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Sustainability
Report2023

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Mining forTomorrow:
Sustaining
Operations with
Responsibility
Photo by Muchtamir Zaide

Mining for Tomorrow:
Sustaining Operations
with Responsibility
Vale’s role in supporting sustainability has becomea transition towards a low-carbon economy. We
conduct long-term operational activities throughsustainable practices, continually innovating andinvesting in environmentally friendly technologies
to minimize the negative impacts of mining.
Upholding the principles of sustainability, we forge
strong partnerships with local communities. We
believe that operational sustainability extends
beyond prudent environmental management; it also
includes responsibility for thewell-being of the community.

51

Table of Contents
72
3

Our Commitment to Environmental
Management

64

Empowering the Community Together

Sustainability Governance73

Sustainability Governance Structure75

Sustainability Risk Management Evaluation

75

Improving Sustainability Knowledge

76

Code of Conduct Compliance andWhistleblowing Chanels

Our Commitment to Sustainability Governance77

Supporting Anti-Corruption

9

CEO Message

78

12

Board of Commissioners’ and Board of
Directors’ Statement of Responsibility for thePT Vale Indonesia Tbk 2023 Sustainability Report

Constraints and Challenges in
Implementing Sustainability

78

Building the Nation Together

81

Customer Equality

81

Influence Towards Communities

83

Stakeholder Engagement84

Responsibility for Product/
Service Development86

Support for the SDGs andSustainable Mine Management

All nickel units in matte and other minerals inthis Report are presented in metric tons. One
metric ton is equivalent to 2,204.62 pounds and isdenoted as “ton.”

19

About the Sustainability Report

23

Sustainability Policy and Strategy

29

Environmental Management
Sustainability Performance

Sustainability Report 2023

Maintaining a Decent and Safe
Working Environment Together

7

About PT Vale Indonesia Tbk

2

Commitment to Human Rights

59

Our Commitment to Community
Development (Social)

13

This document may contain plans, projections,strategies, and specific Company objectives,
which are not statements of historical fact
and should be understood as forward-looking
statements based on applicable law. Forwardlooking statements are subject to risks anduncertainties that may cause the Company’s
actual conditions and results in the future todiffer from what is expected or indicated. There is
no guarantee that the results anticipated by theCompany, or indicated by the forward-looking
statements, will be achieved.

52

5Note for Report Readers

Forward-looking Statements

Social Sustainability Management Performance

31

Materials Used and Material Stewardship89

Appendix

33

Low Carbon Agenda

90

Independent Assurance Statement

41

Implementing Mine Land Reclamation andBiodiversity Conservation Together

92

45

Reducing Landfill Loads Together

48

Reducing Water Consumption
Intensity Together

50

Compliance, Complaint Handling, andSupplier/Work Partner Evaluation

Financial Services Authority Regulation (POJK)
Number 51/POJK.03/2017 and Financial Services
Authority Circular Letter (SEOJK) Number 16/
SEOJK.04/2021, GRI Content Indeks, Reference
to the Sustainability Accounting Standard
Board (SASB) Metals and Mining (2021)

101

Feedback FormOur Commitment to Environmental Management

Our Commitment toEnvironmental Management
ICMM Principles:
Environmental Performance
Conservation of Biodiversity
Responsible Production
In line with the commitment tosustainability in environmental
management to support Net Zero Emission(NZE) from scope 1 and scope 2 by 2050,
PT Vale focuses on implementing newrenewable energy (EBT) to reduce carbon
emissions with a target of reducing carbon
emissions by 33% by 2030. The entire
development project has undergone acomprehensive risk management process insocial and environmental aspects, including
the preparation of an Environmental
Impact Analysis (AMDAL) document. This
process ensures that potential impacts
are thoroughly assessed, and appropriate
measures are implemented to mitigate
adverse effects on the environment.
In 2023, the Company also initiatedthe construction of a nursery for theIndonesia Growth Project (IGP) in Pomalaa,
Kolaka Regency, Southeast Sulawesi. The
nursery facility spans five hectares andhas a capacity to produce one million plantseedlings annually, including endemic
plant species from Southeast Sulawesi.
The nursery is designed to support postmining reclamation in the Pomalaa Blockand other reclamation needs in Kolaka.

3

Sustainability Report 2023

Our Commitment to Environmental Management

Environmental Management
Performance Highlights[POJK51-B.2]

Ministry of Environment and Forestry PROPER Achievement

Waste Management Performance

2023

2022

2021

Description

Satuan

2023

2022

2021

Green

Green

Green

Non-Industrial Domestic Waste
Generated

Ton

875

670

1.001

Non-Industrial Domestic Waste
Segregated

%

15.1

15.2

10.2

Industrial Non-Hazardous Waste

Ton

12,165.1

13,792.0

8,721.0

Unit
Ha

2023
224.4

2022
295.4

2021
283.7

Ha

3,703.6

3,500.2

3,249.1

Trees
Trees
Trees

171,70286,736
14,441

179,933
49,242
17,631

219,595
10,761
22,2062022

2021

Emission Control PerformanceSO2 Emission Intensity
Ton SO2/Ton Ni

GHG Emission Intensity
Ton CO2eq/Ton Ni

Particulate Emission
Intensity
Particulate/Ton Ni

2023

0.75

2023

28.7

2023

0.007

2022

0.72

2022

29.1*

2022

0.009

2021

0.77

2021

30.1

2021

0.020

*Restatement of data 2022: Addition of AFOLU/new open area

Energy Usage Performance
Description

Land and Biodiversity Management Performance
Description
Rehabilitated Land Area
Accumulated Area of Rehabilitated andReclaimed Land
Total Trees Planted
Total Local Trees
Total Endemic Trees

Unit

2023

2022

2021

Energy Usage

GigaJoule

30,974,879

26,956,105

28,551,417

Energy Intensity

GigaJoule/
Ton Ni

437.9

448.6

436.6

HSFO Usage Intensity

Barrel/Ton Ni

23.6

23.8

19.9

Coal Usage Intensity

Ton/Ton Ni

4.92

5.00

5.79

Hydroelectric Power Plants

HSD Usage Intensity

Liter/Ton Ni

969.6

994.1

1,094.9

Power Usage Intensity(Hydroelectric and Thermal
Power Plants)

MWh/Ton Ni

34.7

36.2

35.3

4

Sustainability Report 2023

Renewable Energy Usage
Description

Unit

2023

Unit

3

3

3

MW

365

365

365

Biodiesel B30*

Liter

4,572,231

17,579,105

20,884,893

Biodiesel B35**

Liter

18,485,791

N/A

N/A

*Data for 2021 through March 2023 using B30 Biodiesel**April 2023 using B35 Biodiesel dataOur Commitment to Community Development (Social)

Our Commitment to Community
Development (Social)
ICMM Principles:
Human Rights
Social Performances
Stakeholder Engagement
Health and Safety
We aim to continue our presence andcontribute positively to the community,
including creating more job opportunities.
In 2023, PT Vale initiated the constructionof a nickel processing plant or smelterin Bahodopi, Morowali Regency, Central
Sulawesi, and an HPAL plant in Malili,
East Luwu Regency, South Sulawesi.
PT Vale is committed to maximizing
local employment and enhancing
competencies through workforce training.
Another benefit of PT Vale’s existence isthat it contributes to the state throughtax payments and non-tax state revenue(NTSR). The value of the Company’s
payments for central tax obligations and
NTSR managed by the Directorate Generalof Taxes, the Ministry of Energy andMineral Resources as well as the Ministry ofEnvironment and Forestry, and the Ministryof Transportation for the period 2011-2023
reached US$1,614 million. Meanwhile, local
tax payments to provincial and regency/
city government treasuries at PT Vale’s
work locations for the 2011-2023 period
reached US$267 million, while the 20222023 period reached US$58 million.

5

Sustainability Report 2023

Our Commitment to Community Development (Social)Social Sustainability
Performance Highlights[POJK51-B.3]

Total and Percentage of Local Employees
Unit

2023

2022

2021

Total Employees

Description

Person

3,023

2,934

2,966

Total Local Employees

Person

2,589

2,550

2,570

%

86

87

87

Percentage of Local Employees

Total Employees and Average Training Hours
Description

Unit

2023

2022

2021

Person

3,023

2,934

2,966

Hours

87,639117,360

121,781

Hours perPerson29

40

41

Total Employees
Total Training Hours
Training Hours per Employee

Occupational Health and Safety (OHS) and Environment
Unit

2023

2022

2021

OHS Training per Employee

Description

Hours

18,196

18,415

15,821

Recordable Injury Frequency
Rate

%

0.31

0.68

0.70

Safe Working Hours

Hours

8,737,825

14,182,199

5,006,592

Lost Work Days

Days

22

6,009

170

Total Environmental Training
Hours*

Hours

4,244

2,264

792

*There is a restatement of the 2022 and 2021 data due to calculations which include internal training
conducted by the Company.

6

Sustainability Report 2023

Integrated Community Empowerment and Development Program
Description

Unit

2023

2022

2021

Total Programs/Activities

Unit

164

82

54

Total Funds

Million USD

3.7

4.9

2.6

Estimated Total
Beneficiaries

Village(s)

38

38

38

Individual(s)61,59815,54043,205

Description

Unit

2023

2022

2021

Additional Donations
Beyond the Integrated
Community Empowerment
and Development Program

ThousandUSD

2,672**

938*

39

Donations and Assistance*Sorowako and Bahodopi Blocks**Including the Jakarta area, Pomalaa Block, Bahodopi Block, and Sorowako BlockOur Commitment to Community Development (Social)

Our Commitment to
Sustainability Governance

ICMM Principles:
Ethical Business
Decision Making
Risk Management
PT Vale operates an integrated mining
operation, which involves not only mining
but also processing. In compliance withregulations governing the extension of theCompany’s contract into a Special Mining
Business License (IUPK), on November
17, 2023, PT Vale and PT Mineral Industri
Indonesia (Persero) or MIND ID signed a
Heads of Agreement (HOA) regarding PT Vale
Indonesia Tbk’s Divestment Commitment.
Following this agreement, on February
26, 2024, the Company signed a sales andpurchase agreement for 1,391,087,420 shares
to MIND ID became the largest shareholder
with a total shareholding of 34%.
The Company is committed to respecting
and safeguarding human rights in all its
operational and business activities. As
part of this commitment, the Company
organizes human rights training sessions forall employees. The purpose of these training
sessions is to ensure that team members
have a comprehensive understanding of
human rights and their proper handling,
particularly in interactions with thecommunity. The training aims to empower
the team to identify risks related tohuman rights violations and subsequently
implement effective mitigation measures.

7

Sustainability Report 2023

Sustainability Governance Performance Highlights

Sustainability Governance
Performance Highlights

Description

Unit

2023

2022

2021

Nickel in Matte Production Performance and Nickel Ore Volume
Nickel in Matte Production
Nickel Ore Volume(Limonite)
Nickel Ore Volume(Saprolite)

Proven Ore Reserves
Probable Ore Reserves
Proven Ore Reserves
Probable Ore ReservesTon

70,72860,09065,388Million
Tons
(DKP)

81.1

N/A

N/A

132.2

N/A

N/A

122.3

62.0

65.7

99.0

46.9

42.1

Ton

71,10860,96066,515

Economic Performance [POJK51-B.1]
Nickel in Matte Sales
Revenue
Total Economic Value Distributed
Total Economic Value Retained

ThousandUSD

Net Profit

1,232,263

1,179,452

953,174

907.395

1.047.489

842.205

361,444

142,654

113,683

274,334

200,401

165,797
Violation Reporting Handled through the Vale Whistleblower Channel (VWC)

Involvement of Local Suppliers
Total Local Suppliers

Business
Entities

305

297*

251*

Eco-Friendly Products
Power Generated from HydroelectricPower Plants*Restatement of 2022 and 2021 data.

8

Sustainability Report 2023

MW

365

365

365

Description

2023

2022

2021

Number of Allegations Received

32

27

33

Percentage of Valid Allegations

30

20

28

Total Allegations Followed Up

94%

74%

85%

CEO Message

CEO
MessageFebriany Eddy

[POJK51-D.1][2-22]

President Director

Dear respected stakeholders,
The implementation of environmental,social, and governance (ESG) practices
is crucial for the future of the domestic
industry, including mining, given theongoing concerns about environmental
damage and changes in social structures.
PT Vale Indonesia Tbk recognizes thisreality, making ESG an integral part of theCompany and ensuring that every decision
we make consider its ESG impacts.
PT Vale Indonesia Tbk adheres tosustainable mining practices in all our
activities in line with the implementationof the Sustainable Mining Principles basedon the International Council on Mining andMetals (ICMM) Sustainable Development
Framework. We believe sustainable mining
practices can significantly contribute to
the well-being of the earth and society.

9

Sustainability Report 2023

Furthermore, it assures our customers
and other stakeholders that PT Vale’s
mineral products (nickel) are obtained
through a responsible production process.
We acknowledge the significant challenges
and obstacles in implementing sustainable
mining. The current dynamics highlight
three critical issues in sustainable mining
for industries involved in extraction,such as PT Vale: deforestation, carbon
emissions, and biodiversity. These
challenges are particularly pronounced
given the Company’s operational presence
in areas abundant with biodiversity
and along the Wallace Line. In fact, outof PT Vale’s expansive 118-thousandhectare mining area, only 48% isdeemed suitable for mining activities.
Moreover, within this 48% area, 90%
is designated as protection forests.

The social dimension is another challenging
yet opportunistic aspect for PT Vale tocontribute to regional development andcommunity empowerment. Some of ourmining areas are located in remote areas
with limited infrastructure. Through ouractivities, the Company can contribute to
infrastructure development, promote local
employment, engage local contractors,
and foster community development.
Currently, the percentage of national
and local supplier involvement in PT
Vale’s supply chain has reached 72.5%.
Dear respected stakeholders,
In 2023, we achieved positive performancein managing ESG and economic aspects.
In environmental management, by 2023
we have reduced GHG emission intensity
by 0.4 tons CO2eq/ton Ni to 28.7 tons
CO2eq/ton Ni from the previous year’sCEO Message

29.1 tons CO2eq/ton Ni. Conversely,
we also recorded fluctuations in GHG
emission volumes each year, influenced
by the proportion of fuel types usedin operations and production levels.
We have also realized mine land
reclamation of 3,703.6 Ha, or 65.4% of
the mine land clearing of 5,667.7 Ha by2023, with a total of four million trees
planted. Not only within the mining area,
PT Vale also continued land rehabilitation
and beyond border reforestation efforts
beyond our operational areas, covering
watersheds in 13 regencies in South
Sulawesi and three regencies in West Java.
Our commitment to biodiversity led us
to establish the Sawerigading Wallacea
Biodiversity Park, inaugurated by President
Jokowi on March 30, 2023, serving as an
education center and a future home forendemic flora and fauna in Sulawesi.
In the social aspect, we have completed
the development of the Integrated
Community Empowerment andDevelopment Program (PPM) for the 20232027 period. The Company also allocated
PPM costs of US$5,571,359, an increase of
4.3% from 2022. The social programs we
implement include education, health, real
income levels, economic independence,10

Sustainability Report 2023

socio-culture, social environment,
community institutions, and infrastructuredevelopment. PPM integrates input
from and is implemented throughcollaboration with stakeholders, aligningwith the Priority Development Plans of theregencies. Through this collaboration, oursocial programs contribute to achieving
the Sustainable Development Goals (SDGs).
For OHS implementation, the valuablelessons learned from the incidents in 2022
prompted PT Vale to enhance compliance,
aiming to prevent fatal incidents during2023. Based on the Mining Safety System
and IMS–Environment Health and
Safety Management System audits, thecompliance rate in 2023 reached 73.6%,
an increase from 70.2% in 2022. During
the reporting period, we enrolled 13 PT
Vale employees in the Mineral and Coal
SMKP Audit Training at the Geominerba
Center for Human Resources Development(PPSDM) of the Ministry of Energy andMineral Resources. Through this training,
we anticipate that the auditing process at
PT Vale will become more comprehensive,given that, according to the decisionof the Director General of Mineral and
Coal, every company must conduct
internal audits at least once a year.

In managing governance and ensuring
compliance with regulations, PT Vale, alongwith its shareholders, namely Vale Canada
Limited (VCL), PT Mineral Industri Indonesia(Persero) (MIND ID), and Sumitomo Metal
Mining Co., Ltd (SMM), on February 26,
2024 signed a definitive agreement in thedivestment of foreign ownership sharesof PT Vale Indonesia Tbk. This agreement
aims to fulfill the Company’s divestment
obligations. It represents support forcollaboration and the consolidation ofstrengths among the three shareholders
to achieve the Company’s strategic
objectives, in alignment with Indonesia’s
aspirations for downstream success byimplementing sustainable mining practices.
Dear respected stakeholders,
The Company’s commitment toimplementing sustainable mining has
driven the positive performance ofnickel in matte production with theachievement of 70,728 tons, 17.7% higher
than in 2022 of 60,090 tons. Likewisewith sales, PT Vale recorded an increase insales of 16.6% in 2023 to 71,108 tons from60,960 tons in 2022. In terms of financial
performance, the Company booked aprofit of US$274.3 million in 2023, growing
36.9% from US$200.4 million in 2022.

CEO Message

The positive achievements in the
Company’s production and financial
performance have significantly impacted
our contributions to the country,
manifested through tax payments and
Non-Tax State Revenues (NTSR). Total
tax and non-tax revenue in 2023 reached
US$204,617 thousand, an increaseof 14.3% from 2022 of US$179,024
thousand. PT Vale’s commitment topaying taxes and NTSR has garneredappreciation from the Regional Officeof the Directorate General of Taxes forSouth, West, and Southeast Sulawesi.
Dear respected stakeholders,
PT Vale’s sustainability performanceachievements in 2023 were supported byrisk management by implementing ISO
31000:2018, ISO 55001:2014, and COSOERM on Risk Management and AssetManagement. One of the focuses ofsustainability risk management is climatechange, addressed by establishing theRoadmap to Carbon Neutrality 2050.
Short-term targets are achieved throughenergy efficiency solutions and maximizing
the use of renewable energy; the midterm target for 2030 is a 33% reduction
in absolute scope 1 and 2 emissions; thelong-term target is to achieve carbon
neutrality (net zero emissions) by 2050 or
10 years earlier than Indonesia’s target.

11

Sustainability Report 2023

Risk management is performed througha comprehensive process coveringsocial and environmental aspects,
involving both the community and otherstakeholders in all activities undertaken.
Indeed, we are aware of our commitment
to implementing best practices,considering the dynamic external factors
at the local, national, and global levels.
One of these factors is the diversity ofsustainability performance assessment
standards and initiatives to support
ESG management. We address thisby developing an ESG Roadmap as acomprehensive guide outlining theCompany’s strategic initiatives for ESG
management excellence from 2022 to2026. The Roadmap is implemented
through five steps: Mastery, Performing,
Excellence, Inspire, and Sustaining. In
2023, our ESG management entered the
Performing stage, involving the planningand coordination of collective actions
for the holistic implementation of ESG
in sustainable nickel mining operations.

Dear respected stakeholders,
Concluding this message, we express
our gratitude to all stakeholders forthe support extended to PT Vale in
implementing sustainable practices.
We hope the support thus far willcontinue and that the establishedcollaboration will further improve to
guide PT Vale in realizing its ambition
to pioneer sustainable mining
practices in Indonesia and globally.
Jakarta, April 2024
Febriany Eddy
CEO and President Director

Board of Commissioners’ and Board of Directors’ Statement of Responsibility
for the PT Vale Indonesia Tbk 2023 Sustainability Report

We, the undersigned, hereby declare that all information contained in the PT Vale Indonesia Tbk 2023
Sustainability Report has been presented in its entirety, and that we assume full responsibility for the accuracyof the report based on POJK 51/ POJK.03/2017. This statement is hereby made with all integrity.

BOARD OF DIRECTORS

Febriany Eddy

Adriansyah Chaniago

President Director

Vice President Director

Bernardus Irmanto

Vinicius Mendes Ferreira

Abu Ashar

Director

Director

Director

BOARD OF COMMISSIONERS

12

Emily Olson

Muhammad Rachmat Kaimuddin

President Commissioner

Vice President Commissioner

Olga Kovalik

Fabio Ferraz

Yusuke Niwa

M. Jasman Panjaitan

Commissioner

Commissioner

Commissioner

Commissioner

Farrah Carrim

Raden Sukhyar

Rudiantara

Dwia Aries Tina Pulubuhu

Commissioner

Independent Commissioner

Independent Commissioner

Independent Commissioner

Sustainability Report 2023

Notes: The latest structure of the Company’s Board of Commissioners based on the decision of the Company’s Extraordinary General Meeting of Shareholders on March 28, 2024.

About PT Vale Indonesia Tbk

About PT Vale Indonesia Tbk
Company Nameand Locations[POJK51-C.2]

Business Scale[2-1]

Company Name

Description

PT Vale Indonesia Tbk

Total Employees

Head Office Address [2-1]

PT Vale Indonesia Tbk
Employees

Sequis Tower, 20th Floor, Unit 6 & 7
Jl. Jend. Sudirman Kav. 71
Jakarta 12190, Indonesia
Phone:: +62-21 5249000
Fax: +62-21 5249020
Website: https://vale.com/indonesia
Email: ptvicommunications@vale.com

Representative Office
Makassar, Sulawesi Selatan
Jl. Somba Opu No. 281
Makassar 90113
Sulawesi Selatan, Indonesia
Phone.: +62 411 366 9000
Fax.: +62 411 366 9020

Processing Plant Address
Main Office Plant Site Sorowako
Luwu Timur 92984
Sulawesi Selatan, Indonesia
Phone.: +62 475 332 9100
Fax.: +62 475 332 9575

Shareholders andLegal Structure[POJK51-C.3

Unit

2023

2022

2021

Legal Status:

Person

3,023

2,934

2,966

Stock Code: INCO

Production Volume
Nickel in Matte
ProductionTon

70,72860,09065,388

US$
Thousand

1,232,263

1,179,452

953,174

274,334

200,401

165,797

361,462US$2,564,537
Thousand
2,925,999

303,336

318,367

2,354,780

2,154,461

2,658,116

2,472,828

Operating Revenue
Total Revenue
Net Profit for the Year
Total Capitalization
Total Liabilities
Total Equities
Total Assets

Public Limited Company.
Listed on the Indonesia Stock Exchange (IDX) on May 16, 1990.

On February 26, 2024, a 14% divestment of PT Vale
Indonesia Tbk’s shares was signed between PT
Mineral Industri Indonesia (Persero) or Mining Industry
Indonesia/MIND ID, Vale Canada Limited (VCL), andSumitomo Metal Mining Co., Ltd. (SMM), at a value of
Rp3,050 per share. Following the divestment, MIND
ID acquired 1,391,087,420 shares of PT Vale Indonesia
Tbk, increasing its ownership from 20% to 34%, thus
becoming the controlling shareholder of the company.
Thus, a significant change occurred in the ownershipcomposition of the Company as of February 26, 2024.
This report discloses the share ownership composition
as of December 31, 2023, to fulfill reporting periodrequirements, and the share ownership compositionof the Company as of February 26, 2024. [POJK51-C.6]
Shareholder Composition as of December 31, 2023
Vale Canada
LimitedSumitomo Metal
PT Indonesia
Asahan Alumunium Mining Co., Ltd(Persero)

43.8%

13

Sustainability Report 2023

15.0%

20.0%

0.5%

20.6%

Vale Japan(Limited)

PublicAbout PT Vale Indonesia Tbk

Operational Area

Employees[2-1d]

As of 2023, there were 3,023
employees, comprising 2,714 males
and 309 females. All employees work
full-time, with no contract workers.

Country of Operation:
Country of operation: Republic of Indonesia.
The Company does not operate in any other country.

99.9% of PT Vale employees are
Indonesian citizens (WNI), while
0.1% are expatriates. The majorityof employees are local workers from
East Luwu Regency and other regionsin South Sulawesi. Of the local
workforce, 246 individuals, or 39.1%,
hold managerial positions. [202-2]

Nickel ore mining and nickel in matte production
activities are conducted in the Sorowako Block,
East Luwu Regency, South Sulawesi. The
nickel in matte produced is sold toVale Canada Limited (VCL) and
Sumitomo Metal Mining Co. Ltd(SMM). [2-6]

Total PT Vale Indonesia Tbk Employees by Gender [2-7]
Year

Male

Female

Total

Total

%

Total

%

Total

%

2023

2,714

89.8

309

10.2

3,023

100

2022

2,678

91.3

256

8.7

2,934

100

2021

2,710

91.4

256

8.6

2,966

100

Total PT Vale Indonesia Tbk Employees by Employment Status and Gender [2-7]
Sorowako: 70,566 ha(South Sulawesi)

Employment Status
Permanent Employees

2023

2022

2021

Male

Female

Total

Male

Female

Total

Male

Female

Total

2,655

281

2,936

2,624

253

2,877

2,682

253

2,935

Contract Employees

59

28

87

54

3

57

28

3

31

Total

2,714

309

3,023

2,678

256

2,934

2,710

256

2,966

Total PT Vale Indonesia Tbk Employees by Age Group and Gender [2-7]Age Group• Suasua: 4,466 ha• Pomalaa: 20,286 ha(Southeast Sulawesi)

14

Sustainability Report 2023

Bahodopi: 22,699 ha(Central Sulawesi)

2023

2022

2021

Male

Female

Total

Male

Female

Total

Male

Female>50 Years

541

24

565

557

17

574

484

15

Total
499

31-50 Years

2,059

228

2,287

2,023

209

2,232

2,137

213

2,350

≤30 Years

114

57

171

98

30

128

89

28

117

Total

2,776

308

3,023

2,678

256

2,934

2,710

256

2,966

About PT Vale Indonesia Tbk

PT Vale has other workers
who are not its employees,
such as contractors andsuppliers who work based oncontractual agreements. This
report does not include them
due to their dynamics. [2-8]15

Sustainability Report 2023

Total PT Vale Indonesia Tbk Employees by Education and Gender [2-7][2-4]2023
Education Level
Male
FemaleTotal
Male
Doctorate11
1
Master’s degree
58
22
80
53
Bachelor’s degree
698
176
874
609
Diploma
274
56
330
284
High school
1,663
55
1,718
1,705
Junior high school20
20
26
Elementary school
0
Total
2,714
309
3,023
2,678

2022
Female
0
16
134
58
48
0
0
256

Total
1
66
743
342
1,753
26
0
2,934

Male
1
50
607
287
1,740
25
0
2,710

2021
Female
0
13
136
59
48
0
0
256

Total
1
63
743
346
1,788
25
0
2,966

Total PT Vale Indonesia Tbk Employees by Position and Gender [2-7]2023
Position
Male
FemaleTotal
Management
52
7
Senior General Management23
326
General Management
104
11
115
Senior Staff
402
79
481
Staff
691
131
822
Non-Staff
1,489
83
1,572
Total
2,776
308
3,023

2022
Female
1
2
10
64
102
77
256

Total
5
19
93
422
782
1,613
2,934

Male
4
16
74
343
678
1,595
2,710

2021
Female
1
1
9
45
117
83
256

Total
5
17
83
388
795
1,678
2,966

Male
4
17
83
358
680
1,536
2,678

Total PT Vale Indonesia Tbk Employees by Placement Area and Gender
2023
Placement Area
Male
FemaleTotal
MaleJakarta47
27
74
47
Makassar
32
5
4
Sorowako
2,552
243
2,795
2,627
Pomalaa56
21
77
0East Bungku
55
16
71
0
Total
2,714
309
3,023
2,678

2022
Female
24
2
230
0
0
256

Total
71
6
2,857
0
0
2,934

Male
41
3
2,666
0
0
2,710

2021
Female
21
2
233
0
0
256

Total
62
5
2,899
0
0
2,966

Total PT Vale Indonesia Tbk Employees by Citizenship and Gender [2-7]2023
CitizenshipMale
FemaleTotal
Male
Indonesian
2,710
309
3,019
2,673
Expatriate
4
0
4
5
Total
2,776
308
3,023
2,678

2022
Female
256
0
256

Total
2,929
5
2,934

Male
2,705
5
2,710

2021
Female
256
0
256

Total
2,991
5
2,966

About PT Vale Indonesia Tbk

Business Activities,
Products andServices, and Other
Relevant Business
Relationships

PT Vale’s Business
Process and Supply
Chain
[2-6]

[POJK51-C.4] [2-6d]

2There were no significant changes in PT

1Vale’s activities and products made in 2023

SCREENINGSTATION

73%

3

ORE
MINING

compared to the previous period.

WET ORE
STOCK

2023

[POJK51-C.6] 2-6d]

Scope of activities in the2023 fiscal year: [2-6]Mining operations for nickel ore, nickel inmatte production, and nickel in matte sales.

7

6
ELECTRIC
FURNACE

REDUCTION
KILN

5DRYER ORE
STOCK

4

DRYER
KILN

PILE

87%

The total production of nickel in mattein 2023 reached 70,728 tons of nickel.

Scope of activities according
to the Company’s Articles of
Association: [2-6]Mining, wholesale trading, transportation,
electricity supply, real estate, wastewater

2022

8

10

CONVERTER

9

PORT

78%
SHIPMENT

management, waste management and2021

recycling, and remediation activities.
We include local and national suppliers in the supply chain, continually increasing the domestic
component level (TKDN). The TKDN achievement in 2023 reached 73%, a decrease from 2022 of
87% due to changes in calculation and assessment methods compared to previous years.

16

Sustainability Report 2023

About PT Vale Indonesia Tbk

Significant Changes
in the Company
During the Annual General Meeting of
Shareholders (AGMS) on May 5, 2023, held
in a hybrid format, shareholders approved
the appointment of Abu Ashar and Matt
Cherevaty as Directors of the Company,
effective from the closing of the AGMS until theclosing of the 2026 AGMS. Shareholders also
approved the reappointment of Rudiantara
as an Independent Commissioner of theCompany, effective from the closing of the
AGMS until the closing of the 2026 AGMS.
During the Extraordinary General Meeting(EGM) on December 6, 2023, held in a hybrid
format, shareholders accepted the resignationof Matt Cherevaty as a Director of the Company,
effective September 8, 2023. Thus, as ofDecember 31, 2023, the composition of theCompany’s Board of Directors consists of:• President Director : Febriany Eddy
• Vice President Director: Adriansyah Chaniago• Director : Bernardus Irmanto• Director : Vinicius Mendes Ferreira• Director : Abu Ashar
PT Vale divested a portion of its share ownershipin its subsidiaries, PT Bahodopi Nickel Smelting
Indonesia (BNSI) and PT Kolaka Nickel Indonesia(KNI), through a corporate action reported
to the relevant authorities in Indonesia. As
per the announcement made, the Company
released a part of its share ownership in PT
BNSI to Taixin (Singapore) Pte. Ltd. and PT KNI
to Huaqi (Singapore) Pte. Ltd. Further details
about this transaction can be found in the
PT Vale Indonesia Tbk 2023 Annual Report.

17

Sustainability Report 2023

Association Membership

Certifications andExternal Awards[POJK51-C.5][2-28]

Certificate No. ID004085,
by Bureau Veritas
Validity:
October 2021 – October 2024
Scope: Mining, processing plantof nickel, including its supportand services

MemberGlobal Scope

Febriany Eddy
as a Vice Chairman
National Scope

MemberGlobal Scope

Extraordinary
MemberNational Scope

MemberNational Scope

MemberNational Scope

MemberNational Scope

MemberNational Scope

MemberNational Scope

MemberGlobal Scope

MemberNational Scope

ISO 17025
Laboratory Test and Calibration Standards
Certification No: LP-1729-DN,
by Komite Akreditasi Nasional
Validity:
28 December 2022 - 27 December 2027
Scope:
Competence of Testing Laboratories andCalibration Laboratories
Certificate No. 01 407 2135341
ISO 50001 Energy Management System byTÜV Rheinland
Validity:
November 2022 – November 2023
(in the process of certificate renewal)
Scope:
Mining and processing of Nickeln Matte productsAbout PT Vale Indonesia Tbk

In addition to Green PROPER, PT Vale received a total of 13 external awards and appreciations from various parties
throughout 2023, including• Performance Recognition for theCommunity Empowerment andDevelopment (PPM)/ Tambang
Menyejahterakan Masyarakat (Tamasya)Award 2023 on December 8, 2023,
awarded by the Ministry of Energy
and Mineral Resources in the Planningand Implementation categories.
• Good Mining Practices (GMP) Award
2023, where PT Vale received theAditama Certificate and Best Trophy- Mineral and Coal Mine TechnicalManagement Aspects, Aditama
Certificate and Best Trophy - Mineraland Coal Conservation Management
Aspects, Aditama Certificate and Best
Trophy - Environmental Management
Aspects of Mineral and Coal Mining,as well as the Main Award forStandardization Management andMining Services Business. The awards
were presented by the Directorate
General of Mineral and Coal of the
Ministry of Energy and Mineral
Resources on September 29, 2023.
• Environmental and Social Innovation
Award (ENSIA) by PT Sucofindo on
August 10, 2023. PT Vale received
three ‚Platinum‘ awards for Water
Efficiency, Emission Reduction, and
Non-Hazardous Waste Management,
and two ‚Silver‘ awards for Social
Innovation and Biodiversity.

18

Sustainability Report 2023

• Corporate Emission Transparency
Awards in the Green Elite and Gold
Plus categories at the Corporate
Emission Transparency Awards 2023
organized by B Universe and Bumi
Global Carbon Foundation (BGK
Foundation) on June 27, 2023.
• Best Partner of the Ministry ofEnvironment and Forestry (KLHK)2023 in the Forest Area Utilization
Permit (PPKH) category with theBest Sustainable Commitment
to Watershed Rehabilitation and
Reclamation, organized by the
Ministry of Environment and Forestryof the Republic of Indonesia.
• Bisnis Indonesia Award 2023 in the Best
Metal Mineral Corporation category,organized by Bisnis Indonesia Daily.
• Foundation for International
Human Rights Reporting Standard(FIHRRST) award in The Best
Sustainability Report (A+) category.
• Indonesia GPR Award (IGA) 2023 in
the Best Public Relations Programcategory, Energy and
Renewable Energy segment,
organized by Humas
IndonesiaPadmamitraaward in theenterpreneurshipcategory.

• Katadata Corporate SustainabilityAward (KCSA) in the Mining sector
for the Environment category,organized by katadata.co.id.
• DEN Award 2023 in the category of
Private Companies Leading the Energy
Transition in the Mining Sector, organizedby the National Energy Council (DEN).
• Asia Sustainability Report Rating (ASRRAT)Gold Rank in the Accordance category.
• Sustainable Village Development
Award 2023 from the Ministry ofVillage Development, Disadvantaged
Regions, and Transmigration (PDTT).

About the Sustainability Report

About theSustainability Report
Basis and Reference for
Issuing Sustainability
Reports

Reporting Principles
and Consistency with
Other Reports

Reporting Entity,
Period, andFrequency• Law No. 40 of 2007 concerning Limited
Liability Companies;

This report has been compiled under the principles
of accuracy, balance, clarity, comparability,
completeness, sustainability context, timeliness, andverification. The information provided is accurate,encompassing positive and negative impacts andtheir management strategies. The narrative ispresented in an easily understandable manner,and data is showcased across different periods for
performance comparison, effectively illustrating
the sustainability of environmental, social, andgovernance management. The report is structured ina well-timed manner, utilizing a tested and verified
process. It serves as a complement to the 2023
Annual Report of PT Vale Indonesia Tbk.

The Company’s Financial Statements arepresented in consolidated form for the fiscal
year ending on December 31, 2023, and has
been audited by a Public Accounting Firm.
The sustainability performance information
is obtained exclusively from PT Vale, covering
operational areas in Sorowako, Bahodopi,
Pomalaa, the Representative Office in Makassar,
and the Head Office in Jakarta. The reporting
period spans from January 1, 2023, to December
31, 2023. The Company publishes its Sustainability
Report annually, with the previous report issued
on April 23, 2023. [2-2][2-3]• Financial Services Authority Regulation(POJK) No. 51/ POJK.03/2017 concerning the
Implementation of Sustainable Finance inFinancial Services Institutions, Issuers, andPublic Companies;• Global Reporting Initiative (GRI) 2021
standards, in accordance to the GRI Standards;• Sustainability Reporting Guidelines & Mining
and Metals Sector Supplement (MMSS) GRI-4.
• Sustainability Accounting Standards Board(SASB) Metals and Mining 2021;

Contact Person [2-3]Adriansyah Chaniago
Vice President Director
Phone: +62-21 5249000
Fax : +62-21 5249020
Email:
ptvicommunications@vale.com

19

Sustainability Report 2023

About the Sustainability Report

Feedback Form andCompany Response[POJK51-G.2][POJK51-G.3]

The report is supplemented by a
Feedback Form at the end. In 2023, wereceived no input in the feedback sheet
related to the 2022 Sustainability Report.

External Assurance
and Restatement[POJK51-G.1]

There is a restatement of informationfrom previous reporting, including
energy use data and local suppliers due
to a change in the basis of calculation.
All disclosed information has been
approved by the President Director as
the highest official in the Company’ssustainability governance. This
Sustainability Report has undergone
external assurance processes byan independent party, SR Asia
Indonesia, based on the approvalof the Board of Directors, There
were no conflicts of interest during
the verification process conducted
on April 3-5, 2024. [2-4][2-5][2-14]

20

Sustainability Report 2023

Stakeholders in
the Determinationof Material Topics

Material Topics Matrix
Occupational Healthand Safety

There have been no changes in material

Economic
Performance

topics from the previous reporting

4.0
3.5

period. Determination of material

3.0

topics using surveys through dialog,

2.5

discussions, and surveys involving
internal and external stakeholders.
Independent parties facilitated the

Water
and Effluents

2.0

Local
community

1.5

discussions, acting as an expert team.

1.0

The results of the discussions identified

0.5

EmissionControl

10 material topics aligned with thecontext of sustainability and supports
the achievement of the SDGs. [3-1][3-2]
List of Stakeholders in the
Determination of Material Topics
Internal

Eksternal• Management- from a FGD• The Public - from apublic survey• Employees- from an
employeesurvey• The Media - using
sprinklr media
monitoring• Local stakeholders- from discussion
and survey sample

Business
Ethics

Waste
Management

EnergyUsage

Stakeholder Perspective
Business Perspective
Average

Post-mining
Rehabilitation
Diversity, Equity,and Inclusion

About the Sustainability Report

Material Topics, Impact Coverage,
and Management[3-3]

Material Topic

Main Topic

Impact Coverage

Material Topic Importance and Management
Environment

Post-mining
rehabilitation

EmissionControl

EnergyUsage

Waste
Management• The restoration of post-mining • Operational area:
land.
Sorowako• Biodiversity conservation.
• Head Office• Operational areas:• Sorowako,• Bahodopi,• Pomalaa.

GHG emission control will help limit climate change by involving all stakeholders. Evaluation
is carried out through regular reporting to the Board of Directors and relevant parties.
Progress is measured against the targets of 33% absolute GHG emission reduction by 2030
and carbon neutrality by 2050 (in line with the Paris Agreement and 10 years earlier thannational targets).

• Head Office• Operational areas:• Sorowako,• Bahodopi,• Pomalaa.

Energy efficiency and NRE usage affect the competitiveness of the production cost andinvolve all stakeholders. Evaluation is carried out by the Board of Directors and relevant
authorities through periodic reporting and the achievement of key performance indicators(KPI) for the implementing functions.

• Head Office• Operational areas:• Sorowako,• Bahodopi,• Pomalaa.

Waste management involves workers, contractors/ work partners/vendors, and thecommunity. It is carried out through recycling, reusing, and reducing (3Rs) waste.
Evaluation is conducted by the Board of Directors and relevant authorities through periodic
reporting and the achievement of key performance indicators for the implementing
functions.

• Head Office• Operational areas:• Reducing the usage intensity of • Sorowako,• Bahodopi,
new water by 10% by 2030.
• Pomalaa

PT Vale controls the impacts of water usage by reducing the use of water newly
extracted from nature and managing effluents to meet quality standards. The activity isimplemented by involving workers, contractors/work partners/vendors, the community,
and the government. Evaluation is carried out by the Board of Directors and relevant
authorities through periodic reporting and the achievement of key performance indicators
for the implementing functions.

• Greenhouse gas (GHG)
emission measurement andreduction.
• Net zero emissions
by 2050.
• Energy efficiency and New andrenewable energy (NRE) usage• Reducing fossil fueldependance• Reducing pollution load andpreventing environmental
pollution.

• Reducing water usage, andmanaging effluents.
Water
and Effluent

21

Post-mining land restoration will restore the environmental setting and bring sustainable
benefits. Restoration activities should involve the community
and are evaluated by the Board of Directors and relevant authorities according to theirdesignation through periodic reporting. PT Vale has identified the impacts as contained in
the AMDAL and the policies implemented in the RPT.

Sustainability Report 2023

About the Sustainability Report

Material Topics, Impact Coverage,
and Management[3-3]

Material Topic

Main Topic

Impact Coverage

Material Topic Importance and Management

Human (Social Aspects)

Occupational Healthand Safety (OHS)

Local
CommuniyDiversity, Equity,and Inclusion• Head Office• Operational areas:• Sorowako,• Bahodopi,• Pomalaa.

OHS management affects production, operational, and supply chain performance. OHS
is managed by implementing the 10 New Golden Rules, obtaining a safe work permit, andstandardizing OHS. OHS management involves workers, contractors/ work partners/
vendors, and the government. Evaluation is carried out by the Board of Directors
and relevant parties through periodic reporting and the achievement of key performanceindicators for the implementing functions.

Managing negative impacts andimproving positive impacts on thecommunity.

• Operational areas:
Sorowako.

Community development and empowerment will generate sustainable support for PT
Vale. The Integrated Community Empowerment and Development Program is planned,
implemented, and evaluated through community and local government involvement. It isreported periodically to the Board of Directors.

• Discrimination prevention
at work, particularly against
women.

• Head Office• Operational areas:• Sorowako,• Bahodopi,• Pomalaa.

• A safe, comfortable, and healthy
workplace.
• Zero incidents• Doubling women’s
representation by 2030.
• Human rights management.

Diversity and inclusion are two among several foundations of the Company’ssustainability, ensured through an equality approach involving workers, contractors,
and suppliers/vendors. Evaluation is carried out by the Board of Directors and relevant
authorities through periodic reporting and the achievement of key performanceindicators for the implementing functions.
GovernanceBusiness Ethics

Economic
Performance

22• Internalizing compliance andanticorruption.
• Acting with integrity andtransparency.
• Economic value generated anddistributed• Risk management

Sustainability Report 2023

• Head Office• Operational areas:• Sorowako,• Bahodopi,• Pomalaa

PT Vale always complies with regulations and has zero tolerance for corruption. Every
year, the Company conducts socialization and training of employees, contractors/work
partners/vendors, and other stakeholders on anticorruption. Evaluation is carried out
by the Board of Directors through periodic reporting, a reporting channel, and theachievement of key performance indicators for the implementing functions.

• Head Office• Operational areas:• Sorowako,• Bahodopi,• Pomalaa.

Economic performance is a basis for the Company’s activities and, therefore, every risk
must be managed by involving all stakeholders. Evaluation is carried out by the Board of
Directors and relevant parties through periodic reporting and the achievement of key
performance indicators for the implementing functions.

Sustainability Policy and Strategy

Sustainability
Policy andStrategy[POJK51-A.1]

23

Sustainability Report 2023

PT Vale is committed to building strong andenduring relationships with stakeholders,investing in minimizing the impact of its
activities, adhering to high ethical standards,
maintaining transparent management, andactively contributing to progress related
to the environment, biodiversity, andsustainable development. We express thiscommitment through various forums, bothwithin the Company and externally.

Sustainability Policy and Strategy

Internalizing
Sustainability[POJK51-F.1] [2-24]

Why dowe exist?

What dowe believe?

How dowe act?

What dowe look for?

Our Purpose

ValuesKey Behaviors

Our Ambition

We exist to improve
life and transform thefuture. Together.

We build and implement a

Make it happen.

phrase ‘Learning Together’ as a

Respect our planetand communities.

shared compass for sustainabletransformation. We continue to24

Sustainability Report 2023

Act with integrity.
Value the people whobuild our company.

new culture reflected in theinternalize this new culture.

Life matters most.

Learning
TogetherObsession with safety
and risk management.

A great Company recognizedby society for being:

Open and transparent dialogue.

Benchmark in safety.

Empowerment withaccountability.

Best in class reliable operator.

Sense of ownership.
Active listening andengagement with society.

Our Levers
SafetyVale Production System (VPS)
PeopleInnovation
Sustainability

Talent driven organization.
Leader in sustainable mining.
Reference in creating
and sharing value.

Sustainability Policy and Strategy

We set sustainability priorities according to our Sustainability Strategy outlined
until 2025. PT Vale is committed to addressing climate change, improving
energy and water efficiency, forest conservation, and improving social
contributions as part of the transition toward carbon-neutral mining.

Sustainability
Strategy Priority

1

Contribution to
Carbon-Neutral SocioEconomy• Develop a roadmap andphased-implementation
toward carbon neutrality(33% GHG emissions
reduction by 2030
from the 2017 baseline,
completion of limitedscale field biomass
trials, and certificationof ISO 50001: Energy
Management System).
The target refers to
the Paris Agreement
and is earlier thanIndonesia’s NDC.

• Finalize the social

agenda: Dongi relocationand land encroachment.

• Completion of gap

2

High
Performance
Culture• Complete succession

planning and implement
IMPACT & rolemodeling training.

• Implement theSupervisor Training
Program.

• Carry out Superior

Employee Training.

• Prepare for diversity andinclusion and implement
programs to overcome
performance problems.

• Improve the quality ofVale Production System(VPS) implementation.

• Conduct local talentdevelopment programs.

assessment andpreparation of
ESG roadmap.

25

Sustainability Report 2023

3

Environmental
Protection &Management• Implement the Green PROPER
environmental complianceagenda, compliance audit,
emission targets, andmonitoring system.

4

Obsessed with
Risk and Safety
Zero N1 and N2• Completion of the HIRA

follow-up and implement
critical controls.

• Reproduce N3 & Hi-Po nonenergy release reports.

• Reclaim 70% of post-mining• Promote the Golden Rules,• Carry out rehabilitation outside• Set up Integrated

land progressively by 2025.
the contract area of work.

INS003, and RAC/MHS.

Operations Control (COI).

• Implement biodiversity• Complete the health program• Implement waste reduction• Implement the Leadershipconservation programs.
and utilization.

• Implement water efficiency
and reduce pollution load.

• Implement an environmental

management system consistently,
one of which is the completionof routine internal and external
ISO 14001: 2015 audits in 2023.

and facilities repair.

in the Field (LIF) program.

5

60kT HPAL Sorowako
90kT Sorowako
120kT Pomalaa
73kT Bahodopi

6

Asset Integrityand Maintenance
Adherence• Improve ore quality by• Zero-Based• Reduce operating• Completion of the Asset

reducing dilution andmoisture content.
variability – kiln
standby and stabilityof the power supply.

• Complete the Continuous
Improvement (CI)process plant and massbalance synchronization
programs.

• Implement a de bottlenecking program.

• Conserving minerals

by utilizing low-gradeore (limonite).

Maintenance
Implementation.
Integrity program fromthe 2012 assessment.

• Implementation of

immersion to improve
supply chain &maintenance synergy.

Sustainability Policy and Strategy

PT Vale ESG Roadmap

2022

2023

2024

2025

BeyondMastery

Performing

Excellence

InspireSustaining

Enhance mutual
understanding on ESG,
policy improvement,
and collective option:

Implementation of ESG,
partnership, monitoring:

ESG impact evaluation, impact
reporting, performancemeasurement, and incentives:

Internal and external
communication:

Become global leader
in ESG:• Become a member ofInternational Communities
that support Sustainability• Formulate monitoringmechanism• Evaluation of impacts
created by ESG programs• Communicate ESG
impacts using allcommunication media• To be a leading in
mining company in
ESG in Indonesia• ESG performancemeasurement• Identify key stakeholders
for communication targets• Evaluate KPIs, metrics,
and ESG targets for
improvement purposes• Communicate internallyand externally to thesetarget stakeholders• To become a world-classmining company thatcarries out sustainable
mining practices• Recognition for ESG
achievements• Continue theimplementation ofother ESG programs,
constructing improvements• Increase awareness,knowledge, understanding,and common perceptionof all divisions regarding
the relationship between
ESG and their division• Formulate ESG policies• Formulate SOPs, formulate
metrics/targets, formulate
KPI and incentive• Socialization

26

Sustainability Report 2023

• Ensure ESG programs havesufficient resources• Seek for relevant partners• Execute partnershipwith IGCN, ICMM, etc• Execute and monitor
planned programs• Measure program success• Formulate acommunication strategy• Continue programs to
support Net Zero Carbon• Formulate improvements
for ESG programs• To become a mining
company that contributes
to the achievement of NDC• Maintain an excellent
ESG system and pursue
continuous improvement

Sustainability Policy and Strategy

Sustainability Strategy
Support sustainable development

Climate Change

Forests

Reduce greenhouse gas
emissions by 33% in linewith the Paris Agreement
and achieve net zero GHG
emissions by 2050, aheadof Indonesia’s NDC target.

Reclamation of ex-mining
land, rehabilitation ofland outside the contractof work and protectionof biodiversity.

in the region and enhance Vale’s
reputation with the community.

Guiding Principles• Low carbon chain induction.
• Shared-value generation.
• Territorial development.
• Trust and credibility.
» Transparency and listening.
» Response agility.
» Participatory process.

EnergySocio-economic
Contribution

Increase clean
energy usage.

Healthcare, education,and income generation.

Water

ESG Gaps

Reduce surface water
usage by 10%.

Eliminate main ESG
gaps in relation tobest practices.

» Embodiment of different view.
» Converging paths discovery.
• Clear and measurable KPIs

27

Sustainability Report 2023

Vale Global’s Sustainability
Strategies and Commitments

Vale 2023 Commitments

1

We need to have agreater responsibility
for everyone involved in ouroperations, the society, andthe earth. We are required
to perfect ways to improve
the quality of life.

2

We have instigated asustainability strategy
to improve the quality oflife and change the future.
Together.

3

For us, the future is theprocess of constantly
evolving, creating andreinventing.

4

For this future, PT
Vale welcomes ideas
by listening and working
together, and creating an
unbroken cycle that brings
prosperity to everyone.

5

We want PT Vale’s future
resources to be used tocreate value for everyone.

Sustainability Policy and Strategy

Pillar Goals and Focus for the Future
Serving thecommunities bycontributing to all.
From the beginning,
PT Vale has served thecommunities, turning
natural resources
into self-sufficientareas, contributing to
the development of
the country. PT Valeis expected to serve
the communities by
providing them withwhat they need andwant, including mining
materials and otherresources to improvetheir quality of life,
while preserving theearth and creatingprosperity for all.

Doing together.
Doing together means
willingness to listen.
Everyone must listen:society, governments,
customers, andespecially the people
who are involved in
PT Vale’s operations.
After all, we are
the communities.
Communities are PT
Vale. Doing together
means creating acollective capacity
to think, design, andrealize possible futures
for everyone. Doing
together means actingwith responsibility,transparency, andconsistency; walking
the talk, a system
to enable PT Vale toalways transform
for the better.

[POJK51-C.1]

Using Vale’s mobility
to do something
extraordinary.

Transforming thefuture by taking careof the present.

All mining companies
are required topreserve thenature, protect thecommunity andthose involved in the
Company’s operations.

We are generating
development for communities,
well-being for society andpermanent environmental
preservation mechanisms.
Creating a better world than
before PT Vale establishment.
Putting the benefits intrinsic
to mining at the serviceof society as a whole.
In addition, we use theknowledge, human resources,
and technical, financial andcatalytic capacity that PT
Vale has developed over theyears to rebuild a virtuous
cycle of prosperity thatpoints to an inclusive andcomprehensive future, inwhich everyone benefits andPT Vale’s horizons expand tomeet the needs of a world inconstant transformation.

SAFETYThis is one of the key aspects to increase
and regain public trust. Ensuring safety oflife and operations is Vale’s priority.

VPS
A strong management model is essential toincrease the level of operational excellence. Having
standards is our way of becoming a unified with
Vale organization wherever we operate, as well as
contributing to building a more reliable company.

PEOPLE
Our Company is built by humanhands–they are the key elements toachieving the future we want.

INNOVATION
Investing in innovations and leaving the
comfort Zone are the main factors that makeour Company more competitive and profitable.

SUSTAINABILITY
Contributing to improving environmental
conditions, focusing on three dimensions:environmental, social, and governance. This is
our new mindset: investing with a purpose.

The progress and achievements of the implementation of Commitment 2023 until the end of2023 are presented in the description of sustainability performance in other sections of thisReport, as well as a full description of the Approach to Sustainability, accessible through theCompany’s website: https://vale.com/indonesia/annual-and-sustainability-reports. [2-23]

28

Sustainability Report 2023

Environmental Management Sustainability Performance

Environmental
Management
Sustainability
Performance

PT Vale is committed to managing and protecting theenvironment by implementing an Environmental Management
System in accordance with ISO 14001:2015 standards, as wellas the Principles of Sustainable Mining Management basedon the International Council on Mining and Metals (ICMM)
Sustainable Development Framework. Environmental policies
on energy efficiency, emission reduction, waste management,water efficiency, pollution reduction, and biodiversity
conservation further support the Company’s commitment.
EMS implementation ensures consistency in environmental
management through resource allocation, responsibility
assignment, and ongoing evaluation integrated with theCompany’s business processes. Additionally, the commitment
to environmental management is supported by policies to
consult stakeholders, including public consultations for the
preparation of AMDAL documents, Environmental Monitoring
Plans (RPL), and Environmental Management Plans (RKL)
related to the implementation of several IGP projects. [2-25]
We continually enhance environmental regulatory complianceby implementing the Regulation Compliance System application
and address environmental improvements through theimplementation of PRO-027476-Preliminary Risk Analysis andAspects Assessment and SP10 Change Management. These
efforts are integral to the Company’s strategy to mitigate
the impacts of mining operations on the environment inaccordance with the stages of activities conducted in each
operational area, namely the Sorowako, and Bahodopi blocks.
Operational activities include various stages such as land
clearing, ore excavation, transportation, stockpiling, screening,
and land rehabilitation. The environmental impacts of these
operations include risks such as Greenhouse Gas (GHG)
emissions, waste disposal, and energy consumption which candisrupt ecosystem balance and environmental sustainability.
We routinely monitor and measure our environmental
management performance and communicate any constraints
or challenges in environmental management to find thebest solutions. PT Vale has mechanisms to transparently
address and communicate any environmental management
issues and report environmental management performancethrough ESG-related publications on the Company’s website,
as well as periodic reporting to relevant authorities.

29

Sustainability Report 2023

Environmental Management Sustainability Performance

Sustainable Mine Management Principles Based on
the ICMM Sustainable Development Framework
Adopt ethical businesspractices, good
corporate governance,
and transparency tosupport sustainable
development.

Respect the human rights,
cultures, customs, andvalues of employees andcommunities affected by
our activities.

Integrate sustainable
development incorporate strategy
and decision-making
processes.

Pursue continual
improvement in health andsafety performance withthe ultimate goal of zero
harm.

Implement effective risk
management strategies
and systems based on
sound science and taking
into account stakeholders’risk perceptions.

Contribute tobiodiversity conservationand integrated
approaches to land-use
planning.

Pursue continual
improvement inenvironmental performance,
including water stewardship,
energy use, and climatechange.

Pursue continual improvement
in social performance andcontribute to the social,economic, and institutional
development of host countries
and communities.

Facilitate and support theknowledge base and systems
for responsible design, use,reuse, recycle, and disposal of
products containing metals
and minerals.

Proactively engage
key stakeholders insustainable development
challenges andopportunities in an open
and transparent manner.


Five Environmental Commitments 2023
Low carbon
agendaReducing water
consumption
intensity

Reducing pressure on
landfills

30

Sustainability Report 2023

Biodiversity
conservation

Transboundary
forestation

Through the application of principles within the ICMM Sustainable
Development Framework, PT Vale oversees and ensures that the mineralproduct (nickel), which is ‘primary nickel’ from nickel ore, has undergone
responsible production processes. These principles are integrated into
the Company’s strategy and investment decision-making processes, aswell as in the design, operation, and closure of facilities. By prioritizing
sustainability in every business process, we not only meet the demand forsustainable nickel but also contribute to global economic decarbonizationand the achievement of the Sustainable Development Goals (SDGs). As forthe active environmental management plan, PT Vale has implemented Life
Cycle Assessment (LCA). The policy for areas with protected conservation
status is contained in the Environmental Management Plan (RKL) and
Environmental Monitoring Plan (RPL) reported to the authorities. This
policy is also in line with the International Finance Corporation (IFC)and International Organization of Standardization (ISO) performancestandards. [EM-MM-160a.1]

Environmental Management Sustainability Performance

Materials Usedand Material
Stewardship

The material used as raw material
for nickel in matte production
is nickel ore, classified as a nonrenewable material obtained frommining activities in Sorowako, witha 70,728 MT total volume utilized in
2023. There are no materials sourced
from recycling. PT Vale generates
no tailings, but nickel slag which iscategorized as non-B3 waste. The
transportation process of nickel inmatte utilizes special packaging,and the buyer collects all packaging
back. [EM-MM-540a.1][EM-MM-540a.2][EM-MM-540a.3]][301-1][301-2][301-3]

To ensure the continuity of operations
and business, the Company conducts
material stewardship throughexploration activities to discover new
mineral resources. In 2023, PT Vale
allocated a capital expenditure of
US$9,719,725 for exploration activities.
As of December 31, 2023, the Company
had a total Saprolite Ore Reserveof 156.4 million tons, consisting ofProven Reserves of 87.2 million tons
and Probable Reserves of 69.2 million
tons. This amount increased by 35%
from 2022 with a total Saprolite
Ore Reserve of 111.6 million tons,
consisting of Proven Reserves of
65.8 million tons and EstimatedReserves of 45.7 million tons.

31

Sustainability Report 2023

Environmental Management Sustainability Performance

Nickel in Matte Production Performance and Nickel Ore Volume
Description

Unit

2023

2022

2021

Nickel in Matte ProductionTon

70,72860,09065,388

Nickel Ore Volume
Limonite
Proven Ore Reserves
Probable Ore Reserves

Million Tons
(DKP)

81.1

N/A

N/A

132.2

N/A

N/A

122.3

62.0

65.7

99.0

46.9

42.1

Saprolite
Proven Ore Reserves
Probable Ore Reserves

Million Tons
(DKP)

*Reserves include Sorowako Operations, Bahodopi Block 2-3, and Pomalaa

32

Sustainability Report 2023

As of 31 December 2023, the Company
has total mineral reserves of 437.7
million dry tons, consisting of:• Mineral reserves in limonite of 213.3
million dry tons which are newreserves from the Pomalaa project.
• Mineral reserves in saprolite of 221.3
million dry tons, an increase of 103.2%
from 2022 of 108.9 million tons. The
additional reserves come from newreserves in the Bahodopi 2-3 Blockproject and the Pomalaa project.

Environmental Management Sustainability Performance

Low Carbon
AgendaPT Vale is committed to maintaining nickel mining
operations with low carbon intensity, aiming for Net Zero
Emissions (NZE) by 2050, with a medium-term target of
reducing absolute carbon emissions by 33% by 2030.

PT Vale’s Global Contribution
We believe that energy transition is key to successfully
mitigating climate change and preventing a temperature
increase of 2°C as per the Paris Agreement. Nickel, a
product of PT Vale, will play a crucial role in the energy
transition by contributing to the construction ofrenewable infrastructure and supporting electrification
through electric vehicles. The increasing demand fornickel commodities is expected to positively impact theCompany’s financial performance in the coming years.

Reducing Emissions Together
Climate change risk management is one of PT Vale‘ssustainability focuses, aligning with the Paris Agreement.
As further detailed in Presidential Regulation No. 98 of
2021. The Company contributes to ensuring that global
temperature rises remain below 2°C. To achieve this, PT
Vale has established a Roadmap to Net Zero Carbon by
2050. The Company‘s strategic focus revolves aroundenergy efficiency solutions and energy transition,
maximizing the use of renewable energy sources andconserve energy. The mid-term target for 2030 is a 33%
absolute reduction in emissions for Scopes 1 and 2, withthe long-term goal of achieving carbon neutrality (NZE)
by 2050. PT Vale‘s efforts are in line with the Indonesian
government‘s commitment to reducing greenhousegas emissions in the updated Nationally Determined
Contribution (NDC), unconditionally to 29% andconditionally (with international support) to 41% compared
to business-as-usual (BAU) scenarios, amounting to 834 MT
CO2eq and 1,185 MT CO2eq, respectively, by 2030.
[EM-MM-110a.2]

33

Sustainability Report 2023

Environmental Management Sustainability Performance

PT Vale’s Road Towards Carbon Neutrality

2019
Quick Win• Electric Boiler(1st stage)• Using Biodiesel(B20)

2022-2023

2026-2028

Advanced Project

Implementation• FEL 1 Waste Heat Recovery• FEL Conversion offuel oil & coal to LNG
in Reduction Kiln
• Trial 1ea Electric Truck• Trial up to 50%
Biomass as reductant
in Reduction Kiln
• Bus Bas by-pass
implementation• Using Biodiesel (B35)• Implement 30% biomass
as reductant• Build biochar manufacture• Build Waste Heat
Recovery system• Electric Air Pre-Heater
implementation• Electric Light Vehicle
implementation• Solar PV implementation

Sustainability Report 2023

Net Zero
GHG
Emissions2020

2024-2025

2030

Development
Project (Stage I)

Advanced Project

Absolute reductionof GHG emission• Optimized Clean
Energy (HydroelectricPower Station)• Modular Screening
Station (reduce
mileage)• Using Biodiesel (B30)

34

2050

• Trial 1ea Electric Bus• Trial up to 30% Biomass as
combustion in Coal Mill
• Long Trial 10-20% Biomass
as reductant• FEL 1&2 Manufacturing Biochar
Larona Penstock Reinforcement
Implementation• FEL 1&2 Hydrogen conversion into fuel• FEL 2&3 Solar PV Balantang
and Mangkasa• FEL 2&3 Electric Air preHeater for Product Drying• FEL 2&3 Waste Heat Recovery
Electric Boiler (2nd stage)• - Conceptual Study of
Improvement Wet Ore Storage• - Using Biodiesel (B40)

33%
Development Project(Stage II)• Opportunity about Hydrogen
conversion into fuel
• Waste Heat Recovery
Implementation• Implement 50% biomass as
reductant• Biochar manufacturing
implementation• Reforestation

Environmental Management Sustainability Performance

GHG Emissions Calculation and Reduction[POJK51-F.11] [POJK51-F.12]

GHG emissions are calculated at Sorowako operations, covering scope 1 emissions fromproduction activities and fuel consumption, as well as scope 2 emissions from electricity
usage. PT Vale has not yet calculated scope 3 emissions, however we have plans to do so in
the near future. The calculation results are expressed as total GHG emissions in metric tonsof CO₂eq, including the conversion of non-CO₂ GHG emissions (CH₄, N₂O, and HFC). Biogenic
CO₂ emissions are not included in the calculation. The calculation is based on the energy
consumption balance method from fossil fuels and greenhouse gas-causing gases with abaseline year of 2017, a Global Warming Potential (GWP) index of 1, and the guidelines of
the Intergovernmental Panel on Climate Change (IPCC) with GWP index referring to theassessment of the fifth report in 2014 (AR-5). [305-1][305-2][305-3]

29%

Fuel Efficiency
Stockpile RedesignReduce Moisture

Fuel Shift
Fuel/Coal conversion to
LNG, Biomass, Biofuel

WET ORESTOCKPILEDRYER
KILN (3)DRIED ORE
STORAGE58%

GHG emissions in 2023 are 2,032,313 ton CO₂eq. This value has increased from the 2017baseline, in line with the 17.7% increase in nickel in matte production volume. However,based on emission intensity, we experienced a decrease in 2023 by 1.3% compared to 2022.
Going forward, the Company continues to seek breakthroughs to meet its commitment to
reduce scope one and two absolute greenhouse gas (GHG) emissions by 33% by 2030, andtowards NZE by 2050.

Waste Heat
Utilization
Furnaces Off
Gas, Slag Heat
Recovery Calcine

REDUCTION
KILN
(5)

1%

Furnace Matte

ELECTRIC
FURNACE(4)

FurnaceSlag

GHG Emissions Calculation Compared to 2017 Baseline
2023

2022

2021

2017
Baseline

Total GHG Emissions Tons of CO2eq

2,032,313

1,748,552*

1,971,075

2,013,950• Scope 1

2,029,486

1,745,817

1,968,544

2,010,963

2%

2,987

Product Dryer - Fuel Shift
Fuel to LNG, Biofuel

Description• Scope 2

Unit

Tons of CO2eq
Tons of CO2eq

2,827

2,735

2,530

*Restatement of 2022 Data: Addition of AFOLU/New Open Area

The low intensity of GHG emissions by PT Vale is supported by three hydropower plants,
capable of avoiding additional scope 1 carbon emissions equivalent to 1,118,231 tons of CO2eq
per year if calculated based on the volume of diesel fuel usage for diesel power plants;
and equivalent to 2,292,375 tons of CO2eq per year using coal for steam power plants. We
continue to develop opportunities to reduce GHG emissions from production processes witha potential of 1,800 kilotons of CO2eq, or 90% of total GHG emissions. Other opportunities
arise from mining areas with a potential GHG emissions reduction of 200 kilotons of CO2eq.

[305-5]35

Sustainability Report 2023

Converter
Slag

CONVERTER(3)

Nickel inmatte

SHIPMENT

Fuel Shift
Fuel/Coal conversion to
LNG, Biomass, Biofuel

Environmental Management Sustainability Performance

Opportunities in Operational Areas
Form of Opportunity

200 kt CO2eq

Automation(10% of Total GHG Emission)

Efficiency
Development

200,000
150,000

Fuel Diversion
50,000

Energy• Automation• Modular Screening

36

Biodiesel

Until March 2023, PT Vale utilized B30 fuel. Starting from April 2023, theCompany shifted to B35 fuel.

Renewable
Generation

In 2023, biomass usage amounted to 2,234 tons from palm shell andwood charcoal. During this trial phase, PT Vale combined coal withbiomass as a reducer in the Reduction Furnace unit and as fuel in the Coal
Mill unit. The use of biomass as a substitute for coal has the potential toreduce GHG emissions by 311,000 tons of CO2eq per year.

Unclassified

Efficiency
Improvement

Biodiesel

Electrification

Renewable
Generation

Baterai Electric
VehicleSustainability Report 2023

The Company launched an electric bus on December 14, 2023, in the
Sorowako Block. This electric bus, with a capacity of 48 passengers, willserve employee transportation. The bus operates on a battery witha capacity of 315 kWh, equivalent to a range of 250 kilometers. The
operation of one electric bus has the potential to prevent GHG emissions
by 48.11 tons of CO2eq per year, based on calculations equivalent to theuse of oil fuel in conventional buses.

Fuel
Switching

EnergyPT Vale implements efficiency measures using a model-based controller
to maintain gas temperature stability in the Reduction Kiln. This
controller automatically adjusts the addition and/or reduction ofMarine Fuel Oil (MFO) based on the actual gas temperature comparedto the operational target. Operators only need to set the desired gas
temperature, and the system efficiently regulates the rate of MFO
addition and/or reduction.

Two Modular Screening Station (MSS) units, namely MSS 12 and MSS 13,
Modular Screening are currently undergoing trials before regular operation. The potential
Stationreduction in Greenhouse Gas emissions from regular operation isestimated at 5,000 tons of CO2eq per year.

MobileEquipment

100,000

Realization in 2023

Electrification

Battery-based
Electric Vehicles

Environmental Management Sustainability Performance

GHG Emission Intensity[POJK51-F.11]

The GHG emission intensity calculates the equivalent carbon emissions(CO2eq), including CH4, N2O, HFCs, and others, based on the total GHG
emissions of scopes 1 and 2 for every ton of nickel in matte produced.
The result is expressed in tons of CO2eq per ton of Ni, using calculation
methods based on IPCC guidelines. The GHG emission intensity value in
2023 is 2,032,313 tons of CO2eq per ton of Ni, with a decrease in intensityof 1.3% from the 2022 value of 29.1 tons of CO2eq per ton of Ni. [305-4]
GHG Emission Intensity Calculation Results [305-4]
Description

Total GHG
Emissions
Scope 1
Scope 2
Total Nickel
Production
GHG Emission
Intensity

Non-GHG (SO2 and Particulate)
Emission Control[EM-MM-120a.1]

SO2 emissions originate from sulfur usage in the sulfidation process during nickel ore
processing, as well as the use of High Sulphur Fuel Oil (HSFO) and coal. We manage SO2
emissions through monitoring and calculation to comply with the quality standards outlinedin Minister of Environment Regulation No. 4 of 2014 concerning Emission Quality Standards
for Non-Moving Sources in Mining Activities. Calculations employ a mass balance method,
determining emission intensity by comparing the weight of emitted SO2 with the weight of
the resulting products, expressed in tons of SO2 per ton of Ni. The results for 2023 show that
the SO2 Emission Intensity value remains below the quality standard threshold of 0.80 tons
SO2eq/Ton Ni. [305-7]

Unit

2023

2022

2021

Tons of CO2eq

2,032,313

1,748,552*

1,971,075

Tons of CO2eq
Tons of CO2eq

2,029,486
2,827

1,745,817
2,735

1,968,544
2,530

Ton

70,72860,09065,388Tons ofCO2eq/Tons

28.7

29.1*

30.1

SO2 Quality Standard

SO2 Emission Intensity Measurement and Calculation
Description

Unit

2023

2022

2021

Ton

70,72860,09065,388

Total SO2 Emissions

Ton SO2eq53,18843,37750,666

Emission Intensity

Ton SO2eq/
Ton Ni

0.75

0.72

0.77

0.80

0.80

0.80

Total Nickel Production*Restatement of 2022 Data: Addition of AFOLU/New Open Area

Emissions Containing OzoneDepleting Substances (ODS)
PT Vale does not utilize HCF-22 freon (CHF2Cl), opting instead forenvironmentally-friendly alternatives. The majority of our freons are R32
known which has ozone depletion potential (ODP) of 0. We consistently
factor freon usage into our greenhouse gas calculations. [305-6]

Particulate emissions control is conducted through monitoring and measurements
at the dryer kiln chimney, reduction kiln, electric furnace, and product dryer. The
measurement of particulate intensity is expressed in tons of Particulate/ton of Ni. The
results of the particulate concentrate measurement for the year 2023 indicate 0.007
tons of Particulate/ton Ni. [305-7]
In 2023, several breakthroughs were implemented as efforts to reduce particulate
emissions, including the implementation of Dust Net. The Dust Net is aimed at reducing
particulate emissions generated from the ore placement process in the Dry Ore Storage.
SO2 Emission Intensity Measurement and Calculation
Description
Total Nickel Production

Unit

2023

2022

2021

Ton

70,72860,09065,388

Total SO2 Emissions

Ton Particulate

600

681

1.613

Emission Intensity

Ton Particulate/Ton Ni

0.007

0.009

0.020

Description: Quality Standard Based on Permen LHK No.4.201437

Sustainability Report 2023

Environmental Management Sustainability Performance

Low-Emission Technologies
for New Plants
On February 10, 2023, the Company conducted the groundbreaking
for the Low Carbon Nickel Mining and Processing Project inMorowali Regency, Central Sulawesi. This project is developedby PT Vale and PT Bahodopi Nickel Smelting Indonesia (PT
BNSI). The mining site is located in the East Bungku of East
Bungku and Bahodopi, while the processing plant is situatedin Sambalagi Village, Bungku Pesisir Sub-district. The nickel
smelter construction in Morowali employs Rotary Kiln Electric
Furnace (RKEF) technology. Gradually, the energy needs forthe smelter will be supplied by liquefied natural gas (LNG).

Collaborative Energy
Management to Support a Low
Carbon Economy
About Vale Power Shift (VPS)
We implement Vale Global’s internal program, VPS, to support
future low-carbon economic transition policies. VPS aims
to improve the Company’s energy matrix by focusing on
renewable energy and alternative fuels, as well as efficiency
through new technology usage. The initiatives related to
VPS in 2023 contributed to a 1.8% reduction in energy usage
intensity compared to 2022. Efforts in 2023 included:

38

Sustainability Report 2023

• Substituting coal with biomass as a reducer inthe reduction furnace and as fuel in the coalmill, totaling 2,234 tons. This significantly
reduced non-renewable energy usage. PT Valealso contributed to waste reduction by utilizing
palm oil mill waste such as palm shells.
• The implementation of Electric Boilers in 2023
successfully reduced Marine Fuel Oil (MFO) andBiodiesel 35 consumption equivalent to 113,041
GJ. This success motivates the company toreplicate Electric Boilers in the near future.
• Gradually replacing diesel-fueled trucks, buses, andlight vehicles with electric vehicles, with one unit
each in 2023. 2023 marks the beginning of PT Vale’s
vehicle electrification program, demonstrating
the Company’s commitment to increasing
electricity usage, especially from its electricity
generation through its 3 hydropower plants.
• Supporting government policies to reduce
dependency on petroleum usage by utilizing
35% biodiesel as vehicle and plant fuel.
• PT Vale continues to innovate with newtechnologies, such as improving air pipe designin thermal & process plants to achieve an energy
efficiency of 75,578 GJ. Additionally, in 2023, wereduced the intensity of Package Boiler#2 heating
up while maintaining engineering calculations
to decrease energy usage by 7,681 GJ.

Energy Consumption andEfficiency [POJK51-F.6]
Energy consumption calculation encompasses
the volume of energy usage within the Company,
including heavy equipment operation in nickel ore
mining operations and nickel in matte production
processes. We have not calculated energy
consumption outside the Company. The energy
consumed is sourced from hydropower plantelectricity supply, which constitutes renewableenergy, as well as thermal power plants and theuse of fossil fuels, which are non-renewableenergy sources. The total energy consumption
calculation involves summing the volume ofenergy sources used, which is then converted
to Gigajoules (GJ) using the International Energy
Agency (IEA) conversion factor. [302-1][302-2]
Total energy consumption in 2023 amounted
to 30,974,878 GJ, representing a 14.9% increase
from 2022, which stood at 26,689,441 GJ.
Renewable energy usage from hydropower
plants accounted for 8,791,124 GJ or 28.4% of
the total energy usage, while energy usage from
B30 Biodiesel until March amounted to 500,552
GJ then starting April changed to Biodiesel B35
amounting to 1,741,583 GJ, from the total use of
biodiesel B30 and B35 amounted to 2,244,136 GJ
or 7.2% of the total energy requirements. The
remaining 19,939,619 GJ, or 64.4%, came from
non-renewable energy sources, with the largest
volume coming from Marine Fuel Oil (MFO) usage
totaling 10,295,322 GJ. [302-1][EM-MM-130a.1]

Environmental Management Sustainability Performance

Energy Consumption Volume in the Company (GJ)
Energy Source

Allotment

2023

2022

2021

Drying Kilns

4,477,155

3,221,576*

4,969,801

Reduction Kilns –Reductant

3,399,804

3,226,794

3,002,054

Reduction Kilns –Combustion

1,761,553

1,685,919*

1,973,050

Total Firing Kilns

9,638,512

8,134,288

9,944,905

Thermal Generators

9,269

2,506

23,182

Steam Boilers

7,740

6,804

14,268Description

Unit

PP Dryer Furnaces &Others335,981314,318

332,241

Total Nickel ProductionTon

70,72860,09065,388

Total Energy Used

GJ

30,974,879

26,956,105*

28,551,417

Reduction Kilns

40,55547,08734,943

Energy Intensity

GJ/Ton Ni

437.9

448.6

436.6

Refining – 78% Nickel

40,571

36,77539,450* Restatement due to data recalculation

Heavy Vehicles

1,593,558

1,409,259

1,676,109Light Vehicles, Trucks,
and Others

216,462

119,638*

171,030

Energy Consumption Reduction [POJK51-F.7]

Total

2,244,136

1,936,386

2,291,223

By comparing the volume of energy sources used, the company achieved a
reduction in energy consumption of 437.9 GJ compared to the 2017 baseline.
Energy usage in 2023 decreased from 448.6 GJ in 2022. This reduction was
influenced by the increase in nickel production. [302-4]

Non-Renewable Energy

CoalHigh Speed Diesel(HSD)

Steam Boilers
High Sulphur Fuel Oil Drying Kilns(HSFO)
Reduction Kilns
Total
Gasoline

Light Vehicles

Energy Intensity [POJK51-F.6]

24,928

11,811*

22,9841,600,666

1,980,456*

640,555

8,669,728

7,088,557*

7,424,388

10,295,322

9,080,824

8,087,927

5,784

6,625

3,616

Renewable Energy

Energy intensity is calculated as the total energy required from electricity
consumption and fuel usage to produce one ton of nickel in matte. The
calculation does not include energy usage outside the Company. The Energy
Intensity value for 2023 reached 437.9 GJ/ton Ni, lower than the 2022 figure of
448.6 GJ/ton Ni. [302-3]
Energy Intensity Measurement Results [302-3]
2023

8,791,124

7,797,981

8,223,746

150,766

580,916

687,367

HSFO

Barrel

1,654,992.7

1,467,780.5

B30 Biodiesel**

609,554

N/A

N/A

HSD

Liter

68,057,320.0 58,597,015.3

Non-Renewable + Renewable Energies

30,974,879

26,956,105

28,551,417

Coal

Ton

347,362.00

B30 Biodiesel**

Processing Plant*Restatement due to data recalculation**Biodiesel Usage Data for B30 through March 2023 and B35 April - December 2023. Biodiesel B30 and
B35 data is part of high speed diesel (HSD) data

Sustainability Report 2023

2022

2021

Energy Consumption by Source in 2023
and Comparison with 2022 [302-4]
EnergySourceHydropower Plant

39

PT Vale has a hydropower plant in the Sorowako area and has distributed
electricity from hydropower of 10.7 MW or the equivalent of 337,435 GJ to thepeople in East Luwu, through PT PLN (Persero) in 2023. [POJK51-F.5][302-1]

Unit

2023

2022

2021

292,341.0

2023:2022
Volume%1,291,026.7

187,212.1

12.8%

69,482,973.6

9,460,304.7

16.1%

374,918.1

55,021.0

18.8%

Environmental Management Sustainability PerformanceThis report does not include the calculation ofenergy reduction/efficiency from products/
services sold in 2023, nickel in matte is shipped
out using vessels provided by the buyers.
Therefore, PT Vale bears no responsibility forenergy calculation based on fuel consumption
volume conversion. [302-5]

Contribution to New and Renewable(NRE) Energy Development [POJK51-F.7]
PT Vale supports the EBT transition by
developing NRE based on nickel products. The
utilization of renewable energy for electricity
and biodiesel is 30.84%(energy mixed).
To support the construction phase of the
HPAL plant in Pomalaa, on June 7, 2023, PT Valeand PT PLN (Persero) signed a Memorandumof Understanding for a Power Purchase
Agreement (PPA) of 1000 kVA or 1 Megawatt(MW). According to this agreement, theelectricity supplied to PT Vale‘s needs in the
Pomalaa Block is sourced from renewableenergy. The electricity supply originatesfrom the Kolaka Main Substation, which
receives electricity from the Sabilambo Micro
Hydropower Plant with a 2 MW capacity.

40

Sustainability Report 2023

Environmental Management Sustainability Performance

Implementing Mine Land
Reclamation and Biodiversity
Conservation Together

PT Vale is committed to implementing
reclamation as part of the Mine Closure
Plan in accordance with Government
Regulation No. 78 of 2010 concerning
Reclamation and Post-Mining. The
Company adheres to a policy ofmaintaining the total area of openpit, with biodiversity management.

[POJK51-F.10]

We conduct open-pit mining activities
that have an impact on altering thenatural landscape, thus affecting
the ecosystem and biodiversity
within it. The Company is committed
to managing negative impacts byundertaking biodiversity conservation,
progressive reclamation, and postmining rehabilitation in accordance withapplicable regulations and provisions.
This activity also has a positive impact,
such as planting plants that can be used,
including in the reclamation program.
In addition, planting tree species
can also provide food for wildlife.
We are committed to restoring
the land to its original condition
through the following stages:• Mining planning.
• Progressive reclamation
and rehabilitation.
• Reporting and evaluation.

41

Sustainability Report 2023

Photo by Paulus Tandi Bone• Mine closure plan.

Environmental Management Sustainability Performance

Environmental Costs[POJK51-F.4] [MM10][304-3]

We have a Mine Closure Plan document that has been updated
in 2022 and communicated to all stakeholders. The Mine Closure
Plan covers the entire (100%) operational area of the mine inSorowako. PT Vale also includes guarantees for mine closure. The
commitment to land reclamation and rehabilitation is supported by
the allocation of financial provisions included in the environmental
cost component in the Company’s Financial Statements. The
actual environmental management costs in 2023 amounted to
US$67,340,642 for the Sorowako, Pomalaa, and Bahodopi areas,
representing an increase from US$20,142,498 in 2022.
Year

Environmental Management Costs (US$)

2023

67,340,642

2022

20,142,498

2021

21,349,994

2023 data covers Bahodopi area

Watershed Land Rehabilitation Outside the CoW [EM-MM-160a.2]
Reclamation of former mining lands aims to restore ecosystem balance and conserve and protect protected
and endemic flora and fauna. PT Vale is committed to limit the open land area for mining operations
and managing biodiversity in mining operation areas in accordance with Approval Letter No.188.4/66/
II/BAPEDALDA. We also engage in land rehabilitation and reforestation beyond mining operation areas,
particularly in critical lands and watersheds as mandated by Ministry of Environment and Forestry Regulation
No. 59 of 2019 regarding Planting for Watershed Rehabilitation. Specifically, watershed rehabilitation isconducted in 13 regencies in South Sulawesi Province and 3 regencies in West Java Province.
Locations and Total Area of B#1 Watersheds Rehabilitated by PT ValeSouth Sulawesi
Regency

Watershed

Area (Ha)East Luwu

Labongko, Kalaena, and Pongkeru Watersheds

North Luwu

Rongkong Watershed

895

Luwu

Tomboe, Keppe, Larompong, and Lamasi Watersheds

1,101

Tana Toraja

Saddang Watershed

1,190

North Toraja

Saddang and Paremang Watersheds

329

Enrekang

Saddang Watershed

200

Pinrang

Saddang Watershed

450

Soppeng

Bila Walanae Watershed

400

Bone

Bila Walanae and Matuju Watersheds

1,735

Barru

Lisu Watershed

250

Maros

Bila Walanae Watershed

1,000

Gowa 1

Jeneberang Watershed

100

Gowa 2Jeneberang, Kelara, and Tangka Watersheds

735

Takalar

Pamukkulu Watershed

125

Total

1,490

10,000Locations and Total Area of B#2 Watersheds Rehabilitated by PT ValeWest Java
Regency
Sumedang

Sustainability Report 2023

Area (Ha)191

Pangandaran

Cikembulang and Cikeuleuweung Watersheds

35

Tasikmalaya

Cisaringi, Cipatujah II, Cikamunding, Cipanyerang, Cipalireman, Cilanglah, Cilanglah II,
Ciwulang, Cimedang, Cipacor, Cipadabumi, and Cipadabumi II Watersheds

209

Total

42

Watershed
Cipunagara Watershed

435

Environmental Management Sustainability Performance

In 2023, the rehabilitation conducted by PT Vale entered thesecond-year planting and maintenance phase (P2). To ensure thesuccess of the program, the Company, together with stakeholders,
conducted Gemba or field visits to Lappa Laona Village, one of
the watershed rehabilitation sites in Barru Regency. During theGemba activities, stakeholders provided suggestions for improving
the implementation of second-year planting and maintenance,adjusting technical designs according to site conditions, andreplacing seedling types. We are committed to enhancing the
success of watershed rehabilitation before handing over thegreen land to the Government. The success criteria for watershedrehabilitation are agroforestry with the number of stands
reaching 400 trees per hectare, intensive with the number ofstands reaching 625 to 1,100 trees per hectare, and the level ofgrowing plants and healthy plants is more than 75 percent of thenumber of initial plants.
The watershed rehabilitation program in West Java Province
conducted by PT Vale will continue until 2025. As of the endof 2023, the planting realization covered an area of 435 Ha,
including regions in West Java Province, comprising 191 Ha in
Sumedang Regency, 209 Ha in Tasikmalaya Regency, and 35 Ha in
Pangandaran Regency.
In addition to the planting realization by the end of 2023, there
was also the implementation of second-year plant maintenance(P2) covering an area of 10,000 ha, spanning across 13 regencies inSouth Sulawesi Province. The watershed rehabilitation activities
aim to restore, maintain, and enhance watershed functions,
including environmental conservation, by planting various typesof timber and non-timber forest products (NTFPs) according tosite suitability. Furthermore, watershed rehabilitation activities
can improve the welfare of communities living around the forest
by promoting sustainable forest management practices.
The mining operations area of PT Vale is privately owned under aContract of Work with the Government of Indonesia, which wasamended in 2014. Some parts of the operational area are locatedwithin protection forest areas. We have obtained Borrow-toUse Forest Permits (IPPKH) from the Ministry of Environment
and Forestry regarding the use of protection forest areas. In
addition, the area of operation is not in an active conflict area.
[304-1][EM-MM-210a.1][EM-MM-160a.3]

43

Sustainability Report 2023

IPPKH, Total Areas, and Percentages of Protected Areas[304-1][EM-MM-210a.1][EM-MM-160a.3]

Block

Sorowako

Bahodopi
Pomalaa

IPPKH Number

Protected
Area (Ha)SK No.645/MenLHK/SetJen/PLA.0/12/2018

8,199

SK No.866/MenLHK/SetJen/PLA.o/10/2021

3,730

SK No.850/MenLHK/SetJen/PLA.0/10/2021

17,239Percentage

ProvenReserves(Ha)

Estimated
Reserves
(Ha)

41%

1,986

1,462

68%

0

0

SK No.341/MenLHK/SetJen/PLA.0/5/2019

2,143

SK No.5/MenLHK/SetJen/PLA.0/1/2022

13,362

SK No.238/1/KLHK/2021

11,439

46%

440

1,011

56,108

48%

2,426

2,473

Total

During the reporting period, the Company conducted asocialization event regarding the status and jurisdictionof forest areas within the IPPKH in the Pomalaa Block,
Kolaka Regency. The objective of this activity was toenhance and broaden the understanding and awarenessof the importance of understanding forest areas andrelated actions. The event was attended by community
leaders, village heads, and representatives from the
districts in the four empowerment zones of PT Valein the Pomalaa group. This activity implementation

represents a further step following the completionof the permitting process for PT Vale’s IPPKH in theextraction area in Pomalaa, as per the designation of
the operational area through Decree Number SK. 1565/
MENLHK-PKTL/REN/PLA.2/2/2022 dated February
25, 2022, covering an area of 11,432.57 hectares,
consisting of Protection Forest (HL), Limited Production
Forest (HPT), Permanent Production Forest (HP),
Convertible Production Forest, and the Free Community
Empowerment Zone of Forest Areas (PBPH).

Environmental Management Sustainability Performance

Protecting
Biodiversity[POJK51-F.10]

PT Vale operates open-pit mining activities, which canlead to changes in the natural landscape, ecosystems, andbiodiversity within the area. To mitigate these impacts,
we implemented a policy to limit the area opened formining activities each year. The actual area opened formining operations during the reporting period reached230.16 Ha, bringing the cumulative area for mining
operations by the end of 2023 to 5,667.73 Ha. [304-2]

Area of Disturbed and Rehabilitated Land (Ha) [304-3]
Total Unrehabilitated
Disturbed Area at the
Beginning of the Year

Total Disturbed Area
in the Current Year

Total Rehabilitated
Area in the Current
Year

Total Unrehabilitated
Disturbed Area at theEnd of the Year

1

2

3

1+2-3

2023

1,958.4

230.2

224.4

1,964.22022

2,054.1

199.8

295.4

1,958.42021

2,076.7

261.1

283.7

2,054.1

Year

The implementation of post-mining rehabilitation
involves local communities who have received training,
non-governmental organizations (NGOs), government
agencies, and other third parties. Periodically, the Ministryof Energy and Mineral Resources conducts monitoring andevaluation of success so that it is feasible to hand over tothe Government. Success criteria include land stewardshipstandards, revegetation, and final completion, in accordancewith Permen of ESDM No.26 of 2018 and Kepmen ESDM
No.1827K/30/MEM/2018 concerning Guidelines for the
Implementation of Good Mining Engineering Rules. [304-3]

44

Sustainability Report 2023

We manage species affected by mining activities
through identification and relocation to otherlocations, including post-mining rehabilitation
areas. In 2023, the reclaimed mining land reached224.4 Ha, achieving 86.3% of the targeted 260 Ha.
We aim to complete the reclamation andrehabilitation of land totaling over 10,000 hectaresby the year 2024. Gradually, the rehabilitatedland will be handed over to the Government forreforestation purposes. [304-2][304-3][MM1]PT Vale is committed to conserving protected andendangered species of fauna and flora. A joint study
conducted with Hasanuddin University in 2020
identified 43 protected species listed on the IUCN Red
List within the mining operation area of Sorowako
Block. The list of these species can be found in the
Appendix. Until the end of 2023, these species are stillfound in the Sorowako Block. [304-4][MM2]As part of PT Vale’s commitment to biodiversity
conservation, the Company has established theSawerigading Wallacea Biodiversity (Kehati) Park,
serving as a conservation area for flora and fauna, an
educational hub for biodiversity, a recreational space,and a jogging track. The park was inaugurated on March
30, 2023, by President Joko Widodo.
In addition to providing a new habitat for plant species,
the Sawerigading Wallacea Biodiversity Park is home to
30 deer and serves as a breeding ground for endemic
butterflies. The facilities of the Sawerigading Wallacea
Biodiversity Park cover an area of 15 Ha and are
integrated with a nursery center.

Environmental Management Sustainability Performance

Reducing Landfill
Loads Together
We are committed to comprehensive and sustainable
environmental management. Following the framework of
the International Council on Mining and Metals (ICMM), theCompany focuses on reducing landfill burden as part of its
environmental management efforts.
PT Vale is committed to achieving zero waste to landfill
by 2025, five years ahead of the government’s target. This
goal will be achieved by optimizing waste management
practices across mining operations, production processes,
and support activities. Solid waste generation includes both
hazardous (B3) and non-hazardous waste. Prior to disposal,
waste management involves efforts to reduce, reuse, recycle,
and recover materials (4R principles). The hazardous waste
management is handed over to a third party that already has
a KLHK license. As for medical waste, incineration is carriedout using a generator and the ashes are handed over to athird party. Waste-related data collection is reported in
Simple and SiRaja. During the reporting period, no hazardous
waste was sent internationally and there were no spillsof waste materials that endangered the environment. In
addition, PT Vale uses Reduction Kiln Electric Furnice (RKEF)
so that it does not generate tailings. [POJK51-F.13][POJK51-F.14][POJK51-F.15][306-3][306-4][306-5][EM-MM-150a.9][EM-MM-150a.10][EM-MM-150a.4][EM-MM-150a.5][MM3]45

Sustainability Report 2023

To achieve the zero waste to landfill target, PT Vale implemented
several supporting activities during 2023:
PT Vale signed a
Memorandum ofUnderstanding (MoU)
with the East Luwu
Regency Government
to Stop the Use of
Plastic Bags. Throughthis agreement, PT
Vale encourages its
employees, their families,
and contractor workers
to reduce and eliminate
the use of plastic bags.
PT Vale utilized organic
waste as feed formaggots and organic
compost, reducing
organic waste by 57.8
tons. The resulting
compost is reused by PT
Vale as a planting medium
for seedling developmentin the nursery.

PT Vale applied theprinciples of a circular
economy by donating
recyclable waste to theEast Luwu waste bank.
Additionally, PT Valeempowered communities
by providing guidanceon waste bankmanagement. Currently,
there are 16 wastebanks distributed acrossthe Nuha and Towuti
sub-districts, reducing
waste to landfills by
18.4 tons per year.

PT Vale actively
participated in raisingawareness about theimportance of waste
management throughevents such as National
Waste Care Day, Lake
Clean Up Day, Healthy
Alley Contest, Waste
Bank Creativity Contest,
and knowledgesharing sessions withthe community.

Environmental Management Sustainability Performance

Types of Hazardous
Solid Waste and Their
Management

Types of Hazardous Solid Waste and Their Management [306-1][306-2][EM-MM-150.a.6]
ActivityType of Waste

Management Method

Used oil and grease.

Utilized as fuel substitution. The amountof used oil that is reused comparedto the total used oil waste is 100%.

• Used lubricants and grease• Used batteries• Heavy metal contaminated waste• Asbestos waste• Healthcare waste (incinerator ash)
• Waste contaminated withlubricants and waste• Special waste

Dispatched to a third party.

Medical waste.

Internally processed in a licensed
incinerator (RS INCO). The
incinerator ash is subsequently
dispatched to a third party.

[306-1][306-2][EM-MM-150.a.6]

Production

Types of Hazardous Solid Waste and Their Management [POJK51-F.13][306-1][306-2][MM3][EM-MM-150.a.6]
Type of Waste

Unit

2023

2022

2021

Production Activity
Used oil and grease

1.094,5

1.079,7

1.102,0Used batteries and batteries

56,2

53,6

54,6

Waste containing heavy metals

488,4

356,8

2,5

5,8

3,8

3,5

3,6

4,1

4,3

Waste contaminated with oil and grase

295,9

292,1

360,1

Special waste

62,5

45,4

47,4

Medical waste

34,1

29,8

29,8

2.041,01.865,3

1.604,2Asbestos waste
Healthcare waste (incinerator ash)

Total

46

Sustainability Report 2023

Ton

Environmental Management Sustainability Performance

Types of NonHazardous Solid Waste
and Their Management[306-1][306-2][EM-MM-150.a.6]

Types of Non-Hazardous Solid Waste and Their Management [306-1][306-2][EM-MM-150.a.6]
ActivityType of Waste

Management• Topsoil• Overburden

Reuse of rock waste used for mining road pavement
reached 31,336 tons. Top soil and overburden are used
for landfill material in areas of former mining operations,land rehabilitation and post-mining rehabilitation.

Production
Activities• Furnace Slag
• Converter Slag

Nickel slag is used as a construction material for the
top layer of special mining road surface layers, able
to reduce nickel slag generation by 4,406,877 tons.
This utilization has been approved by the government
based on the Hazardous Waste Utilization Permit
from the Ministry of Environment and Forestry with
Permit Number SK 121/Menlhk/Setjen/PLB.3/2/2018.

Supporting
Activities• Non-industrial domestic
waste generated• Industrial domestic
waste generated• Metal waste generated

Reused and recycled, either internallyor by third-party entities.

Mining
Activities

Types and Volumes of Non-Hazardous Solid Waste and Their Management[POJK51-F.13][306-1][306-2][EM-MM-150.a.6]

Type of Waste

Unit

2023

2022

2021

1,239,215

1,506,693

1,447,074

33,134,388

30,103,483

36,438,882

4,131,817

3,533,347

3,739,088

Mining Activities
Topsoil
Overburden

WMT

Production Activities
Furnace Slag
Converter Slag

Ton

Total

409,568

377,804

417,906

4,541,385

3,911,151

4,156,994

Supporting Activities

47

Sustainability Report 2023

Non-industrial domestic waste generated

Ton

875

670

1,001

Non-industrial domestic waste segregated

%

15.1

15.2

10.2

Industrial domestic waste generated

Ton

6,378

6,295

3,492

Scrap metal waste generated

Ton

5,786

7,497

5,229

Environmental Management Sustainability Performance

Reducing Water
Consumption Intensity
Together[POJK51-F.8]

Aligned with mining practices in accordance with the International Council
on Mining and Metals (ICMM) Sustainable Development Framework,
PT Vale is committed to reducing water consumption intensity. This
commitment is realized through the implementation of the Water
Efficiency and Wastewater Pollution Load Reduction Policy. The policy canbe viewed at https://vale.com/our-policy.

Water Consumption
Intensity Reduction

thus maintaining their usability by the

The largest water requirement is for theParks, based on Minister of Agriculture

operation of the Larona Hydropower Plant

community. Commitment to preserving

Water Consumption Intensity Value [303-5][EM-MM-140a,1]

these lakes also supports their status as

Description

Unit

2023

2022

2021

Conservation Areas of Nature Tourism

Nickel in Matte Production VolumeTon

70,72860,09065,388m3

7,561,108

8,519,762

8,681,643

Decree No.274/Kpts/Um/4/1979 dated

Water Consumption Volume

on the Larona River, with water sources

April 24, 1979. [303-1][303-2][EM-MM-210b.1]

Megaliter

7,561.1

8,519.8

8,681.6

from Lakes Matano, Mahalona, andTotal annual water usage during 2023

m3/Ton Ni

106.9

141.8

132.8

Towuti. Water from the lakes is directed

reached 7,561,108 m3 which is equivalent

to reservoirs at dams and then channeledto 7,561.1 Megaliters, a decrease of 11%

Megaliter/
Ton Ni

0.107

0.142

0.133

to turbines. The amount of waterfrom 2022 which reached 8,519,762 m3

consumed equals the water taken fromwhich is equivalent to 8,519.8 Megaliters.

Through the Water Efficiency and Reduction of Wastewater Pollution Policy, PT Valethe lakes, and no water is withdrawn fromThe Water Consumption Intensity value

continues its efforts to efficiently utilize water resources. We are committed to achieving aareas of water stress [303-3]

in 2023 was 106.9 m3/ton Ni (0.1069

1% annual efficiency improvement in water usage across our plant areas, mining operations,

Lakes Matano, Mahalona, and Towuti

Megaliters/ton Ni), lower than 2022‘s

office spaces, and other supporting facilities. Our initiatives include:

141.77 m3/ton Ni, or 0.14 Megaliters/ton• Monitoring water consumption by installing flow meters on water
distribution lines from reservoirs to factory areas.

also serve as local residents‘ sources fordomestic needs, livelihoods such as fishingand farming, and transportation activities.
PT Vale regulates the volume and flowof water for hydropower plant purposes
to ensure the lakes‘ preservation,48

Sustainability Report 2023

Ni. We report the Water Consumption
Intensity value to relevant authorities andthe public through our website at https://vale.com/our-policy.
[303-5][EM-MM-140a.1]

Water Consumption Intensity• Implementing water recycling in Lamella Gravity Settlers to produce
a ferrous sulphate solution of 2,000 cubic meters.
• Utilizing recycled water from production processes forslag cooling, totaling 385,000 cubic meters.
• Implementing the SWAP (Steam, Water, Air, and Power) online monitoring
system to monitor water consumption and promptly identify pipeleakage locations on the water distribution network.

Environmental Management Sustainability Performance

Wastewater Impact andManagement

Effluent Quality Measurement Results in 2023

[POJK51-F.9][POJK51-F.14]

Location
PT Vale is deeply committed to preventing water pollution
near our operations, including Lake Matano. We regularly
analyze treated effluent that will be discharged into
tributaries leading to Lake Matano. These analyses aim
to ensure compliance with water quality standards as
stipulated in Minister of Environment Regulation No.
9 of 2006 regarding Wastewater Quality Standards for
Nickel Ore Mining Activities. These analyses are carriedout by accredited independent laboratories using the
SNI 6989.59:2008 Water and Wastewater method andAmerican Public Health Association (APHA) standard
methods. Based on the examinations conducted in
2023, it was found that the quality of treated effluent
met the required standards. [303-4][EM-MM-140a.2]
Studies conducted in PT Vale’s mining area in Sorowako haveconcluded that there is no potential for the formation of acidmine drainage by the end of 2023 due to the absence of rocks
capable of generating acid mine drainage within the miningsite. Acid mine drainage represents a notable environmental
concern in mining activities, including nickel ore mining,as it can lead to adverse effects on the environment.
Of particular concern is its potential to contaminate
water bodies such as rivers, lakes, and groundwater.

Processed
Volume (m3)Parameter, Quality Standard, and Measurement Result
TSS

Cr Total

Cr6+

Fe

Ni

<200 ppm

0,5 ppm

0,1 ppm

5 ppm

0,5 ppm

6,123,490

9.700

0.065

0.020

0.083

0.012

Petea Barat

10,116,750

18.000

0.074

0.028

0.114

0.010

Petea Timur Jauh

15,349,032

13.000

0.078

0.035

0.097

0.010
0.010

Petea Timur

Loraine1,394,894

5.714

0.084

0.028

0.027

Kathryn

3,438,068

6.250

0.052

0.014

0.027

0.010

Lamoare Creek A

2,354,351

8.111

0.077

0.029

0.027

0.010

Lamangka 1

3,148,843

3.667

0.085

0.027

0.027

0.010

Lamangka 2

2,510,029

9.000

0.075

0.031

0.095

0.010

Lamangka 3

5,730,032

9.100

0.101

0.038

0.053

0.010

Petea Car Wash

73,44010.900

0.080

0.033

0.318

0.020

We are continuously striving to reduce the effluent pollution load for TSS parameters by
30 tons per year and Cr6+ by 0.05 tons per year generated from the company’s operations
and community activities around the company through the following efforts:• Increasing the sedimentation pond capacity inthe runoff water system originating from MEM
Petea Shop and Petea D3 towards monitoring
or treatment points;• Adding Chromium Treatment Plant facilities
at Petea and Konde locations and conducting
enhancements at Fiona, Lorraine, and Kathryn
locations;• Redesigning and reconstructing compartments
to improve sediment settling performance inthe Lamella Gravity Settler (LGS) unit;• Installing trash-catching nets at Sorowako
Market near Danau Matano dock;• Implementing runoff water treatment throughconventional sedimentation pond methodology,
LGS, and semi-LGS;• Conducting studies to explore alternative
chemicals for Cr6+ treatment; and• Innovating to reduce the pollution load ofwastewater.

In 2023, there was no waste-related environmental incident. [EM-MM-140a.2]

49

Sustainability Report 2023

Environmental Management Sustainability Performance

Compliance, Complaint
Handling, and Supplier/Work
Partner Evaluation[POJK51-F.16]

In managing the environment, PT Valeadheres to all applicable regulations. We
utilize the Regulation Compliance System(RCS) application and implement global
standards related to regulation compliance,
enabling the Company to access andidentify compliance levels. Environmental
management performance is also evaluatedby the Environment Committee composed of
Senior Managers and the Board of Directors.
The Company collaborates with independent
parties such as Bureau Veritas, as external
auditors to evaluate environmental
performance, with a compliance rate of
100% for 2023. We ensure that there are no

and socialize the complaint mechanism regarding PT Vale’s

suspicions of environmental mismanagement,

activities in the Tanamalia Block. FGD participants include

thereby mitigating any risk of fines or otherlocal government officials, representatives from the Ministry

legal sanctions for PT Vale. [2-27]

of Environment and Forestry (KLHK) and the Ministry of

As part of the Company’s environmental
management compliance, PT Vale conducts
Focus Group Discussions (FGDs) to launch

Energy and Mineral Resources (ESDM), Commissioners of
the National Commission on Human Rights (Komnas HAM),
environmental activists, and representatives from youth
and women’s groups. Through the FGDs, PT Vale and all
stakeholders agree to seek solutions to common concerns
arising from exploration activities in the Tanamalia Block.

50

Sustainability Report 2023

Environmental Management
Performance Evaluation Towards
Suppliers/Partners
PT Vale periodically evaluates the environmental management
performance of its suppliers/partners. In 2023, evaluations
were carried out for all (100%) new suppliers/partners. Based on
the evaluations, no contracts were terminated with suppliers/
partners due to failure to manage the environment according
to PT Vale’s regulations and standards. [308-1][308-2]

Social Sustainability Management Performance

SocialSustainability
Management
Performance

51

Sustainability Report 2023

Social sustainability performance
management disclosure serves as
an effort to mitigate the impactsof PT Vale‘s activities, prioritizing
the fulfillment of the needs of
employees and communities as directly
affected stakeholders. During thereporting period, social sustainability
performance, aligned with material
topics, comprised of support for
raising awareness and practices ofrespecting human rights, including
diversity and equal opportunity;
occupational health and safety (OHS);
and community empowerment. [2-23]

Social Sustainability Management Performance

Commitment to Human Rights
Human rights are important for PT Vale in conducting
sustainable business operations. As part of Vale
Global, we have a Human Rights Policy formulated incompliance with international principles and standards,
including the United Nations Guiding Principles on

Tanamalia Project
Human Rights
Training

how to handle situations, including protests.
In line with our commitment to respecting andsafeguarding human rights, the implementationof the Tanamalia Project has been subjected

Business and Human Rights, Universal Declaration

In 2023, our commitment to human rights wasto comprehensive social and environmentalof Human Rights, United Nations Declaration on the

manifested through a human rights training

studies. These studies have yielded multiple

Rights of Indigenous Peoples, Voluntary Principles

held on December 12-13, 2023, attended byoutcomes, including an assessment of theon Security and Human Rights, International Council

all teams involved in the Tanamalia Projectcommunity’s susceptibility to environmental

on Mining and Metals, and International Financein the Tanamalia Block, Towuti Sub-district,

impacts and social discord. Furthermore,

Corporation Performance Standards. Other global

East Luwu Regency. PT Vale organized thethere have been observations regarding theframeworks include the Sustainable Developmenttraining session with AsM Law Office Team

intricacies of land ownership among local

Goals (SDGs), ISO 26000 Corporate Social Responsibility

and human rights commissioners as speakers.

communities in the project vicinity and the

Guidelines, ISO 14001:2015 Environmental

Through this initiative, all Tanamalia Project

potential conflicts stemming from resource

Management System, and United Nations Global

teams received education to understandexploitation. The studies also encompass

Compact (UNGC) membership. [2-23][EM-MM-210a.3]

human rights and its handling. Security

problem identification, risk evaluation, risk

PT Vale upholds the principles of respecting,teams also attended the training, providing

matrices, mitigation strategies, and pertinent
stakeholder issues. All these insights serve asprotecting, and remedying human rights within theguiding factors for the company in executing

Company by implementing a hierarchical mitigationeach phase of the Tanamalia Project.

approach to prevent human rights violations.
Additionally, we provide mechanisms for complaint

PT Vale also provides extensive opportunities

and violation reporting, listening and responding

for women to take on roles and maximize

mechanisms, conducting human rights assessments,

their capabilities within the operational

and imposing sanctions in case of human rights

areas, including the Tanamalia Project.

violations, including those involving suppliers.

Currently, the total workforce in Tanamalia

Throughout 2023, PT Vale encountered no reports

amounts to 389 individuals, of which

regarding human rights violations. [2-23][EM-MM-210a.3]

52

them insights into community dynamics andSustainability Report 2023

Human Rights Training in Tanamalia

approximately 33 are women, accounting
for around 8% of the total workforce.

Social Sustainability Management Performance

Management of Social Impacts
on Vulnerable Groups and Local
Communities

The Company also fosters communication
with the community regarding
the Tanamalia Project through theManaging social impacts, particularlysocialization of the Mining Exploration

concerning the local community

Activity and Legal Position of IPPKH in

and vulnerable groups, remains a

the Tanamalia Block. The socialization
occurred at the Towuti Sub-District

Human Rights Training for
Security Personnel

top priority for PT Vale. While we

In addition to the Tanamalia Project,
the Company also ensures that security
personnel know and understand humanrights through security guard certification
training from the Indonesian National
Police in line with Decree of the Chiefof Police Number 4 of 2020 concerning
Private Security. Legal and humanrights topics are included in the training
curriculum. During the reporting period,
the number of security guard personnel
amounted to 435 individuals, consistingof PT Vale employees, contractors,
and outsourced workers provided bycertified security service providers
registered with the Indonesian Security
Service Companies Association. All
security personnel hold security guard
certification from the Indonesian
National Police, with qualifications ofGada Pratama and Gada Madya fromthe Indonesian National Police. [410-1]

the end of 2023 may not have fully

Office Hall and was attended by all
stakeholders. During the session, theauthority granted to PT Vale to conduct
exploration in the forest area of Tanamalia
was explained, as provided in Minister ofEnvironment and Forestry Decree Number
SK850MenLHK/Setjen/PLA.0/10/2021.
This decree outlines PT Vale’s rights andobligations in managing a forest area
covering 17,239.28 Ha. According to thedecree, there are nine obligations that PT
Vale must adhere to. On the other hand,
the Company faces dynamics in the area
due to the presence of 2 million pepper
plant stakes managed by local residents
within an 800 Ha area. We continue to
conduct awareness campaigns against
deforestation and communicate withland cultivators to gain access to theirgardens during the exploration activities.

acknowledge that the approachtaken with the local community until
satisfied all parties, we are pleased
that it has not resulted in disputes
with the Company. PT Vale continues
to enhance coordination and synergy
with local governments to obtain
input, guidance, and direction
regarding shared expectations
for improving employment andbusiness opportunities for the
local community. Throughout thereporting period, PT Vale continued
to prioritize initiatives such as
the Sustainable Environmentally
Friendly Agriculture andFisheries Development Program(P3SRLB). [413-1][EM-MM-210b.1]
In 2023, PT Vale conducted several
programs and activities as part of its
social impact management toward
local communities, including:53

Sustainability Report 2023

• Technical assistance for organic
vegetable cultivation (SORGA)
and market access facilitationby community groups in
Wasuponda Sub-district.
• Assistance and developmentof Medicinal Plant Cultivation(TOBAT), Training & Productionof Local Micro-Organisms(MOL), Training in Independent
Organic Compost Production,
and Community Resource HealthBusiness Training (UKBM) by
community groups in Bahodopi
and East Bungku Sub-district.
• Basic Herbal Training forCommunity Resource Health
Efforts (UKBM), Assistanceand Development of Organic
SRI Rice and Organic Vegetable
Cultivation, Training &Production of Local MicroOrganisms (MOL), and Training
in Independent Organic Compost
Production by community
groups in Baula, Pomalaa, andTanggetada Sub-district.

Social Sustainability Management Performance

Empowerment of
Persons with Disabilities

Support for
Indigenous Communities

One of the vulnerable groups that PT Valefocuses on is people with disabilities. Throughout
2023, we continued and expanded programs
supporting entrepreneurship among people withdisabilities to achieve self-reliance. One suchprogram is the Woliko Organic Chicken program,which involves 13 people with disabilities residing
in Matompi village, Towuti sub-district. PT Valeprovided training in Sustainable Environmentally
Friendly Agriculture (P3SRLB), assistancein institutional management and businessprocesses, and support for organic chicken
farming and vegetable cultivation infrastructure.
The total budget allocated for this program wasapproximately Rp150 million.

One of the three blocks, the Sorowako Block, where PT Vale operates, has local
communities who are indigenous people recognized and recorded in an agreement.
Throughout the reporting period, the Company did not face any disputes with them,nor were there any relocations resulting from mining operations. We continue to engage
in communication with the local community to find the best solutions to address any
remaining differences. All (100%) local communities live, work and farm within the active
operational area. [MM5][MM6][MM9][411-1][EM-MM-210a.2][EM-MM- 210b.2] [EM-MM-310a.2]
In line with the implementation of PT Vale’s Human Rights Policy, ourcommitment to supporting indigenous communities is manifested through:• Building relationships based on trust
and respect and advancing the rights
of indigenous communities to theirculture, heritage, and way of life.
• Recognizing the ownershiprights over land and waterand the intangible valuesof natural resources held byindigenous communities.
• Promoting and documenting theconsultation and free, prior, andinformed consent (FPIC) process
regarding Vale’s activities andthe community’s interests.
• Supporting ethno-development
among these populations.

54

Sustainability Report 2023

• Effectively managing the potential
risks and impacts of PT Vale’s
activities on indigenous land.
• Respecting and encouraging governancemechanisms that accommodate theunique social organizations of each
community and, as far as possible,
ensuring gender and generational
representation to enable effective
participation from the population.
• Providing information to indigenous
and traditional communities about
PT Vale’s feedback channels andresponding to feedback received
within the timeframe outlined
in applicable regulations oragreements with the community.

Social Sustainability Management Performance

At PT Vale, we are committed toAdditionally, 30 employees left theproviding equal opportunities for all

Company (resign) during the year,

individuals to work and advance theirresulting in a turnover rate of 0.99%. We

careers. Our recruitment processes

provide allowances and other facilities

are conducted without discriminationby considering employees’ employment

based on gender, ethnicity, religion,

status and placement locations. PT

social status, political affiliation, physicalVale grants maternity leave to female

PT Vale has a Diversity and Inclusion Charter outlining five commitments

limitations for persons with disabilities,

employees for 120 calendar days and 2

to diversity, equity and inclusion. We promote increased awareness amongor any other factors that may leaddays (on-site) and 3 days (off-site) to

employees regarding gender equality and diversity through programs

to discrimination. In 2023, we did notmale employees to accompany theirtailored for supervisory and above leaders. In 2023, PT Vale conducted

receive any complaints regarding alleged

wives during childbirth. All (100%)

diversity, equity and inclusion training attended by 1,094 participants.

discrimination in the workplace. [406-1]

female employees who completedDiversity, Equity
and Inclusion[POJK51-F.18] [EM-MM-210a.3]

Diversity and Inclusion Charter
Our commitments to diversity, equity and inclusion:
1. Create an environment that
respects everyone’s uniqueness,in which everyone has an equal
opportunity to develop theirpotential.

2. Create a safe and healthy
environment in which everyone
has the freedom to express theirideas and opinions and to bethemselves.

employees, with 203 males (76.6%) and62 females (23.4%) joining the Company.

New Hires by Age Groupand Gender [401-1]
Age Group

3. Put a transparent, fair, and unbiased recruitment process in place,evaluate it, and create a diversity-promoting work environment.
4. Show no tolerance for all kindsof harassment, discrimination,and prejudice.

55

Sustainability Report 2023

5. Open dialogues on and raiseawareness of diversity.

maternity leave returned to the same

In 2023, PT Vale welcomed 265 newpositions, and in 2023, none resigned
from PT Vale. [401-1][401-2][401-3]

New Hires by Placement Area
and Gender [401-1]
2023

Male

Female<31 years old

63

35

31-50 years old

135

25

>50 years old

5

2

Total

203

62

Placement Area
East Bungku

2023
Male

Female25

11

Jakarta8

6Pomalaa25

15

Sorowako

145

30

Total

203

62

Social Sustainability Management Performance

Total of Employees in 2023 by Position, Gender and Age Group [405-1]

Maternity Leave [401-3]
Entitlement toMaternity Leave/ Maternity
Leave

Total
employees
who took
leave

Total
Returning
Employees

Returnto Work
Rate

Employee
Retention Rate

Male

100%

88

88

100%

100%

Female

100%

5

5

100%

100%

GenderPT Vale aims to achieve a 10%

accounting for 10.8% of all managerial

participation rate of women instaff within the Company. Additionally, 5

extractive sector activities by 2023 andof these female managerial staff members

18% by 2030. We acknowledge thatoccupy top positions as Senior General

this goal is challenging, considering

Managers and Management, representing

the low involvement of women in the

1.6% of the total female workforce. [405-1]

extractive sector. Our job application
data for 2023 reveals that female
applicants accounted for only 21% of
the total 6,000 applicants. Additionally,
we acknowledge that the extractive
industry is still perceived as highly
masculine, presenting another obstacle
to increasing female participation.

number of employees with disabilities
in 2023 amounted to 3 individuals,

Female

<31

31-50

>50

4

2

0

3

3

Senior General Management

24

3

0

21

6

General Management

104

11

0

87

28

Senior Staff

402

79

39

344

98

Staff

691

131

78

578

166

Non-staff

1,489

83

51

1,257

264

2,714

309

168

2,290

565

Total

3,023

3,023

Total and Percentage of Employees by Gender, Persons with Disabilities,
and Local Workers [405-1]
Description

people with disabilities who possess
skills for available positions. The

Age Group

Male

Management

In 2023, PT Vale remained inclusive of
the necessary competencies andGenderPosition

Male
Gender

2023

2022

2021

Total

%

Total

%

Total

%

2,714

89.8

2,678

91.3

2,710

91.4

Female

309

10.2

256

8.7

256

8.6

Total

3,023

100.0

2,934

100.0

2,966

100.0

Persons with Disabilities
Local Workers

3

0.1

4

0.1

3

0.1

2,589

85.6

2,550

86.9

2,570

86.6

a decrease from 4 individuals in
2022, representing 0.1% of the total

As of December 31, 2023, the number ofworkforce. These employees arefemale employees reached 309, comprisingengaged in non-staff and senior staff

10.2% of the total workforce, marking an

roles within the Company.[405-1]

Total Female Employees in Management Positions [405-1]
Description
Director

2023

2022

2021

Δ%

1

2

3

1:2

2:3

1

1

1

0.0

0.0
100.0

increase from 256 employees, or 8.7% ofSenior Manager

4

2

1

100.0

the workforce, in 2022. Among all female

Middle Manager

11

10

9

10.0

11.1

employees, 16 hold managerial positions,Supervisor

79

64

45

23.4

42.2

Specialist

131

102

117

28.4

(12.8)

Technician

83

77

83

7.8

(7.2)

Total

309

256

256

20.7

0.0

56

Sustainability Report 2023

Social Sustainability Management Performance

Support for the
Trade Union andCollective Labor
Agreements

Percentage of theLowest Remuneration
Against the
Minimum Wage

Throughout 2023, no obstacles hindered

PT Vale provides remuneration without

employees from unionizing or forming

differentiation between male and female• Socialization and DEI workshops toteachers and students at Sorowako
Education Foundation starting fromelementary, junior high, high school, anduniversity levels (ATS) in 2022 and 2023.

labor unions. Through representatives

employees, maintaining a 1:1 ratio for the samein the trade union, employees andpositions. The total remuneration package

management have drafted and agreed

also considers allowances, bonuses, placement

upon the 20th Collective Labor Agreement

incentives, and housing facilities at Sorowako,(PKB) for 2023–2025 period, per Law No.

Bahodopi, and Pomalaa mining operation sites.

• Increase awareness related to DEI by
providing Inclusive Leadership training toleaders and providing Unconscious Bias
& Harassment at the Workplace training
for all PT Vale employees in 2023.

13 of 2003 on Manpower. The CLA serves

Generally, the lowest remuneration for PT

to safeguard the rights of all employees

Vale employees in 2023 was still 15.2% higher

and workers. For foreign workers

than the applicable minimum wage in the East

(expatriates), the CLA refers to their

Luwu Regency. The Company also grants leave• Periodically improving infrastructure
to support the implementation of DEI
at PT Vale, such as preparing portable
toilets in the mining area, access roads
and toilets for disabled employees,
lactation rooms in the workplace,and canteens in several work areas.

respective employment contracts. PT Valeentitlements to employees as regulated in theroutinely communicates with the trade

CLA. [POJK51-F.20] [202-1][405-2]

PT Vale also supports activities andemployee groups/organizations
that strengthen our appreciation
for diversity, including:• Webinars and roadshows to
students and fresh graduates
regarding the implementation ofdiversity, equity, and inclusion (DEI)
at PT Vale actively since 2021.

• PT Vale’s CEO, Febriany Eddy,
actively promotes DEI at PTVI bybecoming key speakers at national
and international events.

57

Sustainability Report 2023

union, including regarding the renewalof the Collective Labor Agreement (CLA),
which is conducted every two years. The
CLA also regulates notifying employees
about operational changes within the
Company. In support of human rights, PT
Vale also supports periodic unionizing andgathering activities. [2-30][407-1][402-1]

Social Sustainability Management Performance

Employee
Training andDevelopment

Prioritizing
Dialogue to Find theBest Solutions

PT Vale ensures equal opportunities for

We understand the dynamics

formulating problem statements andall employees to participate in training

within society, where differences insolution proposals, and coordinating theand provides specialized training forperspectives can arise. The Company

stages of issue resolution with relevant

employees approaching retirement.

respects the decision of a group ofparties. The steps of the Facilitation

In 2023, the total training hours for

Sorowako residents who visited theTeam refer to the Regent of North Luwu

employees reached 87,639 hours, with

National Human Rights Commission

Decree No. 50 of 2002 and the Joint

office and reported alleged human

Agreement dated June 15, 2002, based

rights violations by PT Vale regarding

on data of 62 individuals (or their heirs)a summons issued to 39 residents

as rightful beneficiaries. In principle,

concerning old camp land. In response,

PT Vale is prepared to transfer 12 land

the Company remains committed tocertificates to the community; however,prioritizing dialogue to find the best

the transfer process will be carried out[POJK51-F.22]

In line with the dialogue, it has been
agreed to establish a Facilitation Teamtasked with compiling an inventory ofissues, including gathering accurate data,

9,330 participants consisting of 8,491(91%) males and 839 (9%) females,
averaging 29 hours of training per
employee. PT Vale organizes specialized
training for retiring employees to assist

Preventing
Forced and ChildLabor[POJK51-F.19]

them post-retirement, whether inentrepreneurship or other endeavors.

During 2023, there were no reports

solutions, facilitated by the Regional

concerning forced labor practices. PT Valeonce all accompanying issues have been

During the reporting period, 89 employees

Leadership Forum of East Luwu Regency.

adheres to the provisions of Labor Law

resolved by the stakeholders involved.

participated in specialized training,covering topics such as: [404-1][404-2]

No. 13 of 2003 and compensates for any• Health;• Psychology;• Entrepreneurship;• Guided visits to various businesses
with guest speakers.

overtime work. We ensure that activities
at PT Vale and our contractors/vendors
pose no risk of child labor by setting theminimum age limit for employees at 18
years old in accordance with labor laws
and International Labour Organization

PT Vale provides extensive opportunities(ILO) standards. No employee strikes

for every employee to advance theiroccurred during the reporting period.

careers, taking into account performance[408-1][409-1][MM4][EM-MM-310a.1]

evaluations conducted for all (100%)
employees. In 2023, 597 aemployees
were promoted, comprising 557 (93%)
males and 40 (7%) females. [404-3]

58

Sustainability Report 2023

Social Sustainability Management Performance

Maintaining a Decent and Safe
Working Environment Together[POJK51-F.21]

PT Vale is committed to promoting
sustainable health and safety
performance with the ultimate goalof achieving zero harm, in line with
the Principles of Sustainable Mining
Management Based on the ICMM
Sustainable Development Framework.
We adhere to the Mineral and Coal
Mining Safety System (SMKP Minerba),
as per Minister of Energy and Mineral
Resources Decree No. 1827/K/30/

measures covers all (100%) employees

MEM/2018 Regarding Guidelines forand contractor/vendor workers. There

the Implementation of Good Mining

are no exceptions for them, including

Engineering Practices, and enforce Safe

other stakeholders visiting/working inWork Permits (SWP). Currently, PT Vale is

the PT Vale environment. [403-1][403-8]

in the process of ISO 45001 certification
on mining safety management system. PT
Vale also implements industrial hygiene
measures, including addressing dust,
noise, and ergonomics, as outlined in
KPIs and subject to regular review. The
implementation of health and safety

59

Sustainability Report 2023

Periodically, as needed, PT Valecollaborates with stakeholders
who may be affected by potential
emergency conditions threatening
safety. Collaboration initiatives
undertaken during 2023 include:• Large-scale inspection of theBalambano Dam by the Dam Safety
Commission Team of the Ministry of
Public Works and Public Housing (PUPR).
This inspection is part of the feasibility
assessment process for extending the
dam’s operational permit every five
years. During this activity, the team wasaccompanied by several leaders from PT
Vale’s Energy and Logistics
Department.

• PT Vale showcased the Robotic
Monitoring System (RMS) technology
at the digital reality and geospatial
event, HxGN LIVE Indonesia 2023, held
for the first time in Southeast Asia. 519
participants from various professional
backgrounds attended the event. The
RMS technology innovation has beenin use since late 2019 and was createdto monitor the safety of three dams
owned by the company: Balambano
Dam, Batu Besi, and Karebbe.
• Emergency response simulation involving
firefighting at the Mining Harapan
Office, Sorowako, as part of PT Vale’s
participation in Disaster Preparedness
Day in 2023. The simulation involved
employees from the Mining Harapan
Office, the Fire & Emergency Services
team, and the Health, Safety, andOccupational Risk (HSOR) team.
• PT Vale and the East Luwu Regency
Government, through the Regional
Disaster Management Agency (BPBD),
held a meeting to update the Emergency
Action Plan (RTD) document for the Seri
Sungai Larona Dam (PKM I). According to
RTD document regulations, it must be
updated every five years and contains
systematic instructions, including
identifying threats to dam safety,
expediting effective responses toprevent dam damage, and preventing or
minimizing casualties and environmental
damage caused by dam failure.

Social Sustainability Management Performance

Key Hazard
Identification and
OHS Training

were addressed, including investigationsof the incidents that occurred. [403-2]
We have a policy to relocate employees orworkers from hazardous situations affecting
their safety and health. Employees have the

The implementation of OHS starts withright to refuse unsafe work and report it toidentifying key hazards. It is managed

their supervisors. The company will follow up

through embedded systems/devices inon reported incidents, including conducting

operational activities, namely Contractor

investigations if necessary. PT Vale has

Safety Management System (CSMS), General

identified hazards, assessed risks, andInduction Program (GIP), Site Specificimplemented controls to mitigate potential

Induction Program (SSIP), Risk Assessment

risks, ensuring they remained manageable(RA), Job Safety Analysis (JSA), Safety Talks,

throughout the reporting year. [403-2]

Critical Activity Requirements (CAR), Safe
Work Permit (SWP), and audits/inspections.
PT Vale has mechanisms for employees
and workers to report unsafe working
conditions and accidents. The reporting
procedure for safety monitoring andworkplace inspection activities is carriedout through smartphone applications,
web-based Critical Risk Management(CRM), and the IRIS smartphone
application. During 2023 all conditions that
endangered safety and health at work

The Mining Safety Committee supports theimplementation of OHS. Through committee
meetings, employee representatives canaddress various OHS-related issues. In
2023, the committee held 12 meetings,
which PT Vale followed up. Employee andPreventive Health Efforts Programs
include:• Peer Educator Programfor contractors• Assessment of Health Risk
Factors in the workplace• Prevention programfor Substance Abusein the workplace• Employee Health Examination(Medical Check-Up)

also includes training and certification• Prevention and control
program for HIV/AIDS
and Tuberculosis

to enhance competencies. In 2023, PT
Vale conducted 3 OHS training sessions
attended by 218 employees and 5 workers(contractors/vendors). [403-4] [403-5]

2022

2021

First Operational
Supervisor (POP)

155

87

85

Intermediate Operational Supervisor (POM)

59

56

26

Principal Operational Supervisor (POU)

9

4

6

Sustainability Report 2023

Promotive Health Efforts
Programs include:• Mental health program

2023

60

The occupational health implementation in 2023 focused on: [403-3]

worker engagement in OHS implementationOHS Certfication Training in 2023 and Total Participants
Training

Employee Health• Management of Food, Beverage,
and Nutrition for mining workers• Hygiene and Sanitation
Management• Ergonomic work implementation• Nutrition improvement
program• Vaccination program• Prevention and control
program for noncommunicable diseases• Surveillance and Analysis
of Occupational Health andother common diseases• Implementation programfor ergonomic work andmusculoskeletal disorders• First Aid in Accidents (P3K)• Management of Work Fatigue

Social Sustainability Management Performance

Operational Safety
Management
Certain types of work in mining and nickel in matte production operations pose high risks thatcan endanger the safety and health of employees and workers. We have implemented mitigation
measures to minimize potential hazards. In addition to our operational safety management
standards, PT Vale also adheres to government regulations as part of our commitment tocompliance. [403-7]
High Risk Work Faced by Workers
Type of Work

Risk Faced by
Employees
and Workers

Mitigation Measure[403-9][403-10]

Operating heavyequipment.

Serious injury/death.

• Developing CAR/MHS-03 standards.
• Conducting vehicle operating training and audit.

Working at heights.

Serious injury/death.

• Implementing CAR/MHS-01 standards.
• Conducting training on and audit
of working at heights.

PT Vale includes all employees in the social health insurance
program provided by BPJS Kesehatan. As participants, they haveaccess to healthcare services for non-Occupational Diseases(PAK), at primary healthcare facilities to referral hospitals. We
facilitate regular medical check-ups (MCU) for employees andworkers to monitor their health. In 2023, 2,682 PT Vale employees
and 14,131 contractor workers underwent MCU. [403-6]
We continue our voluntary HIV/AIDS workplace prevention
activities, which have been ongoing since 2008 in collaboration
with the East Luwu Health Office. The Company also
conducts voluntary activities to address other serious
diseases, such as Tuberculosis and Dengue Fever.[403-6]

61

Sustainability Report 2023

Blasting.

Serious injury/death.

Working nearhazardous gases.

Hazardous gas
poisoning.

Working in heat
exposure areas.

Heat stress.

Working in noisy areas.

Loss of hearing
sensitivity.

Other types of work
identified from project
job demand analyses:• Working with mining
equipment;• Manually handlingmaterials.

• Implementing CAR/MHS-09 standards.
• Certifying blasting operators.
• Auditing blasting jobs.
• Conducting hygiene industrial risk assessment.
• Offline and online monitoring.
• Preparing safe work procedures.
• Wearing personal protective equipment (PPE).
• Conducting hygiene industrial risk assessment.
• Offline and online monitoring.
• Preparing safe work procedures.
• Wearing personal protective equipment (PPE).
• Conducting hygiene industrial risk assessment.
• Offline and online monitoring.
• Preparing safe work procedures.
• Wearing personal protective equipment (PPE).
• Performing engineering control over mining

Musculoskeletal
disorder(low back pain, hernia
nucleus pulposus, etc.)

equipment that has high ergonomic risk.

• Performing administrative control by raising theawareness of mining operators who work withequipment that has high ergonomic risk.
• Performing administrative control over all types ofwork requiring workers to handle materials manually.

Social Sustainability Management Performance

PT Vale conducts an annual OHS compliance audit, following the Mineral and Coal Mining Safety Management System
Occupational(SMKP Minerba) and the IMS-Environment Health and Safety Management System. The SMKP Minerba audit for 2023
conducted internally by certified auditors. The audit results showed a compliance rate of 73.56%, higher than
Health and Safety was
the 2022 rate of 70.24%. Safety performance is also monitored through statistical calculations, including Severity
Rate (SR) and Frequency Rate (FR), calculated per 1,000,000 person-hours worked. The calculations do not include
Performanceany exemptions for specific employees or workers and cover both mining operations and production processes.
OHS Performance Statistics [403-9]
2023

Indicator

2022

Sorowako

Bahodopi

Pomalaa

Number of Fatalities

00

Lost Time Injuries

30First Aid Injuries

10

6

2021

Sorowako

Bahodopi

Pomalaa

Sorowako

Bahodopi

Pomalaa

0

1

0

0

2

0

0

0

0

0

0

4

0

1

13

0

0

0

15

0

0

Near Miss Unsafe Action, Unsafe Condition

62

0

0

70

0

0

77

0

0

Days Lost due to Accident (Severity Rate)

0.51

0

0

254.14

0

0

0.20

0

0

Total Accident Rate (Frequency Rate)

0.31

0

0

0.68

0

0

0.70

0

0

In 2023, PT Vale implemented several measures to enhance

Total Occupational Accidents and the Rates in 2023 [403-9]
Occupational Accident
Level

Sorowako

Bahodopi

workplace safety and security: [403-9]

Pomalaa

Total

Rate

Total

Rate

Total

Rate

Light

0

0

0

0

0

0

Medium and Heavy

3

0.25

0

0

0

0

2023

Fatal

0

0

0

0

0

0

Total

0

0.25

0

0

0

0

Light

0

0.00

0

0.00

0

0.00

Medium and Heavy

6

0.25

0

0.00

0

0.00

Fatal

1

0.50

0

0.00

0

0.00

Total

7

0.30

0

0.00

0

0.00

2022

• Monthly contractor forums, mandatory for operational
responsibles (PJO) and/or company owners.
• Prevention week, health week, Day of Reflection (DoR), Leadershipin the Field (LIF), and Safety stand down events, where all
operations are halted simultaneously to reflect on safety-related
incidents in line with Vale’s “Life Matters Most” values.
• CRM reporting competition aimed at improving the quality ofinspection reports by prioritizing improvements based on any
non-compliance findings.

There were no reported Occupational Diseases (PAK) in 2023 among

2021
Light

10

0.50

0

0.00

0

0.00

both employees and workers. We conducted mitigation efforts

Medium and Heavy

4

0.20

0

0.00

0

0.00

for commonly diagnosed illnesses through health share initiatives.

Fatal

0

0.00

0

0.00

0

0.00

Through hazard identification and risk assessment (HIRA), PT Vale has

Total

14

0.70

0

0.00

0

0.00

identified risks related to the company’s OHS risks. [403-3] [403-10]

62

Sustainability Report 2023

Social Sustainability Management Performance

Dam Safety and Security
Management
PT Vale continues to enhance the safety and security ofits dams. During the reporting period, the Dam Security
Commission Team from the Ministry of Public Works and Public
Housing (PUPR) conducted a major inspection at the Balambano
Dam. This visit was part of the feasibility assessment process
for the extension of operational permits conducted every
five years. The inspection covered five aspects: construction
safety, technological feasibility, social impact, environmental
impact, and operational governance. Based on the findings,
the Dam Security Commission Team assessed that theBalambano Dam is well-managed by PT Vale’s management.
The Balambano Dam is one of the most advanced dams inIndonesia, utilizing Roller Compacted Concrete (RCC) technology
with a capacity of 31.5 million cubic meters of water. In
addition to visiting the Balambano Dam, the delegation also
visited the Karebbe Dam. The Dam Security Commission
Team also observed facilities such as the Upper Gallery,
Power House, Control Room, and Top DAM at the dams.
The Company is committed to maintaining dam security byimplementing the Robotic Monitoring System to monitor
the conditions of the Balambano, Larona, and Karebbe dams
24 hours a day. Through this technology, in the event ofany danger around the dams, early warnings will be issued
connected to the control room, enabling management
to take prompt action to respond to the warnings.

63

Sustainability Report 2023

Social Sustainability Management Performance

Empowering the Community Together[POJK51-F.25]

Social Impact
Management[POJK51-F.23] [403-9][EM-MM-320a.1]

Negative Impact Management in 2023 [413-2]

Number of
Villages Affected

We have conducted a social impact
assessment of the company’s activities

Percentage
of Villages in
Operational
Areas

Type of Impact

Sorowako Blockacross operations in the Sorowako,15

Air pollution, water pollution,soil pollution, employment
opportunities, population
growth, cultural changes.

Air filtration or purification technology, carbon
emission reduction technology, construction of liquid
waste ponds, water treatment installations, liquidand solid waste recycling, post-mining reclamation,
food security intervention programs, real income
enhancement programs, infrastructure development,
strengthening of local social and cultural aspects.
Sustainable environmental management.

16

Employment opportunities,
population growth, local
cultural changes.

Food security intervention programs, real income
enhancement programs, infrastructure development,
strengthening of local social and cultural aspects.
Sustainable environmental management.
The use of air filters, carbon emission reduction
technology, construction of wastewater catchment
ponds, water treatment installations, recycling of
liquid and solid waste, post-mining reclamation,
food security intervention programs, real
income enhancement programs, infrastructuredevelopment, social and cultural resilience programs,sustainable environmental management.
Intervention programs for food security, real
income improvement programs, infrastructuredevelopment, social and cultural resilience programs,sustainable environmental management.

Bahodopi, and Pomalaa regions. PT
Vale has also conducted a social returnon investment (SROI) assessment in

Nuha
Sub-district

5

the Sorowako area. The assessment
involved stakeholders in identifying
community needs, mapping vulnerable
stakeholder groups, exploring
opportunities for collaboration with local

Wasuponda
Sub-district

6

governments, and establishing grievancemechanisms. The company manages
social impacts through Community
Development and Empowerment(CDE) activities. These activities cover

TowutiSub-district

18

47

Air pollution, water pollution,soil pollution, employment
opportunities, population
growth, cultural changes.

MaliliSub-district

923

Air pollution, water pollution,
employment opportunities,
population growth, local
cultural changes.

areas within rings 1, 2, and 3, tailored
to stakeholder mapping outcomes
and local government development
plans. [413-1][413-2][EM-MM-210b.2]

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Sustainability Report 2023

Impact Management andType of Social Investment

Social Sustainability Management Performance

Negative Impact Management in 2023 [413-2]

Number of
Villages Affected

Percentage
of Villages in
Operational
Areas

Type of Impact

55• Population increase,local cultural changes.
• Increase in dust particles
due to operational
vehicle activities.
• Impact of community
plantation landacquisition vulnerability.

• Intervention programs for real income
improvement, social and cultural sustainability.
• Regular watering.
• Preparation for the LRP program.

45• Population increase,local cultural changes.
• Increase in dust particles
due to operational
vehicle activities.
• Impact of community
plantation landacquisition vulnerability.

• Intervention programs for real income
improvement, social and cultural sustainability.
• Regular watering.
• Preparation for the LRP program.

77

Population increase, local
cultural changes, landfill mining.
Increase in dust particles due tooperational vehicle activities.

• Intervention programs for real income
improvement, social and cultural sustainability,
household waste management.
• Regular watering.

23

Population increase, local
cultural changes, landfill mining.
Increase in dust particles due tooperational vehicle activities.

• Intervention programs for real income
improvement, social and cultural sustainability,
household waste management.
• Regular watering.

Impact Management andType of Social Investment

Pomalaa Block

Pomalaa
Sub-district

Baula
Sub-district

12

10

Bahodopi Block

East Bungku
Sub-district

Bahodopi
Sub-district10

3

In 2023, PT Vale’s social programs contributed to achieving the Green PROPER, particularly in the aspect of community
empowerment program performance, and received recognition from various relevant institutions. This includes theIntegrated Community Empowerment and Development Program (PPM)/Mining Community Welfare (Tamasya) Award
2023, newly organized by the Ministry of Energy and Mineral Resources (ESDM). The Company received two out of
three awards evaluated, namely in the Planning Category and Implementation Category. [413-1][413-2][EM-MM-210b.2]

65

Sustainability Report 2023

PPM Master Plan
Development 2023-2027
As a sustainable development effort, PT Vale has reported to
the Ministry of Energy and Mineral Resources the renewal of
the PPM Master Plan for the 2023-2027 period of the Sorowako
Block. The second period of PPM program is integrated andsupports the achievement of SDGs in villages, aligning withthe development priorities in East Luwu Regency. Thesepriorities include economic growth based on non-mining
sectors such as agriculture, agribusiness, tourism, MSMEs,
and other creative economic sectors. The second priority is
to strengthen the quality of education and healthcare andachieve village self-reliance, thereby improving the quality oflife and preparing for post-mining self-reliance in the future.
Based on the evaluation results of the first phase of the
PPM program, during this second phase, the Company
implemented data-based program implementation
targeting poor or vulnerable groups. Consequently, theprepared programs will be managed synergistically withstakeholders, ensuring that planning refers to data to ensure
targeting accuracy and avoid favoring specific groups.
The PPM program for the 2023-2027 period will focus on fivepriority areas and combine with the SDGs Village approach,which also supports regional economies in developing flagshipproducts. In addition to collaboration with local governments,
the PPM will also collaborate with the Ministry of Energy andMineral Resources and the Ministry of Tourism and Creative
Economy in developing Creative Villages that can support
economic development and community welfare, including
agriculture, livestock farming, fisheries, entrepreneurshipdevelopment, tourism, creative economy, or MSMEs.

Social Sustainability Management Performance

Building Synergy with
the Government

Synergy Between PT Valeand the Community

We continue to build synergies with the government in

PT Vale collaborates with the community in implementing

implementing PPM programs and activities. In line with theseveral empowerment programs, including:

implementation of the PPM program for the 2023-2027 period,
PT Vale launched the Operational Technical Instructions (PTO)
for the PPM Program to support Sustainable Development
Goals (SDGs) in villages. The PTO launch event was attended
by officials from the East Luwu Regency Government, marking
the beginning of the implementation phase of the PPM-SDGs
Village Support Program, which synthesizes several program
models implemented over the past approximately 10 years.
The PTO for PPM-SDGs Village Support serves as the operationalreference and guideline for all stakeholders in realizing programswith broad impacts through accountable and transparent
governance. The completion of this PTO also provides budget
certainty, timing certainty, assurance of the programs to be
funded, and certainty of implementation mechanisms.

• Training for heavy equipment operators of excavatorsand dump trucks for local talents in the Tanamalia
Block, East Luwu Regency. The training was attended
by 52 participants from five villages in Loeha Raya,
namely Loeha, Rante Angin, Bantilang, Tokalimbo,
and Masiku. The two-month training covered
theoretical and practical aspects of heavy equipment
operation. At the end of the training, those who
passed the test received competency certificates.
• Training in electricity, welding, and basic computer skills
attended by 64 participants, who were local residents
from 13 empowerment villages of PT Vale in the
Morowali mining operation area and two empowerment
villages of PT Bahodopi Nickel Smelting Indonesia(BNSI) in Sambalagi Site. The training lasted for twomonths and aimed to address the biggest challenge in
Morowali Regency regarding the availability of skilled
and competitive local workforce, thus supporting
PT Vale’s commitment to prioritize local talent.

66

Sustainability Report 2023

• Inaguration of an Organic Field School inUlulere Village, East Bungku, Morowali. This
Organic Field School will be used as a meeting
place and learning center for farmers from
13 empowerment villages of the company
in Morowali Regency. Through the Organic
Field School, farmers receive training andknowledge about organic farming, aiming toincrease crop yields with efficient production
costs because some needs, especially
fertilizers, can be produced and fulfilled
independently. At the same time, the selling
price of agricultural products is higher thanthat of conventional farming production.
• PT Vale sponsors PSM Makassar, a footballclub from South Sulawesi, during thesecond round of the 2023/2024 Liga 1
competition. The collaboration is based on
the consideration that PSM Makassar isfrom the same area as PT Vale’s operations
and is one of the deserving football clubs
in Indonesia due to its achievement as thechampion of Liga 1 last season. Throughthis collaboration, we hope to help develop
local football talents around PT Vale’s
operational area and be part of PSM
Makassar’s football development. We also
hope to collaborate extensively by involving
PT Vale’s fostered SMEs through football,including during PSM Makassar matches.

Green Open Space (RTH) Batara Guru Roundabout
Collaboration in the development andmanagement of Green Open Space (RTH)
Bundaran Batara Guru (BBG) together with theRegional Government of East Luwu Regency,
started in 2022. The construction of this RTH
facility can be utilized by the community as aspace for interaction, education, recreation,and support economic activities and ecological
functions. The RTH development is targeted tobe completed in 2024 and managed by the East
Luwu Regency Government.

Social Sustainability Management Performance

67

Sustainability Report 2023

Social Sustainability Management Performance

PPM Funding Support

Several of the PPM activities carried out in 2023 include:In line with the PPM Master Plan for 2023-2027, the implementation of PPM
activities includes not only four sub-districts in East Luwu Regency but
also other empowerment areas in Pomalaa, Kolaka Regency, and Bahodopi,
Morowali Regency. The Company’s support in 2023 included US$5,571,359 inprogram financing, covering Sorowako, Bahodopi, and Pomalaa Blocks. This
amount represents a 4.3% increase from the US$5,343,585 in 2022.
PPM Funding Support in 2023 (US$)
Program andActivity

68

Sorowako

Bahodopi

PomalaaJumlah

Education

151,579

92,0105,004

248,593

Health408,288

143,181

73,070624,539

Real Income

348,902

158,310

188,432

695,644

Economic SelfReliance963,793-

12,780976,573

Socio-Cultural

210,895

221,654

61,509494,058

SocioEnvironmental

106,903112,946-

219,849

Community
Institution

169,82174,053-

243,874

PPM
Infrastructure
Support1,321,323

233,437

513,469

2,068,229

Total

3,681,504

1,035,591

854,264

5,571,359

Sustainability Report 2023

• Infrastructure development under PPM,
such as the construction of green open
spaces (RTH), development of water
tourism facilities, construction of village
irrigation networks, Rice Milling Units(RMU), the establishment of Village
Health Posts, the establishment of
cattle farming facilities, rehabilitation
and arrangement of village culinary
stalls, construction of village
landmarks, construction of food courts,
construction and development of waste
management facilities (TPS3R) acrossvillages, construction of warehouses
and paddy drying floors, arrangementof underwater ecosystems through thecreation of fish ecosystem units (fishapartments), construction of floating
fishermen’s houses, improvement offarm road quality, construction andrenovation of fish feed warehouses, andrenovation of fishermen’s docks.
• Activities in the Bahodopi Block include
the construction and development ofwaste management facilities (TPS3R),
the development of organic Sri ricecultivation, the Healthy Community
Movement, including Healthy Exercise
and Healthy Eating Socialization and
Health Checks, middle and high school
equivalency education, the constructionof community health center facilities,
and the Socialization of Stunting
Reduction and Mother and Child Care.

• Several capacity-building activities
include training and study tours toenhance destination management
capacities at Lake Toba, communitybased waste management training, fish
feed industry management training,
and appropriate agricultural technology(TTG) application training. In the
Bahodopi Block, there were training
sessions on Proper Fish Cultivation forfishermen, Religion Guidance, Sports
Coaching Clinics-Football for youth inempowerment areas, Organic YouthCamp Training, and Vocational Training
in Welding & Electrical for the local
workforce.
• PPM activities carried out in the
Pomalaa Block include the constructionof Early Childhood Education(PAUD), construction of clinic
fences, procurement of ambulances,procurement of farmer shredding
machines, construction of organic Sririce farmer workshop, human resource
development training, procurement ofheavy equipment simulators, tourism
development, construction of volleyballfields, construction of tourist accessroads, establishment of art studios,rehabilitation of sub-district offices,
construction of 70 street lights,
construction of embankments, farmer
road construction, campus development,
and asphalt paving.

Social Sustainability Management Performance

Building Infrastructure to Support the Integrated Community
Empowerment and Development Program (PPM)
The implementation of PPM also includes supporting the development of infrastructure
to support PPM, with a realization in 2023 reaching US$1,321,323, down by 53% from
US$2,786,450 in 2022. For the Sorowako Block, the decrease in realization in 2023 is due tomost of PT Vale’s PPM programs in this period being in a transition phase from planning to
implementation. Here’s a breakdown:• Education Sector: Budget absorption
for community scholarships and foster
children has not been realized due tocoordination processes, socialization,and various dynamics with communities
and local governments regarding
governance and beneficiary selection.
Therefore, the realization of scholarships
is expected to commence in Q1 2024.
• Health Sector: The decrease in budget
absorption in this sector is largely
influenced by government policies
regarding the obligation of every citizen
to use the BPJS Health card, leading to a
direct impact on the decrease in regular
health service financing for the affected
local communities in the Sorowako block.

• Transition Phase: The transition ofprogram schemes from area-based
schemes to SDGs Desa support
schemes requires several stages ofsocial preparation, cross-sectoral
coordination, legal compliance
processes, and governance framework
development, which began in
March 2023. Hence, the realization
is expected to begin in Q1 2024.

PPM supporting infrastructuredevelopment includes Sorowako,
Bahodopi, and Pomalaa Blocks, withrealizations including:• Subsidized Electricity Facilities for
Local Communities, Lighting and
Clean Water Facilities for the General
Public (US$1,040,778 Sorowako Block)• Infrastructure Development andEconomic Development of Dongi Ledu
Ledu Villages (US120,647 Sorowako Block)• Public Facilities and Infrastructure(Meeting Halls, Plazas, Road Repairs,
Water Supply Networks, and Sports
Facilities) (US$159,899 Sorowako Block)• Village Infrastructure Development(Fences, Gabions, Farm Road Pavements,
Markets, Drainage), Procurementof Traditional Bamboo MusicalInstruments, Tourism Development,
and Educational Facilities Development(US $466,874 Bahodopi Block)• Lighting and Clean Water Facilities(US$214,155 Pomalaa Block)• Infrastructure Development(Rehabilitation of the Sub-district
Office in Baula, Development of
the PNUP Kolaka Campus, andConstruction of Terminal Embankments
in Pomalaa) (Total: US$169,026)• Public Facilities and Infrastructure
Development (Road Asphalting
and Repairs, Terminal
Embankment Construction)(US$195,804 Pomalaa Block)69

Sustainability Report 2023

OTHER CAUSES
During 2023, PT Vale conducted various
community care and social assistanceactivities for communities around its
operations and in other areas acrossIndonesia, including:• Formation and strengthening ofcommunity institutions (VillageOwned Enterprises and Subsidiaries,
youth organizations, farmerorganizations, women’s groups, herbal
enthusiasts) - Sorowako Block• Engagement of local communities insustainable environmental conservation
activities, such as strengthening
waste banks, tree planting andmangrove tracking, fish apartments,
cleaning community drainage
channels to preserve the Lake Matano
ecosystem, assistance for natural
disaster victims (earthquakes, fires,floods), and provision of facilities
for community places of worship.

Social Sustainability Management Performance

Grievance and Response
Handling

Vale’s grievance mechanism follows Principle 31 of the UN Guiding Principles on Business and Human Rights

PT Vale provides the community with access to submit

find the best solutions. The following tabulation presents the follow-up to some complaints/grievances.

[POJK51-F.24] [413-1a][MM7](UNGPs), as well as guidance from ICMM (International Council on Mining and Metals), implementing theprinciples of legitimacy, accessibility, predictability, equitability, transparency, rights-compatibility, andsource of continuous learning. We respond to community-submitted reports using various approaches tocomplaints/reports directly during monthly coordination
meetings with sub-districts. We also established a
Stakeholder Demands and Issues (SDI) System as anapplication for handling each complaint and report.
The External Relations Department follows up on every
complaint/report received, according to the type of interaction
received, such as accusations, complaints, information,
requests, and praises. These will be addressed using various
approaches involving relevant functions. Throughout 2023,
several reports were submitted to PT Vale:• There were 698 reports in the operational area of Sorowako
Block, with 130 accusations and complaints categorized
into issues related to job opportunities, land acquisition
conflicts, compensation payments, road access, andsupport for social projects.
• There were 268 reports in the operational area of Bahodopi
Block, with 108 accusations and complaints categorized
into issues related to job opportunities, business
opportunities, land acquisition, road access, dust, safety
in community residential areas, and support for social
projects.
• There were 54 reports in the operational area of Pomalaa
Block, all categorized as accusations and complaints related
to labor issues, land acquisition, compensation payments,and safety in community residential areas.

70

Sustainability Report 2023

Complaints and Grievances by the Public in 2023 and Follow-Up [POJK51-F.24]

Complaint/Grievance

Location

Follow-Up

Sorowako Block
Issues related to dust
pollution resulting frommining activities

Kuari, Asuli Village

Coordination has been conducted with the Mining
department to carry out regular watering in the area.
process within the four empowerment areas.

Issues related to disturbed
clean water due tomining activities

Kuari, Asuli Village

Through External Relations, we assisted the community
by constructing 2 clean water facilities benefiting 650
residents in the Kuari, Asuli Village and its vicinity.

Issues related tonoise pollution frommining operations

Kuari, Asuli Village

Coordination with the Mining department resulted inagreeing upon several options to reduce the work shiftintensity from 3 shifts (24 hours) to 2 shifts.

Issues related to land
occupants within thecontract area

Kuari, Asuli Village

Humanitarian Aid programs have been provided tocommunities/land occupants affected by activities in PT
Vale projects, specifically in Lembo South 01 & 02.

East Luwu

Discussions have taken place with the East Luwu Manpower
Office regarding the PT Vale recruitment process. It was agreed
that there would be no specific quota for the community but
rather refer to the ID card (KTP) as proof of residency in East
Luwu, as an empowerment area. Additionally, PT Vale initiatedpreparatory activities such as logic and reasoning test preparation
for candidates participating in the PT Vale workforce selection.

Complaint regarding
the 117 non-staff
intake quota in 2023

Social Sustainability Management Performance

Non-Company Land Use

Complaints and Grievances by the Public in 2023 and Follow-Up [POJK51-F.24]

Complaint/Grievance

Location

Follow-Up

There are no community mining activities in theoperating area of PT Vale. However, we haveobserved the use of land for other activities

Bahodopi Blockconducted by the community within the contract
Transparency in PT
Vale’s Workforce
Recruitment Results

Community Land
Complaints and Claims

Complaints Regarding
Alternative Road Access

Bahomotefe Youth
Organization(Representing several
Empowerment Village
Youth Organizations)Bahomotefe Village

Bahomotefe Village,
Onepute Jaya Village,
Le-le Village andDampala Village

Discussions have been held to clarify the recruitment process
at PT Vale. Information regarding job vacancies has been
conveyed to the Youth Organization, and job postings have been
displayed at each office in the 13 Empowerment Villages.
A dialogue has been initiated involving the Land Acquisition Team,PT Vale External Team, Onepute Jaya Village Government, andBahomotefe Village with the complainant. The Land and Village
Government teams have provided explanations regarding thelocation and status of the land claimed by the community.
Preliminary socialization has been conducted in several
villages to explain the alternative road.
PT Vale management coordinated with the relevant Village
Government to follow up on the repair of the alternativeroad to ensure its suitability for use by farmers.

• Issuing verbal and non-verbal
warnings (written warnings);• Reporting to the police if warnings are ignored; and• Conducting regular monitoring
Periodically, PT Vale also evaluates the performanceof suppliers/working partners, which may potentiallyhave social impacts on the local community, along withevaluating environmental management performance.
Throughout 2023, we evaluated all (100%) new
suppliers/working partners. Based on the evaluation
conducted during 2023, there were no terminations ofPomalaa Block

employment contracts with suppliers/work partners
due to social and environmental impacts as stipulated

Portal Closure by the
PTVI Local Community ofRegarding Local Labor

Mekongga Earth
Forum and Circle One
Baula Community

A meeting and discussion were conducted between the local
forum and PTVI management regarding local labor.

Some members of the local
community claim that theirland is being used by PTVI
and demand compensation,
leading to legal action.

Hakatutobo Village

The disputed land is situated within the forest area (IPPKH
and PTVI CoW). The District Court’s decision states thatthe plaintiff’s lawsuit is deemed inadmissible.

Community protests at
the intersection due tocongestion during rush
hours. They request
traffic management tobe provided at the site.

Pesouha Village

Traffic management has been provided at thementioned intersection to regulate traffic flow.

71

of work area. This situation is addressed by:[MM8]

Sustainability Report 2023

in PT Vale’s regulations and standards. [414-1][414-2]

Sustainability Governance

Sustainability
GovernancePT Vale Indonesia Tbk’s sustainable
operations are supported by acommitment to implementing
sustainable governance guided by
the principles of Good Corporate
Governance (GCG). Consistent
application of sustainable governancecreates sustainable value forstakeholders, both in the short andlong term. We require the Board ofCommissioners, Board of Directors,
company officials, employees, andrelated parties to prioritize legal
compliance based on businessethics, ensuring that all actions arecarried out with full responsibility,
honesty, confidence, respect, loyalty,
and integrity. The Company has
never incurred fines or other legal
sanctions from authorities related
to compliance violations. [2-27]

72

Sustainability Report 2023

Sustainability Governance

Sustainability
Governance Structure
The sustainability governance of PT Vale refers togovernance in accordance with Law No. 40 of 2007
concerning Limited Liability Companies, consistingof the General Meeting of Shareholders (GMS) as thehighest governance body, the Board of Directors as theCompany’s executives, and the Board of Commissioners
as overseers assisted by committees. The nomination
and appointment of the Board of Directors and Boardof Commissioners are the authority of the Shareholders
and are ratified in the GMS. We ensure there are no
conflicts of interest among the Directors, Board ofCommissioners, or Shareholders that could influence any
decisions made. Information regarding these matters isdisclosed in the 2023 Annual Report of PT Vale Indonesia
Tbk. [2-9][2-10][2-15]
The Board of Directors implements sustainability
governance guided by Vale’s 2030 Commitment, andstructured as Key Performance Indicators (KPIs) covering
economic, environmental, social, and governanceaspects. Achievement of KPIs is evaluated periodicallyand reported to shareholders. [POJK51-E.1] [2-11][2-12]

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Sustainability Report 2023

Sustainability Governance

The Board of Directors may delegate their authority in the implementationof sustainability governance to company officials according to theirrespective responsibilities. Regarding sustainability performance,
it is managed by relevant Functions, such as External Relations,
Energy & Logistics, Environment & Permit Management, People &Culture, Communications, Corporate Affairs, Health Safety & Risk,
Compliance & Ethics, and ESG Departments. Periodically, appointed
company officials provide reports to the Board of Directors. [2-13]

Remuneration and
Performance Evaluation
Remuneration of the Board of Commissioners and Directors is determinedby the Shareholders through the GMS, taking into account the Company’s
performance, including sustainability management. Shareholders are thesole stakeholders involved in the process of setting remuneration for the
Board of Commissioners and Directors. Information disclosure regarding
the remuneration of Directors and the Board of Commissioners, including
the annual remuneration ratio, is provided in the 2023 Annual Report of PT
Vale Indonesia Tbk. [2-19][2-20] [2-21]
Performance evaluation is conducted through the assessment of theCompany’s performance during the current period and the achievementof KPI targets. Evaluations are carried out in meetings of the Board ofCommissioners and Directors. The final evaluation results are presented to
the Shareholders at the GMS. PT Vale also evaluates the performance ofsustainability governance conducted by third parties, one of them, PT Valeis included in the SRI KEHATI index. [2-18]

74

Sustainability Report 2023

Sustainability Governance

Sustainability Risk Management Evaluation

support from operational functions in management, namely Risk

IGP Morowali
Environmental Impact
Assessment Development

Management, Line Management, and Internal Audit, it is overseen byDuring the reporting period, PT Vale continued discussions on thethe Board of Commissioners with assistance from the Risk Mitigation

Environmental Impact Analysis (AMDAL) Document for the Nickel Ore

Committee. Evaluation of risk management implementation is

Production Operation Plan in Block 2 and Block 3 Bahodopi. The agenda

conducted through meetings of the Board of Directors and theof the discussions included meetings of the AMDAL Commission and theBoard of Commissioners. Based on the evaluation results of 2022, it

Environmental Management Plan (RKL), as well as the Environmental

is known that the management of sustainability performance risks is

Monitoring Plan (RPL). The meeting was attended by the Central AMDAL

effectively executed.

Assessment Team from the Directorate General of Environmental

Risk management of sustainability performance is performed by
implementing a risk management system using the ISO 31000:2018
and ISO 55001:2014 frameworks and COSO-ERM on Risk andAsset Management. The Board of Directors manages risk with

In implementing risk management, PT Vale always involves thecommunity in the initial stages of all work activities. that PT Valeconducts all operational activities responsibly, taking into accountcommunity aspects. [EM-MM-210b.2]

Impact Prevention of Business and Activity of the Ministry ofEnvironment and Forestry, local government agencies (OPD) of Central
Sulawesi Province, and PT Vale management. During the meeting, the
AMDAL Commission assessed that the AMDAL Document preparedby PT Vale is very comprehensive and addresses all aspects. [2-26]

Improving Sustainability Knowledge
Throughout 2023, PT Vale included the Board of Directors in various
activities to improve their knowledge regarding sustainability
governance implementation. Some of the activities included
participation in Sustainability Action for The Future Economy 2023
and The Climate Change Conference COP28. On several occasions,
the Board of Directors also had the opportunity to be speakers at
sustainability-themed events, namely:

75[POJK51-E.3]

Sustainability Report 2023

[POJK51-E.2] [2-17]• CNBC Indonesia Nickel Conference 2023: Nickel & Battery Supply
Chain Sustainability• Indika Energy Summit 2023: Corporate Sustainability, Indonesia
Sustainability Forum (ISF) - Sustainable Mining of Critical Minerals
to Bolster Decarbonization• Sustainable Mining & The Energy Transition, Speaker on Indonesia
Millennial and Gen Z Summit 2023: Symphony of Sustainability:
Empowering Transformation with ESG Strategies

Sustainability Governance

Code of Conduct Compliance and Whistleblowing Chanels
PT Vale has and implements a Code of

We guarantee confidentiality, independence,

Conduct (CoC) to support the implementation

neutrality, and immunity in handling,of sustainability governance. Every year, weinvestigating, and storing information

held Code of Conduct socialization sessions

received through the VWC. PT Vale ensures

for all parties internally and externallythat under any circumstances, there will be

associated with PT Vale. Socialization

no breaches of confidentiality, intimidation,

activities carried out in 2023 include:

or retaliation against the reporter and no• Ethics & Compliance, Anti-bribery andcorruption Training for all employees.

tolerance for retaliatory actions. Retaliatory• Anti-bribery & corruption socialization for
all employees and leaders.

employees are encouraged to report any cases• Whistleblowing channel socialization
through posters, banners, and e-flyers forall employees.

In 2023, the VWC received 32 reports of• Online training on the code of conduct for
all PT Vale employees.

fraud, conflicts of interest, interpersonal

Violation Reporting Facilities Through VWC

Telephone
0 800 100 2233

Emailvwc@tipoffs.info

Websitehttps://idn.deloitte-halo.com/
valewhistleblowerchannel/?Pg=4

Airmail Address

SMS+62 812 80400622

actions are considered misconduct. Allof retaliation. [2-16]

alleged violations submitted through the
VWC. Issues that can be reported include
relationships, relationships with third parties,
health and safety, and the environment. Of

Fax+62 21 2993 8456

Vale Whistleblower Channel
PO Box 3035 JKP 10030

Violation Reporting Handled
Through VWC [2-16]

Percentage of Valid Allegations
Confirmed After Investigation (%)

To support the implementation of the Codethe 32 reports received by the VWC, 30 orof Conduct (CoC), the Company provides a

94% were categorized as valid and followed

reporting channel for CoC violations: the Valeup with investigations while maintaining

Whistleblower Channel (VWC), accessible

confidentiality and protecting the reporter.

24/7 by suppliers, consumers, and other third

Violation reports included in the VWC are

parties. The VWC is connected to Vale S.A.’sreported to the CEO of PT Vale Indonesia

Ethics and Behavior Code Department and is

every three months through a meeting. The

independently managed by a whistleblowing

most investigated violations were related

service provider in Indonesia. Several channels

to interpersonal relationships and fraud. In

are available for reporting corruption,

addition to reports received by the VWC,

conflicts of interest, discrimination, and otherseveral cases of employee violations wereperceived violations of regulations or theaddressed by the Company as a whole by• Written warnings for 63 employees.

Code of Conduct. [2-16]

imposing sanctions for proven violations,• Termination of employment for one employee.

namely: [2-16]

76

Sustainability Report 2023

[2-17]

Description

2023

2022

2021

Number ofAllegations
Received

32

27

33

Percentage ofValid Allegations

94

74

85

• Written guidance for 33 employees.

Description

2023

2022

2021

Not Proven

27

81

18

Not Determinable

36

5

7

Proven37

1475

Sustainability GovernanceSupporting Anti-Corruption[EM-MM-510a.1] [EM-MM-510a.2]

PT Vale enforces zero tolerance towards

Periodically, PT Vale conducts refresher

corruption, bribery, and/or abuse of power

training on anti-corruption for employees,

for personal gain. We are fully committed

as well as for communities and otherto fostering transparent, accountable,

stakeholders. Anti-corruption training

and integrity-driven relationships with

programs prioritized for employees

the government and other stakeholders.

include those in Procurement, External

PT Vale has also conducted a risk

Relations, Human Resources, andassessment related to corruption andother employees whose work involves

identified risks based on the Corruption

interactions with government agencies

Perceptions Index (CPI) which refers to theor officials. Throughout 2023, we

Vale Global Anti-Corruption Program.

communicated and disseminatedTogether with the law firm Hadiputranto,
Hadinoto & Partners, the Company has
conducted an assessment to identify
corruption risks within PT Vale’s
environment, particularly related to
procurement processes and activities. We
implement e-procurement to minimize
corruption risks and participate incontract management transparency,
including incorporating anti-bribery andanti-corruption clauses into agreements
or contracts with third parties. Anotherapproach is to provide the Global Vale
Anti-Corruption Guidelines on theintranet and offer various channels forstakeholders to report any violations
or indications of corruption.[205-1]

anti-corruption messages via email
blasts and banners to employees,
while the dissemination of the PT Vale
Supplier Code of Conduct Guidelines
has been conducted for 950 suppliers.
Additionally, we organized the following
anti-corruption training: [205-2]• Anti-bribery and corruption
training for new employees.
• Anti-bribery & corruption socialization
for all employees and leaders.
During the reporting period, PT Vale did
not receive any complaints regarding
alleged anti-corruption violations, either
from employees or business partners.
We have also never been involved inany public legal cases related to alleged
corruption involving the Company. [205-3]

77

Sustainability Report 2023

Respect for Property Rights
The Company also respects property rights in its nickel
mining operations, including compliance with legal
frameworks and regulations, as well as respecting rights
and ownership of land. This commitment underscores PT
Vale’s dedication to ethical practices and compliance toensure the protection of property rights in all our activities.

Sustainability GovernanceConstraints andChallenges in Implementing
Sustainability[POJK51-E.5]

Building
the Nation
Together

Economic Value Generated and Distributed

78

Sustainability Report 2023

during 2023 include various perceptions and interests among stakeholders, especiallyregarding environmental and social (human) management. Another challenge is thatmanaging negative impacts requires extensive measurement and documentation.
At the same time, we are limited in applying all calculation methods. The ongoingsolution being pursued is to enhance communication and training, as well as monitor
the recording of calculation data as the basis for performance evaluation.

Nickel Production Cost (US$ per Ton)

Information on the generated and distributed

2023

2022

2021

economic value is presented on a cash basis based

10,08911,4448,430

on the audited Financial Statements. The disclosureof information follows the recommendations of
the GRI Standards, so the figures presented may

Economic Value Generated and Distributed (Thousand US$)differ from the audited Financial Statements.

Description

Throughout 2023, we recorded a Generated

Economic Value Generateds

2023

2022

2021

Economic Value of US$1.3 billion, marking an

Operating Revenue

1,232,263

1,179,452

953,174

6.6% growth from 2022, which reached US$1.2

Other Income

36,576

10,691

2,714

billion. Part of the Generated Economic Value

Total Revenue

1,268,839

1,190,143

955,888

has been distributed to stakeholders. [201-1]

Economic Value Distributed

One factor influencing the economic performance

Operating Costs

550,958

772,065

639,242in 2023 was the production cost control, which

Employee Salaries andAllowances

87,436

91,81984,881amounted to US$10,089 per ton of nickel in

Throughout 2023,
PT Vale recorded positive
performance despite
facing continued economic
slowdowns in several
countries that affected
the demand and pricesof nickel worldwide.

Constraints and challenges faced by the Company in implementing sustainability

matte, lower than in 2022, which was US$11,444

Payments to Capital Providers

60,09300

per ton of nickel in matte. The Company did

Payments to the Government

204,617

178,676

113,090

not receive financial assistance from theCommunity Investments

4,291

4,929

4,992

Indonesian Government. However, following

Total Economic ValueDistributed

907,395

1,047,489

842,205

the share ownership structure, the Government
indirectly holds shares in the Company throughits ownership of MIND.ID, which has been one of
PT Vale’s shareholders since 2020. [201-1][201-4]

Economic Value Retained(Total Economic Value Generated – Total Economic Value Distributed)
Total Economic Value Retained

361,444

142,654

113,683

Sustainability Governance

Production and Sales Target and Realization [POJK51-F.2]
Throughout the reporting period, we encountered the effects

Employee Pension Fundsof climate change in the form of irregular weather conditions,

We include employees in the Defined Contribution Pension Program (PPIP) managed

resulting in weather anomalies that impacted our nickel ore mining

by the Financial Institution Pension Fund (DPLK), the Old Age Guarantee Program,

operations and the shipment of nickel in matte to our buyers.

and the Pension Guarantee Program managed by BPJS Ketenagakerjaan. PPIP is

This, in turn, led to an increase in operational expenses for PT

mandatory for employees who have been working for more than three years. The

Vale. However, despite these challenges, the Company was able

DPLK portion covers 10% of PT Vale and 2% of employees. In 2023, the pension fundto achieve its production targets for both nickel ore and nickel inamounted to AS$52,892,019 an increase from US$51,625,227 in 2022. This amount ismatte, as well as fulfill its sales commitments to customers. [201-2]

sufficient to meet the obligations to 118 retiring employees in 2023. [201-3]

Nickel in Matte Production and Sales Targets and Realizationin 2023 (Tons) [POJK51-F.2]
Description

TargetRealization

Percentage

Production

70,72570,728100.0%

Sales

71,403

71,108

99.6%

Nickel in Matte Production Realization

State Revenue
Contribution and andTax-Related Policies

SOP as an identification reference in monitoring tax risks. PT Vale

Economic value distributed in the form

to the Indonesian government, including central and regional

also supports transparency and contributes to Indonesia’s EITI
reporting. During 2023, there were no incidents of tax violations.
[207-1][207-2] [207-3]

This report only discloses the fulfillment of tax and NTSR obligations

2023

2022

2021

of tax payments and Non-Tax State

governments, considering that PT Vale operates only in Indonesia.

1

2

3

1:2

2:3

Revenue (NTSR) to the Government to the

In 2023, we paid taxes and NTSR to the Government of Indonesia,

Production

70.72860.09065.38817,7-8.1

Government is paid based on the prevailingamounting to US$204,617 thousand. This amount increased by 14.3%

Sales

71.10860.96066.61516,7-8,5

tax regulations in Indonesia. The policy,

from 2022, reaching US$179,020 thousand. [207-4]

DescriptionΔ%management, and supervision of taxes andRealization of Nickel in Matte Sales to Buyers (Cobalt)
Buyer

2023

2022

NTSR by the Company are the responsibility

2021

Ton

%

Ton

%

Ton

%

Vale Canada
Limited (VCL)

56,88780

49,67081

53,26580

Sumitomo Metal
Mining Co,LTd

14,221

20

11,29019

13,35020

Total

71,108100

60,960100

66,615100of the Finance Department and areoverseen by the Finance Directorate.
They are then reported to Vale Canada
to the Vice President of Tax Base Metal
and Vale Brazil. Reporting is conductedmonthly and quarterly. We coordinate
and consult with the local Tax Service
Office to ensure compliance with tax
obligations and taxpayers, both corporate
and individual. PT Vale has a Taxation

79

Sustainability Report 2023

The Government appreciates PT Vale’s contribution to state revenue
through taxes. Appreciation was given by the Regional Office(Kanwil) of the Directorate General of Taxes (DJP) for South, West,and Southeast Sulawesi for the category of corporate taxpayerswith the highest VAT and income tax contributions throughout 2022.
Over the past two years (2021-2022), PT Vale has paid local taxes
amounting to US$50 million or equivalent to Rp700 billion, assuming
an exchange rate of around Rp14,000. If accumulated from 2011 to2022, the Company’s contribution to local taxes has reached US$235
million or equivalent to Rp3.3 trillion. This figure includes water levy
fees, which amounted to US$18 million or approximately Rp278 billion
in 2021-2022.

Sustainability GovernanceTax Components Paid by PT Vale (Thousand US$)PT Vale’s Obligatory Payments to the Central and Regional
Governments (Thousand US$) [207-4]

Tax Component

2023

2022

2021

Description

2023

2022

2021

Value Added Tax

6,532

1,452

1,242

Central Government

174,051

151,646

120,126

Land and Building Tax

3,121

2,401

2,340

South Sulawesi Pronvicial
Government

14,084

14,331

9,968

Employee Income Tax

14,34012,22910,859

East Luwu Regency
Government

15,995

Corporate Income Tax

91,61879,58867,720Regional Taxes, Levies,
and Grants

30,56527,37823,604

Third Party
Withholding Tax

12,409

5,452

8,086

Duties

4,603

3,756

4,695

163,189

132,256

118,544

13,031

13,623

Southeast Sulawesi
Provincial Government

1810

Kolaka Regency
Government

1

0

0

Central Sulawesi Provincial
Government

19

6

7

Total

Morowali Regency
Government

449

0

0

204,617

179,024

143,730

Non-Tax State Revenue (NTSR) Components Paid to theGovernment (Thousand US$)

Total

6

PT Vale’s Taxes and Non-Tax State Revenue (NTSR) Payments(Thousand US$)NTSR Component

2023

2022

2021

Production Royalties

33,99035,614

19,187

2023

2022

2021

Land Rent for Contract ofWork Areas

496

496

Tax Payments

163,189

132,256

118,544

Other NTSR

6,941

10,658

5,494

NTSR Payments

41,427

46,76825,185

Total

41,427

46,76825,185

Total Tax and NTSR
Payments

204,617

179,024

143,730

Description

80

Sustainability Report 2023

504

In line with our commitment
to sustainable governance,
the Company has a policy
to prohibit any form ofcontribution to politicalactivities, both directly
and indirectly. We also do
not allow the use of PT
Vale’s facilities or assets forpolitical activities. [415-1]

Sustainability Governance

Customer
Equality

Influence
Towards Communities

Based on a long-term contract thatIn 2023 PT Vale provides pro bono indirect

In 2022, the Company conducted a

has been agreed upon, PT Vale sells its

benefits to local communities through thecommunity satisfaction index (SMI)

nickel in matte products to Vale Canada

utilization of infrastructure built for the

study related to PT Vale’s business to

Limited (VCL) with a sales percentage

Company’s operational purposes: [203-1]

encourage the growth of other economic[POJK51-F.17]

of 80% and Sumitomo Metal Mining
Co. Ltd (SMM) with 20%. This market
certainty ensures that we are not facedwith market competition from similarbusinesses. We provide equal services
to buyers, among others, in setting theselling price of nickel with reference tothe London Metal Exchange and cobalt
with reference to Fastmarket. [206-1]• Provision of clean water facilities in
Mahalona Village as part of the support
for the Mahalona Block 1 Bridgeof job opportunities in local companies• The SMI study (2022) on the MSME
sector in 4 sub-districts within PT
Vale’s empowerment areas received ascore of 2.8, equivalent to a conversion
value of 70.83% satisfaction of
respondents with programs that
promote economic growth.
employ 12,000-15,000 workers. They
will receive wages that can be spent tomeet living needs, thus bringing abouta ripple effect on the local economy.

that act as contractors/suppliers in

As of December 31, 2023, there are 374

the Company’s supply chain. Local

local companies involved in PT Vale’s

companies are defined as businesses

supply chain, accounting for 16.6% of

located and/or operating in PT Vale’s

the total number of vendors/suppliers.

operational areas, namely East Luwu

Some of them serve as vendors/

Regency (Sorowako Block), Morowali

suppliers for development projects inRegency (Bahodopi Block), and Kolaka

Bahodopi and Pomalaa. [203-2][204-1]

Regency (Pomalaa Block). The ongoing
construction work is expected to

Sustainability Report 2023

with the following results: [203-2][204-1]• Construction of bridges in several
operational areas, including in Loeha
Village, to support exploration and theneeds of the surrounding community

Another indirect benefit is the availability

81

sectors. The study was published in 2023,• Road access improvementin Loeha Village• For the agriculture and sustainablefisheries development program,the study received a score of 3.0,
equivalent to a conversion value of
75% satisfaction of respondents
with the program’s achievement
in improving the economic statusof beneficiary communities.
• Overall, the CSR program
received a score of 3.0, equivalent
to a conversion value of 74%
satisfaction of respondents withthe company’s business operationsin promoting the economic
growth of the local community.

Sustainability GovernanceSupplier Engagement Proportion [204-1]
Description

2023

2022

2021

Total

%

Total

%

Total

%

Local
Suppliers

158

17

301

11

295

28

National
Suppliers

629

66

2,051

74

560

54

International
Suppliers

163

17

432

64

183

18

Total

950

100

2,784

100

1,038

100

*Suppliers who passed the prequalification and have a contract with PT Vale

Procurement Contract Value by Supplier (US$) [204-1]
Description

2023

2022

2021

Total

%

Total

%

Total

%

Local
Suppliers

64.235,520

59.461.222

16

39.185.111

10

National
Suppliers170.368,053

241.641.501

64265.305.103

69

International
Suppliers

86.796,427

78.339.538

21

77.377.305

20

Total

321.399,9100

379.442.262

100

381.867.519

100

In 2023, there were 17% or 158 local suppliers. During the pre-qualification process, PT Valeconducted assessments to ensure that suppliers met the established ESG standards and criteria.

82

Sustainability Report 2023

Sustainability Governance

Stakeholder Engagement
Stakeholder engagement is based on fulfilling the needs of each stakeholder through various forums and mechanisms.
Stakeholder Engagement [POJK51-E.4][2-29]

Stakeholder

Basis for Identificaton

Topic of Discussion

Approach and Response

Frequency

Communication policy andsocial management
system.

• Economic performance and• Drafting the Company’s long-term plan.
• Streamlining and optimizing production and sales.
• Putting health protocols in place.
• Implementing the Vale Production System (VPS),• Periodic (quarterly, semester,• Recruitment by PT Vale or through a contractor.
• Inter-Village Cooperation Forum (BKAD) to• Recruitment as needed.
• The forum convenes at the beginning,

Internal• Employees• Company Leaders• Contractors

business development.
• Occupational health and safety(OHS) management, and COVID-19
pandemic handling.
• Environmental management.
• Strengthening local suppliers’
capacity and increasing theshare of local components.

annual) performance reports• Periodic evaluation as needed.

the Contractor Safety Management System(CSMS), and getting certified in occupational heathand safety and environmental management.
• Adopting the Promote National Interest (PNI)
and the Local Business Initiative (LBI).

External• Communities• Formal Leaders• Informal Leaders

Communication policy
and social management
system.

• Recruitment of local workers• Community empowerment• Government andCommunication
policy andsocial management
system.

• Regulatory compliance and licensing.
• Contributions to the state and regions.
• Asset protection.
• Corporate Performance.

• The Company plans to change its Work Contract,• Communication on and discussion of• The Media• Academicians• NGOs• Other Entities

Communication
policy and social
management system.

• Transparency and easy

• Publication and delivery of public information throughAs needed

Local
Communities

Communication policy andsocial management
system.

Respect for and fulfilment ofcustomary rights, and local wisdom

Fostering dialogue and communications with local
communities through various meetings and forums

As needed

Private Sector• Central and Local• Governments• Military and Police• Investors• Customers• Suppliers and Partners• Public Sector

83

Sustainability Report 2023

(local communities).

access to information.
• Consultations, research,and cooperation.

discuss, plan, and evaluate integrated community
empowerment and development programs..

which will end on December 28, 2025, to a Mining
Business Permit or Special Mining Business Permit.
• Fulfilling the obligation of paying taxes and non-tax
state revenue in a total amount of U$178,676
thousand in 2022.
• Security coordination and cooperation with theMilitary and Police.
• Financial, environmental, social, and governanceperformance reporting.

in the middle, and at the end of
the year, and as needed.

the Mining Business Permit or Special
Mining Business Permit are done all thetime with the authorities. Timely tax
and non-tax state revenue payment.
• PT Vale regularly coordinates with theprovincial police of South Sulawesi,
the provincial police of Southeast
Sulawesi, and the Military Command XIV
Hasanuddin in security cooperation.
• Quarterly, semester, and annual
performance reporting.

press conferences, news release, and public exposés.
• Research and Corporate Social
Responsibility (CSR) cooperation

Sustainability Governance

Responsibility for Product/Service Development
Product Safety
and Impact
Management[POJK51-F.27][POJK51-F.28]

PT Vale’s production process and nickel inmatte products have met the Restrictionof Hazardous Substances (RoHS) and ISO
17025:2008 standards, which are European
Union market standards. They havealso undergone assessment for mining
product hazards according to the Globally
Harmonized System of Classification andLabelling of Chemicals (GHS), adopted by
the United Nations (UN) and implemented
in Indonesia through Minister of Industry
Regulation No. 23 of 2013, amending
Minister of Industry Regulation No.
87/M-IND/PER/9/2009 on the Globally
Harmonized System of Classification andLabelling of Chemicals. Nickel in matteis an intermediate product used as araw material by buyers in subsequent

Product Recall and Customer
Satisfaction [POJK51-F.29][POJK51-F.30]
Throughout 2023, there were no productrecalls requested by buyers. Shipping of
nickel in matte to customers was conductedusing specialized packaging weighing 3.3
tons. The outer packaging was equippedwith labels containing information about
the origin and product specifications, aswell as handling instructions. We assessed
compliance with labeling procedures for all
received from buyers regarding information

Data and Digital Information
Security

discrepancies on the labels. During 2023,

PT Vale ensures that all digital data and(100%) products, and no complaints were

PT Vale did not incur fines or any otherlegal sanctions related to alleged noncompliance with marketing communication

processes. Thus, it does not directly

provisions. [417-1][417-2][417-3]

impact buyers or the environment. There

We remain committed to maintaining

have been no complaints about the
product’s impact on the health and safetyof employees, workers, or buyers during
the reporting period. [416-1][416-2]

product quality and service for ourcustomers. Since customers make productpurchases under long-term contracts,
we do not conduct customer satisfaction
surveys. However, PT Vale and customers
routinely hold monthly meetings to address
and resolve any issues that may arise.

84

Sustainability Report 2023

information, including sensitive company
data, are securely stored, both forbuyers and employees. We implement
buyer data security systems to protect
against data damage, modification, andunauthorized dissemination. Data anddigital information stored by the company
can only be accessed by authorized parties
designated by management. Throughout
2023, there were no reports of data
damage, modification, or unauthorized
dissemination (leakage) reported by either
buyers or employees. [418-1]

Sustainability Governance

Product/Service
Innovation andDevelopment[POJK51-F.26]

During the reporting period, PT
Vale worked to develop nickel inmatte products. In the coming
years we will develop high-quality
nickel products that support theenergy transition, namely:· Mixed Hydroxide Precipitate (MHP)
will be produced from the nickel
limonite refining and processing
plant at the Sorowako Limonite
Project and from IGP Pomalaa. MHP
production will commence in 2026,
with a projected total capacity of
60 kilotons per year in Sorowako
and 120,000 tons in Pomalaa.

The 6,969-meter
Larona Canal, oneof the supporting
facilities of our LaronaHydropower Plant.

85

Sustainability Report 2023

· Nickel in ferronickel, produced
from the nickel ore processing
plant at IGP Morowali, which willcommence production startingin 2025. The total production
capacity is expected to reach 73-80
kilotons of ferronickel per year.

Sustainability GovernanceSupport for the SDGs
and Sustainable MineManagement

Through membership and sustainable initiatives with the Indonesia
Business Council for Sustainable Development (IBCSD), PT Valeactively contributes to designing business documents to support the
Sustainable Development Goals (SDGs). We focus on ten goals alignedwith the SDG Indicator Metadata from the Ministry of National
Development Planning.

Ministry of National Development Planning/Bappenas Metadata

PT Vale’s Support

SDG

TargetIndicator

TargetStrategy

Ensure sustainable food production
systems and implement resilient
agricultural practices that increase
productivity and production, that
help maintain ecosystems, thatstrengthen capacity for adaptation
to climate change, extreme weather,drought, flooding and otherdisasters and that progressively
improve land and soil quality.

Proportion of agriculturalarea under productive andsustainable agriculture

Eco-friendly sustainableagriculture, which promotes
good agricultural practices,maintains ecologicalbalance, and avoids the useof pesticides or chemicalfertilizers that can damage
soil structure and fertility
as well as the food chain.

Establishing an integrated
farming zone in Towuti
Sub-district.

In 2023, PT Vale’s support in
integrated farming areas included
the construction and rehabilitationof village irrigation networks in 5
villages, totaling 1,088.3 meters,with a budget of Rp1,498,791,000.

Achieve universal health coverage,
including financial risk protection,access to quality essential healthcare
services and access to safe, effective,
quality and affordable essential
medicines and vaccines for all.

Coverage of essential
health services.

Workers’ participationin BPJS Kesehatan.

Making participation in BPJS
Kesehatan compulsory for PT
Vale’s employees,and encouraging
contractors, work partners,and vendors to register theirworkers with BPJS Kesehatan.

• Achieved 100% participation in BPJS

End all forms of discrimination against
all women and girls everywhere.

Whether or not legal frameworks
are in place to promote, enforce
and monitor equality and nondiscrimination on the basis of sex.

• Implementing the• Conducted DEI Charter• Recruiting more female• Increased the proportion of female

An increase in the numberof female employees andemployees with disability.

Diversity, Equity andInclusion (DEI) Charter.
employees and employeeswith disability, taking
into account the type ofwork to be undertaken.

86

Achievements

Sustainability Report 2023

Kesehatan for PT Vale employees.

• Achieved 100% participation in

BPJS Kesehatan for contractor
workers, partners, and vendors.

socialization for employees
and other stakeholders.
employees to 10.2% in 2023.

• Increased the proportion of disabled
employees to 0.1% in 2023.

Sustainability Governance

Ministry of National Development Planning/Bappenas Metadata

PT Vale’s Support

SDG

Target87

Indicator

TargetStrategy

Achievements

Expand infrastructure and upgrade
technology for supplying modern andsustainable energy services for all indeveloping countries, in particular
least developed countries, small island
developing States, and land-locked
developing countries, in accordance with
their respective programmes of support.

Installed renewable energy
generating capacity in developing
countries (in watts per capita).

Renewable energy for PT
Vale’s operations with 100%
clean energy generationto achieve self-generated
energy by 2030.

Optimizing clean energy,
power stabilization, waste
heat utilization, solar power
utilization, and fuel conversion.

Utilized renewable energy from threehydropower plants to meet 36%
of operational electricity needs.

Ensure equal opportunity and reduce
inequalities of outcome, including
by eliminating discriminatory
laws, policies and practices andpromoting appropriate legislation,
policies and action in this regard.

Proportion of human rights
allegations handled.

Raised awareness of humanrights, including gender
diversity andinclusivenessamong leaders (supervisors• Conducting awareness-raisingand above) and employees.

people through the integrated
community empowerment
and development program.

Preserved local culture throughcollaboration with the Mekongga
local communities, including theconstruction of a pavilion in the
Mekongga king’s tomb area tosupport traditional activities.

Significantly reduce the number ofdeaths and thenumber of people
affected and substantially decreasethe
direct economic losses relative toglobal grossdomestic product causedby disasters, includingwater-related
disasters, with a focus on protectingthe
poor and people in vulnerable situations.

Number of deaths, missing
persons and directly affected
persons attributed to disasters
per 100,000 population.

To be part of an effort toaccelerate the recovery ofdisaster-affected areas.

Encourage companies, especiallylarge and transnational companies,
to adopt sustainable practices and tointegrate sustainability information
into their reporting cycle.

• Number of companies publishing• Sustainability reports• Number of companies having• ISO 14001:2015

Support developing countries tostrengthen their scientific andtechnological capacity to movetowards more sustainable patternsof consumption and production

Installed renewableenergygenerating capacity
in developing countries(in watts per capita)

Sustainability Report 2023

sustainability reports

ISO 14001 certification.

are published regularly.
certification on
the Environmental
Management System

Renewable energy for PT
Vale’s operations with 100%
clean energy generationto achieve self-generated
energy by 2030.

campaigns and training on
human rights for employees.

• Empowering indigenous

Sending an emergency
response team to disasterareas, and distributing
aid to disaster-affected areas.

Provided humanitarian assistance,
including building materials, forpost-fire market rehabilitation in
Mahalona Village, Towuti Sub-district.

• Standardizing reporting• Published Sustainability

according to GRI and POJK
No.51/POJK.03/2017.

• Assessing ISO 14001:2015
periodically

Optimizing clean energy,
power stabilization, waste
heat utilization, solar power
utilization, and fuel conversion.

Reports annually since 2011.

• Conducted ISO 14001:2015
assessments last in 2021,
valid until 2024.

Coordinated with SKK Migas
for liquefied natural gas (LNG)
supply to meet smelter needs in
Bahodopi, Central Sulawesi.

Sustainability Governance

Ministry of National Development Planning/Bappenas Metadata

PT Vale’s Support

SDG

TargetIntegrate climate change measures into
national policies, strategies
and planning.

Indicator• Inventoried greenhouse gas(GHG), and GHG emission
monitoring, reporting andverification are reported in the
Biennial Update Report (BUR)
and National Communications.

• Total GHG emission per year,

potential GHG emission
reductions, and potentiallyreduced GHG emission intensity.

Substantially reduce corruption
and bribery in all their forms.

Anti-corruption Behavior Index

Target• Toward low-carbon

and carbon-neutral
operations by 2050.

• 33% GHG emission

reductions by 2030.

Strategy

Achievements• Optimizing energy consumption• Reduced greenhouse gas emission

in the supply chain, replacing
fuel with lower carbon fuel,electrifying heavy mining
and supporting equipment.

• 100% clean energy• Converting fossil fuels into

Raised ethical awarenessand continuous
improvement• Campaigning for and conducting

production to achieve selfgenerated energy by 2030.

intensity by 1.09% Ton CO₂eq /Ton Ni from the previous year.

renewable energy sources,
rehabilitating preminedareas, and conducting
transboundary reforestation.
training on anti-corruption
and ethics & conduct.

• Providing the Vale

Whistleblowing Channel
for voicing allegations andcomplaints on bribery,
blackmail, and nepotism.

Conducted the following activities:• Ethics & Compliance, Anti-bribery and corruption training
for new employees.

• Anti-bribery & corruptionsocialization for all
employees and leaders.

• Whistleblowing channelawareness through posters,
banners, and e-flyers.

• Online code of conduct training
for all PT Vale employees.

Strengthen domestic resource
mobilization, including throughinternational support to developing
countries, to improve domestic capacity
for tax and other revenue collection.

88

Sustainability Report 2023

Proportion of domestic budget
funded by domestic taxes.

Direct and indirectcontributions to local
governments.

Taxes and non-state tax
revenues paid to the regency
government of East Luwu include
locally-generated revenues,
transfer revenues, and other
legitimate regional revenues.

Total tax and NTSR payments
to the East Luwu Regency
Government in 2023 amounted
to US$15,995 thousand.

Appendix

Appendix
List of Protected Species Under the IUCN Red List [304-4][MM1]

List of Protected Species Under the IUCN Red List [304-4][MM1]Local Name

Species Name

Protection Status

Local Name

Species Name

Protection Status

Monyet Digo

Macaca ochreata

Vulnerable

AgathisAgathis dammara

Vulnerable

Rusa Timor

Rusa timorensis

Vulnerable

Eboni

Diospyros celebica

Vulnerable

Garcinia celebica

-

Anoa

Bubalus sp.

Endangered

Manggis Hutan

Babi Hutan

Sus celebensis

Near threatened

Jambu-jambu

Kjelbergiodendron celebicum-

Lithocarpus celebicus

Least Concern

Cabai Panggul Kelabu

Dicaeum celebicum

Least Concern

Kayu asa

Cabai Panggul Kuning

Dicaeum aureolimbatum

Least Concern

Buri

Weinmannia devogelii-

Elang Bondol

Haliastur indus

Least Concern

Angsana

Dillenia serrata

Least Concern

Pterospermum celebicum

Least Concern

Elang Alap Kecil

Accipiter nanus

Near threatened

Bayur

Elang Alap Nipon

Accipiter gularis

Least Concern

Belimbing Majo

Sarcotheca celebica-

Pterocarpus indicus

Endangered

Elang Hitam

Ictinaetus malayensis

Least Concern

CenranaAlap-alap Sapi

Falco moluccensis

Least Concern

Kantong Semar Maksimum

Nepenthes maxima-

Elang Alap Ekor Totol

Accipiter trinotatus

Least Concern

Kantong Semar Bersungut

Nepenthes tentaculata

Least Concern

Nepenthes petiolata

Vulnerable

Elang Ular Sulawesi

Spilornis rufipectus

Least Concern

Kantong Semar

Elang Tiram

Pandion haliaetus

Least Concern

Belulang

Stemonurs celebicus-

Deplanchea bancana

Least Concern

Kadalan Sulawesi

Rhamphococcyx calyorhynchus

Least Concern

Lokomomo

Tiong Lampu Sulawesi

Coracias temminckii

Least Concern

Kayu Mata Kucing

Hopea celebica

Vurnerable

Kepudang Sungu Biru

Coracina temminckii

Least Concern

DengenDillenia serrata

Least Concern

Manilkara fasciculata

Vurnerable

Knema matanesis

Least Concern

Udang Merah Sulawesi

Ceyx fallax

Near threatened

Kumea

Pelatuk Kelabu Sulawesi

Mulleripicus fulvus

Least Concern

Knema

Julang Sulawesi

Rhyticeros cassidix

Vulnerable

Kangkareng Sulawesi

Rhabdotorrhinus exarhatus

Vulnerable

Serindit Sulawesi

Loriculus stigmatus

Least Concern

Kring-Kring Bukit

Prioniturus platurus

Least Concern

Raja Perling Sulawesi

Basilornis celebensis

Least Concern

Maleo Senkawor

Macrocephalon maleo

Endangered

89

Sustainability Report 2023

Independent Assurance Statement

Independent Assurance Statement/ŶĚĞƉĞŶĚĞŶƚƐƐƵƌĂŶĐĞ^ƚĂƚĞŵĞŶƚdŚĞϮϬϮϯ^ƵƐƚĂŝŶĂďŝůŝƚǇZĞƉŽƌƚŽĨWdsĂůĞ/ŶĚŽŶĞƐŝĂdďŬEƵŵďĞƌ͗ϭϭͬϬϬϬͲϳϱϴͬ/sͬϮϬϮϰͬ^ZͲƐŝĂͬ/ŶĚŽŶĞƐŝĂƐƐƵƌĂŶĐĞdǇƉĞ͗dǇƉĞϭĂŶĚdǇƉĞϮĨŽƌƚŚĞƐƉĞĐŝĨŝĐƚŽƉŝĐŽĨŵŝƐƐŝŽŶŽŶƚƌŽů͕ŶĞƌŐǇhƐĂŐĞ͕ĂŶĚŝǀĞƌƐŝƚǇĂŶĚƋƵĂůŝƚǇƐƐƵƌĂŶĐĞ>ĞǀĞů͗DŽĚĞƌĂƚĞZĞƉŽƌƚŝŶŐ^ƚĂŶĚĂƌĚ
͗'Z/hŶŝǀĞƌƐĂů^ƚĂŶĚĂƌĚϮϬϮϭŽŶƐŽůŝĚĂƚĞĚ͕'Z/'ϰDŝŶŝŶŐĂŶĚDĞƚĂůƐ;DD^^Ϳ͕ĂŶĚ^^DĞƚĂůƐĂŶĚDŝŶŝŶŐ;DͲDDͿZĞƉŽƌƚŝŶŐZĞŐƵůĂƚŝŽŶ ͗^ƵƐƚĂŝŶĂďůĞ&ŝŶĂŶĐĞZĞŐƵůĂƚŝŽŶWK:<EŽ͘ϱϭͬWK:<͘ϬϯͬϮϬϭϳ;/ŶĚŽŶĞƐŝĂͿĞĂƌƐƚĂŬĞŚŽůĚĞƌƐ͕^ŽĐŝĂůZĞƐƉŽŶƐŝďŝůŝƚǇƐŝĂŽƌ“SRAsia”ŝƐŝƐƐƵŝŶŐĂŶ/ŶĚĞƉĞŶĚĞŶƚƐƐƵƌĂŶĐĞ^ƚĂƚĞŵĞŶƚ(“theStatement”)
ŽĨƚŚĞϮϬϮϯ^ƵƐƚĂŝŶĂďŝůŝƚǇZĞƉŽƌƚ(“the Report”) of WdsĂůĞ/ŶĚŽŶĞƐŝĂdďŬ(“theCompany”). The Company
ŝƐĂĐŽŵƉĂŶǇǁŚŝĐŚŽƉĞƌĂƚĞƐŝŶƚŚĞŵŝŶŝŶŐƐĞĐƚŽƌ͕ƐƉĞĐŝĨŝĐĂůůǇŝŶŝŶƚĞŐƌĂƚĞĚŶŝĐŬĞůƉƌŽĐĞƐƐŝŶŐ͘dŚĞZĞƉŽƌƚƉƌĞƐĞŶƚƐƚŚĞĐŽŵŵŝƚŵĞŶƚĂŶĚĞĨĨŽƌƚƐŽĨƚŚĞŽŵƉĂŶǇŝŶŵĂŶĂŐŝŶŐŝƚƐƐƵƐƚĂŝŶĂďŝůŝƚǇƉĞƌĨŽƌŵĂŶĐĞĨŽƌƚŚĞƌĞƉŽƌƚŝŶŐ ƉĞƌŝŽĚ ŽĨ :ĂŶƵĂƌǇ ϭƐƚ ƚŽ ĞĐĞŵďĞƌ ϯϭƐƚ͕ ϮϬϮϯ͘ Ɛ ĂŐƌĞĞĚ ǁŝƚŚ DĂŶĂŐĞŵĞŶƚ͕ ^Z Asia’sƌĞƐƉŽŶƐŝďŝůŝƚǇŝƐƚŽŵĂŬĞĂŶĂƐƐĞƐƐŵĞŶƚďĂƐĞĚŽŶƚŚĞĚĂƚĂĂŶĚĐŽŶƚĞŶƚŽĨƚŚĞZĞƉŽƌƚĨŽƌƚŚĞǇĞĂƌ͘/ŶƚĞŶĚĞĚhƐĞƌĂŶĚWƵƌƉŽƐĞdŚĞ ƉƵƌƉŽƐĞ ŽĨ ƚŚĞ ^ƚĂƚĞŵĞŶƚ ŝƐ ƚŽ ƉƌĞƐĞŶƚ ŽƵƌ ŽƉŝŶŝŽŶ ŝŶĐůƵĚŝŶŐ ƚŚĞ ĨŝŶĚŝŶŐƐ ĂŶĚ ƌĞĐŽŵŵĞŶĚĂƚŝŽŶƐ
based on the results of assurance work to the Company’s stakeholders. The Assurance Team inĂĐĐŽƌĚĂŶĐĞǁŝƚŚƐƉĞĐŝĨŝĐƉƌŽĐĞĚƵƌĞƐĂŶĚĂƐƉĞĐŝĨŝĐƐĐŽƉĞŽĨǁŽƌŬĐĂƌƌŝĞĚŽƵƚƚŚĞĂƐƐĞƐƐŵĞŶƚ͘ǆĐĞƉƚĨŽƌƚŚĞĂƌĞĂƐĐŽǀĞƌĞĚŝŶƚŚĞƐĐŽƉĞŽĨƚŚĞĂƐƐƵƌĂŶĐĞ͕ǁĞĞŶĐŽƵƌĂŐĞĂůůEKdƚŽƐŽůĞůǇŝŶƚĞƌƉƌĞƚƚŚĞ^ƚĂƚĞŵĞŶƚĂƐƚŚĞďĂƐŝƐƚŽĐŽŶĐůƵĚĞƚŚĞCompany’sŽǀĞƌĂůůƐƵƐƚĂŝŶĂďŝůŝƚǇƉĞƌĨŽƌŵĂŶĐĞ͘ZĞƐƉŽŶƐŝďŝůŝƚŝĞƐKƵƌƌĞƐƉŽŶƐŝďŝůŝƚŝĞƐƚŽƚŚĞDĂŶĂŐĞŵĞŶƚĂƌĞƚŽĞǀĂůƵĂƚĞƚŚĞZĞƉŽƌƚĐŽŶƚĞŶƚ͕ĐŽŵĞƵƉǁŝƚŚĨŝŶĚŝŶŐƐĂŶĚƌĞĐŽŵŵĞŶĚĂƚŝŽŶƐ͕ĂŶĚŝƐƐƵĞƚŚĞ^ƚĂƚĞŵĞŶƚ͘tĞĂƌĞĂůƐŽƌĞƐƉŽŶƐŝďůĞĨŽƌĐŽŵŝŶŐƵƉǁŝƚŚĐŽŶĐůƵƐŝŽŶƐĂŶĚƌĞĐŽŵŵĞŶĚĂƚŝŽŶƐ ďĂƐĞĚ ŽŶ ƚŚĞ ĂŐƌĞĞĚ ƐƚĂŶĚĂƌĚƐ͕ ŵĞƚŚŽĚƐ͕ ĂŶĚ ĂƉƉƌŽĂĐŚĞƐ͘ ,ĞŶĐĞ͕ ^Z ƐŝĂ ŝƐ ŽŶůǇĞǀĂůƵĂƚĞĚĨŽƌƚŚĞůĂƚĞƐƚƌĞĐĞŝǀĞĚĞĚŝƚŽƌŝĂůĂŶĚĚĂƚĂŽŶƚŚĞĨŝŶĂůĚƌĂĨƚĂƐŽĨƉƌŝůϭϱƚŚ͕ϮϬϮϰ͘^ZƐŝĂŝƐŽŶůǇƌĞƐƉŽŶƐŝďůĞĨŽƌĚĞůŝǀĞƌŝŶŐĂƐƐƵƌĂŶĐĞǁŽƌŬ͕EKdĂŶĂƵĚŝƚ͕ďǇĨŽůůŽǁŝŶŐƚŚĞEŽŶͲŝƐĐůŽƐƵƌĞŐƌĞĞŵĞŶƚ͕ƚŚĞƐƐƵƌĂŶĐĞ ŶŐĂŐĞŵĞŶƚ ŐƌĞĞŵĞŶƚ͕ ZĞƉƌĞƐĞŶƚĂƚŝŽŶ >ĞƚƚĞƌ͕ ĂŶĚ ^ƵďƐĞƋƵĞŶƚ ǀĞŶƚ dĞƐƚŝŶŐ͘ dŚĞDĂŶĂŐĞŵĞŶƚŚĂƐŝƚƐƐŽůĞƌĞƐƉŽŶƐŝďŝůŝƚǇĨŽƌƚŚĞƉƌĞƐĞŶƚĂƚŝŽŶŽĨĚĂƚĂ͕ŝŶĨŽƌŵĂƚŝŽŶ͕ĂŶĚĚŝƐĐůŽƐƵƌĞƐŝŶƚŚĞZĞƉŽƌƚĐŽŶƚĞŶƚ͘ dŚĞƌĞĨŽƌĞ͕ ĂŶǇ ƉĂƌƚŝĞƐ ǁŚŽ ĚĞƉĞŶĚ ŽŶ ƚŚĞ ZĞƉŽƌƚ ĂŶĚ ƚŚŝƐ ^ƚĂƚĞŵĞŶƚ ƐŚĂůů ďĞĂƌ ĂŶĚŵĂŶĂŐĞƚŚĞŝƌƌŝƐŬƐ͘/ŶĚĞƉĞŶĚĞŶĐĞ͕/ŵƉĂƌƚŝĂůŝƚǇ͕ĂŶĚŽŵƉĞƚĞŶĐǇ^Z ƐŝĂ ĐŽŶĨŝƌŵƐ EK ƌĞůĂƚŝŽŶƐŚŝƉƐ ďĞƚǁĞĞŶ ƚŚĞ ĂƐƐƵƌŽƌ ƚĞĂŵ ĂŶĚ ƚŚĞ ĐůŝĞŶƚƐ ƚŚĂƚ ĐĂŶ ŝŶĨůƵĞŶĐĞ ƚŚĞŝƌŝŶĚĞƉĞŶĚĞŶĐĞĂŶĚŝŵƉĂƌƚŝĂůŝƚǇƚŽĐŽŶĚƵĐƚƚŚĞĂƐƐĞƐƐŵĞŶƚĂŶĚŐĞŶĞƌĂƚĞƚŚĞ^ƚĂƚĞŵĞŶƚƐ͘dŚĞĂƐƐƵƌŽƌƚĞĂŵŝƐŵĂŶĚĂƚĞĚƚŽĨŽůůŽǁĂƉĂƌƚŝĐƵůĂƌĂƐƐƵƌĂŶĐĞƉƌŽƚŽĐŽůĂŶĚƉƌŽĨĞƐƐŝŽŶĂůĞƚŚŝĐĂůĐŽĚĞŽĨĐŽŶĚƵĐƚƚŽĞŶƐƵƌĞƚŚĞŝƌŽďũĞĐƚŝǀŝƚǇĂŶĚŝŶƚĞŐƌŝƚǇ͘tĞĐĂƌƌŝĞĚŽƵƚĂƉƌĞͲĞŶŐĂŐĞŵĞŶƚĂƐƐĞƐƐŵĞŶƚďĞĨŽƌĞƚŚĞĂƐƐƵƌĂŶĐĞǁŽƌŬǁĂƐƚĂŬĞŶƚŽǀĞƌŝĨǇƚŚĞƌŝƐŬƐŽĨĞŶŐĂŐĞŵĞŶƚĂƐǁĞůůĂƐƚŚĞŝŶĚĞƉĞŶĚĞŶĐĞĂŶĚŝŵƉĂƌƚŝĂůŝƚǇŽĨƚŚĞƚĞĂŵ͘dŚĞĂƐƐƵƌŽƌƚĞĂŵŵĞŵďĞƌƐŚĂǀĞŬŶŽǁůĞĚŐĞŽĨ/^KϮϲϬϬϬ͕ϭϬϬϬĐĐŽƵŶƚďŝůŝƚǇƐƚĂŶĚĂƌĚƐĂŶĚƉƌŝŶĐŝƉůĞƐ͕ĂŶĚ ĂůƐŽ ŚĂǀĞ ĞǆƉĞƌŝĞŶĐĞ ŝŶ ƐƵƐƚĂŝŶĂďŝůŝƚǇ ƌĞƉŽƌƚ ĂƐƐĞƐƐŵĞŶƚ ďĂƐĞĚ ŽŶ ǀĂƌŝŽƵƐ ƌĞƉŽƌƚŝŶŐ ƌĞŐƵůĂƚŝŽŶƐ͕ƐƚĂŶĚĂƌĚƐ͕ĂŶĚƉƌŝŶĐŝƉůĞƐ͕ƐƵĐŚĂƐWK:<EŽ͘ϱϭͬWK:<ͬϬϯͬϮϬϭϳ;WK:<ϱϭͿƌĞŐƵůĂƚŝŽŶ͕ŝƌĐƵůĂƌ>ĞƚƚĞƌŽĨK:<;^K:<EŽ͘ϭϲͬ^K:<͘ϬϯͬϮϬϮϭͿ͕'Z/^ƚĂŶĚĂƌĚϮϬϮϭŽŶƐŽůŝĚĂƚĞĚ͕ĂŶĚ^^DĞƚĂůƐĂŶĚDŝŶŝŶŐ͘
^ZƐŝĂ/ŶĚĞƉĞŶĚĞŶƚƐƐƵƌĂŶĐĞ^ƚĂƚĞŵĞŶƚ͕ǀĞƌƐŝŽŶϮϬϮϰ͕ƉĂŐĞϭŽĨϱ

90

Sustainability Report 2023

dǇƉĞĂŶĚ>ĞǀĞůŽĨƐƐƵƌĂŶĐĞ^ĞƌǀŝĐĞϭ͘ dǇƉĞϭĂƐƐƵƌĂŶĐĞŽŶƚŚĞZĞƉŽƌƚĐŽŶƚĞŶƚ͘Ϯ͘ dǇƉĞϮĂƐƐƵƌĂŶĐĞŽŶŵŝƐƐŝŽŶŽŶƚƌŽů͕ŶĞƌŐǇhƐĂŐĞ͕ĂŶĚŝǀĞƌƐŝƚǇĂŶĚƋƵĂůŝƚǇ͘ϯ͘ ŵŽĚĞƌĂƚĞůĞǀĞůŽĨĂƐƐƵƌĂŶĐĞƚŽƚŚĞƉƌŽĐĞĚƵƌĞŽŶƚŚĞZĞƉŽƌƚĐŽŶƚĞŶƚĂŶĚĞǀŝĚĞŶĐĞ͕ǁŚĞƌĞƚŚĞƌŝƐŬƐŽĨŝŶĨŽƌŵĂƚŝŽŶĂŶĚĐŽŶĐůƵƐŝŽŶƐŽĨƚŚĞZĞƉŽƌƚďĞŝŶŐĞƌƌŽƌŝƐƌĞĚƵĐĞĚ͕ďƵƚŶŽƚƚŽǀĞƌǇůŽǁ͕ďƵƚŶŽƚǌĞƌŽ͘^ĐŽƉĞĂŶĚ>ŝŵŝƚĂƚŝŽŶŽĨƐƐƵƌĂŶĐĞ^ĞƌǀŝĐĞϭ͘ ĂƚĂĂŶĚŝŶĨŽƌŵĂƚŝŽŶŝŶƚŚĞZĞƉŽƌƚĨŽƌƚŚĞƉĞƌŝŽĚŽĨ:ĂŶƵĂƌǇϭƐƚƚŽĞĐĞŵďĞƌϯϭƐƚ͕ϮϬϮϯ͘Ϯ͘ DĂƚĞƌŝĂůƚŽƉŝĐƐƉƌĞƐĞŶƚĞĚŝŶƚŚĞZĞƉŽƌƚ͗WŽƐƚͲDŝŶŝŶŐZĞŚĂďŝůŝƚĂƚŝŽŶ͕ŵŝƐƐŝŽŶŽŶƚƌŽů͕ŶĞƌŐǇhƐĂŐĞ͕tĂƐƚĞ DĂŶĂŐĞŵĞŶƚ͕ tĂƚĞƌ ĂŶĚ ĨĨůƵĞŶƚ͕ KĐĐƵƉĂƚŝŽŶĂů ,ĞĂůƚŚ ĂŶĚ ^ĂĨĞƚǇ͕ >ŽĐĂů ŽŵŵƵŶŝǇ͕ŝǀĞƌƐŝƚǇĂŶĚƋƵĂůŝƚǇ͕ƵƐŝŶĞƐƐƚŚŝĐƐ͕ĂŶĚĐŽŶŽŵŝĐWĞƌĨŽƌŵĂŶĐĞ͘ϯ͘ ǀĂůƵĂƚŝŽŶŽĨƉƵďůŝĐůǇĚŝƐĐůŽƐĞĚŝŶĨŽƌŵĂƚŝŽŶ͕ƐǇƐƚĞŵ͕ĂŶĚƉƌŽĐĞƐƐŽĨƚŚĞŽŵƉĂŶǇƚŽĞŶƐƵƌĞĂĚŚĞƌĞŶĐĞŽĨƚŚĞZĞƉŽƌƚĐŽŶƚĞŶƚƚŽƚŚĞƌĞƉŽƌƚŝŶŐƉƌŝŶĐŝƉůĞƐ͘ϰ͘ ^ZƐŝĂĚŽĞƐEKdŝŶĐůƵĚĞĨŝŶĂŶĐŝĂůĚĂƚĂ͕ŝŶĨŽƌŵĂƚŝŽŶ͕ĂŶĚĨŝŐƵƌĞƐŝŶƚŚĞZĞƉŽƌƚĐŽŶƚĞŶƚ͘tĞĂƐƐƵŵĞĚƚŚĂƚƚŚĞŽŵƉĂŶǇ͕ŝŶĚĞƉĞŶĚĞŶƚƉĂƌƚŝĞƐ͕ŽƌŽƚŚĞƌƉĂƌƚŝĞƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚƚŚĞŽŵƉĂŶǇŚĂǀĞǀĞƌŝĨŝĞĚĂŶĚͬŽƌĂƵĚŝƚĞĚĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͕ĚĂƚĂ͕ĂŶĚŝŶĨŽƌŵĂƚŝŽŶ͘ϱ͘ ĚŚĞƌĞŶĐĞƚŽƚŚĞĨŽůůŽǁŝŶŐƌĞƉŽƌƚŝŶŐƉƌŝŶĐŝƉůĞƐ͕ƐƚĂŶĚĂƌĚƐ͕ĂŶĚƌĞŐƵůĂƚŝŽŶƐ͗ĂͿ ŽŶƐŽůŝĚĂƚĞĚƐĞƚŽĨ'Z/^ƵƐƚĂŝŶĂďŝůŝƚǇZĞƉŽƌƚŝŶŐ^ƚĂŶĚĂƌĚƐϮϬϮϭ;'Z/hŶŝǀĞƌƐĂů^ƚĂŶĚĂƌĚͿĂŶĚ'Z/
'ϰDŝŶŝŶŐĂŶĚDĞƚĂůƐ^ĞĐƚŽƌ^ƵƉƉůĞŵĞŶƚ;'Z/Ͳ'ϰDDͿŝƐƐƵĞĚďǇƚŚĞ'ůŽďĂůZĞƉŽƌƚŝŶŐ/ŶŝƚŝĂƚŝǀĞ͘ďͿ ^ƵƐƚĂŝŶĂďŝůŝƚǇ ĐĐŽƵŶƚŝŶŐ ^ƚĂŶĚĂƌĚ ĨŽƌ DĞƚĂůƐ ĂŶĚ DŝŶŝŶŐ ;DͲDDͿ ϮϬϮϭ ŝƐƐƵĞĚ ďǇ ƚŚĞ^ƵƐƚĂŝŶĂďŝůŝƚǇĐĐŽƵŶƚŝŶŐ^ƚĂŶĚĂƌĚŽĂƌĚ;^^Ϳ͘ĐͿ ZĞŐƵůĂƚŝŽŶŽĨKƚŽƌŝƚĂƐ:ĂƐĂ<ĞƵĂŶŐĂŶ;K:<ͿEŽ͘ϱϭͬWK:<͘ϬϯͬϮϬϭϳƌĞŐĂƌĚŝŶŐƚŚĞ/ŵƉůĞŵĞŶƚĂƚŝŽŶŽĨ^ƵƐƚĂŝŶĂďůĞ&ŝŶĂŶĐĞĨŽƌ&ŝŶĂŶĐŝĂů^ĞƌǀŝĐĞ/ŶƐƚŝƚƵƚŝŽŶƐ͕>ŝƐƚĞĚ͕ĂŶĚWƵďůŝĐŽŵƉĂŶŝĞƐ;WK:<ϱϭͿǁŝƚŚƌĞĨĞƌĞŶĐĞƚŽK:<ŝƌĐƵůĂƌ>ĞƚƚĞƌ;^K:<ͿϮϬϮϮEŽ͘ϭϲͬ^K:<͘ϬϰͬϮϬϮϭ͘ǆĐůƵƐŝŽŶϭ͘ dŚĞĞǆƉƌĞƐƐŝŽŶŽĨŽƉŝŶŝŽŶ͕ďĞůŝĞĨ͕ĞǆƉĞĐƚĂƚŝŽŶ͕ĂĚǀĞƌƚŝƐĞŵĞŶƚ͕ĂŶĚĂůƐŽĨŽƌǁĂƌĚͲůŽŽŬŝŶŐƐƚĂƚĞŵĞŶƚƐ͕ŝŶĐůƵĚŝŶŐĨƵƚƵƌĞƉůĂŶŶŝŶŐŽĨƚŚĞŽŵƉĂŶǇĂƐƐƉĞĐŝĨŝĞĚŝŶƚŚĞZĞƉŽƌƚĐŽŶƚĞŶƚ͘Ϯ͘ ŶĂůǇƐŝƐŽƌĂƐƐĞƐƐŵĞŶƚĂŐĂŝŶƐƚƌĞŐƵůĂƚŝŽŶƐ͕ƉƌŝŶĐŝƉůĞƐ͕ƐƚĂŶĚĂƌĚƐ͕ŐƵŝĚĞůŝŶĞƐ͕ĂŶĚŝŶĚŝĐĂƚŽƌƐŽƚŚĞƌƚŚĂŶƚŚŽƐĞŝŶĚŝĐĂƚĞĚŝŶƚŚĞ^ƚĂƚĞŵĞŶƚ͘ϯ͘ dŽƉŝĐƐ͕ĚĂƚĂ͕ĂŶĚŝŶĨŽƌŵĂƚŝŽŶŽƵƚƐŝĚĞƚŚĞƌĞƉŽƌƚŝŶŐƉĞƌŝŽĚ͕ŽƌŝŶƚŚĞƉƵďůŝĐĚŽŵĂŝŶŶŽƚĐŽǀĞƌĞĚŝŶƚŚĞƌĞƉŽƌƚŝŶŐƉĞƌŝŽĚ͘ϰ͘ &ŝŶĂŶĐŝĂůƉĞƌĨŽƌŵĂŶĐĞĚĂƚĂĂŶĚŝŶĨŽƌŵĂƚŝŽŶĂƐƉƌĞƐĞŶƚĞĚŝŶƚŚĞCompany’sĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĂŶĚĚŽĐƵŵĞŶƚƐ͕ŽƚŚĞƌƚŚĂŶƚŚŽƐĞŵĞŶƚŝŽŶĞĚŝŶƚŚĞZĞƉŽƌƚ͘DĞƚŚŽĚŽůŽŐǇĂŶĚ^ŽƵƌĐĞŝƐĐůŽƐƵƌĞϭ͘ &Žƌŵ ĂŶ ƐƐƵƌŽƌ dĞĂŵ ǁŚŽƐĞ ŵĞŵďĞƌƐ ĂƌĞ ĐĂƉĂďůĞ ŝŶ ƐƵƐƚĂŝŶĂďŝůŝƚǇ ƌĞƉŽƌƚ ĚĞǀĞůŽƉŵĞŶƚ ĂŶĚĂƐƐƵƌĂŶĐĞ͘Ϯ͘ WĞƌĨŽƌŵ ƚŚĞ ƉƌĞͲĞŶŐĂŐĞŵĞŶƚ ƉŚĂƐĞ ƚŽ ĞŶƐƵƌĞ ƚŚĞ ŝŶĚĞƉĞŶĚĞŶĐĞ ĂŶĚ ŝŵƉĂƌƚŝĂůŝƚǇ ŽĨ ƚŚĞ ƐƐƵƌŽƌdĞĂŵ͘
ϯ͘ ,ŽůĚ Ă ŬŝĐŬͲŽĨĨ ŵĞĞƚŝŶŐ ĂŶĚ ŝŶŝƚŝĂů ĂŶĂůǇƐŝƐ ŽĨ ƚŚĞ ZĞƉŽƌƚ ĚƌĂĨƚ ďĂƐĞĚ ŽŶ ƚŚĞ ^Z ƐŝĂ WƌŽƚŽĐŽů ŽŶƐƐƵƌĂŶĐĞŶĂůǇƐŝƐ ƌĞĨĞƌƐ ƚŽ ƚŚĞ ƐƚĂŶĚĂƌĚƐ͕ ƉƌŝŶĐŝƉůĞƐ͕ ĂŶĚ ŝŶĚŝĐĂƚŽƌƐŽĨϭϬϬϬ^ǀϯ͕ ϭϬϬϬW^;ϮϬϭϴͿ͕ĂŶĚƐƚĂŶĚĂƌĚƐͬƌĞŐƵůĂƚŝŽŶƐƵƐĞĚŝŶƚŚĞZĞƉŽƌƚ͘ϰ͘ ŝƐĐƵƐƐŽŶůŝŶĞƚŚĞƌĞƐƵůƚƐŽĨƚŚĞĂŶĂůǇƐŝƐǁŝƚŚƚŚĞDĂŶĂŐĞŵĞŶƚĂŶĚĚĂƚĂĐŽŶƚƌŝďƵƚŽƌƐ͘ϱ͘ ŝƐĐƵƐƐŽŶůŝŶĞƚŚĞƌĞƐƵůƚƐŽĨƚŚĞĂŶĂůǇƐŝƐǁŝƚŚƚŚĞDĂŶĂŐĞŵĞŶƚĂŶĚĚĂƚĂĐŽŶƚƌŝďƵƚŽƌƐ͘ϲ͘ sĞƌŝĨǇĞǀŝĚĞŶĐĞĂŶĚƚƌĂĐĞĚĂƚĂĂŶĚŝŶĨŽƌŵĂƚŝŽŶĂƐĐŽǀĞƌĞĚŝŶƚŚĞZĞƉŽƌƚ͘ϳ͘ dŚĞŽŵƉĂŶǇŝŶĐŽƌƉŽƌĂƚĞĚŽƵƌƌĞĐŽŵŵĞŶĚĂƚŝŽŶƐŝŶƚŚĞĚƌĂĨƚZĞƉŽƌƚĂŶĚƌĞůĞĂƐĞƚŚĞĨŝŶĂůZĞƉŽƌƚĐŽŶƚĞŶƚ͘ϴ͘ WƌĞƉĂƌĞƚŚĞ^ƚĂƚĞŵĞŶƚĂŶĚƐĞŶĚŝƚƚŽ^ZƐŝĂ/ŶƚĞƌŶĂƚŝŽŶĂůŝƌĞĐƚŽƌĨŽƌƌĞǀŝĞǁƚŽŐĞƚĂƉƉƌŽǀĂůďĞĨŽƌĞƐƵďŵŝƚƚŝŶŐŝƚƚŽƚŚĞŽŵƉĂŶǇ͘

^ZƐŝĂ/ŶĚĞƉĞŶĚĞŶƚƐƐƵƌĂŶĐĞ^ƚĂƚĞŵĞŶƚ͕ǀĞƌƐŝŽŶϮϬϮϰ͕ƉĂŐĞϮŽĨϱAppendix

Independent Assurance Statementϵ͘ WƌĞƉĂƌĞĂDĂŶĂŐĞŵĞŶƚ>ĞƚƚĞƌĚĞƚĂŝůŝŶŐĂůůĂƐƉĞĐƚƐƐĞĞŶ͕ƌĞĐŽƌĚĞĚ͕ĂŶĚŽďƐĞƌǀĞĚĚƵƌŝŶŐƚŚĞĂƐƐƵƌĂŶĐĞǁŽƌŬƚŽƚŚĞDĂŶĂŐĞŵĞŶƚŽĨƚŚĞŽŵƉĂŶǇĨŽƌĨƵƌƚŚĞƌŝŵƉƌŽǀĞŵĞŶƚŽĨƐƵƐƚĂŝŶĂďŝůŝƚǇƉƌŽĐĞƐƐĞƐ͘ĚŚĞƌĞŶĐĞƚŽϭϬϬϬW;ϮϬϭϴͿĂŶĚ'Z/hŶŝǀĞƌƐĂů^ƚĂŶĚĂƌĚƐ/ŶĐůƵƐŝǀŝƚǇ – ZĞŐĂƌĚŝŶŐ ƚŚĞ ŝŶǀŽůǀĞŵĞŶƚ ŽĨ ƐƚĂŬĞŚŽůĚĞƌƐ͕ ƚŚĞ ŽŵƉĂŶǇ ŚĂƐ ƉĞƌĨŽƌŵĞĚ ƐƵĨĨŝĐŝĞŶƚ͘ŶŐĂŐĞŵĞŶƚŚĂƐĐŽŶĚƵĐƚĞĚǁŝƚŚďŽƚŚŝŶƚĞƌŶĂůĂŶĚĞǆƚĞƌŶĂůƐƚĂŬĞŚŽůĚĞƌƐ͘dŚĞŽŵƉĂŶǇŚĂƐĂůƐŽĞŶŐĂŐĞĚǁŝƚŚůŽĐĂůĐŽŵŵƵŶŝƚŝĞƐďǇŝŶǀŽůǀŝŶŐƚŚĞŵĂƐĞŵƉůŽǇĞĞƐĂƐĚĞĨŝŶĞĚďǇƚŚĞŽŵƉĂŶǇ͘tĞĂĐŬŶŽǁůĞĚŐĞƚŚĂƚƚŚĞŽŵƉĂŶǇŚĂƐĞǆƉůĂŝŶĞĚƚŚĞƐƉĞĐŝĨŝĐƚŽƉŝĐƐĚŝƐĐƵƐƐĞĚǁŝƚŚƐƚĂŬĞŚŽůĚĞƌƐ͘dŚĞŽŵƉĂŶǇŚĂƐĂůƐŽĐŽŶĚƵĐƚĞĚŝĚĞŶƚŝĨŝĐĂƚŝŽŶďĂƐĞĚŽŶĐŽŵŵƵŶŝĐĂƚŝŽŶƉŽůŝĐŝĞƐĂŶĚƐŽĐŝĂůĐŽŶƚƌŽůƐǇƐƚĞŵƐ͘DĂƚĞƌŝĂůŝƚǇ–dŚĞZĞƉŽƌƚΖƐĐŽŶƚĞŶƚĐŽǀĞƌƐĂůůƌĞůĞǀĂŶƚƐƵďũĞĐƚƐĂŶĚƉƌŽǀŝĚĞƐĂƚŚŽƌŽƵŐŚĞǆƉůĂŶĂƚŝŽŶŽĨƚŚĞ ŽŵƉĂŶǇΖƐ ƐƵƐƚĂŝŶĂďŝůŝƚǇ ŝƐƐƵĞ͘ tĞ ĂůƐŽ ĂƉƉƌĞĐŝĂƚĞ ƚŚĂƚ ƚŚĞ ŽŵƉĂŶǇ ĐŽŶĚƵĐƚĞĚ ĚŝƐĐƵƐƐŝŽŶƐ ĂŶĚĐĂƌƌŝĞĚŽƵƚĂƐƵƌǀĞǇǁŝƚŚďŽƚŚŝŶƚĞƌŶĂůĂŶĚĞǆƚĞƌŶĂůƐƚĂŬĞŚŽůĚĞƌƐŝŶŽƌĚĞƌƚŽĚĞĨŝŶĞƚŚĞŵĂƚĞƌŝĂůƚŽƉŝĐƐŽĨƚŚĞƌĞƉŽƌƚ͘ZĞƐƉŽŶƐŝǀĞŶĞƐƐ – Ɛ ƐƚĂƚĞĚ ŝŶ ƚŚĞ ZĞƉŽƌƚ͕ ƚŚĞ ŽŵƉĂŶǇ ĞǆƉůĂŝŶƐ ƚŚĞ ĂĐƚŝŽŶƐ ƚĂŬĞŶ ďĂƐĞĚ ŽŶ ƚŚĞĐŽŵƉůĂŝŶƚƐƌĞĐĞŝǀĞĚ͘dŚĞŽŵƉĂŶǇĂůƐŽŚĂƐĂĐŽŵƉůĂŝŶƚŵĞĐŚĂŶŝƐŵĂŶĚƐǇƐƚĞŵ;sĂůĞtŚŝƐƚůĞůŽǁŝŶŐ^ǇƐƚĞŵͿƚŚĂƚĐĂŶďĞĂĐĐĞƐƐĞĚŝŶƚĞƌŶĂůůǇĂŶĚĞǆƚĞƌŶĂůůǇ͘&ƵƌƚŚĞƌŵŽƌĞ͕ƚŚĞŽŵƉĂŶǇĂůƐŽĐŽŶĚƵĐƚƐĨŽĐƵƐŐƌŽƵƉ ĚŝƐĐƵƐƐŝŽŶƐ ǁŝƚŚ Ăůů ƐƚĂŬĞŚŽůĚĞƌƐ ƚŽ ĨŝŶĚ ƐŽůƵƚŝŽŶƐ ƚŽ ŵĂƚƚĞƌƐ ŽĨ ŵƵƚƵĂů ĐŽŶĐĞƌŶ ƌĞŐĂƌĚŝŶŐ ƚŚĞŽŵƉĂŶǇΖƐŽƉĞƌĂƚŝŽŶĂůĂĐƚŝǀŝƚŝĞƐ͘/ŵƉĂĐƚ–ĂƐĞĚŽŶŽƵƌĂƐƐƵƌĂŶĐĞǁŽƌŬ͕ǁĞĐŽŶĐůƵĚĞƚŚĂƚƚŚĞŽŵƉĂŶǇŚĂƐĂůƌĞĂĚǇƐƵĨĨŝĐŝĞŶƚĂĚŚĞƌĞŶĐĞƚŽ ŐŽŽĚ ŵŝŶŝŶŐ ƉƌĂĐƚŝĐĞ ŝŶ /ŶĚŽŶĞƐŝĂ͘ /ƚ ŝƐ ŝŶĚŝĐĂƚĞƐ ĨƌŽŵ ƚŚĞ ĞŶǀŝƌŽŶŵĞŶƚĂů ĂƐƉĞĐƚ͕ƚŚĞ ŽŵƉĂŶǇ ŚĂƐƌĞĚƵĐĞĚ ƚŽƚĂů ŐƌĞĞŶŚŽƵƐĞ ŐĂƐ ĞŵŝƐƐŝŽŶƐ ĂŶĚ ĐĂƌƌŝĞĚ ŽƵƚ ůĂŶĚ ƌĞĐůĂŵĂƚŝŽŶ ĂŶĚ ƌĞŚĂďŝůŝƚĂƚŝŽŶ ĂĐƚŝǀŝƚŝĞƐďĞǇŽŶĚŝƚƐŽƉĞƌĂƚŝŽŶĂůĂƌĞĂƐ͕ŝŶĐůƵĚŝŶŐƌĞĨŽƌĞƐƚĂƚŝŽŶĂŶĚƚŚĞĐŽŵŵƵŶŝƚǇĚĞǀĞůŽƉŵĞŶƚǁŚŝĐŚƉƌŽǀŝĚĞƐƐŽĐŝĂů ďĞŶĞĨŝƚƐ͘ /Ŷ ƐŽĐŝĂů ĂƐƉĞĐƚ͕ ƚŚĞ ŽŵƉĂŶǇ ŚĂƐ ŝŵƉƌŽǀĞĚ ĐŽŵƉůŝĂŶĐĞ ǁŝƚŚ ŽĐĐƵƉĂƚŝŽŶĂů ŚĞĂůƚŚ ĂŶĚƐĂĨĞƚǇ;K,^ͿƐƚĂŶĚĂƌĚƐ͕ĂƐƌĞĨůĞĐƚĞĚŝŶƚŚĞŝŶĐƌĞĂƐĞĚĐŽŵƉůŝĂŶĐĞƌĂƚĞŝŶϮϬϮϯ͘dŚĞŽŵƉĂŶǇĂůƐŽĞŶŐĂŐĞĚǁŝƚŚůŽĐĂůĂŶĚŶĂƚŝŽŶĂůƐƵƉƉůŝĞƌƐŝŶŝƚƐƐƵƉƉůǇĐŚĂŝŶ͕ǁŚŝĐŚĐŽŶƚƌŝďƵƚĞƐƚŽĞĐŽŶŽŵŝĐǀĂůƵĞĐƌĞĂƚŝŽŶ͘&ƵƌƚŚĞƌ͕ǁĞ ĂƉƉƌĞĐŝĂƚĞ ƚŚĂƚ ƚŚŝƐ ǇĞĂƌ͕ ƚŚĞ ŽŵƉĂŶǇ ŚĂƐ ĐŽŵƉůĞƚĞĚ ƚŚĞ ĚĞǀĞůŽƉŵĞŶƚ ŽĨ Ă DĂƐƚĞƌ WůĂŶ ĨŽƌŽŵŵƵŶŝƚǇ ĞǀĞůŽƉŵĞŶƚ ĂŶĚ ŵƉŽǁĞƌŵĞŶƚ WƌŽŐƌĂŵƐ ;W<WDͿ͕ ŝŶǀŽůǀŝŶŐ ǀĂƌŝŽƵƐ ĂƐƉĞĐƚƐ ƐƵĐŚ ĂƐĞĚƵĐĂƚŝŽŶ͕ŚĞĂůƚŚ͕ĞĐŽŶŽŵǇ͕ƐŽĐŝĂůĞŶǀŝƌŽŶŵĞŶƚ͕ĂŶĚŝŶĨƌĂƐƚƌƵĐƚƵƌĞ͘dŚĞƐĞƉƌŽŐƌĂŵƐĂƌĞďĂƐĞĚŽŶŝŶƉƵƚĨƌŽŵ ĂŶĚ ĐŽůůĂďŽƌĂƚŝŽŶ ǁŝƚŚ ƐƚĂŬĞŚŽůĚĞƌƐ͕ ƚŚƵƐ ĐŽŶƚƌŝďƵƚŝŶŐ ƚŽ ƚŚĞ ĂĐŚŝĞǀĞŵĞŶƚ ŽĨ ^ƵƐƚĂŝŶĂďůĞĞǀĞůŽƉŵĞŶƚ'ŽĂůƐ;^'ƐͿ͘dŚĞŽŵƉĂŶǇŚĂƐĂůƐŽĚĞǀĞůŽƉĞĚĂŶ^'ZŽĂĚŵĂƉĨƌŽŵϮϬϮϮƚŽϮϬϮϲĂƐĂĐŽŵƉƌĞŚĞŶƐŝǀĞ ŐƵŝĚĞ ƚŽ ŵĂŶĂŐŝŶŐ ŶǀŝƌŽŶŵĞŶƚĂů͕ ^ŽĐŝĂů͕ ĂŶĚ 'ŽǀĞƌŶĂŶĐĞ ;^'Ϳ ĂƐƉĞĐƚƐ ǁŚŝĐŚ ƐŚŽǁƐƚŚĞŝƌŝŵƉƌŽǀĞŵĞŶƚŝŶ^'ŵĂŶĂŐĞŵĞŶƚ͘^ƚĂƚĞŵĞŶƚŽĨhƐĞ͗“/ŶĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞ'Z/^ƚĂŶĚĂƌĚƐ”–tĞĞǀĂůƵĂƚĞĚƚŚĞZĞƉŽƌƚĐŽŶƚĞŶƚĂŐĂŝŶƐƚƚŚĞ
'Z/ hŶŝǀĞƌƐĂů ^ƚĂŶĚĂƌĚƐ ƉƌŝŶĐŝƉůĞƐ͕ ĚŝƐĐůŽƐƵƌĞƐ͕ ĂŶĚ ƌĞƋƵŝƌĞŵĞŶƚƐ ĨŽƌ ƌĞƉŽƌƚŝŶŐ͘ dŚĞ ŽŵƉĂŶǇ ŚĂƐĐŽŵƉůŝĞĚǁŝƚŚŶŝŶĞƌĞƋƵŝƌĞŵĞŶƚƐ͗ĂƉƉůǇƚŚĞƌĞƉŽƌƚŝŶŐƉƌŝŶĐŝƉůĞƐ͕ƌĞƉŽƌƚƚŚĞĚŝƐĐůŽƐƵƌĞƐŝŶ'Z/Ϯ͗'ĞŶĞƌĂůŝƐĐůŽƐƵƌĞƐϮϬϮϭ͕ĚĞƚĞƌŵŝŶĞŵĂƚĞƌŝĂůƚŽƉŝĐƐ͕ƌĞƉŽƌƚƚŚĞĚŝƐĐůŽƐƵƌĞƐŝŶ'Z/ϯ͗DĂƚĞƌŝĂůdŽƉŝĐƐϮϬϮϭ͕ƌĞƉŽƌƚĚŝƐĐůŽƐƵƌĞƐ ĨƌŽŵ ƚŚĞ 'Z/ dŽƉŝĐ ^ƚĂŶĚĂƌĚƐ ĨŽƌ ĞĂĐŚ ŵĂƚĞƌŝĂů ƚŽƉŝĐ͕ ƉƌŽǀŝĚĞ ƌĞĂƐŽŶƐ ĨŽƌ ŽŵŝƐƐŝŽŶ ĨŽƌĚŝƐĐůŽƐƵƌĞƐ ĂŶĚ ƌĞƋƵŝƌĞŵĞŶƚƐ ƚŚĂƚ ƚŚĞ ŽƌŐĂŶŝǌĂƚŝŽŶ ĐĂŶŶŽƚ ĐŽŵƉůǇ ǁŝƚŚ͕ ƉƵďůŝƐŚ Ă 'Z/ ĐŽŶƚĞŶƚ ŝŶĚĞǆ͕ƉƌŽǀŝĚĞĂƐƚĂƚĞŵĞŶƚŽĨƵƐĞ͕ĂŶĚŶŽƚŝĨǇ'Z/͘
'Z/^ƚĂŶĚĂƌĚƐWƌŝŶĐŝƉůĞƐ–ƐƚŚĞĂƐƐƵƌĂŶĐĞǁŽƌŬǁĂƐƚĂŬĞŶ͕ƚŚĞƌĞƉŽƌƚĐŽŶƚĞŶƚŝŶĚŝĐĂƚĞƐŝƚƐĂĚŚĞƌĞŶĐĞƚŽ ƐƵƐƚĂŝŶĂďŝůŝƚǇ ƌĞƉŽƌƚŝŶŐ ƉƌŝŶĐŝƉůĞƐ ;ĂĐĐƵƌĂĐǇ͕ ďĂůĂŶĐĞ͕ ĐůĂƌŝƚǇ͕ ĐŽŵƉĂƌĂďŝůŝƚǇ͕ ĐŽŵƉůĞƚĞŶĞƐƐ͕ƐƵƐƚĂŝŶĂďŝůŝƚǇĐŽŶƚĞǆƚ͕ƚŝŵĞůŝŶĞƐƐ͕ĂŶĚǀĞƌŝĨŝĂďŝůŝƚǇͿ͘dŚĞDĂŶĂŐĞŵĞŶƚƉƌŽǀŝĚĞĚƐƵĨĨŝĐŝĞŶƚƐƵƉƉŽƌƚĚƵƌŝŶŐƚŚĞĂƐƐƵƌĂŶĐĞǁŽƌŬďǇƐƵďŵŝƚƚŝŶŐĞǀŝĚĞŶĐĞͬĚŽĐƵŵĞŶƚƐĂƐƌĞƋƵĞƐƚĞĚ͘

91

Sustainability Report 2023

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^ZƐŝĂ/ŶĚĞƉĞŶĚĞŶƚƐƐƵƌĂŶĐĞ^ƚĂƚĞŵĞŶƚ͕ǀĞƌƐŝŽŶϮϬϮϰ͕ƉĂŐĞϯŽĨϱ

^ZƐŝĂ/ŶĚĞƉĞŶĚĞŶƚƐƐƵƌĂŶĐĞ^ƚĂƚĞŵĞŶƚ͕ǀĞƌƐŝŽŶϮϬϮϰ͕ƉĂŐĞϰŽĨϱFinancial Services Authority Regulation (POJK) Number 51/POJK.03/2017 and Financial
Services Authority Circular Letter (SEOJK) Number 16/SEOJK.04/2021

Financial Services Authority Regulation (POJK) Number 51/POJK.03/2017 and Financial
Services Authority Circular Letter (SEOJK) Number 16/SEOJK.04/2021[POJK G.4]

Index
NumberIndex Name

Page

Index
NumberSustainability Strategy
A.1

23-27

B.1

Economic Aspects

8

B.2

Environmental Aspects

4

B.3

Social Aspects

6

Company Brief Profile
C.1

Vision, Mission and Sustainability values

28

C.2

Company's Address

13

C.3

Business Scale

13

C.4

Products, Services, and Running Business
Activities

16

C.5

Membership of Association

17

C.6

Significant Changes in Issuers and PublicCompanies

13, 17The Board of Directors message
D.1

The Board of Directors message

General Aspect
F.4
F.5

Energy Aspect
F.6

Number and Intensity of Energy Used

38-39

F.7

Efforts and Achievements of Energy Efficiency andUse of Renewable Energy

39-40

Water Aspect
F.8

Aspects of Biodiversity
F.9

Impacts from Operational Areas that are
Adjacent to or are In Conservation Areas or Have
Biodiversity

F.10

Biodiversity Conservation Efforts

41, 44

35

75

E.4

Relations with Stakeholders

83

E.5

Problems with the Implementation of Sustainable
Finance78

Sustainability performance

Waste and Effluent Aspects
F.13

Amount of Waste and Effluent Generated by Type

F.14

Waste and Effluent Management Mechanism

F.15

Spill Incident (if any)

24

Not
Relevant

Number and Material of Environmental
Complaints Received and Resolved

F.17

The Financial Service Institution, Issuer, and PublicCompany’s Commitment to Provide Services for
Equivalent Products and/or Services to Consumer

Page

Equal employment opportunities

55

F.19

The Presence or Absence of Forced Labor andChild Labor

58

F.20

Regional Minimum Wage

57

F.21

Decent and Safe Working Environment

59

F.22

Training and Development of Employee Skills

58

Community Aspect
F.23

Impact of Operations on Surrounding
Communities

64

F.24

Public Complaints

70-71

F.25

Environmental Social Responsibility Activities
(CSR)

64

Responsibility Of Sustainability Products and/or
Services Development
F.26

Innovation and Development of Sustainable
Financial Products/Services

85

F.27

Products/Services that the safety Have Been
Evaluated For Customers

84

F.28

Product/Service Impact

84

F.29

The number of Products Withdrawn

84

F.30

Customer Satisfaction Survey on Sustainable
Financial Products and/or Services

84

Others45, 4945

50

G.1

Written Verification from Independent Parties(if any)

20

G.2

Feedback Sheet

20

G.3

Responses to Feedback on the Previous Year's
Sustainability Report

20

G.4

List of Disclosures According to Financial Services
Authority Regulation Number 51/POJK.03/2017
Concerning Implementation of Sustainable
Finance for Financial Services Institutions, Issuers,
and Public Companies

92

Social Performance

Economic performance79

45-47, 49Complaint Aspects Related to the Environment
F.16

Index Name

F.18

49

Efforts and Achievements of Emission Reduction

Risk Assessment of the Implementation of
Sustainable Finance

Sustainability Report 2023

48

F.12

E.3

92

Water Usage

73
75

F.3

39

35, 37

E.2

Comparison of Target and Portfolio Performance,
Financing Targets, or Investments in Financial
Instruments or Projects that are in Line with the
Implementation of Sustainability

Use of Environmentally Friendly Materials

F.11

Responsible for Implementing Sustainable Finance

F.2

42

Material Aspect

Number and Intensity of Emissions Generated byType

Competency Development Related to Sustainable
FinanceComparison of Targets and Production
Performance, Portfolio, Financing Targets, orInvestments, Income As Well As Profit
and Loss

Environmental Costs Incurred

Emission Aspect

E.1

Activities to Build A Culture of Sustainability

Index
Number

Employment Aspect

9-11

Sustainability governance

F.1

Page

Environmental Performance

Sustainability Strategy Explanation
Performance Overview on Sustainability Aspects

Index Name

81

Financial Services Authority Regulation (POJK) Number 51/POJK.03/2017 and Financial
Services Authority Circular Letter (SEOJK) Number 16/SEOJK.04/2021

GRI Content IndeksStatement of use

PT Vale Indonesia Tbk has reported in accordance with the GRI Standards for the period January 1-December 31, 2023.

GRI 1 used

GRI 1 : Foundation 2021

Applicable GRI Sector Standard(s)Omission

GRI Standard

Indicator

Disclosure

Page

General Disclosure

GRI 2: General
Disclosures 2021

93

2-1

Organizational details

13

2-2

Entities included in the organization’s sustainability reporting

19

2-3

Reporting period, frequency and contact

19

2-4

Restatements of information

20

2-5

External assurance

20

2-6

Activities, value chain and other business relationships

14-15

2-7

Employees

2-8Workers who are not employees

15
15

2-9

Governance structure and composition

73

2-10

Nomination and selection of the highest governance body

73

2-11

Chair of the highest governance body

73

2-12

Role of the highest governance body in overseeing themanagement of impacts

73

2-13

Delegation of responsibility for managing impacts

74

2-14

Role of the highest governance body in sustainability reporting

20

2-15

Conflicts of interest

73

2-16

Communication of critical concerns

76

2-17

Collective knowledge of the highest governance body

2-18

Evaluation of the performance of the highest governance body

75-76
74

2-19

Remuneration policies

74

2-20

Process to determine remuneration

74

2-21

Annual total compensation ratio

74

2-22

Statement on sustainable development strategy

2-23

Policy commitments

2-24

Embedding policy commitments

24

2-25

Processes to remediate negative impacts

29

2-26

Mechanisms for seeking advice and raising concerns

75

Sustainability Report 2023

9-11
23, 28, 51

Requirement(s)OmittedReasonExplanation

GRI Sector
Standard
Ref.NoFinancial Services Authority Regulation (POJK) Number 51/POJK.03/2017 and Financial
Services Authority Circular Letter (SEOJK) Number 16/SEOJK.04/2021

GRI Content Indeks
Omission
GRI Standard

GRI 2: General
Disclosures 2021

GRI 3: Material
Topics 2021

GRI 201: Economic
Performance 2016

GRI 202 : Market
Presence 2016
GRI 203: Indirect
Economic Impacts
2016
GRI 204 :Procurement
Practices 2016
GRI 205: Anticorruption 2016
GRI 206: Anticompetitive
Behavior 2016

GRI 207: Tax 201994

Indicator

Disclosure

Page

2-27

Compliance with laws and regulations

2-28

Membership associations

50,72
17

2-29

Approach to stakeholder engagement

83

2-30

Collective bargaining agreements

57

3-1

Process to determine material topics

20

3-2

List of material topics

20

3-3

Management of material topics

21-22

201-1

Direct economic value generated and distributed

78

201-2

Financial implications and other risks due to climate change

79

201-3

Defined benefit plan obligations and other retirement plans

79

201-4

Financial assistance received from government

78

202-1

Ratios of standard entry level wage by gender compared to local
minimum wage

57

202-2

Proportion of senior management hired from the local community

14

203-1

Infrastructure investment and services supported

81

203-2

Significant indirect economic impact

81

204-1

Proportion of spending on local suppliers

205-1

Operations assessed for risks related to corruption

77

205-2

Communication and training about anti-corruption policies andprocedures

77

205-3

Confirmed incidents of corruption and actions taken

77

206-1

Legal actions for anti-competitive behavior, anti-trust, andmonopoly practices

81

81-82

207-1

Approach to tax

79

207-2

Tax governance, control, and risk management

79

207-3

Stakeholder engagement and management of concerns related
to tax79

207-4

Country-by-country reporting

Sustainability Report 2023

79-80

Requirement(s)OmittedReasonExplanation

GRI Sector
Standard
Ref.NoFinancial Services Authority Regulation (POJK) Number 51/POJK.03/2017 and Financial
Services Authority Circular Letter (SEOJK) Number 16/SEOJK.04/2021

GRI Content Indeks
Omission
GRI Standard

GRI 301: Materials
2016

GRI 302: Energy 2016

GRI 303: Water andEffluents 2018

GRI 304: Biodiversity
2016

GRI 305: Emissions
2016

95

Indicator

Disclosure

Page

301-1

Materials used by weight or volume

31

301-2

Recycled input materials used

31

301-3

Reclaimed products and their packaging materials

302-1

Energy consumption within the organization

31
38-39

302-2

Energy consumption outside of the organization

38

302-3

Energy intensity

39

302-4

Reduction of energy consumption

39

302-5

Reductions in energy requirements of products and services

40

303-1

Interactions with water as a shared resource

48

303-2

Management of water discharge-related impacts

48

303-3

Water withdrawal

48

303-4

Water discharge

49

303-5

Water consumption

48

304-1

Operational sites owned, leased, managed in, or adjacent to,protected areas and areas of high biodiversity value outside
protected areas

43

304-2

Significant impacts of activities, products and services on
biodiversity

44

304-3

Habitats protected or restored

42, 44304-4

UCN Red List species and national conservation list species with
habitats in areas affected by operations

44, 89305-1

Direct (Scope 1) GHG emissions

35

305-2

Energy indirect (Scope 2) GHG emissions

35

305-3

Other indirect (Scope 3) GHG emissions

35

305-4

GHG emissions intensity

37

305-5

Reduction of GHG emissions

35

305-6

Emissions of ozone-depleting substances (ODS)

37

305-7

Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air
emissions37

Sustainability Report 2023

Requirement(s)OmittedReasonExplanation

GRI Sector
Standard
Ref.NoFinancial Services Authority Regulation (POJK) Number 51/POJK.03/2017 and Financial
Services Authority Circular Letter (SEOJK) Number 16/SEOJK.04/2021

GRI Content Indeks
Omission
GRI Standard

GRI 306: Waste 2020

GRI 308: Supplier
Environmental
Assessment
2016
GRI 401:
Employment 2016
GRI 402: Labor/
Management
Relations 2016

GRI 403:
Occupational Healthand Safety 201896

Indicator

Disclosure

Page

306-1

Waste generation and significant waste-related impacts

46-47

306-2

Management of significant waste-related impacts

46-47

306-3

Waste generated

45

306-4

Waste diverted from disposal

45

306-5

Waste directed to disposal

45

308-1

New suppliers using environmental criteria

50

308-2

Negative environmental impacts in the supply chain and actions
taken

50

401-1

New employee hires and employee turnover

55

401-2

Benefits provided to full-time employees that are not provided totemporary or part-time employees

55

401-3

Parental leave

402-1

Minimum notice periods regarding operational changes

57
59, 61-62

55, 56403-1

Occupational health and safety management system403-2

Hazard identification, risk assessment, and incident investigation

403-3

Occupational health services

403-4

Worker participation, consultation, and communication on
occupational health and safety

60

60
60, 62403-5

Worker training on occupational health and safety

60

403-6

Promotion of worker health

61

403-7

Prevention and mitigation of occupational health and safety
impacts linked by business relationships

61

403-8

Workers covered by an occupational health and safety
management system

59

403-9

Work-related injuries

61-62, 64

403-10Work-related ill health

61-62

Sustainability Report 2023

Requirement(s)OmittedReasonExplanation

GRI Sector
Standard
Ref.NoFinancial Services Authority Regulation (POJK) Number 51/POJK.03/2017 and Financial
Services Authority Circular Letter (SEOJK) Number 16/SEOJK.04/2021

GRI Content Indeks
Omission
GRI Standard

GRI 404: Training
and Education 2016

Indicator

Disclosure

Page

404-1

Average hours of training per year per employee

58

404-2

Programs for upgrading employee skills and transition assistanceprograms

58

404-3

Percentage of employees receiving regular performance andcareer development reviews

58

405-1

Diversity of governance bodies and employees

56

405-2

Ratio of basic salary and remuneration of women to men

57

GRI 2016 Nondiscrimination 2016406-1

Incidents of discrimination and corrective actions taken

55

GRI 407: Freedomof Association andCollective
Bargaining 2016

407-1

Operations and suppliers in which the right to freedom of
association and collective bargaining may be at risk

57

GRI 408: Child Labor
2016

408-1

Operations and suppliers at significant risk for incidents of child
labor

58

409-1

Operations and suppliers at significant risk for incidents of forced
or compulsory labor58

GRI 410: Security
Practices 2016

410-1

Security personnel trained in human rights policies or procedures

53

GRI 411: Rights ofIndigenous Peoples
2016

411-1

Incidents of violations involving rights of indigenous peoples

54

413-1

Operations with local community engagement, impact
assessments, and development programs

413-2

Operations with significant actual and potential negative impacts
on local communities

GRI 405: Diversity
and Equal
Opportunity 2016

GRI 409: Forced orCompulsory Labor
2016

GRI 413: Local
Communities 2016
GRI 414: SupplierSocial Assessment
2016
GRI 415: Public Policy
2016

97

53, 64-65, 70
64-65

414-1

New suppliers that were screened using social criteria

71

414-2

Negative social impacts in the supply chain and actions taken

71

415-1

Political contributions

80

Sustainability Report 2023

Requirement(s)OmittedReasonExplanation

GRI Sector
Standard
Ref.NoFinancial Services Authority Regulation (POJK) Number 51/POJK.03/2017 and Financial
Services Authority Circular Letter (SEOJK) Number 16/SEOJK.04/2021

GRI Content Indeks
Omission
GRI Standard

GRI 416: Customer
Health and Safety
2016

GRI 417: Marketingand Labeling 2016

GRI 418: Customer
Privacy 201698

Indicator

Disclosure

Page

416-1

Assessment of the health and safety impacts of product andservice84416-2

Incidents of non-compliance concerning the health and safety
impacts of products and services

84

417-1

Requirements for product and service information and labeling

84

417-2

Incidents of non-compliance concerning product and service
information and labeling

84

417-3

Incidents of non-compliance concerning marketing
communications

84

418-1

Substantiated complaints concerning breaches of customer
privacy and losses of customer data

84

Sustainability Report 2023

Requirement(s)OmittedReasonExplanation

GRI Sector
Standard
Ref.NoFinancial Services Authority Regulation (POJK) Number 51/POJK.03/2017 and Financial
Services Authority Circular Letter (SEOJK) Number 16/SEOJK.04/2021

Referensi Sustainability Accounting Standard
Board (SASB) Metals and Mining (2021)
GRI Mining & Metals Sector Specific Indicator

Reference to the Sustainability Accounting Standard Board (SASB)
Metals and Mining (2021)
Page

Biodiversity
MM1

Amount of land (owned or leased, and managed for
production activities or extractive use) disturbed or
rehabilitated44, 89MM2

The number and percentage of total sites identified
as requiring biodiversity management plansaccording to stated criteria, and the number(percentage) of those sites with plans in place

44

Total amounts of overburden, rock, tailings, andsludge and their associated risks
Number of strikes and lock outs exceeding one
week’s duration by country

MM5

58

Number and description of significant disputes
relating to land use, customary rights of local
communities and indigenous peoples

54

MM7

The extent to which grievance mechanism were used
to resolve disputes relating to land use, customary
rights of local communities and indigenous peoples,
and the outcomes

70

Artisanal and Small-scale Mining

Sites where resettlements took place, the numberof households resettled in each, and how theirlivelihoods were affected in the process

71

99

Number and percentage of operations with closure
plans

Sustainability Report 2023

Air emissions of the following pollutants: (1) CO, (2) NOx (excluding N2O), (3) SOx, (4)particulate matter (PM10), (5) mercury (Hg), (6) lead (Pb), and (7) volatile organic compounds(VOCs)

37(1) Total energy consumed, (2) percentage grid electricity and (3) percentage renewable38

EM-MM-140a.1(1) Total water withdrawn, (2) total water consumed; percentage of each in regions withHigh or Extremely High Baseline Water Stress48

EM-MM-140a.2

Number of incidents of non-compliance associated with water quality permits, standards
and regulations

49

EM-MM-130a.1

EM-MM-150a.4

Total weight of non-mineral waste generated

45

EM-MM-150a.5

Total weight of tailings produced

45

EM-MM-150a.6

Total weight of waste rock generated-

EM-MM-150a.7

Total weight of hazardous wastegenerated-

EM-MM-150a.8

Total berat limbah berbahaya yang didaur ulang
Total weight of hazardous waste recycled-

EM-MM-150a.9

Number of significant incidents associated with hazardous materials and waste
management

45

EM-MM-150a.10

Description of waste and hazardous materials management policies and procedures for
active and inactive operations-

EM-MM-160a.1

Description of environmental management policies and practices for active sites

30

EM-MM-160a.2

Percentage of mine sites where acid rock drainage is: (1) predicted to occur, (2) actively
mitigated, and (3) under treatment or remediation

42

EM-MM-160a.3

Percentage of (1) proved and (2) probable reserves in or near sites with protectedconservation status or endangered species habitat

43

Security, Human Rights & Rights of Indigenous Peoples
54

Closure Planning
MM10

33

Biodiversity Impacts

Resettlement
MM9

EM-MM-110a.2

Waste & Hazardous Material Management
54

MM6

MM8

-

Water Management

Local Communities

Number (and percentage) of company operating sites
where artisanal and small- scale mining (ASM) takes
place on, or adjacent to, the site; the associated risk
and the actions taken to manage and mitigate theserisks

Gross global Scope 1 emissions, percentage covered under emissions limiting regulations
Discussion of long- and short-term strategy or plan to manage Scope 1 emissions, emissions
reduction targets, and an analysis of performance against those targets

Energy Management
45-46

Indigenous Rights
Total number of operations taking place in or
adjacent to indigenous people’s territories, andnumber and percentage of operations or sites
where there are formal agreements with indigenous
people’s communities

Page

EM-MM-110a.1

EM-MM-120a.1

Labor/Management Relations
MM4

Description

Air Quality

Effluents and Waste
MM3

Indicators
Greenhouse Gas Emissions

42

EM-MM-210a.1

Percentage of (1) proved and (2) probable reserves in or near areas of conflict

43

EM-MM-210a.2

Percentage of (1) proved and (2) probable reserves in or near indigenous land

54

EM-MM-210a.3

Discussion of engagement processes and due diligence practices with respect to humanrights, indigenous rights, and operation in areas of conflict

52,55

Financial Services Authority Regulation (POJK) Number 51/POJK.03/2017 and Financial
Services Authority Circular Letter (SEOJK) Number 16/SEOJK.04/2021

Reference to the Sustainability Accounting Standard Board (SASB) Metals and Mining (2021)
Indicators

Description

Page

EM-MM-210b.1

Discussion of process to manage risks and opportunities associated with community rights
and interests

48, 53EM-MM-210b.2(1) Number and (2) duration of non- technical delays

48, 53

Community Relations

Labour Practices
EM-MM-310a.1

Percentage of active workforce employed under collective agreements

58

EM-MM-310a.2(1) Number and (2) duration of strikes and lockouts

54

Workforce Health & Safety
EM-MM-320a.1(1) All-incidence rate, (2) fatality rate, (3) near miss frequency rate (NMFR) and (4) average
hours of health, safety, and emergency response training for (a) direct employees and (b)contract employees

62, 64

Business Ethics & Transparency
EM-MM-510a.1

Description of the management system for prevention of corruption and bribery
throughout the value chain

77

EM-MM-510a.2

Production in countries that have the 20 lowest rankings in Transparency International’s
Corruption Perception Index

77

Tailings Storage Facilities Management

EM-MM-540a.1

Tailings storage facility inventory table:(1) facility name, (2) location, (3) ownership status, (4) operational status, (5) construction
method, (6) maximum permitted storage capacity, (7) current amount of tailings stored,(8) consequence classification, (9) date of most recent independent technical review, (10)material findings, (11) mitigation measures, (12) site-specific EPRP

31

EM-MM-540a.2

Summary of tailings management systems and governance structure used to monitor andmaintain the stability oftailings storage facilities

31

EM-MM-540a.3

Approach to development of Emergency Preparedness and Response Plans (EPRPs) for
tailings storage facilities

31

EM-MM-000.A

Production of (1) metal ores and (2) finished metal products-

EM-MM-000.B

Total number of employees, percentage contractors-

Activity Metrics

100 Sustainability Report 2023

Feedback Form

Feedback FormPT Vale Indonesia Tbk Sustainability Report
2023 provides an overview of our sustainability
performance. We look forward to receiving any

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input from you regarding this Sustainability
Report by completing this form and sent by email.

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Name:...............................................................................

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3. Material topic(s) which is(are) the most important to you:(score 1= most important, 10=least important) Post-mining Rehabilitation 		( ) Emission Control 			( )...............................................................................

 Energy Usage			( )Institution/Company:

 Waste Management			( ) Water and Effluents 			( )Profession:................................................................................

Stakeholder Groupto which you belong: Occupational Health and Safety (OHS) ( ) Local Community 			( ) Diversity, Equity and Inclusion( ) Investor

 Business Ethics 			( ) Government

 Economic Performance		( )Thank you for your feedback.
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form to the contact listed inthis this report by e-mail at
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101

Sustainability Report 2023

4. Kindly provide your inputs/suggestions/comments about this report:…………………………………………………………………………………………………………
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Kebijakan dan Strategi Keberlanjutan

PT Vale Indonesia Tbk
Sequis Tower 20th Floor, Unit 6 & 7
Jl. Jenderal Sudirman Kav. 71
Jakarta 12190, Indonesia
Tel: +62 21 524 9000
Fax: +62 21 524 9020
www.vale.com/indonesia

102 Sustainability Report 2023