Vale S A : Integrated Report 2022

Integrated Report

2022

Summary

Introduction ___________________________________________________________________________________3

Letter from the Chairman of the Board

Letter from the CEO

Highlights of the year

Approach to reporting

Materiality

About Vale ____________________________________________________________________________________________11

Purpose and Values

Vale Worldwide

Business model

Innovation oriented

Strategic pillars

Advances in our long-term goals

1 Sustainable

mining _______________________________________________________________________________________________________22

1. Human rights _____________________________________________________________________________________22
2. People _________________________________________________________________________________________________________________23

Organizational culture

Compensation

Succession plan

Training and development

Diversity, equity and inclusion (DEI)

3. Reliable operator ________________________________________________________________________28

Vale Production System (VPS)

Health and safety

Risk management

4. Dams ______________________________________________________________________________________________________________________32

Tailings and dam management

Risk assessment

Emergency action plans for mining dams

Dam decharacterization

Evacuated territories

5. Reparation _________________________________________________________________________________________________36

B1 dam failure - Brumadinho

Fundão dam failure and the Renova Foundation

6. Social performance _______________________________________________________________40

Local communities

Indigenous peoples and traditional communities Involuntary resettlement

Land use disputes

7. Voluntary investments ___________________________________________________44

Fighting poverty

Vale Foundation

Vale Fund

Vale Cultural Institute

Volunteering

Vale Institute of Technology (ITV)

8. Mine closure

and future use __________________________________________________________________________________________48

9. Nature _________________________________________________________________________________________________________________49

Biodiversity

Amazon

Ecoefficiency

10. Climate __________________________________________________________________________________________________________55

Roadmap for reductions in Scope 1 and 2 GHG emissions Net zero target

Climate-related risks and opportunities

2 Solutions for

the value chain ___________________________________________________60

1. The role of mining ________________________________________________________________61
2. Low-carbonsolutions _______________________________________________62

Reduction of GHG in the value chain

High-quality product portfolio

Partnerships with customers and suppliers

1. Responsible sourcing ____________________________________________________64
2. Circular mining

and new business _____________________________________________________________________________67

3 Discipline in

capital allocation ______________________________________68

15. Governance _______________________________________________________________________________________69

Board of Directors

Fiscal Council

Executive Committee

Ethics and compliance

Compliance with laws and regulations

Unfair competition and conflicts of interest

Data privacy

16. Economic performance __________________________________________75

Socio-environmental expenditures

Business context

Production and sales highlights

Indexes and ratings

Participation in entities and associations

Peer Reviewers

Limited Assurance Report

GRI content index

Credits

Presentation	About Vale	1 Sustainable Mining	2 Solutions for the value chain	3 Discipline in capital allocation	Peer Reviewers	Assurance	GRI	Credits

Cooperation means to listen. Cooperation means creating a collective capacity to think, engage, dream and implement possible futures for all, together.

Integrated Report Vale 2022 3

Presentation	About Vale	1 Sustainable Mining	2 Solutions for the value chain	3 Discipline in capital allocation	Peer Reviewers	Assurance	GRI	Credits

Letter from the

Chairman of the Board GRI 2-22

The world is on the threshold of a powerful energy transition. At the same time, companies

and governments are faced with the task of overcoming the challenges posed by an increasingly complex world including geopolitical concerns, energy crises in Europe and in global supply chains, high levels of global inflation, and the slow recovery from the pandemic in some regions of the planet,

to name a few.

Vale's Board of Directors has the role of overseeing and supporting our journey towards a more sustainable and safer mining model, allowing for the development of low-carbon solutions, combined with the creation of value for society and a focus on business discipline. To exercise its role more efficiently and assertively, the Board underwent a reformulation process including the adoption of market best practices and electing independent officers, including the Chairman of the Board.

financial targets. In the long term, the contribution of ESG metrics rose from 20% in 2020 to 25% in 2022. This demonstrates the company's commitment to the future impact of our decisions today.

With regard to the governance of our dams and tailing facilities, the lesson learned from the Brumadinho tailings dam failure resulted in a complete transformation of our risk management processes, and the safety of Vale's assets. Today, in order

standards and legislative amendments that have been introduced in Brazil and are in place in Canada.

Our tailings dam management system is in line with the GISTM. Our goal is to reach 100% conformance of critical structures1 by August 2023 and, by August 2025, we expect to bring the standard to all geotechnical structures we operate.

Vale is committed to improving

Jose Palma	Vale's Board of
photo:	Directors has the
role of overseeing
	and supporting our
	journey towards a
	more sustainable
	and safer mining
	model.

Vale, as a global company, is entrenched in this scenario and has been implementing its strategy not only to ensure effective operational performance, but also to create value for society, investors, employees, suppliers, communities, among other stakeholders.

Our business needs to respond both globally and within the mining industry. Climate change mitigation directs the world towards a necessary energy transition, but the pace of action may be affected in the long term by dependence on gas and other fossil fuels. Within our sector, the safety of people and our operations is an immediate imperative for risk management strategies.

Vale's by-laws, regulations and corporate governance today follow international standards, similar to those of our European peers. We consider ourselves a true corporation. However, Board composition can still be improved. We need to increase the diversity of Board members in terms of gender and race, in addition to having international participation.

Another noteworthy advance has been in executive, variable compensation, which includes environmental, social and governance (ESG) metrics. In the short term,

30% to 40% of collective targets are linked to non-financial indicators and ESG, while 35% are linked to

to ensure greater effectiveness and reliability of the overall risk-management process and company decision-making, the company operates according to a management model based on several layers of defense, that is subject

to ongoing self-assessments and reviews carried out by third parties.

Reports providing updates on the integrity of our geotechnical structures undertaken by independent experts are periodically reviewed by the Board of Directors and disclosed publicly. We have sought to implement the Global Industry Standard for Tailings Management (GISTM), as well as the leading tailings management

our performance and contributing to enhancing the lives of people in the areas where we operate. The company has invested in technological solutions to reduce its carbon emissions by carrying out tests with locomotives, trucks, and electrical equipment in Brazil as well as in its underground mine operations in Canada. Through the Vale Fund,

it has sponsored forest recovery and protection, in addition to investing in research on biodiversity through the Vale Institute of Technology (ITV).

In the social field, in 2021 our Executive Committee announced the bold target to support the upliftment of half a million people out of extreme poverty by 2030. In

2022, we developed a roadmap with targeted actions. A comprehensive international study was carried out, experts were consulted, and they corroborated our understanding that extreme poverty is multidimensional, and influenced by several factors, beyond those purely financial.

In order to reach this target, we will need to work with great managerial and mobilization capacity, aiming to build partnerships with the public and private sectors, in addition to working with competent organizations already working within this field, but that may lack the resources to scale actions to greater social transformation.

We want to contribute to the empowerment of local communities that may not have access to fundamental rights, enabling them to become resilient and leaders of their own future. This will also help in Vale's own cultural transformation.

We thank all our stakeholders and invite you to join us in our path towards sustainable mining aligning our progress to society's needs and their expectations of our business.

José Luciano Penido

Chairman of the Board of Directors at Vale

1 Critical structures are those categorized in 'extreme' or 'high' potential consequences according to the GISTM methodology.

Integrated Report Vale 2022 4

Presentation	About Vale	1 Sustainable Mining	2 Solutions for the value chain	3 Discipline in capital allocation	Peer Reviewers	Assurance	GRI	Credits

Letter from the CEO GRI 2-22

In these last four years, we have publicly

Since the failure of the Mina do Córrego do Feijão dam, in Brumadinho, our primary commitment has been on compensation and reparation, always undertaken through dialogue and with respect. We have made significant progress, but we know that there is still much to be done, especially in continuing the search for the three people who have not yet been located. We will never forget Brumadinho and the lessons learned from the tragedy will stay with us forever.

In these last four years, we have publicly stated before a wide variety of stakeholders our commitment to act strategically to eliminate any risks associated with our operation, to remodel our business and, as a consequence of the lessons learned and of our operational discipline, to reposition the company before the market and other audiences.

In 2022, we made important progress with respect to the decharacterization1 of our tailings dams. To date, we have decharacterized 40% of our upstream structures and the B3/B4 dam in Nova Lima, Minas Gerais, has been downgraded from the highest risk level2. This was made possible through the advancement of the decharacterization process, with the

removal of more than 50% of the tailings originally held within that facility. We have spared no effort in this challenge, and we expect to have no dams at critical level by 2025.

Our main value is life first, and safety has become an obsession in our company. Part of this commitment is to the health and well-being not only of those who make up our company, but also to the communities with whom we interact. We achieved major advances last year and we are relentlessly pursuing progressively better results. The foundations of our management system, the Vale Production System (VPS), are already in place, but we need to ensure its adoption by all direct employees and contractors.

Vale remains truly committed to promoting inclusion and valuing diversity, and we have achieved positive results. We ended 2022 with 22.1% women in our workforce and 22.6% in top leadership positions. Our goal is to double the representation of women in the company, from 13% to 26%, by 2025. Today, we have about five thousand more women than in 2019, when the target was announced. Vale has also set the goal that 40% of leadership positions (coordinators and above) in Brazil be occupied by black

employees by 2026. We ended 2022 with 32.1% of these positions occupied by self-declared black people.

2022 was special for the company: we celebrated our 80th anniversary and are now looking ahead to the next 20 years. What type of company do we want Vale to be on its 100th anniversary? We are well positioned as a major player in the ongoing energy revolution. We have the capacity to meet the demand for metals essential for the electric vehicle industry, such as nickel, copper and cobalt.

Our core business, iron ore, is also transforming and offers solutions for the decarbonization of the steel industry. We have signed agreements with customers in the Middle East to create mega hubs, focused on low-carbon products such as green briquettes. Developed by Vale,

this innovative product can reduce emissions in steel production by up to 10%. We are building a briquette plant in Vitória, Espirito Santo, to meet market demand. We have entered into decarbonization partnerships with more than 30 customers, representing about 50% of our Scope 3 emissions. In the pelletizing area of our business, we are testing biocarbon to replace anthracite coal.

The re-use of tailings generated in the iron ore production process as an alternative to riverbed or coastal sand mining is another line of action in the circular economy. The product has several commercial applications, such as concrete, mortar, artifacts, cement, and road pavement. Each ton of sand produced represents one less ton of tailings being disposed of in piles or tailings dams.

There has been a lot of talk about nature-based solutions, and we at Vale understand this concept of being a "nature-based business" because we see it as an opportunity. We have a range of initiatives, from science and research, through the Vale Institute of Technology, to actions that encourage the bioeconomy and forestry agenda, under the responsibility of the Vale Fund. During the UN Climate Change Conference (COP-27), we launched important initiatives to support this, such as "Biomas" (meaning Biomes), a joint venture with other companies that will contribute to the recovery and protection of forests in Brazil.

In 2022, we also celebrated 40 years of relations with the Xikrin do Cateté Indigenous People.

We concluded an agreement, and to

photo: Jose Palma

celebrate, I had the opportunity to visit the mother village of the Xikrin. A new chapter of this relationship is being built, based on trust and dialogue. This action is part of

the goal of contributing to the indigenous communities neighboring our business in the pursuit of their rights, and is linked to our Social Ambition, launched at the end of 2021 and formalized in 2022.

This Social Ambition includes the goal of contributing to lifting 500,000 people out of extreme poverty by 2030. We understand that the fight against social inequality is crucial and must be tackled with the engagement of all sectors of society: public authorities, companies, and third-party entities.

stated before a wide variety of stakeholders our commitment to

act strategically to eliminate any risks associated with our operation.

The milestones presented here

• some of which have already produced concrete results - help build the future of the Vale we want: a company focused on promoting sustainable mining and developing low-carbon solutions, without losing sight of discipline in capital allocation.

In conclusion, I thank everyone who has dedicated their efforts and resources in helping us to honor our commitments. I invite you, the reader, to consider this report from the perspective that we are on a journey, guided by a single purpose: to improve life and transform the future together.

Eduardo Bartolomeo

CEO of Vale

1. Decharacterization is the process of reshaping the terrain of our upstream tailings dams and partially or totally removing tailings from the reservoir and reintegrating the structure into the environment, so that the structure no longer serves its primary purpose of tailings disposal.
2. Risk level (or emergency level as defined on Brazilian regulation ANM 95/2022) classifies potential risks that could compromise dam safety.

Integrated Report Vale 2022 5