In Pursuit of the Energy Transition 

The global climate crisis is a widely acknowledged reality, firmly supported by scientific evidence. It represents an urgent issue with significant impacts not only on our production chain but also on society as a whole. In this context, we recognize the essential role of the mining sector and embrace our responsibility to continuously invest in technology and innovation. Our goal is to reduce both direct and indirect greenhouse gas emissions (Scopes 1, 2, and 3) and to contribute effectively to the transition toward a low-carbon economy. 

Entenda

O Protocolo de Gases de Efeito Estufa (GHG Protocol) classifica as fontes de emissões em três tipos:
 
  • Escopo 1: são as emissões diretas de fontes próprias ou controladas pela organização, decorrentes do transporte e dos processos industriais nas minas, da pelotização e das atividades das ferrovias. Soluções desenvolvidas: substituição de combustíveis e eficiência energética.
     
  • Escopo 2: são as emissões indiretas oriundas do consumo de energia elétrica e/ou térmica, adquiridas pela Vale. Soluções desenvolvidas: aquisição de fontes renováveis, ativos de geração renovável e certificados de energia.
     
  • Escopo 3:  são emissões indiretas de gases de efeito estufa (GEE) que ocorrem ao longo da cadeia de valor da Vale, mas não estão diretamente relacionadas às suas operações. As principais fontes dessas emissões estão associadas principalmente ao transporte de minério de ferro e outros produtos, bem como ao uso de aço e outros produtos da mineração. Soluções desenvolvidas: Briquete Vale e parcerias com nossos clientes mais representativos em busca de oportunidades para desenvolver soluções focadas na redução das emissões de CO2.


Our decarbonization roadmap includes projects to expand the use of alternative energy sources and reduce reliance on fossil fuels in our operations (Scopes 1 and 2). We also collaborate with our suppliers and customers to achieve reductions in Scope 3 emissions, which account for 98% of total emissions.  

Our minerals and metals will play a central role in the transition to a low-carbon economy. For instance, steel produced from iron ore remains the material of choice for wind turbines, transmissions lines, and the necessary infrastructure to grant universal access to electricity. Nickel, in turn, is used to manufacture high-performance batteries, while copper is increasingly vital to build the transmission infrastructure needed for an increasingly electrified world. This gives Vale a number of competitive advantages and places us in a unique position, with an offering of products that help to drive emissions reductions in the steel and base metals sector. 

We will move toward a low-carbon economy with a broad vision that takes into account the risks and impacts on people and the planet. Our approach to a just energy transition in our operations, across our value chain, and in the territories where we operate follows our values and the guidelines established in our Sustainability, Climate, and Human Rights policies. Click here to learn about Vale’s just transition position.
 
The protection and conservation of forests is also a strategic work in the climate agenda, as it contributes to maintaining and expanding stored carbon stocks. We help conserve and protect around 1 million hectares of forests in the world, 800 thousand hectares in the Amazon, where we have operated for 40 years and helped protect, in partnership with the Chico Mendes Institute for Biodiversity Conservation (ICMBio), the Mosaico of Carajás, which is a huge area of native forest, formed by six conservation units, equivalent in size to five cities of São Paulo. 

In the same sense, we established a voluntary forestry goal of expanding the forest areas that we help to protect by 500 thousand hectares, beyond our borders, by 2030. Furthermore, in 2022, we acquired around 133 thousand REED+ carbon credits, in a partnership between Fundo Vale and Grupo Algar to conserve the equivalent of 50 thousand hectares of forests (read more in Biodiversity). 

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Our targets 

  • To consume 100% renewable electricity in Brazil by 2025—a target that was achieved in 2023, two years ahead of schedule. 
     
  • Source 100% renewable electricity globally by 2030. 
     
  • Reduce absolute scope 1 and 2 emissions by 33% by 2030 from the 2017 baseline .
     
  •  Achieve a 15% reduction in net Scope 3 emissions by 2035, in relation to its 2018 levels.  
     
  • Achieve net zero Scope 1 and 2 emissions by 2050.
A large field of solar panels installed on a red dirt ground under a clear blue sky. The solar panels are arranged in rows and appear to be part of a solar farm used for generating renewable energy.

Photographer: Zé Palma

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Note: These 2024 Greenhouse Gas Emissions Inventory figures were calculated in accordance with the GHG Protocol Guidelines and were audited by an independent third party.

Climate governance structure 

Vale is committed to climate governance, aiming to integrate sustainability into its long-term strategy, based on the guidelines defined by the Task Force on Climate-related Financial Disclosures, “TCFD”.

The Board of Directors is responsible for the Company’s strategic direction, including matters related to risk management and general principles for sustainability. The Board is supported by its Committees, particularly the Sustainability Committee, in approving the sustainability strategy and guidelines, including climate-related issues, and integrating them into the Company’s strategic planning, with the goal of creating value, enhancing competitiveness , social, environmental and economic sustainability.

The Executive Committee is responsible for assessing and monitoring risks and opportunities related to Climate Change. It is supported by the Executive Risk Committees, including the Sustainability Committee, which operate in accordance with the Company’s Risk Management normatives. Within the scope of the Executive Committee, the Low Carbon Forum is held, coordinated by the Executive Vice-Presidency responsible for the topic, with the aim of maintaining alignment between its members and technical teams in driving the decarbonization strategy.

Our GHG emissions reduction targets are also tied to the long-term variable remuneration of our executives, supporting our goal to create sustainable value Company-wide. 

The climate governance structure and the guidelines for its actions on Climate Change are consolidated in its Climate Change Policy.  

Aligning words and actions 

Board of Directors and Sustainability Committee 

Strategic oversight and support. Learn more in Governance. 

Low carbon forum (executive committee meetings)

C-level quarterly meetings to track performance, deliberations and ensure delivery.  

Climate targets linked to executive compensation 

10% of long-term compensation (out of 25% ESG-related). Learn more in Executive Executive Compensation.  

Our strategic differentiators 

  • Iron ore solutions: we have set a target to supply 100 million metric tons of agglomerates over the next 15 to 20 years, including blast furnace and direct reduction agglomerates. Production of these agglomerates is expected to see lower fossil fuel consumption, particulate emissions, and water use. 
     
  • Energy transition metals: our business is uniquely positioned to meet the growing demand for critical minerals needed for the global energy transition. 
  • 97.8% of our electricity requirement comes from renewable sources, providing a competitive advantage while supporting our sustainability targets. 
     
  • 84.3% of the electricity consumed in our processes is renewable. In Brazil the figure has now reached 100%, attested by renewable declarations. 
  • We offer some of the least carbon-intensive nickel products on the market, recognized for their quality and minimal impact on climate-change.  
  • We offer some of the least carbon-intensive nickel products on the market, recognized for their quality and minimal impact on climate-change.  

Transparency 

With the aim of enhancing transparency regarding climate-related risks and opportunities, and reaffirming our commitment to sustainability, we have published the Sustainability-Related Financial Information Report. This document adopts, for the first time in Brazil, the international IFRS S2 standard issued by the International Sustainability Standards Board (ISSB), anticipating its national mandatory adoption by two years. 

Information related to the climate topic is also available in the Integrated Report  and ESG Databook, we published the Report on Scopes 1, 2 and 3, which addresses Vale’s management of GHG emissions, commitments, and the company’s decarbonization strategy.  

In addition, Vale annually submits disclosures to the CDP, a not-for-profit charity that runs a global disclosure system for companies and governments to monitor, manage, reduce, and disclose their GHG emissions and other environmental impacts.  

an industrial scene with a large structure, possibly part of a loading or unloading facility at a port. There is a person wearing protective gear, including a helmet and ear protection, standing on a staircase or platform to the right side of the image. The background includes another large structure and what appears to be water below the platforms. The sky is partly cloudy with some blue visible.

Photo: Vale's Archive

CDP

As part of our commitment to sustainability and environmental management, we have annually responded to the CDP program questionnaires since 2003. Vale has been recognized for our transparent assessments and effective management of environmental impacts in order to mitigate climate-related risks. 
 
Within the CDP program, companies respond to comprehensive questionnaires covering topics such as GHG emissions, mitigation strategies, environmental risk management, and sustainable initiatives. Based on their responses, CDP assesses and rates organizations on their sustainability approaches.  

 Despite the challenges posed by this rigorous assessment, Vale remains firmly committed to advancing its sustainability strategies. The company continues to invest in initiatives aimed at strengthening its environmental governance, reducing impacts, and increasing the transparency of its actions. 
 
 
Vale’s responses to the 2024 CDP Climate Change Questionnaire can be found here.

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