Slide 1: Webinar ESG: Brumadinho and Cultural Transformation
COMPROMISSOS PÚBLICOS 2030 Webinar ESG Brumadinho and Cultural Transformation Eduardo Bartolomeo, Marcelo Klein and Marina Quental October 6, 2020 1
Slide 2: Disclaimer
isclaime “This presentation may include statements that present Vale's expectations about future Agend 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 statements wil
Slide 3: Agenda
Agend 1. Opening remarks, Eduardo Bartolomeo 2. Brumadinho Reparation, Marcelo Klein 3. Cultural Transformation, Marina Quental 3
Slide 4: Opening remarks
Opening remarks 4
Slide 5: Our commitments remain solid
Our commitments remain solid People Safety Reparation 5 5
Slide 6: In 2019, we added two new pillars to our strategy
In 2019, we added two new pillars to our strategy Safety and operational excellence New pact with society Maximize flight to quality in Iron Ore Base Metals transformation Discipline in capital allocation 6
Slide 7: In Brumadinho, the reparation progresses during the pandemic
In Brumadinho, the reparation progresses during the pandemic Essential works ongoing, with only key workers and adoption of WHO recommendations Search and Rescue resumed after a 5-month halting Community relations remotely, personal contact upon request Social projects continuity with support of on-
Slide 8: We are honoring our new pact with society amid COVID-19
We are honoring our new pact with society amid COVID-19… 500 million reais in initiatives 35 million tests and PPEs1 3 field hospitals 400 hospital beds Hospital equipments Cleaning materials Investments in R&D + others in Brazil and every location where we operate …by standing up for our stakeholde
Slide 9: Our stakeholder engagement has evolved through active listening
Our stakeholder engagement has evolved through active listening PUBLIC CONSULTATION BOARD DIVERSITY COMPENSATION ESG DISCLOSURE We heard that is best practice We heard that our diversity We heard that our C-level We heard that our ESG to have public consultations on should evolve should be committed
Slide 10: We are advancing with our ESG agenda towards best practices
We are advancing with our ESG agenda towards best practices Where we stand today¹ Next steps¹ Scopes 1&2 targets for 2030, carbon neutral by 2050 Scope 3 target ambition Amazon Day manifesto Recover and protect +500,000 ha by 2030 Grievance channels integration Systematic involvement of local stakeh
Slide 11: We are consistently improving our dam management
We are consistently improving our dam management Routine System Performance ▪ New Tailings Management System Risk under implementation Our ambition World-class ▪ Hazard Identification and Risk Analysis Tailings standards and (HIRA) is ongoing management processes ▪ 2 Geotechnical system Monitoring C
Slide 12: Transforming our culture with VPS for operational excellence
Transforming our culture with VPS for operational excellence Case study: EFVM railway in Brazil Railway accidents Energy efficiency Nº of accidents per million of kilometers Liter/kTKB +71,300 people trained People development Standardization of best practices Operational discipline Compliance with
Slide 13: We are taking important steps towards building a better Vale
We are taking important steps towards building a better Vale To transform natural resources into prosperity and Work in Our mission progress sustainable development A great company to be recognized by society in 5 years by: Our ambitions ▪ Benchmark in ▪ Best in class ▪ Talent factory ▪ Leader in lo
Slide 14: Brumadinho Reparation
Brumadinho Reparation 14
Slide 15: Reparation activities are closely overseen by senior management and Board members
Reparation activities are closely overseen by the senior management and Board members Simplified governance oversight structure Reparation and Development Office Board of Directors Created in April 2019 to ensure focus and agility CCO for the reparation process CEO & Executive Mission to integrally
Slide 16: We will never forget Brumadinho
We will never forget Brumadinho Rescue efforts resumed for 11 missing victims after pandemic protocols 16
Slide 17: Vale is committed to repairing the environmental damage caused to the affected territories
Vale is committed to repairing the environmental damage caused to the affected territories Tailings volume (million m3) 11.7 9.7 1.6 8.1 Total B1 Spillage Volume To be volume volume removed removed Tailings removal carefully executed and to be concluded by 2023 Integral environmental recovery by 202
Slide 18: Since May/19, the Paraobepa River no longer receives sediments
Since May/19, the Paraobepa River no longer receives sediments Hydraulic barrier to contain tailings 18
Slide 19: Tailings containment works were concluded in Jan/2020
Tailings containment works were concluded in Jan/2020 Fines retention dike 19
Slide 20: A dredging system removes sediments deposited on the Paraopeba riverbed
A dredging system removes sediments deposited on the Paraopeba riverbed 20
Slide 21: The material removed during dredging is stored and dehydrated in geotextile bags
The material removed during dredging is stored and dehydrated in large geotextile bags Water treatment plant 21
Slide 22: The water drained from these bags is pumped into a treatment plant
The water drained from these bags is pumped into a treatment plant and returns clean to Paraopeba river Water treatment plant 22
Slide 23: The original course of Ferro-Carvão stream was re-created
From topographic surveys and photographic searches, the original course of Ferro-Carvão stream was re-created Zero Milestone project 23
Slide 24: Works on containment structures are essential to the safety of the communities
Works on containment structures are essential to the safety of the communities Structural reinforcement works on the remaining dams 24
Slide 25: We are advancing in the recovery of Paraopeba river basin and its surroundings
We are advancing in the recovery of Paraopeba river basin and its surroundings Tailings containment Removal of tailings within the river Monitor and recover water quality Preservation of flora and fauna Paraopeba river basin 25
Slide 26: Genuine and active listening to proper support the communities
Genuine and active listening to proper support the communities JUDICIAL 39 community relationship professionals 37 474 Collective Meetings with dialogues with the community ; LABOR DONATION Program of comprehensive support community leaders + 11,400 for affected people DEMAND REGISTERING Social assi
Slide 27: Giving accountability to society
Giving accountability to society A typical weekly schedule consists of Monday Tuesday Wednesday Thursday Friday Saturday Conversations with impacted people and families Weekly meeting Meeting with the Meeting with with families Commission of Internal Report to the promoters, Families alignments on A
Slide 28: Active dialogue with communities and local authorities to invest in community facilities
Active dialogue with communities and local authorities to invest in community facilities and urban infrastructure improvements Day care and family health centers 28
Slide 29: Memorial in tribute to the victims was designed with the families' association
Memorial in tribute to the victims was designed with the families’ association 29
Slide 30: We are progressing with the Integral Reparation Program
We are progressing with the Integral Reparation Program Social legacy Economy recovery • Projects to allow income and employment to communities without Compensation mining actions • Projects to support the construction of permanent 2025 Water Security legacy for society • Works to guarantee water su
Slide 31: Vale is working to complete immediate legal commitments
Vale is working to complete immediate legal commitments Water and sanitation works with local companies1 Sediment containment Emergency reparation works Indemnities and Emergency aid Environmental emergency works and commitments ¹ Water Utility Company of Pará de Minas (CAPAM, Concessionária Águas d
Slide 32: Water supply initiatives have a remarkable relevance in Vale's reparation efforts
Water supply initiatives have a remarkable relevance in Vale’s reparation efforts Works to connect the supply systems of 100% Paraobepa river and Das Velhas river Carlos Prates water pipeline interconnection 99% Water collection in Pará River 95% Technical-environmental feasibility studies to 67% as
Slide 33: By 2025, we will fully repair the damage caused
By 2025, we will fully repair the damage caused… Strategy for Socio-environmental Impacted transforming reparation plan territories Brumadinho 33
Slide 34: With positive legacies, promoting the local economy and workforce
…with positive legacies, promoting the local economy and workforce Mobility of things and people “Brumadinho Digital” Communities take ownership Tourism qualification and have the autonomy to Professional qualification create its own path Support and increase agricultural production Promotion of ene
Slide 35: The Brumadinho event has brought significant lessons
The Brumadinho event has brought significant lessons Social empowered Permanent dialogue and teams listening agenda Reparation Humility Empathy responsibility Fair legal agreements Learning together Take care Unconditional support to those affected 35
Slide 36: Cultural Transformation
Cultural Transformation 36
Slide 37: Vale's culture transformation is underpinned by a bold roadmap with clear milestones
Vale’s culture transformation is underpinned by a bold roadmap with clear milestones Promote culture as a Develop and engage the strategy facilitator leadership to lead the change What we want Influence and model systems Integrate existing initiatives with according to desired behaviors change being
Slide 38: Culture is created from…
Culture is created from… 38
Slide 39: 2019 was the starting point for cultural change
2019 was the starting point for Vale to advance in its pursue for cultural change ✓ Redefinition of aspirations and key behaviors ✓ Leadership as role model ✓ New cultural symbols ✓ Diversity and Inclusion agenda ✓ Cultural diagnosis 39
Slide 40: The strengths of our culture are diluted by three limiting patterns of behavior
The strengths of our culture... Culture of Deliver now Competence Self-sufficiency achievement …are significantly diluted by three limiting patterns of behavior Short-term, single- Deliver now, Infallible Isolated dimensional culture, no matter what competence self-sufficiency exposing sustainabilit
Slide 41: New behaviors to build a more solid and unique cultural narrative
New behaviors to build a more solid and unique cultural narrative Open & Ownership Active Obsessed with Develop Transparent for the Listening Safety & Risk People Dialogue Whole REDEFINING HUMILITY LEARNING TOGETHERNESS PERFORMANCE LEARNING TOGETHER 41
Slide 42: We are taking important steps towards building a better Vale
We are taking important steps towards building a better Vale To transform natural resources into prosperity and Work in Our mission progress sustainable development A great company to be recognized by society in 5 years by: Our ambitions ▪ Benchmark in ▪ Best in class ▪ Talent factory ▪ Leader in lo
Slide 43: A shift that takes place throughout the entire organization: 1st wave (2019)
A shift that takes place throughout the entire organization and is just starting 1st wave (2019) 12 Workshops on cultural evolution Executive Officers, Board of Directors and executives 360º assessment Definition of “Goal” on executives Vale in One Page Leadership Forum with 200 leaders focused HR o
Slide 44: A shift that takes place throughout the entire organization: 2nd wave (2020-2021)
A shift that takes place throughout the entire organization and is just starting 2nd wave (2020-2021) Covid-19 impacts on Vale Journey dialogue with 40 catalysts to leaders influencing culture 360o assessment and coaching with Executive Officers Diversity and Inclusion (“role models”) agenda Busines
Slide 45: Vale is changing and results are already being perceived
Vale is changing and results are already being perceived Consciousness Awareness of existing beliefs Integration with strategic pillars Leadership awareness of the Influencers of culture role of culture Focal points helping disseminate Individual assessments, feedbacks expected behaviors and coachin
Slide 46: Our human capital management is also evolving to support the culture we want
Our human capital management is also evolving to support the culture we want Increase from 13% to 15%1 49% of employees with <5 years2 Female workforce Safety & Operational Excellence Office Renovation of 59% of leadership3 94% satisfaction on relationship with leaders Ferrous Mineral structure chan
Slide 47: We are looking ahead for building a better work culture in Vale
We are looking ahead for building a better work culture in Vale Our ambition Great Organization • Adjust strategy • Measurement and KPIs • Continuous improvements 2025+ • Vale Behavior Tracking • Diversity and Inclusion agenda • Foster culture 2022 experience for leaders • Narrative review • Purpose
Slide 48: Vale's Cultural Transformation will support our ambition
Vale’s Cultural Transformation will support our ambition to becoming the safest and most reliable mining company in the world 48
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