Assessment of Vale (Diversified mining) according to the management of its greenhouse gas emissions and of risks and opportunities related to the low-carbon transition.
Level 0: Unaware of Climate Change as a Business Issue
1. Does the company acknowledge climate change as a significant issue for the business?
Level 1: Acknowledging Climate Change as a Business Issue
2. Does the company recognise climate change as a relevant risk and/or opportunity for the business?
3. Does the company have a policy (or equivalent) commitment to action on climate change?
Level 2: Building Capacity
4. Has the company set greenhouse gas emission reduction targets?
5. Has the company published information on its Scope 1 and 2 greenhouse gas emissions?
Level 3: Integrating into Operational Decision Making
6. Has the company nominated a board member or board committee with explicit responsibility for oversight of the climate change policy?
7. Has the company set quantitative targets for reducing its greenhouse gas emissions?
8. Does the company report on Scope 3 emissions?
9. Has the company had its operational (Scope 1 and/or 2) greenhouse gas emissions data verified?
10. Does the company support domestic and international efforts to mitigate climate change?
11. Does the company have a process to manage climate-related risks?
12. Does the company disclose Scope 3 use of product emissions?
Level 4: Strategic Assessment
13. Does the company disclose its membership and involvement in organisations or coalitions dedicated specifically to climate issues?
14. Has the company set long-term quantitative targets for reducing its greenhouse gas emissions?
15. Does the company's remuneration for senior executives incorporate climate change performance?
16. Does the company incorporate climate change risks and opportunities in their strategy?
17. Does the company undertake climate scenario planning?
18. Does the company disclose an internal price of carbon?
19. Does the company ensure consistency between its climate change policy and the positions taken by trade associations of which it is a member?
Carbon Performance alignment of companies in the Vale (Diversified mining) sector with the Paris agreement benchmarks.
The company has not disclosed an emissions intensity that TPI can use to assess current and/or future Carbon Performance. The carbon intensity has been (re-)calculated according to TPI methodology. The company has set targets to reduce its absolute emissions. To calculate the company's targeted emissions intensity, TPI has assumed that its externally sold products grow in line with the growth of the copper equivalent denominator in the National Pledges benchmark. The company's long-term target covers only Scope 1 and 2 emissions, while it has an intermediate target for Scope 3 emissions. The Scope 3 emissions intensity (Categories 10 and 11), which is not covered by the long-term target, is assumed to remain constant from the target year of the intermediate target that covers Scope 3. Please note that this company operates in more than one sector assessed by TPI: we conduct a sector-specific assessment for each of the sectors in which a company operates. In this assessment, we evaluate only the emissions and production data from diversified mining and compare the company's mining-specific pathway to TPI's mining-specific benchmarks. Other activities undertaken by this company are assessed separately, considering only the emissions and production data from those separate activities. Targets adopted by the company that are specific to a particular activity are incorporated into TPI's appropriate sector-specific assessment. We take a case-by-case approach to the interpretation of company-wide targets to evaluate whether targets can reasonably be assumed to apply in proportion to the emissions of the activity under consideration. Investors may want to consider all sector-specific assessments of a given company to understand its overall Carbon Performance. Note that TPI does not necessarily assess every business segment of a given company. Note as well that we do not currently have a Carbon Performance methodology for the coal mining sub-sector.