Setor / Mining
- Benchmark analysis
- Trend Analysis
- Strategic vision
- Dialogue with stakeholders
- Governance model
Vale – low carbon mining
Throughout 2020, Catavento supported Vale in its low-carbon mining strategy. To this end, we worked on two main fronts: facilitation of the Low Carbon Forum and strategic guidance for the climate agenda.
The Low Carbon Forum was created to define and supervise the implementation of Vale’s climate initiatives. It is coordinated by the Sustainability Executive Director, with the participation of Vale’s CEO and the Executive Directors of Ferrous Metals, Basic Metals, Business Support, Finance and Investor Relations. Catavento supported the formulation of the meetings’ agenda and the alignment with the teams involved, in addition to being responsible for preparing templates and facilitating meetings. Furthermore, the Catavento team conducted monthly presentations on the most relevant external trends and for Vale’s climate agenda, including benchmark analyzes from peers and other industries.
With regard to strategic guidance, Catavento supported Vale in defining climate goals and in its accountability to key stakeholders, through meetings with leaders and teams, in addition to reviewing all documents related to climate change. In addition, Catavento prepared a monthly Climate Intelligence Bulletin, with the news and studies most relevant to the company’s agenda.
Vale – Sounding Panel 2020
In late 2019, Catavento assisted Vale in structuring the Sounding Panel. Its main objective is to stimulate the listening capacity of Vale’s Executive Directors, in order to test concepts and recover credibility with different stakeholders, as well as to influence the integration of sustainability into the company’s business strategy.
The Sounding Panel is formed by 05 (five) independent stakeholders from different industries and geographies. The members’ main areas of knowledge are mining, energy, forest and technology. The composition of the Sounding Panel seeks to bring diversity and balance of experiences and perceptions. On the other hand, all members share characteristics considered relevant to the company, being executives / specialists recognized in their areas of expertise.
In addition to assisting in structuring the Sounding Panel and selecting members, Catavento is responsible for facilitating meetings. Among the main responsibilities, Catavento prepares briefings and pre-reading materials, and consolidates the main messages of the meetings. Clarissa Lins, founding partner of Catavento, is also responsible for moderating and conducting the meetings.
In 2020, 3 meetings were held with the permanent participation of the CEO and the alternate participation of Vale’s Executive Directors. Different topics considered relevant to the company were explored, including climate change, energy transition, low carbon mining, indigenous populations and COVID-19. The topics of shared-value and ESG perspectives for the mining sector were also addressed.
Vigilant of its duty of reparation after the Brumadinho tragedy, Vale set out to rethink how it creates and shares value with its stakeholders, in light of the new demands of a changing society. In this context, it hired Catavento in August 2019 to formulate the company’s carbon neutral mining strategy.
The first stage of the project involved the internal engagement of more than 40 company executives, including members of the Board of Directors, Executive Board, directors and managers from related areas. The interviews and meetings aimed at mapping 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 experts in mining and climate change, in addition to investors. In addition, a trend analysis based on more than 100 documents aimed at mapping global trends that impact the mining sector, the challenge of decarbonizing the steel chain, challenges, and opportunities for mining companies.
Finally, a benchmark analysis of 5 mining companies with a focus on low carbon operations was developed to understand existing commitments, focuses of action and tools used.
After compiling the information collected internally and externally, Catavento proposed strategic guidelines for carbon neutral mining, which aim to reposition Vale as a leader in the area, including ambitious commitments such as carbon neutrality for scopes 1 and 2 in 2050, the adoption of goal aligned with the Paris Agreement for 2030, the use of 100% renewable electricity by 2030 and the protection and reforestation of 500 thousand hectares by 2030. The commitments announced at Vale Day, the company’s annual meeting with investors in New York and London, may be accessed here.
Based on the strategic guidelines on carbon neutral mining, Catavento proposed to update Vale’s Global Climate Change Policy. As part of the company’s repositioning, Catavento also proposed a new governance model for carbon neutral mining, including the suggestion of responsibilities and decision-making flow involving different areas of the company. In addition, a diagnosis was made of Vale’s adherence to the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), which included an analysis of best practices in reporting climate risks and opportunities, in addition to understanding how peers are adopting it.
Vale is one of the largest mining companies in the world, working with passion to transform natural resources into prosperity and sustainable development. The company is a global leader in iron ore, iron ore pellets and nickel. It operates in 27 countries on five continents producing manganese, ferro-alloys, copper, platinum-group metals (PGM), gold, silver, cobalt, metallurgical and thermal coal.
Source: website and Vale’s Sustainability Report