1. Global Corporate Citizenship & Corporate Social Responsibility, Module B, MBA, 2010 Professor Joanne Lawrence VALE; The CSR Report Card Team Project Final Presentation March 2011 Team 11, Beacon Hill Anastasia Elpida Kokkota Ato Mensah Junhee Han Manish Murarka Ricardo Moraes
2. CONTENTS There is no future without mining And there can be no mining without caring about the future 01 Introduction 02 Mining Industry03 Company Background04 Business Overview05 CSR at Vale06 Recommendation 07 Reference
5. 03Company Background 1. Numbers in VALE 1904 founded 115,000 employees 5continents 35 countries 14.93 billion dallars revenue in 2010 2nd largest mining company in the world 3
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7. Excellence in performance
8. Entrepreneurship
9. Economic, Social and Environmental Responsibility
28. 04Business Overview 3. Stakeholders Media Employees Governments Suppliers Environment Local Communities / NGOs Shareholders Management VALE; The CSR Report Card Team Project Final Presentation, March 2011 Global Corporate Citizenship & Corporate Social Responsibility, Module B, MBA, 2010 Professor Joanne Lawrence 7
29. 05CSR at VALE 1. Key Values Sustainable Development Policy VALE Florestar Environmental Management VALE Foundation CSR at Climate Change Technology Institution Biodiversity Human Rights 8
30. 05CSR at VALE 2. Financial Structure U$ 781 million U$ 171.58B Social and Environmental investments in 2009 Market Cap. 9.82 U$ 520 million U$ 201 million Price / Earnings Ratio Social Projects Environment 9.39 ROE (Industry 7.26) U$ 1.5 million 5.23 Donation to Red Cross Japan in 2011 ROA (Industry 3.41) 9
31. 05CSR at VALE 3. Triple Bottom Line Sustainable Development Policy Environmental Responsibility Financial Responsibility Social Responsibility 10
47. 05CSR at VALE 4. Environmental Management Waste management 34.1% reduction in generation of oil-contaminated Water Resource Management Recycle 76% of water usage Energy management - In 2010, decrease energy consumption in Canada by 5% - Invested in palm oil, eco-friendly raw material for biodiesel production Risk management Corporate, business units, operational activities 12
48. 05CSR at VALE 5. Climate Change Vale Carbon program $3million investment to cut gas emissions and eliminate carbon. Greenhouse Gas Emissions - 22% reduction in direct CO2 emissions in 2009 - 40% reduction in indirect CO2 emissions in 2009 Climate Change Letter - Signed agreement to reduce greenhouse gas emissions by 2012 - Approved by United Nations Leadership Forum on Climate Change 13
49. 05CSR at VALE 6. Biodiversity - Vale operations interact with 2,850 plant species and 3,400animal species of which 114 are in danger of extinction. Union for Conservation of Nature (IUCN) - 9% of their total land is located on legally protected land - 28% of land located in high biodiversity value areas 14
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51. In 2007, 873 people were working directly or indirectly with this project15
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53. Investing in education supporting schools and creating literacy programs, sport activities and health care.
59. 05CSR at VALE 10. Human Right VALE’s Spheres of Influence to respect and promote human rights 18
60. 05CSR at VALE 10. Human Right Employees They are creating great conditions for their employees and they are enforcing their personal and professional education Supply chain Vale is creating strong relationships with its suppliers and investigating and preventing child abuses and workers conditions 19
61. 05CSR at VALE 10. Human Right Local Communities Respect to local cultures Governments Working together with governments to improve local human rights. In addition, align with all the government legislations Society in general Vale is actively involved in the improvement of the society and that can be proved from Vale’s membership and acceptance of the following organizations or contracts: United Nations Global Compact ,UN Universal Declaration of Human, International Council on Mining and Metals (ICMM), International Labor Organization (ILO) 20
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63. Vale decreased the waste in aluminum area from 42.000 tons to 4.400 tons
64. 18% of the managers globally and 1.400 employees received training
65. In 2009 is creating the code of for its suppliers
66. In 2007 Vale becomes a member of UN Global Compact
67. Vale has a Governance and Sustainability Committee21
68. 05CSR at VALE 12. External opinions about Vale Economist calls the company “Valuable Vale” "Vale has successfully aligned its CSR efforts with its existing business “ – Forbes Vale not part of Dow Jones Sustainability Index “U.N. Global Compact recognizes Vale’s Sustainability Report” - U.N. Vale rises from B+ in 2007 to A+ score in 2009 22