Acknowledging its reparation duty following the Brumadinho tragedy, Vale has committed to rethink the way in which it creates and shares value with its stakeholders, taking into consideration the new demands of a society under transformation. In this context, it hired Catavento in August 2019 to formulate the company’s net zero mining strategy.

The first phase of the project included an internal engagement that involved more than 40 executives, amongst them members of the Board of Directors, Executive Committee, executive managers, and directors from different areas. The interviews and meetings aimed at mapping the existing initiatives, expectations, challenges, and opportunities in the context of mining decarbonization.

The external context was incorporated through interviews with around 25 international and local specialists in mining and climate change, in addition to investors. Furthermore, an analysis based on more than 100 documents aimed to map the global trends that impact the mining sector, the challenge of decarbonization of the steel industry chain, and challenges and opportunities for mining companies. In conclusion, a benchmark analysis of 5 peer companies focused on their low carbon strategy was elaborated as a way to understand existing commitments, the scope of activities, and used tools.

After compiling the information collected throughout the project, Catavento proposed strategic guidelines for net zero mining that aimed to reposition Vale as a leader in the theme, including ambitious commitments such as carbon neutrality for scopes 1 and 2 in 2050, the adoption of a target for 2030 aligned with the Paris Agreement, the use of 100% renewable electricity until 2030, and the protection and reforestation of 500 thousand hectares until 2030. The commitments announced on Vale Day, an annual meeting with investors in New York and London, can be found here. Following the strategic guidelines for net zero mining, Catavento has updated Vale’s Global Climate Change Policy.

In the realm of the company’s repositioning, Catavento also proposed a new governance model for net zero mining, including the suggestion of responsibilities and decision- making flow involving various areas of the company. Moreover, a diagnostic was conducted regarding Vale’s adherence to the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), which encompassed an analysis of the best practices on the transparency regarding climate-related risks and opportunities, in addition to the understanding of how peers are adopting it.


Previous work

The partnership between Vale and the Catavento team began in 2008 with the first evaluation of the company´s 2007 Sustainabiliy Report. The work included analyzing stakeholder expectations according to the GRI G3, and most notably its qualitative questions.

In 2011, the consultancy conducted numerous projects with the company, pursuant to the Corporate Sustainability Index requirements (ISE) and developed an indicator map, a support tool that allowed for the consolidation of different indicators often targeted by Vale.

Vale also requested an assessment (executed by various questionnaires) of how financial market demands help identify the creation and value protection from structured sustainability practices within the company. The result was the presentation of best market practices, considering the Responsible Investment market vision and improvement recommendations regarding Vale.

Additionally, the Catavento team organized stakeholder engagement interviews with external experts to assist in the development of Vale´s biodiversity strategy, including manager targets in the sector.

We also developed projects aimed at supporting and improving Vale´s processes and sustainability tools, according to the plan of action laid out. The result of this was improved management of the company´s sustainability policies, including effective implementation of short-term issues in their plan of action. In the same period, Catavento provided support for the improvement of the company´s sustainability agenda, by identifying best practices, improving the reporting process on key sustainability issues by involving senior management.

Throughout 2012, the focus of the consultation was reviewing the process of defining the company´s material issues. The objective of improving the company´s sustainability management (involving internal and external components) has been successfully achieved. The Catavento team created a panel of experts that helped strengthen the company´s position on key sustainability issues.

In 2013, Catavento aided the company in the response process of the ISE questionnaire of BM&FBovespa 2013, and the result was the continued placement of Vale in the ISE 2013 portfolio.

About Vale

Vale is one of the world’s largest mining companies, working with passion to transform natural resources in prosperity and sustainable development. The company is a global leader in iron ore, iron pellets, and nickel. It is present in 27 countries and 5 continents producing manganese, iron alloy, copper, metals of the platinum group (MPG), gold, silver, cobalt, and coal.

Source: Vale’s Sustainability Report and website