Vale S.a. · BMFBOVESPA:VALE3
Vale — ESG Presentation (June 2021)
23 slides from Vale's sustainability presentation, Jun 25, 2021
Slide 1: Vale ESG Webinar Climate Change
1 COMPROMISSOS PÚBLICOS 2030 Vale ESG Webinar Climate Change June 24, 2021 Eduardo Bartolomeo, CEO Maria Luiza Paiva, Executive Vice President of Sustainability Rogerio Nogueira, Ferrous Marketing Director Mark Travers, Executive Vice President of Base Metals
Slide 2: Agenda and Disclaimer
Agenda Disclaimer “This presentation may include statements that present Vale's expectations about future events or results .. All statements, when based upon expectations about the future and not on historical facts, involve various risks and uncertainties .. Vale cannot guarantee that such stateme
Slide 3: Vale has made bold commitments to mitigate climate change
Reduce scope 1 and 2 emissions by 33% by 2030 100% renewable electricity in Brazil (2025) and globally (2030) Net zero scope 1 and 2 emissions by 2050 Reduce net scope 3 emissions by 15% in 2035 Vale has made bold commitments to mitigate climate change Leading the transition towards low carbon minin
Slide 4: We are in a unique position to deliver them
We are in a unique position to deliver them Vale’s competitive advantages High-quality portfolio Supporting steel decarbonization and powering the energy transition Leader in renewable energy ~90% renewable electricity globally in 2020 Sustainable mining 1 million hectares of forests protected, ~80%
Slide 5: For that, we have a strong governance in place
For that, we have a strong governance in place Board of Directors and Sustainability Committee: Strategic oversight and support Low Carbon Forum: C-level monthly meetings to track performance and ensure delivery Climate-aligned executive incentives: Climate-related compensation: 5% of short-term (ou
Slide 6: Vale's road towards net zero mining
6 Vale’s road towards net zero mining Maria Luiza Pinto e Paiva, Sustainability VP
Slide 7: How will Vale reach net zero by 2050?
How will Vale reach net zero by 2050? 1 Baseline 2017. 14.1 2017 18.4 2030 Business as usual 2050 goal 9.5 2030 goal Net zero -33% -100% Prioritization of operational emission reductions ▪ Continuously reduce scopes 1 and 2 emissions through innovative processes, technologies and partnerships Nature
Slide 8: We have a path to deliver our Scopes 1 & 2 emission reduction targets by 2030
14.1 18.4 9.5 2017 2030 BAU Pelletizing & Metallurgy Mining, Railway & Others Scope 2 2030 Goal We have a path to deliver our Scopes 1 & 2 emission reduction targets by 2030 Scope 1 and 2 emissions by process – BAU¹ (%) 1 Baseline 2017. BAU stands for business as usual. Target to reduce 33%1 of scop
Slide 9: We are leading with our PowerShift and renewable power projects for Scopes 1 & 2
We are leading with our PowerShift and renewable power projects for Scopes 1 & 2 Processing: metallurgy & pelletizing Electricity ▪ Folha Larga Sul wind project - 45 MWm for Vale’s operations (minimum) - Long-term energy supply contract - Power cost cut up to US$ 15 million/year ▪ Sol do Cerrado sol
Slide 10: We are relying on robust tools to align our capital allocation
We are relying on robust tools to align our capital allocation ▪ US$ 4-6 billion investment by 2030 for GHG reduction ▪ US$ 50/tCO2e shadow price for all capital allocation decisions ▪ Portfolio of GHG reduction opportunities: marginal abatement cost curve updated on an annual basis, in order to pri
Slide 11: We are advancing with our pioneer scope 3 net emission reduction target
We are advancing with our pioneer scope 3 net emission reduction target 1 Baseline 2017. 400 450 500 550 600 650 2018 2035 - BaU 2035 - target 586 641 -15% MtCO2e 496 ~98% of total emissions associated to our value chain ▪ Steelmaking (94% of scope 3) ▪ Shipping (3% of scope 3) Vale’s own initiative
Slide 12: Fostering steel decarbonization
12 Fostering steel decarbonization Rogério Nogueira, Ferrous Marketing Director
Slide 13: Steel is produced using two main processes and they have different challenges
Steel is produced using two main processes and they have different challenges 1 IEA Iron and Steel Technology Roadmap Steelmaking share of global CO2 emissions 8% Increase in global steel demand by 20501 +33% Decrease in steel industry emissions required by 20501 -50% Capex required to decarbonize s
Slide 14: Steel industry transformation started, strongly driven by GHGE reduction regulations
Steel industry transformation started, strongly driven by GHGE reduction regulations Phase 2 Decarbonization Run Phase 1 Pathway Definition Phase 3 Mainstream Adoption 2020 2030 2040 2050 2060 CO2 neutrality -30% CO2 Regulatory pressure CO2 neutrality Steelmakers public commitments (15+ DRI plants t
Slide 15: Vale's own initiatives to meet its scope 3 emission target
15 Vale’s own initiatives to meet its scope 3 emission target Tecnored (Pig Iron 100% Biomass) Dry concentration technology to produce high Fe (>68%) product to support electric steel making Vale’s main initiatives Low to zero CO2 iron ore agglomerates Biomass in client (PCI) HBI Mt CO 2 eq.
Slide 16: Decarbonization adds cost, creates pressure for higher productivity and increases VIU of high-grade ores
Decarbonization adds cost, creates pressure for higher productivity and increases VIU of high-grade ores 2020 Business as usual: Integrated Route 2030 European Steel Co Announcements 2030 Alternative Solution 64% Fe Fines, pellet & lump ore BOF Blast Furnace US$ 375/t steel US$ 540/t steel US$ 390/t
Slide 17: Vale is naturally well positioned for a market that values high quality and low CO2 emission products
Vale is naturally well positioned for a market that values high quality and low CO2 emission products Vale will beneficiate from the decarbonization trend by: Using proprietary technology to offer more of the top-end premium products (>68% Fe) necessary to the EAF production route. 2 Establishing, t
Slide 18: Base Metals powering a low carbon economy
18 Base Metals powering a low carbon economy Mark Travers, Base Metals VP
Slide 19: Vale Base Metals' products are critical to low-carbon technologies
Vale Base Metals’ products are critical to low-carbon technologies Electric Vehicle Renewable Energy Charging Stations and Infrastructure Cu Copper Ni Nickel Cathode Material Cell and pack Co Cobalt 2050 demand increase vs 2018 production Coverage: usage in different energy technologies Cobalt Lithi
Slide 20: When it comes to EV, at least half of the carbon footprint comes from the battery
Tank to Wheel (Use Phase) When it comes to EV, at least half of the carbon footprint comes from the battery - being low carbon is critical for the business 1 Source: McKinsey, Trafigura. Including all upstream emissions from raw material extraction to the OEM, including logistics. ²Including e.g. gl
Slide 21: We have taken a strategic positioning in this market
We have taken a strategic positioning in this market… 1 Source: The Nickel Institute report, 2017: Life Cycle Assessment of Nickel Products – Vale Summary Report, May 2020. ² According to the Ni Institute. ▪ Long-term off-take agreement signed with major North Atlantic EV Producer ▪ Recycling EV bat
Slide 22: ... with sustainable operations
… with sustainable operations We have already done ...and we will deliver ▪ US$ 1.5 bn investment ▪ Reduction in emissions ✓ 40%GHG from the smelter ✓ 85% sulphur dioxide ✓ 40% metals particulate ▪ 30 BEVs operating underground ▪ 40+ by the end of 2021 ✓ Reduces diesel exhausts and particulates ✓ Re
Slide 23: At Vale, we're changing how we mine to serve a changing world
At Vale, we’re changing how we mine to serve a changing world Aerial view from S11D Operational Control Center, (Carajás, PA) Signatures Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, ther