Climate Lobbying Overview: Vale appears broadly supportive of market-based policy mechanisms to combat climate change and has lobbied for the implementation of emissions trading schemes in Brazil, Canada, and the EU. Vale’s engagement with other forms of climate regulation and the energy mix is very limited, but the company retains membership to several industry associations with mixed positions on climate change.

Top-line Messaging on Climate Policy: Vale clearly recognizes the science of climate change in its corporate reporting in 2021, and appears generally supportive of climate action. In its 2019 Sustainability Report, published in April 2020, Vale expressed support for limiting global temperature increases to 2°C in line with the Paris Agreement, and also supported the decarbonization of the steel, metallurgical and shipping chains. Vale appears to support government intervention to price carbon into the economy. Vale’s ‘Climate Change’ webpage, accessed in February 2021, states 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. Vale’s ‘Climate Change’ webpage on its corporate site, accessed in February 2021, appears to support carbon pricing policies including a carbon tax and emissions trading schemes. In Vale’s 2020 CDP response, the company disclosed its support for an emissions trading mechanism in Brazil. Vale’s 2019 CDP response supported carbon backloading under the EU Emissions Trading Scheme to raise the carbon price and increase the effectiveness of the scheme.

Vale’s position on emissions trading in Canada is mixed. In its 2020 CDP response, Vale 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 2020 CDP response.

Vale has had limited engagement with other strands of climate policy. The company appeared to support regulations focused on energy efficiency to achieve the International Maritime Organization’s GHG emissions reduction targets in its 2019 CDP response. However, in March 2018, Vale was reported to have lobbied against ambitious GHG targets for the shipping sector.

Positioning on Energy Transition: Vale has limited messaging around the energy transition. In 2017-18, Vale appeared to support a sustained role for coal in the energy mix. In 2018, Vale Mozambique CEO, Mario Godoy, stated that "the transition away from thermal coal will be lengthy". However, in its 2019 Sustainability Report, the company appeared to support policies aimed at the transition to a “resilient, low-carbon economy”.

Industry Association Governance: Vale has disclosed a list of industry association memberships on its corporate website and in its 2019 Sustainability Report. However, both disclosures have limited or 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. Vale is a member of the European Steel Association (Eurofer), Eurometaux and the Mining Association of Canada, which have mixed engagement on climate change regulation.