Suppliers and customers - ESG
Suppliers and customers
From our operations, mines, and railroad tracks to outsourcing, supply management permeates Vale's entire production chain and is strategic to our business.
The success of the operations and projects relies on the agility in purchasing materials and services, the correct choices of items, the inventories and the management of health, safety and sustainability variables by our suppliers. Therefore, our suppliers play a fundamental role in the search for best practices towards sustainable development.
We share with our suppliers the values that guide our actions, such as the priority to life, caring for the planet and valuing people.
Our Supply Management
In 2022, we established a contractual relationship with approximately 8,000 suppliers, of which around 18% are classified as critical in ESG and represent approximately 25% of spend. They are consumer goods companies, service providers and consultants, among others.
Sustainability themes, from ethics to health and safety and human rights, permeate our relationship with our partners in the value chain, in line with our main value, which is life in the first place.
The themes of Environment, Health and Safety and Human Rights permeate our supplier journey with regulations and processes for monitoring, mitigating and eliminating risks, being included in our management system, the VPS (Vale Production System).
Respect and promotion of Human Rights in the supply chain are reinforced from the registration, selection and hiring stages to contract management and development and training of suppliers, in line with the United Nations Guiding Principles on Business and Human Rights.
Policies and Corporate Documents
To guide our relationship and suppliers’ management, we are guided by the support of some important documents to govern our commitments with ethics and integrity and inform non-negotiable guidelines so that suppliers that work with Vale are committed to operating their businesses in a responsible manner. Are they:
To guide our relationship and suppliers’ management, we are guided by the support of some important documents to govern our commitments with ethics and integrity and inform non-negotiable guidelines so that suppliers that work with Vale are committed to operating their businesses in a responsible manner. Are they:
- Code of Conduct - global coverage, document brings together the main fundamentals that support our business, bringing clarity of governance, guidelines, and training, helping in our daily judgments, with the promotion of open and transparent dialogue.
- Anti-Corruption Guide for suppliers and other types of third parties - Global coverage, this guide summarizes the main topics related to the Ethics & Compliance Program for Vale's suppliers and other third parties. The information in this guide complements Vale's Principles of Conduct for Third Parties.
- Diversity and Inclusion Policy - covering Brazil, document establishes guidelines and general principles so that Vale's actions take place in respect for human rights in the development of its activities, partnerships and in its production chain, in all regions where it is present and throughout the life cycle of their ventures.
- Global Anti-Corruption Policy - Global coverage, document aims to reinforce the culture of integrity and ensure compliance with the main requirements of the anti-bribery and anti-corruption laws of the various jurisdictions and countries where Vale and its subsidiaries operate.
- Human Rights Policy - global coverage, document establishes guidelines and general principles so that Vale's actions respect human rights in the development of its activities, partnerships and in its production chain, in all regions where it is present and throughout the life cycle of its enterprises.
- Principles of Conduct for Third Parties - global coverage, complements our Code of Conduct and shares our values and ethical principles with suppliers and other third parties that work in partnership with us.
Requirements to Registration
Our suppliers are managed according to the same compliance standards that are upheld within the Company with respect to social and environmental safety and ethics and integrity aspects. During this process, Vale verifies the history of third-party supplier companies and their partners early in the registration phase, analyzing their compliance with the requirements of Vale's Global Anti-Corruption Program. We also verify public information regarding slave labor sanctions and public data published by the Brazilian Federal Government (CEIS, CEPIM and CNEP), among other criteria. If any irregularity is found, the supplier is not registered and may be deemed disqualified to serve us and, consequently, will not be registered.
Global Anti-Corruption Manual
Information Security Policy
Acquisition standard
- Global Anti-Corruption Manual
- Information Security Policy
- Acquisition standard
Our Strategy
Responsible Sourcing Program
In 2022, we started structuring Vale's Responsible Procurement Program, whose implementation and management are under the responsibility of the Procurement Department. The program considers Environmental, Social and Economic aspects in the management of the Value Chain, aiming to increasingly integrate our processes, mitigate risks and generate value.
As a first step, we built a ESG Criticality Matrix for the Supply Chain, based on the segmentation of our Brazilian supplier base and analysis of purchasing categories from a socio-environmental perspective and in line with the ISO 20400 – Purchasing guidelines Sustainable.
Through the Criticality Matrix, suppliers with active contracts in Brazil were analyzed, representing 50% of our global suppliers where they were classified according to their potential impacts and levels of ESG risks, following the criteria below:
- Organization of the grouping of our purchasing categories based on more than 35 thousand active contracts in Brazil;
- Identification and separation of categories for purchasing materials and services and grouping these categories into 54 macrogroups, considering categories with similar production processes and/or labor profile;
- Analysis and classification of the criticality of each macrogroup of supply categories, analyzed by the axes of Potential impacts (level of severity and probability of ESG impact, defined by its sector of activity) x Co-responsibility (level of mutual responsibility for any impact (reputational), legal, etc.).
- In 2022, 845 suppliers considered critical in ESG were evaluated, of which 31.6% received action plans.
Responsible Sourcing for Base Metals Minerals and Metals
Vale Base Metals is committed to responsibly sourcing minerals and metals feeds, including nickel, copper, cobalt, platinum, palladium, ruthenium, rhodium, iridium, gold, and silver. We require our leaders, employees, suppliers, and contractors to uphold this commitment.
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 Annex II of 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. Additional Policies and guidance are in place to support the management of Annex II risks.
To ensure compliance with Vale's supplier expectations, additional Due Diligence requirements include:
Third Party Due Diligence:
- Conducting Third Party Due Diligence on all Third Parties before entering any business relationship.
- Conducting Due Diligence on existing suppliers of Base Metals minerals and metals feeds on an annual basis.
Risk Based Assessment and Compliance:
- Annual risk-based assessments of metals and minerals suppliers aligned with the 5-Step Due Diligence framework defined in the OECD Guidance.
- Enhanced Due Diligence on suppliers based on results of risk assessments, including obtaining additional information from Third Parties and on-site assessments.
- Compliance with risk mitigation requirements defined in the OECD Guidance.
- Third Party audit to assess Vale's risk management in its Base Metals minerals and metals supply chains.
Support for Transparency and Disclosure:
- Continued support for the Extractive Industry Transparency Initiative (EITI) through its membership in the International Council of Mining and Metals (ICMM).
- Publicly reporting on Base Metal's Due Diligence activities.
Employee and Contractor Training:
- Training of employees and contractors involved in procurement and handling of these materials in our processes to manage risks.
Communication and Accessibility:
- Communicating Base Metal's requirements to suppliers and ensuring Vale's Supplier Code of Conduct is referenced in supplier contracts.
- Ensuring that the public and contractors are aware of and understand how to access Vale's listening-response mechanism to register any concerns or grievances.
In 2023, we will continue the implementation of this program.
For more details see the Base Metals Policy Statement on Responsible Sourcing Minerals and Metals.
Initiative
Supplier’s Code of Ethics and Conduct
Description:
Defining the main guidelines that guide Vale's relationship with its suppliers and subcontractors. Its acceptance by the supplier is a mandatory step before registering the supplier in Vale's register. (Global Initiative)
Global Anticorruption Program
Description:
The Global Anti-Corruption Program is applicable to all employees, officers, suppliers, distributors, consultants, representatives, agents, brokers or any other intermediaries or third parties engaged to represent Vale or to act on behalf, for or on behalf of Vale. - Global Initiative
Third-party Due-Diligence
Description:
Evaluating the reputational risk of suppliers and their partners. Mandatory phase before registration with Vale, by periodic routine or on demand. Several parameters are evaluated, such as Vale's history, negative media, check on market compliance web portals, among others, for the company and its partners. (Global Initiative)
Environmental licenses and legal requirements
Description:
Compliance with environmental legal requirements, as applicable, to applicable suppliers (specific industries and categories). In certain cases, there may be on-site audits by Vale's Environment department. (Brazil Initiative)
Health and Safety Evaluation
Description:
This document applies to companies (Contractors and their subcontractors) in the bidding process and to companies performing Controlled Activities whose contractual scope includes provision of service. – Brazil Initiative
Risks and Impacts Management
In order to build a responsible business model that involves Vale's entire supply chain, it is necessary to monitor the supplier's journey, from the registration stage to the end of the contract and demobilization.
Before starting a commercial relationship with Vale, all our suppliers undergo a check called Due Diligence, where a reputational assessment is made based on public information and the scope of work to be performed. This verification process is part of Vale's Ethics & Compliance Program and considers information on Health, Safety, Environment, Human Rights and Integrity for suppliers.
In our management process, we follow the steps:
Registration
- Risk analyses are performed globally in 100% of the new registered suppliers through a background check and the submission of documents, such as a self-declaration form,
- In Brazil, a consultation to the “Dirty List” of slave labor is done, crossing the information with 100% of the supplier base.
Besides that, during the registration phase of new suppliers, each supplier is asked to accept and/or comply with the following guidelines:
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Initiative |
Description
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Principles of Conduct for Third Parties
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Defining the main guidelines that guide Vale's relationship with its suppliers and subcontractors. Its acceptance by the supplier is a mandatory step before registering the supplier in Vale's register. (Global Initiative)
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Global Anticorruption Program
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The Global Anti-Corruption Program is applicable to all employees, officers, suppliers, distributors, consultants, representatives, agents, brokers or any other intermediaries or third parties engaged to represent Vale or to act on behalf of, for the benefit of or in the interest of Vale. (Global Initiative)
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Third-party Due-Diligence
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Evaluating the reputational risk of suppliers and their partners. Mandatory phase before registration with Vale, by periodic routine or on demand. Several parameters are evaluated, such as Vale's history, negative media, check on market compliance web portals, among others, for the company and its partners. (Global Initiative)
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Environmental licenses and legal requirements
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Compliance with environmental legal requirements, as applicable, to applicable suppliers (specific industries and categories). In certain cases, there may be on-site audits by Vale's Environment department. (Brazil Initiative)
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For more information on supplier registration, click here.
Selection, Quotation and Contracting
Suppliers commit to expected behavior standards in accordance with Vale's policies (see section “Policies and Corporate Documents), and commit, through contractual clauses, to :
- Provide decent working conditions;
- Combat child labor and sexual exploitation;
- Combat forced labor or modern slavery;
- Not tolerate discrimination; and
- Respect freedom of association and collective bargaining;
- Anti-corruption clauses;
- HSE clauses.
Contracts and Supplier Management
In the contract management phase, the risk management of suppliers with current contracts is carried out. The performance of suppliers is measured throughout the entire provision of services and supplies, and periodic monitoring of suppliers is carried out regarding social, environmental, humanitarian, performance and government relations aspects:
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Initiative
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Description
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Frequency
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Local Labor Obligations
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Monitoring contracts with third parties in Brazil regarding labor aspects, minimizing exposure to risks in various aspects such as safety, exhaustive working hours, labor debts (Third Party Contracts Service Center).
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Monthly
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Dirty list of employers using slavery-like Labor
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Crossing Vale's register of suppliers with the public dirty list of slave labor, published by the Brazilian Ministry of Labor.
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Monthly
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Government public sanction list
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Crossing the register of active suppliers of Vale with the public sanction list of Brazil’s Transparency web portal (CEIS, CEPIM, CNEP).
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Monthly
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Carbon emissions management program in the value chain
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Monitor and engage key suppliers in managing their emissions through the CPD Supply Chain Program.
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Annual
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Public sanctions follow-up (global Sanctioned entities and countries POL-0025-G)
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This policy applies to Vale and its subsidiaries 100% and shall be reproduced by its direct and indirect subsidiaries, in Brazil and in other countries, always respecting the instruments of incorporation and applicable law.
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Quarterly
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Supplier Development Index
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Monitor, through an established indicator, the performance of Vale suppliers through five different criteria (technical quality, environmental protection, health and safety, respect for employees and continuous improvement) aiming at transparency and quality in the supplier relationship.
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Biannual
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Initiative
Local Labor Obligations
Description:
Monitoring contracts with third parties in Brazil regarding labor aspects, minimizing exposure to risks in various aspects such as safety, exhaustive working hours, labor debts (Third Party Contracts Service Center).
Frequency:
Monthly
Black-list of employers using slavery-like Labor
Description:
Crossing Vale's register of suppliers with the public dirty list of slave labor, published by the Brazilian Ministry of Labor.
Frequency:
Monthly
Government public sanction list
Description:
Crossing the register of active suppliers of Vale with the public sanction list of Brazil’s Transparency web portal (CEIS, CEPIM, CNEP).
Frequency:
Monthly
Greenhouse Gas Emissions Program (GHGE)
Description:
Listing GHG emissions from active suppliers according to GHG Protocol.
Frequency:
Annual
Public sanctions follow-up (global Sanctioned entities and countries POL-0025-G)
Description:
This policy applies to Vale and its subsidiaries 100% and shall be reproduced by its direct and indirect subsidiaries, in Brazil and in other countries, always respecting the instruments of incorporation and applicable law.
Frequency:
Quarterly
Supplier Development Index
Description:
Monitor, through an established indicator, the performance of Vale suppliers through five different criteria (technical quality, environmental protection, health and safety, respect for employees and continuous improvement) aiming at transparency and quality in the supplier relationship.
Frequency:
Biannual
Impact Management
Carbon emissions management in the value chain
Vale is committed to making its suppliers aware of the issue of climate change and engaging them in improving the management of their emissions. Since 2011, we have encouraged our value chain in emissions management, through a contractual clause and the application of an annual questionnaire on Greenhouse Gases (GHG). Reducing GHG emissions in line with the Paris Agreement is part of Vale's commitments for 2030.
In addition to the target established for emissions resulting directly from its operation (scopes 1 and 2), Vale is committed to also act on indirect emissions, wich resulting from activities related to the production of goods and services necessary for its production itself. The engagement of our suppliers in the management of their emissions and the commitment to reduce environmental impacts are essential to achieve this goal together.
Vale suppliers considered key in terms of emissions in the supply chain are annually invited to participate in the CDP Supply Chain program. CDP is a non-profit organization that operates the global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts. To learn more about the organization, click here.
To learn more about Vale's actions and goals for reducing emissions, visit our Climate Change page.
- There is continuous monitoring of updates to the Dirty List of Slave Labor and if any of Vale's suppliers are included in this list, an internal process is opened to assess the case and establish an action plan.
- Center for Evaluation of Third-Party Contracts (NACT): Monitors suppliers with employees mobilized within Vale areas, including projects, in Brazil, in labor relations and health and safety.
- Contractor Management System (SGC): monitors the occupational health and safety aspects and risks pertinent to the entire life cycle of the applicable contracts: administration, third-party mobilization, mobilization of equipment and vehicles, daily work report, SPS control, among other functionalities that support managers and inspectors in their activities.
- Supplier Performance Index (IDF): monitors the performance of suppliers in Brazil, based on technical criteria of health and safety, environmental protection, respect for labor rights and continuous improvement through an action plan. It underwent, revision and was improved in 2020. Among the criteria for evaluation of contract renewal or not are the results of the IDF, but also the performance of contractors verified in on site audits /due diligence of HSE and Human Rights and Human Rights allegations.
During Mobilization phase, contracted employees who will work in our operating units or offices, everyone must comply with Health and Safety requirements, as well as other legal requirements.
At this stage, there occurs the checking process to ensure that these employees have the necessary documentation and training, including sustainability issues such as human rights, diversity, etc. During the execution of the contract, Human Rights and health and safety checks are carried out in facilities such as accommodation, republics, locker rooms, cafeterias, transport, etc. If any non-compliance is identified in the documentary or field inspections, there will be a stoppage of the activity, notification, request for a corrective action plan and even badge blocking.
Compliance
Vale has a Whistleblower Channel as part of its Ethics & Compliance Program. The Channel can be accessed by anyone, inside or outside Vale, who wishes to report a case of suspicion or violation to our Code of Conduct.
The handling of demands and critical internal issues that may impact or violate Human Rights are addressed at different levels according to their complexity. When the matter cannot be resolved locally, it is submitted to higher levels, including regional, business, and national management committees and even the Executive Board or the Board of Directors and their committees.
Anti-corruption
Our Global Anti-Corruption Policy establishes guidelines that guide our relationships with suppliers and third parties. Through the Ethics & Compliance Program, Vale performs monitoring and control actions to monitor the adherence of the supply chain to the company's anti-corruption rules, as mentioned in the item: Policies and Documents
The handling of demands and critical internal issues that may impact or violate Human Rights are addressed at different levels according to their complexity. When the matter cannot be resolved locally, it is submitted to higher levels, including regional, business, and national management committees and even the Executive Board or the Board of Directors and their committees.
Anti-corruption
Our Global Anti-Corruption Policy establishes guidelines that guide our relationships with suppliers and third parties. Through the Ethics & Compliance Program, Vale performs monitoring and control actions to monitor the adherence of the supply chain to the company's anti-corruption rules, as mentioned in the item: Policies and Documents
Human Rights
The Due Diligence of Human Rights in suppliers has been implemented by Vale since 2019 and is established throughout the supplier's journey, from the registration stage to contract management. In recent years, we have intensified risk assessment, application of self-diagnosis questionnaires, document and field inspections and monitoring of suppliers' action plans. The next steps are the application of the process in an international unit in 2023.
Through the Bowtie method - a methodology used to control risks - the potential causes of risk of Human Rights Violations are analyzed, grouped into three critical issues: Degrading Working Conditions and Modern Slavery; Child Labor and Risk of Sexual Exploitation of Children and Adolescents and Violation of Human Rights in Labor Relations.
With the improvement of the Due Diligence process of Human Rights management in suppliers, Vale established a risk assessment process for suppliers that classifies the sensitivity of contracts and the vulnerability of the supplier based on its Human Rights management practices. For suppliers assessed as high risk from the perspective of Human Rights, training, document and field inspections are carried out and, when necessary, the preparation of an action plan to address weaknesses is requested. From 2019 to 2021, 35 suppliers were inspected. In 2022, we intensified the number of inspections covering 80 suppliers.
It is important to emphasize that in the case of the Human Rights risk assessment, like the environmental assessments, the focus is on the risk that the company's activities pose to Human Rights with respect to it directs employees and/or contractors, employees in the supply chain, and members of the communities - including indigenous peoples and traditional communities.
The integration of the results of these assessments is considered in the company's management in a permanent process of continuous improvement focused on identifying, preventing, mitigating, and dealing with risks and negative impacts on human rights. The monitoring of controls is carried out with the objective of analyzing their effectiveness in the relationship with its suppliers and business partners, as well as in Vale's activities. For more information on Human Rights click here.
Degrading Work Conditions and Modern Slavery:
Impact on employees, contractors and/or suppliers due to disrespect for the rights of immigrant workers, excessive working hours, infrastructure and accommodation conditions, illegal wage deductions, document retention, illegal withholding of compensation, vacation and/or leave, as well as restriction of mobility outside the operational area after work shift.
Suppliers commit to expected standards of behavior in accordance with Vale Policies and are responsible, through contractual clauses, for providing decent working conditions, combating forced labor or modern slavery. The company does not maintain business relationships with suppliers that do not comply with its Principles of Conduct for Third Parties.
Child Labor and Child Sexual Exploitation:
Impact on children and adolescents resulting from hiring workers under the age of 18 (or below the age required by law) for activities that involve risks to their health and safety or resulting from exploitation of children and adolescents in the vicinity of Vale operations by its employees, contractors and/or suppliers.
Suppliers commit to expected standards of behavior in accordance with Vale Policies and are responsible, through contractual clauses, for combating child labor and child sexual exploitation. The company does not maintain business relationships with suppliers that do not comply with its Principles of Conduct for Third Parties.
Human Rights Violations in Labor Relations:
Impacts on employees, contractors, and suppliers, resulting from inappropriate conduct, discrimination and harassment, inadequate ergonomic working conditions or infrastructure necessary to perform the work (including PPE, places for meals and rest, restrooms, among others); the absence or failure of grievance mechanisms, the absence of training, inadequate compensation; impediment to free association and collective bargaining and/or the failure to monitor certain labor or social security obligations.
Suppliers commit to expected standards of behavior in accordance with Vale Policies and are responsible, through contractual clauses, for not tolerating discrimination. The company does not maintain business relationships with suppliers that do not comply with its Principles of Conduct for Third Parties.
Evaluating and monitoring suppliers
In order to detect the risks listed above and other risks in contractors and suppliers, Vale establishes a robust management process, where we follow the assumptions of the Risk and Impact Management process, considering the steps described above in the chapters “Registration”, “Selection, quotation and hiring”, “Contract and supplier management” .
Through the Bowtie method - a methodology used to control risks - the potential causes of risk of Human Rights Violations are analyzed, grouped into three critical issues: Degrading Working Conditions and Modern Slavery; Child Labor and Risk of Sexual Exploitation of Children and Adolescents and Violation of Human Rights in Labor Relations.
With the improvement of the Due Diligence process of Human Rights management in suppliers, Vale established a risk assessment process for suppliers that classifies the sensitivity of contracts and the vulnerability of the supplier based on its Human Rights management practices. For suppliers assessed as high risk from the perspective of Human Rights, training, document and field inspections are carried out and, when necessary, the preparation of an action plan to address weaknesses is requested. From 2019 to 2021, 35 suppliers were inspected. In 2022, we intensified the number of inspections covering 80 suppliers.
It is important to emphasize that in the case of the Human Rights risk assessment, like the environmental assessments, the focus is on the risk that the company's activities pose to Human Rights with respect to it directs employees and/or contractors, employees in the supply chain, and members of the communities - including indigenous peoples and traditional communities.
The integration of the results of these assessments is considered in the company's management in a permanent process of continuous improvement focused on identifying, preventing, mitigating, and dealing with risks and negative impacts on human rights. The monitoring of controls is carried out with the objective of analyzing their effectiveness in the relationship with its suppliers and business partners, as well as in Vale's activities. For more information on Human Rights click here.
Degrading Work Conditions and Modern Slavery:
Impact on employees, contractors and/or suppliers due to disrespect for the rights of immigrant workers, excessive working hours, infrastructure and accommodation conditions, illegal wage deductions, document retention, illegal withholding of compensation, vacation and/or leave, as well as restriction of mobility outside the operational area after work shift.
Suppliers commit to expected standards of behavior in accordance with Vale Policies and are responsible, through contractual clauses, for providing decent working conditions, combating forced labor or modern slavery. The company does not maintain business relationships with suppliers that do not comply with its Principles of Conduct for Third Parties.
Child Labor and Child Sexual Exploitation:
Impact on children and adolescents resulting from hiring workers under the age of 18 (or below the age required by law) for activities that involve risks to their health and safety or resulting from exploitation of children and adolescents in the vicinity of Vale operations by its employees, contractors and/or suppliers.
Suppliers commit to expected standards of behavior in accordance with Vale Policies and are responsible, through contractual clauses, for combating child labor and child sexual exploitation. The company does not maintain business relationships with suppliers that do not comply with its Principles of Conduct for Third Parties.
Human Rights Violations in Labor Relations:
Impacts on employees, contractors, and suppliers, resulting from inappropriate conduct, discrimination and harassment, inadequate ergonomic working conditions or infrastructure necessary to perform the work (including PPE, places for meals and rest, restrooms, among others); the absence or failure of grievance mechanisms, the absence of training, inadequate compensation; impediment to free association and collective bargaining and/or the failure to monitor certain labor or social security obligations.
Suppliers commit to expected standards of behavior in accordance with Vale Policies and are responsible, through contractual clauses, for not tolerating discrimination. The company does not maintain business relationships with suppliers that do not comply with its Principles of Conduct for Third Parties.
Evaluating and monitoring suppliers
In order to detect the risks listed above and other risks in contractors and suppliers, Vale establishes a robust management process, where we follow the assumptions of the Risk and Impact Management process, considering the steps described above in the chapters “Registration”, “Selection, quotation and hiring”, “Contract and supplier management” .
Environment
Vale is committed to making its suppliers aware of the issue of climate change and engaging them in improving the management of their emissions. Since 2011, we encourage our value chain to manage emissions, through a contractual clause and application of an annual Greenhouse Gases (GHG) questionnaire. Reducing GHG emissions in line with the Paris Agreement is part of Vale's goal of reducing indirect emissions by 33% (scope 3), that is, those resulting from activities in its chain, both in terms of suppliers and customers.
In 2022, 492 suppliers were invited, corresponding to approximately 30% of the company's global expenditure - steel clients and suppliers in the shipping area are not included in the group. Of this total, 412 answered the questionnaire on the CDP platform, which represents an increase of 10% compared to the last year and 51% compared to the 1st cycle. The recurrence rate among the responding suppliers in the previous year was 90% in the 2022 cycle, which makes it possible to assess their evolution and coordinate actions focused on the low-carbon economy.
To learn more about Vale's actions and targets for reducing emissions, visit our page on Climate Change.
The engagement of our suppliers in managing their emissions and the commitment to reducing environmental impacts are essential for us to reach this objective together.
Vale's suppliers considered critical in terms of emissions in the supply chain are annually invited to participate in the CDP Supply Chain Program and have the following benefits: Guidance on responses to questionnaires; Guide with the CDP scoring methodology (score); training sessions; multilingual support; E-learning platform on environmental issues; specific questionnaires for small and medium-sized companies.
The platform analyzes management, governance, and indicators data to define risks and opportunities aimed at reducing emissions. The material is assessed by CDP and passed on to suppliers.In 2022, 492 suppliers were invited, corresponding to approximately 30% of the company's global expenditure - steel clients and suppliers in the shipping area are not included in the group. Of this total, 412 answered the questionnaire on the CDP platform, which represents an increase of 10% compared to the last year and 51% compared to the 1st cycle. The recurrence rate among the responding suppliers in the previous year was 90% in the 2022 cycle, which makes it possible to assess their evolution and coordinate actions focused on the low-carbon economy.
To learn more about Vale's actions and targets for reducing emissions, visit our page on Climate Change.
Business Case
InoveCapital
InoveCapital is a web platform that facilitates our suppliers' access to working capital credits and investment in their operations. In this platform, suppliers will be able to view their invoices and request from participating financial institutions the advance payment of invoices or obtain financing to assist in the delivery of goods or services contracted by Vale.
Benefits:
Greater offer of credit lines;
Simplicity and agility in obtaining resources;
Strengthening the company's working capital;
Reduction in interest rates, stimulated by competitiveness among multiple financial institutions.
Partilhar Program
Program Objectives
The Partilhar Program aims to contribute to the socioeconomic development of the locations where the company operates, by joining forces with our supply chain. To achieve this ambition, Vale proposes an innovative methodology that aims to recognize and value the suppliers that contribute most to the social progress of each region.
This initiative intent to enhance value generation, bringing benefits to suppliers and communities, reinforcing Vale's commitment to people and the new society pact.
Socioeconomic development promoted by the Program intends to:
Promoting job generation in the communities in which we operate
Stimulating local purchases, making new business opportunities
Encouraging the income generation by expanding the wage bill
Encouraging voluntary social investment
The IVC – Índice de Valor na Comunidade
To identify the social contribution of suppliers in the communities, Vale created the IVC – Índice de Valor na Comunidade. The IVC is calculated considering 4 levers, that aim to promote the generation of value in the communities, as shown below:
Local Employment
Salary Mass
Local Purchases
Social Investments
A multidisciplinary team was developed this methodology based on objective criteria, disclosed to the participants in a transparent manner, and seeks to ensure balanceto stimulate the competitive differential among companies in the hiring processes, regardless of size or origin.
Innovation in Supply Chain Management
Now, Vale's sourcing process has the IVC as an additional parameter for evaluation and decision-making, in addition to the technical and commercial aspects. The inclusion of this index allows the prioritization of business with suppliers that have a greater contribution in the communities where the company operates.
In order to strengthen our local supply chain, in addition to changing the purchasing process, the Partilhar program will provide incentives for training and increasing the competitiveness of suppliers that have joined the program.
For more information about the Partilhar Program click here.
Customers
Vale Customer Satisfaction Survey
Survey process
Every year Vale conducts a satisfaction survey with its iron ore customers to assess satisfaction levels around Vale’s products and services, as well as to generate improvement levers. The survey process is coordinated by the marketing department, with support from the sales and supply chain departments.
The survey process:
01 - Survey
Customer Satisfaction Survey is carried out always in Q1. The forms are sent through different platform like Customer Voice app, email and Wechat. We reach all regular Vale customers in all markets.
04 - Steering Committee
Based on the guidelines discussed in the previous sessions, an action plan is created aiming to improve Vale's service and portfolio.
02 - Workshop
This stage is where the cycle of collecting customer responses ends. These results are disclosed at internal meetings involving Marketing, Supply Chain, Sales and Technology & Inovation areas.c
05 - Customer Feedback
Based on the guidelines discussed in the previous sessions, an action plan is created aiming to improve Vale's service and portfolio.
03 - Action Plan
The Committee monitors the actions in progress, remove impediments and set directions for marketing strategies.
Response target
The satisfaction survey goes out to all regular iron ore customers, with a response target that represents 70% of iron ore volumes sold in the previous year. In 2021 the survey was sent to 100% of the regular customers and the responses collected represented 80% of iron ore volumes sold.
Customer satisfaction target
Since 2020, Vale has measured customer satisfaction on a scale of 0 to 10, that customers assign to the following question: "Overall, how satisfied are you with Vale in the last 12 months?". For the last two years, Vale's global average satisfaction scores were 8.34 and 8.55 respectively, as can be seen in the table.