Sustainability Reports

Every year, Vale publishes its Integrated Report, presenting an objective analysis of the company’s strategy, achievement of commitments, results, highlights and challenges, focusing on the ESG agenda. The publication follows the guidelines of the International Integrated Reporting Framework, which is now consolidated under the International Sustainability Standards Board (ISSB), in addition to the GRI Standards, reflecting our commitment to transparency.

See the publications below:

Materiality

Vale addresses impact management and accountability in its Integrated Report based on a set of topics that are material for our activities. These topics make up Vale's materiality, an annual process for assessing and prioritizing the impacts, risks and opportunities associated with our business model. Since 2007, Vale has been reviewing its material topics, improving the process of stakeholder’s engagement, assessing the relevance of impacts, and incorporating trends and a future perspective.

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Materiality

Updating process carried out in 2022

In the last update cycle of our materiality, we incorporated the concept of double materiality. In this approach, we evaluated diverse impacts, risks and opportunities through two complementary perspectives:

Impact - relevance to represent our impacts on the economy, the environment and people, including human rights; and
Financial - potential to affect the company's financial performance and the ability to create value

To this end, we have organized the materiality review process into five stages. In the first three stages we conduct a broad critical and technical analysis of internal and external sources of information. Based on these, we consolidated summary sheets of Vale's 10 material issues and submitted this material to a round of 26 individual interviews with executives, members of the Sustainability Committee and external specialists. Finally, the contributions were consolidated in the final version of Vale's materiality 2022.

Phase 1

We reviewed external documents to identify whether any topic relevant to the sector was not included in Vale's set of material themes and should be incorporated into the review cycle. This stage showed that our materiality was comprehensive enough to contemplate all the key topics for the business context and the mining sector. Among the publications analyzed in this stage were:

The Global Risks Report 2022 (World Economic Forum)
Progress Report 2022 (Extractive Industries Transparency Initiative - EITI)
Principles of Mining (International Council on Mining and Metals - ICMM)
Reports on trends and prospects for the mining sector prepared by KPMG and EY
Frameworks of the main sustainability ratings

Phase 2

We systematized the demands, complaints, suggestions and concerns of our stakeholders that are routinely dealt with in Vale's permanent engagement channels. This integration allows us to have a much more complete and comprehensive portrait of the most relevant impacts for our stakeholders, since it is not restricted to a specific, materiality-driven consultation. In all, 11 structured channels for permanent engagement were considered, covering a wide range of audiences.

Phase 3

The financial materiality bias had as main inputs the evaluation of public sources, including Vale's disclosures to investors and the company's institutional and ESG websites. We also considered Vale's ongoing monitoring of controversies and allegations, corporate strategy and 2030 commitments.
In addition, we started a movement to integrate these analyses with the company's risk management methodology and criteria. Still in an initial stage, this front will be worked on in more depth in the next materiality update cycle.

Phase 4

Based on the analyses in the first three phases, we consolidated summary sheets for each of the 10 material themes. This content was taken to individual interviews with executives linked to the themes, members of Vale's Sustainability Committee, and external specialists. In all, we conducted 26 online meetings with representatives of these groups.

Phase 5

The contributions from the interviews were incorporated into the summary sheets and consolidated into a final report of the process. This document contributed to the definition of the content of Vale's Integrated Report 2022. Some contributions and interview excerpts can be found in the Report itself.

Material themes

The result was the maintenance of the current material topics, without significant changes in their scope. Our ESG Databook contains fact sheets with a detailed overview of each topic and how we engage with our
stakeholders. Vale’s 10 material issues consolidate the most relevant impacts, risks and opportunities for sustainable value creation. Cutting across all of them, innovation is a lever for value creation that drives our capacity to enhance positive impacts, capture opportunities, avoid risks and mitigate negative impacts.