As a milestone to sustainability, PT Vale Indonesia Tbk. (“PT Vale”) is proud to announce a significant achievement in its sustainability journey, having received a revised ESG (Environmental, Social, and Governance) risk rating of 29.4 from Sustainalytics, placing the company in the Medium ESG Risk category, the lowest nickel mining company in Indonesia to achieve this. It marks a substantial improvement from its previous classification as High ESG Risk, underscoring PT Vale’s steadfast commitment to continuously enhancing its sustainable practices.
 
Out of a total of 238 diversified metal companies globally rated by Sustainalytics, fewer than 20% achieve a Medium, Low, or Negligible ESG risk rating. Notably, PT Vale stands as the only Indonesian nickel company within this distinguished group, further demonstrating the company’s leadership in ESG performance in the nickel mining sector.
 
“This is a proud moment for PT Vale Indonesia as we continue to embed sustainable practices across all aspects of our operations,” said Bernardus Irmanto, Chief Sustainability and Corporate Affairs Officer of PT Vale Indonesia. “Our improved ESG rating is not just a reflection of our progress but also a commitment to the future. We are determined to drive down ESG risks even further and continue playing a pivotal role in Indonesia’s sustainable mining landscape.”

The Significance of the Medium ESG Risk Rating

Morningstar Sustainalytics is a leading prominent ESG research and ratings firm that evaluates publicly listed companies based on their environmental, social, and governance (ESG) performance. It was recognized as the Best ESG Research and Data Provider by Environmental Finance and Investment Week, confirming that its ratings are among the most credible and influential in helping investors assess companies’ ESG performance as part of their investment decision-making. Sustainalytics ratings are also a key determinant for inclusion in the IDX ESG Leaders Index, a stock exchange index launched by the Indonesia Stock Exchange (IDX). This index consists exclusively of issuers that adhere to ESG principles which serve as a standard for sustainable business and investment practices.

A medium-risk rating in Sustainalytics, especially in the diversified mining industry, represents a significant achievement for mining companies, given the industry's inherently high exposure to ESG risks. The score demonstrates that the company has effectively managed key environmental, social, and governance risks and implemented measures to address ESG issues. However, improvements remain open in several areas. This rating signals to investors that the company is proactively addressing ESG issues and is well-positioned to enhance its performance further, with manageable gaps that offer opportunities for continuous improvement and long-term sustainability.

With its updated score 29,4, PT Vale ranks 27th out of 195 global companies in the diversified metals and mining category, placing it among the top-tier companies in managing risks related to ESG practices. This achievement is particularly significant given the pressures faced by the global mining industry, where regulatory requirements, community expectations, and investor scrutiny are increasingly focused on ESG performance. PT Vale’s progress reflects the company’s proactive approach to addressing these challenges. 

Challenges in the Mining Industry and PT Vale’s Strategic Solutions

Today, PTVI consistently strives to enhance the Company's ESG performance through continuous improvement.  The next goal is to address existing gaps, ensuring more comprehensive and effective ESG risk management in the future. Our target is not only to be the best on a national scale but also to be able to compete with nickel companies on a global scale, with the long-term ambition of achieving a low-risk rating.

The mining industry faces numerous ESG-related challenges, including deforestation, biodiversity loss, emissions reduction, and the socio-economic impacts on local communities. As a company deeply integrated into Indonesia’s natural landscape, PT Vale is acutely aware of the environmental and social responsibilities inherent in its operations. In achieving a medium risk score, efforts from all levels of PTVI are inseparable from the implementation of sustainable Mining Practices (GMP) and the incorporation of ESG practices into the core structure of the organization . This commitment is reflected in the adoption of an Environmental Management System aligned with international standards, prioritizing safety, and proactively engaging with the community. PTVI continuously learns from past achievements, identifies gaps, and develops programs to address them. The company enhances its ESG performance through a sustainable practices approach, as outlined in the ESG roadmap, which serves as a guide for PTVI’s future development. 

To address these challenges, PT Vale has implemented several key initiatives:

1. Environmental Stewardship: PT Vale has prioritized progressive reclamation efforts and biodiversity conservation, focusing on minimizing land disturbance and ensuring that mined areas are restored to their natural state. The company’s use of hydropower and commitment to decarbonization plays a vital role in reducing greenhouse gas emissions.
2. Social Responsibility: PT Vale has invested in local community programs that promote economic growth, education, and healthcare, ensuring that its operations contribute positively to the development of the regions where it operates.
3. Governance Practices: By strengthening its governance frameworks, PT Vale ensures compliance with global standards, enhancing transparency and accountability across all levels of the organization.

Future Outlook

While this ESG rating improvement is a milestone worth celebrating, PT Vale recognizes the importance of continuous improvement. The company is committed to further embedding ESG considerations into its strategic decision-making processes, with an unwavering focus on reducing its environmental footprint, supporting local communities, and promoting best governance practices.
 
“We will continue to raise the bar on sustainability in Indonesia’s mining industry,” added Bernardus. “This is not just about meeting expectations; it is about creating lasting positive impact for our environment, our people, and our country. This result is a valuable feedback for PT Vale Indonesia and an opportunity to be recognized in the global stage." []