Indicators - ESG
Indicators
In addition to setting environmental and social goals, we seek to align the sustainability performance of the various business areas to their teams’ variable remuneration, while also taking into account economic and operational factors.
The KPIs are part of the variable remuneration of all Vale employees and impact all hierarchical levels, including the CEO.
Advances in Public Commitments
Our commitments are connected to the UN's 2030 Agenda and in line with global trends. Major advances:
2030 Commitments
1- Base year 2017 Scopes 1 and 2 emissions reduced from 13.5 million tonnes of CO2 e to 12.2 million CO2 e due to divestments in coal and ferroalloys assets, manganese operations (except Simões Filho plant), in addition to the Centro-Oeste system and Vale Nickel (Dalian) Co., carried out in 2022.
2- Scope 3 emissions for the base year of 2018 reduced from 585 million tons of CO2 e to 553 million CO2 e, due to the same divestments described in the previous note.
3- Absolute greenhouse gas (GHG) emissions reductions from scopes 1 and 2 (market based).
4- An increase in Vale’s Scope 3 emissions is expected from sales volume growth due to the likelihood of increased demand for our products.
5- In 2021, the method for monitoring the renewable electricity target in Brazil was changed from % renewable self-production to % renewable consumption.
6- The percentage of renewable electricity varies from year to year depending on consumption, the volume of certificates obtained, and the electricity generation matrix of each country.
7- In this indicator, the production volumes of Vale’s main products, such as pellets, coal, nickel and copper, are converted into ton of iron ore equivalent.
8- Until 2021, the Energy Intensity indicator considered the main energy sources in Vale’s matrix (coal/coke, fuel oil, natural gas and diesel). After 2022, this indicator will consider the sum of all energy consumption within the organization divided by the published production for the year, transformed into MFe-eq. In addition, divestments concluded in 2022 were also reflected in the 2017 target baseline.
9- People living on less than USD 2.15 a day, according to the World Bank.
Other Vale commitments
1- Consider coordinators and above. Does not consider coordinators.
2- The emergency level it is a category established by Brazilian legislation (ANM 95/2022) to classify potential risks that could compromise dam safety.
3- The term “decharacterization”, according to Brazilian legislation, means functionally reintegrating the structure and its contents into the environment, so that the structure no longer serves its primary purpose of acting as a tailings containment.
Indexes and ratings
Performance in ratings
¹Updated in June 2023.
²Update in July 2023.
Social KPIs
Short term KPIs:
Indicator
Carry out a self-assessment of the risk of human rights violations
Goal
100% operations and complexes with self-assessment
Result
positivo
Indicator
Carry out a Critical Issues Treatment Plan
Goal
100% of Critical Issues with Treatment Plans
Result
positivo
Indicator
Evolve in implementing the Social Performance Model
Goal
Social processes being implemented
Result
In progress
Indicator
Reduce events with community members
Goal
Reduce by 10%
Result
Not started
|
Year
|
Indicator
|
Goal
|
Result
|
|---|---|---|---|
|
2019
|
Carry out a self-assessment of the risk of human rights violations
|
100% operations and complexes with self-assessment
|
|
|
|
Carry out a Critical Issues Treatment Plan
|
100% of Critical Issues with Treatment Plans
|
|
|
2021
|
Evolve in implementing the Social Performance Model
|
Social processes being implemented
|
In progress
|
|
2022
|
Reduce events with community members
|
Reduce by 10%
|
The result achieved was 8.7%. There was a 32% reduction in fatal injuries.
|
Medium term KPI:¹
Indicator
Implementing Community Relationship Plans (CRP) in priority communities
Goal
100% priority communities with PRCs
Result
69% (2021)
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Year
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Indicator
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Goal
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Result
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|---|---|---|---|
|
2026
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Implementing Community Relationship Plans (CRP) in priority communities
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100% priority communities with CRPs
|
78% (2022)
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Long Term KPIs:²
Indicator
Lift people out of extreme poverty
Goal
500,000 people lifted out of extreme poverty
Result
In progress
Indicator
Improve the position in the social requirements of the main external assessments
Goal
Being in the TOP 3 on the social requirements of the main reviews
Result
In progress
Indicator
Contribute with IPTC³ in promoting their rights, valuing culture and ethnodevelopment
Goal
Indigenous communities neighboring Vale operations with UNDRIP Rights Plans4
Result
In progress
|
Year
|
Indicator
|
Goal
|
Result
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|---|---|---|---|
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2030
|
Lift people out of extreme poverty
|
500,000 people lifted out of extreme poverty
|
In 2022, we have defined the methodology for action and planning of actions for the coming years. In 2023, we aim start concept tests to benefit 30 thousand people.
|
|
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Improve the position in the social requirements of the main external assessments
|
Being in the TOP 3 on the social requirements of the main reviews
|
We have evolved in the ratings of the main external indices and ratings (MSCI, Sustainalytics, and DJSI). See Indexes and ratings table.
|
|
Contribute with IPTC³ in promoting their rights, valuing culture and ethnodevelopment
|
Indigenous communities neighboring Vale operations with UNDRIP Rights Plans4
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We formalized the commitment with the Kayapó people for the advancement of the Consultation Protocol of the Kayapó Indigenous Lands, which will contribute to their right to Free, Prior and Informed Consultation. The formulation of the protocol began in December 2022.
|
1 See www.vale.com/web/esg/impact-to-communities
2 See www.vale.com/web/esg/our-strategy-and-commitments
3 Indigenous peoples and traditional communities
4 UN Declaration on the Rights of Indigenous Peoples
Environmental Compliance
Environmental fines
Respect for the environment is an essential condition to ensure the continuity of Vale’s operations, which depends on environmental resources. Nevertheless, mining has significant impact on the territories and its natural attributes where it is undertaken. Therefore, within this context, Vale has developed and uses, in all areas where the company operates, an environmental management system that maps environmental risks in order to prevent and mitigate those risks, and minimize, compensate and remediate environmental impacts caused.
Our Management
Vale's environmental management process aims to establish responsibilities to periodically analyze and evaluate our compliance with environmental legal obligations and other requirements applicable to our activities. Internal and external teams periodically carry out environmental audits and legal compliance assessments of the environmental management system.
Despite the established management practices, Vale has received, in 2019, 74 significant fines for non-compliance with environmental laws and regulations, amounting to USD 153.5 million, in addition to nine non-monetary sanctions[1], out of which USD 125.5 million relates to the rupture of Dam I at the Córrego do Feijão Mine in Brumadinho, MG. The other significant fines imposed for non-compliance with environmental laws and regulations in 2019 refer to matters such as alleged non-compliance with constraints, discharge of effluents in disagreement with legislation, pollution, installation or operation of activity without the proper licenses or permits, among others.
In 2020, 12 significant fines totaling US$ 30.6 million were imposed for non-compliance with environmental laws and regulations. Vale did not identify any non-monetary sanctions in 2020.
In 2021, the Vale group companies received 21 significant fines 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.
In 2022, Vale received 18 fines and six non-monetary sanctions related to significant cases1 of non-compliance with laws and regulations. In the same year, the company paid 21 fines related to non-compliance with laws and regulations in the environmental and mining regulatory areas, totaling USD 141,515.51.
For this purpose, the following definitions are applicable:
"Significant fines": means monetary penalties equal to or greater than $10,000 USD (or equivalent when converted from local currency).
"Non-compliance with environmental laws and regulations": a non-compliance with environmental laws and regulations occurs when an authorized body (e.g., governmental body, independent commercial or non-commercial regulator, etc.) determines that a law, regulation, code, etc. related to environmental or ecological issues has been breached. This definition is essentially in line with the GRI G4 Sustainability Reporting Guidelines definition of environmental laws and regulations: refers to regulations related to all types of environmental issues (that is, emissions, effluents, and waste, as well as material use, energy, water, and biodiversity) applicable to the organization. This includes binding voluntary agreements that are made with regulatory authorities and developed as a substitute for implementing a new regulation. Voluntary agreements can be applicable if the organization directly joins the agreement or if public agencies make the agreement applicable to organizations in their territory through legislation or regulation.
“Ongoing legal proceedings/allegations”: if an authorized body (e.g., governmental body, independent commercial or non-commercial regulator, etc.) has already determined the company has breached a law, regulation, code, etc. related to environmental or ecological issues and an initial judgment has been entered, the incident is considered a non-compliance with environmental laws and regulations, regardless of the company's ability to appeal.
Read more at the Integrated Report 2021
[1] Information based on Vale's database system of administrative and judicial proceedings.
Environmental incidents
All Vale environmental² incidents¹ are recorded and addressed. The company follows international principles regarding for the management of environmental incidents, from the initial communication, adoption of immediate actions, to the investigation of causes, implementation of corrective and comprehensive measures to eliminate the unwanted effects of the event and recording of lessons learned.
In 2022, 24 environmental incidents occurred, compared to 33 events that occurred in 2021. Regarding critical and very critical incidents, there have been no records of incidents in these classifications since 2020.
The environmental incidents are distributed as shown below:
Brazil
Canada
Canada
Indonesia
All incidents underwent investigation conducted by a multidisciplinary team. Proper investigation enables the identification of contributing factors, risk reduction, implementation of new environmental controls, and improvement of industrial processes.
1 Incident: An unplanned event that resulted in, or could have resulted in, loss/impact.
2 Environmental Incidents: An unplanned event that resulted in adverse environmental impact.
Note: Environmental incidents with actual severity of severe, critical, and very critical, as well as potential severity of critical and very critical, were reported on the ESG portal in accordance with the internal Planning, Development, and Management Standard.
Indonesia
All accidents were investigated by a multidisciplinary team. Appropriate investigation permits to identify contributing factors, reduce risk, include new environmental controls and improve industrial processes.
1 Incident: An unplanned event that resulted, or could have resulted, in a loss/impact.
2 Environmental Incidents: Unplanned event which resulted in an adverse environmental impact.
Note: The Environmental Incidents with grave, severe and very critical severity were reported on the ESG portal, according to the internal planning, development and management norm.