Vale

InfluenceMap Score
C-
Performance Band
61%
Organisation Score
56%
Relationship Score
Sector:
Metals & Mining
Head​quarters:
Rio de Janeiro, Brazil
Brands and Associated Companies:
Vale Fertilizantes
Official Web Site:

Climate Lobbying Overview: Vale appears to have mixed engagement with climate policy. The company has positive top-line messaging on climate action and the energy transition, but has mixed engagement on emissions trading schemes in Brazil and Canada. The company also appears to support the role of fossil gas in the energy mix, and sits on the Energy and Climate Change Commitee at Eurometaux, which lobbies negatively on climate policy in the EU.

Top-line Messaging on Climate Policy: Vale’s top-line messaging on climate change is broadly positive. On its ‘Sustainability’ webpage, accessed in August 2022, Vale appeared to support GHG emissions reductions in line with the temperature goals of the Paris Agreement, i.e. 1.5°C to 2°C. In its 2021 Integrated Report, published in May 2022, Vale supported the Paris Agreement along with a “robust” global emissions trading system under Article 6 of the treaty. Vale’s ‘Climate Change’ webpage, accessed in August 2022, also stated support for climate policies which include a carbon price to “stimulate the transition to a low carbon economy”.

Engagement with Climate-related Regulations: Vale’s engagement with climate-related policy is largely focused on market-based mechanisms. On its ‘Climate Change’ webpage, last accessed in August 2022, the company appeared to support carbon pricing policies including carbon tax and emissions trading schemes. In its 2021 Climate Change Report, published in October 2021, Vale supported emissions trading, stating that ‘a carbon market is crucial to enable the net-zero transition’.

However, Vale’s positions on specific emissions trading policies are mixed. In its 2021 CDP response, the company disclosed its support for an emissions trading mechanism in Brazil. In the same response, Vale also criticized the decision to scrap the Ontario Government’s cap and trade program in 2018. However, Vale’s opposition to the repeal of Ontario’s cap and trade program was primarily due to the risk of higher costs under Canada’s Federal Backstop program. Vale also appeared to oppose more ambitious GHG intensity thresholds under the Federal Backstop program in its 2021 CDP response.

In the same 2021 CDP response, Vale appeared to support regulations on mandatory carbon emission and fuel consumption reporting proposed by the International Maritime Organization (IMO). The company also appeared to support regulations focused on energy efficiency and climate goals to achieve the IMO's greenhouse gas emissions reduction targets.

Positioning on Energy Transition: Vale appears to have a mixed position on the energy transition. In a July 2022 press release, Vale appeared to support the role of fossil gas as a “transitional fuel in the decarbonization process” without reference to the need for carbon capture, usage and storage (CCUS), describing it as a cleaner fuel compared to other sources such as fuel oil. In its 2021 Climate Change Report, published in October 2021, Vale supported the phase-out of thermal coal in the energy mix with reference to the need for CCUS. However, the company did not commit to a specific timeline for a phase-out of coal in the energy mix, nor did it communicate the uncertainties and risks associated with CCUS.

Vale appeared to support the electrification of transport in its 2021 Climate Change Report. In a November 2021 Op-ed by the news outlet iPolitics, Vale also appeared to support the development of the electric vehicle industry in Canada. Support for this was also stated in a February 2020 Q4 earnings call, and an April 2021 Q1 earnings call. In its 2021 Climate Change Report, published in October 2021, the company supported the decarbonization of the steel and international shipping industries. Similarly, Eduardo Bartolomeo, Vale’s CEO, appeared to support the decarbonization of the mining sector in a Q2 earnings call transcript in July 2021.

Industry Association Governance: Vale has disclosed a list of industry association memberships on its corporate website, and in its 2021 Integrated Report (published in May 2022). However, both disclosures have no further details of the nature of Vale’s membership to each association or their climate policy positions. The company has also not completed an audit of its industry associations and their positions on climate change policy.

In its 2021 Integrated Report, Vale stated that “we are not involved with any association whose positioning and actions diverge from the goals of the Paris Agreement”. However, Vale sits on the Energy and Climate Change Committee at Eurometaux, which lobbies negatively on climate policy in the EU. Vale is also a member of the Mining Association of Canada, which has mixed engagement on climate change regulation.

InfluenceMap collects and assesses evidence of corporate climate policy engagement on a weekly basis, depending on the availability of information from each specific data source (for more information see our methodology). While this analysis flows through to the company’s scores each week, the summary above is updated periodically. This summary was last updated in Q3 2022.

Additional Note: Vale is headquartered in Brazil, where InfluenceMap’s LobbyMap platform can currently only make a provisional assessment of corporate climate policy engagement, due to limited capability to access publicly available data on this issue. As it is possible that InfluenceMap is not yet able to fully capture evidence of Vale's climate policy engagement activities, these scores should be considered provisional at this time.

QUERIES
DATA SOURCES
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Strength of Relationship
STRONG
 
 
 
 
 
 
 
WEAK
 
46%
 
46%
 
51%
 
51%
 
71%
 
71%
 
67%
 
67%

How to Read our Relationship Score Map

In this section, we depict graphically the relationships the corporation has with trade associations, federations, advocacy groups and other third parties who may be acting on their behalf to influence climate change policy. Each of the columns above represents one relationship the corporation appears to have with such a third party. In these columns, the top, dark section represents the strength of the relationship the corporation has with the influencer. For example if a corporation's senior executive also held a key role in the trade association, we would deem this to be a strong relationship and it would be on the far left of the chart above, with the weaker ones to the right. Click on these grey shaded upper sections for details of these relationships. The middle section contains a link to the organization score details of the influencer concerned, so you can see the details of its climate change policy influence. Click on the middle sections for for details of the trade associations. The lower section contains the organization score of that influencer, the lower the more negatively it is influencing climate policy.