Renova Foundation - ESG
Renova Foundation
The Renova Foundation was founded in 2016 to repair and compensate for the damages caused by the breach of the Fundão Dam, which occurred on November 5, 2015. It was created as a result of a legal commitment called the Transaction Term and Conduct Adjustment (TTAC), which was signed by Samarco, its shareholders, Vale and BHP Billiton, the Federal Union, the States of Minas Gerais and Espírito Santo, and various public authorities at the federal and state levels.
The TTAC established 42 programs aimed at socio-environmental and socio-economic remediation of the affected territories in 40 municipalities along a stretch of approximately 650 km. The Renova Foundation has been implementing remediation programs and respecting the governance system established in the TTAC and the Conduct Adjustment Term (TAC Governance) signed in 2018. Among the TTAC signatories were the Federal Public Prosecution Service, the State Public Prosecution Service Minas Gerais and Espírito Santo, the Public Defender's Office of the Union and the Public Defender's Office of the States of Minas Gerais and Espirito Santo. Its owners are Samarco, BHP Billiton and Vale.
Through the 42 programs designated by the TTAC, the Foundation works to ensure access to information, promote open and constant dialogue with its stakeholders, and encourage social participation and engagement of populations affected by the dam rupture.
Dialogue with affected communities guides Renova's actions as it seeks to remedy and compensate for the damage caused in an efficient and transparent manner. Recovering the water basin, resettling residents and compensating the families who suffered direct losses due to the incident are the Foundation’s priorities.
In its pursuit of excellence, the Renova Foundation has engaged 7,000 people (including its employees and partners) from technical and specialized areas with various areas of knowledge; dozens of social and environmental entities from Brazil that have scientific knowledge, such as the federal universities in Espírito Santo and Minas Gerais; and the international scientific institutions working on the repair process of Mariana (Minas Gerais) at the mouth of the Doce River.
Impact Management
Impact management actions, implemented through the socio-environmental and socio-economical programs indicated in the TTAC, were divided into two main fronts:
Repair, aimed at reversing or mitigating the impacts caused by the disruption. This includes tailings management, village reconstruction and compensation.
Compensation to society for the general damage caused to people's lives. This includes action such as forest restoration, spring restoration and sanitation for municipalities along the Doce River are some examples.
The efforts for repair and compensation were divided into three thematic axes:
- Identification and compensation
- Education and culture
- Health and well-being
- Traditional and Indigenous communities
- Engagement and dialogue
- Fostering the economy
- Land use
- Water management
- Tailings management
- Biodiversity
- Animal care
- Innovation
- Forest restoration
- Resettlement
- Tailings containment
- Water and effluent treatment
- Urban infrastructure and access
Performance Evolution
Since the Foundation’s creation in November 2015, Vale and BHP have been financing the Renova Foundation and providing funds directly to Samarco in order to preserve its operations. R$ 28.1 billion were invested by Vale, BHP and Samarco in reparation and compensation initiatives for the affected parties, totaling more than 410,000 people. In 2022, R$ 8.5 billion was driven to the programs. For 2023, the budget of the Renova Foundation is R$ 8.1 billion.
Disbursement and Budget
Renova Foundation disbursement (R$ billion)
KPI’s report
Significant progress had been made on the three axes defined in the TTAC:
- R$ 13.7 billion was paid in indemnities and assistance;
- More than 410,000 people were benefited with indemnities and financial aid related to damages;
- After the implementation of the Simplified Indemnity System, approved by the Brazilian Federal Court in August 2020, about 76.5 thousand people and R$ 9.16 billion were paid until January 2023, in 39 locations covered by the new system;
- 55% of the current contracts signed with local suppliers and R$ 1.62 billion is the total value of these contracts.
- Around 113 affluents have already been recovered;
- 5 thousand springs are being recovered;
- 690 kilometers of monitoring of rivers and lagoons, plus 230 kilometers of monitoring along the coastal and estuary zones;
- 82 conventional monitoring points distributed in the Rio Doce and the coastal zone;
- 1.5 million data generated by the water monitoring program per year indicating that the Rio Doce water can be consumed after being treated;
- 40 thousand hectares of APPs will be reforested;
- R$ 1.7 billion will be destined to forest restoration initiatives;
- A pilot project for the Natural Treatment Stations (NTS) was implemented in the Gualaxo do Norte River, which uses filtering barriers and islands of vegetation in the river channel to filter the water and absorb metals;
- The removal of the tailings, so far, has occurred in two locations: Barra Longa (MG), and Camargos waterfall, a district of Mariana (MG);
- The tailings are not toxic, and there are no limitations for cultivation, it contains minerals and natural elements present in rocks and soils of the region (rich in iron, manganese and aluminum), sand (silica) and water. The material was characterized as non-hazardous in all samples, according to criteria of the Brazilian standard for classification of solid waste.
- 1,600 construction sites completed and delivered to the community;
- About 500 people actively participated in the resettlement process;
- In Bento Rodrigues, 119 residences have been concluded, 108 of them houses and 11 mixed buildings (that house both residence and commerce in the same property). Four stores have also been completed. Work has started on another 28 houses, 1 business and 2 mixed buildings;
- In Paracatu de Baixo, 41 houses and one mixed building (housing a residence and a business on the same property), and one business have been completed.
- Another 18 properties (16 houses, one mixed building and one commercial building) are under construction;
- 17 water treatment stations and 18 water mains were built or renovated;
- Governador Valadares water main inaugurated in the assisted operation phase: 38 km long, the new intake will be part of Governador Valadares' supply network, carrying water from the Corrente Grande river to the Central, Santa Rita and Vila Isa Water Treatment Plants (ETA). Up to 900 liters per second will be supplied, which will guarantee more water security, since the municipality now has a new source of water collection besides the Doce River.
Overall timeline
After project approval, house delivery takes approximately 12 months:
Indemnification status
- 4,380 holders received the emergency financial aid in January 2023
- 32,099 people were assisted in January 2023, of this total 17,764 are dependents
- R$2.32 billion paid in Emergency Financial Aid by January 2023
Water Damage - PIM: Paid by the Mediated Indemnity Program (PIM) to people in municipalities where the lack of water supply with water deprivation was proven.
- 320,179 people served until January 2023
- 264,988 compensations paid until January 2023
- R$305.3 million in payments until January 2023
- 2,398 payments processed through January 2023
- R$53.7 million in payments through January 2023
General Damage: for the compensation of affected people who have had proven moral and material damage, including lost profits, from their economic activities.
- 10,837 proposals accepted until January 2023
- 10,780 indemnities paid until January 2023
- R$ 1.92 billion in payments until January 2023
Simplified Compensation System (Novel)
- About 76.5 thousand* people were compensated until January 2023
- About R$9.16 billion* in payments through January 2023
*Data from Jan/23
Emergency financial aid¹
|
Mariana
|
|
|
|
|---|---|---|---|
|
#Main beneficiary
|
#Relatives
|
|
Amount
|
|
574
|
712
|
|
R$ 57 MM
|
|
Total
|
|
|
|
|---|---|---|---|
|
#Main beneficiary
|
#Relatives
|
|
Amount
|
|
14,754
|
18,133
|
|
R$1,44 Bn
|
| Mariana | ||
|---|---|---|
| #Main beneficiary |
#Relatives
712
#Amount
R$ 57 MM
| Total | ||
|---|---|---|
| #Main beneficiary |
|---|
#Relatives
18,133
#Amount
R$ 1,44 Bn
Indemnizations¹
|
Mariana
|
|
|
|
|---|---|---|---|
|
#Families
|
|
|
Amount
|
|
390
|
|
|
R$ 166 MM
|
|
Water damage |
|
|
|
|
|---|---|---|---|---|
|
#People
|
|
|
Amount
|
|
|
270,312
|
|
|
R$ 283 MM
|
|
|
|
|
|
|---|---|---|---|---|
|
|
|
Amount
|
|
|
10,201
|
|
|
R$ 920 MM
|
| Mariana |
|
|---|---|
#Families |
| Water damage | |
|---|---|
|
|
| General damage |
|
|---|---|
#Families |
|
#Amount |
Novel System
Registered Requirements
Validated Requirements
Payments