Suppliers and Customer Relations
Supply chains are one of the most strategic and intricate parts of a large-scale enterprise such as ours. Our relationship with suppliers and customers across the value chain — from our mine operations to the railways transporting our commodities — plays a vital role in the success of our business by ensuring timely delivery of high-quality materials and services while managing health, safety, and human rights risks. Supplier and customers relationships also provide opportunities to enhance value creation for society, especially in the regions where we operate.
In addition to working closely with suppliers to promote responsible practices across our value chain, we also engage with customers to co-create solutions that contribute to a low-carbon economy and generate shared value.
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Our approach
In 2024, we signed contracts with around 5,000 suppliers, who play a crucial role in building a more sustainable value chain. These companies operate in various sectors, such as oils and fuels, construction, equipment, maintenance, consulting, food, parts and repairs, among others. Our relationship with suppliers goes beyond the provision of services. We seek partnerships that share our values and are committed to responsible practices aligned with ESG principles. By integrating sustainability criteria into our hiring and management processes, we promote a more ethical, efficient, and resilient operation throughout the supply chain.
Vale promotes human rights compliance at every stage of our relationship with suppliers, from initial selection and onboarding to contract management, supplier development, and training, in line with the United Nations Guiding Principles on Business and Human Rights. Environmental, health, and safety considerations are also addressed in our engagement with suppliers, and we have standards and processes in place for risk monitoring, mitigation, and elimination. These are integrated into our enterprise management system, called the Vale Production System (VPS).
Photographer: Ricardo Teles
Policies and Documents
Responsible Sourcing
Since 2022, we have a clear commitment to sustainability in our supply chain. Through our Responsible Purchasing Program, we aim to integrate environmental, social, and economic criteria into purchasing decisions, encouraging more ethical and conscious practices among our suppliers.
In 2024 the program has gained even more strength: strategic decisions are now being evaluated by our Board of Directors. This change reinforces leadership involvement and helps us identify and mitigate risks throughout the value chain, promoting an increasingly positive impact.
The first step to strengthen our sustainable performance in the supply chain was the creation of the ESG Criticality Matrix, developed based on the segmentation of our supplier base in Brazil. This matrix considers the environmental, social, and governance (ESG) risks associated with each purchasing category, in line with the guidelines of ISO 20400 – Sustainable Procurement. With it, we were able to classify suppliers according to their potential impacts and levels of exposure to these risks. In 2024, we revised the ESG Criticality Matrix for Vale's new category tree and expanded its application to all regions where we operate, reinforcing our global commitment to responsible practices. Still this year, we updated the purchasing category strategy tool and initiated a new segmentation of supplier’s process, now considering Vale's business strategy, which allows a more robust risk classification, combining ESG criteria with the supplier’s business relevance.
Photographer: Ricardo Teles
The ESG risk analysis encompasses a wide range of topics, such as greenhouse gas emissions, biodiversity, waste management and water resources, integrity, child labor, and labor analogous to slavery, among others. This approach allows us to make more conscious decisions aligned with our values and commitments to sustainable development. In 2024, all suppliers with active contracts underwent a socio-environmental due diligence process as part of our registration. Of these, 1563 were classified as high or very high risk in our ESG Criticality Matrix and represent more than 50% of Vale's total spend in Brazil.
In addition, about 1,541 non-Tier 1 suppliers were evaluated based on Integrity criteria, focusing on the prevention of risks related to corruption.
Among the suppliers evaluated with potential negative impact, 532 were prioritized for additional analyses, including financial, health and safety, human rights, as well as labor and social security issues, of which 90% received action plans for alignment with our practices and standards. The due diligence is conducted by an independent company, using a methodology widely recognized in the market, which ensures technical rigor and alignment with international best practices.
As part of our commitment to the sustainable development of the supply chain, we provided ESG training for 925 suppliers who represent 59% of those classified as critical in the ESG Matrix Brazil. The actions were carried out by the departments responsible for Human Rights, Climate Change, and the Partilhar Program, focusing on raising awareness and strengthening capacities.
Internally, we also invest in training our internal stakeholders: in 2024, approximately 270 buyers were trained on the Responsible Purchasing Program, reinforcing the strategic role they play in the evolution and effectiveness of the process.
Photographer: Ricardo Teles
Mobilized contractors
In 2024, of Vale’s 109,000 contracted workers, around 100,000 were engaged in the company’s operations in Brazil, performing a wide range of roles — from mining operations to administrative, transportation, and technology support services.
These workers play a crucial role in our success, and we are committed to ensuring their safety, well-being, and benefits are equivalent to those of our own employees.
In Labour Risk Management (GRT) is responsible for monitoring labor relations and the health and safety of these workers. Monthly checks include reviews of social security payments for all workers. Contractors are also entitled to health insurance.
During the course of a contract, we perform due diligence assessments on aspects that include human rights and health and safety in facilities such as accommodations, dorms, changing rooms, cafeterias, transportation, etc., as well as mandatory documentation and training on aspects such as sustainability, human rights, and diversity.
Risk and impact assessment
A responsible business model requires close oversight throughout the supplier journey, from onboarding to the end of the contract and demobilization. Before entering a business relationship with Vale, all our suppliers undergo due diligence based on publicly available information, consistent with their scope of supply. This due diligence is conducted as part of Vale's Ethics & Compliance Program and covers information related to health and safety, the environment, human rights, and supplier integrity. In Brazil, we also monitor the federal slave labor dirty list and legal environmental requirements, and conduct on-site audits in specific cases.
During the hiring process, suppliers commit themselves, through the Supplier Code of Conduct, to dignified working conditions, combating child labor and sexual exploitation, and respecting the freedom of association and collective bargaining.
Still at the signing of the contract, to reinforce our commitment to responsible purchasing practices, our partners receive the SSMA Guide for suppliers and are engaged through anti-corruption clauses, health, and safety measures, due to the critical nature of the category regarding the management of greenhouse gas emissions, biodiversity, among other issues. The commitments made are periodically reassessed throughout the entire lifecycle of the contract.
This way, Vale ensures the alignment of its purchasing practices with the Supplier Code of Conduct and compliance with ESG requirements, contributing to the prevention of potential risks.
Supplier performance is evaluated throughout the entire contract, and we periodically assess suppliers on social, environmental, humanitarian, performance, and governmental relationship aspects.
To detect, prevent and mitigate risks and resulting impacts, training is carried out, self-diagnosis questionnaires and documentary and field inspections are carried out (including accommodation inspections). When necessary, the supplier is asked to draw up an action plan to address identified weaknesses.
Both risk classification and human rights inspections are carried out by an independent 3rd party assessment, which also verifies and consolidates all training data and completed questionnaires, and also monitors suppliers' action plans. The external consultancy uses standards and methodologies of a recognized industry to carry out verification and monitoring, such as Regulatory Standard No. 4 (NR-4), the Global Estimates of Modern Slavery report, data from the Labor Inspection Secretariat, the Atlas of Children's Rights and Business (Workplace Index), Business for Social Responsibility, Countries Listed as Conflict-Affected and High-Risk Areas, etc.
Supplier monitoring
| Initiative | Description | Frequency |
|---|---|---|
Local labor obligations
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Monitor the labor obligations of suppliers with employees mobilized in Brazil (contracts and subcontracts), minimizing exposure to risks in various aspects, such as: safety, exhaustive working hours and labor liabilities.
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Monthly
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Forced labor dirty list
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Cross-checking our vendor list against a public forced labor dirty list published by the Brazilian Ministry of Labor and Employment.
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Quarterly
|
Public sanctions list
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Cross-checking Vale’s active vendor list with the public sanctions list from the Brazilian Federal Government’s Transparency Portal.
|
Monthly
|
Carbon emissions management program
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Monitoring and engaging key suppliers in managing their emissions as part of the CDP Supply Chain program.
|
Annual
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Tracking public sanctions (global sanctioned entities and countries policy, POL-0025-G)
|
This policy applies to Vale and our wholly-owned subsidiaries and is replicated by our direct and indirect subsidiaries in Brazil and other jurisdictions in accordance with their bylaws and applicable legislation.
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Quarterly
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Supplier Performance Index (IDF)
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An index that tracks our suppliers’ performance in criteria such as technical quality, environmental protection, occupational health and safety, respect for employees, and continuous improvement.
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Six-monthly
|
Compliance
Vale operates a Whistleblowing Channel as part of our Ethics & Compliance Program. This channel can be accessed by any person, both within and outside the organization, to report any suspected or confirmed violations of our Code of Conduct. Learn more here.
Vale’s anti-corruption practices include specific policies for our supply chain, such as our Global Anti-Corruption Manual, which translates Vale’s Global Anti-Corruption Policy for suppliers and contractors. For further information about these practices, see our Ethics & Compliance Program.
Photographer: Ricardo Teles
Since 2019, Vale has conducted human rights due diligence throughout the supplier journey, from onboarding to contract management. To enhance due diligence and mitigate risks, we are now internationalizing this process while focusing our efforts on risk and impact mitigation. Some of the critical issues related to our supply chain include:
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Degrading working conditions and modern slavery;
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Child labor;
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Sexual exploitation of children and adolescents;
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Workplace and sexual harassment.
When classifying our suppliers on human rights risks, we consider, among other aspects, the supplier’s industry and location. We mitigate these risks through training, self-assessment questionnaires, document inspections, and on-site inspections. When necessary, we request that suppliers develop an action plan to address identified weaknesses.
Between 2019 and 2024, 314 human rights inspections were carried out at suppliers in Brazil, Malaysia and Oman.
For further information, click here.
Reducing greenhouse gas (GHG) emissions in alignment with the Paris Agreement is part of Vale's goal to reduce indirect emissions (Scope 3) in 15% by 2035. Which is, those resulting from activities in its supply chain, both in supplies and in customers.
In support of this target, we actively engage our suppliers in managing their emissions and reducing environmental impacts for us to collectively achieve this objective.
Since 2011, Vale has worked to raise supplier awareness about climate change and engage them in improving their emission management. In addition to being a contractual requirement, suppliers are required to complete an annual GHG questionnaire. Emissions-critical suppliers are also invited to participate in the CDP Supply Chain Program, which assesses aspects including health and safety, the environment, human rights, and integrity. Within the CDP platform, management data, governance practices, and key performance indicators are analyzed to identify risks and opportunities for emissions reduction.
For the fifth consecutive year, we invited our suppliers to participate in the climate change program questionnaire. In 2024, we designated 201 companies to the CDP, selected for their critical impact on Greenhouse Gas (GHG) emissions according to our ESG Matrix. The result was significant: a 96% response rate, with 193 engaged suppliers. This high rate reinforces our commitment to promoting a more sustainable value chain aligned with best environmental practices. Notably, about 70% of the respondents (139 suppliers) have participated in previous editions, demonstrating ongoing engagement with climate management.
To learn more about Vale’s emissions reduction initiatives and targets, visit our Climate Change page.
Responsible sourcing of base metals
Vale Base Metals, a subsidiary established to consolidate our production operations in this segment, is committed to ensuring responsible sourcing and supply of base metals and minerals. It achieves this by applying effective risk management across the value chains for metals such as nickel, copper, cobalt, platinum, palladium, ruthenium, rhodium, iridium, gold, and silver.
Vale Base Metals will not tolerate or profit from human rights violations or support of non-state armed groups and may end relationships with any upstream supplier linked to such activities. The company is committed to managing the risks outlined in the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (OECD Guidance), including financing of conflict, human rights abuses, bribery, and fraudulent misrepresentation of the origin of minerals, money laundering, and public or private security forces.
To ensure compliance with Vale's supplier expectations, additional Due Diligence requirements include:
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Conducting third party due diligence on all third parties before entering any business relationship;
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Performing annual due diligence on mineral and basic metals suppliers and conducting annual risk assessments in alignment with OECD guidelines;
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Third-party audits to assess risk management within the supply chains;
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Continued support for the Extractive Industry Transparency Initiative (EITI) through its membership in the International Council of Mining and Metals (ICMM);
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Publicly reporting on base metals due diligence activities;
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Training of employees and contractors involved in procurement and handling of these materials in our processes to manage risks;
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Ensuring that the public and contractors are aware of and understand how to access Vale’s reporting mechanism for raising concerns or complaints.
For further details, see our Responsible Sourcing Policy Statement for Base Metals Minerals and Metals.
Explanatory note
Does not include steel customers and shipping suppliers in the group
Vale Customer Satisfaction Survey
The satisfaction survey is part of a process that is coordinated by the Customer Strategic Solutions, with support from the Sales and Technical Assistance teams. The cycle can be better seen in the figure below:
Vale's satisfaction target is 7 on this scale. In the last two years, Vale's global average score was higher than this target, as can be seen in the table.
| Satisfaction Measurement | Unit | FY 2021 | FY 2022 | FY 2023 | FY 2024 | The target for FY 2024? |
|---|---|---|---|---|---|---|
Score 0 to 10
|
Average number based on all answer collected
|
8.34
|
8.55
|
8.88
|
8.88
|
7.00
|
Big numbers from 2025 Customer Survey
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