaries
and benefits:
In USD billion
Research
and Development:
In USD billion
Payments
to capital providers:
In USD billion
Environmental
expenditures:
In USD billion
Social
expenditures:
In USD billion
8
6
4
2
0
8
6
4
2
0
0,5
0,4
15
12
9
6
3
0,8
0,7
0,6
0,5
0,4
0,5
0,4
0,3
0,2
3.5
3.5
2.2
1.9
0.4
0.4
3.8
4.1
0.6
0.4
0.5
0.2
2019
2020
2021
2019
2020
2021
Adjusted EBITDA from continuing operations
USD 31.3 billion
7.7
1.9
0.5
14.2
0.8
0.5
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PresentationGovernance and ComplianceFinancial CapitalNatural CapitalHuman CapitalIntellectual CapitalSocial CapitalManufactured Capital AssuranceCritical AnalysisCreditsValeGRI Index Economic-financial performance GRI 103-2, 103-3 | 201
In 2021, Vale achieved adjusted EBITDA from
continuing operations* of USD 31.3 billion, 13.8
billion higher compared to 2020, mainly due to
higher realized prices and sales volumes of Iron
Ore and Pellets, partially offset by certain costs
and expenses that included third-party purchases
and royalties, higher freight costs and higher
maintenance and service costs.
Net income from continuing operations was USD
24.8 billion for the period, USD 18.6 billion higher
compared to 2020, mainly due to higher proforma
EBITDA and higher financial results.
Net operating revenues was USD 54.5 billion, an
increase of USD 15.0 billion compared to 2020.
The increase is due to better market conditions
and higher realized Iron Ore prices. Costs and
expenses from continuing operations, including the
Brumadinho reparation, totaled BRL 142.9 billion
(USD 26.4 billion), remaining BRL 11.5 billion (USD 969
million) more than the amount spent in 2020.
Our investments in the period were USD 5.2
billion, of which USD 4.2 billion were dedicated to
the maintaining operations and USD 1 billion to
*Continuing operations: does not consider the result of the
coal operation
Financial Capital
executing growth projects. The amount invested
represents an increase of 18% compared to 2020,
due primarily to: (a) the advance in Salobo III,
expansion of the Voisey's Bay Mine and the Serra
Sul 120 Mtpy project, as planned; and (b) the start
of execution of the Capanema (Iron Ore) and Sol do
Cerrado (solar energy) project.
PERFORMANCE INDICATORS
USD 54.5
billion
Net operating
revenue from
continuing
operations
USD 31.3
billion
Adjusted EBITDA
from continuing
operations
USD 24.8
billion
Net income from
continuing
operations
USD 24.7
billion
Net income
from continuing
operations
attributable
to Vale
shareholders
USD 27.7
billion
Operating
income from
continuing
operations
USD 5.2
billion
Investments
RESULTS OF EQUITY HOLDINGS BY BUSINESS AREA
(IN USD MILLIONS)
Ferrous Minerals
Base Metals
Coal
Others
TOTAL
BALANCE SHEET (IN USD MILLIONS)
Current assets
Non-current assets
Property, plant and equipment, net and intangible assets
Investments in associates and joint ventures
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Stockholders’ equity
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
2021
166
1
-
327
494
2021
22,360
14,389
50,942
1,751
89,442
15,198
38,938
54,136
35,306
89,442
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PresentationGovernance and ComplianceFinancial CapitalNatural CapitalHuman CapitalIntellectual CapitalSocial CapitalManufactured Capital AssuranceCritical AnalysisCreditsValeGRI Index STATEMENT OF VALUE GENERATED
AND DISTRIBUTED GRI 201-1
Vale's statement of value generated and
distributed includes revenues, operating costs,
employee compensation, donations and other
social investments, retained earnings and
payments to capital providers and governments.
In 2021, the earnings with regards to the balance
sheet for the fiscal year reached a total of BRL 12.62
per share, between interest on capital and dividends.
VALUE GENERATED AND DISTRIBUTED (IN USD MILLIONS) GRI 201-1
Country/ Region
Revenues
COUNTRY/REGION
Operational costs
Employee salaries and benefits
Research and development
North
America,
except
Canada
Canada
South
America,
except
Brazil
Brazil
Europe
Africa
Australasia
Middle
East
TOTAL
-
-
-
-
-
1,805.5
1.3
5,272.6
44,317.2
1,805.5
1.3
5,272.6
44,317.2
2,312.5
13.3
10,565.4
6,097.5
435.0
6.9
1,252.4
30.8
110.2
26.4
324.1
20.9
-
-
-
-
-
-
3,104.9
(0.0)
54,501.5
3,104.9
(0.0)
54,501.5
796.0
240.6
20,025,3
106.2
41.0
1,872.3
67.1
-
548.6
-
-
14,176.0
Payments to capital providers
421.9
252.0
-
13,475.8
26.2
Results center
Access Vale’s complete 2021 financial
statements.
See Vale's global tax contributions in
our annual Tax Transparency report.
Payments to government
17.5
(194.3)
2.8
7,740.4
(21.8)
60.0
86.3
3.7
7,694.6
Environmental expenditures
Social expenditures
-
-
106.5
0.7
670.8
6.0
0.0
449.2
1.2
1.7
19.7
14.2
1.5
1.6
3.7
804.2
0.8
473.5
DISTRIBUTED ECONOMIC VALUE
439.4
3,027.9
50.0
34,478.1
6,156.6
93.9
1,058.9
289.7
45,594.6
ACUMMULATED ECONOMIC VALUE
(439.4)
(1,222.4)
(48.8)
(29,205.5)
38,160.7
(93.9)
2,046.0
(289.7)
8,906.9
Financial Capital
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Governance and Compliance
Manufactured Capital
Financial Capital
Intelectual
Capital
.
Vale | Integrated Report 2021
Tubarão Port receives the first large
ore carrier in the world equipped with
a rotating sail system (rotor sails). The
Sea Zhoushan vessel is a VLOC (Very
Large Ore Carrier), with a capacity of 325
thousand tons
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Apresentação
A Vale
Visão Global
Governança Corporativa
Desempenho e resultados
Capital Financeiro
Capital Natural
Capital Humano
Capital Intelectual
Capital Social
Capital Manufaturado
Análise crítica
Sumário GRI
Créditos
Vale
Governance and Compliance
Manufactured Capital
Financial Capital
INTELECTUAL CAPITAL
Our pillars for innovation are: Protecting lives,
Sustainable mining, Market differentiation,
Learning Journey and Open Innovation
GEOTECHNICAL MONITORING
Monitoring
analysts
Geotechnicians
Team and roles
+20people work 24 hours
divided into 3 or 4
shifts. They are:
Coordinators
A dashboard displays all the
analysis tools available in real
time to the professionals.
Check it out below.
Radar operators
Technicians
1
2
3
4
5
VALE'S
TECHNOLOGICAL
DEVELOPMENT
CENTERS
Mineral
Development
Center (CDM), in
Sabará (MG)
Ferrous
Technological
Center (CTF), in
Nova Lima (MG)
Vale Technological
Institute -
Sustainable
Development (ITV
DS), in Belém (PA)
Vale Technological
Institute - Mining
(ITV MI), in Ouro
Preto and Santa
Luzia (MG)
Artificial
Intelligence Center
(AI Center), in
Vitória (ES)
Monitoring
center
Plant
TAILING IS TRANSFORMED
INTO CONSTRUCTION MATERIAL
Dry production avoids the use of dams
Rejeito
Mine
Blocks production
Sand production
Mud
1. The tailings are placed
in the mixer together with
water, cement and
binders
2. The mixture is placed in a
press, which by means of
vibration and compression is
transformed into blocks
3. The blocks are packed,
stacked and stored
1. The process of
removing mud
from iron ore is
carried out
2. The residue
is concentrated
3. Then it goes
through sorting
and filtering
processes
Interpretation of
monitoring and
mapping data of dams
Data collected by radars
is able to point any
displacements of
structures
Monitoring of
earthquakes
induced by
operations in the
surroundings
Video monitoring for
anomaly detection
Video analytics can
differentiate geological
and non-geological
movements
4. And so both the blocks and the
sand are ready to be used in civil
construction
ITV IN NUMBERS (2011 TO 2021):
USD 209.2 million
already invested in research
747
published scientific articles
154
supported R&D projects
Development of the world's
first large ore carriers
equipped with rotating sails
and air lubrication.
Implementation of an electric
locomotive in Tubarão Port in
Vitória. In 2022 the electric
locomotive project will also be
tested in the port of São Luis.
Launch of the
"green briquette", a
new agglomerated
iron ore product.
Off-road trucks are
using Artificial
Intelligence to reduce
fuel consumption
Intellectual Capital
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Governance and Compliance
Manufactured Capital
Financial Capital
Innovation
For us, innovation is an essential asset for creating
shared value with society and for mitigating the
impact of our activities. Innovation at Vale is
considered one of the levers for achieving our
purpose. We have a vision where our production
is increasingly automated, reducing our people's
exposure to risk and increasing the agility and
productivity of our operations. We will have
artificial intelligence solutions supporting all
major decisions. We use technology to redesign
our ways of working, reducing risk scenarios,
with the goal of becoming a reference in safety
and risk management. We have a complete view
of the value chain and collaborate with clients to
create differentiated products and services. Teams
collaborate remotely, creating a more accessible
environment, attracting a more diverse workforce.
We seek to transform people and digitize processes
through new ways of working, promoting agility,
collaboration and integration. Renewable energy
drives our business, we will develop and use new
mining and processing technologies to promote
sustainable development by reducing carbon
emissions, promoting reforestation and accelerating
social and environmental technologies. We innovate
to contribute to the sustainable development of our
businesses and communities, generating a positive
impact on society. Innovation is supported by four
main pillars: Protecting lives, Sustainable mining,
Market differentiation, Learning Journey and Open
Innovation.
PROTECTING LIVES
For us, life comes first and there is no productivity
without safety. Innovation is a catalyst to transform
the way we operate, prioritizing people's health
and safety. Life first is a non-negotiable value for
us. To become the safety reference, we redesigned
our work to eliminate exposure to risks, adopting
remote work on a large scale, as well as maintaining
priority based on "Impacted Lives".
In 2021, Vale established the Safety Transformation
Program to have global governance to maximize
the impact of health and safety actions, using
technology and innovation. The Program works
by scaling protection solutions and ensuring
adherence to minimum safety requirements;
accelerating the implementation of mitigation
controls and the adoption of remote operation to
remove or reduce risk to people; and ensuring that
the prioritization of safety technology initiatives
is based on their potential to impact lives. As a
result, the program has already ensured that more
than 9,500 sensors have been installed to protect
against fatigue, collision and electrical hazards,
and more than 17,000 people are now using
location sensors, allowing the monitoring of the
position and exposure of professionals to critical
risks, through the Global Safe Access Program.
With this, more than 40 thousand people received
protection barriers against accidents and more
than 10 thousand people were effectively enabled
to work remotely through Jornada Vale.
In addition to the growing application of remotely
operated equipment, we developed applications
for robotics and increased the use of autonomous
equipment in our operations. These technologies
allow us to achieve better and safer production
levels. The increased productivity of the mine assets
also represents a reduction in GHG emissions from
our operations. We have more than 100 pieces
of equipment operating in our Self-Employed
Portfolio, removing more than 545 people from risk.
We expect a robust expansion of this portfolio in
2022, particularly in the northern system.
Also in 2021, we will expand the use of new
technologies in our dam management model. In
addition to 24-hour video and radar monitoring,
we are using satellite images and drones to track
the state of conservation and ground displacement
in our structures. See here how Vale's Geotechnical
Monitoring Centre works.
Storage yard of Serra
Norte, in Parauapebas,
Pará (PA)
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1. Innovation
2. Vale Technology Institute (ITV)
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Vale
Governance and Compliance
Manufactured Capital
Financial Capital
SUSTAINABLE MINING
We are committed to fostering sustainable
development. The PowerShift Program is working
in the ecosystem of start-ups and partnerships to
develop and accelerate the maturity of solutions to
reduce Scope 1 and 2 emissions in our value chain.
The program involves, among other things, the
use of waste to produce new materials, fostering
the circular economy and reducing greenhouse
gas (GHG) emissions. This occurs through the
acceleration of low-carbon technologies, bioenergy
and product development that assist our customers
in their emission reduction goals, in addition to
carbon removals via reforestation, protection and
capture technologies.
We are part of the communities where we operate
and, therefore, we encourage the generation of
shared value through our actions in the territories.
We develop technologies to reduce GHG emissions
from our operations, such as, for example, the
first electric locomotive of its kind and the
application of biochar in our operations to replace
the anthracite used in pelletizing. In partnership
with the ecosystem, we are developing options for
substituting diesel fuel for trucks.
In partnership with the Vale Institute of Technology
(ITV), we advanced in the maturity of our portfolio of
technologies to reduce Scope 3 emissions, through
successful tests of new technologies for the ship
fleet, such as rotorsail (a ship that uses rotating
sails), which enables the use of wind to reduce fuel
consumption, and air lubrication, which reduces GHG
emissions by minimizing friction on the hull.
MARKET DIFFERENTIATION
We explore opportunities to strengthen the
industry's production chain, create new products,
services, and business models in a co-creative
way with our audiences and customers. We are
developing new products and strategies to support
the energy transition through electrification,
improving and expanding our product portfolio in
base metals. In Ferrous to increase the value ofthe
company in a sustainable way, we developed a
portfolio of initiatives where the "green briquette"
has a prominent position as a new product with
low energy intensity and with the potential to
reduce our emissions and those of our customers.
The briquette is Vale's exclusive technology, the
result of several years of technological development
and already patented in more than 47 countries,
with three plants already approved and another
five in the analysis phase. We also offer high
iron content products, generated through our
new natural humidity processing technology, a
sustainable process that eliminates the need for
dams. In 2021, we informed the market about our
new bio-carbon pilot plant, a technology capable
of reducing the use of traditional carbon sources,
reducing total GHG emissions and enabling the
production of "green" pig iron, using our modular
Tecnored plants. Also within our portfolio of new
For us, innovation is an essential asset for
creating shared value with society and for
mitigating the impact of our activities.
products, we announced the creation of a new
company focused on Green Cement, a type of low
emission geopolymer cement that will use mining
waste sand. This company will use state-of-the-
art technology to produce cement with high
quality, lower cost and significant carbon emission
reduction potential.
INDUSTRY 4.0
In line with the technological trends advocated
by Industry 4.0, Artificial Intelligence and Machine
Learning-based algorithms are used in our
operations to predict the behavior of important
process variables. Today 17% of our critical assets are
monitored by Internet of Things (IoT) and Advanced
Analytics.
At our Artificial Intelligence (AI) Center in
Vitória, Espírito Santo, we develop projects
involving optimization of asset maintenance and
improvement in the management of processes at
ore beneficiation and pelletizing plants, as well as
the improvement of environmental, health and
safety and corporate integrity controls.
Smart Safety, which currently reaches 50%
of Vale's employees, is a predictive analysis
solution based on Artificial Intelligence that
calculates the probability of risk events in
operational areas. Strategically, this solution
adds an intelligent and dynamic protection
barrier in operations, identifying potential
risk areas and acting proactively to take
preventive actions. In Base Metals, for
example, there is now assertive monitoring of
actions to be taken to avoid accidents. In the
Southeast Corridor, in Ferrous Minerals, the
tool contributed to the decrease of the Total
Recordable Injury Frequency Rate (TRIFR) in the
year 2021.
We use AI to further promote the sustainability
of our operations by reducing the fuel
consumption of off-highway trucks, avoiding
the emission of more than 74,000 tons of
CO₂ per year, in line with our goal of reducing
direct and indirect emissions by 33% by 2030.
We also highlight the use of a platform with
artificial intelligence called PrevisIA to identify
deforestation and fire risk areas in the Amazon,
Intellectual Capital
1. Innovation
2. Vale Technology Institute (ITV)
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promoting a strategic preventive action. This
project is the result of a partnership between
the Instituto do Homem e Meio Ambiente da
Amazônia (Imazon), Microsoft and Fundo Vale.
Finally, Artificial Intelligence is also used in our
Asset Monitoring Centre (CMA), which seeks to
expand integration between the Planning and
Asset Management areas with two purposes,
enabling decisions:
• Reduce risk exposure in processes and assets,
through status visibility of critical controls and
asset health.
• Optimize the reliability and performance of
assets throughout their life cycle, allowing
greater adherence to Operational Plans.
LEARNING JOURNEY AND
OPEN INNOVATION
We seek to drive people development and digitize
processes, through new ways of working that
promote agility, collaboration and integration. We
believe that collaboration in an open innovation
ecosystem, through partnerships with universities,
startups, government and other corporations
is essential to accelerate innovation initiatives.
We have built an innovation network within the
company that today is connecting nine innovation
hubs within our operations in order to address
critical issues on the ground. New partnership
models in the form of collabs (collaborative
projects) are essential to strengthen our open
innovation strategy that can accelerate our
learning journey. Vale has advanced in Innovation
initiatives, and we recognize that we can learn
from our own journey.
An example of collaboration with the ecosystem in
Brazil is MiningHub, an initiative to co-construct
solutions with innovation in the mining industry.
We evolved from 166th position in 2019 to
12th in 2021 in the "100 Open Startups"
awards; and from 31st place to 4th in the Valor
Innovation Award in 2021.
Participants include 24 mining companies, 700
startups and 15 major suppliers, with a reach in 22
countries. Already, 90 proofs of concept have been
carried out and 20 contracts have been signed
between mining companies and start-ups.
In addition to these initiatives, Vale has also been
seeking to establish partnerships in projects
and initiatives to accelerate the development of
solutions and knowledge, in line with its purpose
to be a leader in low-carbon mining. These
partnerships involve suppliers, research institutes,
operators, technology consortiums, among others,
as for example in the "Charge On" challenge held
in 2021 for the development of truck battery
systems. In Canada, we are part of the innovation
hub that is focused on supporting early-stage
technology startups and their founders. Vale
helps by providing access to key resources and
connections to the networks they need to start,
expand and scale their ventures.
In the Mining Innovation for a New Environment
2.0 (MINE) Program, we seek to develop people,
solve strategic problems for Vale and generate
positive impact for society. In this program, Vale,
in collaboration with universities and innovation
institutes, offers participating professionals the
opportunity to build a safer, more sustainable
and efficient future for mining through open
innovation. During the program, participants
developed solutions to solve real challenges in the
areas of decarbonization, circular economy, health
and safety.
In 2021 we structured our Corporate Venture
Capital (CVC) strategy and made our first
investment: Boston Metal, owner of a new
technology for iron oxide reduction through
electrolysis called Molten Oxide Electrolysis
(MOE). Through this investment, we are
supporting the development of low GHG emission
steelmaking technologies, in line with our
decarbonization commitments and the new pact
with society.
Learn more
About our innovation
initiatives.
Intellectual Capital
1. Innovation
2. Vale Technology Institute (ITV)
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Vale Institute of
Technology (ITV)
ITV is a non-profit institution, maintained by
Vale that operates through ITV Sustainable
Development, located in Belém (PA), and ITV
Mining, located in Ouro Preto and Santa Luzia
(MG), to promote scientific research. Since 2010,
ITV has been developing technological and
scientific solutions to solve the challenges of
the mining chain in search of a more just and
sustainable society. It currently has a group of 281
researchers, 224 of whom are fellows.
ITV IN NUMBERS
(2011 TO 2021):
About
USD 209
million
already invested in research
747
scientific
papers
published
154
R&D
projects
supported
ITV SUSTAINABLE DEVELOPMENT (ITV DS)
ITV DS works in the generation of socio-
environmental scientific knowledge for the
characterization and conservation of the biotic
and abiotic environments and their relationship
with communities in connection with sustainable
development goals. The research groups
include: Biodiversity and Ecosystem Services;
Environmental Genomics; Environmental
Technology; Environmental Geology and Water
Resources; Socioeconomics and Sustainability; and
Data Science.
Research is conducted collaboratively with
research institutions and companies in Brazil and
abroad and shares knowledge with society through
scientific publications in open journals, deposits
of raw data in open access global databases and
scientific communication through documentaries,
videos, podcasts and newsletters.
ITV DS has research laboratories with the analytical
capacity for state-of-the-art techniques such as
next-generation DNA sequencing, proteomics,
imaging equipment, and high-capacity computers,
among others.
ITV DS is also active in training young researchers
through the Professional Master's in Sustainable
Use of Natural Resources in Tropical Regions.
More than 120 professionals from all over the
country had been trained by 2021. On this front,
we highlight the research scholarship and project
subsidies program for young residents in Pará
whose dissertations in line with one of the United
Nations Sustainable Development Goals (SDGs).
ITV MINING (ITV MI)
ITV Mining seeks to develop solutions widely
used in the mining chain that prioritize energy
efficiency, safety in the mineral chain processes,
and the reduction of CO2 emissions.
It operates on two fronts: the teaching front,
which is related to the purpose of contributing to
the disseminate knowledge in the company and in
society, and the research and development front
in the areas of Tribology, Automation, Control
& Robotics, Mining, and Extractive Metallurgy &
Mineral Treatment.
An example of a project that benefitted from
the cooperation of ITV is Ecoshipping, created by
Vale to meet the challenge of reducing its carbon
emissions, in line with what has been discussed
within the scope of the International Maritime
Organization (IMO).
Ecoshipping
Vale's project to create the first
large ore ship equipped with a
rotating sail system won the
International Wind Propulsion
Innovation Award in November 2021.
Still in the testing phase, the
innovative use of wind propulsion
can offer an efficiency gain of up to
8% and a consequent reduction of
up to 3,400 tons of CO2 equivalent
per ship per year. The initial results
of the pilot test have already
aroused the interest of partner
shipowners, who are developing
new projects with rotating sails. It is
estimated that at least 40% of the
fleet dedicated to the company's
service is able to use the technology,
which would impact to a reduction
of almost 1.5% in annual emissions
from Vale's maritime transport of
Iron Ore. Learn more.
Intellectual Capital
1. Innovation
2. Vale Technology Institute (ITV)
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Natural
Capital
I
L
O
Z
O
P
A
C
O
N
A
I
I
L
M
E
:
O
T
O
H
P
Giant Fern, at the
Inhotim Institute,
in the city of
Brumadinho, Minas
Gerais state, Brazil,
the largest open-air
museum in the world
1. Climate Change
2. Biodiversity
3. Ecoefficiency
4. Mine Closure and Future Use
Vale | Integrated Report 2021
67
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Apresentação
A Vale
Vale
Visão Global
Governance and Compliance
Governança Corporativa
Manufactured Capital
Desempenho e resultados
Financial Capital
Capital Financeiro
Intellectual Capital
Capital Natural
Capital Humano
Natural Capital
Capital Intelectual
Capital Social
Capital Manufaturado
Análise crítica
Sumário GRI
Créditos
NATURAL CAPITAL
We recognize that making mining sustainable throughout our operations and value chain involves a conscious
and continuous effort, dialogue, active listening, and the creation and re-enactment of relationships of trust
GAS EMISSION
REDUCTION TARGETS BY 2030
p
1 million hectares
approximately is the total area protected by Vale
ADDITIONAL AREAS RECOVERED
AND PROTECTED
in hectares
Protected
Recovered
500 thousand
hectares of areas to be recovered and
protected by 2030, of which at least 100
thousand hectares recovered through
socio-environmental impact businesses
12 times
larger than the total area
occupied by the company's
operational units
80
70
60
50
40
30
20
10
0
62,248
52,867
2030 WATER
GOAL REACHED
947
2020
5,125
2021
Vale has publicly
committed not
to operate in
UNESCO Natural
World Heritage
Sites
WATER BALANCE
In millions of m³
REDUCTION OF WATER
CONSUMPTION
Withdrawal
237.1
Use and reuse
726.9
Discharge after
treatments
18.2
-20%
Reuse
489.7
81.2%
of water reuse
ENERGY
EFFICIENCY
2017
Natural Capital
2017
2021
2030 target
-5%
a
r
tic
u
l
a
s
u
l
p
n
it
r
t
e
m
h
u
r o
o
g
e
n
o
a
t
t
e
r
x
i
d
e
s
x
i
d
e
s
-10%
-16% -16%
CONSUMPTION OF
RENEWABLE ELECTRICITY
79%
89%
100%
83%
99%
100%
Global
Brazil
2017
2021
2030 target
GREENHOUSE GAS EMISSIONS
EMISSION REDUCTIONS
-24%
-33%
2018
2021
2030 target
-15%
-15%
Scopes 1 and 2
absolute
emissions
Scope 3
net
emissions
2018
2021
2035 target
68
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Environmental
management
Given the risks related to environmental
issues arising from its activities, Vale follows
international guidelines to manage environmental
incidents*. These involve initial communication,
adoption of immediate actions and investigation
of causes, implementation of corrective actions
to eliminate undesired effects of the event and
recording of lessons learned.
In 2021, 28 environmental incidents
were classified as severe, compared
to 16 events registered in 2020,
according to the company's risk
classification criteria. We advanced
in 2021, compared with 2020, with
respect to critical and very critical
incidents, with no occurrence
in 2021, compared to three
occurrences in 2020.
Employee José
Marangon in the
seedling nursery
and Biofactory of
Ferrous Technology
Centre in Nova
Lima/Minas Gerais
All incidents were investigated by a
multidisciplinary group and reported to the
appropriate government agencies. Managing
these topics involves reassessing the drainage
system, deploying inspection routines in the
control systems, conducting engineering
works and projects, preparatory plans for
the rainy season, and training employees.
Proper investigation enables the identification
of contributing factors, risk reduction,
inclusion of new environmental controls, and
improvement of industrial processes. GRI 303-2
For the socio-environmental programs and plans,
we have targets and indicators correlated to risk
management, prevention and mitigation measures
for impacts related to water quality, air quality,
soil quality or condition, community impacts,
biodiversity, and relevant regulatory issues. This
information supports Vale's analysis and concession
process to help us obtain environmental licenses.
Country
Number of Severe Incidents
Environmental Impact
Brazil
Canada
Indonesia
Change in water quality
Change or reduction in biodiversity
Change in soil quality
Change in water quality
Change in air quality
Change in soil quality
Change in water quality
Learn more
About the main mitigation
actions for incident-related
impacts.
69
*Environmental Incidents: Unplanned event that resulted in an
adverse environmental impact.
PHOTO: GUSTAVO BAXTER
Natural Capital
1. Climate Change
2. Biodiversity
3. Ecoefficiency
4. Mine Closure and Future Use
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Climate Change GRI 103-2, 103-3
Reducing emissions and making Vale resilient
to the effects of climate change are strategic
priorities. We maintain a program to manage
risks and opportunities related to climate change,
aligned with the guidelines of the Task Force on
Climate-Related Financial Disclosures (TCFD).
The topic is addressed by a robust governance
structure that includes the Low Carbon Forum, a
governance structure that monitor performance
and which strives to ensure delivery of the climate
agenda, which includes the periodic participation
of the Executive Board and Vale’s leadership.
Vale's decarbonization strategy is public and based
on a global policy. Vale understands the importance
of providing transparency on our roadmap for the
delivering emissions reduction and Net-zero targets,
so it has been disclosing information on the Carbon
Disclosure Project (CDP) since 2003, in Vale’s ESG
Portal, and published its first climate report in 2021.
In addition, our annual performance is assessed
by specialized institutions such as Sustainalytics,
Climate Action 100+ and RFC Ambrian, and in 2021
we received an "A-" rating in CDP's assessment,
which is above average in the mining sector
average. The points for improvement identified
in the table above, such as the adaptation of
strategies and targets to new temperature
scenarios, definition of intermediate targets, and
inclusion of Scope 3 emission in the 2050 target,
come from an evaluation and comparison of Vale's
performance with market best practices.
We maintain a program to manage
risks and opportunities related to
climate change, aligned with the
guidelines of the Task Force on
Climate-Related Financial Disclosures
Vale's capital allocation is subject to a shadow
carbon price of USD 50/tCO₂e in the valuation
of its projects. We implement carbon pricing in
the trade-off analysis of projects and during the
decision-making process for new investments,
with the objective of enabling and accelerating
the transition to a Net-zero economy. In addition,
we use the marginal abatement cost curve (MACC
or MAC curve) tool to prioritize investments and
resources in emission reduction initiatives. Our
MAC curve has already mapped initiatives with
reduction potential of approximately 10 MtCO2e,
enough to cover Vale's Scope 1 and 2 emissions
reduction target.
At the institutional level, Vale participates in the
main associations and institutions that promote
positioning on climate change mitigation innovations
and policies in line with the broader objectives of the
Paris Agreement. Additionally, we are not involved
with any association whose positioning and actions
diverge from the goals of the Paris Agreement.
Commitments
to a Low Carbon
Economy
GRI 103-2, 103-3 | 302-1, 302-2, 302-3 | 305-1, 305-2, 305-3, 305-4
Here are the main advances and results.
TARGET:
REDUCE SCOPE 1 AND 2 EMISSIONS BY 33%
BY 2030
Our target to reduce Scope 1 and 2 emissions, by
2030 is aligned with the Paris Agreement goal
to limit global warming to well-below 2°C and
is based on 2017 emissions, which totaled 13.5
MtCO₂e1. We built this target based on criteria
for science-based target setting of Science Based
Target initiative (SBTi)2.
1 Base year 2017 emissions would total 12.3 million tCO₂e
considering manganese and coal divestments.
2 SBTi - TWG-INF-002 | Version 4.2 April 2021, valid until
June 2022.
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4. Mine Closure and Future Use
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In 2021, Vale's activities resulted in the emission
of 505 million tons of CO₂e adding Scopes 1, 2 and
3 together. The direct Scope 1 emissions (fuels,
industrial processes and other minor sources)
and indirect Scope 2 market-based emissions
(electricity purchase) totaled 10.2 million tons
of CO₂e in the period1, an increase of 2% when
compared to 2020 and reduction of 24% when
compared to 20172. GRI 305-1 e GRI 305-2
Vale's indicator in 2021, of 24.4 kg CO2e/t MFe-eq3,
was about 5% lower than 2017 intensity, of 25.6 kg
CO2e/t MFe-eq4. Although the intensity indicator
showed a slight improvement, the reduction seen in
absolute emissions, of 24% (considering Scope 1 and
marked based Scope 2), is mainly due to the drop in
production levels compared to 2017. GRI 305-4
An increase in production is expected in the short
term, according to Vale's production and sales
report, which may lead to an increase in emissions.
In the medium term, a drop in emissions is
expected due to the implementation of low-carbon
initiatives by the PowerShift program.
Considering the divestment of manganese
(already completed in early 2022) and coal (sales
agreement) assets, which will entail a revision of
the baselines for the commitments undertaken5,
Vale's 2021 Scope 1 and 2 market-based emissions
totaled 9.0 million tons of CO₂e6, an increase
of 2% compared to 2020 and reduction of 27%
ENERGY CONSUMPTION MATRIX
BY SOURCE IN 2021
0.1%
4.3%
0.1%
0.1%
7.1%
29.6%
14.8%
compared to 2017. The divestments are subject
to Vale's commitment to a just transition for coal
mining workers and communities. See more at
Divestments in non-core assets here and here.
Energy consumption was 146.2 thousand TJ, a
small increase over the previous year, mainly
due to the resumption of Iron Ore and Pellet
production volumes and, more significantly,
Coal, despite the reduction in Nickel and Copper
production, mainly as a result of the strike in
Sudbury. Due to this slight volume recovery and
maintenance of the consumption level, the global
energy intensity was 0.349 TJ/thousand tons of
Iron Ore equivalent, a 1% reduction from that
verified in 20207. GRI 302-1 and 302-3
13.6%
Electricity
Diesel Oil
Natural Gas
Coal and Coke
Other oils
Renewable fuels
Shipping Oils
Other gases
Other liquid fuels
30.3%
Vale's Energy Efficiency Program, which aims to
drive initiatives that promote a reduction in the
energy intensity in our production processes, has
set a reduction target of 5% by 2030, compared to
the 2017 baseline.
This work is being developed globally by means
of multidisciplinary groups in each operation and
relies on the direct involvement of more than 400
people, supported by SmartEnergy, a platform for
managing energy consumption inputs throughout
the company.
Scope 1 and 2 emission reduction initiatives
implemented in 2021 contributed to a reduction of
approximately 78 thousand tCO₂e and are mainly
related to energy efficiency initiatives. Matrix
change technologies in mine, rail and metallurgical
processing operations are still in technological
development phase and will have a greater impact
from 2026 onwards. GRI 305-5
1 Vale's Scope 1 and 2 location-based emissions totaled 11.1
million tons of CO₂e, an increase of 6% from 2020 and 18%
from 2017.
2 Results reported in absolute emissions and do not include any
type of offset.
3 In this indicator, production volumes of Vale's main products,
such as Pellets, Coal, Nickel and Copper, are converted into tons
of Iron Ore equivalent.
4 2017 indicator recalculated considering VNC and Biopalma
sales. If we consider Coal and Manganese divestments, Vale's
indicator in 2021 would total 21.9 kg CO₂e/t MFe-eq, about 9%
lower than the 2017 intensity of 24.0 kg CO₂e/t MFe-eq.
5 According to GHG Protocol methodology, divestments will only
be removed from total emissions in the year of sale, that is, in
2022, implying a recalculation of the emissions of the base year
2017 for Scopes 1 and 2, and base year 2018 for Scope 3.
6 If we consider Coal and Manganese divestments, Vale's Scope
1 and 2 location-based emissions would total 9.8 million tons
of CO₂e, an increase of 6% from 2020 and a reduction of 20%
from 2017.
7 2020 energy intensity indicator was adjusted from 0.362
to 0.352 TJ/thousand tons of Iron Ore equivalent, due to the
revision of the iron ore equivalent production value used in the
calculation. This change does not generate significant impact.
GRI 102-48
Natural Capital
1. Climate Change
2. Biodiversity
3. Ecoefficiency
4. Mine Closure and Future Use
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In 2021, Vale announced investments of USD 4
to 6 billion by 2030 to reduce its Scope 1 and 2
emissions. Reduction initiatives are prioritized
by the company according to its emission
abatement curve for 2030, which is public and
can be accessed in the Climate Change Report.
About 75% of the abatement curve initiatives,
consolidated in reduction potential by type of
project graph showed positive NPV1, at a shadow
price of USD 50/tCO₂e.
It is important to emphasize that the adoption
of the best technologies for each asset is under
constant reassessment, due to factors such as
technological maturity, costs of clean fuels or
equipment and technical feasibility due to local
operational characteristics. Therefore, the total
reduction potential in the MAC curve could not be
completely fulfilled.
16
14
12
10
8
6
4
2
0
SCOPE 1 AND 2 GHG EMISSIONS (MILLION tCO₂e)
GHG EMISSIONS (SCOPES 1 AND 2) BY SOURCE IN 2021
2.1
1.2
12.3
13.5
Scope 1 + Scope 2 market based
without Coal and Manganese
Coal and Manganese²
Other divested units
Total with Coal and Managese
10.0
10.2
1.2
9.0
0.5
1.2
8.8
3%
4%
6%
33%
2017 (base year)
2020
2021
24%
REDUCTION POTENTIAL BY TYPE OF PROJECT
12%
6%
100%
53%
18%
11%
Biodiesel and
efficiency
Scope 2
Bioenergy
Electrification3
Natural gas
and others4
Total
Potential
30%
Mobile combustion
Stationary combustion
Industrial process
Fugitive
Purchase of electricity
Land use
In 2021, Vale announced
investments of up to USD 6 billion
by 2030 to reduce
its Scope 1 and 2 emissions.
¹ Base date of June 2021. The values consider assumptions for
low-maturity technologies, which bring uncertainty.
The graph above represents 2030 total emission reduction potential represented in the MAC
curve of June 2021.
² The results consider the Nacala Corridor.
3 Electrical equipment, belts, trolley, green hydrogen and hybrid solutions on the railroad.
4 Includes new processes.
Natural Capital
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2. Biodiversity
3. Ecoefficiency
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• Providing a second zero-
emission locomotive, for
operations at the port of
São Luís, using new battery
technology.
PowerShift – Vale
Decarbonization Program
In the context of the
decarbonization program
in 2021, we conducted a
number of tests in our
operations, particularly the
use of bio-oil, vegetable
charcoal (biocarbon)
and additives to reduce
energy consumption
in pelletizing plants. In
addition, we successfully
operated a battery
powered locomotive in the
Tubarão Port in Vitória, an
unprecedented piece of
equipment among large
mining companies. 5% of
the underground vehicle
fleet in Canada's operations
are already electric vehicles.
• Implementing the trolley-
assist system in Carajás,
significantly reducing diesel
consumption in off-road
trucks and enabling the
possible implementation of
battery-powered trucks.
• Introducing battery-
powered trucks in Brazil and
Indonesia.
• Continuing of biocarbon
tests in Pelletizing.
• Using a battery-powered
electric locomotive to
transport Iron Ore on the
Vitória-Minas Railroad.
For the year 2022, we
highlight:
TARGET:
NET ZERO SCOPE 1 AND 2 EMISSIONS BY 2050
As mining is considered a hard-to-abate sector,
any residual emissions from the company may
be subject to neutralization using Nature-based
Solutions (NBSs) with socio-environmental
benefits, and qualified carbon credits with
high credibility, aligned with international best
practices.
VALE'S 2050 NET ZERO STRATEGY: WHAT IT MEANS TO BE NET ZERO
Emission
Reduction
+
=
ZERO
EMISSIONS
(Carbon Neutral)
Emissions
Powershift
Remaining
Emissions
Offsets
Forests
+
Carbon
Markets
TARGET:
100% RENEWABLE ELECTRICITY IN BRAZIL
(2025) AND GLOBALLY (2030)
In 2021, electricity represented 29.6% of Vale's energy
consumption matrix, with 89% coming from renewable
sources. In Brazil, this percentage is even higher, 99%
come from renewable sources, with 96%1 guaranteed
by concession contracts for own assets, as well as by
Vale's energy acquisition contracts. This contracted
renewable energy was attested through certificates or
declarations from generators, having been audited by a
third party.
Vale's electricity self-generation portfolio is 99%
renewable. The installed capacity in 2021 was 2.3 GW,
related to hydroelectric and wind power generation
assets, directly and indirectly owned, located in Brazil,
Canada, and Indonesia. These plants supply an average
of 59% of Vale's global electricity consumption and
69% of Vale’s consumption in Brazil2, and contribute
to our climate change commitment to reduce GHG
emissions.
Initiatives for advances in renewable energy
The Sol do Cerrado Project stands out among the
initiatives on this front for generating solar energy
in the municipality of Jaíba (MG), in Brazil. With an
installed capacity of 766 megawatts-peak, the project
will produce a mean capacity of approximately 193
megawatts of energy per year for Vale's operations,
corresponding to 13% of our demand for 2025.
Scheduled to come online in late 2022, the solar project
will be one of the largest in Latin America.
In addition to investing in generation, Vale entered into
agreements in 2021 to use energy storage batteries
in its operations at the Ilha da Guaíba Terminal and
in Sudbury, Canada, thus helping to ensure greater
competitiveness and security of energy supply to
these operations.
1 90% from hydro and 10%
from wind.
2 Historical averages of
the percentages of self-
production globally and in
Brazil since 2017. In the year
2021, these percentages
represented about 62% and
72% respectively.
73
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TARGET: REDUCE SCOPE 3 NET EMISSIONS
BY 15% BY 2035
Our company's challenge is the reduction of
emissions in its chain – Scope 3, since 98% of Vale's
total emissions occur in the value chain. Therefore,
we were pioneers among mining companies in
establishing a Scope 3 quantitative emissions
reduction target based on SBTi criteria. Vale has
made the attainment of this target more flexible
with the possibility of limited1 use of offsets of
high-quality carbon credits, for two main reasons:
(I) challenge to reduce emissions at customers; (II)
to foster the voluntary carbon market.
About 97% of Vale's Scope 3 emissions are
downstream in its value chain, mainly in
steelmaking, from processing, transportation
and the use of products sold by the company.
In 2021 Scope 3 emissions
totaled 495 million tons
of CO₂e, representing an
increase of 3% compared
to 2020, and a reduction
of 15% compared to the
2018 base year emissions
Upstream, on the other hand, emissions are
associated with suppliers of raw materials,
products, and services, as well as their
transportation, and totalled about 3% of Scope 3
emissions in 2021.
Scope 3 emissions totaled 495 million tons of
CO₂e in 2021, representing an increase of 3%
compared to 2020, and a reduction of 15%
compared to the 20182 base year emissions.
The variation is mainly due to changes in the
sales volume of our products. Considering the
divestment of manganese and coal assets,
Vale's Scope 3 emissions in 2021 would total 480
million tCO₂e, an 2% increase from 2020 and an
16% reduction from 20183. GRI 305-3
1 Maximum 20%.
2 2018 base year emissions of 585 million tons of CO₂e are
reduced to 568 million CO₂e, considering the divestment
of manganese and coal assets, realized in 2022.
3 An increase in Vale's Scope 3 emissions is expected as
a result of increased sales volumes due to a prospect of
increased demand for our products, as indicated in the
2021 financial report.
Scope 3 emission reduction initiatives
Scope 3 emissions
Upstream
Scope 1 and 2
emissions
Scope 3 emissions
Downstream
Fomenting suppliers’
emission reduction
Vale’s own operations
Shipping of Vale’s products
to its global clients
Higher quality products
and innovative solutions
to lower client’s
emissions
Partnerships to test
innovative solutions in
steelmaking
• Supplier engagement via CDP
Supply Chain, with provision in
contractual clause
• 375 suppliers engaged in 2021
Power Shift Program:
Ecoshipping Program:
• Improvement in our high-
• Engaged clients represent
• 2021 pilots are part of
technologies roadmap with
estimated potential to reduce
more than 3 MtCO₂e /year by
2030
• 36% of the Sol do Cerrado Solar
Project implemented in 2021.
Operations start in 2022 and the
project will reduce 145 ktCO₂e
per year from Scope 2
• 2 pilots implemented in 2021
• Rotor Sails potential
reduction of up to 3,400 tCO₂e
per ship per year.
• Air Lubrication potential
reduction of up to 5,600 tCO₂e
per ship per year
quality portfolio
• New technologies, such as
iron ore "green briquettes"
and dry concentration
technology
• Tecnored technology, which
can produce a “green”
low-cost pig iron, using
biocarbon instead of coal
• Biomass to replace coal
approximately 30% of
global steel production and
about 40% of Vale's Scope 3
emissions
• Electromettalurgical
Company1 investment
4 Boston Metal is a pre-operating company, founded in 2012 by professors from the Massachusetts Institute of Technology (MIT), whose objective is the development of an innovative technology called molten oxide
electrolysis (MOE), which reduces metallic oxides such as Iron Ore with the use of electricity. This MOE process will enable the transformation of Iron Ore for steel production with zero CO₂ emissions.
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"Green
briquettes"
PHOTO: VALDIRENE RESENDE
We recognize that reducing emissions in
our chain will only be possible through solid
partnerships, which is why we signed a
Memorandum of Understanding (MoU) with
relevant steelmaking customers to develop
joint solutions to decarbonize and test
new low-carbon products, such as the "green
briquette" (see the box below). In total, engaged
clients represent approximately 30% of global
steel production and about 40% of Vale’s Scope 3
emissions.
Low-carbon products
Vale already has low-carbon products in its
portfolio, such as "green briquettes", a new
agglomerated Iron Ore product, and low-
carbon Nickel products produced in Long
Harbour, Canada.
Long Harbour's Nickel products, Plating
Rounds and Casting Nickel Wheels have
a carbon footprint of 4.4 tons of CO₂
equivalent per ton of Nickel, about three
times lower than the global average
intensity reported by the Nickel Institute
for Class I nickel.
binder solution, which contains sand from
treated mining tailings and can withstand
high blast-furnace temperatures without
disintegrating.
The "green briquette" has the potential to
reduce greenhouse gas (GHG) emissions
in steel production by up to 10% for Vale’s
steel customers. The GHG reduction occurs
because the product allows the steelmaker
to reduce their dependence on sintering, a
process prior to steelmaking in which fine
Iron Ore is agglomerated (sinter feed).
The "green briquette" on the other hand,
was a new product we developed internally
by the company over almost 20 years and
launched to the market in 2021. It is formed
by using Iron Ore and a technological
Learn more
Vale's Climate Change
2021 Report
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Among signed MoUs, we can highlight those signed
with Ternium in Brazil, with the Chinese company,
Baowu and with the Korean company, POSCO,
which scopes seek decarbonization solutions in
steel production that include our product portfolio,
high quality Iron Ore, "green briquettes" metallic,
alternative steel production routes, among others.
Through our Ecoshipping program, Vale is also
investing in several R&D initiatives, in partnership
with external research institutions, to map and test
new technologies capable of reducing emissions in
maritime transport. In 2021, we developed pilots
to test innovative technologies aimed at reducing
the intensity of emissions, such as rotary sails, air
lubrication, and hull cleaning with robots. See more
about this initiative in Innovation.
In relation to our Upstream emissions chain, via
the CDP Supply Chain Program, approximately
500 suppliers were selected to participate in the
program in 2021, with 75% adherence (375 suppliers)
and 91% adherence of the 2020 respondents invited
for the second year (221 suppliers). 22% of the
suppliers were classified as leaders or with good
management in the theme (CDP score A and B),
with 63% evaluated as having low level of maturity.
We identified a total of 288 opportunities with
substantial strategic or financial impact, as well as
emission reduction partnership opportunities with
several suppliers.
Vale Natural
Reserve, capuchin
monkey (Sapajus
apella), Linhares,
Espírito Santo State
PHOTO: RICARDO TELES
Climate-related risks
and opportunities
We have adopted the Task Force on Climate-related Financial Disclosures
(TCFD) guidelines to manage the impacts of our transition to a low-carbon
economy, and the physical impacts of climate change on our operations. Also,
in 2020 Vale conducted a climate scenario analysis of its portfolio based on the
International Energy Agency (IEA) scenarios and plans to structure an analysis
for a 1.5 °C rise scenario in 2022.
MAIN RISKS AND OPPORTUNITIES MAPPED
TRANSITION
RISKS
PHYSICAL
RISKS
CLIMATE-RELATED
OPPORTUNITIES
• Changes in public policies
to restrict emissions, in-
cluding carbon taxation
• Climate-related litigation
with impacts on the
company's image
• Changes in demand,
favoring low-carbon
products
• Product substitution due
to new technologies and
processes
• Chronic risks, such
as rising average
temperatures,
rising sea level, and
changes in rainfall
patterns
• Acute risks, such as
extreme weather
and sea conditions
• Use of lower
emission energy
sources, with
potential cost
reductions
• Diversification
into higher
quality, lower
carbon products
and services
Learn more
Access the description of risks and opportunities, as
well as Vale's management actions for each, in the
Climate Change 2021 Report.
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Biodiversity
GRI 103-2, 103-3
Vale prioritizes risk analysis and adopts measures
intended to prevent, mitigate, recover, and
compensate these impacts. In 2021, the area
impacted by our operations totaled 814.57 sq km.
New suppressed areas totaled 10.13 sq km and areas
of permanent recovery totaled 18.2 sq km. (GRI
304-1, 304-3 | G4 MM1). Part of our operations, due to
the locational rigidity of the business, overlap and
interface with areas of high value for biodiversity,
such as hotspots and key biodiversity areas, and
approximately 30% interfere with protected areas.
We remain committed to further reducing our
impacts, as well as restoring and compensating the
areas and habitats we affect, in line with our long-
term goal of neutralizing impacts on biodiversity in
new projects.
Operations that generate significant impacts
in areas of high value for biodiversity require
management programs, which we are
implementing and improving either through
legal obligations or voluntary commitments.
Among the 61 operational units evaluated
in 2021, 54 (88.5%) required the preparation
of management programs. (GRI G4 MM2). For
these units, 51 programs have already been
implemented, seven are being prepared and
one is a future proposal, and some of the
units contemplate more than one project and,
therefore, have more than one associated
program.
The Carajás Biodiversity Management Plan
(PGBio Carajás), published in 2021, is a dynamic
document that integrates and consolidates all
Our operations work to recover degraded areas by restoring forest and recovering
habitats and important ecosystem services. By 2021, more than 5,000 hectares
have been recovered in rural properties mostly located south of the Carajás
National Forest within the Connectivity Project – Northern System Forest
Corridor. This project goes beyond fulfilling legal requirements, aiming to increase
the forest cover in areas previously occupied by agricultural activities and to
promote connection in the landscape. In addition, we are fostering partnerships
with a local cooperative to buy seeds of native species, generating alternatives for
the sustainable use of the forest.
our initiatives related to risk management and
impacts on sensitive habitats and species in Vale's
operations and projects in the region.
In 2021, we recorded 5,442 species as occurring
in habitats impacted by Vale's operations or
located near its operations, of which 2,968 were
fauna and 2,471 flora. Of these, 135 fall within the
International Union for Conservation of Nature
(IUCN) threats classification scheme. GRI 304-4
Learn more
About Carajás Biodiversity
Management Plan.
Protected
areas GRI 304-3
We currently protect or help protect an area
of approximately 10,000 sq km, equivalent to
12 times the area occupied by our operations.
As a result of this work, developed through an
integrated management of the territories and
partnerships, it is also highlighted the protection
of native fauna and flora species, including
endemic and endangered species.
Biodiversity
management in
the value chain
Vale understands the challenge of
integrating biodiversity management
into the value chain. Therefore,
it has addressed initiatives to
help support the supply chain
and commercial areas to adopt
environmental requirements,
which include biodiversity, in
engaging with customers and
suppliers. For example, customers
that consume forest-based raw
materials are required to provide
documents attesting to their socio-
environmental compliance in their
production process supply chain. As
next steps, the company intends to
establish a more robust evaluation
with an inspection routine, also
seeking to evaluate issues involving
illegal deforestation in the value
chain and other concerns.
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Vale's 2030
forestry commitment
RECOVERY OF 100,000 HECTARES
OF FORESTS
The Vale Fund supported the development of
five agroforestry businesses that implemented
productive recovery models on 5,125 hectares in
a pilot phase, adding up to an area of more than
6,000 hectares between 2020 and 2021.
The startups Belterra, Caaporã, Bioenergia,
Inocas, and Regenera develop businesses related
to the cocoa, cassava, açaí, baru, banana,
and pupunha chains, among others, in seven
Brazilian states and in four different biomes
(Caatinga, Atlantic Forest, Cerrado, and the
Amazon), generating jobs and income for family
agriculture. We have earmarked investments of
approximately USD 10.21 million to structure and
leverage the business.
Belterra: Socio-
environmental
impact and recovery
of degraded areas
Incubated as part of Vale's 2030 Forestry
Commitment and supported by the Vale Fund,
Belterra Agroflorestas was born with vision of
being a company that would achieve a social and
environmental impact in rural areas by restoring
degraded areas throughout Brazil.
The business model that sustains the company's
operations is based on deploying of regenerative
production systems, such as the Agroforestry and
Agro-silvopastoral systems, on small and medium-
sized properties, through leasing and/or rural
partnership agreements.
In its second year of operation, Belterra has raised
investments with a European climate fund and is
in advanced stages of negotiation with a Brazilian
investment fund for a new round of expansion
in the coming years. In addition, it is negotiating
supply contracts with large companies in the
cocoa and cassava chain.
“With the support of
Belterra Agroflorestas, we
were able to diversify our
production. We started
planting cocoa and
increased the productive
efficiency here at Recanto
das Águas Farm. The
project was so successful
that it encouraged my
daughter, who is a dentist,
to take over the cocoa
production, ensuring
that we will have another
generation at the head of
our family property”.
Ademir de Paulo Dan, Mr.
Juca, from Parauapebas
(PA)
Acceleration Program
At the end of 2021, the Vale Fund joined its
partners to start an Acceleration Program
with the purpose of being a catalyst for
businesses that operate in sustainable value
chains linked to Vale's forest recovery goals.
The expectation is to help companies
move toward economic sustainability
while scaling their field operations to meet
recovery commitments. To achieve this goal,
entrepreneurs receive support and guidance
to develop, plan, and execute short,
medium, and long-term strategies.
The Program also helps to strengthen a
Sustainable Impact Business Ecosystem
supported by partner institutions with
specific and transversal skills to help
entrepreneurs along their journey.
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PROTECTION OF 400,000 HECTARES
OF FORESTS
To protect forests, we formed partnerships in 2021
with three Conservation Units managed by the
Chico Mendes Institute for Biodiversity Conservation
(ICMBio in Portuguese). Together, these Biological
Reserves (REBio) help to protect more than 62,000
hectares of Atlantic Forest in three Brazilian states.
In addition, we continue to work to protect and
conserve the units covered by agreements we signed
in 2020, which involve 52,848 hectares, adding up to
an area of 115,093.96 hectares already protected in
two years.
Building a legacy for the Amazon
More than 80% of the protected areas Vale
owns and supports are located in the Amazon,
where the company has promoted biodiversity
conservation initiatives for more than 30 years. In
the last decade, through the Vale Fund, we have
supported more than 90 initiatives by research
institutions, governments, NGOs and startups to
protect forests.
Through the Vale Institute of Technology, the
company has been investing around USD 220.8
million in research in science and technology
since 2011. Of this amount, approximately USD
114 million has been applied to research for
sustainable development, mainly in the areas
of biodiversity, environmental genomics, and
climate change.
Artificial intelligence in the fight against deforestation
In 2021, the Vale Fund and Microsoft
supported the Institute of Man and
Environment of the Amazon (Imazon)
in developing PrevisIA, a platform that
uses artificial intelligence (AI) in an aim
to anticipate information about Amazon
regions at risk of deforestation and fires.
PrevisIA analyzes diverse data such
as topography, land cover, urban
infrastructure, official and unofficial roads,
and socioeconomic data, among others, to
identify forest conversion trends through
deforestation.
This public information is available
here, and its analyses have been used
strategically by public agencies to plan
and execute preventive actions to combat
and control deforestation.
Learn more
About our initiatives in
the Amazon.
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Environmental
genomics of the
Amazon
In 2021, the Vale Sustainable Development
Technology Institute began genetic studies
to learn about the DNA of the Amazon. The
Amazon DNA project aims to help identify
fauna and flora species and to support the
challenges of biodiversity conservation
through environmental monitoring.
Another biotechnology application is
investigating species via DNA sequencing with
economic purposes to generate income for
families and native peoples by improving their
cultivation.
The Amazon DNA project has also as partnered
with the Federal University of Pará, The
Rockefeller University, Dresden University Of
Technology, Museu Paraense Emilio Goeldi,
University of Copenhagen, PUC RS, Federal
University of Minas Gerais, and the Brazilian
Association of Zoos and Aquariums.
Learn more
About this initiative.
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Commitments to biodiversity
protection initiatives GRI 102-12, 102-13
The initiatives to protect and restore natural
environments, maintain essential ecosystem
services, and reduce threats to species are aligned
with the commitments and targets set by the
Convention on Biological Diversity (CBD).
As an ICMM member, Vale is committed to the
principles established by the Council and to
Performance Expectation 7, which is a call to
respect areas of high value to biodiversity and
implement and enforce an impact mitigation
hierarchy, seeking to neutralize significant
biodiversity losses.
In 2021, Vale made a
public commitment
not to operate in
UNESCO Natural
World Heritage Sites
In 2021, Vale made a public commitment not to
operate in UNESCO Natural World Heritage Sites.
The Vale Natural Reserve (RNV in Portuguese),
a protected area owned by the company that
is dedicated to the conservation of 23,000
ha of Atlantic Forest remnants, as well as
the Sooretama Biological Reserve (REBio), a
protected area that Vale protects in partnership
with ICMBio, are part of the Discovery Coast
Atlantic Forest Reserves World Heritage Site.
They also constitute a Key Area for Biodiversity
Conservation.
Additionally, since 2020 Vale has been part of the
Brazilian Business Commitment to Biodiversity,
proposed by the Brazilian Business Council
for Sustainable Development (CEBDS) and the
Business for Nature Call for Action, a union of
companies and institutions seeking to reduce
biodiversity loss. In 2021, Vale also joined yet
another transparency tool for its biodiversity
results – responding to CDP Forest, formely
known as the Carbon Disclosure Project and its call
to disclose our environmental impact.
Learn more about initiatives and results in Vale's
2021 Biodiversity report.
Ecoefficiency
GRI 103-2, 103-3
Water resources
Vale’s main uses of water are ore beneficiation,
machines and parts cleaning, environmental
controls, sanitation and human consumption. Our
effluents, on the other hand, come from industrial
uses, drainage, and human consumption and are
reused in the company's processes whenever
feasible.
Aware of the risks associated with water scarcity,
and in line with the guidelines of the International
Council on Mining and Metals (ICMM), Vale has a
Water and Water Resources Policy with guidelines
for responsibly and rationally managing water
resources and effluents.
WATER STRESS ASSESSMENTS
To assess water stress in the areas where it
operates, Vale uses the Aqueduct tool, developed
by the World Resources Institute (WRI). Applied
in 43 units, the tool provides an overview of the
region’s most susceptible to river and coastal
floods, as well as the severity of droughts and
seasonal and inter-annual water variability and
scarcity that can be expected. This helps the
company to correlate our water use with the
indicated degrees of risk.
2030 WATER TARGET
Aiming to promote water security in the regions
where we are present – that is, to ensure water
is available in sufficient quantity and quality for
human supply, economic activities and aquatic
ecosystem conservation – in 2018 we established
the Water Target. Our commitment was to reduce
by 10% the withdrawal of fresh water for use in
our production processes by 2030 compared to
2017 as the base year.
To achieve this goal, we invested in (a) expanding
our water monitoring network, (b) initiatives
to reuse effluents in the company's processes,
(c) using rainwater, (d) searching for new
technologies, and (e) developing studies to
continuously improve our responsible water
resource management.
In 2021 our global result accumulated since the
base year was a 20% reduction, which exceeded
our initial goal set for 2030 (a 10% reduction).
Highlights were our operations in the Amazon
region and part of the operations in southeastern
Brazil, which achieved an accumulated reduction
of 47%. GRI 303-1
As a guideline of our Water and Water Resources
Policy, when we reach our goal, we must define
new goals. Thus, new targets based on responsible
water resources management and effluents will be
published in 2022.
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Atmospheric emissions
– particulate matter, NOx and SOx
Given the impacts of atmospheric emissions and
with our ambition to be a leader in sustainable
mining, Vale established the following targets in
2021 to reduce its particulate matter (PM), sulfur
oxide (SOx) and nitrogen oxide (NOx) emissions by
2030, compared to 2018* as the base year.
In this context, Vale invested about USD 80
million in 2021 in operational improvements and
adopted new technologies to control and manage
atmospheric emissions. Other initiatives and
projects are planned to reduce NOx, SOx and
PM by 2030, such as the use of alternative fuels,
specific technologies and improved operational
efficiency. There was an adjustment of the
emissions data at the PT Vale Indonesia (PTVI) unit
to make it compatible with the method reported
to the local environmental agency. These changes
led to higher emissions of SOx and NOx in 2019 and
2020, as shown in the following graphs.
In 2021, particulate matter emissions were 47%
lower, due to reduced production at the PTVI plant
and at the Tubarão pelletizing plants, as well as the
shutdown period at Sudbury.
Sulfur oxides emissions for 2021 were 77.1 tons. The
most significant reductions occurred in Sudbury
and PTVI, due to lower production. In addition,
there were reductions due to the mass balance, a
calculation methodology used in these units that is
subject to variations in the characteristics of inputs
and processes. In Pelletizing, the main reductions
occurred in Tubarão and São Luís, due to the use
of fuels with lower sulfur content and improved
energy efficiency.
Learn More
About emissions of particulate
matter in Vitória.
*After the Brumadinho accident in 2019, there was a reduction in
production due to the shutdown of some operations, consequently
generating a reduction in emissions in this year and subsequent
years. After the gradual resumption of operations and new projects
to increase production until 2030, a proportional increase in the
emissions curve is expected. With the planned initiatives, we project
reductions in NOx, SOx and PM emissions.
Reduce by
16%
the Particulate
Matter emissions
Reduce by
16%
the Sulfur Oxides
emissions
Reduce by
10%
the Nitrogen
Oxides emissions
PARTICULATE MATTER EMISSIONS GRI 305-7
in thousands of tons
Nickel Pelletizing Manganese
9.1
0.4
2.1
6.6
8.1
0.6
2.4
5.1
9.1
1.6
0.1
7.3
4.9
1.4
0.1
3.3
2018
2019
2020
2021
SOx EMISSIONS
in thousands of tons
GRI 305-7
170.7
1.4
132.5
Logistics Fertilizers Pelletizing
Nickel Other Business
86.3
71.0
1.5
99.1
90.2
0.9
77.1
66.1
1.2
28.6
2.5
5.8
2.3
11.4
0.5
7.5
2.0
7.8
2018
2019
2020
2021
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NOx EMISSIONS GRI 305-7
in thousands of tons
Other Business Nickel Logistics
Pelletizing Iron Ore
81.9
6.8
35.0
22.4
10.2
7.5
47.2
14.1
0.5
50.2
3.0
17.0
16.5
15.2
18.3
10.5
1.4
38.7
1.6
11.5
11.8
10.7
3.2
0.9
2018
2019
2020
2021
Emissions of oxides of nitrogen, meanwhile, totaled 50.2 thousand tons. This
reduction reflects the lower production at PTVI and Sudbury, while there was
also an increase in emissions at the Oman pelletizing units, Nickel at Onça Puma
and the Logistics and Iron Ore businesses, due to the higher production volumes.
Mine Closure and Future Use GRI 103-2, 103-3
The process of planning for the closure of assets
should occur in parallel to the operation, minimizing
risks and maximizing opportunities to generate value
for the territories. The possibilities of post-mining
use must contemplate a vision of the territory that
integrates constraints and opportunities. We have
the great challenge of structuring the governance of
these processes and building, together with society,
proposals for the future use and transition of mined
territories that is compatible with the environmental
and socioeconomic vocations of the affected areas.
For iron ore operations, co-creation for the future
use of mined territories is supported by integrated
database management, which allows us to analyze
and prioritize the progressive closure of our assets
while also integrating a plan for operations and
identifying the regional aptitudes that form the basis
for advancing the future use assessments.
Currently, we work with an annual cycle to plan and
execute the progressive closure of assets and study
our territories’ aptitudes and potentialities. Among
the projects for future use in progress, we can
highlight the Águas Claras Mine (MAC in portuguese)
and parts of the territory of the Itabira Complex, both
in Minas Gerais, Brazil.
Águas Claras Mine
Nova Lima, Minas
Gerais
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Among the projects for future use
in progress, we can highlight the
Águas Claras Mine (MAC) and
parts of the territory
of the Itabira Complex
Natural Capital
1. Climate Change
2. Biodiversity
3. Ecoefficiency
4. Mine Closure and Future Use
82
PresentationHuman CapitalSocial Capital AssuranceCritical AnalysisCreditsGRI Index
Vale
Governance and Compliance
Manufactured Capital
Financial Capital
Intellectual Capital
Natural Capital
FUTURE USE OF THE ÁGUAS CLARAS MINE
Located between Nova Lima and Belo Horizonte,
in the Serra do Curral region, the Águas Claras
Mine was shut down in 2002, after 30 years of
operation by MBR, and is currently undergoing
closure and decharacterization works.
The surrounding area contains condominiums
and clusters of residential neighbourhoods with
strong commercial intensity alongside rural areas
and environmental preservation areas, so water
is important in the region. Therefore, the closure
process represents a complex and multifaceted
reality that requires the involvement of various
players and interests.
In 2020, we started to plan the future use of
the enterprise. At that time, we consulted the
local community to identify potentialities and
restrictions for future occupation and society's
expectations regarding the area, by means of
a perception study. The result pointed to the
valorization of the region's natural capital to
drive the future use process, as it has potential
in the social spheres of ecotourism, leisure,
environmental conservation / education, real
estate ventures and public services. With this
guiding strategy, the next steps will involve
feasibility studies and continued engagement in
implementing the mapped actions.
FUTURE USE OF MINES IN ITABIRA
Itabira is the city where Vale was born in 1942.
Today, we are looking for ways to continue
operations there while beginning the closure
process in a responsible, sustainable and gradual
manner. Through projects to explore future use
we are transitioning to post-mining activities.
Our objective is to rely on the community’s active
participation and meet the aspirations of Itabira
society.
In the initial stage, we sought to evaluate the
potential and restrictions of future use, primarily
in an area in the Pontal/Doze basin, surrounded
by urban and rural areas. During the knowledge
gathering stage, we identified several natural
interferences and socio-economic pressures in the
surrounding area, among them urban expansion
vectors, the presence of vulnerable communities,
protected forest fragments, as well as areas of
interest and socio-cultural importance, which we
compiled in an integrated territorial base.
In 2020 we carried out a survey to understand
the relationship between the community and the
conservation areas – natural capital assets – that
are currently under our responsibility. Based on
this research, we mapped initiatives with the
potential to reconcile environmental conservation,
the creation of shared value and financial
sustainability. Among the opportunities, according
to compatibility and use restrictions, we identified
renewable energy generation as a possible way to
re-signify the territory in the feasibility stage of
our future use approach.
In 2021, Vale and the Itabira City Hall established
a group to plan, prioritize and integrate the
company’s activities in the municipality. The
company provided the services of a specialized
consultancy to build a short, medium and
long-term strategy to direct the municipality’s
sustainable development. Actions are underway to
link the sustainable development initiatives with
the municipality’s expected future perspectives in
terms of mining dependency.
PROVISION FOR ASSET
DECOMMISSIONING AND MINE CLOSURE
GRI G4 MM10
We prepare and review, on an annual basis, a
cost estimate for decommissioning assets (pits,
piles, dams, industrial facilities, etc.). To prepare
this estimate we follows the Asset Retirement
Obligation (ARO) methodology, provide full
disclosure in our financial statements, and comply
with the requirements defined by International
Accounting Standard (IAS) 37 and the Securities
and Exchange Commission (SEC) and the
Sarbanes-Oxley Act. In the 2021 cycle, 100% of our
operations* had Closure Plans and made provisions
totalling approximately USD 4.2 billion.
Among the ESG gaps we identified is "Disclose
information on mine closure planning, including
community engagement process", with a
deadline for completion in 2022. See more here.
100%
of our
operations* have
Closure Plans
*Considers mapped operations as applicable to those that have been identified through internal controls
for the preparation of the Closure Plan.
Natural Capital
1. Climate Change
2. Biodiversity
3. Ecoefficiency
4. Mine Closure and Future Use
83
PresentationHuman CapitalSocial Capital AssuranceCritical AnalysisCreditsGRI Index In the photo (left to
right), Dayanne Priscila
Silva, Vera Araujo,
Amanda Francisca Tenario
de Almeida and Luciana
Silveira
In the background:
Learning together
Human
Capital
Vale | Integrated Report 2021
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1. Occupational Health and Safety
2. Covid-19
3. People
4. Diversity, Equity and Inclusion
PresentationGovernance and ComplianceFinancial CapitalNatural CapitalHuman CapitalIntellectual CapitalSocial CapitalManufactured Capital AssuranceCritical AnalysisCreditsValeGRI Index
Atingir
40%da representatividade de
lideranças (cordenadores
e acima) negras no Brasil
até 2026
Apresentação
A Vale
Visão Global
Governança Corporativa
Desempenho e resultados
Capital Financeiro
Capital Natural
Capital Humano
Capital Intelectual
Capital Social
Capital Manufaturado
Análise crítica
Sumário GRI
Créditos
HUMAN CAPITAL
We aim to strengthen a
culture of promoting and
valuing an inclusive and safe
environment for all
DIVERSITY
GOALS>
Increase
the representation
of women in the
workforce until 2025 to
26%
Increase the representation of
women in senior leadership
by 2025 (executive manager
positions and above) for
20%
Reach
40%of the representativeness
of black and brown people
in leadership position
(coordinators and above)
in Brazil by 2026
Reduce the number of agent
exposures harmful to health
in the work environment by
2025 in
50%
Zero the number of
high-potential
recordable injuries
(fatality precursors)
by 2025
72.266
Employees
WOMEN
18.7%
WOMEN
IN TOP
LEADERSHIP
20.3%
BLACK
AND BROWN
RACE
64%
in Brazil
SEXUAL
ORIENTATION
3.6%
gay, lesbian, bisexual
and others in Brazil
PEOPLE
WITH DISABILITIES
5.3%
in Brazil
141.147
Contractors
OCCUPATIONAL HEALTH AND SAFETY
HIGH-POTENTIAL
RECORDABLE INJURIES
FATALITIES
(OWN AND CONTRACTORS)
60
40
20
0
57
44
29
242
250
200
150
100
50
0
2019
2020
2021
2019
Human Capital
4
2020
2
2021
TOTAL ACCIDENT RATE
3.48
3,5
3,0
2,5
2,0
1,5
1,0
1.98
1.41
2019
2020
2021
REDUCE THE NUMBER
OF EXPOSURES ABOVE
THE OCCUPATIONAL
EXPOSURE LIMIT (OEL)
25
20
15
10
5
0
23
20.7
17.9
17
15.6
15
Exposures
Target
13.7
12.4
11.5
2019
2020
2021
2022
2023
2024
2025
20
15
10
5
EMPLOYEE TURNOVER
In %
19.7
Women
Men
General
12.1
8.7
8.2
10.7
9.3
14.5
8.2
7.0
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2019
2020
2021
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Occupational Health and Safety
GRI 103-2, 103-3 | 403
Vale's health and safety strategy is based on
three pillars: preventing injuries and chronic
diseases; preventing fatalities; preventing
catastrophic accidents.
As part of a broad governance review, we
implemented the Safety and Operational
Excellence Executive Board in 2019, which acts as
the second line of defense in managing safety and
risks contemplated in our management model,
the Vale's integrated management system (VPS).
The Office also establishes policies and technical
guidelines with the aim to ensure occupational
health and safety aligned with ISO 45001
(Occupational Health and Safety Management
System) standards.
As part of a broad
governance review,
in 2019, Safety and
Operational Excellence
Executive Board was
implemented
Accidents and fatalities
GRI 403-9
In 2021, there were two fatalities at Vale. These
events show that there is still a lot to be done
to honour our commitment to achieve zero
fatal accidents.
One of the fatalities involved a company employee
(in Itaguaí, Rio de Janeiro) and the other involved a
contractor in Moatize, Mozambique.
Below is the evolution of fatalities at Vale since
2018, followed by a brief description of the
occurrences in 2021:
Year
Contractors
Employees Total
2018
2019
2020
2021
1
118
3
1
1
2
124
242
1
1
4
2
FATALITIES IN 2021
In April, during a maintenance outage at Ship loader
01 in Sepetiba Bay Port Company Terminal (CPBS in
Portuguese) in Rio de Janeiro, Brazil – an electrician
who was a Vale employee fell from a height of
approximately 18 meters upon finishing a repair
and after releasing the equipment. The employee
succumbed to his injuries and died in hospital.
In June, at the Moatize Mine in Tete,
Mozambique, an employee of a contracted
company was performing an operation on the
220 kV power transmission line when he came
into contact with high-voltage electricity. Rescue
efforts were unsuccessful, and he died.
Both occurrences underwent an investigation
process. It was conducted by internal investigation
teams, led by an executive in a neutral and
impartial position from another operation, and
involved global subject matter experts and
employees both directly and through the Internal
Commissions for Accident Prevention (CIPA in
Portuguese).
The occurrences were shared via webcasts. Based
on the investigations, we defined comprehensive
actions that are now mandatory to prevent similar
accidents in the future and compliance with these
actions is required by all of Vale's areas.
Maintenance
Facility, Carajás
Mine. Canaã dos
Carajás/Pará
PHOTO: LUCAS LENCI
Human Capital
1. Occupational Health and Safety
2. Covid-19
3. People
4. Diversity, Equity and Inclusion
86
PresentationGovernance and ComplianceFinancial CapitalNatural CapitalHuman CapitalIntellectual CapitalSocial CapitalManufactured Capital AssuranceCritical AnalysisCreditsValeGRI Index Main initiatives
Vale's occupational safety management comprises
a series of initiatives ranging from mapping and
adopting measures for risk mitigation to protocols
and requirements for certain activities. The
initiatives include actions to promote the physical
and emotional health and well-being of employees.
They include:
• Hazard Identification and Risk Analysis (HIRA): a
structured process that identifies hazards and
analyzes risks, details the causes of the scenarios
for process accidents, the existing protections
and the criticality of the risks in the people
and environment dimensions - during its first
cycle (2019 to 2021). In the second cycle (2022
to 2025), critical and very critical operational
scenarios with potential business interruption
will also be considered. This process also aims
to continuously improve the integrity of Vale's
critical assets.
• Technical Standards of Asset Integrity (PNR):
standards applicable to the asset’s life cycle
(engineering, construction, commissioning,
operation and decommissioning) that define
technical requirements to prevent and mitigate
undesired events based on risk scenarios.
• Metrics for process accidents: guidelines for
capturing and investigating process accidents
(process safety) were standardized - events
involving Vale's productive processes that
result in uncontrolled release of energy and/
or materials (toxic or not). In 2021 the pyramid
of process events was created. When fully
implemented, process accidents will become an
important indicator in Vale's safety strategy.
• Promoting Healthy Habits (VP GO): Global
employee competition to achieve healthy
habit challenges with 21,957 participants in 14
countries. As key outcomes of the program in
2021, we report that: 61% of participants are
more active after the program, 76% improved at
least 1 nutritional habit, 26% felt less stressed
after participating, 20% felt more productive,
and 24% reported feeling more energized.
• Safe Work Permit (SWP): process that assesses
• Process safety: Regarding operational risks,
relation to labour laws, which include not allowing
employees to work more than 48 hours a week on
regular time and 60 hours including overtime.
In addition, Vale acts to promote employee health by
complying with local legal requirements, considering
the World Health Organization (WHO) global agenda
to focus on themes such as the common flu, sexually
transmitted diseases, pregnancy, men's and women's
health, obesity, hypertension, diabetes, smoking, and
mental health.
risks of routine and non-routine tasks
considered critical or very critical. The process
starts in the maintenance planning stage,
continues with a discussion at the activity site,
goes through the execution of the activity and
ends with the delivery of the service and closing
of the maintenance order.
• Critical Activity Requirements (RAC): internal
compliance standards for the execution of
critical and very critical tasks. They are critical
requirements for the elimination of fatal
accidents in these activities.
• Exposure to health risks: global corporate
guidelines for the management and development
of monitoring and control programs for employee
occupational health, which includes quantitative
objectives for the reduction of health risk
scenarios in the medium term.
safety indicators for production processes were
adopted in 2021.
The company also respects the conventions of
the International Labour Organization (ILO) in
Disability prevention
In 2021, Vale implemented global guidelines to strengthen our efforts to prevent
cases leading to employee disability. Musculoskeletal and mental disorders ranked
first among common risks, both in Brazil and worldwide. In an effort to mitigate
these and other risks, we instituted multidisciplinary committees to set guidelines;
involve our Health and Safety, Human Resources and Management areas; and provide
management indicators, tools, technology, and processes to reduce absences.
Human Capital
1. Occupational Health and Safety
2. Covid-19
3. People
4. Diversity, Equity and Inclusion
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Incident
underground at
Totten Mine in
Sudbury, Canada
In 2021, 39 Vale workers were trapped
in the Totten underground mine Mine
in Canada after a shaft blocking - a
structure used to transport people and
materials underground - incident.
The 39 employees returned safely to
the surface with the support of the
Vale rescue team and the municipality
via a secondary exit. After the incident,
Vale began an investigation to ascertain
the causes of the incident and take
measures to ensure that it does not
happen again.
More than 40 recommendations
have been implemented, including
improvements in resource management,
operational controls, hazard
identification, and risk assessment.
INDICATORS
AND GOALS
Vale has health
and safety goals
for 2025:
Reduce by
50%
the number of
exposures to
healthdamaging
agents in the
workplace by 2025.
Reduce to
0
the number
of recordable
highpotential
injuries by 2025.
REDUCE THE NUMBER OF EXPOSURES
ABOVE THE OCCUPATIONAL EXPOSURE
LIMIT (OEL)
In a thousand exhibitions
TOTAL ACCIDENT RATE
(per 1 million hours worked)
23
20.7
17.9
17
15
15.6
13.7
Exposure
Target
3.48
12.4
11.5
2.25
1.98
1.41
2019
2020
2021
2022
2023
2024
2025
2018
2019
2020
2021
Note: The target data for 2022 is under analysis in the first quarter of 2022.
Note: The number of exposures is calculated by adding the number of
exposures above the Occupational Exposure Limit (OEL) that occurred at
Vale Global in the year in question;
The rationale for defining the reduction curve was to consider the goal
of reaching 11.5 thousand exposures in 2025. From this, a curve was made
that reduces more in the first years than in the last ones.
REDUCTION OF HIGH-POTENTIAL
RECORDABLE INJURIES
63
N2
Target
35
25
66
57
44
29
15
10
5
0
2018
2019
2020
2021
2022
2023
2024 2025
The targets associated with our strategic objectives
to reduce risks to health, safety and operations
are one of the criteria we use to set Vale's variable
compensation levels. In case of a fatality, the
indicators of health, safety, and risk management for
that operation are reset to zero and there is no bonus
in health, safety, and risk management targets.
Vale measures and analyzes health, safety and
operational risk indicators following routine
management. We also perform periodic internal
audits with independent auditors, based on risk
criteria defined according to the nature of the
activities and the maturity level of the Health and
Safety management system. Non-conformities
identified are registered in a system that results in
developing and monitoring action plans, as well as
reporting to Vale's senior management.
Human Capital
1. Occupational Health and Safety
2. Covid-19
3. People
4. Diversity, Equity and Inclusion
88
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Covid-19
Since 2020, we have donated more than USD 153
million to governments and institutions in Brazil
and abroad for Covid-19 related humanitarian
aid actions. In 2021, we supported the Butantan
Institute (Brazil) in the expensing works of
the Multipurpose Vaccine Production Centre,
which will have a production capacity of up
to 100 million doses per year, and we donated
50 million syringes and 400,000 pieces of
personal protective equipment (PPE) to protect
professionals on the vaccination front line. The
Vale Technology Institute, in partnership with the
Fiocruz Network, is collaborating to produce of
genomes of the SARS-CoV-2 virus.
Reinforcing the solidarity actions, we joined other
companies in the donating of intubation drugs,
totaling 3.7 million analgesics, sedatives and
neuromuscular blockers imported from China.
These were all donated to the Brazilian Federal
Government for subsequent distribution to the
states through the Unified Health System (SUS in
Portuguese).
In a concerted aim to ensure the health and
safety of its employees, Vale has remained
on high alert in Covid-19 prevention in all the
countries where we operate. Since March 2020,
we have transitioned a significant number of
employees to the home office regime as part of
efforts to mitigate the spread of Covid-19. We
have also implemented other social distancing
measures, including shifts in operational areas,
restrictions on face-to-face meetings, testing
protocols, among others.
Screening for access to operational areas was
implemented in the units globally, and an
application to track proximity between people in
case of need contact tracing was implemented
in several of them. In Brazil, Indonesia, and
Mozambique, the screening process included
periodic testing of the workforce using thousands
of serological or rapid antigen tests.
Employees identified as being at higher risk of
developing the severe form of the disease were
removed from operations and remained at home
on full benefits awaiting vaccination before
returning to work sites. As of January 2022, proof
of complete Covid-19 vaccination is a mandatory
requirement for own employees, contractors, and
visitors to our Brazil locations.
Learn more
About Vale's crisis
response plan.
Human Capital
1. Occupational Health and Safety
2. Covid-19
3. People
4. Diversity, Equity and Inclusion
Humanitarian action to fight hunger
The pandemic has also aggravated hunger, endangering the food security and
nutritional status of millions of people in Brazil and around the world. Given
this scenario, Vale, the Vale Foundation and the Vale Voluntary Network joined
forces with organizations that work to fight hunger in Brazil, such as Full Pot
Movement (Movimento Panela Cheia), which was formed by Cufa, Gerando Falcões
and the National Anti-racist Front, the Rio Union Movement and Citizeship
Action (Movimento União Rio e Ação da Cidadania), among others. Together they
delivered more than one million staple food baskets/food cards to more than
220,000 families in a situation of severe food insecurity in 2021.
Mothers of Vila Nova
(Mães de Vila Nova) Benefit
Association, in São Luís,
Maranhão, during the
distribution of basic food
baskets of Citizenship
Action (Ação da Cidadania),
one of the campaigns
supported by Vale during
the pandemic
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People GRI 103-2, 103-3
TALENT ATTRACTION AND RETENTION
Under the recruitment strategy concept,
implemented in 2020 and guided by the Vale's
integrated management system (VPS), the
company seeks to attract and retain talent
that is aligned with its purpose, its cultural
transformation, and its commitment to promote
diversity, equity, and inclusion. Its practices involve
everything from focusing on the candidate's
experience to using artificial intelligence to
assertively search profiles. The global expansion of
this model began in 2021, starting in Canada.
The relationship with employees is guided by Vale's
Code of Conduct, labour legislation, the eight
Fundamental Conventions of the International
Labour Organization (ILO), and by the guidelines
of the Organization for Economic Cooperation and
Development (OECD). GRI 102-8
EMPLOYEES AND CONTRACTORS
WORKFORCE GRI 102-7, 102-8
BY BUSINESS UNIT
- CONTRACTORS
BY GEOGRAPHIC LOCATION
– EMPLOYEES
Year
Employees
Contractors
Total
2017
2018
2019
2020
2021
73,596
70,270
71,149
74,316
72,266
56,979
130,575
54,644
124,914
Number of
Contractors
Ferrous
Coal
2021
2020
Number of employees
2021
2020
46,327
34,042
Brazil
55,067
58,249
7,416
6,076
South America (ex-Brazil)
153
190
78,143
149,292
Base Metals
15,207
10,395
North America
111,921
186,237
Energy
-
-
Europe
141,147
213,413
Corporate
27,690
26,877
Asia
Capital and
decommissioning
projects
Total
44,507
34,531
Oceania
141,147
111,921
Africa
Total
6,448
6,169
279
293
4,382
4,454
10
1,263
5,927
3,698
72,266
74,316
BY GEOGRAPHIC LOCATION
– CONTRACTORS
BY BUSINESS UNIT
– EMPLOYEES
Number of contractors
2021
2020
Number of Employees
2021
2020
TURNOVER RATE*
2021
2020
Brazil
114,757
90,877
South America (ex-Brazil)
113
140
North America
4,311
4,617
Ferrous
Coal
Base Metals
Fertilizers
Energy
Corporate
44,235
44,342
5,492
3,320
12,903
13,762
-
-
8,261
-
3.954
7,914
General
By gender
Men
Women
8.2%
10.7%
7.0%
9.3%
14.5%
19.7%
*The turnover rate is calculated based on data from Vale and
its subsidiaries. Its formula is [(No. of employees who left the
company + No. of employees hired) ÷ 2] ÷ No. of employees in
the previous year. GRI 401-1
Capital and
decommissioning projects
1,375
1,024
133
109
9,613
7,964
6
198
12,214
8,016
141,147
111,921
Total
72,266
74,316
Europe
Asia
Oceania
Africa
Total
Human Capital
1. Occupational Health and Safety
2. Covid-19
3. People
4. Diversity, Equity and Inclusion
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COLLECTIVE BARGAINING AGREEMENTS
GRI 102-41 | 407-1
In 2021, 100% of the employees in Brazil were
covered by collective agreements with trade
unions. Considering all the countries where
Vale operates, the percentage was 92% for
its own employees. In Brazil, 46 Collective
Labour Agreements were signed, with 13 trade
unions, most of which were for benefits, salary
readjustment, working hours and profit sharing.
In the period, the company's proposed offer
to production and maintenance employees
in Sudbury, Canada, for a new five-year
collective agreement was rejected, despite
unanimous endorsement of that agreement
by the union's bargaining committee. The
event resulted in a shutdown of Sudbury
operations, for approximately two months,
and Vale continued negotiations until a new
agreement was ratified in August 2021.
Four cases of risk or incidents were identified
in which the right to exercise freedom of
association and collective bargaining may
have been violated. These cases occurred in
operations in the VNL - Newfoundland and
Labrador Vale region - and corrective measures
were adopted according to the procedures
provided for in the collective agreement.
PHOTO: GUSTAVO BAXTER
COMPENSATION
GRI 102-36 | 103-2, 103-3 | 201-3 | 202 | 405-2
Vale's compensation adheres to the legislation of
each country where it operates, and variations may
occur due to employees’ seniority and maturity
levels. With regard to base wages, there are no
differences between men and women performing
the same job. In addition, Vale does not deduct or
restrict compensation that could lead the worker to
be in debt with the company. GRI 405-2
For more information about the indicator, access the
ESG databook.
Also, according to each country's legislation, the
following benefits are assured but may vary: medical
and dental assistance; life insurance; private pension
plan; personal accident insurance; transportation
allowance; educational training; food allowance; and
employee assistance program.
In 2021,
the turnover rate
was 8.2%
In the photo (left
to right), Dayanne
Priscila Silva and Vera
Araujo, at Mutuca
Mine in Nova Lima,
Minas Gerais, Brazil
Vale respects the freedom of association and
collective bargaining, and in all the countries
where we operate, we strive to maintain good
relations with trade unions or, in countries where
this right is not assured by local legislation, with
equivalent worker organizations. The company
seeks to resolve conflicts through dialogue and
continuous meetings with representatives of
these associations. Since 2005, employees have
been electing a member of the Board of Directors
and the respective alternate by direct vote.
Elections are conducted jointly by the company
and the unions.
As expressed in Vale's Code of Conduct and Global
Human Rights Policy, all employees are free to join
labour unions or equivalent workers' organizations.
Human Capital
1. Occupational Health and Safety
2. Covid-19
3. People
4. Diversity, Equity and Inclusion
91
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SUCCESSION PLAN
Succession planning is a lever to generate
opportunities, retain talent, and also to
develop behaviours aligned to our culture. To
this end, we have been counting on our Global
Talent Review program since 2019, through
which we discuss and continuously monitor
the career, development and readiness of
successors who will be needed - mainly for
critical positions - in the short, medium and
long term, in order to ensure to business
continuity.
In 2021, we found options for successors for
99% of our critical positions for the short,
medium, and long term. Developing successors
and getting them are ready to assume new
roles in the responsibility of our leaders and a
key element of the VPS management model.
The assurance of an assertive succession line
for jobs and positions has become part of
executive compensation targets.
The People, Compensation and Governance
Committee monitors the succession planning
of the top leadership through quarterly
meetings on the topic, always reporting to the
Board of Directors.
TRAINING GRI 103-2, 103-3 | 404
Vale's Corporate University (Valer) has structured a
portfolio of training and development actions for
technical, management and leadership skills aligned
with the company's strategies such as safety, Vale's
integrated management system (VPS), risk management
and sustainability. More recently, Valer has been
preparing employees and leaders to work in new
ways that promote greater agility, collaboration and
integration, and has also supported the digital inclusion
strategy by developing a digital training program for
operational employees. The Vale Institute of Technology
has two courses recognized by Coordination for the
Improvement of Higher Education Personnel (CAPES
in Portuguese): a Professional Masters in Sustainable
Use of Natural Resources in Tropical Regions and a
Professional Masters in Instrumentation, Control and
Automation of Mining Processes.
In 2021, in line with the commitment to employee
safety, work began to review the technical-operational
training model, through which diagnosed and trained
were directed to employees in critical functions. About
4,000 of the 17,000 employees in these functions in
Brazil were diagnosed as needing better training for
technical competencies, aiming to strengthen accident
prevention and operational excellence. The Entry
Gates program (Portas de Entrada in Portuguese) was
also implemented, focusing on the learning journey of
interns, young apprentices, professional trainees, and
global trainees.
PHOTO: GUSTAVO BAXTER
Employees of the
Mutuca Mine, in
Nova Lima/ Minas
Gerais
AVERAGE HOURS OF TRAINING GRI 404-1
AVERAGE HOURS OF TRAINING IN 2021 (ANNUAL AVERAGE BY FUNCTIONAL CATEGORY)
Functional Category
Leadership
Specialist
Technical-Operational + Staff
Hours
58
42
77
Human Capital
1. Occupational Health and Safety
2. Covid-19
3. People
4. Diversity, Equity and Inclusion
92
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GRI 103-2, 103-3 | 405-1
The result of this survey will help us map gaps
and implement actions that adherent more
closely to our needs, to build a more fair and
inclusive company. Below are the results of the
Brazil’s census, considering a total of 53,391
employees.
LGBTQIA+ Pride - Jailson Sá Santana,
process technician.
Our diversity, equity and inclusion strategy aims to
strengthen a culture that promotes and values an
inclusive environment and addresses the challenges
mapped out through affirmative policies. Since
2019, we have been addressing structured initiatives
to create working conditions and opportunities that
promote representation related to gender, race, and
people with disabilities, among other fronts.
In 2021, our priority focus involved the preparing the
Vale Diversity Census, to understand our challenges,
and reviewing processes and systems, as well as
initiatives to strengthen a culture oriented toward
the promote diversity, equity and inclusion.
VALE DIVERSITY CENSUS
In 2021, Vale conducted its first diversity
census, covering operations in Brazil and
Canada. In Brazil, about 68.5% of the company's
own employees participated voluntarily and
confidentially, making self-declarations about
how they see themselves and how they perceive
the work environment at Vale.
RACE TOTAL
52.5%
0.4%
2.4%
2.0%
11.5%
31.2%
Brown
White
Black
Yellow
Not informed
Indigenous
2.3%
RACE BY GENDER
n
e
m
o
W
n
e
M
46%
9.3%
38.9%
3.3%
0.2%
1.9%
54.2%
12.1%
29.2
2.2%
0.4%
In 2021, Vale conducted
its first diversity census
Human Capital
1. Occupational Health and Safety
2. Covid-19
3. People
4. Diversity, Equity and Inclusion
93
PHOTO: DANIEL DA COSTA GOMES MARTINS
PresentationGovernance and ComplianceFinancial CapitalNatural CapitalHuman CapitalIntellectual CapitalSocial CapitalManufactured Capital AssuranceCritical AnalysisCreditsValeGRI Index GENDER IDENTITY
0.4%
AGE GROUP BY GENDER
Men
Women
%
2
.
6
4
%
7
.
4
4
%
0
.
4
2
%
3
.
0
1
99.6%
%
2
.
2
%
2
.
0
PROFESSIONALS WITH DISABILITIES
BY FUNCTIONAL POSITION
EDUCATION BY GENDER
%
4
.
0
4
%
3
.
6
2
%
1
.
9
9
%
1
.
3
9
% PwD
% Non PwD
0.2%
0.4%
4.6%
32%
0.2%
0.2%
1.8%
12.7%
22.4%
%
4
.
4
%
3
.
1
%
4
.
0
%
3
%
4
.
0
%
6
.
3
%
1
.
0
%
3
.
0
Executives
managers
and above
31.3%
39.8%
Male and female
Transgender, non-binary/fluid,
prefer not to inform and others
Up to 21
years old
22 to 29
years old
30 to 39
years old
40 to 54
years old
55 years
or older
Staff
Supervisor
Manager/
Coordinator/
Technical
Specialist
AGE GROUP TOTAL
SEXUAL ORIENTATION
CURRENT EDUCATION
45%
Heterosexuals
Gay, lesbian,
bissexual and
others
Not informed
0.7%
13%
3.8%
37.5%
Up to 21 years old
40 to 54 years old
22 to 29 years old
55 years or older
30 to 39 years old
92.2%
36%
24.1%
20%
16.3%
Middle School
High School
Technical
University/Technologist
MBA / Post Graduation
Lato Sensu
Master Stricto sensu
Doctorate
Post Doctorate
19.8%
11.5%
21.9%
Post Doctorate
Doctorate
Master Stricto sensu
MBA / Post Graduation
Lato Sensu
University/Technologist
Technical
High School
Middle School
3.6%
4.2%
0.9%
2.2%
0.3% 0.2%
0.2%
1%
Women
Men
Human Capital
1. Occupational Health and Safety
2. Covid-19
3. People
4. Diversity, Equity and Inclusion
94
PresentationGovernance and ComplianceFinancial CapitalNatural CapitalHuman CapitalIntellectual CapitalSocial CapitalManufactured Capital AssuranceCritical AnalysisCreditsValeGRI Index GENDER EQUITY
Vale's goal was to double the
representativeness of women in its workforce,
from 13% to 26%, by 2030. In 2021, the company
announced it had brought the commitment
forward by five years, to 2025. During the year,
it reached 18.7% representation of women
globally, the equivalent of adding 4,400 women
to its workforce. At the top leadership level, we
reached 20.3% female representation, a 80%
increase compared to 2019, when the goal was
established.
PHOTO: GUSTAVO BAXTER
Amanda Francisca
Tenorio de Almeida
works at the PPE
Center of the
Paraopeba Complex,
Minas Gerais
PROFESSIONALS WITH DISABILITIES
In 2021, Vale made concentrated efforts to
ensure that 5% of our workforce is composed
of professionals with disabilities (PwDs). We
implemented the career acceleration program
with these professionals in mind. The pilot
edition included 25 professionals whose skills
were strengthened. In 2022, the program’s
approximately 500 vacancies will be offered to this
group of employees. It also remains a challenge to
include PwDs in leadership positions.
Learn more
About our commitment and initiatives in the
Diversity, Equity & Inclusion Report 2020/2021.
WOMEN BY FUNCTIONAL CATEGORY
PROPORTION OF WOMEN BY FUNCTIONAL CATEGORY GRI 405-1
2019
2020
2021
Increase
in
relation
to 2019
2019
2020
2021
%
2
.
8
3
%
8
.
6
3
%
8
.
3
3
Total women
9,050 11,443 13,488
49.0%
Staff
8,457 10,638 12,433
47.0%
Supervision
239
374
412
72.4%
Management
and
coordination
Executive
managers and
directors
329
397
598
81.8%
25
34
45
80.0%
%
4
.
3
1
%
2
.
1
1
%
7
.
8
%
5
.
3
1
%
7
.
2
1
%
9
%
3
.
4
2
%
3
.
0
2
%
8
.
8
1
Learn more
For more information on
diversity in governance
bodies and employees see
indicator 405-1 in the ESG
Databook.
%
2
.
0
1
%
6
.
5
%
8
.
3
Operational Technicians
Specialists
Supervisors
Managers
Directors
ETHNIC AND RACIAL EQUITY
From the census results, we identified that
Vale Brazil is made up of 64% black and
brown professionals and that we have a great
opportunity to expand this representation
in middle and senior leadership positions.
To this end, Vale has made the following
commitments:
COMMITMENTS TO ETHNIC AND RACIAL
EQUITY
• Achieve 40% of leadership in Brazil
(managers and above) made up of black
and brown people by 2026;
• Implement educational programs to
intensify the professional training
for black and brown people from the
communities where Vale operates;
• Strengthen anti-racist positioning.
Here, we highlight our 2021 Global Trainee
Program, which prioritized women and black
people. Of the 144 trainees hired, 66% (95
professionals) were black and brown and 68%
were women. In addition, in partnership with
companies from various sectors, Vale has
joined movements and indices that aim to
implement and measure the effectiveness of
actions to correct social inequalities within
Human Capital
1. Occupational Health and Safety
2. Covid-19
3. People
4. Diversity, Equity and Inclusion
95
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Paulo Luiz Franco and his son
Ebrain Pereira, in a cassava and
vegetable plantation at Casa da
Hora, in the Vila Nova community,
one of the communities that Vale
is engaged with in Parauapebas,
Pará/Brazil
Social
and Relationship
Capital
Vale | Integrated Report 2021
E
D
N
E
Z
E
R
E
R
D
N
A
X
E
L
A
:
O
T
O
H
P
96
1. Social Ambition
2. Human Rights
3. Indigenous Peoples and Traditional
Communities
4. Local Communities
5. Private Social Investment
6. Suppliers and customers
7. Stakeholder Engagement
PresentationGovernance and ComplianceFinancial CapitalNatural CapitalHuman CapitalIntellectual CapitalSocial CapitalManufactured Capital AssuranceCritical AnalysisCreditsValeGRI Index
Apresentação
A Vale
Visão Global
Governança Corporativa
Desempenho e resultados
Capital Financeiro
Capital Natural
Capital Humano
Capital Intelectual
Capital Social
Capital Manufaturado
Análise crítica
Sumário GRI
Créditos
SOCIAL AND RELATIONSHIP CAPITAL
We have defined our social
ambition: “To be a partner
company in the development
of resilient communities,
engaged in relevant issues to
humanity and committed to
sustainable mining”
53%
of total
purchases
destined for
purchases
local
18 thousand
companies in
Vale's supply chain
INVESTMENTS THROUGH
THE LAW OF CULTURE INCENTIVE
In BRL million
350
300
250
200
150
100
50
301
121
55
2019
2020
2021
The largest company that has
encouraged culture in the country
in the last 3 years, according to
the investment ranking of the
Federal Law for Cultural Incentive
CUSTOMERS
With regard to our
Scope 3 emissions,
engaged customers
represent approximately
30% of global steel
production and about
40% of global emissions
HUMAN RIGHTS
100% of the company's
operations with human
rights risk analysis
SOCIAL EXPENDITURES
USD 473.5 million
destined mainly for:
urban infrastructure and
mobility, culture, health,
and social protection,
73% with own resources
and 27% through
incentive laws.
RELATIONSHIP WITH
COMMUNITIES
Relationship with
2,092 local communities,
29 Indigenous Peoples,
and 57 Traditional
Communities.
INVESTORS
Dividends of BRL12.60/share
paid to shareholders and
repurchase of
approximately 6% of
company's shares.
COMMUNITY GRIEVANCES
Total: 11.069
Answered
Attended
98.9%
82.7%
The main issues were
support for social
projects (1,316), access,
roads and routes
(1,200), and involuntary
resettlement (862).
Social Capital
97
97
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School reinforcement activity for
elementary 1 and 2 students at Aracy
Novais Municipal School, in Santa
Bárbara, Minas Gerais. The project is a
partnership between Vale and the NGO
Juventude Viração. In the photo, teacher
Ana Paula de Oliveira with student
Izabelly Aparecida Rodrigues Santos.
Social Ambition
"To be a partner company in
the development of resilient
communities, engaged in relevant
issues to humanity and committed to
sustainable mining."
By launching our social ambition, together we
want to:
• Develop solutions with suppliers, customers
and partners, in order to generate a sustainable
mining cycle.
The design of this ambition is the result of work
that involved stakeholder engagement, an analysis
of the social context in the countries where we
operate, and benchmark studies.
• Promote resilient communities by supporting
sustainable development in the territories where
we operate;
•
• Ensure and disseminate the practice of business
"We have a history of social engagement and
support and a relevant role in the places where
we operate, but we want to do more. For this,
we consider it our social ambition to be a partner
that enables the development and autonomy of
the communities with which we relate, based on
the education-health-income tripod."
Eduardo Bartolomeo, CEO
and human rights;
• Contribute to greater social justice by
implementing education, health, and income
generation projects;
• Appreciate cultures and respect and promote
the rights of Indigenous peoples and Traditional
Communities;
• Ensure that our actions generate social and
environmental value and promote effective,
positive post-mining legacies.
"We want to articulate alliances and
partnerships involving companies,
governments and the voluntary sector
around structuring actions and programs for
the communities where we operate"
Maria Luiza Paiva, Vale Executive Officer of
Sustainability
2030
Commitments
• Perform Top
3¹ in major
external
assessments
of sustainable
mining,
in social
requirements.
• To lift 500,000
people out
of extreme
poverty.
• Indigenous
communities
neighboring
all Vale
operations
with UNDRIP²
rights plans.
1 MSCI, Sustainalytics
and DJSI. At least 3rd
position in the sector
in all of them.
2 UN Declaration on the
Rights of Indigenous
Peoples
Social Capital
1. Social Ambition 2. Human Rights
3. Indigenous Peoples and Traditional Communities
4. Local Communities
5. Private Social Investment
6. Suppliers and customers
7. Stakeholder Engagement
98
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Due to the inherent characteristics of its activities
and the extractive sector where it operates,
Vale recognizes that there are several challenges
related to respect for human rights in its activities
and throughout its value chain.
The topic is contained in the Integrated Risk Map,
as well as in Vale's Risk Management system.
To guide its actions, the company has a Global
Human Rights Policy, aligned with international
initiatives and standards such as the UN Guiding
Principles on Business and Human Rights, the
UN Global Compact, the Universal Declaration of
Human Rights, the principles and guidelines of the
International Council on Mining and Metals (ICMM)
and the International Finance Corporation (IFC)
Performance Standards, among others.
A specific front was also developed to train human
rights multipliers in the operations, with more
than 200 employees trained by 2021. In addition,
more than 3,200 hours were dedicated to specific
training on human rights and corporate security,
according to the Voluntary Principles on Security
and Human Rights, covering 80% of the total
workforce. GRI 410-1.
HUMAN RIGHTS RISK MANAGEMENT
100% of Vale's operations* have assessed the risk
of human rights violations and monitored them
periodically along with other business risks. In
addition, our operations have adopted prevention
and mitigation control measures for these risks
and conducted tests to ensure their effectiveness.
GRI 412-1
In 2021, Vale trained 74,000 people via the two-
hour online course that is mandatory for all its
own employees, totaling 111,000 hours of training.
For contractors, a video training program was
provided focusing on the main human rights
issues. GRI 412-2.
Human rights risk assessment at Vale involves
analyzing critical issues such as degraded
working conditions and modern slavery, child
labour and sexual exploitation of children and
adolescents, violations in work relations, large-
scale human rights violations.
In these assessments, we gauge the probability
of a risk’s occurrence and the severity of its
impact. From there, we develop and implement
action plans and monitor their progress to
reduce the exposure of people and company
to risks. On a quarterly basis, our risks are
monitored by the Risk Committee and reported
to all levels of the company, including the Board
of Directors.
For critical issues, such as forced labour,
child labour, sexual exploitation of children
and adolescents, and human trafficking, risk
management processes are determined at all life
cycle stages of Vale's ventures. We also mitigate
these risks through an ongoing engagement
process with our communities, and partnerships
with Childhood Brasil and InPacto that help us
take preventive and mitigating action.
In 2021, there were no records or allegations of
occurrences of child or slave labour involving
Vale's operations, however we recognize the
fragility of the theme in our value chain and we
are acting to minimize these impacts. GRI 408-1 |
409-1
Social Capital
1. Social Ambition
2. Human Rights 3. Indigenous Peoples and Traditional Communities
4. Local Communities
5. Private Social Investment
6. Suppliers and customers
7. Stakeholder Engagement
*Considers as operations the risk management areas that
contemplate the Company's business.
"What I see, both from the impact
of mining and other impacts from
other ventures that arrive in the
neighbourhood (Jardim Canadá,
Nova Lima/MG – Brazil), is that they
bring many people along with them,
outsiders, who don't have this idea
of belonging to the community. So
they come with their families, stay
here for a while, and many go away
and leave their families. I also see the
issue of vulnerable young people and
children, because there are usually
many lodging facilities housing males,
and the girls hang around there,
thinking about getting some affection
because their father abandoned
them, looking for some money to buy
something, and I see the enticement
of these adolescents is very strong....
this saddens the neighborhood. I
know that progress exists and that it
is coming, but I also know that with
good things come bad things for the
neighbourhood."
Jaquelline Pinto, representative of the
Transformar Social Space and a resident
of Jardim Canadá for over 20 years.
Learn more
Watch the
testimonial.
99
PresentationGovernance and ComplianceFinancial CapitalNatural CapitalHuman CapitalIntellectual CapitalSocial CapitalManufactured Capital AssuranceCritical AnalysisCreditsValeGRI Index1. Social Ambition Due diligence
in human rights
In 2021, Vale committed to conducting external due diligence
in human rights for all its operations and critical projects
in three-year cycles, using a methodology aligned with
international human rights standards. During the year,
12 operations out of a total of 42, and two projects were
contemplated*. Moral and sexual harassment were relevant
human rights violation risks identified in all due diligence
performed. As a result, action plans are elaborated to
address the risk situations that are considered critical and
are monitored periodically (at least quarterly).
With regard to Vale's suppliers, human rights management
involves several stages, from certification, registration,
selection and contracting to contract management and
supplier development and training. In the period, we
assessed 100% of our supplier base with active contracts
in Brazil for risk of human rights violations. We also
conducted in-person due diligence processes, which
identified risks related to overtime management. The
suppliers that present a higher degree of risk are engaged
in several ways, including the monitoring of action plans for
the treatment of deviations, meetings on Human Rights
and sharing of good practices.
Learn more about Vale's Human Rights management.
25 Considers the grouping into operations performed for internal due
diligence control. The total number of enterprises may vary from
one year to the next due to the other due to merger and acquisition
processes, sale and new projects.
Iretuk Xikrin, in
the Catete village
(Indigenous Land
Xikrin do Catete)
PHOTO: RAFAEL SCHERER
Indigenous
Peoples and
Traditional
Communities
GRI 103-2, 103-3 | MM5
Vale’s relationship with Indigenous Peoples and
Traditional Communities is based on our respect
for cultural diversity and for the rights of these
populations. We recognize the different connection
that they have with the territory, which involves
not only physical and socio-economic aspects, but
also cultural and spiritual aspects. Our relations are
guided by Vale's Global Human Rights Policy, which
is aligned with leading national and international
references and legislation related to the topic. In
addition to our commitment to build a constructive,
mutually beneficial relationship, we make managing
risks and their impacts on these populations a
priority.
Currently, the company has relationships with 29
Indigenous Peoples, 13 in Brazil and 16 in other
countries, in addition to 57 Traditional Communities
in Brazil. The team responsible for conducting
this relationship is made up of professionals
dedicated to each people/community who have
multidisciplinary backgrounds and consistent
experience in Indigenous relations. They are
dedicated to acting in these territories and to
Social Capital
1. Social Ambition
2. Human Rights
3. Indigenous Peoples and Traditional Communities
4. Local Communities
5. Private Social Investment
6. Suppliers and customers
7. Stakeholder Engagement
100
100
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forging permanent relationships with these
populations.GRI G4 MM5
In addition, Vale qualifies the employees and
suppliers who interface with these populations
in areas impacted by its operations, to maintain
consistency in our dealings in the various territories
and to hold a qualified dialogue with these
stakeholders.
In a aim to favour a solid relationship of partnership
and trust, we also implement programs and
voluntary agreements, built collaboratively with
these populations, considering their cultural and
territorial specificities.
Withdrawal of all mining processes
on Indigenous lands
Vale does not conduct any mineral research or mining activities on Indigenous lands
in Brazil, and had already declined 104 mining processes, between 2019 and 2021.
In 2021, Vale gave up all mining processes on Indigenous lands in Brazil, as a result
of the understanding that mining on Indigenous lands can only be carried out with
the free, prior and informed consent (FPIC) of the Indigenous people themselves and
legislation that regulates this activity.
Recognition of FPIC is critical to address the rights of Indigenous peoples to
determine their own development and their right to exercise self-determination
over decisions concerning their territories.
STRATEGIC INITIATIVES WITH
INDIGENOUS PEOPLES
Our company’s planned voluntary action fronts
involve:
• Preservation of Cultural Memory;
• Indigenous Protagonism;
• Sustainable Programs.
In 2021, we will start developing projects focused
on methodologies to preserve Indigienous cultural
heritage with the Xikrin do Cateté, Awá, Guajajara
and Ka' apor Peoples, through the Cultural Institute.
Another prominent initiative was establishing
the Indigenous Program for Permanence
and Opportunities at the University (PIPOU
in Portuguese), which aims to contribute to
the higher education of Indigenous People
in partnership with non-governmental
organizations, experts in Indigenous higher
education and representatives of the Indigenous
movement. In 2021, 50 Indigenous people were
awarded scholarships and infrastructure support.
"It is very complicated for us indigenous people
to remain in university, this project is essential
to help, I am very happy to be contemplated by
the project"
Juliana Porang (Juliana Coutinho Cabidelli),
indigenous of the Tupiniquim Guarani Indigenous
Land, Medicine student at the University of
Brasilia
We also support the National Plan to Fight Covid-19
in Indigenous Territories, which have been deeply
affected. Equipment was acquired for all 34
Indigenous health centres in Brazil (100% coverage).
The initiative aims to make telemedicine services
available to the Indigenous people and will bring
them consultation within the villages, avoiding the
need to travel to large centres.
In 2021, we established the
Indigenous Program for Permanence
and Opportunities at the University
Learn more
About our work
on this topic.
Social Capital
1. Social Ambition
2. Human Rights
3. Indigenous Peoples and Traditional Communities
4. Local Communities
5. Private Social Investment
6. Suppliers and customers
7. Stakeholder Engagement
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In the photo, chief
Zeca Gavião, right,
with Mathias (Hàraxàre
Krokti Konxart), from
the Kyikatejê village
"Today I recognize that if we
can have this condition of living
the way we want to, to be able
to eat meat, fish, you were
also part of it. I would like to
recognize, despite our fights,
our struggles, that you were
part of this. Our focus is to
invest, always thinking about
the future. And I recognize
that Vale was part of it
together with us. Through the
agreement we found a result."
Pepkrakte Jakukreikapiti Ronore
Konxarti (Zeca Gavião), Chief of
the Kyikatejê Village, Indigenous
Land Mãe Maria - Pará/Brazil.
Indigenous Peoples and the Onça Puma Nickel Mine in Brazil
Vale's relationship with the Xikrin do Cateté
peoples began in the 1980s. On the one
hand, the relationship benefitted from
infrastructure improvements made by Vale
through voluntary agreements; on the
other hand, associations representing these
peoples and Brazilian public authorities
allege that our operation has had a negative
impact on the health of the communities
near the Onça Puma Nickel Mines.
negotiations, and deliberations for the
construction of a global agreement that
would put an end to all lawsuits in which they
are parties.
About Indigenous
Peoples and the
Onça Puma Mine.
Learn more
In December 2021, the Xikrin Associations and
Vale entered into an out-of-court agreement
to terminate the lawsuits, which was
presented to the Federal Civil Court Judge of
Redenção (Pará state) for acknowledgement
and ratification, which occurred on March
07, after recognition of validity declared in
a positive opinion presented by the Federal
Public Prosecution Office .
Since 2017, Vale has sought to dialogue
with the peoples involved, with the Federal
Public Prosecution Office and with all the
stakeholders involved, contributing to the
implementation of several actions, including
the judicial investigation that issued reports
not confirming the impacts indicated. In
2020, Vale, Federal Public Prosecution and
the Xikrin do Cateté and Kayapó indigenous
peoples reached a preliminary agreement
which culminated in the suspension of the
lawsuit filed by the Federal Public Prosecution
Office and/or the Xikrin Associations. In
2021, Vale made progress in the dialogue,
Local Communities
GRI 103-2, 103-3 | 413-1
In March 2022, the Kayapó and Vale
Associations also entered into an out-
of-court agreement to terminate the
lawsuits in which they are parties, which
was submitted to the Federal Civil Court
Judge of Redenção for cognizance and
ratification, with a favorable opinion from
the Federal Public Prosecution Office
and recognition of the validity of the
adjustment.
The activities of Vale and the mining sector
in general involve social impacts on several
fronts, including risks related to the safety
of communities surrounding the company's
operations, conflicts arising from involuntary
resettlement and land use, and conflicts with
Indigenous Peoples and Traditional Communities,
among others.
Since 2020, we have adopted community
relationship standards globally which compel us to
identify, engage and monitor our relationship with
these stakeholders.
Vale currently has 2,092 local community
relationships mapped, of which 1,304 are in
Brazil, 80 in Canada, 355 in Mozambique, 163 in
Malawi, 47 in Peru, 27 in Oman, 110 in Indonesia
and 6 in Malaysia. To engage them, Vale seeks to
establish structured spaces for dialogue to build
our Community Relationship and Investment
Plans. These plans will be based on the principle
of mobilizing the communities to participate in
our efforts to define and prioritize actions that
we will implement in their territory.
Social Capital
1. Social Ambition
2. Human Rights
3. Indigenous Peoples and Traditional Communities
4. Local Communities
5. Private Social Investment
6. Suppliers and customers
7. Stakeholder Engagement
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PresentationGovernance and ComplianceFinancial CapitalNatural CapitalHuman CapitalIntellectual CapitalSocial CapitalManufactured Capital AssuranceCritical AnalysisCreditsValeGRI Index By 2021, in Brazil, we had 411 priority
communities in Brazil to engage, out of a total
of 1,304 communities, distributed among
130 municipalities. In the period, 69% of the
communities were covered by Relationship and
Investment Plans.
GRIEVANCE MECHANISM
GRI 102-34, 103-2, 103-3
Vale's Grievance Mechanism is composed
of several listening channels, which are the
structures responsible for managing community
manifestations. These channels (phone, letter,
email, among others) provide different means
through which stakeholders can contact and
interact with the company. In addition, our
Grievance Mechanism is governed by human rights
guidelines and complies with the General Data
Protection Law.
In 2021, 11,069 community manifestations were
registered, of which we answered 98.9% and
fulfilled 82.7%. The main issues were related
to support for social projects (1,316); access,
highways and roads (1,200); and involuntary
resettlement (862). These figures do not include
the manifestations captured by the Service Centre
reported in the Reparation in Focus/Brumadinho
chapter.
Learn more
About Grievance
Mechanism.
Relationship with the community of Piquiá de Baixo
The Piquiá de Baixo community, located
in the Açailândia Chemical Industrial Park
in the state of Maranhão, claims that it
is impacted by pollution caused by steel
mills installed at the site over 30 years
ago. Vale does not own any pig iron mills in
Açailândia, but it acts as the main supplier
of Iron Ore used to produce steel.
In line with its social performance
guidelines, the company has supported
initiatives such as preparing a socio-
economic diagnosis of the families located
in the region in question, and formalizing a
partnership between the Vale Foundation
and the Piquiá Community Association
with the Caixa Econômica Federal Bank, to
help construct 312 houses to create a new
neighbourhood for the community.
ABOUT VALE’S NEW INVESTMENTS
IN PIQUIÁ
Sensitive to the cause, to the history of
claims and with the goal to build a positive
legacy, Vale is increasing its contribution to
the sustainable development of the Piquiá
community. The new investments – which
are divided into four areas described below
– are the result of the company's constant
dialogue with the community and are part
of the steering committee's plan created
by the City Hall of Açailândia that aims to
ensure more infrastructure and quality of
life for the Piquiá community.
In the housing area, Vale is making a
financial contribution totaling more than
USD 8 million, to facilitate and guarantee
the conclusion of works on the new Piquiá
da Conquista neighbourhood. Construction
will include 312 housing units, including
basic sanitation, proper public lighting
and infrastructure items. About 43% of
the construction on the houses has been
complete.
In the environmental area, a set of actions
is underway to mitigate the emission of
particulates during the road transportation
of Iron Ore by paving the Açailândia
yard and access roads. This includes
articulation with plants installed in the
region to comply with legal and market
environmental standards.
At the social and institutional level, Vale
is investing in preparing a participative
plan for socio-economic development in
Piquiá, which will be used as a blueprint
for collaborating with public authorities
to improve local infrastructure, such as
proper rainwater drainage in the region.
Vale is also conducting social projects
aimed at income generation, education
and health in the region.
Social Capital
1. Social Ambition
2. Human Rights
3. Indigenous Peoples and Traditional Communities
4. Local Communities
5. Private Social Investment
6. Suppliers and customers
7. Stakeholder Engagement
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Vale is reviewing the ways in which its activities
impact society. One of the vectors of this review
includes community safety, which involves
mitigating the risk to people's physical integrity that
Vale's presence in the territories may present.
The challenge of enhancing our safety approach
is extending risk and impact management to our
communities. In this context, we are implementing
a structured process to improve community
safety, which will include executing preventive
actions, responding to occurrences, performing
crisis management, and investigating events as
well as implementing actions to mitigate the risk
of their recurrence. The direct participation of the
communities in the process is evolving to become
larger and larger.
Vale assumed the practice of recording events
regardless of guilt or responsibility, transforming
the analysis of these occurrences into learning
that informs our actions to continuously improve
operational safety to protect our communities. This
practice demonstrates the way Vale is evolving to
understand its role as an agent for transformative
change in the territory.
PHOTO: GUSTAVO BAXTER
Desembargador
Drumond Railroad
Station, in Nova Era,
Minas Gerais
In 2021, 49 people died and 126 people were injured
due to events associated with Vale's presence in the
territory, representing an increase of 48% and 103%,
respectively, over the previous year.
For 2022, reducing safety events that result in injury
to community members represents 5% of the total
variable compensation of all company leadership.
The reduction of safety events
with the community will represent
5% of the variable compensation
of all leadership
Coal transport derailment
in Moatize
Despite our efforts to ensure the
communities’ safety wherever we
operate, in October 2021, a train
transporting coal from Vale's mines
in Moatize to the port of Nacala,
derailed in northern Mozambique.
The coal cars overturned onto the
ground and into the Namutimbua
River, causing the fatalities of two
children, in addition to seriously
injuring two victims and lightly
injuries to eight, totaling twelve
victims.
As immediate measures, we
provided medical assistance to
the victims at the Cuamba District
Hospital and transferred victims
in serious condition to another,
more structured hospital. We also
assigned social monitors to the
accident site.
To support the families, we
provided emergency social aid to
those who lost loved ones and
those whose family members
were in serious condition and
provided psychological support to
the victims and relatives of those
who lost their lives.
In this occurrence, among
the lessons learned was the
importance of making decisions
quickly to mobilize all the
necessary resources for the
victims and their families to
receive the best care available,
according to the severity of the
cases. The event also influenced
the definition of criteria for
immediate support (to victims
and their families) in emergency
situations. Besides promoting
improvements in the operational
procedures of permanent way
maintenance and preventive
monitoring controls.
Social Capital
1. Social Ambition
2. Human Rights
3. Indigenous Peoples and Traditional Communities
4. Local Communities
5. Private Social Investment
6. Suppliers and customers
7. Stakeholder Engagement
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GRI 103-2, 103-3 | G4 MM9
Vale is committed to ensuring that the
Involuntary resettlement process provides
the restitution of livelihoods in conditions
equivalent to or better than those prior,
which requires, among other measures, the
replacement of impacted land, housing and
economic activities. The process adopted by
Vale follows the guidelines from international
organizations such as the International
Finance Corporation – IFC, the World Bank,
the United Nations – UN, and the International
Council on Mining and Metals – ICMM.
In 2021, 805 families were involved in
Involuntary Resettlements in Brazil. Of this
total, 572 families are being assisted due to
dams decharacterization works in Minas Gerais.
On the Vitória-Minas Railroad, a dialogue was
conducted to agree on measures to assist
families living in the railroad's easement strip, in
the municipalities of Antonio Dias, and Nova Era,
in Minas Gerais. Even though this represents an
eviction from a company-owned area, support
is being provided to the 34 vulnerable families to
obtain new housing and restore their livelihoods
in a new location. On the same railroad, Vale has
carried out studies to promote the involuntary
resettlement of 161 families to duplicate and
modernize the railroad stretch in Belo Horizonte.
Also in Minas Gerais, in the municipality of Itabira,
13 families were mapped for feasibility analysis for
involuntary resettlement due to drainage works in
the Pontal System.
In the north of Brazil, Vale carried out a social and
economic diagnosis to examine the reality of 25
families who will be served by the project to duplicate
the road-rail bridge over the Tocantins River in the
municipality of Marabá in the state of Pará.
In Bela Vista, where Mr. João lives, our commitment
is to avoid or minimize involuntary resettlements
necessary for the execution of the project. Mr. João
is one of the residents who was registered and
is waiting for a definition from the company. At
this moment we are discussing together with the
Public Defender's Office - that is accompanying the
process - the Specific Term of Commitment, that
sets the indemnity parameters. Once this stage is
completed - scheduled for May 2022, we will return
to negotiations with the 13 families living in the
Bela Vista neighborhood. Vale maintains a service
station in the neighborhood, available to attend
to the communities and clarify doubts about the
process.
In Mozambique, Vale has promoted public
consultations to resettle 96 farmers due to
the construction of a new pipeline to supply
the Moatize Coal Mine. In the same period, we
held public consultations to resettle another
Resettlement in Itabira
In 2021, Vale progressed in the planning for
decharacterizing the structures built by the
upstream method of the Pontal Dam, in
the Itabira Complex in Minas Gerais. Among
the projects is the decharacterization of
the Minervino and Cordão Nova Vista dikes.
Vale is seeking solutions to minimize the
involuntary resettlement of families due to
project implementation.
*In 2021 a socioeconomic survey was carried out for
Mr. João's family and 12 other families living in the Bela
Vista neighbourhood in Itabira that will be involved in an
involuntary resettlement process in 2022. The goal is to
prevent families from being impacted by the works of
drainage system improvoment in Vale's area.
805 families were
involved in involuntary
resettlement processes
in Brazil in 2021
PHOTO: GUSTAVO BAXTER
The resident
João Batista
Carlos
"We moved here in 1998, and little
by little I adapted our house to the
family's style, but I can't continue with
that because we are in this situation
of indefinition – whether we will be
resettled or not. So I can't make any
more improvements to the house, in an
area that we felt comfortable, and we
don't have that anymore. My shop is my
world. I ask the company to expedite
this situation as much as possible."
Mr. João Batista Carlos*, resident
of the Bela Vista community in the
municipality of Itabira.
Social Capital
1. Social Ambition
2. Human Rights
3. Indigenous Peoples and Traditional Communities
4. Local Communities
5. Private Social Investment
6. Suppliers and customers
7. Stakeholder Engagement
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"I'm a resettler here from
Cateme, I've been on a
horticulture project here
on the farm offered by
Vale, since 2017. Vale
taught me how to produce
and I can teach other
people. I produce onions,
lettuce, tomatoes, peppers,
and okra. I sell all these
products and with the
resources, I can send the
children to school, buy
panels for the house, in
short, I thank Vale for
this income generation
project.".
Faruque Nito Sinalo Colher,
Cateme, Mozambique
171 families from the Mphandwe and Ntchenga
communities located in the future expansion area
of the venture. After the host area was chosen by
the communities, Vale promoted a participative
process to create the resettlement project, which
will include infrastructure that will also serve the
host community. Vale built the 70m² model house,
which was approved by the government and
communities.
Vale built the Cateme Village to resettle 712
families from rural communities that were once
located where the Moatize Coal Mine currently
stands. At the site, Vale maintains a social project
to enable agricultural and economic development
for the resettled families. At Fazenda Modelo,
farmers who own small plots of land are trained
in sustainable food production techniques which
generate revenue that provides income for
the families, thus contributing to restore their
livelihoods.
LAND USE DISPUTES
GRI 103-2, 103-3 | MM6 | MM7
Vale currently owns more than 9,000 properties in
Brazil, corresponding to about 360,000 hectares. Of
this total, 63% are operational areas and 37% are
non-operational. Part of these areas are located
in regions where land use disputes are part of the
territorial context and require the company to
manage the relationship with communities that
occupy these properties irregularly.
The main issues related to land use conflicts in
Brazil are found in the northern region of the
country and involve the actions of organized
social movements. In the municipality of Canaã
dos Carajás and Curionópolis, in Pará, around 400
families occupy company’s properties in the region
of the Cristalino Project. Vale is seeking, through
dialogue, to build a solution, together with justice
institutions, representatives and families linked to
social movements, to vacate this area.
Vale does not conduct mineral research or mining
activities of any nature on indigenous lands in Brazil,
however, there is a controversy involving the Xikrin
do Cateté people in relation to projects in the Carajás
region. The issue was under discussion in recent
years, and during 2021 a joint effort was made by
all those involved in the legal proceedings, which
culminated in an agreement that made it possible to
extinguish most of the Public Civil Lawsuits.
The agreement reflects the result of a process of
dialogue, engagement, and negotiation between
the parties, aiming at resuming the relationship
of partnership and good neighbourliness between
the company and the Indigenous People as well
as a conciliatory solution without recognizing
Social Capital
1. Social Ambition
2. Human Rights
3. Indigenous Peoples and Traditional Communities
4. Local Communities
5. Private Social Investment
6. Suppliers and customers
7. Stakeholder Engagement
106
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expert reports have already proven that there
is no environmental damage resulting from the
Onça Puma enterprise. The agreement has already
been ratified by the Federal Court of Redenção
and is awaiting ratification by the Federal Court of
Marabá. Vale reiterates that its actions are based
on compliance with environmental legislation and
respect for the Xikrin do Cateté people.
Vale has decided to abandon its mining processes on
Indigenous Lands in Brazil as of 2021, which includes
requirements for research, exploration and mining.
The necessary procedures are being taken by the
company at the National Mining Agency - ANM (in
Portuguese).
In Mozambique, Vale has started negotiations
involving the community and the government
for compensation of farmers who irregularly
occupy the PIT 2 concession area in Section 2. The
government has oriented the preparation of an
Economic Resettlement Plan that will be carried
out in 2022.
Private Social
Investment
GRI 103-2, 103-3 | 203-1
Vale makes socio-economic investments in the
territories where it operates and in initiatives
that contribute to developing of society, through
investment vehicles or structured initiatives. In
2021, USD 95.88 million were spent on voluntary
social actions with own resources, in addition
to the actions to support facing Covid-19 and
complementary actions in Brumadinho. See the
highlights in the ESG Databook. GRI 203-1
Vale Foundation
The Vale Foundation seeks to strengthen public
policies and contribute to the social development
in the territories where Vale operates. In 2021, its
initiatives impacted more than 860,000 people across
50 municipalities in six Brazilian states. We highlight
the following projects:
LITERACY TRACKS
(TRILHOS DA ALFABETIZAÇÃO)
This project promotes literacy in about 70,000
children in the public school network. During the
year, 2,900 educators, managers, and technicians
from 1,070 schools participated in the project's
training. Developed in partnership with the
Government of Maranhão, Fundação Getulio Vargas
and the City Halls of the 24 municipalities along
the Carajás Railroad (EFC), the initiative is aimed at
first, second and third grade public school students.
The project has iniciatives such as: strengthening
of the municipal management; training of
teachers, managers, and technicians; assessment
and monitoring of learning; and production and
distribution of educational materials.
NETWORKED TERRITORIES
(TERRITÓRIOS EM REDE)
Launched in 2020, this project aims to identify
the main challenges in guaranteeing the right
to education and to propose actions that seek
to combat school exclusion, together with the
municipalities. Year to date, the project has identified
3,340 excluded children in Serra (Espírito Santo) and
Marabá (Pará), of which 2,480 were returned to the
educational system. In partnership with Apprentice
School City (Cidade Escola Aprendiz) and the City
Halls of Serra and Marabá, children and teenagers
between 4 and 17 years old are identified as being
out of school or at risk of dropping out. After being
identified, the children are monitored by the project
to ensure their school enrollment or attendance
regularized. This is possible thanks to the assistance
provided by the Networked Territories teams in
collaboration with the schools and the municipal
government, through home visits or phone contact.
In addition to the Vale Foundation, the project has
investments from Wheaton Precious Metals, in Pará,
and from GHT, in Espírito Santo.
TerPaz
In 2021, we inaugurated the
first community complex of the
Paz Plant in the Icuí-Guajará
neighbourhood in Ananindeua
(Pará). This is one of six units Vale
is building in Pará, as part of the
Territories for Peace Program
(TerPaz), conceived and managed
by the state government.
The Plants are inclusive
community spaces with
sustainable architecture, built
in regions with high rates of
violence and social vulnerability
and designed to serve local
communities. They offer a wide
range of sports and leisure
activities, services such as legal
advice and document issuing,
vocational training, family health,
a library, a swimming pool, digital
inclusion rooms, among others.
Social Capital
1. Social Ambition
2. Human Rights
3. Indigenous Peoples and Traditional Communities
4. Local Communities
5. Private Social Investment
6. Suppliers and customers
7. Stakeholder Engagement
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HEALTH CYCLE (CICLO SAÚDE)
Health Cycle (Ciclo Saúde) is a technical cooperation
program to strengthen primary care in the
municipalities and aims to promote health through
an integrated process. In 2021, we Implemented the
program in 18 municipalities, supporting 175 basic
health units (UBS in Portuguese) and training 2,200
professionals. The project can potentially benefit
up to 695,000 users of the Brazilian Unified Health
System. The project includes training workshops,
management support and furniture and equipment
donation to improve conditions for the population.
It is a Vale Foundation initiative in partnership with
the Center for Health Promotion (CEDAPS), the Post-
Graduate Family Health Program at Estácio de Sá
University, and the municipal governments where it
is implemented.
Learn more
About The Vale
Foundation.
The Vale Fund
The Vale Fund works to strengthen a more
sustainable, fair and inclusive economy. Since 2010, it
has supported the construction of a new economic
reality by investing in business development,
knowledge generation, the strengthening of the
impact ecosystem, and financial arrangements
aiming to conserve and recover the environment,
especially in the Amazon.
Literacy
Tracks
AMAZ - THE AMAZON IMPACT
ACCELERATOR
Among the highlights of the Vale Fund in 2021
is the launch of AMAZ - impact accelerator
of Amazon. This program supports startups in
various areas such as financial and administrative
management and articulates cooperative
opportunities in logistics and market access. By 2030,
we will select 30 businesses through annual calls
for proposals. The selected candidates will receive
total contributions of USD 2.3 million. Together, the
startups should help preserve one million hectares of
forest and benefit 930 families.
COVID-19 RESPONSE PLAN AND
EMERGENCY CREDIT LINE
The Vale Fund provided about USD 1 million to
family farming and extractive associations and
cooperatives through the Covid-19 Response Plan,
between 2020 and 2021. Our partnership with
Conexsus and the CX Fund has already impacted
18,800 producers, invested in 85 community
businesses (43% in the Amazon) and provided
loans in the amount of USD 1.7 million through the
Emergency Credit Line, catalyzing resources with
other cofinanciers.
I
R
O
N
U
J
E
U
Q
A
S
I
:
O
T
O
H
P
The Vale Fund aims to
strengthen a more sustainable,
fair and inclusive economy
Social Capital
1. Social Ambition
2. Human Rights
3. Indigenous Peoples and Traditional Communities
4. Local Communities
5. Private Social Investment
6. Suppliers and customers
7. Stakeholder Engagement
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banks in several states and expanded spaces in their
own clinics to receive blood donations.
They also worked for the organ donation cause,
by creating a card for volunteer donors, in
partnership with Adote. Joining forces with the Vale
Foundation, Itaú Social, Gimba, and BRSupply, they
also promoted a school reception campaign, which
guaranteed the delivery of school kits to children
and young people enrolled in the Knowledge
Stations in Arari (MA), Brumadinho (MG), Marabá
(PA), Serra (ES), and Tucumã (PA). In addition to
these, there are actions to promote reading,
menstrual dignity campaigns, inclusive runnings and
animal protection actions, among dozens of others.
AMAZON AT HOME, FOREST STANDING
(AMAZÔNIA EM CASA, FLORESTA EM PÉ)
Developed by Climate Ventures, the Amazon
Logistics and Commercialization Lab sought to
unlock market barriers to leverage Amazonian
socio-biodiversity products. As an innovation and
co-creation space focused on prototyping and
testing, the Lab tested solutions to boost region's
bioeconomy. As a result, the movement Amazon
At Home, Forest Standing (Amazonia em Casa,
Floresta em Pé) was created, which relied on a
partnership with Mercado Livre, increasing online
sales of sustainable businesses in the biome.
STRENGTHENING THE IMPACT ECOSYSTEM
The Vale Fund supported several initiatives and
networks in 2021 to strengthen skills, produce
knowledge and support the environment by
boosting social and environmental impact
businesses. Partners such as the Corporate
Citizenship Institute (ICE in Portuguese), Phi
Institute, Latin American Venture Philanthropy
Network (Latimpacto), Aspen Network of
Development Entrepreneurs (ANDE), Pipe Social,
and Move.Social have been part of this trajectory.
Learn more
The Vale Fund.
Vale Cultural Institute
The Vale Volunteer Network
In 2021, the Vale Cultural Institute supported and
sponsored more than 200 projects in 160 Brazilian
municipalities. The four cultural spaces of the
Institute – Canãa dos Carajás House of Culture
(Casa da Cultura de Canãa dos Carajás), Vale
Maranhão Cultural Centre (Centro Cultural Vale
Maranhão), Minas Gerais Vale Memorial (Memorial
Minas Gerais Vale) and Vale Museu – initiated
more than 1,900 projects, reaching more than 1.6
million people, and the Vale Música music training
program held more than 622 classes.
Public calls for proposals were sent out, offering
funds from the Federal Law for Cultural Incentives
in an effort to foster cultural activities and drive
the creative economy throughout Brazil. For
example, the Vale 2021 Cultural Institute Call for
Proposals allocated USD 4.6 million for projects to
be carried out in 2022.
Learn more
Vale Cultural Institute.
In 2021, the Vale Volunteer Network united more
than 5,000 volunteers, who took part in 150 actions.
Among them are the Brazil Without Hunger and
Christmas Without Hunger campaigns, which were
part of Vale's humanitarian actions to fight hunger.
Partners of the Brazil Without Hunger campaign
included Microsoft, Deloitte, GHT, Komatsu, Epiroc,
Arcadis and Acende Brasil. Partners of the Christmas
Without Hunger campaign include Mascarenhas
Barbosa, Ápia, Weir Esco, Barbosa Mello and
Continental. Faced with the worsening pandemic
and the fall in blood bank stocks, Rede and Pasa,
a Vale Group company that operates in the health
sector, signed partnerships with clinics and blood
Patricia Zacheu,
Mercia Costa and
Fabricia Zacheu,
from the Vale
Volunteers
network in São
Luís, Maranhão
PHOTO: ISAQUE JUNIOR
Social Capital
1. Social Ambition
2. Human Rights
3. Indigenous Peoples and Traditional Communities
4. Local Communities
5. Private Social Investment
6. Suppliers and customers
7. Stakeholder Engagement
Learn more
Participate, visit
and register.
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Suppliers and customers
In 2021, around 18,000 suppliers made up
Vale's supply chain, including consumer
goods companies, service providers and
consulting firms, among others.
The company prioritizes the hiring and
development of local suppliers. Local purchases
represented, in 2021, a financial volume of more
than 53% of the total purchases in the period,
which was USD 18.4 billion. GRI 102-9 | 103-2, 103-3 |
201 | 203 | 204-1
Value chain partnerships
POSCO, a South Korean steel producer headquartered in Pohang, South Korea,
and a Vale customer, launched a matching fund with its global raw material
suppliers. By joining forces with the mining and steel industries, they aim to
an effective social contribution to the local communities where these partner
companies operate.
Vale was one of the partners chosen to receive a social contribution. In its
first year (2021), the program began in Brazil with investments in education
for vulnerable young people at the Knowledge Station in Marabá, Pará. The
program has implemented a Pre-College entrance exam preparatory course.
In its second year, the program will be carried out with an institution to be
selected by POSCO in South Korea.
Social development actions
in the communities
Vale has sponsored the Share (Partilhar)
Program since 2020, to promote the socio-
economic development in the locations where
it operates by joining forces with its supply
chain.
The initiative encompasses a Community
Value Index (IVC in Portuguese), which makes
it possible to recognize and appreciate the
suppliers that contribute most to each
region’s social progress through five levers:
employment generation, investments in wage
mass, local spending on products and services,
taxes, and social investments.
In 2020, we incorporated the program's
methodology and technical and commercial
aspects into Vale's supplier contracting
process, to value our suppliers and encourage
them to help strengthen the communities
where the company operates.
Through the program, Vale's suppliers
have already committed to carrying out 55
voluntary social investment actions in Minas
Gerais and Pará. In addition, they closed 96
contracts using the program's innovative
methodology, in which Vale generates a score
for suppliers according to their socioeconomic
contributions in the regions, making them
more competitive during our procurement
processes. In 2021, among our suppliers’
voluntary social investments in the territories
where Vale operates, we highlight the training
of welder, seamstresses, truck drivers and
Munk operators, among others.
A total of 434 suppliers participated in the
competitive processes prepared with the
Share (Partilhar) methodology, which is 77%
of the companies invited. The volume of
contracts awarded in the program exceeded
USD 740 million.
Learn more
About the social
development actions in the
communities.
Social Capital
1. Social Ambition
2. Human Rights
3. Indigenous Peoples and Traditional Communities
4. Local Communities
5. Private Social Investment
6. Suppliers and customers
7. Stakeholder Engagement
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PresentationGovernance and ComplianceFinancial CapitalNatural CapitalHuman CapitalIntellectual CapitalSocial CapitalManufactured Capital AssuranceCritical AnalysisCreditsValeGRI Index Supplier evaluation and monitoring
Supplier management is guided by adherence to
compliance standards required by Vale, which
include aspects of health and safety, social and
environmental issues, ethics and integrity, and
human rights.
The company's history in the market is also
checked during the registration phase, including
an analysis of the companies' compliance with
the requirements of Vale's Ethics & Compliance
Program. The public lists of forced or compulsory
labor sanctions and of the Brazilian Federal
Government (CEIS, CEPIM, and CNEP), among
others, are also analyzed. If any irregularity is
identified, the supplier is not registered and may
be considered unfit to supply Vale.
For active suppliers, Vale also carries out periodic
monitoring of aspects such as social, environmental,
human rights, performance and government
relations. Local labor obligations are monitored, as
well as the black list of employers using forced or
compulsory labor, and the list of public sanctions by
the government on a monthly basis.
On a quarterly basis, public sanctions are monitored
(in accordance with the Sanctions Compliance
Policy), and every six months the Supplier
Performance Index (IDF) is calculated. This is an
evaluation of supplier performance on five criteria –
technical quality, environmental protection, health
and safety, respect for employees, and continuous
improvement.
Program to manage carbon emissions in the value chain
Reducing greenhouse gas (GHG) emissions in line with
the Paris Agreement is part of Vale's commitment to
Agenda 2030. Since 2011, the company has monitored and
encouraged suppliers to manage their emissions through
a contractual clause and an annual questionnaire.
in a specific program, the CDP Supply Chain, to encourage
public carbon disclosure along the supply chain.
In 2021, we invited 496 suppliers, accounting for about
30% of the company's overall spending. Not included in
this group were steel customers and shipping suppliers.
Of this total, 375 answered the questionnaire on the CDP
platform, which represents a 37% increase over last year.
In 2020, Vale entered into a partnership with the Carbon
Disclosure Project (CDP), an international non-profit
organization that helps companies and cities to disclose
their environmental impact. The partnership engages
suppliers classified as critical in greenhouse gas emissions
Ninety-one percent of the suppliers who responded
in 2020 also submitted their responses in this cycle,
allowing us to assess their evolution and coordinate
actions focused on the low-carbon economy. The
platform analyzes management data, governance and
indicators to define risks and opportunities aimed at
reducing emissions. The material is evaluated by CDP and
passed on to the suppliers.
See more at Climate Change.
Social Capital
1. Social Ambition
2. Human Rights
3. Indigenous Peoples and Traditional Communities
4. Local Communities
5. Private Social Investment
6. Suppliers and customers
7. Stakeholder Engagement
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Aware of its potential impacts on society, Vale seeks to practice dialogue and active listening with its stakeholders to build a positive
legacy for future generations. The following are our relationship and engagement initiatives with our main stakeholders.
STAKEHOLDER ENGAGEMENT INITIATIVES GRI 102-21, 102-40, 102-42, 102-43, 102-44
Stakeholders
Why we engage
How we engage
Main demands and concerns addressed
Communities
To share knowledge about our ventures and
their risks and impacts. To listen, understand,
and act to respond to communities’
expectations and provide opportunities for
territorial development
Making relationship plans with communities, forming
management groups and holding participative meetings
and, community visits; holding forums to monitor
actions; implementing our Listening and Response
Mechanism – to capture, register, treat and respond
to community manifestations. Engaging throughout
the entire life cycle, from the preliminary design and
licensing phases, including the concept of progressive
closure of our ventures in the territories.
• Community manifestations about the territorial development agenda
(support for social projects and job vacancies) and mitigation of local
impacts (safety and traffic on access roads and highways);
• Demands related to managing impacts and Brumadinho reparation
(transportation, access to water, care, animal rescue and indemnity);
• Concerns about dam safety and transparency;
• Techniques for environmental restoration and reforestation after mine
closure.
Employees
We are committed to performing our
activities safely, respecting the environment
and people – our own employees,
contractors, suppliers, and communities.
Maintaining internal communication channels (Talk
360, webinars, Vale@, Management Bulletins, Intranet,
Teams Card, among others); Capacity building, training
and the Sustainability Academy; creating thematic
groups, maintaining interactive dialogue and, joint
action and volunteer programs, and engaging in
collective bargaining with trade unions or workers'
organizations.
• People management practices;
• Decent working conditions;
• A diverse, inclusive, and psychologically safe environment;
• Freedom of association and collective bargaining;
• Managing risks, impacts and opportunities in dams;
• Managing risks and opportunities in health and safety;
• Deploying techniques for environmental restoration and reforestation after
mine closure;
• Innovating through investments in R&D, automation, robotization, and
artificial intelligence.
Social Capital
1. Social Ambition
2. Human Rights
3. Indigenous Peoples and Traditional Communities
4. Local Communities
5. Private Social Investment
6. Suppliers and customers
7. Stakeholder Engagement
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Why we engage
How we engage
Main demands and concerns addressed
Customers
We provide support to customers because
of their strategic importance to the core
business.
Staying in touch via commercial and technical meetings,
visits, emails and phone calls; maintaining our Customer
Portal; deploying a satisfaction survey; attending
forums, seminars, and conventions.
Suppliers
We value agility in purchasing materials
and services; to choose the correct items;
to manage our materials inventory; and to
maximize health, safety, and sustainability
variables in our supply chain.
Low carbon forum; supplier chat; business round-table
discussions; training, human rights risk management,
and workshops with suppliers of global categories.
• Dam management (policies, commitments, risks, impacts and
opportunities);
• Eco-efficient production and distribution technologies;
• Techniques for environmental restoration and reforestation after mine
closure;
• Technological products and solutions for Vale’s Scope 3 Emission
Reductions;
• Carbon capture and storage systems.
• Dam management (policies, commitments, risks, impacts and
opportunities);
• Local communities (risks, impacts and opportunities, objectives, goals and
management practices results, as well as outstanding projects);
• Investments in innovation, R&D and eco-efficient production and
distribution technologies;
• Techniques for environmental restoration and reforestation after mine
closure.
Social Capital
1. Social Ambition
2. Human Rights
3. Indigenous Peoples and Traditional Communities
4. Local Communities
5. Private Social Investment
6. Suppliers and customers
7. Stakeholder Engagement
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Why we engage
How we engage
Main demands and concerns addressed
Investors
Vale is committed to achieving strong
financial performance and to creating
shareholder value.
Letters, meetings, questionnaires, shareholders'
meetings, webinars, conferences, roadshows and,
calls, our ESG Portal, IR website and IR email, Board of
Directors engagement.
Partners, aca-
demia, experts,
and non-go-
vernmental
organizations
(NGOs)
We have established partnerships and
proximity with experts in various areas and
expertises.
Meetings and events; expert Vale Foundation and Vale
Cultural Institute panels; Sounding Panel – advisory
board, under the Executive Board, composed of global
ESG experts.
• Business performance,
• Capital allocation,
• Long-term strategy,
• The Iron Ore, Nickel and Copper markets
• Good governance practices: corporate (independence and transparency),
environmental (water and biodiversity impacts), and social (labor and
community safety, human rights, and local community relations);
• Climate change and business model impacts, innovations in applications,
and greenhouse gas emissions management;
• Dam management
• Reparation of Brumadinho, Mariana and other operations to address safety
issues;
• Innovation (life cycle of metals and ores, techniques for environmental
restoration and reforestation after Mine closure) and eco-efficient
production and distribution technologies.
• Cultural transformation and greater transparency about challenges with
civil society;
• Community (investment fron human rights to dam and Mine closure
impacts);
• Innovation (life cycle of metals and ores, techniques for environmental
restoration and reforestation after Mine closure) and investments in R&D;
• Reparation of Brumadinho and Mariana;
• Exploration in sensitive biodiversity areas.
Social Capital
1. Social Ambition
2. Human Rights
3. Indigenous Peoples and Traditional Communities
4. Local Communities
5. Private Social Investment
6. Suppliers and customers
7. Stakeholder Engagement
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Why we engage
How we engage
Main demands and concerns addressed
Public agencies
We seek to maintain a close relationship
guided by principles of public administration
(legality, impersonality, administrative
morality, publicity, and efficiency).
These stakeholders are active in political
decision-making process and public policiey
formulation, on which our company's
highly regulated business depends. They
influence Vale's regulatory risks, in addition
to acting directly in the process of obtaining
authorizations, grants and licenses to which
the company and its businesses are subject.
Strategic, political-institutional, and technical
meetings; thematic groups and events, and actions of
mining sectorl entities.
• Legal compliance in social, environmental, and production methods;
• Reparation of Brumadinho and Mariana;
• Dam management (risks, impacts and opportunities);
• Innovation (life cycle of metals and ores, techniques for environmental
restoration and reforestation after Mine closure) and investments in R&D;
• Topics on the agenda for the year: mining waste, water, particulate
emissions, conflicts with communities, and mine closures.
Press
We are accountable and value a policy
of transparency in our relationship with
stakeholders and image and reputation
management.
Maintaining a positive relationship with the media,
answering requests for interviews with Vale executives
and information about the company's business and
operations.
Institutions
We seek engagement and relationships with
key entities focused on sustainability issues,
analysis and mitigation of geopolitical and
socio-political risks, discussion of public
policies, sustainable development initiatives
and responsible investments, and defense of
the mining sector interests – globally.
Strategic, political-institutional, and technical
meetings; thematic groups, forums, and actions
through mining sector entities globally.
• We respond in a reactive manner, when journalists seek information about
the company's various issues; and in a proactive way, based on positive
agendas provoked by the Press Office;
• Most common reactive agendas include: issues about our business, reparation
and dams;
• Main proactive agendas include our commitment to sustainability (carbon
and biodiversity), cultural transformation, innovation, and diversity.
• Best practices related to environment (climate change, mining waste,
biodiversity and water resources), social responsibility (impacts on local
communities and human rights, and the vulnerability of these populations,
including at Mine closure) and governance (cultural transformation,
promotion of ethics, transparency, and reparations for Brumadinho and
Mariana);
• Managing risks and opportunities in dams, biodiversity, human rights, and
local communities.
Social Capital
1. Social Ambition
2. Human Rights
3. Indigenous Peoples and Traditional Communities
4. Local Communities
5. Private Social Investment
6. Suppliers and customers
7. Stakeholder Engagement
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external organizations
Vale is committed to the UN Global Compact.
Although our company withdrew in 2019 out
of respect for the institution and its members
following the Brumadinho tragedy, we have
worked diligently to implement the Ten Principles
of the UN Global Compact.
Our engagement with external organizations
involves the company's senior leadership and
includes institutions such as the International
Council on Mining and Metals (ICMM), the World
Business Council for Sustainable Development
(WBCSD), the Brazilian Business Council for
Sustainable Development (CEBDS in Portuguese),
the World Economic Forum (WEF), and others.
See the complete list of entities and associations
in which Vale participates.
Learn more
Information on the 10
principles of the Global
Compact.
"After the Brumadinho
tragedy, Vale committed
itself to full reparation
of the impacts caused. It
is also committed to the
principles of precaution
and non-repetition, re-
evaluating all aspects of
its business. As part of this
review, Vale has reinforced
the implementation of the
Ten Principles of the UN
Global Compact. Following
them is a strategic step
in strengthening our
sustainability performance."
Eduardo Bartolomeo, CEO
A
R
I
E
U
G
O
N
R
O
T
I
V
:
O
T
O
H
P
Railroad Vitória
Minas. Brazil
Social Capital
1. Social Ambition
2. Human Rights
3. Indigenous Peoples and Traditional Communities
4. Local Communities
5. Private Social Investment
6. Suppliers and customers
7. Stakeholder Engagement
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Participation in entities and associations
Vale participates in the following entities and associations. Many abbreviations refer to Portuguese acronyms. GRI 102-13
• ABEC BRASIL (Brazilian Association of Scientific
• Reference Centre for Integral Education, via the
Editors), via ITV
Vale Foundation
• Brazilian Society of Sciences (ABC)
• Childhood Brasil
• Citizenship Action (Ação da Cidadania)
• Brazil Climate Coalition Forests and Agricultures
• Covid Radar Collective
• Columbia Center on Sustainable Investment (CCSI)
• Foundation for Foreign Trade Studies Centre
(Fundação Centro de Estudos do Comércio
Exterior / Funcex)
• Global Business Initiative on Human Rights (GBI)
• Group of Corporate Institutes and Foundations
(GIFE), via the Vale Foundation
• Institute for the National Pact to Eradicate
• Sustainable Development Solutions Network (SDSN)
• Task Force on Climate-related Financial
Disclosures (TCFD)
• The Cobalt Development Institute
• The Indonesian Mining Association (IMA)
• The Mining Association of Canada (MAC)
• Aspen Network of Development Entrepreneurs
(ANDE), via the Vale Fund
• Brazilian Association of Soil Mechanics (ABMS)
• Brazilian Metallurgy, Materials and Mining
Association (ABM)
• Brazilian Foreign Trade Association (AEB)
• Brazilian Association of Port Terminals (ATP)
• National Association of Rail Carriers (ANTF)
• Brazil-Canada Chamber of Commerce
• Business at OECD (BIAC)
• Business for Social Responsibility (BSR)
• France-Brazil Chamber of Commerce
•Centre National de Recherche Technologique
Nickel et Son Environnement (CNRT Nickel)
• Brazilian Center for International Relations (CEBRI)
• Brazilian Committee on Large Dams (CBDB)
Slave Labour (InPACTO)
• The Nickel Institute
• Brazilian National Confederation of Industry (CNI)
• Instituto Acende Brasil
• All for Education, via the Vale Foundation
• Brazilian Corporate Volunteer Council
• Brazilian Mining Institute (IBRAM)
• Voluntary Principles on Security and Human
• China-Brazil Business Council (CEBC)
• International Council of Museums Brazil (ICOM)
• Brazilian Business Council for Sustainable
• International Council on Mining & Metals (ICMM)
Development (CEBDS)
• Brazil-Japan Business Council (CEBJ)
• Latimpacto – Latin American Venture
Philanthropy Network, via the Vale Fund
• BRICS Business Council (CEBRICS)
• Mining Hub
• European Association of Metals (Eurometaux)
• National Pact for Early Childhood, via the Vale
• Extractive Industries Transparency Initiative
(EITI)
Foundation
• Partnership Platform for the Amazon (PPA)
• National Forum of Pro-rectors for Research and
Postgraduation (FOPROP), via ITV
• National Education and Research Network
(RNP), via ITV
Rights
• Wise Group
• Women in Mining Brazil
• World Business Council for Sustainable
Development (WBCSD)
• World Economic Forum (WEF)
Social Capital
1. Social Ambition
2. Human Rights
3. Indigenous Peoples and Traditional Communities
4. Local Communities
5. Private Social Investment
6. Suppliers and customers
7. Stakeholder Engagement
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Independent reader letter
It is crucial for long-term investors to understand
how companies create value over time. This
includes how resources are deployed and
relationships are cultivated. As such, it is
hoped that integrated reporting can be a tool
to help providers of financial capital allocate
their investments in a more efficient way—and
therefore act as a force for sustainability.
Vale’s journey into integrated reporting, now
in its second year, shows increased maturity in
the presentation of the factors that materially
affect the ability of the company to create value
over time. As the company progresses, further
evidence is expected around how the integrated
report reflects the company’s development and
decision-making framework. This should be an
area of attention at the next reporting cycle.
Before we comment in greater detail on key
aspects of the report, we acknowledge the
company’s commitment to the reparation of the
damage caused by the Brumadinho and Samarco
accidents. As those events have been one of the
main driving forces in the transformation process
being implemented at the company, it is right
that its progress and challenges around social
and environmental matters are disclosed at the
beginning of the report.
We would like to comment on some key principles
of the integrated reporting framework, how
Vale applied them, and to offer suggestions for
improvement at the next reporting cycle.
STRATEGIC FOCUS AND STRATEGY
DELIVERY
MATERIALITY
The narrative about Vale’s business model, purpose
and strategic pillars is presented in a clear way. The
main achievements in the past year, and challenges
for the year ahead, are detailed for each of the
five strategic pillars of Safety and Operational
Excellence, New Pact with Society, Transformation
of Base Metals, Discipline in Capital Allocation, and
Maximisation of Flight-to-Quality in Iron Ore. The
company explicitly outlines a long-term ambition
for each strategic pillar.
In the table, it would be useful to include a
summary of the key short-, medium- and long-
term targets, and the achievements in the previous
year, plus a summary of the management’s
assessment of its progress and challenges. This
should come at the beginning of the report as a
key tool for stakeholders to hold management
to account, therefore providing consistency and
comparability over time and with peers.
The report explains the process used to identify
the material issues that affect value creation
at Vale. According to best practice, it included,
among other steps, a survey of internal and
external stakeholders ranging from employees to
investors, suppliers, clients and non-governmental
organisations. In our opinion, there are no glaring
omissions and we were encouraged to see
priority areas for investment stewardship, such as
biodiversity, human rights, occupational safety,
tailings storage facilities management, and climate
change mapped by the company as material to its
long-term success.
The implication of the material issues to Vale’s
capacity to create value and the company’s
strategic response to each one can be found
throughout the report.
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GOVERNANCE
The report presents a great level of detail,
resulting in an extensive document. Yet at times it
is difficult to navigate. This is often the case when
a company chooses to begin the implementation
of the integrated reporting framework by
combining existing annual and sustainability
reports.
We would expect an increased emphasis on
the streamlining of the information in the
next reporting cycles, evidencing the thinking
behind the integrated reporting and how the
capitals employed by the company (financial,
manufactured, intellectual, human, social and
natural) interconnect in the process of value
creation.
The report brings some examples of
interconnected capitals. For instance, the natural,
financial and manufactured capitals employed in
the context of the development of low-carbon
products, such as the ‘green briquettes’.
We encourage Vale to go further in this thematic,
and to demonstrate how it impacts value creation.
The report describes the board’s structure and its
recent evolution following the company’s now-
dispersed shareholder base. This is a key input
to the governance. However, it is important to
report the outcomes of the governance structure,
for example: how the board members and the
committees support the strategy; which primary
activities took place in the reporting cycle; and
how these activities impacted the company’s
capitals and the strategy delivery.
STAKEHOLDER RELATIONS
The full reparation of the damage caused by
the Brumadinho and Samarco accidents is an
essential element in the strategy of de-risking the
company and rebuilding trust with stakeholders.
Understandably, the reparation process is still
a source of controversy between Vale and the
affected communities. The detailed disclosure
provided helps the reader assess the company’s
progress and challenges. It is critical that the
company continues to show evidence that it
understands, considers and responds to the needs
and interests of this key group of stakeholders.
Beyond reparations, we highlight the “New Pact
with Society” strategic pillar, which includes targets
related to climate change, water management,
biodiversity, diversity across the workforce and the
reduction of poverty. We were pleased to see that
a challenge Vale sets out to address in this strategic
pillar is the implementation of the social value
lens in its projects and operations. This is evidence
of integrated thinking and the interconnection
between social, financial, human and manufactured
capitals.
In summary, Vale has demonstrated progress in
the implementation of the integrated reporting
framework and the integrated thinking upon which
it is founded. We encourage Vale to continue in its
integrated reporting journey, gradually evolving
from a combination of the standard annual and
sustainability reports, towards a tool to succinctly
communicate the key factors which materially
affect its ability to create value over time and how
they are interconnected.
Areas of focus for future reports should be (i)
conciseness, by striking a balance between keeping
the report no longer than it needs to be and
ensuring the completeness of the information;
(ii) connectivity between the different forms of
capital employed by the company in the process of
creation, preservation and erosion of value; and (iii)
further evidence of the integrated thinking applied
to decision-making.
Jaime Gornsztejn
Engineer, specialist in Governance, Director of
Corporate Governance at Federated Hermes
It is crucial for long-term investors to
understand how companies create
value over time
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The Integrated Report is an innovative instrument
for managing information about Vale's
performance, which stimulates objective analysis
by its managers, employees and partners, and also
allows external observers and the public to view
it in a comprehensive and synthetic way, even
considering the magnitude of the company.
However, there is no way for an independent
observer to gauge the accuracy of the information
in the Integrated Report, which underscores the
importance of independent auditor analysis. It
is not the case of incurring in the redundancy
of commenting on it here in this space, but it is
good to register the importance of each Report
highlighting the steps taken by Vale, in the course
of the year, in relation to the observations of the
auditors contained in its previous edition.
I shall start with the issue of the disasters that
occurred in Brumadinho and Mariana, which is
the most uncomfortable in the 2021 Report, to
note that there is a great distance between the
expectations of public opinion and the actual
pace of social and environmental reparations. The
inherent slowness of judicial processes and the
technical challenges of reparations do not satisfy
people, in general, who expect a gentler end to
these tragedies. The anxiety of the public opinion
and of those directly involved recommends that
Vale do everything possible to build agreements
that speed up the results, the overcoming of the
trauma and the recovery of its image.
In this same sense, the weighting of climate
change scenarios in the dam risk assessment
routines, highlighted in the Report, always leaves
doubts, since the climate threat is growing. What
would be the margins of error considered in these
evaluations, considering, for example, the intensity
of this summer's rainfall in southern Bahia, in Minas
Gerais, in the mountains of the state of Rio de
Janeiro, and in Greater São Paulo? Since these are
extremely sensitive hypotheses, all true information
can be cautionary and deserves space.
The inclusion in the 2021 Report of a component
relating to "mine closure" is very important, since it
refers, after all, to how the company "gives back"
to society the areas that have been exploited,
whatever the permanence of the enterprises there
may have been. There is an ethical and historical
issue involved, which is crucial for legal, formal,
and efficient mining to objectively demonstrate
its difference in relation to the predatory activities
that are advancing in Brazil.
Vale's decision, in 2021, to give up the requests
for mineral research on indigenous lands that
it was keeping with ANM - Agência Nacional de
Mineração (National Mining Agency) - deserved
applause. This attitude gives coherence to the
company's statement that mineral exploration on
these lands is not included in its business plans for
the next decades in Brazil.
It is also worth noting, in this same vein, Vale's
critical statement regarding the Executive
Branch's Bill 191/2020, which deals with mineral
exploration and mining on indigenous lands.
The company's objection was based on the need
for indigenous protagonism in the process of
prior and informed consent (FPIC), in accordance
with the internationally established standard
through Convention 169 of the International
Labor Organization, which is far from recognized
in the government's proposal. This manifestation
occurred in 2022 and should be reported in the
next edition of this Report, but it is an unfolding
of discussions on the subject that have been
ongoing since 2021, within IBRAM (Brazilian Mining
Institute) and other civil society organizations.
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requests for research on the surroundings of
indigenous lands requires action and clarification.
Although legally feasible, these applications,
assuming that they result in mining activities, raise
doubts about probable irreversible impacts on
contiguous areas. The occurrence of such damages
in previous similar projects, as in the case of the
Xikrin do Cateté Indigenous Land (Itacaiúnas
River), raises the expectation that they will not
be repeated in eventual future mining projects in
areas neighboring indigenous lands.
Vale's creation, in 2021, of the Executive Vice-
presidency of Sustainability is encouraging, as
it represents a step forward in the corporate
commitments to the social and environmental
agenda, a measure that signals its acceptance
at the highest hierarchical level of the company.
Thus, it is expected that, as early as 2022, this
initiative will result in consistent and visible
advances in the interlocution with the various
actors with whom Vale has relationships, and in
the specific territories where it operates.
Considering that Vale obtained a record profit in
2021, mainly due to the increase in the price of
iron ore in the international market, a scenario
that should intensify this year due to the climate
of war instigated by the invasion of Ukraine by
Russia, I suggest that the company consider the
possibility of expanding, in the same proportion,
its investments in sustainable socio-environmental
projects.
Finally, the current war situation could not have
been foreseen in 2021 and, therefore, is not
considered in the respective Integrated Report.
However, Vale urgently needs to evaluate the
impacts of the crisis on the perspectives that were
then being taken into account. Above all, regarding
the ethical implications and the commercial
retaliations that will influence the markets and
public opinion, as the conflict itself develops.
Márcio Santilli
Philosopher, founding partner of the
Socio-environmental Institute (Instituto
Socioambiental - ISA)
Vale's creation of the Executive
Vicepresidency of Sustainability
is encouraging, as it represents
a step forward in the corporate
commitments to the social and
environmental agenda
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Independent auditor's limited assurance report on the
non-financial information included in the 2021
Integrated Report of Vale S.A.
To the Board of Directors and Stockholders
Vale S.A.
Rio de Janeiro – RJ
INTRODUCTION
We have been engaged by Vale S.A. (“Company”
or “Vale”) to present our limited assurance report
on the non-financial information included in the
2021 Integrated Report of Vale for the year ended
December 31, 2021.
Our limited assurance does not cover prior-period
information, or any other information disclosed
together with the 2021 Integrated Reporting,
including any incorporated images, audio files or
videos.
RESPONSIBILITIES OF THE MANAGEMENT
OF VALE
INDEPENDENT AUDITOR'S
RESPONSIBILITY
The management of Vale is responsible for:
• selecting or establishing adequate criteria for the
preparation and presentation of the information
included in the Integrated Report;
• preparing the information in accordance with the
criteria and guidelines of the Global Reporting
Initiative (GRI - Standards), with the basis of
preparation developed by the Company, and
with Guidance CPC 09 – Integrated Report issued
by the Brazilian Federal Accounting Council (CFC),
related to the Basic Conceptual Framework
for Integrated Reporting, prepared by the
International Integrated Reporting Council (IIRC);
• designing, implementing and maintaining internal
controls over the significant information for the
preparation of the information included in the
Integrated Reporting, which is free from material
misstatement, whether due to fraud or error.
Our responsibility is to express a conclusion on
the non-financial information included in the
2021 Integrated Reporting, based on our limited
assurance engagement carried out in accordance
with the Technical Communication CTO 01
– Issuance of Assurance Reports related to
Sustainability and Social Responsibility, issued by
the Federal Accounting Council (CFC) , based on
the Brazilian standard NBC TO 3000, "Assurance
Engagements Other than Audit and Review",
also issued by the CFC, which is equivalent to
the international standard ISAE 3000, “Assurance
engagements other than audits or reviews of
historical financial information", issued by the
International Auditing and Assurance Standards
Board (IAASB). Those standards require that the
auditor complies with ethical requirements,
independence requirements, and other
responsibilities of these standards, including
those regarding the application of the Brazilian
Quality Control Standard (NBC PA 01) and,
therefore, the maintenance of a comprehensive
quality control system, including documented
policies and procedures on the compliance with
ethical requirements, professional standards and
relevant legal and regulatory requirements.
Moreover, the aforementioned standards require
that the work be planned and performed to
obtain limited assurance that the non-financial
information included in the 2021 Integrated
Report, taken as a whole, is free from material
misstatement.
A limited assurance engagement conducted in
accordance with the Brazilian standard NBC
TO 3000 and ISAE 3000 mainly consists of
making inquiries of management and other
professionals of Vale involved in the preparation
of the information, as well as applying analytical
procedures to obtain evidence that allows us
to issue a limited assurance conclusion on the
information, taken as a whole. A limited assurance
engagement also requires the performance of
additional procedures when the independent
auditor becomes aware of matters that lead him
to believe that the information disclosed in the
Integrated Report taken as a whole might present
significant misstatements.
The procedures selected are based on our
understanding of the aspects related to the
compilation, materiality, and presentation of the
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PresentationGovernance and ComplianceFinancial CapitalNatural CapitalHuman CapitalIntellectual CapitalSocial CapitalManufactured Capital AssuranceCritical AnalysisCreditsValeGRI Index information included in the 2021 Integrated
Report, other circumstances of the engagement
and our analysis of the activities and processes
associated with the significant information
disclosed in the 2021 Integrated Report in which
significant misstatements might exist. The
procedures comprised, among others:
(a) planning the work, taking into consideration
the materiality and the volume of
quantitative and qualitative information and
the operating and internal control systems
that were used to prepare the information
included in the 2021 Integrated Report;
(b) understanding the calculation methodology
and the procedures adopted for the
compilation of indicators through inquiries
of the managers responsible for the
preparation of the information;
(c) applying analytical procedures to
quantitative information and making inquiries
regarding the qualitative information and its
correlation with the indicators disclosed in the
2021 Integrated Report; and
(d) when non-financial data relate to financial
indicators, comparing these indicators with
the financial statements and/or accounting
records.
The limited assurance engagement also included
the analysis of the compliance with the guidelines
and criteria 1) of the Global Reporting Initiative
(GRI-Standards); 2) the provisions established
in the basis of preparation developed by the
Company; 3) the principles for the Integrated
Report, pursuant to Guidance CPC 09 – Integrated
Report, related to the Basic Conceptual
Framework for Integrated Report, prepared by
the International Integrated Report Council (IIRC)
applicable in the preparation of the information
included in the 2021 Integrated Report.
We believe that the evidence we have obtained is
sufficient and appropriate to provide a basis for
our limited assurance conclusion.
SCOPE AND LIMITATIONS
The procedures applied in a limited assurance
engagement vary in nature and timing and are
less detailed than those applied in a reasonable
assurance. Consequently, the level of assurance
obtained in a limited assurance engagement is
substantially lower than the level that would be
obtained in a reasonable assurance engagement.
If we had performed a reasonable assurance
engagement, we might have identified other
matters and possible misstatements in the
information included in the 2021 Integrated
Report. Therefore, we do not express an opinion
on this information.
CONCLUSION
Non-financial data are subject to more inherent
limitations than financial data, due to the nature
and diversity of the methods used to determine,
calculate and estimate these data. Qualitative
interpretations of the relevance, materiality, and
accuracy of the data are subject to individual
assumptions and judgments. Furthermore, we did
not consider in our engagement the data reported
for prior periods nor future projections and goals.
The preparation and presentation of non-
financial information and indicators followed the
definitions of the basis of preparation developed
by the Company and the guidelines of the
Global Reporting Initiative (GRI-Standards) and,
therefore, the information included in the 2021
Integrated Report does not have the objective
of providing assurance with regard to the
compliance with social, economic, environmental
or engineering laws and regulations. However,
the aforementioned standards establish the
presentation and disclosure of possible cases
of non-compliance with such regulations when
sanctions or significant fines are applied. Our
assurance report should be read and understood in
this context, inherent to the criteria selected and
previously mentioned in this paragraph.
Based on these procedures performed, described
herein, and on the evidence obtained, no
matter has come to our attention that causes
us to believe that the non-financial information
included in the Integrated Report for the year
ended December 31, 2021 of Vale S.A. has not been
prepared, in all material respects, in accordance
with the criteria and guidelines of the Global
Reporting Initiative (GRI)(GRI-Standards), with the
basis of preparation developed by the Company,
and with the Guidance CPC 09 – Integrated Report.
São Paulo, May 6, 2022
PricewaterhouseCoopers
Auditores Independentes Ltda.
CRC 2SP000160/O-5
Maurício Colombari
Contador CRC 1SP195838/O-3
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For the Materiality Disclosure Services, GRI Services reviewed that the GRI content index is clearly presented and the
references for Disclosures 102-40 to 102-49 are aligned with appropriate sections in the body of the report.
ORGANIZATIONAL PROFILE
GRI Standards
Disclosure
Page number(s) and/or URL
and/or direct answers
Material /
Non-Material
Omission
SDG
ICMM
Principles
SASB
102-1 Name of the organization
Page 20
102-2 Activities, brands, products, and services
Pages 20 and 56
102-3 Location of headquarters
Page 55
102-4 Location of operations
Pages 20 and 55
102-5 Ownership and legal form
Page 20
GRI 102:
General
Disclosures
2016
102-6 Markets served
102-7 Scale of the organization
Page 55; further information can be found in
the 2021 Reference Form - Section: Information
on products and services related to operating
segments - 2.1.3 Customers and sales (Pages:
259, 260, 262 and 266)
Pages 20 and 55; further information can be
found in the 2021 Reference Form - Section: 7.2
- Information on operating segments
Mandatory
Mandatory
Mandatory
Mandatory
Mandatory
Mandatory
Mandatory
Activity metrics;
EM-MM-000.A
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Disclosure
Page number(s) and/or URL
and/or direct answers
Material /
Non-Material
Omission
SDG
ICMM
Principles
SASB
102-8 Information on employees and other
workers
Page 90; More information can be found in the
"Social" tab of the ESG Databook
Mandatory
Activity metrics;
EM-MM-000.B
102-9 Supply chain
GRI 102:
General
Disclosures
2016
102-10 Significant changes to the organization and
its supply chain
Pages 110; further information can be found
in the 2021 Reference Form - Section: 7.3 -
Information on products and services related
to operating segments. e. Main inputs and raw
materials
Pages 44, 47 and 56; Further information can
be found in the 2021 Reference Form - Topic:
7.3 - Information on Products and Services
Related to Operational Segments/e. Main inputs
and raw materials (page 277) Note: This topic
will be updated with the 2021 information on
05/31/2022.
Mandatory
Mandatory
102-11 Precautionary Principle or approach
Pages 37, 46 and 48; further information can be
found in Form 20F 2021 - Section: 4. Risk factors
Mandatory
102-12 External initiatives
Page 80; further information can be found on
Vale's website
Mandatory
102-13 Membership of associations
Pages 80 and 117; further information can be
found on Vale's website
Mandatory
2; 4
10
9
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Disclosure
Page number(s) and/or URL
and/or direct answers
Material /
Non-Material
Omission
SDG
ICMM
Principles
SASB
STRATEGY
GRI 102:
General
Disclosures
2016
102-14 Statement from senior decision-maker
Pages 03 and 05
102-15 Key impacts, risks, and opportunities
Pages 9 to 18 and 48
Mandatory
Mandatory
ETHICS AND INTEGRITY
GRI 102:
General
Disclosures
2016
GOVERNANCE
102-16 Values, principles, standards, and norms of behavior
Pages 22 and 50
Mandatory
102-17 Mechanisms for advice and concerns about ethics
Page 51; further information can be found in the
2021 Reference Form - Section: 5.4 – Integrity
Program (Page 219)
Mandatory
102-18 Governance structure
102-19 Delegating authority
GRI 102:
General
Disclosures
2016
102-20 Executive-level responsibility for
economic, environmental, and social topics
102-21 Consulting stakeholders on economic,
environmental, and social topics
102-22 Composition of the highest governance
body and its committees
Pages 44 and 46
Pages 46 and 47
Pages 45 and 46
Pages 8 and 112
Pages 45 and 46
102-23 Chair of the highest governance body
Page 44; The CEO does not accumulate the po-
sition of Chairman of the Board of Directors
Mandatory
Mandatory
Mandatory
Mandatory
Mandatory
Mandatory
102-24 Nominating and selecting the highest go-
vernance body
Pages 45 and 46; further information can be found in
Form 20F 2021: Section: Management and employees
Mandatory
2
2; 4
1; 2
1; 2; 4
1; 2; 4
1; 2; 4
1; 2; 4
1; 2; 10
1; 2
1; 2
1; 2
16
16
16
16
16
16
5; 16
16
5; 16
Business Ethics
& Transparency;
EM-MM-510a.1
Business Ethics
& Transparency;
EM-MM-510a.1
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GRI Standards
Disclosure
Page number(s) and/or URL
and/or direct answers
Material /
Non-Material
Omission
SDG
ICMM
Principles
SASB
GRI 102:
General
Disclosures
2016
102-25 Conflicts of interest
Pages 52; further information can be found in
the Policy on Related Party Transactions and
Conflict of Interest.
102-26 Role of highest governance body in setting
purpose, values, and strategy
Page 45
102-27 Collective knowledge of highest
governance body
102-28 Evaluating the highest governance body’s
performance
Pages 45 and 46; further information can be
found in the Proxy Statement Annual General
Meeting of Shareholders 2022: Section -
Performance of the Board of Directors (Page 36)
Page 46; further information can be found
in the 2021 Reference Form - Section:
Administrative structure
102-29 Identifying and managing economic,
environmental, and social impacts
Page 46
Mandatory
Mandatory
Mandatory
Mandatory
Mandatory
16
16
4
16
16
1; 2
1; 2
1; 2
1; 2
1; 2
GRI 102:
General
Disclosures
2016
102-30 Effectiveness of risk management processes
Pages 46 and 48; further information can be
found in Form 20F 2021 - Section: 4. Risk factors
Mandatory
16; 6
1; 2; 4
102-31 Review of economic, environmental, and
social topics
Page 46; further information can be found
in the Internal Rules of the Sustainability
Comnittee, Chapter 5 - Meetings
102-32 Highest governance body’s role in
sustainability reporting
Pages 7 and 46
Mandatory
Mandatory
102-33 Communicating critical concerns
Page 48; further information can be found in
the Form 20F -2021
Mandatory
102-34 Nature and total number of critical
concerns
Pages 48 and 103; further information can be
found in the 2021 Reference Form - Section:
Risk Factors
Mandatory
16
16
16
16
1; 2; 4
1; 2
1; 2; 10
1; 2; 10
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Disclosure
Page number(s) and/or URL
and/or direct answers
Material /
Non-Material
Omission
SDG
ICMM
Principles
SASB
102-35 Remuneration policies
Page 47; further information can be found
in the 2021 Reference Form - Section 13.1 -
Compensation policy or practice of the board of
directors, statutory and non-statutory board,
fiscal council, statutory committees and audit,
risk, financial and compensation committees
Mandatory
GRI 102:
General
Disclosures
2016
102-36 Process for determining remuneration
Pages 47 and 91; further information can be
found in the 2021 Reference Form - Section:
Seção - 13.1 - Compensation policy or practice
of the board of directors, statutory and non-
statutory board, fiscal council, statutory
committees and audit, risk, financial and
compensation committees
Mandatory
102-37 Stakeholders’ involvement in remuneration
Page 47; further information can be found in
the 2021 Reference Form - Section: Seção -
13.1 - Compensation policy or practice of the
board of directors, statutory and non-statutory
board, fiscal council, statutory committees
and audit, risk, financial and compensation
committees
Mandatory
1; 2
1; 2
10
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Disclosure
Page number(s) and/or URL
and/or direct answers
Material /
Non-Material
Omission
SDG
ICMM
Principles
SASB
GRI 102:
General
Disclosures
2016
102-38 Annual total compensation ratio
Omitted
Mandatory
Information
subject to
specific
confidencial
restrictions: Vale
does not disclose
the annual total
compensation
of the
organization's
highest-paid
individual due to
the sensitivity of
the information
and for
confidentiality
reasons. We
are in a process
of gradual
improvement in
order to disclose
this information
to the market
8; 10
1; 2
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Disclosure
Page number(s) and/or URL
and/or direct answers
Material /
Non-Material
Omission
SDG
ICMM
Principles
SASB
GRI 102:
General
Disclosures
2016
102-39 Percentage increase in annual total
compensation ratio
Omitted
Mandatory
STAKEHOLDER ENGAGEMENT
GRI 102:
General
Disclosures
2016
102-40 List of stakeholder groups
Page 112
102-41 Collective bargaining agreements
Page 91
102-42 Identifying and selecting stakeholders
Pages 8 and 112
102-43 Approach to stakeholder engagement
Page 112
102-44 Key topics and concerns raised
Page 112
Mandatory
Mandatory
Mandatory
Mandatory
Mandatory
Information
subject to
specific
confidencial
restrictions: Vale
does not disclose
the annual total
compensation
of the
organization's
highest-paid
individual due to
the sensitivity of
the information
and for
confidentiality
reasons. We
are in a process
of gradual
improvement in
order to disclose
this information
to the market
8; 10
1; 2
8
10
3
10
10
10
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Disclosure
REPORTING PRACTICE
Page number(s) and/or URL
and/or direct answers
Material /
Non-Material
Omission
SDG
ICMM
Principles
SASB
102-45 Entities included in the consolidated
financial statements
Page 07; The financial statements can be checked
at the following link. All entities controlled by Vale
are covered in the Integrated Reporting.
102-46 Defining report content and topic
Boundaries
Page 07 and 08; further information can be
found in Form 20F 2021
102-47 List of material topics
Pages 9 to 18
102-48 Restatements of information
Page 71
102-49 Changes in reporting
Page 07; There have been no significant changes in
the material topics since the last Integrated Report.
102-50 Reporting period
Page 07
GRI 102:
General
Disclosures
2016
102-51 Date of most recent report
102-52 Reporting cycle
April 2021; further information can be found on
page 07
Annual; further information can be found on
page 07
102-53 Contact point for questions regarding the report
Page 07
102-54 Claims of reporting in accordance with the
GRI Standards
This report has been prepared in accordance with
the GRI Standards: "Comprehensive option"; more
information can be found on page 07
102-55 GRI content index
Page 124
102-56 External assurance
Page 07 and 122; Vale's external verification process is
required by its membership of the International Council
on Mining and Metals (ICMM) and the GRI Sustainability
Reporting Standards. In 2021, for publication of the text
of the Integrated Report, the document was validatedy
the Executive Committee, the Sustainability Committee,
and the Board of Directors.
Mandatory
Mandatory
Mandatory
Mandatory
Mandatory
Mandatory
Mandatory
Mandatory
Mandatory
Mandatory
Mandatory
Mandatory
10
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GRI Standards
Disclosure
Page number(s) and/or URL
and/or direct answers
Material /
Non-Material
Omission
SDG
ICMM
Principles
SASB
MATERIAL TOPICS - 200 SERIES (ECONOMIC TOPICS)
ECONOMIC PERFORMANCE
GRI 103:
Management
Approach
2016
103-1 Explanation of the material topic and its
Boundary
Page 11
103-2 The management approach and its components
Page 11 and 59
103-3 Evaluation of the management approach
Page 11 and 59
Material
Material
Material
201-1 Direct economic value generated and
distributed
201-2 Financial implications and other risks and
opportunities due to climate change
201-3 Defined benefit plan obligations and other
retirement plans
GRI 201:
Economic
Performance
2016
Page 59, 60 and ESG Databook: "Governance"
Material
2; 8
9
ESG Databook: ""GRI - Economic"" tab
Vale Climate Change Report 2021;
Form 20F -2021 Section: Description of Risk
Factors
Page 91; further information can be found
in the 2021 Reference Form (Item "14.3 -
Description of Employees' Compensation Policy"
sub-item "b. benefits policy")
Material
Material
Greenhouse
Gas Emissions;
EM-MM-110a.2
13
3
4; 6
3
201-4 Financial assistance received from government
No government assistance was received
Material
INDIRECT ECONOMIC IMPACTS
GRI 103:
Management
Approach
2016
103-1 Explanation of the material topic and its
Boundary
Page 18
103-2 The management approach and its components
Page 18 and 107
103-3 Evaluation of the management approach
Page 18 and 107
Material
Material
Material
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Page number(s) and/or URL
and/or direct answers
Material /
Non-Material
Omission
SDG
ICMM
Principles
SASB
GRI 203:
Indirect
Economic
Impacts
2016
203-1 Infrastructure investments and services
supported
Pages 53 and 107 and "Social" tab - topic: Social
Investment
Material
7; 9; 11
203-2 Significant indirect economic impacts
ESG Databook: "GRI - Economic" tab
Material
1; 2; 3; 8
9
9
MATERIAL TOPICS - 200 SERIES (ECONOMIC TOPICS)
PROCUREMENT PRACTICES
GRI 204:
Procurement
Practices
2016
204-1 Proportion of spending on local suppliers
Page 110
Non-material
ANTI-CORRUPTION
103-1 Explanation of the material topic and its
Boundary
Pages 10
Material
103-2 The management approach and its
components
Pages 10, 50 and 52
Material
GRI 103:
Management
Approach
2016
103-3 Evaluation of the management approach
Pages 10 and 50
Material
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Page number(s) and/or URL
and/or direct answers
Material /
Non-Material
Omission
SDG
ICMM
Principles
SASB
205-1 Operations assessed for risks related to
corruption
Pages 50 and 52
Material
16
16
16
1
1; 2
1
Business Ethics
& Transparency;
EM-MM-510a.1;
EM-MM-510a.2
Business Ethics
& Transparency;
EM-MM-510a.1
Business Ethics
& Transparency;
EM-MM-510a.1
GRI 205:
Anti-
corruption
2016
205-2 Communication and training about anti-
corruption policies and procedures
Pages 50 and 51
205-3 Confirmed incidents of corruption and
actions taken
Pages 52
ANTI-COMPETITIVE BEHAVIOR
103-1 Explanation of the material topic and its
Boundary
Pages 10
103-2 The management approach and its
components
Pages 10 and 52
103-3 Evaluation of the management approach
Pages 10 and 70
GRI 103:
Management
Approach
2016
GRI 206:
Anti-
competitive
Behavior
Material
Material
Material
Material
Material
206-1 Legal actions for anti-competitive behavior,
anti-trust, and monopoly practices
Pages 52 and 70
Material
16
1
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300 SERIES (ENVIRONMENTAL TOPICS)
Page number(s) and/or URL
and/or direct answers
Material /
Non-Material
Omission
SDG
ICMM
Principles
SASB
ENERGY
GRI 103:
Management
Approach
2016
GRI 302:
Energy 2016
103-1 Explanation of the material topic and its
Boundary
103-2 The management approach and its
components
Page 11
Page 70
103-3 Evaluation of the management approach
Pages 11 and 70
302-1 Energy consumption within the organization
Pages 70 and 71
Material
Material
Material
Material
302-2 Energy consumption outside of the
organization
Page 70; further information can be found in
the ESG Databook: "GRI - Environmental" tab
Material
302-3 Energy intensity
Pages 70 and 71
Material
302-4 Reduction of energy consumption
ESG Databook: "GRI - Environmental" tab
Material
302-5 Reductions in energy requirements of
products and services
Disclosure not applicable to mining setor
Material
7
7
7
7
7
6; 8
6; 8
6; 8
6; 8
6; 8
Energy
Management;
EM-MM-130a.1
Energy
Management;
EM-MM-130a.1
Energy
Management;
EM-MM-130a.1
Energy
Management;
EM-MM-130a.1
Energy
Management;
EM-MM-130a.1
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Disclosure
WATER AND EFFLUENTS
Page number(s) and/or URL
and/or direct answers
Material /
Non-Material
Omission
SDG
ICMM
Principles
SASB
GRI 103:
Management
Approach
2016
103-1 Explanation of the material topic and its Boundary
Page 13
103-2 The management approach and its components
Page 80
103-3 Evaluation of the management approach
Page 80
303-1 Interactions with water as a shared resource
Page 80; further information can be found in
the ESG Databook: "GRI - Environmental" tab
303-2 Management of water discharge-related
impacts
Page 69; further information can be found in
the ESG Databook: "GRI - Environmental" tab
Material
Material
Material
Material
Material
GRI 303:
Water and
effluents
2018
BIODIVERSITY
GRI 103:
Management
Approach
2016
303-3 Water withdrawal
ESG Databook: "GRI - Environmental" tab
Material
303-4 Water discharge
ESG Databook: "GRI - Environmental" tab
Material
303-5 Water consumption
ESG Databook: "GRI - Environmental" tab
Material
6
6; 8
Water
Management;
EM-MM-140a.1
Water
Management;
EM-MM-140a.1
6
6
6; 12
103-1 Explanation of the material topic and its Boundary
Page 12
103-2 The management approach and its components
Pages 12 and 77
103-3 Evaluation of the management approach
Pages 12 and 77
Material
Material
Material
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Page number(s) and/or URL
and/or direct answers
Material /
Non-Material
Omission
SDG
ICMM
Principles
SASB
304-1 Operational sites owned, leased, managed
in, or adjacent to, protected areas and areas of
high biodiversity value outside protected areas
Page 77
Material
14; 15
2; 7
304-2 Significant impacts of activities, products,
and services on biodiversity
ESG Databook: "GRI - Environmental" tab
Material
14; 15
7
304-3 Habitats protected or restored
Page 77
304-4 IUCN Red List species and national
conservation list species with habitats in areas
affected by operations
Page 77
103-1 Explanation of the material topic and its Boundary
Page 11
103-2 The management approach and its components
Pages 11 and 70
103-3 Evaluation of the management approach
Pages 11 and 70
Material
Material
Material
Material
Material
14; 15
6; 7
14; 15
7
GRI 304:
Biodiversity
2016
EMISSIONS
GRI 103:
Management
Approach
2016
Biodiversity
Impacts;
EMMM-160a.1
Biodiversity
Impacts;
EMMM-160a.1;
Community
Relations;
EMMM-210b.2
Biodiversity
Impacts;
EMMM-160a.1
137
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Disclosure
Page number(s) and/or URL
and/or direct answers
Material /
Non-Material
Omission
SDG
ICMM
Principles
SASB
305-1 Direct (Scope 1) GHG emissions
Page 70 and 71
305-2 Energy indirect (Scope 2) GHG emissions
Page 70
305-3 Other indirect (Scope 3) GHG emissions
Pages 70 and 74
GRI 305:
Emissions
2016
305-4 GHG emissions intensity
Pages 70 and 71
305-5 Reduction of GHG emissions
Page 71
Material
Material
Material
Material
Material
305-6 Emissions of ozone-depleting substances
(ODS)
ESG Databook: "GRI - Environmental" tab
Material
305-7 Nitrogen oxides (NOX), sulfur oxides (SOX),
and other significant air emissions
Pages 81 and 82
ENVIRONMENTAL COMPLIANCE
GRI 103:
Management
Approach
2016
GRI 307:
Environmental
Compliance
2016
103-1 Explanation of the material topic and its Boundary
Page 10
103-2 The management approach and its components
Pages 10 and 52
103-3 Evaluation of the management approach
Pages 10 and 52
307-1 Non-compliance with environmental laws
and regulations.
Page 52
Material
Material
Material
Material
Material
6
Water
Management;
EM-MM-140a.2
138
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Disclosure
400 SERIES (SOCIAL TOPICS)
EMPLOYMENT
Page number(s) and/or URL
and/or direct answers
Material /
Non-Material
Omission
SDG
ICMM
Principles
SASB
GRI 103:
Management
Approach
2016
103-1 Explanation of the material topic and its Boundary
Page 16
103-2 The management approach and its components
Pages 16 and 90
103-3 Evaluation of the management approach
Pages 16 and 90
401-1 New employee hires and employee turnover
Page 90
GRI 401:
Employment
2016
401-2 Benefits provided to full-time employees
that are not provided to temporary or part-time
employees
Page 91
Material
Material
Material
Material
Material
401-3 Parental leave
ESG Databook: "GRI - Social" tab
Material
OCCUPATIONAL HEALTH AND SAFETY
GRI 103:
Management
Approach
2016
103-1 Explanation of the material topic and its Boundary
Page 15
103-2 The management approach and its components
Pages 15 and 86
103-3 Evaluation of the management approach
Pages 15 and 86
Material
Material
Material
5, 8, 10
3, 5, 8
5, 8
3
3
3
139
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Page number(s) and/or URL
and/or direct answers
Material /
Non-Material
Omission
SDG
ICMM
Principles
SASB
GRI 403:
Occupational
Health and
Safety 2018
403-1 Occupational health and safety
management system
ESG Databook: "GRI - Social" tab
Material
403-2 Hazard identification, risk assessment, and
incident investigation
ESG Databook: "GRI - Social" tab
Material
403-3 Occupational health services
ESG Databook: "GRI - Social" tab
Material
403-4 Worker participation, consultation, and
communication on occupational health and safety
ESG Databook: "GRI - Social" tab
Material
403-5 Worker training on occupational health and
safety
ESG Databook: "GRI - Social" tab
Material
403-6 Promotion of worker health
ESG Databook: "GRI - Social" tab
Material
403-7 Prevention and mitigation of occupational
health and safety impacts directly linked by
business relationships
403-8 Workers covered by an occupational health
and safety management system
ESG Databook: "GRI - Social" tab
Material
ESG Databook: "GRI - Social" tab
Material
403-9 Work-related injuries
Page 86
Material
403-10 Work-related ill health
ESG Databook: "GRI - Social" tab
Material
3; 8
3; 8
3; 8
3; 8
3; 8
3; 8
3; 8
3; 8
3; 8
3; 8
5
5
5
Workforce
Health & Safety;
EM-MM-320a.1
140
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Disclosure
TRAINING AND EDUCATION
Page number(s) and/or URL
and/or direct answers
Material /
Non-Material
Omission
SDG
ICMM
Principles
SASB
GRI 103:
Management
Approach
2016
GRI 404:
Training and
Education
2016
103-1 Explanation of the material topic and its Boundary
Page 16
103-2 The management approach and its components
Pages 16 and 92
103-3 Evaluation of the management approach
Pages 16 and 92
404-1 Average hours of training per year per em-
ployee
404-2 Programs for upgrading employee skills and
transition assistance programs
Página 92
Página 92
404-3 Percentage of employees receiving regular
performance and career development reviews
ESG Databook: aba "GRI - Social"
DIVERSITY AND EQUAL OPPORTUNITY
103-1 Explanation of the material topic and its Boundary
Page 16
103-2 The management approach and its components
Pages 16 and 93
103-3 Evaluation of the management approach
Pages 16 and 93
Material
Material
Material
Material
Material
Material
Material
Material
Material
405-1 Diversity of governance bodies and
employees
Pages 94, 95 and ESG Databook: "GRI - Social" tab
Material
405-2 Ratio of basic salary and remuneration of
women to men
Página 91
Material
GRI 103:
Management
Approach
2016
GRI 405:
Diversity
and Equal
Opportunity
2016
8
8
8
5
5
3
3
141
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Disclosure
NON-DISCRIMINATION
Page number(s) and/or URL
and/or direct answers
Material /
Non-Material
Omission
SDG
ICMM
Principles
SASB
103-1 Explanation of the material topic and its Boundary
Page 17
103-2 The management approach and its components
Pages 17, 50 and 51
103-3 Evaluation of the management approach
Pages 17, 50 and 51
Material
Material
Material
406-1 Incidents of discrimination and corrective
actions taken
Page 51
Material
5; 8; 16
3
GRI 103:
Management
Approach
2016
GRI 406:
Non-
-discrimination
2016
FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING
103-1 Explanation of the material topic and its Boundary
Page 16
103-2 The management approach and its components
Pages 16 and 91
103-3 Evaluation of the management approach
Pages 16 and 91
Material
Material
Material
407-1 Operations and suppliers in which the
right to freedom of association and collective
bargaining may be at risk
Page 91
Material
8
3
GRI 103:
Management
Approach
2016
GRI 407:
Freedom of
Association
and
Collective
Bargaining
2016
Labor
Relations;
EM-MM-310a.1
142
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Disclosure
Page number(s) and/or URL
and/or direct answers
Material /
Non-Material
Omission
SDG
ICMM
Principles
SASB
CHILD LABOR
GRI 103:
Management
Approach
2016
GRI 408:
Child Labor
2016
103-1 Explanation of the material topic and its Boundary
Page 17
103-2 The management approach and its components
Pages 17 and 99
103-3 Evaluation of the management approach
Pages 17 and 99
408-1 Operations and suppliers at significant risk
for incidents of child labor
Page 99
FORCED OR COMPULSORY LABOR
103-1 Explanation of the material topic and its Boundary
Page 17
103-2 The management approach and its components
Pages 17 and 99
103-3 Evaluation of the management approach
Pages 17 and 99
GRI 103:
Management
Approach
2016
GRI 409:
Forced or
Compulsory
Labor 2016
Material
Material
Material
Material
Material
Material
Material
3; 8; 16
3
409-1 Operations and suppliers at significant risk
for incidents of forced or compulsory labor
Page 99
Material
3; 8; 16
3
143
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Disclosure
SECURITY PRACTICES
Page number(s) and/or URL
and/or direct answers
Material /
Non-Material
Omission
SDG
ICMM
Principles
SASB
GRI 103:
Management
Approach
2016
GRI 410:
Security
Practices
2016
103-1 Explanation of the material topic and its Boundary
Page 17
103-2 The management approach and its components
Pages 17 and 99
103-3 Evaluation of the management approach
Pages 17 and 99
410-1 Security personnel trained in human rights
policies or procedures
Page 99
RIGHTS OF INDIGENOUS PEOPLES
103-1 Explanation of the material topic and its Boundary
Page 17
103-2 The management approach and its components
Page 17, 100 and 101
103-3 Evaluation of the management approach
Page 17, 100 and 101
GRI 103:
Management
Approach
2016
GRI 411:
Rights of
Indigenous
Peoples
2016
Material
Material
Material
Material
Material
Material
Material
16
3
411-1 Incidents of violations involving rights of
indigenous peoples
ESG Databook: "GRI - Social" tab
Material
11
3
Security,
Human Rights
& Rights of
Indigenous
Peoples;
EMMM-210a.2;
EM-MM-210a.3
144
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Disclosure
HUMAN RIGHTS ASSESSMENT
Page number(s) and/or URL
and/or direct answers
Material /
Non-Material
Omission
SDG
ICMM
Principles
SASB
GRI 103:
Management
Approach
2016
GRI 412:
Human
Rights
Assessment
2016
103-1 Explanation of the material topic and its Boundary
Page 17
103-2 The management approach and its components
Pages 17, 99 and 100
103-3 Evaluation of the management approach
Pages 17, 99 and 100
412-1 Operations that have been subject to human
rights reviews or impact assessments
Pages 99
412-2 Employee training on human rights policies
or procedures
Page 99
412-3 Significant investment agreements and
contracts that include human rights clauses or
that underwent human rights screening
There were no significant agreements and
contracts, i.e. investments related to transactions
involving acquisitions, mergers or incorporation of
companies, in 2021. All of the company's contracts
include Human Rights clauses.
LOCAL COMMUNITIES
103-1 Explanation of the material topic and its Boundary
Page 18
103-2 The management approach and its components
Pages 18 and 102
103-3 Evaluation of the management approach
Pages 18 and 102
413-1 Operations with local community
engagement, impact assessments, and
development programs
Page 102
GRI 103:
Management
Approach
2016
GRI 413:
Local
Communities
2016
Material
Material
Material
Material
Material
Material
Material
Material
Material
Material
16
16
16
3
3
3
8; 11
9; 10
413-2 Operations with significant actual and
potential negative impacts on local communities
ESG Databook: "GRI - Social" tab
Material
8; 11
9; 10
Community
Relations;
EMMM-210b.1
Community
Relations;
EMMM-210b.1
145
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SOCIOECONOMIC COMPLIANCE
Page number(s) and/or URL
and/or direct answers
Material /
Non-Material
Omission
SDG
ICMM
Principles
SASB
103-1 Explanation of the material topic and its Boundary
Page 10
103-2 The management approach and its components
Pages 10 and 52
103-3 Evaluation of the management approach
Pages 10 and 52
419-1 Non-compliance with laws and regulations in
the social and economic area
Page 52
GRI 103:
Management
Approach
2016
GRI 419:
Socioeco-
nomic
Compliance
2016
MATERIAL ISSUE NOT COVERED BY A SPECIFIC GRI STANDARD
Dams
GRI 103:
Management
Approach
2016
103-1 Explanation of the material topic and its Boundary
Page 9
103-2 The management approach and its components
Page 9 e 36
103-3 Evaluation of the management approach
Page 9 e 36
SECTOR SPECIFIC INDICATORS
Biodiversity
- GRI 103:
Management
Approach
2016
103-1 Explanation of the material topic and its Boundary
Page 12
103-2 The management approach and its components
Pages 12 and 77
103-3 Evaluation of the management approach
Pages 12 and 77
Material
Material
Material
Material
Material
Material
Material
Material
Material
Material
9
146
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Disclosure
Page number(s) and/or URL
and/or direct answers
Material /
Non-Material
Omission
SDG
ICMM
Principles
SASB
MM1 - Amount of land (owned or leased, and ma-
naged for production activities or extractive use)
disturbed or rehabilitated
MM2 - The number and percentage of total sites
identified as requiring biodiversity management
plans according to stated criteria, and the number
(percentage) of those sites with plans in place
Page 77
Page 77
103-1 Explanation of the material topic and its Boundary
Page 9
103-2 The management approach and its components
Pages 9 and 41
103-3 Evaluation of the management approach
Pages 9 and 41
Biodiversity
Efluents
and Waste
- GRI 103:
Management
Approach
2016
Material
6; 12; 15
6; 7
14; 15
2; 6; 7
Material
Material
Material
Material
Effluents
and Waste
MM3 - Total amounts of overburden, rock,
tailings, and sludges and their associated risks
Page 41
Material
3; 6; 9; 12
6
Indigenous
Rights - GRI
103:
Management
Approach
2016
103-1 Explanation of the material topic and its Boundary
Page 18
103-2 The management approach and its components
Pages 18 and 100
103-3 Evaluation of the management approach
Pages 18 and 100
Material
Material
Material
Biodiversity
Impacts;
EMMM- 160a.3
Biodiversity
Impacts;
EMMM- 160a.3
Waste &
Hazardous
Materials
Management;
EM-MM-150a.1;
EM-MM-150a.2;
EM-MM-150a.3;
Biodiversity
Impacts;
EMMM- 160a.2
147
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Page number(s) and/or URL
and/or direct answers
Material /
Non-Material
Omission
SDG
ICMM
Principles
SASB
Indigenous
Rights
Local
Communities
- GRI 103:
Management
Approach
2016
Local
Communities
MM5 - Total number of operations taking place
in or adjacent to indigenous peoples’ territories,
and number and percentage of operations or
sites where there are formal agreements with
indigenous peoples’ communities
Page 100
Material
11
3
103-1 Explanation of the material topic and its Boundary
Page 18
103-2 The management approach and its components
Pages 18 and 106
103-3 Evaluation of the management approach
Pages 18 and 106
MM6 - Number and description of significant
disputes relating to land use, customary rights of
local communities and indigenous peoples
Page 106
Material
Material
Material
Material
MM7 - The extent to which grievance mechanisms
were used to resolve disputes relating to land use,
customary rights of local communities and indige-
nous peoplles, and the outcomes
Page 106
Material
11
11
3
9; 10
Security,
Human Rights
& Rights of
Indigenous
Peoples;
EMMM-210a.2
Security,
Human Rights
& Rights of
Indigenous
Peoples;
EMMM-210a.1
Security,
Human Rights
& Rights of
Indigenous
Peoples;
EMMM-210a.3
148
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Disclosure
Page number(s) and/or URL
and/or direct answers
Material /
Non-Material
Omission
SDG
ICMM
Principles
SASB
Resettlement
- GRI 103:
Management
Approach
2016
Resettlement
Closure
Planning
- GRI 103:
Management
Approach
2016
103-1 Explanation of the material topic and its Boundary
Page 18
103-2 The management approach and its components
Pages 18 and 105
103-3 Evaluation of the management approach
Pages 18 and 105
MM9 - Sites where resettlements took place, the
number of households resettled in each, and how
theis livellihoods were affected in the process
Pages 32 and 105
103-1 Explanation of the material topic and its Boundary
Page 14
103-2 The management approach and its components
Pages 14 and 82
103-3 Evaluation of the management approach
Pages 14 and 82
Closure
Planning
MM10 - Number and percentage of operations
with closure plans
Page 83
Material
Material
Material
Material
Material
Material
Material
Material
11
3
Community
Relations;
EMMM-210b.1;
EM-MM-210b.2
Community
Relations;
EMMM-210b.1;
EM-MM-210b.1
149
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R
I
E
U
G
O
N
R
O
T
I
V
:
O
T
O
H
P
Credits
Realization
Executive Vice-presidency of Sustainability
ESG Consulting in Integrated Reporting and
integrated editorial project
grupo report – rpt.sustentabilidade and rpt.com
Materiality
usina82
Technical support GRI, SASB, WEF indicators
EY
External assurance
PwC
Photos
Vale Image Bank and collection (photo credits)
Cover: In the photo Uenice Cunha Correa (Vale) and
Albertina Pereira Lima, at Cedere 1, in the "Quintal
Produtivo" social investment project, implemented
2019 in partnership with Vale, in Parauapebas,
Pará. Photo: Alexandre Rezende, Agência Nitro.
We would like to thank all employees who were
directly or indirectly involved in preparing the
Integrated Report 2021.
Published on May, 2022.
150
Wagons full
of Iron Ore at
Tubarão unit, in
Vitória, Espírito
Santo state
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