Theme:

Embracing Our
New Purpose

Table of Contents

Awareness of taking care of our earth is the
responsibility of all of us. PT Vale is aware of thisand continues to improve its energy efficiency andreducing emissions in all its activities to reach ourgoal, towards net zero emission. We plan, set targets
and goals, as part of our efforts to keep our earth
sustainable. “Embracing Our New Purpose” will
explain how we have moved towards realizing ourgoals, how we continue to inspire others by what wehave been doing, both for now and for the future.

Environment

04

Sustainability
Performance Highlights

25

Environmental Sustainability
Management Performance

06

CEO Message

26

10

About PT Vale
Indonesia Tbk

Towards Net Zero
Carbon Emissions

31

16

About the 2021
Sustainability Report

Energy Management and Low
Carbon Economy Support

33

Post Mining Rehabilitation

20

Sustainable Development
Policy and Strategy

35

Sustainable Environment
Inspiration

GovernanceSocial39

Social Sustainability
Management Performance

All measurements for nickel in matte and other minerals arereported in metric tons. One metric ton is equal to 2,204.62
pounds and is expressed as “ton”.

39

Security, Safety and
Health in the Workplace

Forward-looking Statements

45

Diversity and Equal
Opportunities

47

Other Information Disclosure

48

Empowered and Prosperous
Communities

Notes for Report ReadersThis document may contain certain plans, projections,strategies, and objectives of the Company that are notstatements of historical facts and would be treated as
forward-looking statements under applicable law. Forwardlooking statements are subject to risks and uncertainties
that may cause actual events, and the Company’s future
results, to be different than expected or indicated by suchstatements. No assurance can be given that the results
anticipated by the Company, or indicated by such forwardlooking statements, will be achieved.

2

Sustainability Report 2021

Harris Gunawan

Harris Gunawan

53

Governance
Sustainability
Management
Performance

57

Sustainability Risk
Management Process
Effectiveness57

Economic Performance
To Build The Nation

Our Commitment
to Energy Transition

Our Commitment toVillage Empowerment

Our Commitment
to Gender Equality

Harris Gunawan

Harris Gunawan

Harris Gunawan

For 53 Years, We Have Been Operating
In Our Motherland, Indonesia

We Build the Self-Reliance of
The Indonesian Community

We Respect Human Rights by Implementing
A Commitment to Gender Equality

From the beginning we haveused sustainable mining
practices, and energy transition.
The Company operates three
Hydroelectric Power Plants(PLTA) with a total capacityof 365 Megawatts, which
are capable of avoiding CO2
emissions by more than 1
million tons of CO2eq per year
compared to coal-fired plants.

Through the Community
Empowerment andDevelopment Program (PPM),
by following a Self Reliance
Rural Area Development(PKPM) approach, we
continue to develop
villages together with thesurrounding communities.

At the Annual General
Meeting of Shareholders(AGMS) on April 29, 2021,
the shareholders appointed
Febriany Eddy as CEO andPresident Director of PT
Vale. This confirms PT
Vale’s strong commitment
to proportional gender
diversity, by placing female
employees in various
positions.

During our operational
activities, we pay attention tobalancing the economic, socialand environmental aspects.
Despite it promising a profit
of US$40 million per year, we
decided to cancel our coalconversion project, as it would
have increased emissions by
200 thousand tons of CO2eq
per year. Instead, we plan tobuild a processing plant in
Bahodopi in Central Sulawesi
using natural gas as an energy
source. We have signed the3

Sustainability Report 2021

Bahodopi Nickel Processing
Facility Project Cooperation
Framework Agreement (PCFA).
The plant in Bahodopi will bea nickel processing plant withthe lowest carbon emissions
per tonne of nickel after
Sorowako, South Sulawesi.
We continue to be committed
and carry out progressive
reclamation of post-mining
land and plant more trees tominimize the impact of mining
activities and maximize the useof overburden and topsoil tosupport successful reclamation.
A nursery facility supports thisreclamation program on 2.5
ha in Sorowako. This nursery
facility can produce 700,000
seedlings per year, which
exceeds the company’s needs,
so the excess is channeled to thegovernment and the community
to support environmental
conservation efforts.

The synergy and cooperation
is carried out following thesigning of a Memorandumof Understanding
with the Ministry ofVillage, Development of
Disadvantaged Regions andTransmigration (PDTT), as

well as other stakeholders
to optimize PPM and PKPM.
Implementation of theconsultation is based on
the procedure. There are 10
development areas in the
Nuha, Towuti, Wasuponda
and Malili sub-districtsin East Luwu Regency,
South Sulawesi. These
areas are used for tourism,
integrated agriculture(agropolitan), pepper
plantations, and others.

Although there is only
one woman at the Boardof Directors level, theposition of Febriany Eddy
has a very strategic role.
The appointment of

Febriany Eddy was not only
meaningful for PT Vale,within the scope of national
gender equality, but her
presence at the top of PT
Vale’s leadership was alsoa monumental milestone
in empowering women in
the Indonesian extractive
industry. Based on the2020 National Labor Force
Survey, the proportionof female workers in theextractive sector was only
8.14%. Therefore, we willcontinue to provide equal
opportunities for female
workers in PT Vale.

Sustainability Performance Highlights

Sustainability Performance Highlights
Emission Control Performance

Economic Management Aspect

Energy Used Performance[POJK51-2.a.1][POJK51-2.a.2][POJK51-2.a.3][POJK51-2.a.5] [EM-MM-000.A]

Description

Unit

2021

2020

SO2 Intensity

2019(Ton SO2/Ton Ni)

GHG Emissions
Intensity

GHG Emissions
Reduction(Ton CO2eq/Ton Ni)(Ton CO2eq)

Production Performance
Nickel in Matte Production
Proven Ore Reserves
Probable Ore Reserves

Ton
Million Tons
(DKP)

65,38872,23771,025

65.7

61.9

66.2

46.9

42.1

41.4

0.77

0.79

Revenue953,174

764,744782,012

Total Economic Value Distribution

872,091

760,475*

815,864

83,797

8,741*(29,093)165.78

82.82

57.40

Thousand USD

Net Profit-186,235

̌

Unit

295

295

27.91

111,947

28.15

̂

2019
0.72

Involvement of Local Suppliers
Number of Local Suppliers

28.52

2020

Economic Performance

Total Economic Value Retained

̂

2021

295

Note : *Restatement of the 2020 Sustainability Report [2-4]Description

Unit

2021

2020*

2019*

Energy Usage

GigaJoule28,268,297

30,628,679

30,336,764

Energy Intensity

GigaJoule/Ton Ni

432.31424.00427.13HSFO Usage Intensity

Barrel/Ton Ni

19.74

18.14

20.04

Coal Usage Intensity

Ton/Ton Ni

5.73

5.90

5.23

HSD Usage Intensity

Liter/Ton Ni

1,094.92

1,068.36

1,224.40

Gasoline Usage Intensity
Power (PLTA – HydroelectricPower Plant) Usage Intensity

Liter/Ton Ni

1.63

3.50

5.38

MWh/Ton Ni

34.94

33.22

33.19

Information :*Restatement of the 2020 Sustainability Report based on the results of data verification. [2-4]-150,036

Waste Management Performance
Description

Unit

2021

2020

2019

Non-Industrial Domestic Waste Generated

Ton

1,001

1,278

1,810

Non-Industrial Domestic Waste Segregated for Recycling

%

10.17

7.03

6.73

Industrial Non-Hazardous Waste

Ton

8,721

7,454

12,222Land and Biodiversity Management Performance

Environmental Management Aspect

Description

2021

2020

2019

283.74176.2481.09

3,249.11

3,012.44 4,249.45

Trees/Ha

219,595

104,333

79,372

Local Tree TypeTrees

10,761

31,837

24,251

Endemic Tree TypeTrees

22,206

11,14010,761[POJK51-2.b.1][POJK51-2.b.2][POJK51-2.b.3][POJK51-2.b.4]

Unit

Rehabilitated Land Area
Accumulated Area of Rehabilitated and Reclaimed Land

PROPERGREEN

PROPERBLUE

Total Trees Planted

PROPERGREEN
Harris Gunawan

2021

2020

2019

Renewable Energy Used
Description
Hydroelectric Power Plants

4

Sustainability Report 2021

Ha

Unit

2021

2020

2019

Unit

7

7

7

MW

365

365

365

Sustainability Performance Highlights

Sustainability Performance Highlights
Social Management Aspect
Occupational Health, Safety, and Environment[POJK51-2.c]Donations and Additional Assistance

Health Promotion Activities in 2021
Total Participants
Program NamePT ValeContractors

Total

Delivering health education: Drug Prevention,
Dangers of Smoking

17,2860

17,286

Occupational Awareness of HIV/AIDS

11,524

0

11,524

Healthy Life Education Program Podcast:
Chronic diseases

25,929025,929Ergonomy Education

11,524

0

11,524

Delivering Education : Confirmation of COVID-19

43,215043,215

Nasopharyngeal Swab Training for health workers

23,04826

23,074

Health Share: How to make masks protect you more

14,4050

14,405World TB Day, March 24, 2021

14,4050

14,405

Health Share: Beware of Dengue Fever

20,167

0

20,167

Health Day Campaign " No Health No Life " Healthy mind,
Healthy Body,Productive people!

1,500

887

2,387

Description

Unit

2021

2020

2019

Employee OHS Training

Hours

64

48

16

2021

%

0.70

0.51

0.53

Thousand
USD

Safe Working

Hours

5,006,592

9,571,366

4,881,030

Lost Work Days

Days

170

38

88

Environment Training

Hours

136

120

80

Recordable Injury Frequency Rate

Description

Unit

2021

2020

2019

Number of Programs/Activities

Unit

54

28

47

Million USD

2.6

4.1

3.4

Villages

38

38

38

Individuals

43,20521,00038,000Estimated Number ofBeneficiaries[POJK51-5]

Violation Reporting Handled Through Vale Whistleblower Channel (VWC)
Description

Unit

2021

2020

2019

Total Employees

People

2,966

3,006

3,044

Total Training

Hours

121,781

104,842

125,070

Hours/Person

41

35

42

Training Hours per Employee

Description
Number of Allegations
Received
Percentage of Valid
Allegations

5

Sustainability Report 2021

2020
Thousand
USD

153

Governance Aspect

Total Employees and Training

79

Integrated Community Empowerment and Development Program

Total Funds

Unit

2021

2020

2019

33

74

24

47

85

99

92

3,4

39

On March 10, 2021, PT Valelaunched an update to its Code of
Conduct.
The document contains the Company’s
ethical principles, based on our Values
and Purpose. This book guides
everyone working on behalf of PT
Vale on how to act with integrity,
resolve dilemmas, and always
make the best ethicaland responsible
decisions.

2019
ThousandUSDCEO Message

CEO Message[POJK51-4.a][POJK51-4.b][POJK51-4.c][2-22]“2021 marked a beginning of a new era for PT Vale, an era of growing ourbusiness driven by our new Purpose - We exist to improve life and transform thefuture. Together.
Febriany Eddy
CEO and President Director

The global decarbonization is creating significant projected increase in demandof nickel, one of the essential minerals required for the transition to cleaner
energy options. As nickel is part of the solution to climate change issues, we
believe it is important to ensure that our nickel is mined and processed throughsustainable processes, particularly low carbon. We are committed to reduce
absolute GHG emissions by 33% in 2030, and towards net zero emission in 2050.”

Dear stakeholders,
On behalf of the Board of Directors, I would like to express
our highest appreciation to all stakeholders who has been
supporting us in overcoming our challenges and delivering
good performance in 2021 . This report provides the Company’ssustainability performance and commitment to deliver PT
Vale’s new purpose.
The theme of our report is: Embracing Our New Purpose.

Harris Gunawan

In March 2021 we launched our new purpose, an ambitious
yet noble purpose, “We exist to improve life and transformthe future. Together.” This new purpose is aligned with therole that we see PT Vale will play in supporting the global
decarbonization of our planet.
Our Purpose is built based on four pillars: serving society, givingback to all; working together, learning together; use of ourcapacity to create something extraordinary; transforming the6

Sustainability Report 2021

future, taking care of present. The four pillars fully embracesustainability, it will drive the way we manage our current
operation and grow our business.
We are committed to listen, learn and work closely with
our stakeholders to deliver our sustainability agenda andultimately achieving the Sustainable Development Goals (SDGs).

Policies Responding to Sustainability Challenges
In PT Vale, we incorporate sustainability into our businessby building economic, social and environmental legacies andmitigating the impacts of our operation. Therefore, we seek
to build strong and lasting relationship with our stakeholders,invest in mitigating the effects of our activities, work withhigh ethical standards, have transparent management andactively contribute to advances related to the environment,
biodiversity and sustainable development.
The main challenge throughout 2021 was to ensure continuity

CEO Messageof our operation and sustainability programs during theprolonged COVID-19 pandemic while upholding our company’svalues, particularly Life matters most. We work closely with
communities and government in managing this challenge,
thus we turned this challenge into opportunity to strengthen
our collaboration with our stakeholders. We are grateful that
we were able to work through this challenge with minimal
disruptions to our operation. Throughout 2021, we havevaccinated almost all our workers and their families. At thesame time, we also support the local government’s steps incontrolling the COVID-19 pandemic in the community, we haveprovided various assistances to local government to increase
their community vaccination coverage and to provide healthsupport facilities.
Furthermore, we saw climate change become more and moredepressing issues. The world is not doing enough. Thus, weannounced commitment to reduce scope 1 and 2 absolute GHG
emissions by 33% in 2030, and towards net zero emission in
2050. In fact, we already started the work in 2019 but decided
to make public announcement to our commitment last year
when we attend UNFCC conference in Glasgow, UK. We hopeto encourage other companies to join forces to support low
carbon economy.

Implementation and Achievement of Sustainability
Performance
In 2021 we achieved several sustainability performances. In
our operational activities, we pay attention to the balance ofeconomic, social, and environmental aspects.
We are grateful that during 2021 we did not have any serious

7

Sustainability Report 2021

incidents and we have had no fatalities for the past six years,
thanks to the hard work, dedication and commitment of ourleadership team, employees and contractors.
We received Green PROPER, a recognition from government
for companies who have delivered environmental management
and practice `beyond compliance’. Among the 186 companies
who received Green PROPER or 7% of the total 2,593
participants, PT Vale is the only nickel mining and smelting
company. This recognition was obtained by conducting
environmental management beyond what is required (beyond
compliance), including implementing reuse-reduce-recycle (3R)
waste, implementing Life Cycle Assessment (LCA), reducing
the burden of water pollution, community empowerment,sensitivity, and disaster response in response to the COVID-19
pandemic.
In the area of community empowerment and development,
PT Vale is implementing the Community Empowerment
and Development Program (PPM) in collaboration with the
Ministry of Village, Development of Disadvantaged Regions
and Transmigration, the Provincial Government of South
Sulawesi, and the East Luwu Regency Government. The
cooperation programs include the PPM and the Self Reliance
Rural Area Development (PKPM), fostering and strengthening
the capacity of government institutions at the village and subdistrict levels, fostering and strengthening the capacity of theInter-Village Cooperation Agency (BAKD), as well as fosteringand strengthening the capacity of the agency village-owned
enterprises (BUM-Des) and/ or village-owned enterprises(BUM-Desma).

In the financial aspect, the Company’s profit for the year 2021
was US$165.80 million, an increase of 100.19% or US$82.98 million
compared to the net profit in 2020 which was US$82.82 million.
The increase in net profit margin was driven by higher revenue
in 2021 due to the 36% increase in nickel prices, coupled withstrong cost discipline.

Sustainability Performance Achievement Strategy
Sustainability is part of who we are and what we do. Our
company foremost value is Life matters most, we will always
prioritize the health and safety of our workers and community
where we operate. We will minimize our environmental
impacts and bring the most optimum value to all stakeholders.
Consistent with our Purpose pillars, we aim to use our capacity
to create positive extraordinary impacts, by learning andworking together with society and return the value we createdback to society. We believe we will transform and create better
future for all, while taking care of present.
To ensure the successful execution of our sustainability strategy,
we need to build a strong organizational culture supportedwith a strong management model. In 2021 we embarked on
cultural transformation in our organization to develop a cultureof “Learning Together”. Our multi-year Diversity and Inclusion
programs which started in 2020 will complement well our
cultural transformation. We aim at increasing participationof women, people with disability and local talents in our
workforce and leadership, We believe in the power of learningand togetherness in a diverse and inclusive organization. Ourorganizational transformation is backed by our management
model, the Vale Production System (VPS).

CEO Message

Maintaining Business Prospects and Future Sustainability
The global decarbonization is creating significant projected increase in demandof nickel, one of the essential minerals required for the transition to cleaner
energy options. As nickel is part of the solution to climate change issues,
we believe it is important to ensure that our nickel is mined and processed
through sustainable processes. This projected increase in demand is a unique
opportunity for PT Vale, as we have large, high quality ore bodies within
our Contract of Works (“COW”) backed with our long-term track record ofsustainable mining practices. We believe this is the best time to grow ourbusiness. Hence, this marked a beginning of a new era for PT Vale, an era of
growing our business driven by our Purpose.
We are moving fast with our commitment to grow our business driven by
our Purpose. During 2021 we made good progress with two of our greenfieldprojects in Bahadopi and Pomalaa. Particularly for Bahadopi, in mid of the year,
we signed a Project Framework Cooperation Agreement (“PCFA”) with ourpartners, China Baowu Tisco and Xinhai to jointly build a Ferronickel processing
facility in Central Sulawesi, with annual capacity of approximately 73,000
metric tonnes of nickel. We appreciate that our partners have joined us in our
low carbon agenda and will not use coal fired power plant. This smelter will
be second lowest carbon intensity nickel plant in Indonesia, after Sorowako
plant. We believe this agreement is evidence of alignment of our sustainability
commitments, which is extremely important for PT Vale.
For Sorowako operations, we are executing our multi-year de-bottlenecking
programs to ensure we reach our optimum production capacity, sustainably.

Harris Gunawan

8

Sustainability Report 2021

In addition to expanding our business, we also put a strong focus
to reduce our carbon emissions. With hydroelectric power facilities,
our Sorowako nickel smelter today already is among the lowest
carbon intensity nickel in Indonesia. Despite this, we believe that it isimportant for us to continuously work to further reduce our carbon
intensity. In November 2021, we attended COP-26 in Glasgow, UK.
during which we announced our carbon reduction roadmap, our goal
is to reduce our scope 1 and 2 carbon emission by 33% by 2030 andachieving net zero in 2050. We are mindful that it is very challenging
to deliver our ambitious agenda sustainably, thus we humbly ask forsupport and collaboration from all stakeholders.
Finally, on behalf of the Board of Directors, I would like to thankagain all the stakeholders who has been supporting and working
with us to deliver our Purpose. Let’s walk together to improve life
and transform the future, together!

Jakarta, May 2022
Febriany Eddy
CEO and President Director

CEO Message

Board of Directors

Statement of theBoard of Directors
Regarding
Responsibility
for the 2021
Sustainability
ReportWe, the undersigned, hereby statethat all information in the PT Vale
Indonesia, Tbk 2021 Sustainability
Report has been disclosed completely
and assume full responsibility forthe accuracy of the content of thereport in accordance with POJK 51/
POJK.03/2017.

FEBRIANY EDDY
President Director &Chief Executive Officer

ADRIANSYAH CHANIAGOBERNARDUS IRMANTO

Vice President Director

Director

DANI WIDJAJAVINICIUS MENDES FERREIRA

Director

Director

This statement is hereby made in all
integrity.

9

Sustainability Report 2021

About PT Vale Indonesia Tbk

About PT Vale Indonesia Tbk[POJK51-3.b] [POJK51-3.c.3]

Harris Gunawan

Our Goals andValuesLife matters most.
We believe that life is more important thanmaterial results and goods, and we incorporate
this vision in our business decisions.

[2-23] [POJK51-3.a]We started to build a
new culture at Vale,which is reflected in
the sentence: Learning
Together. Our goalssummarize why weexist, and our values,
and updates to ourcore behaviors reflect
the changes we’ve
experienced. We
continue to socialize thisnew culture.
[2-12] [POJK51-6.a]Harris Gunawan

Act with integrity.
We build relationships of trust and we promote
open and transparent communication,acting with respect and integrity.

We exist to
improve thequality of life andbuild a better
future. Together.

A great company
recognized by society
for being:• Benchmark in Safety;

Value the people who build our company.
We trust people and together we build a work environment
admired by all. We seek lifelong learning and personal growth.

Our Pur pose

Va lue s

Why dowe exist?

What dowe believe in?

Learning
Together

Key Behaviors[2-23][POJK51-3.a]How dowe act?

Make it happen.
We are engaged, responsible and disciplined about
generating results and overcoming challenges. We act inpursuit of the excellence, being sustainable and reliable.
Respect our planet and communities.
We are committed to economic, social and environmental
development in our business decisions.

• Obsession with safety• Ownership for the• Open and transparent• Active listening

and risk management.
dialogue.

• Empowerment withwholeand engagementwith society

accountability.

• Best in class reliable
operator;• Talent driven

organization;• Leader in sustainable
mining;• Reference in creating
and sharing value.

O ur Am bit ion

What dowe look for?

O ur Foc us

How dowe act?

• Safety• Vale Production
System (VPS)• People• Innovation• Sustainability

Harris Gunawan

10

Sustainability Report 2021

Harris Gunawan

About PT Vale Indonesia Tbk

The Company
at A Glance

Operational
Areas

Company Name [2-1a]
Legal Name:PT Vale Indonesia Tbk
Known as: PT Vale
Legal Form and Ownership[2-1b] [POJK51 3.c.3]

Legal Entity Status: Public
Limited Liability Company
Listed on the Indonesia Stock
Exchange (IDX) on May 16, 1990›

43.79%

20.64%

Vale Canada
LimitedPublicStock Code: INCO
Head office location and address :20.00%

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

PT Indonesia
Asahan Alumunium(Persero)[2-1c] [POJK51-3b]

0.54%Country where Company operates

Vale Japan
Limited[2-1d] [POJK51-3.c.4]

Republic of Indonesia
More detailed information can befound on the Company’s website
or in the PT Vale Indonesia Tbk
2021 Annual Report and can refers
to website http://www.vale.com/
indonesia/EN/aboutvale/at-aglance/Pages/default.aspx.
[2-6] [POJK51-3.f]

11

Sustainability Report 2021

15.03%
Sumitomo Metal
Mining Co., Ltd

PT Vale’s operatingareas are in Sulawesi,
Indonesia. The
Company does not haveoperational areas inother countries. Nickel
ore mining activities
and nickel in matte
production are carriedout in Sorowako Block,
East Luwu Regency,
South Sulawesi.
Production results are
sold to Vale Canada
Limited (VCL) and
Sumitomo Metal Mining
Co. Ltd (SMM).

Operational Areas and Contract of Work Areas [2-1]
RegionContract of Work Area (Ha)%South Sulawesi

70,566

59.79

Central Sulawesi

22,69919.23

Southeast Sulawesi

24,752

20.98

Nickel in Matte Sales Volume in 2021
Sales Volume(Tons)

Percentage

Vale Canada Limited

53,26580%

Sumitomo Metal Mining Co.Ltd

13,35020%

Total66,515100%

Consumer[2-1] [2-6] [POJK51-3.c.4]

Activities, Supply Chain, andOther Relevant Business
Relationships
Our scope of activities as stated in the Company’s
Articles of Association is mining, wholesale trading,transportation, electricity supply, real estate,
wastewater management, waste management andrecycling, and remediation activities. In the 2021 fiscal
year, the Company’s activities included nickel ore
mining operations, nickel in matte production andnickel matte sales. There were no significant changes
in the Company’s activities during 2021 compared tothe previous period. [2-6a] [POJK51-3.d] [2-6d]

2021

78.32%
2020

75.21%
2019

70.98%

About PT Vale Indonesia Tbk

Activities, Products and Services, Market
Share, and Other Relevant Business
Relationships [2-6b][2-6c]

PT Vale Business Process
and Supply Chain Activities [2-6a]

Wet OreStockpile
Activity

Products
and Services
MarketShare

12

Sustainability Report 2021

Nickel ore mining
operations are carried out
in Sorowako, East Luwu
Regency, South Sulawesi.
Mining activities uses
an open-pit concept, by
excavating layers of soil
containing high-grade
nickel ore (saprolite) using
excavators, and thenprocessing it at screening
stations.

The production process
takes place at theprocessing facility
in Sorowako. The
Company has a mineralprocessing plant capableof producing about
240 tons of nickel inmatte every day. The
processing plant facility
is equipped with fourelectric furnaces.

Nickel ore

Nickel in matte

Sales of nickel in matte
are carried out underlong-term contracts with
Vale Canada Limited andSumitomo Metal Mining
Corp, and are denominatedin US$, based on the London
Metal Exchange (“LME”)
price. All nickel matte is soldand shipped monthly to
Japan using vessels under
VCL’s responsibility.

From Nickel
Ore To Nickel
In Matte

Dried Ore
Storage

Reduction
Kiln(5)
Furnace
Matte

Electric
Furnace(4)

Furnace
Slag

Nickel in matte

The total volume of nickel in matte production in 2021 was

65,388 tons.

Dryer Kiln
(3)

Converter
Slag

Converter(3)

Nickel Matte

ShipmentAbout PT Vale Indonesia Tbk

Employees[POJK51-3.c.2]

Throughout 2021, we did notlay off any employees (PHK)even though the challenges andbusiness conditions were very
dynamic during the COVID-19
pandemic. On the other hand,
PT Vale recruited 89 new
employees. All of them workin Indonesia, with placements
in South Sulawesi, Central
Sulawesi, Southeast Sulawesi,
and outside Sulawesi. In linewith our management policy,
the Company does not employ
part-time employees.
[2-7][2-7a][2-7b][2-7d][2-7e]

The total number of employeesof PT Vale until 2021 is 2,966
and most of the employees are
local residents who come fromthe East Luwu Regency, mainly
from 4 empowerment areas.
The number reached 2,570
people or 86.6% of the total
workforce of PT Vale. A totalof 388 employees or 51.8% of
the senior staff is held by local
workers.
[202-2] [EM-MM-210b.1][EM-MM-000.B]

13

Sustainability Report 2021

Male

Female2,710(91.37%)

Total

256
(8.63%)

2,966

Number of Employees in 2021
Based on Gender

Number of Employees in 2021 by
Gender and Placement Area [2-7a]

Number of Employees in 2021 Based on
Employment Status and Gender
Male

Employment Status

Total

Female

%

Total

%

Total
Total

Male

Placement%

Female

Total

Total

%

Total

%

Total

%

Permanent Employees

2,682 90.4 253

8.5 2,935 98.7

Jakarta

41

1.4

21

0.7

62

2.1

Contract Employees

28

0.9

3

0.1

1.0

Makassar

3

0.1

2

0.1

5

0.2

Total

2,710 91.4

256

8.6 2,966 100

Sorowako

2,666 89.9

233

7.9 2,899 97.8

Total

2,710 91.4

256

8.6 2,966 100

31

Number of Employees in 2020 Basedon Employment Status and Gender
Male

Employment Status

Total

Female

Total

%

Total

%

Total

Permanent Employees

2,727 90.7

252

8.4 2,979 99.1

Contract Employees

22

0.7

5

0.2

Total

2,749 91.4

257

8.6 3,006 100

27

%

0.9

Number of Employees in 2019 Based on
Employment Status and Gender
Employment Status

Male
Total

Permanent Employees

FemaleNumber of Employees in 2020 by
Gender and Placement Area [2-7a]

Total

%

Total

%

Total

%

2,780 91.3

243

8

3,023

99.3

Contract Employees

18

0.6

3

0.1

21

0.7

Total

2,798 91.9

246

8.1

3,044

100

Male

Placement

Female

Total

Total

%

Total

%

Total

%

Jakarta

44

1.5

21

0.7

65

2.2

Makassar

4

0.1

2

0.1

6

0.2

Sorowako

2,701 89.9 234

7.8 2,935 97.7

Total

2,749 91.5

8.5 3,006 100

257

Number of Employees in 2019 by
Gender and Placement Area [2-7a]
Male

Placement

Female

Total

Total

%

Total

%

Total

%

Jakarta

35

1.1

16

0.5

51

1.6

Makassar

3

0.1

2

0.1

5

0.2

Sorowako

2,760 90.7 228

7.5

2,988 98.2

Total

2,798 91.9

8.1

3,044 100

246

About PT Vale Indonesia Tbk

Number of Permanent Employees in 2021 by Gender and Placement Area [2-7a]
2021

Placement

2020

Number of Employees Based on Education Level

2019

Education

Male

Female

Total

Male

Female

Total

Male

FemaleTotal

Jakarta

34

21

55

35

19

54

30

16

46

Makassar

2

2

4

3

2

5

3

2

Sorowako

2,666

230

2,876

2,689

231

2,920

2,747

Total

2,710

253

2,935

2,727

252

2,979

2,780

2021

2020

Male

FemaleMale

FemaleDoctorate

1

0

1

0

7

0

5

Master’s degree

45

13

48

13

42

10

225

2,972

Bachelor’s degree

607

136

577

121

559

110

243

3,023

Diploma

287

59

295

72

297

73

High School

1,740

48

1,795

51

1,856

53

Junior High School/Equivalent

25

0

25

0

28

0

Elementary School

0

0

1

0

1

0

Expatriates

5

0

7

0

8

0

2,710

256

2,749

257

2,798

246

2019

Female

Total

Male

Female

Total

Male

FemaleTotal

Jakarta

7

0

7

9

2

11

5

0

5

Makassar

1

0

1

1

0

1

0

0

0

Sorowako

20

3

23

12

3

15

13

3

16

Total

28

3

31

22

5

27

18

3

0

Total

Age Group

2,966

3,044

2020

2019

2021

Position
2019

3,006

Number of Employees Based on Position and Gender

Number of Employees Based on Age Group
2020

2019

Female

Male

2021

2020

Male

Number of Contract Employees in 2021 by Gender and Placement Area [2-7b]

Placement

2021

Male

FemaleMale

FemaleMale

FemaleManagement

4

1

6

1

5

1

Senior General Management

16

1

13

0

10

0

Male

FemaleMale

FemaleMale

Female

>50

484

15

433

14

395

13

General Management

74

9

71

7

57

6

31-50

2,137

213

222

224

2,300

219

Senior Staff

343

45

321

42

267

32

<30

89

28

94

19

103

14

Staff

678

117

606

101

596

92

2,710

256

2,749

257

2,798

246

Non-Staff

1,595

83

1,732

106

1,863

115

2,710

256

2,749

257

2,798

246

Total

2,966

3,006

3,044

Total

2,966

3,006

3,044

Data source: Master list of employee data and based on individuals recorded as of December 31, 2021. [2-7c]

14Sustainability Report 2021

Harris Gunawan

About PT Vale Indonesia Tbk

External Initiatives, Certification,
and Association Membership

Other Workers who are not PT Vale employees

Association Membership [POJK51 3..e][2-28] [POJK51-3.e]In our locations there are other workers who are not employeesof PT Vale. They include contractors/vendors/supplier workers,
who work based on agreed contracts. However, this report does
not include the number of other employees who are not PT Vale
employees, given the dynamic movement among them. [2-8][2-8a][2-8c]

Association

Indonesia BusinessCouncil for Sustainable
Development

Indonesia Business Council on
Sustainable Development (IBCSD)

Role
Febriany Eddy as
Vice Chairman

Nickel InstituteInternational Commission on Large Dams (ICOLD)

Organizational Scale [2-6] [POJK51 3.c][POJK51 3.c.1]

The Employers' Association of Indonesia (APINDO)
Education

Unit

2021

2020

2019

Total Employees

People

2,966

3,006

3,044

Total Operating
Areas

Area

Revenues

1
953.171764.741
782.01• Total Equity

MillionUS$

318.37292.92Indonesia
Business Coalition
for Women
Empowerment

2,020.39

Women in
Mining andEnergyIndonesia Corporate Secretary Association (ICSA)
Indonesia Business Coalition for
Women Empowerment (IBCWE)

Validity

Issuing
AgencyOctober 2021 toOctober 2024

BureauVeritas

1,941.69

2,472.83

2,317.31

2,222.69

Total Net Profit

165.78

82.82

57.40

66,61572,846

72,044

ISO 17025

66.2

General Requirements forCompetency Laboratories
Testing and Calibration

Proven Ore
Reserves
Probable Ore
Reserves

65.7
Million Tons
(DKP)

61.9

Environmental
Management System
Number of Certificate:ID004085

October 1, 2018
National
to September Accreditation30, 2022
Committee

Note :

46.9

42.1

41.1

Details regarding the specific scope of certification
can be found on the PT Vale website.
http://www.vale.com/indonesia/EN/sustainability/
our-approach-in-indonesia/Pages/policies.aspx

15

Sustainability Report 2021

National
MemberIndonesian Public Companies Association

281.00Total Assets

Ton

Extraordinary
Member

Stock Issuer Association

ISO 14001-2015

Nickel in Matte
Product Sales

MemberForum Komunikasi Pengelolaan Lingkungan
Pertambangan Indonesia (FKPLPI)
Name of Certification

2,154.46

International

Indonesian Mining Association (IMA)

Total Capitalization• Total Liabilities

Scope

External Awards and Appreciation
Green PROPER from the Ministry ofEnvironment and Forestry (MoEF).
Gold Award at the 2021 Asia Sustainability
Reporting Rating (ASRRAT), from the National
Center for Sustainability Reporting (NCSR).
Bronze Award (Bronze) in the Asia Sustainability Reporting Awards(ASRA) category for the Best Sustainability Report in Asia (Digital).
Bronze (Bronze) at the Global Corporate Sustainability Awards(GCSA) 2021, from the Taiwan Institute for Sustainable
Energy (TAISE), in the Sustainability Reports category.
Indonesia SDGs Award (ISDA) 2021
Aditama award from the Ministryof Energy and Mineral ResourcesAbout Sustainability Report

About
Sustainability Report
Basis and Reference
for Issuing Sustainability
Reports
1. 2007 Law No. 40 concerning Limited
Liability Companies, which requires
the Company to submit a reporton their Social and Environmental
Responsibility (SER) implementationin the Annual Report.
2. OJK Regulation (POJK) No.51/
POJK.03/2017 concerning the
Implementation of Sustainable
Finance in Financial Services
Institutions, Issuers, and PublicCompanies
The disclosure of information in the
OJK Regulation has been adjusted to
the Company’s business in the mineralmining sector. This report does
not disclose material information
pertaining to customer satisfaction
surveys, use of environmentallyfriendly materials, environmentallyfriendly products and matters related
to the implementation of Sustainable
Finance, including problems faced,financing targets, and productdevelopment responsibilities. In
addition, there were no spills as aresult of the Company’s operations.

3. Global Reporting Initiative(GRI) 2021 standards, with
conformity: ‘reference to the
GRI Standards’.
4. Sustainability Reporting
Guidelines & Mining andMetals Sector Supplement(MMSS) GRI-4.
5. Sustainability AccountingStandards Board (SASB) Metals
and Mining 2021.
6. Task Force on Climate-related
Financial Disclosure (TCFD).

Harris Gunawan

16

Sustainability Report 2021

Entity, Period, andFrequency of Reporting
Information in the Company’s Financial Statements is
submitted in a consolidated basis. The sustainability
performance information in this Report is only from PT
Vale, as the Company does not have any subsidiaries. [2-Stakeholder Engagement
The Company has
identified internal andexternal stakeholders.

2a][2-2b][2-2c]

The reporting period for sustainability performance andFinancial Statements is January 1, 2021 – December 31,
2021. The Company publishes a report once a year, andthe previous 2020 Sustainability Report was published on
March 31st 2021. [2-3a][2-3b][2-3c]

Accuracy

Comparability

The report has gone
through a verification
process to ensure theinformation accuracy.

The report is presented
for different periods toshow the impact of theCompany’s activities
and their managementin each period,

Balance
The report is submitted
in a balanced mannerand includes the positive
and negative impacts of
the Company’s activities,
and their management.

Materiality
Material topics are
determined throughsurveys, involving internaland external stakeholders.

ClarityCompletenessThe report is presented
clearly in Indonesianand English, so thatstakeholders can better
understand it.

The Company discloses
information according
to the criteria/standards
referred to.

Sustainability
Context
Disclosure of impact
management information
is delivered in the context
of environmental,social or governance(ESG) sustainability.

Punctuality
The Company sets a timeline
for preparing reports, sothat the decision-making
process can be carried out
quickly and accurately.

Verified
The entire process ofcollecting, recording,compiling, and analyzing
information is carriedout correctly, so thatwhen necessary testingand verification canbe carried out.

Response to Previous Year’s
Report Feedback
We would like to thank you for the input on the 2020
Sustainability Report received from stakeholders,
especially from investors. They asked various
questions about PT Vale’s initiatives in managing theenvironment, especially in supporting the reductionof greenhouse gas (GHG) emissions. In response to thequestions, in this report PT Vale provides information
on environmental initiatives, beyond compliance withenvironmental regulations, as well as commitments toupholding human rights.
The responses to the verification process (assurance) in
the 2020 report is also one of our concerns, especiallyin completing the quantitative data and supporting
documentary evidence, and the mapping of material
topics we have carried out with internal and external
parties participation. We present the results of material
topics mapping and significant issues in this reportalong with all the processes we developed as part of our
improvement strategy.

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

About Sustainability Report

Stakeholder Engagement [2-29]
Restatementand External
Assurances
Some information has been
restated from previous
reports and we have noted
such in our report. The
Board of Directors as the
responsible governancebody has approved all
information disclosures.
The reporting scope covers
the operational areas
in Sorowako, Bahodopi,
Pomalaa, the Representative
Office in Makassar, andthe Head Office in Jakarta.
The consolidated financial
statements are submitted in
the annual report and havebeen audited by a public
accounting firm. [2-4] [2-14]
This sustainability report has
been through an assurance
process by an independent
external party based on theapproval of the Board of
Directors, namely SR Asia,
Indonesia representative
who has a US AA1000
license. The assurance
process was carried out
between 9 to 11 March 2022.

Internal Stakeholders, Approach, and Discussion Topics

Identification
Basis

Discussion
TopicsApproach
And Response

ApproachFrequency

Communication
policy and social
management system.

· COVID-19 pandemic.
· Economic Performance.
· Occupational Healthand Safety· Environmental
management· Strengthening the capacityof local suppliers andimplementing the domestic
component level (TKDN).

· Implementation of health protocols· Competitive production costs.
· Increased production and sales of nickel in matte.
· Implementation of the Promote National Interest(PNI) and Local Business Initiative (LBI) programs.
· Application of Safe Work Permit, Mining Safety
Management System (SMKP), and Contractor
Safety Management System (CSMS).
· Implementation of Environmental
Management System and PROPER.

· Health protocols implemented during
the COVID-19 pandemic.
· Preparation of the Company Work Plan and Budget(RKAP), and outreach, carried out as needed.
· Regular evaluation and performance reporting· Occupational health and safety evaluations
are carried out throughout the year.
· Contractor performance evaluation carriedout periodically, as needed.
· Regular Environmental management performance reporting.

Communication
Policy and Social
Management System· Recruitment of· Recruitment process by the company, as
local workers.
well as through contractors.
· Community empowerment · Meetings through the Inter-Village Cooperation Agency(local communities(BKAD) forum to discuss, compile and evaluate Community
Empowerment and Development Program (PPM) programs.

· Recruitment of employees is carried out as needed.
· BKAD forums are held at the beginning of the year,
mid-year and the end of the year, and can be at any
time as needed. During the reporting period, there
were four meetings with the BKAD forum.

Communication
Policy and Social
Management Systemvw· Divestment of theCompany’s shares.
· Contribution to thestate and regions.
· Safeguarding assets.
· Environmental
management andgovernance.
· Company performance.

· Completed divestment of 20% of the Company’s
shares to the Government of Indonesia throughPT Indonesia Aluminum (Persero) or MIND ID.
· Payment of taxes and non- tax state revenue (PNBP).
· Coordination and joint patrols.
· Implementation of an Environmental Management
System and compliance with regulations.
· Periodic reporting of the Company’s performance.

· Payment of taxes and PNBP at the time set by
the Government. Total taxes and PNBP paidin 2021 reached US$142,966 thousand.
· Coordination and joint patrols are carriedout periodically as needed.
· Environmental management reports submitted periodically.
· Production and sales performance
reporting carried out periodically.
· Annual GMS once a year and Extraordinary GMS as
needed. The 2021 Annual GMS was held on April 29, 2021
and the 2021 Extraordinary GMS on August 31, 2021.

· Observers· Media· Academicians· NGOs· Other Entities

Communication
Policy and Social
Management System· Openness and easy
access to information.
· Consultation, researchand cooperation.

· Publication and delivery of public information throughpress conferences, news releases, and public exposes.
· Meetings and discussions related to the implementationof social and environmental responsibility (SER).
· Collaboration on research and activities in the context of SER.

· Publication and delivery of public
information carried out as needed.
· Meetings and discussions are held according
to the needs of the Company.
· Collaboration with universities, NGOs, and other entities.

· LocalCommunities

Communication
Policy and Social
Management System

Respect and fulfillmentof customary rights
and local wisdom.

Building dialogue and communication with local
communities, through various official meetings andforums held by the central and local governments.

Implemented as needed and continuously.

Stakeholders
Internal Stakeholders· Employees· Company
Leaders· Contractors

External Stakeholders· Community· Formal Leader· Informal Leader· Government
and Private
Companies· LocalGovernment· Central
Government· TNI/Polri· Investors· Customer· Suppliers
andPartners· Public
Sector[2-5a][2-5b][2-5c] [POJK51-7]

17

Sustainability Report 2021

About Sustainability Report

Material Topics Matrix
Occupational Healthand Safety

Material Topics
Specific Approach to Stakeholders:Collective Labor Agreement
Our employees are strategic stakeholders that
directly affect the Company’s sustainability.
We do not employ child employees orforced labor. During 2021 there were nodiscriminatory practices against employees.
In 2021 there were no discriminatory practices
against employees. All (100%) employees areprotected by a collective labor agreement(PKB) by Law No. 13 of 2003 concerning
Manpower and Law no. 11 of 2020 concerning
Job Creation. The foreign employees(foreigners) regulations are not covered by the
PKB but by the senior management book. In
addition, we also evaluate the assessment of
suppliers/contractors, including those related
to compliance with the Manpower Act andrespect for human rights. During the reporting
period, PT Vale has a freedom of association
policy set out in the Policy Regular Review.
[2-30a][]2-30b] [406-1] [408-1] [409-1][POJK51-6.c.2.a] [EM-MM-310a.1]

Economic
Performance

The process for determining material topics for internal
stakeholders is different this year than in previous years.
This year, the material topics were determined using
various methods that involved internal and external
stakeholders.

2. Employees - from employee survey

3.5

Water
and Effluents

3.0
2.5

Internal stakeholders:
1. Management - from FGD

4.0

2.0
Local
community

1.5

External stakeholders:Emission

1.0

1. Public - from public survey

0.5

2. Media - from Sprinklr Media Monitoring tools
3. Local stakeholders - from sample survey.
This approach is also used in discussions facilitated byindependent parties, acting as a team of experts. The
discussion discussed the actual and potential impacts,
both positive and negative, from the Company’s
activities, together with an analysis of their effect. [3-1a]Business
EthicsWaste[3-1b] [POJK51-5.d.1] [POJK51-5.d.2]

The discussions resulted in ten material topics basedon sustainability and aligned with efforts to achieve
the Sustainable Development Goals (SDGs). There isan additional material topic ‘Equality and Diversity’in the 2021 report. This is in line with the Company’scommitment to promote equality and diversity, without
discrimination, whilst acknowledging existing historicaland cultural obligations. [3-2a][3-2b]

EnergyStakeholder Perspective
Business Perspective
Average18

Sustainability Report 2021

Post-mining
Rehabilitation
Diversity and Equal
Opportunity

About Sustainability Report

Material Topics and Impact Boundaries [3-2a] [3-1] [3-2] [3-3]Material
Topic

19

Key
Topic

Occupational
Health and Safety

Implementation of management
policies and achievementof OHS performance

Post-Mining
Rehabilitation

Environmental recovery andclimate change prevention

Emissions

Measurement and reduction ofgreenhouse gas (GHG) emissions
and conventional emissions

EnergyEnergy efficiency and developmentof new and renewable energy (EBT)

Local
Communities

Management of negative impacts
and enhancement of positive
impacts on local communities.

Economic
Performance

Direct economic value generated
and distributed to stakeholders.

Diversityand Equality

ImpactHead Office

Importance ofMaterial Topic

Operating Areas:
Sorowako | Bahodopi | Pomalaa

The characteristics of the operations carried out by PT Vale have a high risk
to the health and safety of employees, thus it is important to inform OHS
management so that stakeholders are aware of PT Vale’s commitment to providing
a healthy and safe workplace, and according to the value: ‘Life matters most’.

Operating Areas:
Sorowako

The mining process has the potential to change the landscape so that the former
mining activity area needs to be managed and utilized to function according to its
designation. PT Vale has a policy and carries out rehabilitation of former mining areas.

Head Office

Operating Areas:
Sorowako | Bahodopi | Pomalaa

Reduce absolute GHG by 33% by 2030 and conventional emissions.

Head office

Sorowako | Bahodopi | Pomalaa

Energy is needed for the Company’s operational activities and efficiency efforts,
as well as the use of New and Renewable Energy (EBT) to reduce climate change.

Operating Areas:
Sorowako

The local communities are a strategic stakeholder that develops with the Company andPT Vale’s efforts to improve their welfare are very important.

Head office

Operating Areas:
Sorowako | Bahodopi | Pomalaa

Economic performance is the basis for all the Company’s operational activities andrisks that can affect economic performance are very important to be managed.

Training, competency
improvement, and careerdevelopment for employees
and opportunities for society

Head office

Operating Areas:
Sorowako | Bahodopi | Pomalaa

Vale’s aspiration is to become an authentically inclusive company, namely byaccommodating and respecting the diversity of employees so that they can fully
contribute to achieve maximum potential, without discrimination, and achieve a
positive work experience.

Waste

Landfill load reduction

Head office

Operating Areas:
Sorowako | Bahodopi | Pomalaa

PT Vale’s efforts to recycle, reuse, and reduce (3R) waste properly, through stakeholder
engagement.

Business
EthicsAnti-corruption training,
e-procurement, Corporate
Integrity pact

Head office

Operating Areas:
Sorowako | Bahodopi | Pomalaa

PT Vale’s commitment to support an anti-corruption culture, by conducting
various trainings and outreach, implementing e-procurement and inclusionof no bribery and corruption in every employee that is renewed annually.

Water andEffluents

Reducing the intensity of water
usage

Head office

Sorowako | Bahodopi | Pomalaa· Vale’s commitment to process liquid waste to meet quality standards, according
to the Minister of Environment Regulation No. 9 of 2006 concerning Wastewater
Quality Standards for Nickel Ore Mining Business and/or Activities, as well as
maintaining the clarity of lake water in the operating area.
· PTVI targets to reduce the intensity of new water use from natural sources by 10%
by 2030 based on 2018 as the year of baseline.
High Priority
Medium priority

Sustainability Report 2021

Sustainability Development Policy and Strategy

Sustainability Policy
and Strategy

PT Vale is part of Vale Global to strive to achieve 33%
absolute reduction of GHG emissions and support
the achievement of the 2030 Agenda and Net Zero
Emissions by 2050.
From the main sustainability strategy priorities until
2025, PT Vale has established sustainability strategies
for 2022, as we did in 2021. These strategies focus on
our commitments to reduce climate change; energy
and water efficiency; conserving forests; and increasingsocial contribution; as a transitional step to Net Zero
Emission mining.

We carry out strategic priorities as aform of our commitment to maintaining
sustainability in every activity we undertake.
Our Sustainability Strategy develop to 2025.
More detail about our sustainability strategy
can refers to http://www.vale.com/indonesia/
EN/sustainability/our-approach-in-indonesia/
Pages/policies.aspx. [POJK51-1]
Harris Gunawan

Main
Sustainability
Strategic
Priorities

Net Zero
EmissionHigh Performance
Culture· Implement the GreenPROPER environmental
compliance agenda,
compliance audit, emission
targets, and monitoring
system.

· Complete succession
planning.

· Develop a roadmap andimplementation toward
net zero emission instages (33% reduction of
GHG emissions by 2030
from 2017 baseline).
· Finalize the social agenda:
relocation of Dongi andland encroachment.

20

Sustainability Report 2021

· Implement IMPACT & rolemodeling training.
· Implement the Supervisor
Training Program.
· Carry out Superior
Employee Training (PKU).
· Prepare for diversity andinclusion.
· Implement programs to
overcome performance
problems.
· Improve the quality of VPS
implementation.

Environmental
protection &management

Obsessed with Risk
and Safety Zero N1
and N2· Reclaim 70% of postmining land progressively
by 2025.

· Complete the followup HIRA and implement
critical controls.

· Carry out rehabilitation
outside the contract areaof work.

· Reproduce N3 & HiPo non-energy release
reports.

· Implementing biodiversity
conservation programs.

· Promote the Golden Rules,
INS003, and RAC/MHS.

· Implement waste
reduction and utilization.

· Set up Integrated
Operations Control (COI).

· Implement water
efficiency and reduce
pollution load.

· Complete the Healthprogram and facilities
repair.

· Implement anenvironmental
management system
consistently.

· Implementing theLeadership in the Field(LIF) program.

90KT Sorowako
70KT Bahodopi 40KT
Pomalaa· Improve ore quality by
reducing dilution andmoisture content.
· Reduce operating
variability - kiln standby
and stability of the power
supply.
· Complete the Continuous
Improvement (CI) process
plant and mass-balancesynchronization program.
· Implement a de-bottle
necking program.
· Mineral conservation by
utilizing low-grade ore(limonite).

Asset Integrityand Maintenance
Adherence· Implement Zero-Based
Maintenance.
· Complete the Asset
Integrity program fromthe 2012 assessment.
· Implement immersion to
improve supply chain &maintenance synergy.

Sustainability Development Policy and Strategy

We are building strong relationships with our stakeholders,investing in reducing any negative impact from our activities,
working with high ethical standards, promoting transparent
management, and actively contributing to environmental andbiodiversity conservation, and sustainable development. [2-24]
Harris Gunawan

Harris Gunawan

Sustainability
Strategy

Vale 2030
Commitments

Support sustainable
development in theregion and enhance Vale’s
reputation with thecommunity

Climate Change

Forests

Reduce greenhouse gas
emissions aligned with theParis Agreement and be
Net Zero Emission by 2050

Recover and protect ofdegraded land beyond
our boundaries

Principle Guide

Energy· Induction of a low
carbon chain

Increased clean energy· Shared value generation

Water· Territorial development· Trust and credibility

Reduce new watercollection by 10%»Transparency»
andlistening»Response»
Agility»Embody»different view
»Find»
converging paths· Clear and measurable KPIs

21

Socioeconnomic
Contribution
Health care, educationand income generation

ESG Gaps
Eliminate main ESG gaps inrelation to best practices

Note : PT Vale has implemented a climate scenario.

»Participatory»
process

Sustainability Report 2021

Vale Global’s Sustainability
Strategies and Commitments

Harris Gunawan[POJK51-1]

We haveinstigateda sustainability
strategy to improve
the quality of life andchange the future.
Together.

For us, thefuture is theprocess of constantly
evolving, creating
and reinventing.



We need tohave a greater
responsibility
towards all those
involved in ouroperations, tosociety, and to
the earth. We are
required to perfectways to improve thequality of life.



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



For thisfuture, PT Valewelcomes ideas
by listening andworking together,and by creating an
unbroken cycle thatbrings prosperity toeveryone.



Harris Gunawan

Sustainability Development Policy and Strategy

Pillar Goals

PT Vale implements a sustainability strategy through the four Pillars
Goals with a focus on the five Goals for the future.

Focus for the Future
SafetyThis is one of the key aspects to increase
and regain public trust. Ensuring safetyof life and operations is Vale’s priority.

Harris Gunawan

Harris Gunawan

Harris Gunawan

Harris Gunawan

Serving society,giving back to all

Doing it together

Using Vale’s
mobility to
do something
extraordinary.

Transforming the future
by taking care of thepresent.

Serving the communities bycontributing to all Fromthe beginning, PT Vale hasserved the communities.
Turning natural resources
into self-sufficientareas, contributing to
the development of thecountry. Currently PT Vale
serves the communities
by providing what theyneed and want, including
mining materials and otherresources to improvetheir quality of life. While
preserving the Earth.
Creating prosperity for all.

Doing together means
listening but our listening
will only be valuable if it iscomprehensive. Everyone
must listen: society,governments, customers, andespecially the people who
make PT Vale, everywhere PT
Vale is. After all, we are thecommunities. Communities
are PT Vale.
Doing together means
creating a collective capacity
to think, design and realize
possible futures for everyone.
For mining. For the planet.
Creating spaces dialogues thatevolve the industry as a whole.
Doing together means
acting with responsibility,transparency and consistency.
Walking the Talk.

22

Sustainability Report 2021

All mining companies
are required to preserve
nature, protect thecommunity, and those
involved in the company’s
operations.

We are generating development forcommunities, well-being for society andpermanent environmental preservation
mechanisms. Leaving the world a better
place than when Vale arrived. Putting
the benefits intrinsic to mining at theservice of society as a whole.
But also: using the knowledge andtechnical, human, financial and catalytic
capacity that PT Vale has developed
over the years to rebuild a virtuous
cycle of prosperity that points to an
inclusive and comprehensive future, inwhich everyone benefits and PT Vale’s
horizons expand to meet the needs of aworld in constant transformation.
Recognizing the role of natural
resources, but also humanity’s infinite
vocation to create and evolve.

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

PeopleOur Company is built by human hands –they are the key elements to achieving thefuture we want.

Innovations
Investing in innovation, leaving the comfort
zone, is the main factor that makes ourCompany 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 purpose.

Sustainability Development Policy and Strategy

Support for SDGs and Sustainable Mine Management
Through membership and sustainability initiatives: PT Vale, through the Indonesia Business Council for Sustainable
Development (IBCSD), has drated business documents in support of achieving the SDGs. We focus on eight goals.

Sustainable andEnvironmentally
Friendly Agriculture

PROGRAM

TargetCreate an integrated farming system that promotes Good Agricultural
Practices through maintaining ecological order and avoiding the use ofpesticides or chemical fertilizers that risk damaging soil structure, its
fertility and also the survival in the food chain.

PROGRAM

StrategyForm an Integrated Agricultural Area in Towuti District

PROGRAM

Tackling
Coronavirus

TargetMinimize the impact of COVID-19 at the regional level.

Strategy

Strictly implement health protocols and provide assistance to both
employees and the public to reduce the spread of COVID-19.

The Company signs
the Diversity andInclusion Charter

Target· Increase in the number of female employees to 8.9% by the end of2021.
· Establishing a recruitment strategy that includes an objective toincrease the number of female employees and employees withdisabilities by reviewing which jobs can be completed.

Strategy

PROGRAM

Emergency
Response Team forDisaster Areas

TargetBecome part of efforts to accelerate the recovery of affected areas

Strategy

Provide aid to disaster-affected areas

Towards Low
CarbonTarget2050 Net Zero Emission

Strategy

Reduce greenhouse gas emission levels by 33% by 2030 by optimizing
energy usage along the supply chain; shifting lower carbon fuels,
electrification of mining heavy equipment and its supports; movefrom fossil fuels to renewable energy sources; achieve 100% clean
energy production target to sustain self-generated energy by 2030;
and continue to rehabilitate post-mining areas and carry out beyond
boundary reforestation.

Building Good
Corporate
GovernanceTargetPromote continuous improvement in ethical awareness

Strategy· Conduct anti-corruption and ethics & conduct socialization andtraining.

· Expanding job opportunities for female employees
and employees with disabilities.

· Develop a road map to better governance based on International
standards.

· Provide training related to diversity and inclusion to all employees.
PROGRAMPROGRAM

Renewable Energy
for Our Operations

The trainings
carried out by third
parties are Gender
Bias Training,
Unconscious Bias
Training, and How
To Build A Cultureof Respect in Vale
Indonesia Training

TargetAchieve 100% clean energy production targets to sustain selfgenerated energy by 2030.

Strategy

Clean energy optimization, power stabilization, waste heat andsolar panel utilization, also fuel shift.

TargetRaising awareness about gender diversity and inclusiveness to 230
leaders (supervisor lever up)

Strategy

Provide information on the implementation of the H-2 week
training via email and provide a questionnaire regarding training
responses.

PROGRAM

Tackling
Coronavirus

TargetMinimize the impact of COVID-19 at the regional level

Strategy

Strictly implement health protocols, provide assistance to both
employees and the public, and work closely with stakeholders to
reduce the spread of COVID-19.

PT Vale’s support in achieving SDGs:
https://www.ibcsd.or.id/updates/ private-sector-contribution-to-achieve-sdgs-in-indonesia/

23

Sustainability Report 2021

Environment

Environment
24

Sustainability Report 2021

Environment

Environmental Sustainability Management Performance
PT Vale is committed to continuing toprotect the environment through PTVI’s
Environment Health Safety and Sustainability(EHSS) Policy document, which discusses theCompany’s compliance with the environmentthat has been approved by the CEO and
COO, as well as a specific PROPER Policy
in every environmental aspect, such asenergy efficiency, emission reduction, waste
management, water efficiency and reducing
the burden of pollution and conserving
biodiversity. PT Vale has taken corrective
action to encourage continuous improvement,such as environmental monitoring activities,
reporting, evaluation, implementationof environmental management systems,
environmental audits, monitoring ofcompliance with laws and regulations,and reclamation of post-mining land forenvironmental management. These activities
are the responsibility of the Environment
and Permit Management Department. Theirresults are reported regularly to the Ministryof Environment and Forestry. South Sulawesi
Provincial Environmental Management
Office, East Luwu Regency Environmental
Service, and other relevant agencies.
The implementation of environmental
management is carried out by all departmentsthat generate impacts. Evaluation ofenvironmental management performance iscarried out every month, attended by Senior
Management and the Board of Directors.
During its 53 years of operations in Indonesia,
PT Vale has been committed to implementing
sustainable mining practices. We realize thiscommitment by supporting external initiatives
through the Sustainable Mining Management
Principles based on the International Councilof Mining and Metals (ICMM) Framework.
In 2021, we instigated five environmental
commitments to support the achievement of
net zero carbon emissions. [2-25]
The Company is committed to and continues
to strive to comply with all applicable
environmental regulations, including byusing an application, namely the Regulation

Compliance System (RCS), and referring
to Global standards related to regulation
compliance which allows the company toaccess and identify its compliance at any
time with the obligations of the applicableregulations. In addition, the Company
cooperates with Bureau Veritas as an external
auditor to evaluate PT Vale’s environmental
performance.
Furthermore, PT Vale will continue to makeregular efforts to report on performanceand environmental issues regularly since thestart of operations through Environmental
Management Plan and Environmental
Monitoring Plan (RKL-RPL) reports, SIMPELKLHK (KLHK Electronic Reporting Information
System) reports, and reclamation reports
according to the timeframe set out in theregulations (monthly). Quarterly, semesterand yearly). To ensure that environmental
management and monitoring are carried out
properly, a monthly performance evaluation
is carried out by the Environment Committee,
whose members consist of Senior Managers
and Directors. And monthly departmental
environment performance reports thathave been reported to PT Vale management
regularly once a month.
The company strives to create environmental
awareness for all employees such as
conducting housekeeping competitions,clean Friday programs, webinars, conducting
waste management campaigns, General
Induction Program (GIP) training for new
employee and visitors, and commemorating
World Environment Day commemorations. In
addition, the Company also provides several
trainings on environmental awarenessaccording to the results of training needanalysis (TNA) from all functions andemployee levels. In addition, to ensure thecompetence of environmental management
resources, the Company provides training
for employee certification according to the
stipulated requirements “training scheduleand certificate and absenteeism”.

Sustainable Mine Management Principles
based on the International Council of Mining
and Metals (ICMM) Framework
Apply ethical businesspractices and soundsystems of corporate
governance andtransparency to support
sustainable development.
Integrate sustainable
development in corporate
strategy and decisionmaking processes.
Respect human rights
and the interests,
cultures, customs andvalues of employees andcommunities affected by
our activities.
Implement effective riskmanagement strategies andsystems based on soundscience and taking into
account stakeholder risk
perceptions.
Pursue continual
improvement in health andsafety performance withthe ultimate goal of zeroharm.
Pursue continual
improvement inenvironmental performanceissues, such as water
stewardship, energy use
and climate change.

Contribute to theconservation of biodiversity
and integrated approaches
to land-use planning.
Facilitate and support
the knowledge base andsystems for responsible
design, use, re-use,
recycling and disposal of
products containing metals
and minerals.
Pursue continual
improvement in social
performance andcontribute to thesocial, economic andinstitutional developmentof host countries andcommunities.
Proactively engage key
stakeholders in sustainable
development challenges
and opportunities in an
open and transparent
manner. Effectively reportand independently verify
progress and performance.

Five Environmental Commitments in 2021
Low carbon agenda
Reducing landfill load
Reducing the intensity of water usage
Cross-border forestation
Biodiversity Conservation

25

Sustainability Report 2021

Environment

Towards Net Zero Carbon Emissions
Management ofMaterial Topics
Mining activities can havean unavoidable negative
impact on the environment.
However, we continue to strive
to manage these impacts so
the environmental pollution
does not occur. Environmental
management is confirmed
to reduce by various policies,
targets, and initiatives. To
ensure their implementation,
the Environment and Permit
Management (EPM) department
conducts monitoring, reporting
and auditing, and the results
are submitted to the relevant
institutions to ensure
environmental compliance. Our
environmental performance isshown below. [EM-MM-160a.1]

PT Vale’s Contribution to the Planet

Harris Gunawan

PT Vale continues to strive
for 33% scope 1 and 2
greenhouse gas emissions
by 2030 by implementing
various programs, including:· Substitution of coal as a reductant with biomass· Substitution of fuel oil and coal with LNG· Electrification of heavy equipment, logistics
transportation equipment, buses, and light vehicles· Electrification of fuel boiler stage-2

PT Vale was one of theparticipants at the 26th
Conference of Parties (COP) in
Glasgow, Scotland, which wasattended by 197 countries.
Our presence at COP 26 shows
our primary commitment toaddressing climate change,
and was also an opportunity
to share information about PT
Vale’s initiatives to reducing
and neutralizing GHG
emissions.
During the forum,
Febriany Eddy as CEO
of PT Vale, shared theinitiatives, experiences,
and achievements in thetransition to environmentallyfriendly energy process byemphasizing sustainability
as a core governance in themining industry. PT Vale’s
energy transition efforts
include operating threehydroelectric power plantsthat reduce GHG emissions by
more than 1 million tons CO2eq
per year, and the cancellationof a coal conversion
project to reduce potential
additional carbon emissionsof 200,000 tons CO2eq per
year. We are also committed
to the rehabilitation andconservation of biodiversity
on post-mining land. [3-3a][3-3b][3-3c][3-3d][3-3e][3-3f]

PT Vale’s climate change
risk management focuseson sustainability and werefer to the Task Force on
Climate-Related Financial
Disclosure (TCFD) guidelines.
We have set short term
targets for energy efficiency
solutions and for maximizing
renewable energy usage;
while the medium-termtarget for 2030 is a 33%
reduction in absolute scope
1 and scope 2 emissions.
The long-term target is toachieve net zero emissions
by 2050. [EM-MM-110a.2] [TCFD
Strategi.a]

We believe that in the
future, the energy transition
will be one of the keys
to ensuring the successof controlling climatechange, and preventing a
2oC temperature increase
according to the Paris
Agreement. Along with this,nickel, which is a productof PT Vale, will become an
important commodity in theenergy transition to build
the required renewableinfrastructure, and support
transporting electrification
via electric vehicles (EV).
The increasing demand
for nickel will affect theCompany’s positive financial
performance in the next
few years. [TCFD Strategy.b] [TCFD
Strategy.c]

26

Sustainability Report 2021

Environment

2019
Quick Win• Implemented
Electric Boiler• Use of Biodiesel(B30)• Energy
Conservation

Projects
Development(Phase I)

Absolute reductionof GHG emissions

Projects Progress

33%• Power Stabilization 18MW

• Optimize Existing Clean
Energy (hydro plants)• Solar PV 110 MWp(optional)• Modular Screening(Reduce hauling
distance)• Fuel switch to
Hydrogen (option)• Reforestation• Electrification formine equipment• Stockpile Improvement(reduce moisture
content)

Projects
Development(Phase II)• Kilns-Biomass for
reductant

2023

2028
Net Zero
Emission

2050
2020

Roadmap
Towards Net Zero
Emission 2050
Note : Energy conversion to LNG
will contribute to around 28% ofemission reduction.

27

Sustainability Report 2021

2025

2030

Projects
Progress

Projects
Realization• Rotary DryersFuel/Coal to LNG

Fuel Shifts:• Use of Biodiesel(B50)• Reduction KilnsFuel/Coal to LNG• Waste heat utilization

Environment

GHG Emission Calculations [POJK51-6.e.4.a]

GHG Emissions Intensity [POJK51-6.e.4.a]

The calculations include GHG scope 1 emissions in the
production and usage of fuel oil (BBM), and scope 2 inelectricity usage. The GHG emissions results are expressed
as total emissions, in units of tons of CO2equivalent (CO2eq),
including the conversion of non-CO2 GHG emissions (CH4,
N2O, dan HFC). The calculations use the energy consumption
balance method for fossil fuels and gases that cause thegreenhouse effect using a 2017 baseline, and the Global
Warming Potential/GWP=1 index. There are no calculations
for biogenic CO2 emissions. All GHG emission calculations
are for operations in Sorowako, South Sulawesi. The
calculation of GHG emissions uses the Intergovernmental
Panel on Climate Change (PCC) guidelines with the Global
Warming Potential (GWP) index, which refers to the fifth
report assessment in 2014 (AR-5). [305-1a, 305-2a][305-1b][305-2c]

GHG Emissions Intensity only calculates carbon equivalentemissions (CO2eq), including CH4, N2O, and HFC, based on
the total GHG scope 1 and scope 2 emission calculation.
The results are expressed in tons of CO2eq /ton Ni,
using the calculation of Intergovernmental Panel on
Climate Change (IPCC) method. [305-4b][305-4c][305-4d]

GHG Emissions Reduction [POJK51-6.e.4.b]

The GHG emission intensity in 2021 was 28.6 tons CO2eq/
ton Ni, an increase of 2% from 27.91 tons CO2eq/ton Ni
in 2020. This was due to a decrease in the total nickel
in matte production and the consumption of lower
nickel content ore when compared to 2020. [305-4a]

Unit

2021

2020

GHG Emission Calculation and Reduction Results Based on 2017 Baseline [305-4a][POJK51-6.e.4.a]
Description
Total GHG
Emissions

GHG Emissions Intensity Value [305-4a][POJK51-6.e.4.a]
Description

The GHG emissions reduction came from the hydroelectric power
operations, which reduced additional carbon scope 1 emissions by 1,118,231
tons of CO2eq per year, for diesel power plants (PLTD) using fuel (BBM); andby 2,292,375 tons of CO2eq per year, for steam power plants (PLTU) usingcoal. Overall in 2021, we succeeded in reducing GHG emissions by 147,705 tons
CO2eq, or by 7% of GHG emissions in 2020 by, or up to 7.7% of the 2017 GHG
emission baseline of 155,948 tons CO2eq. [305-5a] [305-5b] [305-5c] [305-5e]

Total GHG
Emissions Based on2017 Baseline

2021

Sustainability Report 2021

Ton

1,864,871 2,015,952* 1,999,236*

65,38872,2372020

2,015,952*

2019

1,999,236*

2020*

2019*

2018*

Ton CO2eq

1,864,871

2,015,952 1,999,236 2,195,383 2,013,950

Ton CO2eq-186,235

111,947-150,036

181,433

N/A

%

-7%

1%

-9%

9%

N/A

Information :*Restatement of the 2020 Sustainability Report based on the results of data verification. [2-4]28.52

27.91*

2017*

GHG Emissions
Reduction

71,02528.15*

1,864,871

Information:*Restatement of the 2020 Sustainability Report basedon the results of data verification. [2-4]28

Total Nickel
Production

Ton CO2eq

GHG Emissions Ton CO2eq/
Intensity
Ton Ni[305-1a][305-2a][305-1d][305-2d](Ton CO2eq)

Total GHG
Emissions

2021

2019

[305-2b][305-1c][305-1d][305-2d][305-1e, 305-2e][305-1f, 305-2f][305-1g, 305-2g]

During the reporting period PT Vale did not calculate
scope 3 emissions. PT Vale is gradually trying to reduce
GHG emissions in its supply chain activities by encouraging
suppliers and customers to share its commitment to
reduce carbon emissions in all activities carried out. [305-3]

Unit

Information :*Restatement of the 2020 Sustainability Report based on the results of data
verification. [2-4]We continue to seek opportunities to reduce GHG emissions in the
production processes, to reduce GHG emissions of 1,800 kilotons CO2eq, or
90% of total GHG emissions. Other opportunities exist in the mining areas
for a GHG emission reduction of 200 kilotons CO2eq.

Environment

Opportunity in Process Plant Areas

Opportunity in Mining Areas

29%

200 kt CO2e

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

Fuel Efficiency
Stockpile RedesignReduce Moisture

Wet OreStockpile

Dryer Kiln
(3)

(10% of Total GHG
Emission)

Dried Ore
Storage

200,000
150,000
100,000
50,00058%
Waste Heat
Utilization
Furnaces Off
Gas, Slag Heat
RecoveryCalcineReduction
Kiln
(5)

1%

Furnace
Matte

Converter
Slag

Electric
Furnace(4)

Converter(3)

Nickel Matte2%
Product Dryer - Fuel Shift
Fuel to LNG, Biofuel

29

Sustainability Report 2021

Furnace
Slag

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

Shipment

MobileEquipment

Efficiency
Improvement

Fuel
Switching• Automation• Modular Screening

Biodiesel

Unclassified
EnergyRenewable
Generation

Electrification
Baterai Electric
VehicleEnvironment

Emissions Containing Ozone
Depleting Substances (ODS)

SO2 and Particulate Emissions Control

PT Vale no longer uses HCF-22 (CHF2Cl) freon byreplacing it with R32 freon, a non-ozone depleting
substance, as it has an Ozone Depletion Potential(ODP) value of 0, and a Global Warming Potential(GWP) value of 675. All R32 freon is purchasedfrom suppliers, and we have not calculated thevolume of freon R32 used, so this report does notinclude an explanation on the methodology or
calculation results. [305-6a][305-6b][305-6c][305-6d]

SO2 emissions result from the use of sulfur to sulfidation in thenickel ore processing that uses High Sulfur Fuel Oil (HSFO) andcoal. We continue to work to ensure the SO2 emissions meetsthe Government’s quality standards, based on 2014 Minister ofthe Environment Regulation No. 4 concerning Fixed Emissions
Quality Standards for Mining Business and/or Activities.

[POJK51-6.e.4.a] [EM-MM-120a.1]

PT Vale periodically monitors and calculates the amount of
SO2 emissions intensity. The calculation uses the mass balancemethod by determining the intensity of emissions by comparing
the weight of SO2 emitted with the weight of the productproduced. The calculation of SO2 emissions is expressed inunits of Ton SO2/Ton Ni. The results of the calculation of SO2
emission levels always meet the quality standard thresholdof 0.80 Ton SO2/Ton Ni. However, PT Vale is committed toreducing SO2 emissions by continuing to conduct studies
involving experts from academia and practitioners. Studies toreduce SO2 emissions are focused on increasing the efficiencyof sulfur fixation in the sulfidation process in a reducing
furnace, including process control and sulfur injection methods.
The trend of decreasing nickel content from mining is one of
the challenges to reducing the intensity of SO2 emissions.
During 2021, PT Vale instigated SO2 emission controls,
including stabilizing the process in the reduction kilns
that affects the liquid sulfur usage; converting of theuse of Marine Fuel Oil (MFO) to lower sulfur coal in drying
kilns and reduction kilns no. 2 and 3; and converting
conventional diesel to B20 diesel with a lower sulfur content
in biodiesel than conventional diesel. [POJK51-6.e.4.b]Harris Gunawan

Other Emissions Measurement and Calculation Results in 2021 [305-7a]
Description

Unit

2021

2020

2019

Total Nickel
Production**Ton

65,38872,23771,025

Total SO2 Emissions

Ton

50,66657,32051,435Emission Intensity

Ton SO2/
Ton Ni

0.77

0.79

0.72

Quality standards

Ton SO2/
Ton Ni

0.80

0.80*

0.80*

Note:
* Quality Standards became
effective as of October 2019** Total production of tons of nickel consists of nickel
alone without a mixture of cobalt and sulfur.
In addition to measuring emissions from factory operations, PT Vale also measures
particulates in ambient air, namely particulate meters (PM) 10 and PM 2.5.

Particulate Intensity measurements are carried out according to USEPA Method
5, and are expressed in Tons of Particulates/Tons of Ni. Particulate emissions arederived from the results of periodic measurements of the dryer kiln, reduction kiln,electric furnace and product dryer chimneys. The particulate quality standard value
is 0.80 Ton Particulate/Ton Ni, and the particulate concentrate measurement result
during 2021 was 0.020 Ton Particulate/Ton Ni, meeting the quality standard.
[305-7a][305-7b][305-7c]

Particulate Intensity Measurement Results [305-7a]
Description

Unit

2021

2020

2019

Total Nickel
ProductionTon

65,38872,23771,025

Total Particulate
Emissions

Ton

1,613

1,531

877

Particulate
Intensity

Ton
Partikulat/
TonNi

0.020

0.021

0.010

QualityStandards

Ton
Particulate

0.80

0.80*

0.80*

Note:
*Quality Standards have been effective since October 201930

Sustainability Report 2021

Environment

Energy Management and Low
Carbon Economy Support
Energy Usage Volumes within the Organization (GJ)
[302-1a][302-1b][302-1e][302-1f][302-1g] [EM-MM-130a.1] [POJK51-6.d.3.a] [POJK51-6.e.1] [EM-MM-130a.1]

Management of Material Topics
In 2021 we will replace the transformer at the Larona LGS#1
hydroelectric power plant to save more energy which is the
responsibility of the Department of Energy and Logistics and theauthorities. We also manage energy use optimally and efficiently
Energy Efficiency Policy 2021 of PT Vale by involving stakeholder’sinterests, including employees, contractors, and partnercompanies. Detail about Energy Efficiency Policy of PT Vale canrefes to http://www.vale.com/indonesia/EN/sustainability/ourapproach-in-indonesia/Pages/policies.aspx [3-3a][3-3b][3-3c][3-3d][3-3e][3-3f][POJK51-6.d.3]

About Vale Power Shift (VPS) [POJK51-6.d.3]
To support the transition to a future low-carbon economy, PT Valefollows the Vale Global internal program: Vale Power Shift (VPS).
This program aims to improve PT Vale’s energy matrix by focusing
on the use of renewable energy and alternative fuels, as well as
efficiencies by using new technologies. Initiatives related to VPS
are expected to contribute around 5% of the planned reduction by
2030. The Debottlenecking project was implemented in 2021 and istargeted for completion in 2024.
In 2021, PT Vale together with two partner companies, Taiyuan
Iron & Steel (Group) Co., Ltd (TISCO) and Shandong Xinhai
Technology Co., Ltd (Xinhai), signed the Bahodopi Nickel Processing
Facility Project Cooperation Framework Agreement (PCFA). This
cooperation includes the construction of a nickel processing facility
in the Xinhai Industrial Park, Morowali, Central Sulawesi. Throughthis collaboration, eight ferronickel processing lines using Rotary

31

Sustainability Report 2021

Kiln Electric Furnace (RKEF) technology will be built with anestimated production of 73,000 metric tons of nickel/year,
together with supporting facilities. All parties agreed that theprocessing facilities’ electricity needs would be sourced fromthe Gas Power Plant (PLTG) further supporting the commitment
to reduce carbon emissions.

Energy Sources

2021

2020*

2019*

Drying Kilns

4,537,779

5,226,048

4,063,960

Reduction Kilns - Reductant

3,002,054

3,767,909

4,123,086

Reduction Kilns - Combustion

1,800,368

2,377,425

1,564,938

Total Firing Kilns

9,340,201

11,371,381

9,751,983

Thermal Generators

23,182

7,692

431,213

Steam boilers

14,26844,12488,312PP Dryer Furnace & others

332,241

396,459

357,689

Reduction Kilns

34,94332,52443,909Refining - Nickel 78%

39,45043,59040,888Heavy vehicles

1,676,109

1,820,530

1,697,596

Light vehicles, trucks and others

171,030

202,544

205,131Total

2,291,223

2,547,463

2,864,736

Steam boilers

22,984502

96,243Drying Kilns

640,555

593,445

1,037,620

Reduction Kilns

7,424,388

7,226,966

7,773,829

Total

8,087,927

7,820,913

8,907,692

Light Vehicles

3,616

8,593

12,986

8,485,193

Non-renewable Energy

Coal

Energy Usage and Efficiency
Energy usage calculations include the volume of energy sources
used within the company for heavy equipment operations innickel ore mining operations and nickel in matte production
processes. We have not calculated the energy consumption
outside the Company. The energy sources come fromhydroelectric power supply, which includes renewable energy,
as well as thermal power generation and fossil fuels, which are
non-renewable energy. None of the hydroelectric power plantelectricity is sold to other parties. The energy usage calculation
uses the sum method for the volume of energy sources used,which is converted into Gigajoules (GJ) using the International
Energy Agency (IEA) conversion. [302-1a][302-1b][302-1e][302-1f][302-1g]

Allotment

High Speed
DieselHSD

High Sulfur FuelOil (HSFO)[302-2][POJK51-6.d.3.a]

Total energy usage in 2021 was 28,268,297 GJ, down 10% from30,628,679 GJ in 2020. The largest energy source is from coalusage of 9,340,201 GJ, a decrease of 22% from 11,371,381 GJ

Gasoline**

in 2020. PT Vale also used 8,223,746 GJ of renewable energy
sourced from hydroelectric power or 32.2% and the remaining
67.8 came from non-renewable energy. [302-1a][302-1b][302-1e] [EM-HydroelectricPower Plant

Processing Plant

8,223,746

8,639,474

Total

All Usage

28,268,297

30,628,679 30,336,764

MM-130a.1]

Renewable energy

Note:* There was a change in the submission of data for 2020 and 2019 with the previous year’s reportdue to a change in the calculation methods [2-4]** Excludes consumption data in Jakarta and Makassar

Environment

Energy Intensity

Energy Usage Reduction

Energy intensity is calculated as the total electricity and fuelenergy required to produce one tonne of nickel in matte.
The calculation does not include energy usage outside theCompany. The Energy Intensity in 2021 was 432.31 GJ/Ton Ni,
higher than 424.00 GJ/Ton Ni in 2020. [302-3a][302-3b][302-3c][302-3d]

Total energy costs in 2021 accounted about US$639,352 millionof nickel in matte production costs, an increase from 31.6% in
2020. This increase was due to increased fuel and coal prices, of
12% for HSFO, 13% for HSD, and 29% for coal, respectively.

[POJK51-6.d.3.a]

Energy Intensity Measurement Results [302-3a][POJK52-6.d.3.a]
Description

Unit

2021

2020*

2019*

Total Energy
Used

GJ

Total Nickel
ProductionTon

65,38872,23771,025

EnergyIntensity

GJ/Ton432.31424.00427.1328,268,297 30,628,679 30,336,764

Note: *Restatement of the 2020 Sustainability Report due to differences incalculation methods [2-4]By comparing the volume of energy sources used, during2021, we can reduce fuel consumption. The volume of MFO
usage in 2021 will reach 205 million liters, down 1.5% from2020 of 208 million liters; while the use of HSD in 2021 will get
69 million liters, or down 10% from 2020 of 77 million liters.
Coal consumption in 2021 also decreased by 12% to 374,937
tons, from the previous 426,450 tons, in line with the increasein nickel in matte production and offset the decrease in fuelconsumption. [302-4a][302-4b][302-4c][302-4d]
We continue to encourage energy efficiency through several
efforts, including biofuel (BBN) biodiesel which is moreenvironmentally friendly because it contains 30% Fatty
Acid Methyl Ester (FAME). Biodiesel is used for operational
vehicles. The volume of biodiesel use in 2021 reaching 69.48
million liters, or 25% of the total fuel consumption, and will
decrease by 77.17 million liters in 2020. [POJK51-6.d.3.b]
Fuel Usage Volume (Million Liters)
Fuel
Year

Harris Gunawan

32

Sustainability Report 2021

Biofuel

Percentage

HSFO

HSD

Total

2021

205.2669.48

274.74

20.84

30%

2020

208.3277.17

285.49

23.15

8.1%

2019

226.3386.96

313.29

17.39

5.55%

This report has not calculated the energy demand reduction/
efficiency from products/services sold during 2021, as thedelivery of nickel in matte to customers uses vessels provided
by customers, so the energy calculation is based on the fuelusage volume conversion. In the future, PT Vale will consider
requesting this calculation be a joint effort to improve energy
efficiencies. [302-5a][302-5b][302-5c]
Support for energy optimization involved replacing thetransformer at PLTA Larona LGS #1, as the old transformer
had been used since the Larona hydroelectric power plant
was first inaugurated in 1978. The replacement transformer
will increase the reliability of the electricity supply needed tosupport PT Vale’s nickel processing. The new transformer has apower of 100 MVA, an increase from the previous transformer(78 MVA). This power increase was carried out to adjust to thepreviously increased generating capacity, as well as to provide
an adequate loading factor for the new transformer.

Contribution to the Development of
New and Renewable Energy (NRE)PT Vale also supports the transition to the use of EBT. The
development of NRE for nickel products will support thetransition to a low-carbon economy through the productionof electric car batteries in the future. PT Vale is focused onrealizing strategic plans for the next five years, including
preparing a smelter plant or nickel processing in Bahodopi,
Central Sulawesi, and in Pomalaa, Southeast Sulawesi. These
factories will produce Mix Hydroxide Precipitate (MHP) andMix Sulphide Precipitate (MSP) as raw materials for battery
components in electric vehicles. [POJK51-6.d.3.b]

Environment

Post Mining Rehabilitation
Management ofMaterial Topics

Reforestation
Beyond Boundary

Implementation of Post-Mining
Rehabilitation Activities

Any negative impact from the mining processes ismanaged through the post-mining plans. We are trying
to rehabilitate post-mining and cross-border land inother areas, especially on critical land. PT Vale continues
to carry out post-mining rehabilitation and has planted
more trees from its 2.5 ha nursery in Sorowako, which
has a capacity of producing 700,000 seedlings per year.

Post-mining land reclamation helps to improveland ecosystems, conservation and protectionof protected and endemic flora and fauna
species, and is a form of legal compliance. We arecommitted to limiting the open land areas formining operations, and implementing biodiversity
management in the mining operation areas inaccordance with Approval Letter No.188.4/66/II/
BAPEDALDA. We also carry out land rehabilitationand transboundary reforestation activities outside
the mining operation areas, especially in criticalland and watersheds (DAS). In addition, there
are no mine sites where acid drainage in PT Vale.

PT Vale’s mining operation areas are based on Contractsof Work with the Government of Indonesia, as amended in
2014. 41,822.95 ha or 59% of the total Sorowako operation
area of 70,894 ha is adjacent to a protected forest. PT Valehas obtained a Borrow-to-Use Forest Area Permit (IPPKH)
from the KLHK in accordance with SK No. 645/MenLHK/
SetJen/PLA.0/12/2018. [304-1a][POJK51-6.e.3.a] [EM-MM-210a.1] [EM-MM-

Reclamation activities are monitored using a reporting
mechanism to the authorities, and when reclaimed land
is handed back to the Government, and are evaluatedfor achievement of the Department of Environment andPermit Management (EPM) key performance indicators(KPI), as the party in charge of the activity. Post-mining
rehabilitation land in 2021 reached 283.74 ha, 1.3% morethan planned, resulting in a cumulative total of 3,249.11
ha. Apart from our employees, the reclamation activities
also involves other stakeholders, including the central
government’s Ministry of Energy and Mineral Resources(ESDM) and Ministry of Environment and Forestry (LHK),
and the local governments, communities and nongovernmental organizations (NGOs). [3-3a][3-3b][3-3c][3-3d][3-3e][3-3f]

PT Vale already has a mine closure plan document thatwas prepared in 2009 and approved in 2015. Regularly
this document will be updated every 5 years by PT Vale.

33

Sustainability Report 2021

[POJK51-6.e.1] [POJK51-6.e.3.b][EM-MM-160a.2]

By 2025, PT Vale’s targets are restoring 15,000
hectares of land to become forest through its
post-mining rehabilitation activities and therehabilitation of critical land and watersheds.
By the end of 2021 the accumulated land area
rehabilitated was 3,249 Ha, which included 283.73
Ha of land rehabilitated during 2021 is. For theremainder, we are targeting more than 10,000 Haof land for reclamation and rehabilitation by 2024.
In addition, PT Vale has also provided a budget of
US$6,765,826 in 2021 and US$7,453,502 in 2022 forpost-mining rehabilitation.

160a.3]and the biodiversity therein. We manage impact byidentifying species affected, followed by the transfer of
the affected species to other locations, including postmining rehabilitation areas. We also carry out post-mining
rehabilitation to restore the carrying capacity of theecosystem in the former area mining operations. [304-2a][POJK51-6.e.2]

To minimize the ecosystem and biodiversity impact, we
PT Vale has also obtained an IPPKH for operations andhave also instigated a policy to limit the area of land opened
production activities in Bahodopi Block I in Morowali
annually for mining activities, in line with the reclamation
Regency, Central Sulawesi, covering an area of 2,143.14
guarantee for the period 2021–2022 as approved by thehectares based on the Minister of Environment andMinistry of Energy and Mineral Resources, and for 2021 theForestry Decree No. SK.341/Menlhk/Setjen/PLA.0/5/2019.
area of open land will be limited to a maximum of 2,183.72
The Company obtained a 2nd IPPKH extension for
hectares. The land area cleared for mining operations
exploration activities in Bahodopi covering an area of
during the reporting period was 261.09 hectares, bringing
12,820.60 Ha, based on the Minister of Environment andthe total area of land cleared for mining operations to 5,303
Forestry Decree No. SK.522/ Menlhk/Setjen/ PLA.0/11/2018. hectares. Furthermore, there is no proved and probable
For the Pomalaa Block, Kolaka Regency, Southeast
reserves in or near areas of conflict. [304-2b] [EM-MM-210a.1]
Sulawesi, PT Vale obtained an IPPKH for exploration
The reclaimed mining area in 2021 was 283.74 hectares, or
activities covering an area of 12,563.10 hectares based on
1.3% of the target of 280.12 hectares. Cumulatively, thethe Head of the Investment Coordinating Board Decree
post-mining reclamation area up to December 31, 2021 was
No. 6/1/IPPKH/PMA/2018. [304-1a] [POJK51-6.e.3.a]3,249 hectares. The total remaining area of open land for
We carry out open-pit mining activities, including
mining activities in 2021 was 2,054 hectares, meeting theland clearing and stripping soil surface, excavating soil
set limit. Also by the end of the reporting period all thematerials and materials mines, also transporting soil
rehabilitated land had been returned to its original state.
materials and mining materials. These activities impact
All post-mining reclamation land is in Sorowako. [304-3a][MM1]changes in the natural hue, thus affecting the ecosystem[POJK51-6.e.3.b]

Environment

Area of Disturbed and Rehabilitated Land (Ha) [304-3]

Description

2021

Total Area of
Unrehabilitated
Disturbed Land at
the Beginningof Year

Total Areaof Disturbed in
Current Year

Total Area
of RehabilitatedLand inCurrent Year

Total Area of
Unrehabilitated
Disturbed Landat End of Year

1

2

3

1+2-3

2,076.74

261.09283.74

2,054.10

2020

1,971.22

281.44176.24

2,076.42

2019

1,807.8

286.5681.09

2,013.27

The post-mining rehabilitation involves
community, NGO, Government, and third
parties also pays attention to the 2009 Law
No. 4 concerning Mineral and Coal Mining. To
realize our commitment to land rehabilitation
and reclamation we provide financial
resources, included in the environmental
cost component in the Company’s Financial
Statements. According to regulations, theCompany has mine closure plans (RPT) inall (100%) mining operational areas in the
Sorowako area, including a guarantee formine closure. By 2021, PT Vale’s environmental
management costs had amounted to
US$21,349,994. [304-3b][MM10] [POJK51-6.d.1]

34

Sustainability Report 2021

Locally trained communities are involvedin the planting and maintenance activities.
The Ministry of Energy and Mineral
Resources regularly conducts monitoringand evaluation of the reclamation, to ensure
it meets the planting criteria and can behanded over to the Government throughthe Ministry of Environment and Forestry.
The success criteria include standards forland use, revegetation, and final settlement,
based on to Attachment IV of the Ministerof Energy and Mineral Resources No. 7 of2014 concerning the Reclamation and PostMining in Mineral and Coal Mining Business
Activities. [304-3b][304-3d]

90 Ha
RehabilitatedCritical Land andWatersheds (DAS)In 2021 we handed
over 90 Ha ofrehabilitated criticalland and watersheds(DAS) to the Ministryof Environment andForestry to fulfill
our obligations as an
IPPKH holder. The land
handed over was in a
protected forest areain Kawata Village andLedu-Ledu Village,
Wasuponda Subdistrict, East Luwu
Regency.

Harris Gunawan

Harris Gunawan

Environment

Biodiversity Conservation
PT Vale is committed to completing its biodiversity management plan,
covering the entire mining operation areas in the Sorowako Block. By the endof the reporting period, the management has been implemented 100%. In
2021, PT Vale continued the study of protected species started in 2020 with
Hasanuddin University. The results show that several species of fauna andflora are protected or threatened with extinction, and need to be conserved
to maintain their sustainability. The list of protected species based on the
IUCN red list can be seen in Appendix 3. [304-4a][MM2][POJK51-6.e.3.b]

Sustainable Environment Inspiration
The solid waste generated from nickel in matte
production processes include nickel slag andoverburden material. During the reporting period,
the Government issued Government Regulation (PP)No.22/2021 concerning the Environmental Protection
and Management, which classifies nickel slag as non
hazardous waste. We use nickel slag as a mining roadpavement material. Overburden management is used
as a backfill material and when compacted with soil
reduces the risk of erosion. [306-1][306-2]

Reducing Landfill Load
Overburden material and topsoil are the solid waste
generated from nickel ore mining operations, and areused as stockpile material in post-mining operations,for land and post-mining rehabilitation. Other non
hazardous waste solid waste produced includes
domestic waste and metal scrap. [POJK51-6.e.5.b]

1,000
Tembeuwa
seedlings
in muara
tapolemo, on
the shores of
Lake Matano,
East Luwu
Regency35

PT Vale together with the Government and the communities
planted 1,000 tembeuwa seedlings in Muara Tapolemo,on the shores of Lake Matano, East Luwu Regency, torehabilitate and maintain the lake ecosystem, especiallyon the shoreline. Tembeuwa (Kjellbergiodendron
celebicum) is a type of vegetation often found on the
shores of Lake Matano, and is endemic to Sulawesi.
Previously, 1,200 tembeuwa seedlings from PT Vale’s
nursery facilities had been planted in Soluro, on thewest shore of Lake Matano. Tembeuwa has a similarfunction to mangrove and can withstand abrasion,
ensuring the lake water quality is maintained.
Post-planting, activities will include monitoringand evaluations over the next two years.

Sustainability Report 2021

In line with our environmental priority for 2021,
namely reducing the landfill burden, several efforts
were undertaken to optimize the waste generated
from domestic activities and production processes.
These efforts followed the reduce, reuse, recycle,
and recover or 4R concept. By doing so, the volume ofdomestic waste generated and disposed of at storage
locations has been significantly reduced. Other nonhazardous waste solid waste generated includes
domestic waste and metal scrap. Third parties carryout the management of these two waste materials.
[POJK51-6.e.5.b] [POJK51-6.e.5.b]Types and Volume of Non-Hazardous Solid Waste from
Mining Activities [POJK51-6.e.5.a] [EM-MM-150a.6]
Volume Generated
Type of Waste

Topsoil

Unit

WMT

Overburden

2021

2020

2019

1,447,074

898,824

413,559

36,438,882 40,730,655 42,968,601

Generation of Non-Hazardous Waste from Supporting
Activities [POJK51-6.e.5.a]Volume Generated
Type of Waste

Unit
2021

2020

2019

Non-Industrial Domestic Waste Generated

Ton

1,001

1,278

1,810

Non-Industrial Domestic Waste Segregated

%

10.17

7.03

6.73

Industrial Domestic Waste Generated

Ton

3,492

2,839

2,237

Metal Scrap Generated

Ton

5,229

4,615

9,985

Another waste material containing non
hazardous waste is nickel slag, whichis generated from the nickel in matte
production process. In 2021, a Government
Regulation No. 22 concerning Environmental
Protection and Management was released
that stated that nickel slag waste isclassified as non hazardous waste. Nickel
slag is used as construction material formining roads and special mining roads,
based on the Ministry of Environment
and Forestry Permit No. SK 121/Menlhk/
Setjen/PLB.3/2/2018 concerning hazardous
waste utilization. The total volume ofnickel slag generated in 2021 was 4,156,994
tons, of which 97%, or 4,012,656 tons wasreused. Other hazardous waste solid wastes
are managed and processed based on theirrespective characteristics, and are used
for internal purposes or handed over tolicensed third parties. PT Vale has no nonmineral waste and tailings produced. Also, nohazardous waste is shipped internationally.
During 2021 there were no waste material
spills that harmed the environment.
[MM3][POJK51-6.e.5.a][POJK51-6.e.5.b][POJK51-6.e.5.c] [3063][306-4][POJK51-6.e.5.a][POJK51-6.e.5.b] [EM-MM-150a.9][EM-MM-150a.10] [EM-MM-150a.4][EM-MM-150a.5][EM-MM540a.1][EM-MM-540a.2][EM-MM-540a.3]

Environment

Types and Volume of Listed Non-Hazardous Waste fromPT Vale Activities [EM-MM-150a.7] [EM-MM-150a.8]

Waste Management and Treatment Activities[306-4][306-5][POJK51-6.e.5.b]Volume Generated
Type of Waste

Unit

Furnace Slag
Converter Slag
Total

Ton

2021

2020

2019

3,739,088

3,928,494

4,112,126

417,906

394,431515,701

4,156,994

4,322,925

4,627,827

Hazardous Waste from Processing/Supporting Activities
and Management Methods
Amount Processed (Tons)
Type of Waste

Management Method
2019*

Fuel additive for nickel
ore processing in thedryers and kilns

1,087.90

1,138.80

1,775.90

Furnace Slag

Mining operations support

441.7

676.2

320.9

Filters, Cloth, andContaminated Materials

17.5

15.2

39.5

Expired Chemical Reagents

63.1

78.2

53.8

44.5

40.2

2.2

Paints and Chemicals

3.5

3.2

0.9

Asbestos

5.0

3.5

2.4

5.0

3.5

2.4

Medical Waste

Sent to third parties

Burnt in incinerators andash sent to third parties

Note: *Restatement of the 2020 Sustainability Report [2-4]Sustainability Report 2021

2020*

Used Lubricantsand Grease

Used Batteries

36

2021

Waste generated
from operations
and support
activities

Temporary
Storage

Carried out by third party
575.3 tons [306-5a]• Utilization of

hazardous waste:
1,088 tons
• Utilization of Listed
Non-hazardous waste:
3,739,088 tons
[306-4d]

Environment

Reducing Water Usage Intensity
Our biggest use of water is in our hydropower operations.
The water source comes from the Larona River, supplied
from Lake Matano, Mahalona, and Towuti. The three lakes
are also water sources for local residents, both to meettheir domestic needs, as well as the livelihood of fishermen
and farmers, as well as transportation. PT Vale manages
hydroelectric power operations and uses water properly
and carefully so as not to interfere with the interests of
the local community. [303-1] [EM-MM-210b.1]
We manage our hydroelectric power operations and use
water carefully so as not to interfere with the interests of
the local communities. Efforts continue to be made withother stakeholders to clean up the lakes with 27 tons ofgarbage being cleared from Lake Matano. This was carriedout in collaboration with the Environmental Service ofEast Luwu Regency, as well as the Center for Ecoregional
Development of South Sulawesi and Maluku. We also
carefully regulate the volume of water and the flow ofwater used to ensure that Lake Matano, Mahalona and
Towuti water levels are maintained, as the three lakes havebeen designated as Nature Tourism Park Conservation Areas
based on the Minister of Agriculture Decree No. 274/Kpts/
Um/4/1979 dated April 24, 1979. [303-2]
We look to optimize the water used for every ton of nickel
in matte production, in accordance with Company Policy
about Water Efficiency and Reduction of Wastewater
Pollution Load. Detail about this policy can refers to http://
www.vale.com/indonesia/EN/sustainability/our-approachin-indonesia/Pages/policies.aspx. During 2021 the efforts
undertaken included:37

Sustainability Report 2021

• Reducing and controlling leaks in the water supply
pipelines in the operational areas• Controlling and reducing overflow in the Matte ponds• Increasing employee awareness of water consumption
savings and daily reporting of water consumption
through daily FMDS meetings, and making water usage
intensity a KPIPT Vale takes water from the lake and sends it to thereservoir. However, we do not calculate the amountof water taken directly from the lake and the lake
did experience water stress throughout 2021. PT Valecalculated that the total water usage in 2021 was
8,681,643 m3, a decrease of 928,769 m3 or 9.7% from
9,611,107 m3 in 2020. The Water Consumption Intensity
value in 2021 decreased to 130.98 m3 per ton Ni,
compared to 131.20 m3 per ton Ni in 2020. Routine water
consumption intensity is reported by PT Vale throughthe RKL-RPL report, and to the public via website
http://www.vale.com/indonesia/EN/sustainability/ourapproach-in-indonesia/Pages/reports.aspx.

We also ensure that the quality of treated wastewater flowing
into the tributaries leading to Lake Matano has met the quality
standards set by the Government. The Company regularly
analyzes the processed effluent using heavy metal content
parameters. Periodically, the Company analyzes the processed
effluent with parameters of heavy metal content. The analysis
was carried out by an accredited independent laboratory,
using the SNI 6989.59:2008 Water and Wastewater method

and the American Public Health Association (APHA) standard
method. The goal is to ensure that the processed effluents
meet the quality standards in accordance with the 2006
Minister of the Environment Regulation No. 9 concerning
Wastewater Quality Standards for Nickel Ore Mining Business
and/or Activities. The inspection results in 2020 showed thatthe quality of the processed effluent has met the quality
standards. [303-4] [POJK51-6.e.3.a] [EM-MM-140a.2]

2021 Effluent Quality Measurement Results
Parameters, Quality Standards, and Measurement Results
Measurement
Location

VolumeProcessed (m3)TSS

Cr Total

Cr6+

Fe

Ni

<200 ppm

0,5 ppm

0,1 ppm

5 ppm

0,5 ppm

East Petea

9,401,210

11.30

0.06

0.008

0.04

0.006

West Petea

57,721,801

10.21

0.06

0.01

0.02

0.01

Far East Petea

26,917,733

9.60

0.07

0.007

0.02

0.006

Lorraine

1,542,917

2.36

0.02

0.005

0.05

0.01

Kathryn

2,022,798

1.70

0.005

0.002

0.01

0.009

[303-5] [EM-MM-140a.1]

Lamoare Creek A

3,511,793

5.09

0.07

0.007

0.009

0.01

Hazardous Waste from Processing/Supporting Activities
and Management Methods

Lamangka 1

4,827,693

3.007

0.04

0.01

0.01

0.01

Lamangka 2

17,079,896

4.84

0.07

0.01

0.01

0.02

Lamangka 38,509,942

9.94

0.15

0.005

0.01

0.01

41,832

9.5

0.04

0.007

0.01

0.02

Description

Unit

Amount Processed
2021

2020

2019

72,23771,025

Nickel in Matte
Production
VolumeTon

65,388Water Usage
Volumem3

8,681,643 9,611,107 10,016,498

Water Usage
Intensitym3/
Ton Ni

130.98131.20141.03

Petea Washing Pad

During the reporting period we did not receive any
complaints regarding alleged pollution of Lake Matano,
Mahalona or Towuti. We have also never received sanctions
related to alleged violations in environmental management.

However, we understand there has been some dissatisfaction
expressed by several parties, and continue to continue
dialogue to find the best solution, and are committed to
implementing sustainable practices. [POJK51-6.e.6]

SocialSocial38

Sustainability Report 2021

SocialSocial Sustainability
Management Performance

Security, Safety, and Health in the Workplace
Management of Material Topics

Employees and thecommunity are partof the PT Vale family.
Together we build
and live side by side togrow, empower, andmaintain health, safety,
and environmental
sustainability.

39

Sustainability Report 2021

PT Vale’s mining activities are strictly managedby following the Mineral and Coal Mining Safety
System (SMKP Minerba). Our commitment is tohave zero fatal work accidents and minimize
occupational diseases (PAK). Compliance with OHS
is the responsibility of the Chief Mine Technical(KTT) and is evaluated by the Board of Directors
through a key performance indicators (KPI)
achievement assessment that is reported to theauthorities. During 2021 there were zero fatal work
accidents and 5,006,592 safe working hours. OHS
management involves management and employees
working with the OHS Central Committee,
the Ministry of Energy and Mineral Resources,
Manpower, and other stakeholders. [3-3a][3-3b][3-3c][33d][3-3e][3-3f]

OHS covers all processes of mining operations andproduction activities, in compliance with regulations
including Ministerial Regulations of Minister Energy
and Mineral Resources Number 26/2018 about
Implementation of the Good Mining Practices andSupervision the Mineral of Coal Mining. Minerba
SMKP aims to ensure the safety and health of all(100%) employees and contractors/supplier workers

without any exception. [POJK51-6.c.2.c][403-1a][403-1b][403-8a]

In 2020, PT Vale launched the a Safe
Work Permit (SWP) as a standard
to be globally applied in all Valeunits. SWPs are work permits thatmust be obtained for project andmaintenance activities before
carrying out the work. The purposeof an SWP is to ensure that all risks
have been identified, and thatsafety controls are in place andcomply with the New Golden Rules
Number 9 (Risk Analysis). [403-1][403-8]
PT Vale applies the New Golden
Rules to improve the protectionof all employees and contractors/
suppliers from injury and fatalities.
The New Golden Rules contain 10priorities that must be followedby employees and contractors/
suppliers. More information about
New Golden Rules can refers to
Intranet of PT Vale. [403-1][403-8]

SocialKey Hazard Identification and Employee Engagement
The implementation of OHS involves theparticipation of employees and contractors/
suppliers workers. It begins with the identificationof the main hazards and is managed with systems/
equipment inherent in operational activities, andincludes all employees and contractors/suppliers
workers. These activities are carried out throughthe Contractor Safety Management System (CSMS),
General Induction Program (GIP), Site SpecificInduction Program (SSIP), Risk Assessment (RA), Job
Safety Analysis (JSA), Safety Talks, Critical Activity
Requirements (CAR), Safe Work Permit (SWP), andfield observations in the form of audits/inspections.
[403-2a][403-4a]

PT Vale has adopted a mechanism where all
employees can report any conditions that endanger
safety and health at work. Reports are submitted
to leader and via the web-based software andsmartphone application IRIS, and depending on
the priority of employee safety, we will remove
employees from dangerous situations, and follow
up on every report submitted by employees,
including conducting investigations in the event ofa work accident.
During 2021, our employee safety and security
improvements and development activities included:[403-2b][403-2c][403-2d]

40

Sustainability Report 2021

· Monthly mandatory contractor forums attended by PJO
from all PT. Vale Indonesia, Tbk partner companies· Annual internal SMKP audits for IUJP companies within PT.
Vale Indonesia, Tbk· SWP and JSA requests before carrying out work
· Monitoring and follow up on any golden rules violations(Smoking and phone detection)
The focus of OHS in 2021 was in the handling of the COVID-19
pandemic and preventing occupational diseases (PAK). PT Valeorganized vaccinations for its employees and contractors/
supplier worker, with 97% receiving vaccination-1, and 96%
receiving vaccination-2. This was in compliance with the2021 Republic of Indonesia Minister of Health Regulation
No. 10 concerning Vaccinations for Combating the COVID-19
Pandemic, which regulated the gotong royong cooperation
vaccine program (VGR), and independent vaccines
carried out by private companies for their Beside that,PT Vale implement 3T [Testing, Treatment, and Tracing]+Vaccinations. We have hospitals and isolation facilities for
COVID-19 to all employees and contractors. [403-3a] [403-2b][4032c][403-2d]

One of the OHS activities involving employees andcontractors/suppliers workers concerned the Prevention
Week 2021 on October 6-102021, with the theme: “Safety isalso about communication. Identify, talk openly about andreport risks”. The aim was to reflect and learn together toHarris Gunawan

realize the vision of zero fatality. The
activity involved the Vale SA CEO and thePT Vale CEO. [403-4a][403-9d]
Our OHS Central Committee is
responsible for OHS through the OHS
Central Committee meeting mechanism,
where employee representatives candiscuss any OHS matters. Management
representatives forward the meeting
results to the Company for follow-up.
During 2021 the OHS Central Committee
held 12 monthly meetings. [403-4b]
We also ensure contractors implement

the Contractor Safety Management System (CSMS), and reward
those contractors that manage OHS properly Contractor
Awards. In 2021, awards were given to one national company,
PT. Leighton Contractors Indonesia and 2 local companies, PT
Welani Jaya and PT Sinar Sentosa Utama.
In 2021 the Company organized and included employees
and contractor workers in OHS training. There were 64 OHS
training sessions attended by 37,248 participants. Some of
the OHS training involves certification to improve employees’
competencies: [403-5a][POJK51-6.c.2.d]· First Operational Supervisor (POP)· Middle Operations Supervisor (POM)· Principal Operations Supervisor (POU)Social

Employee Health
Employee health is one of the essential factors insupporting the Company’s operational activities.
Therefore by applicable government regulations, PT
Vale provides normal working hours of 8 hours per day.
PT Vale also covers its employees through the Social
Security Administering Body (BPJS) health social security
program whereby employees can access health facilities
at referral hospitals. [403-6a]
Annual medical check-ups (MCU) are mandatory for
all employees, and the Company facilitates this bycollaborating with hospitals. During the reporting period,
employees, 2,475 PTVI employees, 9,453 contractor
employees, and 224 YPS-ATS employees undergo the
MCU process.
We also organize non-PAK health promotion activities
for employees and contractor/supplier workers,
including the prevention of HIV/AIDS, and the COVID-19
pandemic, for which we received Gold predicate Awards
from the Ministry of Manpower for the HIV/AIDS
Prevention and Control Program (P2 HIV/AIDS), and the
COVID-19 Response (P2 COVID-19). [403-6b]

OHS Management of High Risk Operations [403-7a][403-9c]

Working
at Heights· Implemented CAR/MHS
01 standard· Conducted training andaudits on the dangers
of working at heights

Lockout, Tagout
and Zero Energy· Conducted training andaudits on the dangers
of operating mobile
equipment· Implemented CAR/MHS
03 standard· Conducted training andaudits on the dangers
of operating heavyequipment

Confined Spaces· Implemented CAR/MHS
05 standard· Implemented CAR/MHS
06 standard· Conducted training forhiring jobs

· Organized explosives
certification· Conducted audits
related to lifting job
hazards· Conducted audits
related to blasting work

Working Near
Dangerous Gases

Working in
Noisy Areas

Working in Heat
Exposure Areas· Conducted industrial
hygiene risk assessment· Conducted industrial
hygiene risk assessment· Conducted industrial
hygiene risk assessment· Conducted direct andonline monitoring· Monitoring· Monitoring· Implemented CAR/MHS
04 standard· Conducted isolation
work training· Conducted audits
related to Isolation
hazards· Used appropriate PPE

Sustainability Report 2021

· Implemented CAR/MHS
02 standard

Mobile Equipment
Operation

Lifting of Loads· Prepared safe working
procedures

41

Light Motor Vehicles

Harris Gunawan

On March 16, 2021 PT Vale introduced 26 new
employee buses. Each bus is equipped with anumber of driving safety features such as antilock braking systems (ABS), seat belt sensors,
CCTV, speed limiters, fire sensor & suppression
systems, and driver fatigue detection. In addition,
to anticipate the spread of COVID-19, the numberof bus passengers was limited to only half the bus
capacity while still adhering to health protocols.

SocialWork Safety Performance
Every year PT Vale conducts an OHS compliance audit thatrefers to the Minerba SMKP and IMS–Environment Healthand Safety Management System. Minerba SMKP audit in 2021
was performed internally by PTVI’s registered SMKP certified
auditor. The audit results show a compliance level of 75.18%.
[403-8b][403-8c]

Overall, OHS management improved in 2021 with no fatal
work accidents (deaths). Meanwhile, in 2021, the average rateof accidents resulting in injury was 0.20%, while for near-missincidents, there were 77 incidents consisting of 70 PT Vale and7 contractors/suppliers. The OHS Severity Rate and Frequency
Rate performance calculation is calculated per 1,000,000
working hours. The calculation does not include exceptions,and only includes PT Vale employees and contractors. [403-9a][403-9b][403-9e][403-9f][EM-MM-320a.1]

OHS Performance Statistics [403-9a]
2021
Description

2020

2019

Sorowako

Bahodopi

Pomalaa

Sorowako

Bahodopi

Pomalaa

Sorowako

Bahodopi

Pomalaa

Number of fatalities

0

0

0

0

0

0

0

0

0

Lost time injuries

4

0

0

3

0

0

0

0

0

First aid injuries

15

0

0

24

0

0

28

0

0

Near miss unsafe action,
unsafe condition

77

0

0

86

0

0

44

0

0

Days lost due to accident(Severity Rate/SR)

0.20

0

0

0.19

0

0

0.25

0

0

Total accident rate
(Frequency Rate/FR)

0.70

0

0

0.51

0

0

0.53

0

0

5 Million Working Hours Without LTI
In 2021 the Exploration Unit of the IGP Department
recorded an achievement of 5 million hours without alost-time injury. This achievement is an outstanding
work safety achievement. The last LTI incident in the PT
Vale Exploration area was in 2013 in the drilling area, andseveral high-risk accidents (HiPo) followed.

42

Sustainability Report 2021

SocialTypes of High Risk OHS Work [403-10]

Rate and Total Occupational Accidents in 2021 [403-9]
Area and Rate
Workplace
Accident Rate
Medical Aid

Sorowako

Bahodopi

Type of Work

Pomalaa

Total

Rate

Total

Rate

Total

Rate

10

0.50

0

0

0

0

Working at heights

Implement MHS 01 standards
Conduct training and audit on working at heights

4

0.20

0

0

0

0

Fatality

0

0

0

0

0

0

Perform audit on blasting jobs

Total

14

0.70

0

0

0

0

Conduct industrial hygiene risk assessment

Blasting

Working Near Dangerous Gases

Sorowako

Bahodopi

Pomalaa

Rate

Total

Rate

Total

Rate

Medical Aid

5

0.32

0

0

0

0

Lost Time Injury &Disabling Injury

3

0.19

0

0

0

0

Fatality

0

0

0

0

0

0

Total

8

0.51

0

0

0

0

Area and Rate
Bahodopi

Pomalaa

Total

Rate

Total

Rate

Total

Rate

Medical Aid

6

0.29

0

0

0

0

Lost Time Injury &Disabling Injury

4

0.25

0

0

0

0

Fatality

0

0

0

0

0

0

Total

10

0.53

0

0

0

0

Sustainability Report 2021

Conduct direct and online monitoring

Working in Noisy Areas

Conduct industrial hygiene risk assessment
Implement noise reduction program and monitoring.

Death/ Serious injury

Hazardous gas poisoning

Loss of hearing sensitivity

Working in Heat Exposure Areas

Conduct industrial hygiene risk assessment

Heat stressType of work identified from Project
Job Demand Analysis:· Performing Engineering Control on mine equipmentclassified with a potential high risk of ergonomic hazards

Musculoskeletal disorder (Low Back
Pain, Hernia Nukleus Pulpolus, etc)

· Working with mine equipment· Material Handling Manual.

· Performing Administrative Control by developing
awareness for mine operators who work with equipmentwith a potential high risk of ergonomic hazards· Administrative control for all types of workwith manual material handling

Rate and Total Occupational Accidents in 2019 [403-9]

Sorowako

Death/ Serious injury

Use appropriate PPE

Total

Workplace
Accident Rate

Certify blasting operators

Prepare safe working procedures

Area and Rate
Workplace
Accident Rate

Threats to Employees

Implemented CAR/MHS 04 standard

Lost Time Injury &Disabling Injury

Rate and Total Occupational Accidents in 2020 [403-9]

43

Mitigation

Social

Occupational HealthPerformance

Dam Safety andSecurity Management

In 2021 there were no reports offatal PAK concerning employees
or contractors/suppliers workers.
They all undergo regular medical
examinations and the dominant PAK
reported was for muscle and spinal
tissue disorders in heavy vehicle
operators. To prevent any dominant
PAK, the Company continues
to conduct occupational healthcampaigns. [403-10a][403-10b][403-10c][403-9d]

Another important aspect that concerns us is thesafety and security of the dams, and in 2021 PT Valecontinued to improve their safety and security as
follows:· Performing Engineering Control
on mining equipment with apotentially high risk of ergonomic
hazards· Carrying out Administrative
Control by raising awareness formining operators who work withequipment that has a potentiallyhigh risk of ergonomic hazards· Administrative control for all typesof manual material handling work

• Operation of the Utilities Central Control Room
(UCCR) located in the Utilities Office can operate
the hydroelectric power plant and thermal plant
remotely. The UCCR facility equipment is also capableof monitoring, providing information and analyzing
the condition of dams, canals, geotechnical aspects,
environmental aspects, and mobilizing the logistics
units.
• The Capital & Project Management Department
continued the Shotcrete Project, especially for thehydro utilization area around the dam and logistics
roads. This project involves the reinforcementof inclined planes to prevent landslides by laying
foundations and spraying concentrate on the plane.
The project is in accordance with the Indonesian Dam
Safety Commission recommendations, and is usedas part of the extension of PT Vale’s power plant
operating license and certificate. The staged project
has entered Phase 2 covering the areas of Karebbe,
Balambano, Tawaki, and logistics roads. Phase 2completion is expected in 2023.
Harris Gunawan

44

Sustainability Report 2021

SocialDiversity and Equal
Opportunities
Number of Employees Based on Position and Gender [405-1a]

Building a Transparent and Respectful
Work Environment
Diversity is fundamental
for PT Vale as it builds atransparent and respectful
work environment. All
Management of PT
Vale commit to support
diversity and we value all
our employees and provide
equal career opportunities(for the staff level as wellas the management level),by respecting diversity, andignoring all discriminatory
practices, including gender,

45

Sustainability Report 2021

race, religion, background,or people with disabilities.
[POJK51-6.c.2.a] [405-1a]

PT Vale is committed
to gradually increasing
the number of female
employees. By 2022, thetarget number of female
workers will be 10.6% 2022.
In the reporting period, therealization of the numberof female employees
is 256 people, or 8.6%.
The Company is open to

GenderPositiondisabled workers who havecompetencies and abilities
in the available positions. In
the 2021 reporting year, thenumber of disabled workers
is three people or 0.1%. [405-1b]
Most of our employees
are local residents, namely
residents of Sorowako andother areas in East Luwu
Regency. By the end of2021, there were 2,570 local
employees, or 86.6% of PT
Vale’s total employees and51.8% as senior staff. Apartfrom PT Vale employees,
there are other contractors/
suppliers workers withthe majority being local
residents. The compositionof local partners is in linewith our policy to encouragecontractors/suppliers to
employ local residents. [405-1b]

Age Group

Male

FemaleManagement

20

2

Senior General Management

74

Senior Staff

31-50

>50

0

18

4

9

1

65

17

343

45

18

294

76

Staff

678

117

63

589

143

Non-Staf

1,595

83

64

1,355

259

2,710

256

146

2,321

499

Total

<30

2,966

2,966

Number and Percentage of PT Vale Employees By Gender, Persons
with Disabilities and Local Workers [405-1b]
Form of Diversity

2021

2020

2019

Total

%

Total

%

Total

%

Male

2,710

91.4

2,749

91.5

2,798

91.9

Female

256

8.6

257

8.5

246

8.1

Total

2,966

100

3,006

100

3,044

100

Employees with
Disabilities

3

0.1

4

0.1

5

0.2

Local Employees

2,570

86.6

2,616

87

2,670

87.7

Gender

SocialIncrease in the Number of Female Employees
and Employees with Disabilities

Support for Gender Equality and Diversity

2021

2020

2019

1

2

3

1:2

1:2

Female Employees

256

257

246

(0.4)

4.5

Employees with
Disabilities

3

4

5

(25.0)(20.0)

Description∆%· To create an environment that
respects everyone’s uniqueness,where everyone has an equal
opportunity to develop their potential.

Number of Female Employees by Management Position
2021

2020

2019

1

2

3

1:2

1:2

Directors

1

1

1

0.0

0.0

Senior Managers

1

0

0

-

-

Middle Managers

9

7

6

28.6 16.7

Position

PT Vale values diversity and inclusion.
We have a Diversity and Inclusion Charter
containing the 5 Company commitments.

∆%

Supervisors

45

12

11

275.0 9.1

Specialists

117

51

37

129.4 37.8

Technicians

83

186

191

(55.4) (2.6)

Total

256

257

246

(0.4)

4.5

· To build a safe and healthy
environment where people arefree to express their ideas, express
their views, and be themselves.
· To implement a transparent,
fair, and bias-free process inrecruiting, evaluating, and creating
a diverse work environment.
· To have Zero tolerance forany kind of harassment,
discrimination or prejudice.
· To have open dialogue and toraise awareness of diversity.
For employees with disabilities, theCompany targeted an increase of
up to 500%, and during 2021 there
were 3 employees with disabilities.

46

Sustainability Report 2021

Currently, there are several workers’ unions
within PT Vale, and through representatives,
the employees and management drewup and agreed on the 19th Collective
Labor Agreement 2021 – 2023.
PT Vale has an open employee recruitment
process, providing equal opportunities to all
regardless of gender, ethnicity, religion, class,political affiliation, school/education or othermatters that may give rise to allegations of
discrimination. During 2021 we did not receive
any complaints regarding allegations of
discrimination in the recruitment process.
We have an on the job training mechanism, asa work guidance program for employees on
new assignments in operational units. Work
guidance is given by employees who previously
worked in the operational units in question.
PT Vale continues to promote awareness among
employees concerning gender diversity andinclusiveness. We organized three programsin 2021 for 230 supervisory level leaders for:• Gender Biased Training;• Unconscious Bias Training; and• How To Build A Culture of Respect
in Vale Indonesia Training

PT Vale already has apolicy about humanrights contained in
the Code of Conduct(CoC) and refers to
the UN Human Rights
Guiding Principles on
Business and Human
Rights. Every year all
employees of PT Valeattended the humanrights policy training.

SocialRatio of Employment
Benefits for Male andFemale Employees

Febriany Eddy

“Early in my career at Vale, I felt that to be
successful in a male-dominated industry
and Company, I had to act, think andspeak ‘like a man’. Now, if I look back manyof my perceptions were actually wrong.
We impose unnecessary boundaries on
ourselves. The higher our position in theorganization, the greater the responsibility
to encourage others to succeed. As aleader, I recognize the influence I have on
the organization. So many people rely on
us to make a difference and create a more
inclusive and more balanced environment.
Diversity, equality and inclusivity are nolonger a choice, but a necessity.”

PT Vale pays employee benefits (remuneration)
without discriminating between males
and females, with a ratio of 1:1. The total
remuneration for employees working at thesame position level may be different, due tofactors such as length of service, provision of
benefits and incentives, including placementin certain locations and special jobs. Several
allowances/incentives are provided to
employees, namely Religious Allowance, Child
Education Allowance, BPJS, Residence, andMaternity Leave. [405-2a]Other Information Disclosure
Employee
Training

Equal Service
to Customers

During 2021 we held employeecompetency developmenttraining activities, with a totalof 121,781 training hours. Thus,
the average training hours
per employee in the reporting
period was 41 hours perperson. [POJK51-6.c.2.d]

PT Vale’s production in the form of nickel in mattewith 80% sold to Vale Canada Limited (VCL), and
20% to Sumitomo Metal Mining Co.Ltd (SMM),
with sales based on agreements. We provide
equal service to both buyers, in accordance withthe contract agreements, including determining
the selling price by referring to the London Metal
Exchange. [POJK51-6.c.1]

The Company’s employee remuneration
has been adjusted to the minimum
wage regulations. In general, the lowest
remuneration for PT Vale employees in 2021
is still 114% higher than the minimum wage
provisions in force in East Luwu Regency.
Employees are also assigned based on theirneeds and competencies so they can develop,
both in terms of career, abilities, and character.
[POJK51-6.c.2.b] [405-2b]Harris Gunawan

47

Sustainability Report 2021

SocialEmpowered and Prosperous
Communities[POJK51-6.c.3.c]

Management ofMaterial Topics
PT Vale has provided benefits tothe local communities. During thereporting period we continued theCommunity Empowerment andDevelopment Program (PPM) in
accordance with PT Vale’s 20182030 PPM Master Plan, as a form ofcorporate social responsibility (CSR)
and allocated US$29,241,288.
The PPM is monitored and under
the responsibility of the Social
Development Program-External
Relations Departement and involves
the active participation of thecommunities and other stakeholders,
including the Government. In
addition, the External Relations
Department has a particular strategy(Standard Operating Procedure)with the community. Evaluationof the PPM is carried out througha direct monitoring mechanism ofbeneficiaries, periodic reporting tostakeholders, as well as Community
Satisfaction Index (IKM) surveys. [3-3a][3-3b][3-3c][3-3d][3-3e][3-3f]

48

Sustainability Report 2021

Social Impact
Assessment [POJK51-6.c.3.a]
Our social impact assessment involves
stakeholders in all operation areas. We
monitor and report the environmental
impact management to the authorities
through the Environmental Monitoring
Plan (RPL), Environmental Management
Plan (RKL), and Environmental
Management Performance Summary
Document (DRKPL) for PROPER
assessment. The social impact assessment
results show the community needs,
maps vulnerable stakeholder groups,
collaboration opportunities with local
governments, and the complaint channels.
[413-1ai][413-1aii][413-1aiii] [EM-MM-210b.2]

We manage the social impact throughthe PPM and Self Reliance Rural Area
Development (PKPM) programs. Othersocial investments involve strategic
partnerships and contributions thatare adjusted based on the stakeholder
mapping, as well as the East Luwu
Regency Government development plan.
Stakeholder mapping covers the Sorowako,
Bahodopi, and Pomalaa areas. [413-1aiv][413-1av]

Negative Impact Management in 2021 [413-1] [413-2ai] [413-2aii]

Number of Villages Affected

Percentage
of Villages in
Operational Areas

Type of Impact

Impact Management and Type ofSocial Investment· An increase in Lake Towuti
water level and an increase in
the river water level in Malili
District· Community Development andEmpowerment for Self Reliance Rural
Area Development (PKPM), StrategicPartnerships, Strategic Contributions· Mining activities in the Pinang
Hill area (CoW area resulted
in a number of farmers notcontinuing their activities)· Periodic monitoring of water levels
used for power generation

Operational vehicle activities
resulting in dusty roads· Providing the infrastructure to
support community development andempowerment (PPM) programs

Sorowako Block· Nuha sub-district consists of
5 Villages/wards· Wasuponda sub-district
consists of 6 Villages/wards· Towuti sub-district consistsof 18 Villages/wards

100%
Note: 5 villages in
Malili sub-district are
not included in the
Ring 1 area

· Malili sub-district consists of
9 Villages/wards· Assessment and compensation

Pomalaa Block· Pomalaa sub-district consistsof 12 Villages/wards

100%· Baula sub-district consists of
10 Villages/wards· Carrying out repairs and arrangementof access roads

Bahodopi Block· East Bungku sub-district
consists of 10 Villages/wards· Bahodopi sub-district
consists of 7 Villages/wards

100%

There has been no impact frommining activities, as the mining
permit is still being processed· Providing the infrastructure to
support community development andempowerment (PPM) programs· Strengthening Community andStakeholder Capacity throughStrategic Partnership Programs andStrategic Contributions

SocialManagement of Social
Impact on Vulnerable
Groups [413-1avi]

Infrastructure Development
and P3SRLB Program – Dongi
Resettlement, Wasuponda

Building Synergy
with the Government

One of our priorities for managing social impacts
is our understanding that local community
groups belong to vulnerable groups. During2021 we continued our existing agreementswith local communities, in accordance with
PPM program directives and policies. Our
cooperation continued through the Sustainable
Environmental Friendly Healthy Agriculture
and Fisheries Development Program (P3SRLB
Program) in the form of infrastructuredevelopment and support for the P3SRLB
infrastructure. P3SRLB activities carriedout during 2021 included: [EM-MM-210b.1]

As a form of the Company’s concern for the local
communities in the residential areas of Dongi in
Wasuponda, PT Vale also carried out its infrastructuredevelopment and the P3SRLB Program throughout 2021.
For infrastructure development, PT Vale renovatedresidents’ houses, constructed drainage and repaired
roads. For the socio-economic sector, the Company
provided assistance and technical capacity development
for P3SRLB cultivation for groups in the Dongi area.

The community
empowerment programis the responsibility of
the Social Development
Program Function at
the External Relations
Department. For PPM,
we continue to build
communication and synergy
with the Government andother stakeholders.

• Constructing a Meeting Hall in Tabarano• Cultivating Organic Vegetable in Dongi• Creating Organic Vegetable Demonstration
plots for the Padoe Group• Creating Organic Rice & Vegetables
Demonstration plots for the Karunsie Group• Optimizing the Compost Housefor the Taipa Group
Note:
Some work is still in progress and will be resumed in 2022.

49

Sustainability Report 2021

PT Vale understands the approaches taken withlocal community groups have not always satisfied
everyone, but there have been no land disputes with
the Company. Therefore, we will continue to improve
our coordination and synergy with the East Luwu
Regency Government through their input, direction,and guidance, and shared expectations to increase workand business opportunities for local communities.

PT Vale with the Ministryof Village, Developmentof Disadvantaged Regions,and Transmigration (PDTT),
and the South Sulawesi
Provincial Government
and East Luwu Regency
Government signed
a Memorandum ofUnderstanding (MoU)
and Collective Labor
Agreement (CLA), covering
the PPM program and the
Self Reliance Rural Area
Development Program(PKPM). This signing was

carried out to synergize theprograms and activities forrealizing the welfare of thecommunity in the PT Valeempowerment area. The
scope of cooperation covers
PPM and PKPM, fostering andstrengthening the government
institutional capacity at thevillage and sub-district level,
fostering and strengthening
the Inter-Village Cooperation
Agency (BAKD) capacity, andfostering and strengthening
the capacity of village-owned
enterprises (BUM-Des) and/ or joint village-owned
enterprises (BUM-Desma).
The PPM-PKPM scope includes
efforts to develop rural areas
through spatial planning. The
impact of this approach has
led to a growth of service
centers, and the developmentof villages in 10 developmentareas based on superior
potential. The developmentareas are located in the Nuha,
Towuti, Wasuponda, and Malili
Districts. Development has been
carried out to create tourism areas,
integrated agriculture (Agropolitan),
pepper plantations, and commodity
processing trading and industry
areas. Other areas will include
animal husbandry and support,
agro-tourism, livestock and nontimber forest product processing,coastal and marine productprocessing industries (minapolitan),urban areas and services, andsupport for agriculture and animalhusbandry.

Social

Building Rural Areas Together
During the reporting period, the Company continued the
2018-2022 RI-PPM in four sub-districts in East Luwu Regency,
namely Nuha, Malili, Wasuponda, and Towuti sub-districts.
The support from PT Vale in 2021 included program financing
in the Sorowako Block amounting to US$2,798,091. The
program expenditure included:• Education - US$57,123• Healthcare - US$836,604• Real Income Level - US$690,304• Economic Independence - US$530,387• Socio-Cultural - US$135,457• Social Environment (Community Participation) -US$76,939• Community Community Institutions - US$471,278

Infrastructure Development
to Support PPM
The PPM program also includes support for thedevelopment of supporting infrastructure for the PPM
program. In 2021, the PPM supporting infrastructure
costs in the Sorowako Block covering the Nuha,
Wasuponda, Towuti, and Malili sub-districts was
US$1,569,563, or 32% of the total cost of US$4,892,895.
The supporting infrastructure included:• Developing the infrastructure to support social andeconomic activities for people living in Dongi Village,
Ledu-Ledu Village, Wasuponda sub-districts.
• Providing electricity and lighting facilities andinfrastructure for public facilities for the Nuha sub-We launched the Micro, Small, Medium Business Product
Shopping Movement known as “SME Breakthrough” incollaboration with PT Vale’s assisted MSMEs in East Luwu
who actively participate in mentoring programs. To date,there are 87 MSMEs in the Nuha, Towuti, Wasuponda andMalili sub-districts following PT Vale guidance and assistance.

Harris Gunawan

Sustainability Report 2021

• Providing and improving public facilities such as futsal sports
facilities in Balantang Village, a Multipurpose Building (GSS),
repairs to floodgates for irrigating rice fields in Laskap
Village, and other public facilities.
• In 2021, PT Vale also carried out repairs to the clean water
pipe network, and managed the distribution of clean waterand provided water tank services in 8 villages in the Towuti
sub-district.
• Renovating and passing over ownership of Puskesmas
buildings in Bahomatefe Village, Bungku Timur sub-districts
through the signing of a Regional Grant Agreement (NPHD)
with the Morowali Regency Government.
The PPM program costs in the Pomalaa, Bahodopi, and Suasua Blocks in 2021 were still focused on completing the 2020
program. The total costs reached AS$525,241 with some
programs continuing into 2022.

PT Vale with the East Luwu Regency Government
inaugurated Towuti Pujasera (“Petahineando”). The
inauguration of Towuti Pujasera in PKPM Region 4 is oriented
towards trade and processed industrial activities. The 26
Pujasera kiosks were constructed from containers at a costof Rp2.2 billion using PKPM funds for the 2018-2019 period.
Pujasera Towuti is projected to become the epicenter ofcreativity and education for the Towuti community, under
the name Towuti Community Center (TCC).

50

districts area community, and pumps to supply water to the
Towuti District area for use in communities in 8 villages inAsuli, Wawondula, Langkea Raya, Baruga, Lioka, Matompi,
Timampu, and Pekaloa.

SocialOther Social Activities
During 2021 PT Vale organized concern activities
and provided social assistance for the surrounding
communities and elsewhere in Indonesia:• We dispatched an Emergency Response Group (ERG)to the eruption disaster area near Mount Semeru,
East Java. The ERG team consisted of 14 people,
including rescue crews, doctors, paramedics, andsecurity personnel to assist in the search and rescue(SAR) operations. We also opened a refugee postin Candipuro sub-district, Lumajang Regency, East
Java, in collaboration with the National Search andRescue Agency (Basarnas), the National Police, and a
joint team under the coordination of the Ministry ofEnergy and Mineral Resources (ESDM).
• PT Vale also sent an ERG to distribute aid toearthquake victims in Mamuju and Majene, West
Sulawesi. Previously, during the emergency response
phase, we sent an ERG team to assist in the searchand evacuation of victims under the coordination of
the ESDM Ministry’s Disaster Preparedness Team.

Complaint Handling andManagement Approach[103-2][413-1][MM7] [POJK51-6.c.3.b]

PT Vale provides access to the public tosubmit and report complaints. All reported
complaints are followed up by the External
Relations Department with the related
functions using various approaches. There
were several complaints/grievances fromthe public, including those delivered directly
during the monthly coordination meetings
with the sub-districts on 2021. PT Vale havea SDI System as application for handlingevery complains that still prepared on 2021.
All work activities that will carried out by
the Company always involves community inthe early stages of implementation so thatduring 2021 PT Vale will not ever had a job
postponed for other non-technical reasons.
Therefore it can be said that PT Vale carries
out all activities operate responsibly andtake into account the social aspects.
[EM-MM-210b.2]

All complaints or reports arefollowed up by the External
Relations Department using various
approaches and involve the related
functions. During 2021, several
complaints from the communities
were submitted directly during themonthly coordination meetings
with the sub-districts. Mostof the community complaints
related to the level of welfare,and we provided the maximum

Community Complaints/Grievances in 2021 and Follow-ups
Type of Complaint/
Grievance

Alleged sulfur spillcontamination
on Mori Island

Community demands
on behalf of indigenous
people to receive a
special portion of
the PPM program

51

Sustainability Report 2021

Harris Gunawan

There was no illegal mining or smallholder mining
activities around PT Vale’s operational areas
throughout 2021, and no strikes occurred formore than one week. In addition, there are nodispute cases concerning the use of customaryland rights of local communities and indigenous
people. We also did not relocate any communities
during the reporting period due to our mining
activities. In accordance with Government
regulations, two of PT Vale’s three blocks alreadyhave Post Mining Plans. In addition, one of thethree blocks that is in PT Vale’s operating area
contains local communities who are indigenous
people who are recognized and recorded in theagreement. [MM4][MM5][MM6][MM8][MM9] [EM-MM-210a.2][EM-MM-210b.2] [EM-MM-310a.2]

PPM program capacity
management

Harris Gunawan

possible response to find thebest solution. Throughout 2021,
202 allegation and complaints
were received in the Company’s
Sorowako, Pomalaa and Bahodopi
Blocks operational areas with 36
proven complaints in 5 categories
covering the social programs,
work opportunities, clean watersupply, compensation payments
and plantation activities in thecontract work areas. Examplesof the resolved complaints withfollow-up included:

Location

Follow-up

Maili
District

PT Vale engaged an independentand accredited third party tofollow up on the allegation. PT Valewith the community, related PT
Vale contractors, and Baltangan
Village officials carried out a clean
up of sulfur on Mori Island.

East
Luwu

An evaluation of the PPM program
management was carried out atthe district level PPM coordination
team, followed up by training
and capacity strengthening.

SorowakoMediation and education carriedout regarding the PPM program
scheme and their involvement at
the program implementation stage

Non-Company Land Use
Non-Company land use has become a chronic
problem in the contract work areas, and in 2021
PT Vale conducted a socio-economic survey andcensus of land users. The results of the study—in
the form of land data and social, economic, andcultural data; and geo-socio-spatial mapping-will be used to mitigate and create problemsolving that not only looks at the root causesof the non-company land use issue, but also
ensures that the action plans carried out take
into account the interests of all parties.

Governance

Governance52

Sustainability Report 2021

Governance

Governance Sustainability
Governance Sustainability
Management Performance

Good governanceimplementation forms
the basis for all of PT
Vale’s operational andcommunity activities
to create more valuable
sustainability, andincrease the trust of all
stakeholders.

53

Sustainability Report 2021

the Shareholders, and is ratified in the GMS. Complete
information disclosure regarding the GMS, the Board of
Directors, the Board of Commissioners, the Committees
under the Board of Commissioners and functions
under the Board of Directors, and the nomination andselection process for members of the Board of Directors
and Board of Commissioners, can be found in the PT
Vale Indonesia Tbk 2021 Annual Report. [2-9][2-10]
We ensure that there is no relationship between
members of the Board of Directors with the Boardof Commissioners, as well as internally between
their respective Boards, which may cause a conflictof interest. There are no Shareholders with direct orindirect relationships with the Company’s suppliers or
supply chain. During the reporting period there were
no indications of a conflict of interest in any decisions
made by PT Vale. [2-15]

PT Vale requires the Board ofCommissioners, Board of Directors,
Company officials, employees andrelated parties act responsibly, honestly,
confidently, respectfully and loyally; andcomply with applicable legal obligations.
This commitment’s success is reflected in
the absence of fines or other legal sanctions
during the reporting period, both from
authorized institutions in managing theextractive industry, as well as from otherregulators. [2-27]

Governance Structure andRemuneration Policy [POJK51-5.a]Based on the 2007 Law No. 40 concerning
Limited Liability Companies, PT Vale’s
governance structure consists of the General
Meeting of Shareholders (GMS) as the highest
governance body, the Board of Directors for the
management of the Company, and the Board ofCommissioners as the supervisor. The nomination
and appointment of the Board of Directors andBoard of Commissioners is under the authority of

The Board of Commissioners and Board of Directors
remuneration is determined through the GMS. The GMS
delegated authority to the Board of Commissioners
to determine the amount and remuneration for the
Board of Directors, after taking into account therecommendations of the Company’s Governance,
Nomination and Remuneration Committee. The
shareholders are the only stakeholders involved in
the process of determining the remuneration for the
Board of Commissioners and the Board of Directors.
Disclosure of information on the Board of Directors andthe Board of Commissioners remuneration ratio can befound in the PT Vale Indonesia Tbk 2021 Annual Report.
[2-19][2-20][2-21]

Governance

Delegation of Authority
As of the end of the reporting
period, PT Vale has notdirectly appointed a memberof the Board of Directors
responsible for sustainability
performance. Responsibility
and decision making forsustainability management
is still the collective
responsibility of the entire
Board of Directors under thecoordination of the President
Director as the Chief
Executive Officer (CEO), andthe supervision of the Boardof Commissioners. The Boardof Directors’ sustainable
governance includes the
economic, environmental, andsocial aspects. Each memberof the Board of Directors candelegate their sustainable
governance responsibilities toCompany officials reportingto them, based on thearea of duty under their
responsibility. [2-11][2-12]

54

Sustainability Report 2021

Sustainable governanceincluding environmental,social and governance (ESG)
management, and the Boardof Directors consults withstakeholders using several
approach methods. Direct
consultation is carried out
by members of the Boardof Directors, while indirect
consultation is carried out
by delegating authority to
appointed Company officials
according to the topics
requiring consultation. In
fulfilling their social andenvironmental responsibility(SER), the Board of Directors
delegates its authority
to the External Relations
Department for consultationand communication withstakeholders. [2-13]

Delegation of Consultation and communication with stakeholders›
External Relations
Department
Board ofDirectors›

Strategic Permitand Formalities
Division

SocialDevelopment
Program Division

Carrying out functions related to PPM including
education, health, economy, institutions, and othersupport schemes, such as arts and culture that areincluded in the partnership program.

Stakeholder
Relations Division

Carrying out the function of building good relations
with stakeholders and encouraging the resolutionof complaints related to the impact of PT Vale’s
operations and community empowerment throughan integrated problem-solving mechanism.

››

Carrying out the functions of development, policy
analysis, social program development strategy,planning and measuring internal performance, as
well as encouraging the completion of the licensing
processes, or operational cooperation agreements
between PT Vale and the government, as well asother related parties.

[POJK51-6.c.3.b]

Communications
Department›

Carries out the communications function to maintain the Company’s
reputation, by managing overall company key messaging to stakeholders,
including managing the Company’s internal communications, media
relations, digital media, public relations and company reporting for
current operations and growth agenda.

For sustainability performance improvements,
the Board of Directors is active involved incompetency development in the Company’ssustainability aspects. Competency development
is carried out through a global leadershipworkshop held annually. In addition, during2021 there were several other activities held todevelop the Board of Directors’ competencies,
including participation in global climate change
conferences. [2-17][POJK51-5.b]Harris Gunawan

S
T
A
K
E
H
O
L
D
E
R
S

Governance

Violation Reporting Facilities Through VWC

Code of Conduct Compliance andViolation Reporting Channels [2-26]
The Company has a number of internal policies that serve as
guidelines for implementing the principles of good corporate
governance (GCG). These policies include the Code of Ethics andConduct, Procurement Norms, Board of Commissioners Charter,
Board of Directors Charter, Governance Committee Charter,
Audit Committee Charter, Internal Audit Charter, Corporate
Secretary Charter, and other policies and procedures.

The Company continuously
disseminates its Code of
Conduct to all parties within
the Company and otherparties outside the Company.
Socialization activities carriedout in 2021 included:• Promotional activities for
ethics and complianceprograms through video
films about behavior to beobserved by employees withinternet access. There werefour series of behavioral video
films made as part of thecode of conduct socializationin 2021.

Harris Gunawan

55

Sustainability Report 2021

• Online Ethics and Complianceprogram training activities
attended by 1,639 employees,
91% of the targeted 1,810
employees with intranet
access.
Anti-corruption and bribery
program training activities
were conducted online
attended by 172 employees
whose work is consideredvulnerable to the risk ofcorruption and bribery.
We have a whistleblower
channel called the Vale
Whistleblower Channel (VWC)
that is connected to theVale S.A. Code of Ethics andConduct Section. We provide
several channels for reporting
violations. Matters that can bereported include corruption,
conflicts of interest,
discrimination, and othermatters that are considered tohave violated regulations, orare not in accordance with theCompany’s code of ethics.

Telephone

Fax

Email

0 800 100 2233

+62 21 2993 8456

vwc@tipoffs.info

WebsiteLetterSMS//valewhistleblowerchannel.tipoffs.info

Vale Whistleblower Channel,+62 812 80400622

PO Box 3035, JKP 10030

VWC is managed by an independent andprofessional whistleblowing service provider
in Indonesia. Each report will be responded toand investigated with procedures that protect
the whistleblower’s rights and the rights of thereported parties, in accordance with applicablelaws. The Company guarantees confidentiality
and independence (no intervention), andimpartiality and immunity in the handling,
investigation and storage of information received
through the VWC.
During 2021 VWC received 33 reports. All
reports are investigated to ascertain if theyshould be followed up or not. Investigations

can be carried out internally or by appointed
external parties. Based on category, the mostreports investigated related to violations in
the form of acts of theft and fraud. The formof sanctions given is related to violations
proven by employees, including 16 employees
receiving the lightest sanctions in the formof written directions, 40 employees receiving
written warnings according to the level ofthe violation. Throughout 2021, none of theemployees received the heaviest sanction in theform of termination of employment. Complete
information disclosure regarding VWC ispresented in the 2021 Annual Report of PT Vale
Indonesia Tbk.

Violation Reporting
Handled Through VWC
Description

2021

Percentage of Valid Allegations Confirmed
After Investigation* (%)
2020

2019

Number of Allegations Received

33

74

24

Percentage of Valid Allegations

85

99

92

Description

2021

2020

2019

Not confirmed

18

19

54

Inconclusive

7

16

13

Confirmed

75

65

33

Notes:* Per year of investigation completedGovernance

Human Rights Self Assessment [EM-MM-210a.3]

Anti-Corruption Support [EM-MM-510a.1]
PT Vale already has an anti-corruption policy that havesigned by the President Director in 2015. Detail about thispolicy can refers to http://www.vale.com/indonesia/EN/
sustainability/our-approach-in-indonesia/Pages/policies.
aspx. We have zero tolerance of corruption and abuse of
power for personal gain. The Company has various channels
that can be used by stakeholders to submit information orreports on any violations or indications of corruption. In
2021, PT Vale did not conduct a re-assessment to identify
operational activities that pose a risk of corruption, as
there has already been an assessment for identifying
the risk of corruption with Hadiputranto Hadinoto &Partners (HHP) Law Firm in the Company. Meanwhile, PT
Vale held anti-corruption socialization and training for
employees, the public and other stakeholders. [205-1] [205-2]
During the reporting period, there was no special anticorruption training for governance body officials, however
PT Vale periodically held refresher training for the Board of
Directors concerning compliance with the Code of Conduct,
to ensure they always act with integrity and transparency,
and listen actively. Anti-corruption communication andsocialization to all employees was carried out through email
blasts and banners, while socialization on PT Vale’s Supplier
Code of Conduct was carried out with work partners. [205-2]

56

Sustainability Report 2021

During 2021, PT Vale held online anti-corruptionsocialization and training for employees, the public andother stakeholders. Activities included:• Ethics and Compliance Training attended by 1,639
participants from a target of 1,810 participants;• Anti-Corruption and Bribery Training for employees
whose work is considered vulnerable to the risk ofcorruption and bribery, attended by 172 participants(91%) out of a target of 189 participants;
PT Vale has an e-procurement process containing
anti-bribery and anti-corruption clauses to minimize
the risk of corruption, which has become part ofcontract management transparency. We provide
Vale Global Anti-Corruption Guidelines for intranet
facilities. During the reporting period PT Valeapproved 421 applications for gifts and hospitality,
out of a total of 456 applications submitted. During
the reporting period PT Vale did not receive any
complaints concerning anti-corruption violations,either by employees or working partners. [205-3]

Harris Gunawan

In 2021 PT Vale conducteda Human Rights (HAM)
Self-Assessment as partof PT Vale Indonesia’scommitment to Respect,
Protect and Remedy
Human Rights conditionsin the Company and all
stakeholders. To ensure its
human rights commitment,
PT Vale organized Human
Rights Training for 94%

of its leaders and staff.
The Human Rights SelfAssessment is part of theSocial Key Performance
Indicators (KPI) andconsists of:• Support for Regional
Development• Human Rights• Socioenvironmental
investments• Relationship with local
communities• Relationship with
Indigenous Peoples• Involuntary
Resettlement• Socioeconomic risks
and impacts• Community Health and
SafetyGovernance

Sustainability Risk Management
Process EffectivenessEconomic Performance
To Build The Nation

Risk management on the implementationof sustainability is part of implementing
the Framework for Integrated Risk
Management (FIRM), which was preparedto take into account ISO 31000, ISO 55001,
and COSO-ERM on Risk Management andAsset Management. Risk management
involves the Board of Directors andBoard of Commissioners with the Boardof Directors supported by management
functions, namely Risk Management, LineManagement, and Internal Audit. The
Board of Commissioners assisted by the
Risk Mitigation Committee supervises
risk management. The Board of Directors
and Board of Commissioners hold regularmeetings to discuss risk management toensure it is included and runs effectively inthe 2021 sustainability. [2-18][POJK51-5.c]“Throughout 2021, PT Vale carried out critical maintenancein the operational processes, and maintained its production
and sales, despite the challenges of tackling the COVID-19
pandemic, which is still our shared responsibility.”

During the reporting period, PT Vale carriedout several activities involving stakeholders
through the gemba walk and town hallmeeting mechanism so stakeholders could
convey important matters to the Board of
Directors. The gemba walk was attended
by functions and employees who conveyed
a number of areas for improvement to the
President Director and CEO of PT Vale.
The town hall meeting was carried out
by PT Vale employees and contractors/

57

Sustainability Report 2021

suppliers workers to convey importantmatters, including those related to safety,
production, and financial performance. [2-16]

Constraints andChallenges for
Implementing
Sustainability
Not all stakeholders understand theimportance of a balance between economic,
social and environmental aspects that forms
the basis for sustainability performance.
Diverse perceptions and interests among
stakeholders can become obstacles andchallenges in achieving sustainability
performance, especially in the social andenvironmental aspects. Management ofnegative impacts also requires a lot of
measurement and documentation that canbe a problem due to limited capabilitiesor the variety of calculation methods. To
overcome these obstacles and challenges, PT
Vale is always improving its communicationand training, as well as monitoring the
calculation data as a basis for performance
evaluation. [POJK51-5.e]Material Topics Management
Disclosure
The direct economic value generated and distributed is
an important basis for PT Vale’s sustainability. In 2021
we produced 65,388 metric tons of nickel in matte, withsales reaching 65,388 metrik ton nickel
in matte, with operating revenues of
AS$953.17 million. Evaluation of the social
community investments is carried out
through direct monitoring of beneficiaries,
and the achievement of Key Performance
Indicators (KPI) targets. [3-3a][3-3b][3-3c][3-3.d]of all the key elements, employees, operations,maintenance, and management. The average
production cost of nickel in matte in 2021 reachedUS$8,430 per ton, an increase from US$6,898 per ton in2020 due to an increase in energy prices.

[3-3.e][3-3.f]During the COVID-19 pandemic, we applied
various ways to maintain the Company’s
stability. We also continued our innovationand superior operational activities byimplementing the Vale Production System(VPS). The VPS requires the involvement
Harris GunawanGovernance

Economic Value Generated
and Distributed

Nickel Production Costs (USD per Ton)
2021

2020

2019

8,430

6,898

7,456

During 2021 we optimized the consolidated economic value generated from our Operating
Revenue and Operating Profit. This report includes information on the economic value
generated and distributed for PT Vale’s operations in Indonesia.

Economic Value Generated and Distributed (Thousand US$) [201-1a][201-1b]
Description

2021

2020

2019

Operating Revenue

953,174

764,744782,012

Other Income

2,714

4,472

4,759

Total Revenue

955,888769,216

786,771

Operating Costs

639,352

573,475

597,367

Economic Value Generated
Nickel in Matte Production Costs
2021
Production Cost
Component

2020

2019

Cost
(Million
US$)

Cost(Million
US$)

Cost(Million
US$)

%

%

%

Fuel and Lubricants

113

16

88

14

146

22

Employee Salaries and Allowances

84,881

79,447

84,58)

Depreciation,
Amortization

157

22

149

23

131

20

Payments to Providers of Capital00(1,525)

Payments to Government

142,966

103,060*

129,029

Indirect Materials

120

17

129

20

119

18

Community Investments

4,892

4,493

3,456

Employee Costs

84

12

75

12

77

12

Coal

60

8

42

7

44

7

Total Economic Value Distributed

872,091

760,475*

815,864

Taxes and Insurance

36

5

32

5

29

5

Royalties

19

3

15

2

16

2

8,741*(29,093)

Others

127

17

117

18

94

14

Production Cost

716

100

647

100

656

100

Economic Value Distributed

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

83,797Note:• The Company’s economic performance is presented

in a consolidated manner based on the audited
financial statements, not by region, area or product.

• The calculation of economic value presented in the

Sustainability Report uses a cash basis method, as
recommended by the GRI Standard, so the figures presented
may differ from the Audited Financial Statements.

• This report does not include disclosure of information

on sustainable financial performance targets related tofinancial literacy and inclusion, as the Company’s line ofbusiness is nickel ore mining and nickel processing.

• *Restatement of the 2020 Sustainability Report [2-4]By the share ownership structure, the Government indirectly
owns the Company’s shares through the ownership of MIND.
ID, which is one of the shareholders of PT Vale. However, the58

Sustainability Report 2021

financial assistance provided is general and is also given toother business entities in Indonesia and still complies with
GCG principles. [201-4a][201-4b] [201-4c]

Governance

Production and Sales
Target and Realization
During the reporting period, we faced
physical climate change in the formof weather anomalies, which affected
the nickel ore mining operations, aswell as the delivery of nickel in matte
to customers. This impacted PT Vale’s
finances, which experienced additional
operating expenses. However, theCompany optimized its nickel ore andnickel in matte production, and sales
and delivery of nickel in matte, thus
meeting the set targets. [201-2ai][201-2aii][201-2aiii][201-2aiv][201-2v]

Nickel in Matte Production Sales Target and Realization in 2021 (Ton) [POJK51-6.b.1]
2021
Description

TargetRealization

Percentage (%)

1

2

3

Production

64,08365,388102

Sales

64,781

66,615103

Actual Production and Sales of Nickel in Matte (Ton)
2021

2020

2019

∆%

1

2

3

1:2

2:3

Production

65,38872,23771,025

-9

0.3

Sales

66,61572,846

72,044-9

1.1

Description

Realization of Nickel in Matte Sales to Buyers
2021

2020

2019

Buyers59

Sustainability Report 2021

Ton

%

Ton

%

Ton

%

Vale Canada
Limited (VCL)

53,26580

58,29780

57,61780

Sumitomo
Metal Mining
Co.Ltd13,35020

14,54820

14,42720

Total

66,615100

72,846100

72,044100

Employment
Benefits [202-1] [405-2]

Employee
Pension Funds

PT Vale pays remuneration
to all employees without
discriminating between
male and female employees.
However, the Company’s
employee remuneration
has been adjusted to theminimum wage regulations.
In 2021, the Company
spent US$33,738,393 forboth male and female
employees, 114% ofminimum wage regulations
in East Luwu District.

[201-3a] [201-3b] [201-3c] [201-3d][201-3e]

We include employees in
a Defined Contribution
Pension Program (PPIP)
managed by the Financial
Institution Pension Fund(DPLK), the Old Age
Security Program and
the Pension Guarantee
Program managed by
BPJS Ketenagakerjaan.
PPIP is mandatory for
employees who haveworked for more than
three years. 10% of the
DPLK contribution is paidby the Company, and 2%
by the employees. In 2021,
the total pension funds
reached US$51,979,558.01
million, up from US$26.7
million in 2020. This amountis sufficient to meet thepayment of the Company’s
obligations to 3,071
employees retiring in 2021.

GovernanceContribution toState Revenue
and Tax-Related
Policies
Another form of economic
value distributed is forpayment of taxes and Payment
of Non-Tax State Revenue(PNBP) to the Government.
Total tax and PNBP payments
in 2021 reached US$142,966
thousand, up 39% from
US$103,060 thousand in 2020.
This is due to an increase innickel prices, which is one of
the factors in the formula forpaying royalties and waterlevy (Surface Water Tax forhydroelectric power) andcorporate income tax due tothe increase in Taxable Profit.

Description

2021

2020*

2019

Payments of Taxes and Levies

117,780

81,937100,713

Payments of Non-tax State Revenue (PNBP)

25,185

21,12428,316

Total Payments (Taxes and PNBP)

142,966

103,060

129,029

Components of PNBP Paid To The Government (US$ Thousand)Description

Sustainability Report 2021

2021

2020

2019

Production Royalties

19,187

15,505

15,860Land Rent for Contract of Work Areas

504

528

472

Other Non-tax State Revenue

5,494

5,091

11,984

Total

25,185

21,12428,316Components of Taxes and Levies Paid To The Government (US$ Thousand)Description

2021

2020*

2019

Value Added Tax

1,242

1,300

868

Land and Building Tax

2,405

2,407

2,379

Employee Income Tax

10,8598,184

11,917

Corporate Income Tax

66,02438,37255,430Regional Taxes, Levies and Grants

23,53922,774

20,784

Third Party Withholding Tax

9,017

4,437

4,467

Duties

4,695

4,462

4,868

Total

117,780

81,937100,713• Note: *Restatement of the 2020 Sustainability Report [2-4]60

Sustainable Development

Taxes and PNBP Payments (US$ Thousand)During 2021 we continued
our development efforts
to increase the production
capacity to 90,000 tonsof nickel in matte, which
is targeted for 2026. The
strategic steps taken by theCompany included:• The Company signed
a Project Cooperation
Framework Agreement/
PCFA for the constructionof a nickel processing
plant in Bahodopi,
Morowali Regency, Central
Sulawesi with one of thestrategic agreements
using LNG.
• The Company plans tobuild a processing plantusing High Pressure Acid
Leach (HPAL) technology

in Pomalaa, Kolaka
Regency, Southeast
Sulawesi.
• The Company plans toincrease the capacity ofthe electric furnace in the
Sorowako Block.

Governance

Product Responsibility
During the reporting
period, PT Vale did notinnovate any of our
products, but continued
to improve production
efficiencies for nickel inmatte, our intermediate
product that is further
processed by our buyers,
VCL and SMM. Nickel inmatte products do notdirectly affect the safety
and security of customers,
and do not directly impact
the users, so no special
handling is required. Nickelthat has been processed
into the final product canbe recycled. During thereporting period, PT Vale
did not receive any claims
for products or productrecalls. [POJK51-6.f.1] [POJK516.f.3] [POJK51-6.f.4]

During 2021, there wereno recalled products as
we already had long-term
contracts with established61

Sustainability Report 2021

standards. In addition, PT
Vale has implemented an
Integrated Vale Production
System as a standard forevaluating the safety andquality of each product(100%) starting at theoperational level. [POJK51-6.c.1][POJK51-6.f.2]

All (100%) of PT Vale’s
products have beenassessed for their healthand safety impacts, so
there were no complaints
regarding safety, healthand security from ouremployees, contractor
workers or customers.
The nickel in matte
production process andproducts comply withthe safety, health andsecurity requirements. The
assessment process takes
place concurrently with the
Restriction of Hazardous
Substances (RoHS)

Supplier Engagement Proportion
standards compliance, andis based on ISO 9001:2008
and ISO 17025:2008
certifications. [416-1][416-2]
Nickel in matte to buyers
is shipped in special
packages with a capacityof 3.3 tons. On the outsideof the package are labels
explaining the productspecifications and handling
methods. During 2021,
there were no complaints
made by buyers regarding
discrepancies in theinformation on the labels.
PT Vale has conductedcompliance assessments onlabeling procedures for all(100%) of its products. [417-1][417-2]

Indirect Economic
Value Management[2-6] [POJK51.6.c.3.a]

PT Vale’s operations
and business activities
provide indirect benefits
to the community throughemployment opportunities
for local communities as
employees in contractor/
supplier companies in
the Company’s supply
chain. Local companies
are defined as companies
located and/or operatingin East Luwu Regency.
Contractor/suppliercompany employees arecompensated for theirwork, which they use tomeet the necessities of life
including shopping, creatinga chain effect on the local
economy.
As of December 31, 2021,
there were 295 local
companies as part of theCompany’s supply chain, or
28.45% of the total numberof vendors/suppliers.

Description

2021

2020

2019

Total

%

Total

%

Total

%

Local Suppliers

295

28

295

29

295

31

National Suppliers

560

54

516

51

463

49

International Suppliers

183

18

200

20

187

20

Total

1.038

100

1.011

100

945

100

Contract Value by Supplier (US$)
2021
Description

2020

2019

Total

%

Total

%

Total

%

Local Suppliers

39,185,111

10

65,795,288

13

61,339,562

11

National Suppliers

265,305,103

69

346,663,150

68

398,597,328

68International Suppliers

77,377,305

20

99,439,738

19

125,028,445

21

Total

381,867,519

100

511,898,176

100

584,965,335

100

In 2021, 386 suppliers were evaluated with 209
or 54% passing the evaluation. Evaluations
were carried out to ensure they meet PT
Vale’s standards and criteria. The evaluation

results also showed that 100% of local
suppliers met PT Vale’s environmental
management standards and criteria.
[308-1]

Supplier Evaluation for 2021
Number of Suppliers
Evaluated

Number of Suppliers Passing
the Evaluation%

Local Suppliers

118

118

100

National Suppliers

236

86

36.44

International Suppliers

33

5

15.15

Total

386

209

54

Description

Appendix

Appendix
Appendix 1

Appendix 2
Contribution to COVID-19 Handling

Implementation of PKPM Activities
Development Areas

Locations

Realization 2021 (in Rupiah)

Tourism Development

Nuha

583,550,000

Commodity trading and processing

Towuti

287,177,500

Livestock and Regional Support

Towuti

88,647,500

Potential Pepper Plantation

Towuti592,615,000

Total (in US$)

Types of Assistance

East Luwu Regency

42,341.03

Coverall clothes, Gloves, Disinfectants, Face
Shields, Genose Detection Equipment, Genose
Bags, Filters, Examination Laptop Support, Antigen
Rapid Tests, Surgical Masks, N95 Masks, Rubber
Boots, Ambulance Rental.

6,702.13

Ambulance rental for 9 months.

Towuti

1,694,435,000

Southeast Sulawesi
Province

Agrotourism Development

Wasuponda

2,837,796,993

Kolaka Regency

6,702.13

Ambulance rental for 9 months.

Livestock and non-timber
forest product processing

Wasuponda + Nuha

149,155,500

South Sulawesi
Province

13,085.11

Ambulance rental for 9 months.

25,280.42

Face Shields, KN 95 Masks, N95 Masks, Surgical
Masks, Antigen Rapid Tests.

Integrated Agriculture

Urban Services

Malili183,597,500

Morowali Regency

Coastal Sea and Seafood
Processing Industry

Malili322,517,500

Note: Assistance was given to hospitals, health services, and the communities

Agriculture, Plantation andLivestock Support

Malili

PPM Secretariat Team

62

Area

Sustainability Report 2021

Luwu Timur

137,125,052

717,985,500

Appendix

Appendix 3
List of Protected Species Under the IUCN Red List [304-4][MM1] [304-1]
Species Name

Protection Status

Monyet Digo

Macaca ochreata

Vulnerable

Rusa Timor
Anoa

Rusa timorensis
Bubalus sp.

Vulnerable
Endangered

Babi Hutan

Sus celebensis

Cabai Panggul Kelabu
Cabai Panggul Kuning

Local Name

Species Name

Protection Status

AgathisAgathis dammara

Vulnerable

Eboni

Diospyros celebica

Vulnerable

Near threatened

Manggis Hutan

Garcinia celebica-

Dicaeum celebicum

Least Concern

Jambu-jambu

Kjelbergiodendron celebicum-

Dicaeum aureolimbatum

Least Concern

Elang Bondol

Haliastur indus

Least Concern

Kayu asa

Lithocarpus celebicus

Least Concern

Elang Alap Kecil

Accipiter nanus

Near threatenedBuriWeinmannia devogelii-

Elang Alap Nipon

Accipiter gularis

Least Concern

Angsana

Dillenia serrata

Least Concern

Elang Hitam

Ictinaetus malayensis

Least Concern

Alap-alap Sapi

Falco moluccensis

Least Concern

Bayur

Pterospermum celebicum

Least Concern

Elang Alap Ekor Totol

Accipiter trinotatus

Least Concern

Belimbing Majo

Sarcotheca celebica-

Elang Ular Sulawesi

Spilornis rufipectus

Least Concern

Cenrana

Pterocarpus indicus

Endangered

Elang Tiram

Pandion haliaetus

Least Concern

Kantong Semar Maksimum

Nepenthes maxima-

Rhamphococcyx calyorhynchus

Least Concern

Tiong Lampu Sulawesi

Coracias temminckii

Least Concern

Kantong Semar Bersungut

Nepenthes tentaculata

Least Concern

Kepudang Sungu Biru

Coracina temminckii

Least Concern

Kantong Semar

Nepenthes petiolata

Vulnerable

Udang Merah Sulawesi

Ceyx fallax

Near threatened

Belulang

Stemonurs celebicus-

Pelatuk Kelabu Sulawesi

Mulleripicus fulvus

Least Concern

Julang Sulawesi

Rhyticeros cassidix

Vulnerable

Lokomomo

Deplanchea bancana

Least Concern

Rhabdotorrhinus exarhatus

Vulnerable

Kayu Mata Kucing

Hopea celebica

Vulnerable

Serindit Sulawesi

Loriculus stigmatus

Least Concern

DengenDillenia serrata

Least Concern

Kring-Kring Bukit

Prioniturus platurus

Least Concern

Kumea

Manilkara fasciculata

Vurnerable

Raja Perling Sulawesi

Basilornis celebensis

Least Concern

Maleo Senkawor

Macrocephalon maleo

Endangered

Knema

Knema matanesis

Least Concern

Kadalan Sulawesi

Kangkareng Sulawesi

63

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

Sustainability Report 2021

Local Name

Independent Assurance Statement

Independent
Assurance
Statement/ŶĚĞƉĞŶĚĞŶƚƐƐƵƌĂŶĐĞ^ƚĂƚĞŵĞŶƚƌĞǀŝĞǁŝŶŐƐƵƐƚĂŝŶĂďŝůŝƚǇƌĞƉŽƌƚƐĂŶĚŝŶƚĞŐƌĂƚĞĚƌĞƉŽƌƚƐŽĨŽƌŐĂŶŝǌĂƚŝŽŶƐŝŶƚŚĞŽŝůĂŶĚŐĂƐŝŶĚƵƐƚƌǇƐĞĐƚŽƌ͖ĂƐǁĞůůĂƐŬŶŽǁůĞĚŐĞ ŝŶ ƚŚĞ /^K ϮϲϬϬϬ͕ ƚŚĞ ƉƌŝŶĐŝƉůĞƐ ĂŶĚ ƐƚĂŶĚĂƌĚƐ ŽĨ ϭϬϬϬ ĐĐŽƵŶƚďŝůŝƚǇ͕ ƚŚĞ 'Z/ ^ƵƐƚĂŝŶĂďŝůŝƚǇZĞƉŽƌƚŝŶŐ'ƵŝĚĞůŝŶĞƐ͕ĂŶĚƚŚĞƉĞƌƚŝŶĞŶƚĐŽƵŶƚƌǇƌĞƉŽƌƚŝŶŐƌĞŐƵůĂƚŝŽŶ͘dŚĞϮϬϮϭ^ƵƐƚĂŝŶĂďŝůŝƚǇZĞƉŽƌƚŽĨWdsĂůĞ/ŶĚŽŶĞƐŝĂdďŬEƵŵďĞƌƐƐƵƌĂŶĐĞdǇƉĞ ƐƐƵƌĂŶĐĞ>ĞǀĞů ZĞƉŽƌƚŝŶŐ^ƚĂŶĚĂƌĚƐ͗ϭϭͬϬϬϬͲϭϳϰͬ/sͬϮϬϮϮͬ^ZͲƐŝĂͬ/ŶĚŽŶĞƐŝĂ͗dǇƉĞϭ͗DŽĚĞƌĂƚĞ
͗'Z/^ƚĂŶĚĂƌĚϮϬϮϭŽŶƐŽůŝĚĂƚĞĚ͕'Z/'ϰDŝŶŝŶŐĂŶĚDĞƚĂůƐ;DD^^Ϳ͕^^DĞƚĂůƐĂŶĚDŝŶŝŶŐ͕ĂŶĚd&^ƚƌĂƚĞŐǇ͘͗^ƵƐƚĂŝŶĂďůĞ&ŝŶĂŶĐĞZĞŐƵůĂƚŝŽŶWK:<EŽ͘ϱϭͬϮϬϭϳ;/ŶĚŽŶĞƐŝĂͿZĞƉŽƌƚŝŶŐZĞŐƵůĂƚŝŽŶĞĂƌƐƚĂŬĞŚŽůĚĞƌƐ͕Wd sĂůĞ /ŶĚŽŶĞƐŝĂ dďŬ (“the Company” or the “Reporting Organization”) has asƐŝŐŶĞĚ ^ŽĐŝĂů ZĞƐƉŽŶƐŝďŝůŝƚǇ ƐŝĂ
(“SR Asia”) to assess its ϮϬϮϭ ^ƵƐƚĂŝŶĂďŝůŝƚǇ ZĞƉŽƌƚ (“the Report”) for the reporting period of :ĂŶƵĂƌǇ ϭƐƚ ƚŽĞĐĞŵďĞƌϯϭƐƚ͕ϮϬϮϭ͘dŚĞŽŵƉĂŶǇŝƐĂŵĞŵďĞƌŽĨsĂůĞŐůŽďĂůDŝŶŝŶŐŽŵƉĂŶǇĂŶĚŝƐůŝƐƚĞĚŽŶ/ŶĚŽŶĞƐŝĂ^ƚŽĐŬǆĐŚĂŶŐĞ͘ /ƚƐ ŶŝĐŬĞů ŵŝŶŝŶŐ ĂŶĚ ƉƌŽĐĞƐƐŝŶŐ ŽƉĞƌĂƚŝŽŶ ĂƌĞ ůŽĐĂƚĞĚ ŝŶ ^ƵůĂǁĞƐŝ /ƐůĂŶĚ͕ /ŶĚŽŶĞƐŝĂ͘ dŚŝƐ ŝƐ ƚŚĞ
Independent Assurance Statement (“the Statement”) that ƌĞĨůĞĐƚƐ ƚŚĞ ƌĞƐƵůƚƐ ŽĨ ĂƐƐƵƌĂŶĐĞ ǁŽƌŬ ĐŽŶĚƵĐƚĞĚĨŽůůŽǁŝŶŐƚŚĞƐƉĞĐŝĨŝĐŵĞƚŚŽĚƐĂŶĚĂƉƉƌŽĂĐŚĞƐĂƐĂŐƌĞĞĚďǇƚŚĞ“Management.”
/ŶƚĞŶĚĞĚhƐĞƌĂŶĚWƵƌƉŽƐĞdŚĞ ƉƵƌƉŽƐĞ ŽĨ ƚŚŝƐ ^ƚĂƚĞŵĞŶƚ ŝƐ ƚŽ ƉƌŽǀŝĚĞ ŽƵƌ ĂƐƐĞƐƐŵĞŶƚ ƌĞƐƵůƚƐ ƚŽ ƚŚĞ ƐƚĂŬĞŚŽůĚĞƌ ďĂƐĞĚ ŽŶ ƚŚĞ ĂƐƐƵƌĂŶĐĞƐƚĂŶĚĂƌĚƐ͕ĂƐǁĞůůĂƐƚŚĞĂƉƉůŝĐĂďůĞĚŽŵĞƐƚŝĐƌĞƉŽƌƚŝŶŐƌĞŐƵůĂƚŝŽŶĂŶĚƚŚĞŝŶƚĞƌŶĂƚŝŽŶĂůƌĞƉŽƌƚŝŶŐƐƚĂŶĚĂƌĚƐƵƐĞĚĂƐƌĞĨĞƌĞŶĐĞƐŝŶĚƌĂĨƚŝŶŐƚŚĞZĞƉŽƌƚĐŽŶƚĞŶƚ͘It presents SR Asia’s opinion, findings, and recommendations on tŚĞZĞƉŽƌƚĐŽŶƚĞŶƚ͕ŝŶĐůƵĚŝŶŐƚŚĞOrganization’s sustainability commitments, governance, strategies, and achievemenƚƐĚƵƌŝŶŐ ƚŚĞƌĞƉŽƌƚŝŶŐƉĞƌŝŽĚ͘ dŚĞ ƐƚĂƚĞŵĞŶƚ ǁĂƐƉƌĞƉĂƌĞĚĂŶĚ ŝƐƐƵĞĚ ĂƐ Ă ƌĞƐƵůƚ ŽĨ ĂƐƐƵƌĂŶĐĞǁŽƌŬ ďĂƐĞĚ ŽŶ ƚŚĞƐĐŽƉĞĂŶĚƉƌŽĐĞĚƵƌĞƐǁŝƚŚƐŽŵĞůŝŵŝƚĂƚŝŽŶƐĂƉƉůŝĞĚ͘tĞKEKdƌĞĐŽŵŵĞŶĚĂŶǇƉĂƌƚŝĞƐƚŽŝŶƚĞƌƉƌĞƚŽƌĐŽŶĐůƵĚĞthe Company’s sustainability or its whoůĞƉĞƌĨŽƌŵĂŶĐĞŵĞƌĞůǇďĂƐĞĚŽŶƚŚŝƐƐƚĂƚĞŵĞŶƚŽƌƚŚĞƌĞƉŽƌƚ͘ZĞƐƉŽŶƐŝďŝůŝƚŝĞƐZĞƐƉŽŶƐŝďŝůŝƚŝĞƐ ŽĨ ^Z ƐŝĂ ĂƌĞ ƚŽ ĞǀĂůƵĂƚĞ ƚŚĞ ZĞƉŽƌƚ ĨŽƌ ƉĞƌĨŽƌŵŝŶŐ ĂŶ ĂƐƐƵƌĂŶĐĞ ƐĞƌǀŝĐĞ͕ EKdĂŶ ĂƵĚŝƚ ĂŶĚ ƚŽ ĐŽŵĞ ƵƉ ǁŝƚŚ ƌĞĐŽŵŵĞŶĚĂƚŝŽŶƐ ĂƐ ǁĞůů ĂƐ ƚŚĞ ^ƚĂƚĞŵĞŶƚ͘ dŚĞ ZĞƉŽƌƚ ĐŽŶƚĞŶƚ͕ ŝŶĐůƵĚŝŶŐƉƌĞƐĞŶƚĂƚŝŽŶŽĨĐůĂŝŵƐ͕ĚĂƚĂ͕ŝŶĨŽƌŵĂƚŝŽŶ͕ĂŶĚĨŝŐƵƌĞƐ͕ŝƐƚŚĞƐŽůĞƌĞƐƉŽŶƐŝďŝůŝƚǇŽĨƚŚĞDĂŶĂŐĞŵĞŶƚ͘^ZƐŝĂŝƐĂůƐŽƌĞƐƉŽŶƐŝďůĞ ŽŶůǇ ƚŽ ƉƌĞƐĞŶƚ ƚŚĞ ƌĞƐƵůƚƐ ŽĨ ĂƐƐƵƌĂŶĐĞ ǁŽƌŬ ŝŶĐůƵĚŝŶŐ ƚŚĞ ^ƚĂƚĞŵĞŶƚ ƚŽ ƚŚĞ DĂŶĂŐĞŵĞŶƚ͕ ǁĞ ĂůƐŽŚĂǀĞ ĂŶ ĞƚŚŝĐĂů ĐŽĚĞ ŽĨ ĐŽŶĚƵĐƚ ŐŽǀĞƌŶŝŶŐ ^Z ƐŝĂ EKd ƚŽ ĚŝƐĐůŽƐĞ ƚŚĞ ƌĞƐƵůƚƐ ŽĨ ĂƐƐƵƌĂŶĐĞ ǁŽƌŬ͕ ĚĂƚĂ͕ ĂŶĚŝŶĨŽƌŵĂƚŝŽŶ ĨŽƌ ĂŶǇ ƉƵƌƉŽƐĞƐ Žƌ ƚŽ ĂŶǇ ŽƚŚĞƌ ŝŶĚŝǀŝĚƵĂůƐ Žƌ ŽƌŐĂŶŝǌĂƚŝŽŶƐ͘ ^Z ƐŝĂ ŚĂƐ EK ƌĞƐƉŽŶƐŝďŝůŝƚŝĞƐ ŽƌĂĐĐŽƵŶƚĂďŝůŝƚŝĞƐ ĨŽƌ ĂŶǇ ƌŝƐŬƐ Žƌ ĐůĂŝŵƐ ĂƌŝƐŝŶŐ ĨƌŽŵ ƚŚŝƌĚͲƉĂƌƚǇ ƌĞůŝĂŶĐĞ ŽŶ ƚŚĞ ƌĞƐƵůƚƐ ŽĨ ĂƐƐƵƌĂŶĐĞ ǁŽƌŬ͕ ƚŚĞ^ƚĂƚĞŵĞŶƚ͕ĂŶĚƚŚĞZĞƉŽƌƚ͕ŽƌĨƌŽŵĂŶǇŝƐƐƵĞƐ͕ĚĂƚĂ͕ĂŶĚŝŶĨŽƌŵĂƚŝŽŶƚŚĂƚĂƌĞŶŽƚĐŽǀĞƌĞĚŝŶƚŚŝƐ^ƚĂƚĞŵĞŶƚŽƌƚŚĞZĞƉŽƌƚ͘/ŶĚĞƉĞŶĚĞŶĐĞ͕/ŵƉĂƌƚŝĂůŝƚǇ͕ĂŶĚŽŵƉĞƚĞŶĐǇ
^ZƐŝĂĂƉƉůŝĞƐƚŚĞĂƐƐƵƌĂŶĐĞŵĞĐŚĂŶŝƐŵƐĂŶĚƉƌŽĐĞĚƵƌĞƐďĂƐĞĚŽŶĂƉƌŽĨĞƐƐŝŽŶĂůĐŽĚĞŽĨĐŽŶĚƵĐƚƚŚĂƚŵĂŶĚĂƚĞƐĂůů ǁŽƌŬƐ ĂƌĞ ƉĞƌĨŽƌŵĞĚ ŝŶ ĂŶ ŽďũĞĐƚŝǀĞ ĂŶĚ ƚƌƵƚŚĨƵů ŵĂŶŶĞƌ͘ EK ŵĞŵďĞƌƐ ŽĨ ƚŚĞ ƐƐƵƌĂŶĐĞ dĞĂŵ ŚĂǀĞ ĂŶǇƌĞůĂƚŝŽŶƐŚŝƉƐǁŝƚŚƚŚĞŽŵƉĂŶǇƚŚĂƚĐĂŶƉƌĞǀĞŶƚƚŚĞŵƚŽƉƌŽǀŝĚĞĂŶŝŶĚĞƉĞŶĚĞŶƚĂŶĚŝŵƉĂƌƚŝĂůƐƚĂƚĞŵĞŶƚ͘^ZƐŝĂĂůƐŽ ĐŽŶĨŝƌŵƐ ƚŚĂƚ ƚŚĞ ĂƉƉŽŝŶƚĞĚ ƐƐƵƌĂŶĐĞ dĞĂŵ ŵĞŵďĞƌƐ ŚĂǀĞ ĂĚĞƋƵĂƚĞ ƐŬŝůůƐ ĂŶĚ ĞǆƉĞƌƚŝƐĞ ŝŶ ǁƌŝƚŝŶŐ ĂŶĚ^ZƐŝĂ/ŶĚĞƉĞŶĚĞŶƚƐƐƵƌĂŶĐĞ^ƚĂƚĞŵĞŶƚ͕ǀĞƌƐŝŽŶϮϬϮϮ͕ƉĂŐĞϭŽĨϰ

64

Sustainability Report 2021

dǇƉĞĂŶĚ>ĞǀĞůŽĨƐƐƵƌĂŶĐĞ^ĞƌǀŝĐĞϭ͘Ϯ͘dǇƉĞϭĂƐƐƵƌĂŶĐĞŽŶƚŚĞZĞƉŽƌƚĐŽŶƚĞŶƚŵŽĚĞƌĂƚĞůĞǀĞůŽĨĂƐƐƵƌĂŶĐĞ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ĂƚĂĂŶĚŝŶĨŽƌŵĂƚŝŽŶŝŶƚŚĞZĞƉŽƌƚĨŽƌƚŚĞƉĞƌŝŽĚŽĨ:ĂŶƵĂƌǇϭƐƚƚŽĞĐĞŵďĞƌϯϭƐƚ͕ϮϬϮϭ͘DĂƚĞƌŝĂů ƚŽƉŝĐƐ ŝŶ ƚŚĞ ZĞƉŽƌƚ ĐŽŶƚĞŶƚ ƚŚĂƚ ŚĂǀĞ ďĞĞŶ ŝĚĞŶƚŝĨŝĞĚ ďǇ ƚŚĞ ŽŵƉĂŶǇ͗ ŽĐĐƵƉĂƚŝŽŶĂů ŚĞĂůƚŚ ĂŶĚƐĂĨĞƚǇ͖ƉŽƐƚͲŵŝŶŝŶŐƌĞŚĂďŝůŝƚĂƚŝŽŶ͖ĞŵŝƐƐŝŽŶ͖ĞŶĞƌŐǇ͖ůŽĐĂůĐŽŵŵƵŶŝƚǇ͖ĞĐŽŶŽŵŝĐƉĞƌĨŽƌŵĂŶĐĞ͖ĚŝǀĞƌƐŝƚǇĂŶĚĞƋƵĂůŽƉƉŽƌƚƵŶŝƚǇ͖ǁĂƐƚĞ͖ďƵƐŝŶĞƐƐĞƚŚŝĐƐ͖ΘǁĂƚĞƌĂŶĚĞĨĨůƵĞŶƚƐ͘ϯ͘ &ŝŶĂŶĐŝĂů ĚĂƚĂ͕ ŝŶĨŽƌŵĂƚŝŽŶ͕ ĂŶĚ ĨŝŐƵƌĞƐ ŝŶ ƚŚĞ ZĞƉŽƌƚ ĐŽŶƚĞŶƚ ĂƌĞ EKd ŝŶĐůƵĚĞĚ ŝŶ ƚŚĞ ĐŽƉĞ ŽĨĂƐƐƵƌĂŶĐĞ͘ ^Z ƐŝĂ ĂƐƐƵŵĞƐ ƚŚĞ ŽŵƉĂŶǇ͕ Žƌ ŝŶĚĞƉĞŶĚĞŶƚ ƉĂƌƚŝĞƐ͕ Žƌ ŽƚŚĞƌ ƉĂƌƚŝĞƐ ĂƐƐŽĐŝĂƚĞĚǁŝƚŚ ƚŚĞ ŽŵƉĂŶǇ͕ ŚĂǀĞ ǀĞƌŝĨŝĞĚ ĂŶĚͬŽƌ ĂƵĚŝƚĞĚ ĂŶǇ ĚĂƚĂ ĂŶĚ ŝŶĨŽƌŵĂƚŝŽŶ ƌĞůĂƚĞĚ ƚŽ ĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘ϰ͘ ǀĂůƵĂƚŝŽŶŽĨƉƵďůŝĐůǇĚŝƐĐůŽƐĞĚŝŶĨŽƌŵĂƚŝŽŶ͕ƐǇƐƚĞŵ͕ĂŶĚƉƌŽĐĞƐƐŽĨƚŚĞŽŵƉĂŶǇƚŽĞŶƐƵƌĞĂĚŚĞƌĞŶĐĞŽĨƚŚĞZĞƉŽƌƚĐŽŶƚĞŶƚƚŽƚŚĞƌĞƉŽƌƚŝŶŐƉƌŝŶĐŝƉůĞƐ͘ϱ͘ ĚŚĞƌĞŶĐĞƚŽƚŚĞĨŽůůŽǁŝŶŐƌĞƉŽƌƚŝŶŐƉƌŝŶĐŝƉůĞƐ͕ƐƚĂŶĚĂƌĚƐ͕ĂŶĚƌĞŐƵůĂƚŝŽŶƐ͗ĂͿ dŚĞ ZĞŐƵůĂƚŝŽŶ ŽĨ /ŶĚŽŶĞƐŝĂ &ŝŶĂŶĐŝĂů ^ĞƌǀŝĐĞ ƵƚŚŽƌŝƚǇ EŽ͘ϱϭͬWK:<͘ϬϯͬϮϬϭϳ ƌĞŐĂƌĚŝŶŐ ƚŚĞ/ŵƉůĞŵĞŶƚĂƚŝŽŶŽĨ^ƵƐƚĂŝŶĂďůĞ&ŝŶĂŶĐĞĨŽƌ&ŝŶĂŶĐŝĂů^ĞƌǀŝĐĞ/ŶƐƚŝƚƵƚŝŽŶ͕>ŝƐƚĞĚ͕and Public Company (“POJK51”);ďͿ dŚĞŽŶƐŽůŝĚĂƚĞĚƐĞƚŽĨ'Z/^ƵƐƚĂŝŶĂďŝůŝƚǇZĞƉŽƌƚŝŶŐ^ƚĂŶĚĂƌĚƐϮϬϮϭ;'Z/^ƚĂŶĚĂƌĚƐͿŝƐƐƵĞĚďǇƚŚĞ'ůŽďĂůZĞƉŽƌƚŝŶŐ/ŶŝƚŝĂƚŝǀĞĂŶĚŝƚƐ'Z/'ϰDŝŶŝŶŐĂŶĚDĞƚĂůƐŝƐĐůŽƐƵƌĞ;'Z/Ͳ'ϰDDͿ͖ĐͿ ^ƵƐƚĂŝŶĂďůĞĐĐŽƵŶƚŝŶŐ^ƚĂŶĚĂƌĚƐĨŽƌDĞƚĂůƐĂŶĚDŝŶŝŶŐ;DͲDDͿŝƐƐƵĞĚďǇƚŚĞ^ƵƐƚĂŝŶĂďŝůŝƚǇĐĐŽƵŶƚŝŶŐ^ƚĂŶĚĂƌĚŽĂƌĚ;^^Ϳ͖ĂŶĚĚͿ dĂƐŬ&ŽƌĐĞŽŶůŝŵĂƚĞͲZĞůĂƚĞĚ&ŝŶĂŶĐŝĂůŝƐĐůŽƐƵƌĞƐ;d&ͿƐƚƌĂƚĞŐǇƉŝůůĂƌĐƌĞĂƚĞĚďǇƚŚĞ&ŝŶĂŶĐŝĂů^ƚĂďŝůŝƚǇŽĂƌĚ;&^Ϳ͘
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ŶĂůǇƐŝƐŽĨŝŶĚŝĐĂƚŽƌƐ͕ƐƚĂŶĚĂƌĚƐ͕ŽƌƉƌŝŶĐŝƉůĞƐŽƚŚĞƌƚŚĂŶƚŚŽƐĞŵĞŶƚŝŽŶĞĚŝŶƚŚĞ^ƚĂƚĞŵĞŶƚ ƐƐĞƐƐŵĞŶƚ ŽĨ ƌĞŐƵůĂƚŝŽŶƐ͕ ŝŶĚŝĐĂƚŽƌƐ͕ ƐƚĂŶĚĂƌĚƐ͕ ŐƵŝĚĞůŝŶĞƐ͕ ĂŶĚ ƉƌŝŶĐŝƉůĞƐ ŽƚŚĞƌ ƚŚĂŶ ƚŚŽƐĞ ŝŶĚŝĐĂƚĞĚ ŝŶ ƚŚĞ^ƚĂƚĞŵĞŶƚ͘ǆƉƌĞƐƐŝŽŶŽĨŽƉŝŶŝŽŶ͕ďĞůŝĞĨ͕ĞǆƉĞĐƚĂƚŝŽŶ͕ĂĚǀĞƌƚŝƐĞŵĞŶƚ͕ĂŶĚĨƵƚƵƌĞƉůĂŶŶŝŶŐŽĨƚŚĞŽŵƉĂŶǇĂƐŝŶĚŝĐĂƚĞĚŝŶ
ƚŚĞZĞƉŽƌƚĐŽŶƚĞŶƚ͘
Stakeholders’ engagement that might be taken by the ŽŵƉĂŶǇŝŶĚĞǀĞůŽƉŝŶŐƚŚĞZĞƉŽƌƚ͘&ŝŶĂŶĐŝĂů ƉĞƌĨŽƌŵĂŶĐĞ ĚĂƚĂ ĂŶĚ ŝŶĨŽƌŵĂƚŝŽŶ ĂƐ ƉƌĞƐĞŶƚĞĚ ŝŶ ƚŚĞ ŽŵƉĂŶǇ’s ĨŝŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐĂŶĚĚŽĐƵŵĞŶƚƐ͕ŽƚŚĞƌƚŚĂŶƚŚŽƐĞŵĞŶƚŝŽŶĞĚŝŶƚŚĞZĞƉŽƌƚ͘dŽƉŝĐƐ͕ ĚĂƚĂ͕ ĂŶĚ ŝŶĨŽƌŵĂƚŝŽŶ ŽƵƚƐŝĚĞ ƚŚĞ ƌĞƉŽƌƚŝŶŐ ƉĞƌŝŽĚ͕ Žƌ ŝŶ ƚŚĞ ƉƵďůŝĐ ĚŽŵĂŝŶ ŶŽƚ ĐŽǀĞƌĞĚ ŝŶ ƚŚĞƌĞƉŽƌƚŝŶŐ ƉĞƌŝŽĚ͕ ŽƚŚĞƌ ƚŚĂŶ ƚŚŽƐĞ ŵĞŶƚŝŽŶĞĚ ƵŶĚĞƌ ƚŚĞ ĚĞĨŝŶŝŶŐ ŵĂƚĞƌŝĂůŝƚǇ ƐĞĐƚŝŽŶ ĂŶĚ ĚŝƐĐƵƐƐŝŽŶ ŽŶĚĞĨŝŶŝŶŐZĞƉŽƌƚĐŽŶƚĞŶƚ͘
^ZƐŝĂ/ŶĚĞƉĞŶĚĞŶƚƐƐƵƌĂŶĐĞ^ƚĂƚĞŵĞŶƚ͕ǀĞƌƐŝŽŶϮϬϮϮ͕ƉĂŐĞϮŽĨϰIndependent Assurance Statement

Independent
Assurance
StatementDĞƚŚŽĚŽůŽŐǇZĞĐŽŵŵĞŶĚĂƚŝŽŶƐƐŝŐŶĂŶƐƐƵƌĂŶĐĞdĞĂŵǁŚŽƐĞŵĞŵďĞƌƐĂƌĞĞǆƉĞƌƚƐŝŶƐƵƐƚĂŝŶĂďŝůŝƚǇƌĞƉŽƌƚĚĞǀĞůŽƉŵĞŶƚĂŶĚĂƐƐƵƌĂŶĐĞ͘WƌĞͲĞŶŐĂŐĞŵĞŶƚƉŚĂƐĞǁĂƐĐŽŶĚƵĐƚĞĚƚŽĞŶƐƵƌĞƚŚĞŝŶĚĞƉĞŶĚĞŶĐĞĂŶĚŝŵƉĂƌƚŝĂůŝƚǇŽĨƚŚĞƐƐƵƌĂŶĐĞdĞĂŵ͘<ŝĐŬͲŽĨĨŵĞĞƚŝŶŐĂŶĚŝŶŝƚŝĂůĂŶĂůǇƐŝƐŽŶƚŚĞZĞƉŽƌƚĚƌĂĨƚ͘ǀĂůƵĂƚĞ ĚĂƚĂ ĂŶĚ ŝŶĨŽƌŵĂƚŝŽŶ ĂŐĂŝŶƐƚ ƚŚĞ ƐƚĂŶĚĂƌĚƐ͕ ƉƌŝŶĐŝƉůĞƐ͕ ĂŶĚŝŶĚŝĐĂƚŽƌƐ ŽĨ ϭϬϬϬ^ ǀϯ͕ ϭϬϬϬW^;ϮϬϭϴͿ͕'Z/^ƚĂŶĚĂƌĚ͕'Z/Ͳ'ϰDD͕^^͕d&͕ĂŶĚWK:<ϱϭ͘ϱ͘ ŝƐĐƵƐƐŽŶůŝŶĞƚŚĞƌĞƐƵůƚƐŽĨƚŚĞĂŶĂůǇƐŝƐǁŝƚŚƚŚĞDĂŶĂŐĞŵĞŶƚĂŶĚĚĂƚĂĐŽŶƚƌŝďƵƚŽƌƐ͘ϲ͘ /ŵƉůĞŵĞŶƚƚŚĞ^ZƐŝĂWƌŽƚŽĐŽůŽŶƐƐƵƌĂŶĐĞŶĂůǇƐŝƐĂŶĚƵƐĞ^ZƐŝĂ'ƌĞĂƚƐƐƵƌĂŶĐĞdŽŽůĚŝŐŝƚĂůƉůĂƚĨŽƌŵ͘ϳ͘ dŚĞƐƐƵƌĂŶĐĞdĞĂŵǀĞƌŝĨŝĞĚĞǀŝĚĞŶĐĞƚŽƚƌĂĐĞĚĂƚĂĂŶĚŝŶĨŽƌŵĂƚŝŽŶĂƐĐŽǀĞƌĞĚŝŶƚŚĞZĞƉŽƌƚ͘ϴ͘ dŚĞ ŽŵƉĂŶǇ ŝŶĐŽƌƉŽƌĂƚĞĚ ƚŚĞ ƐƵŐŐĞƐƚŝŽŶƐ ĂŶĚ ƌĞĐŽŵŵĞŶĚĂƚŝŽŶƐ ŝŶ ƚŚĞ ĚƌĂĨƚ ZĞƉŽƌƚ ĂŶĚ ƌĞůĞĂƐĞ ƚŚĞ ĨŝŶĂůZĞƉŽƌƚĐŽŶƚĞŶƚ͘ϵ͘ dŚĞ^ƚĂƚĞŵĞŶƚǁĂƐƉƌĞƉĂƌĞĚďǇƚŚĞƐƐƵƌĂŶĐĞdĞĂŵĂŶĚƌĞǀŝĞǁĞĚĂƐǁĞůůĂƐĂƉƉƌŽǀĞĚďǇƚŚĞ^ZƐŝĂŝƌĞĐƚŽƌďĞĨŽƌĞƐƵďŵŝƚƚŝŶŐŝƚƚŽƚŚĞŽŵƉĂŶǇ͘ϭϬ͘ dŚĞƐƐƵƌĂŶĐĞdĞĂŵƉƌĞƉĂƌĞĚĂDĂŶĂŐĞŵĞŶƚ>ĞƚƚĞƌĚĞƚĂŝŶŝŶŐĂůůĂƐƉĞĐƚƐƐĞĞŶ͕ƌĞĐŽƌĚĞĚ͕ĂŶĚŽďƐĞƌǀĞĚĚƵƌŝŶŐƚŚĞĂƐƐƵƌĂŶĐĞǁŽƌŬƚŽƚŚĞDĂŶĂŐĞŵĞŶƚŽĨƚŚĞŽŵƉĂŶǇĨŽƌĨƵƌƚŚĞƌŝŵƉƌŽǀĞŵĞŶƚŽĨƐƵƐƚĂŝŶĂďŝůŝƚǇƉƌŽĐĞƐƐĞƐ͘
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ĚŚĞƌĞŶĐĞƚŽϭϬϬϬW;ϮϬϭϴͿĂŶĚ'Z/^ƚĂŶĚĂƌĚƐ/ŶĐůƵƐŝǀŝƚǇ–dŚĞƐƐƵƌĂŶĐĞƚĞĂŵĐŽŶĐůƵĚĞĚƚŚĂƚƚŚĞƉƌĞƐĞŶƚĂƚŝŽŶŽĨŬĞǇƐƚĂŬĞŚŽůĚĞƌƐĂŶĚƐƚĂŬĞŚŽůĚĞƌĞŶŐĂŐĞŵĞŶƚŝƐ ŝŶĐůƵƐŝǀĞ͘ sĂƌŝŽƵƐ ƵŶŝƚƐ ĂŶĚ ĨƵŶĐƚŝŽŶƐ ŽĨ ƚŚĞ ŽŵƉĂŶǇ ŵĂŶĂŐĞĚ ŝƚƐ ƐƚĂŬĞŚŽůĚĞƌ ĞŶŐĂŐĞŵĞŶƚ ƉƌĂĐƚŝĐĞƐ ǁŝƚŚĚŝĨĨĞƌĞŶƚ ŵĞthods and approaches. The Report indicates the Company’s commitment to be ĂĐĐŽƵŶƚĂďůĞ ĨŽƌ ƚŚĞŝŵƉĂĐƚƐŽĨŝƚƐĚĞĐŝƐŝŽŶƐĂŶĚďƵƐŝŶĞƐƐŽƉĞƌĂƚŝŽŶƐ͘DĂƚĞƌŝĂůŝƚǇ–'ĞŶĞƌĂůůǇ͕ƚŚĞŵĂƚĞƌŝĂůƚŽƉŝĐƐƉƌĞƐĞŶƚĞĚĂŶĚĚŝƐĐƵƐƐĞĚŝŶƚŚĞZĞƉŽƌƚĂƌĞƐŝŐŶŝĨŝĐĂŶƚůǇƌĞůĞǀĂŶƚƚŽƚŚĞƐƵƐƚĂŝŶĂďŝůŝƚǇ ĐŽŶƚĞǆƚ ŽĨ ƚŚĞ ŽŵƉĂŶǇ͘ dŚĞ ŽŵƉĂŶǇ ŚĂƐ ĨĂŝƌůǇ ŝĚĞŶƚŝĨŝĞĚ ŵĂƚĞƌŝĂů ƚŽƉŝĐƐ ĨƌŽŵ ǀĂƌŝŽƵƐ ƌĞƐŽƵƌĐĞƐĐŽǀĞƌŝŶŐ ƚŚĞ ĞĐŽŶŽŵŝĐ͕ ƐŽĐŝĂů͕ ĂŶĚ ĞŶǀŝƌŽŶŵĞŶƚĂů ĂƐƉĞĐƚƐ͘ ,ŽǁĞǀĞƌ͕ ƚŚĞ ŽŵƉĂŶǇ ŝƐ ĞǆƉĞĐƚĞĚ ƚŽ ĐĂƌƌǇ ŽƵƚŵĂƚĞƌŝĂůŝƚǇƚĞƐƚŝŶŐĂƐƚŚĞďĂƐŝƐĂŶĚĞǀŝĚĞŶĐĞĨŽƌĚĞĨŝŶŝŶŐƚŚĞĐŽŶƚĞŶƚŽĨĨƵƚƵƌĞƐƵƐƚĂŝŶĂďŝůŝƚǇƌĞƉŽƌƚƐ͘ZĞƐƉŽŶƐŝǀĞŶĞƐƐ – dŚĞ ZĞƉŽƌƚŝŶŐ ŽƌŐĂŶŝǌĂƚŝŽŶ ŚĂƐ ŝŶĚŝĐĂƚĞĚ ƐƵĨĨŝĐŝĞŶƚ ƌĞƐƉŽŶƐĞƐ ƚŽ ŝƚƐ ƐƵƐƚĂŝŶĂďŝůŝƚǇ ĂƐƉĞĐƚƐ ĂŶĚƐƵƐƚĂŝŶĂďůĞ ĚĞǀĞůŽƉŵĞŶƚ͘ dŚĞ ŽŵƉĂŶǇ ĂůƌĞĂĚǇ ŚĂƐ Ă ǁŚŝƐƚůĞďůŽǁĞƌ ƉŽůŝĐǇ ƚŽ ĂĐĐŽŵŵŽĚĂƚĞ ĐŽŵƉůĂŝŶƚƐ ĂŶĚŐƌŝĞǀĂŶĐĞƐŽƌƌĞƉŽƌƚŝŶŐŽĨƵŶĞƚŚŝĐĂůĐŽŶĚƵĐƚ͘dŚĞƌĞƐƉŽŶƐŝǀĞŶĞƐƐƉƌŝŶĐŝƉůĞǁĂƐĂůƐŽĚĞƚĞƌŵŝŶĞĚŝŶƚŚĞZĞƉŽƌƚďǇĂŶĂƉƉůŝĞĚĐƵƐƚŽŵĞƌƐĂƚŝƐĨĂĐƚŝŽŶŝŶĚĞǆ;/<DͿƐƵƌǀĞǇ͘/ŵƉĂĐƚ – /Ŷ ƚŚĞ ZĞƉŽƌƚ͕ ƚŚĞ ŽŵƉĂŶǇ ĂĚĞƋƵĂƚĞůǇ ƉƌĞƐĞŶƚƐ ƚŚĞ /ŵƉĂĐƚƐ ŽĨ ŝƚƐ ĚĞĐŝƐŝŽŶƐ ĂŶĚ ĂĐƚŝǀŝƚŝĞƐ ŽŶ ƚŚĞĞĐŽŶŽŵǇ͕ ƐŽĐŝĂů͕ ĂŶĚ ĞŶǀŝƌŽŶŵĞŶƚ͘ dŚĞ ŝŵƉĂĐƚƐ ǁĞƌĞ ǁĞůů ƉƌĞƐĞŶƚĞĚ ŝŶ ƋƵĂŶƚŝƚĂƚŝǀĞ ĚĂƚĂ ĂŶĚ ƋƵĂůŝƚĂƚŝǀĞŝŶĨŽƌŵĂƚŝŽŶ. dŚĞ ŽŵƉĂŶǇ ŚĂƐĂůƐŽĂůůŽĐĂƚĞĚ ƐƵĨĨŝĐŝĞŶƚ ƌĞƐŽƵƌĐĞƐ ĂŶĚĐŽŵƉĞƚĞŶĐŝĞƐ ŝŶ ŵĂŶĂŐŝŶŐ ƚŚĞ ŝŵƉĂĐƚƐ ĂŶĚƉĞƌĨŽƌŵĞĚƐŽĐŝĂůŝŵƉĂĐƚĂƐƐĞƐƐŵĞŶƚƐ͘
Statement of Use: “Reference to the GRI Standards”–KƵƌĞǆƉĞƌƚƐĞǀĂůƵĂƚĞĚƚŚĞZĞƉŽƌƚĐŽŶƚĞŶƚĂĚŚĞƌĞƚŽƚŚĞ'Z/
hŶŝǀĞƌƐĂů^ƚĂŶĚĂƌĚƐƉƌŝŶĐŝƉůĞƐ͕ĚŝƐĐůŽƐƵƌĞƐ͕ĂŶĚƌĞƋƵŝƌĞŵĞŶƚƐĨŽƌƌĞƉŽƌƚŝŶŐ͘tĞďĞůŝĞǀĞƚŚĞZĞƉŽƌƚŚĂƐĨƵůĨŝůůĞĚƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐŽĨŝƚƐƐƚĂƚĞŵĞŶƚŽĨƵƐĞ͖ƉƵďůŝƐŚĂ'Z/ŽŶƚĞŶƚ/ŶĚĞǆ͕ƉƌŽǀŝĚĞĂƐƚĂƚĞŵĞŶƚŽĨƵƐĞ͕ĂŶĚŶŽƚŝĨǇ'Z/͘
'Z/ ^ƚĂŶĚĂƌĚƐ WƌŝŶĐŝƉůĞƐ – ƚ ƐŽŵĞ ĞǆƚĞŶƚ͕ ƚŚĞ ƌĞƐƵůƚƐ ŽĨ ĂƐƐƵƌĂŶĐĞ ǁŽƌŬ ŚĂǀĞ ƉƌĞƐĞŶƚĞĚ ƚŚĂƚ ƚŚĞ WƌŝŶĐŝƉůĞƐĨŽƌĞĨŝŶŝŶŐZĞƉŽƌƚŽŶƚĞŶƚ;ƐƚĂŬĞŚŽůĚĞƌŝŶĐůƵƐŝǀĞŶĞƐƐ͕ƐƵƐƚĂŝŶĂďŝůŝƚǇĐŽŶƚĞǆƚ͕ŵĂƚĞƌŝĂůŝƚǇ͕ĂŶĚĐŽŵƉůĞƚĞŶĞƐƐͿĂŶĚ
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65

Sustainability Report 2021dŽŝŵƉƌŽǀĞŵĂƚĞƌŝĂůŝƚǇŝĚĞŶƚŝĨŝĐĂƚŝŽŶďǇĐŽŶĚƵĐƚŝŶŐĂŵĂƚĞƌŝĂůŝƚǇƚĞƐƚĨŽůůŽǁŝŶŐƚŚĞŐůŽďĂůƐƚĂŶĚĂƌĚƐĂŶĚ ďĞƐƚƉƌĂĐƚŝĐĞƐŝŶĨƵƚƵƌĞƌĞƉŽƌƚŝŶŐ͘dŽďƵŝůĚĂŶŝŶƚĞŐƌĂƚĞĚŝŶĨŽƌŵĂƚŝŽŶŵĂŶĂŐĞŵĞŶƚƐǇƐƚĞŵĂĐƌŽƐƐĨƵŶĐƚŝŽŶƐ͕ĐŽǀĞƌŝŶŐƐƵƐƚĂŝŶĂďŝůŝƚǇƉĞƌĨŽƌŵĂŶĐĞĚĂƚĂĂŶĚŝŶĨŽƌŵĂƚŝŽŶ͘dŚĞĂƐƐƵƌĂŶĐĞƉƌŽǀŝĚĞƌ͕ƚŚ:ĂŬĂƌƚĂ͕Ϭϭ ŽĨƉƌŝůϮϬϮϮ

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^ZƐŝĂ/ŶĚĞƉĞŶĚĞŶƚƐƐƵƌĂŶĐĞ^ƚĂƚĞŵĞŶƚ͕ǀĞƌƐŝŽŶϮϬϮϮ͕ƉĂŐĞϰŽĨϰGRI Content Index, Reference of POJK, SASB, and TCFD

GRI
Content
Index

Other Source

Statement of use
PT Vale Indonesia
Tbk has reported theinformation citedin this GRI content
index for the period 1
January – 31 December
2021 with reference to
the GRI Standards.

GRI 2: General
Disclosures 2021

GRI 1 used : GRI 1:
Foundation 2021

Disclosure
2-1 Organizational details
2-2 Entities included in the organization’s sustainability reporting
2-3 Reporting period, frequency and contact point
2-4 Restatements of information
2-5 External assurance
2-6 Activities, value chain and other business relationships
2-7 Employees
2-8 Workers who are not employees
2-9 Governance structure and composition
2-10 Nomination and selection of the highest governance body
2-11 Chair of the highest governance body
2-12 Role of the highest governance body in overseeing the management of impacts
2-13 Delegation of responsibility for managing impacts
2-14 Role of the highest governance body in sustainability reporting
2-15 Conflicts of interest
2-16 Communication of critical concerns
2-17 Collective knowledge of the highest governance body
2-18 Evaluation of the performance of the highest governance body
2-19 Remuneration policies
2-20 Process to determine remuneration
2-21 Annual total compensation ratio
2-22 Statement on sustainable development strategy
2-23 Policy commitments
2-24 Embedding policy commitments
2-25 Processes to remediate negative impacts
2-26 Mechanisms for seeking advice and raising concerns
2-27 Compliance with laws and regulations
2-28 Membership associations
2-29 Approach to stakeholder engagement
2-30 Collective bargaining agreements

Location
11
16
16
4, 17, 28, 31-32, 35-36, 58, 60

1711-12, 15,61
13-14
15
53
53
54
10, 54
54
17
53
57
54
58
53
53
53
6
10
21
25
55
53
15
17
18

Material Topics
GRI 3: Material
Topics 2021

3-1 Process to determine material topics
3-2 List of material topics
Specific Disclosure

18, 1918, 19Material Topic: Economic Performance
GRI 3: Material Topics 2021 3-3 Management of material topics
201-1 Direct economic value generated and distributed
GRI 201:
201-2 Financial implications due to climate change
Economic
201-3 Defined benefit plan obligations and other retirement plans
Performance 2016
201-4 Financial assistance received from government
202-1
Ratios of standard entry level wage by gender compared to local minimum wage
GRI 202:
Market Presence
202-2 Proportion of senior management hired from the local community
205-1 Operations assessed for risks related to corruption
GRI 205:
205-2 Communication and training about anti-corruption policies and procedures
Anti-corruption 2016
205-3 Confirmed incidents of corruption and actions taken
Material Topic: Occupational Health and Safety
GRI 3: Material Topics 2021 3-3 Management of material topics
403-1 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

GRI 403: Occupational
Health and Safety 201866

Sustainability Report 2021

403-5 Worker training on occupational health and safety403-6 Promotion of worker health403-7 Prevention and mitigation of occupational health andsafety impacts directly linked by business relationships
403-8 Workers covered by an occupational health and safety management system403-9 Work-related injuries
403-10 Work-related ill health19, 57
58
59
59
58
59
13
56
56
56
19,39
39
40
40
40
40
41
41
39, 4240-44
40-44

Other Source

Disclosure

Material Topic: Diversity and Equal Opportunity
GRI 3: Material Topics 2021 3-3 Management of material topics
405-1 Diversity of governance bodies and employees
GRI 405:
Diversity and Equal
405-2 Ratio of basic salary and remuneration of women to men
Opportunity 2016
GRI 408: Child Labor
408-1 Operations and suppliers at significant risk for incidents of child labor
GRI 409: Forced or
409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor
Compulsory Labor
416-1 Assessment of the health and safety impacts of product and service categories
GRI 416: Customer
416-2 Incidents of non-compliance concerning the health
Health & Safety 2016
and safety impacts of products and service
417-1 Requirements for product and service information and labelling
GRI 417: Marketingand Labelling 2016417-2 Incidents of non-compliance concerning product and service information and labeling
GRI 406: Non406-1 Incidents of discrimination and corrective actions taken
discrimination 2016413-1 Operations with local community engagement, impact
GRI 413 : Local
assessments, and development programs
Community 2016413-2 Operations with significant actual and potential negative impacts on local communities
Material Topic: Energy
GRI 3: Material Topics 2021 3-3 Management of material topics
302-1 Energy consumption within the organization
302-2 Energy consumption outside of the organization
GRI 302:302-3 Energy intensity
Energy 2016
302-4 Reduction of energy consumption

GRI 303: Water andEffluents 2018

Location
19, 4845
47, 59
18
18
61
61
61
61
18
48-49, 51
48
19, 3131
31
32
32

302-5 Reductions in energy requirements of products and services

32

303-1 Interactions with water as a shared resource
303-2 Management of water discharge-related impacts
303-4 Water discharge
303-5 Water consumption

37
37
37
37

Material Topic: Emission
GRI 3: Material Topics 2021 3-3 Management of material topics
305-1 Direct (Scope 1) GHG emissions
305-2 Energy indirect (Scope 2) GHG emissions
305-3 Other indirect (Scope 3) GHG emissions
GRI 305:
305-4 GHG emission intensity
Emission 2016305-5 Reduction of GHG emissions
305-6 Emisi zat perusak ozon (ODS) 15 Emissions of ozone-depleting substances (ODS)
305-7 Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air emissions
306-1 Waste generation and significant waste-related impacts
306-2 Management of significant waste-related impacts
GRI 306: Waste 2020306-3 Waste generated
306-4 Waste diverted from disposal
306-5 Waste directed to disposal
GRI 308: Supplier
Environmental
308-1 New suppliers that were screened using environmental criteria
Assessment 2016

19, 26
28
28
28
28
28
30
30
35
35
35
35-36
36
61

Material Topic: Biodiversity
3-3 Management of material topics
304-1 Operational sites owned, leased, managed in, or adjacent to, protectedareas and areas of high biodiversity value outside protected areas
304-2 Significant impacts of activities, products, and services
GRI 3: Material Topics 2021 on biodiversity

19, 3333, 63
33

304-3 Habitats protected or restored

33-34

304-4 IUCN Red List species and national conservation list
species with habitats in areas affected by operations

35, 63

GRI Content Index, Reference of POJK, SASB, and TCFD

References of POJK No. 51/POJK/03/2017
GRI Mining & Metals Sector Specific Indicator Under G4 Aspect
Biodiversity
Amount of land (owned or leased, andMM1managed for production activities orextractive use) disturbed or rehabilitated
The number and percentage of totalsites identified as requiring biodiversity
MM2
management plans according to statedcriteria, and the number (percentage) of
those sites with plans in place
Effluents and Waste
Total amounts of overburden, rock, tailings,
MM3
and sludge and their associated risks
Labor/Management Relations
Number of strikes and lock-outs exceeding
MM4
one week’s duration, by country
Indigenous Rights
Total number of operations taking place in or
adjacent to indigenous people’s territories,
MM5
and number and percentage of operations
or sites where there are formal agreementswith indigenous people’s communities
Local Communities
Number and description of significant
disputes relating to land use, customary
MM6
rights of local communities and indigenous
peoples
The extent to which grievance mechanism
were used to resolve disputes relating to land
MM7use, customary rights of local communities
and indigenous peoples, and the outcomes
Artisanal and Small-scale Mining
Number (and percentage) of company
operating sites where artisanal and smallscale mining (ASM) takes place on, orMM8adjacent to, the site; the associated risk andthe actions taken to manage and mitigate
these risks
Resettlement
Sites where resettlements took place, thenumber of households resettled in each, andMM9
how their livelihoods were affected in theprocess
Closure Planning
Number and percentage of operations with
MM10
closure plans

67

Sustainability Report 2021

33, 6335

POJK No.51/POJK.03/2017
2

An overview of the sustainability performance aspect

3

Brief profile of the Company
10

3.b

Name, address, phone number, faximile numbers, electronic mailaddress (e-mail), website and branch office

10

3.c

Working scale
3.c.1

Assets total or asset capitalization and total responsibilities

15

3.c.2

The number of employees based on the gender, occupational level,
ages, educational background, and employment status

13

3.c.3

Percentage of Share ownership

10

3.c.4

Operational Area

11

3.d

Products, services, and business activities

11

3.e

Membership in Association

15

3.f

Changes in LJK, Emiten, and public company changes that are
significant

11

4

6.d

6.e

Page(s)6.c.3.b

The mechanism and number of public complaints received andacted upon

51, 546.c.3.cSocial and environmental responsibility on sustainable
development objectives includes the types and achievements ofcommunity empowerment program activities

Irrelevant

6.d.1

Environmental costs incurred

6.d.2

Use of environmentally friendly materials

6.d.3

Energy uses, at least contains:a) Total and intensity of energy usedb) Work and achievement to use energy efficiently, including
renewable energy resources

31-32

6.e.1

Performance as meant in letter d

31-33

6.e.2

Activities or operational areas that have an impact to thesurrounding environment

33

6.e.3.a

Impacts of operational areas that are near or in conservation area

33, 37

6.e.3.b

Efforts to conserve biodiversity

33, 35

6.e.4.a

Total and intensity of emission produced, based on its type28,30

6.e.4.b

Efforts and achievement to reduce emission

35

6.e.5.a

Wastes and effluent produced, based on its type

35-36

34
Irrelevant

6

4.bImplementation of sustainable financing

6

6.e.5.b

Mechanism of waste and effluent management

35

4.c

Business target

6

6.e.5.c

Spilling, if any

37

6.e.6

The number and topic of environmental complaints received andresolved

6.f.1

Innovation and development of sustainable products

61

6.f.2

Number and percentage of products and services that have been
evaluated for the customer's safety

61

6.f.3

Positive and negative impact of product and / or services anddistribution process

61

6.f.4

Number of products withdrawn and the reason

6.f.5

Survey of customer satisfaction

5

Sustainable Governance

5.b

5.c
6

53

Development of competency, delivered to Directors, Board ofCommissioners, employees, and working unit that responsible tosustainable financing.

54

Company procedures in controlling the risk of sustainability

57

Activities to build a sustainability culture in the internal
Public Company

10

6.b.1

Comparison between production target and performance,
portfolio, funding or investment target, revenue and profit/loss

59

6.b.2

Comparison between portfolio target and performance, funding
or investment target on financial instruments or projects in linewith the implementation of Sustainable Finance59

Commitment of financial service institution, emiten, or publiccompany to providing product and / or service equally tocustomers

47, 61

6.c.2.a

Equality of employment opportunities and the presence orabsence of forced labor and child labor18, 45

6.c.2.b

Percentage of permanent employee remuneration at the lowest
level against the regional minimum wage

47

6.c.2.cSafe and suitable working environment

39

6.c.2.dTraining and capacity building for employee

6.c.3.a

Information on activities or operational areas that give positive
and negative impacts to the surrounding community, including
financial literacy and inclusion

51
6.c

Directors, Board Member, officer, government representative
works to become responsible to manage sustainable financing.

6.fSustainable performance

6.a
6.b

34

6.c

Disclosure

Policies to responds to challenges in fulfilling the sustainablestrategy

5.a51

POJK No.51/POJK.03/2017

Directional explanation

4.a

51

4-5

Vision, Mission, and sustainability value

51

51

Page(s)

3.a

35

51

Disclosure

6.c.1

7

40, 47
48

Written Verification from independent parties (if any)

Irrelevant

Irrelevant
17

GRI Content Index, Reference of POJK, SASB, and TCFD

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

Disclosure

Greenhouse Gas Emissions
Discussion of long-term and short-term strategy or plan to manage Scope 1 emissions, emissions reduction targets,
EM-MM-110a.2
and an analysis of performance against those targets
Air Quality
Air emissions of the following pollutants: (1) CO, (2) NOx (excluding N2O), (3) SOx, (4) particulate matter (PM10), (5)EM-MM-120a.1
mercury (Hg), (6) lead (Pb), and (7) volatile organic compounds (VOCs)
Energy Management
EM-MM-130a.1(1) Total energy consumed, (2) percentage grid electricity, (3) percentage renewable

Water Management(1) Total fresh water withdrawn, (2) total fresh water consumed, percentage of each in regions with High or
EM-MM-140a.1
Extremely High Baseline Water Stress
EM-MM-140a.2 Number of incidents of non-compliance associated with water quality permits, standards, and regulations

Reference to Task Force on
Climate Related Financial
Disclosures (TCFD)
Page (s)

26

30

31

37
37

EM-MM-150a.4 Total weight of non-mineral waste generated

35

EM-MM-150a.5 Total weight of tailings produced

35

EM-MM-150a.6 Total weight of waste rock generated

35

EM-MM-150a.7 Total weight of hazardous waste generated

36

EM-MM-150a.8 Total weight of hazardous waste recycled

36

EM-MM-150a.9 Number of significant incidents associated with hazardous materials and waste management
Description of waste and hazardous materials management policies and procedures for active and inactive
EM-MM-150a.10
operations
Biodiversity Impacts
Percentage of mine sites where acid rock drainage is: (1) predicted to occur, (2) actively mitigated, and (3) under
EM-MM-160a.2
treatment or remediation
Percentage of (1) proved and (2) probable reserves in or near sites with protected conservation status or
EM-MM-160a.3
endangered species habitat
Community Relations

35

EM-MM-210a.1

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

33

EM-MM-210a.2 Percentage of (1) proved and (2) probable reserves in or near indigenous land

51

EM-MM-210b.2 Number and duration of non-technical delays

35

33
33

13, 37, 49
48, 51

Labor Relations
Percentage of active workforce covered under collective bargaining agreements, broken down by U.S. and foreign
employees
EM-MM-310a.2 Number and duration of strikes and lockouts
EM-MM-310a.1

68

18
51

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

42

EM-MM-510a.1

56

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

Sustainability Report 2021

Page (s)Strategy

Waste & Hazardous Materials Management

EM-MM-210b.1 Discussion of process to manage risks and opportunities associated with community rights and interests

Disclosurea. Description of the short, medium, and long-term
opportunities the organization has identified.

26

b. Description of the impact of climate-related risks andopportunities on the organization’s business, strategy, andfinancial planning26

c. Description of the organization’s strategy resiliency,
taking into account scenarios associated with climatechange, including 2 ° C or lower scenarios

26

Feedback Form

Feedback FormPT Vale Indonesia Tbk Sustainability Report 2021 provides an
overview of our sustainability performance. We look forward
to receiving any input from you regarding this Sustainability
Report by completing this form and sent by email.

1. This report is easy to understand.
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2. The report has described positive and negative
information of the Company.
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3. Material topic(s) which is(are) the most important to you:(score 1= most important, 10=least important)

Name:......................................................................................................
Profesion:

 Occupational Health and Safety Economic Performance......................................................................................................
Institution/Company:

 Emission
 Energy........................................................................................................

 Local Community Post-mining Rehabilitation

Stakeholder Group to which you belong : Diversity and Equal Opportunity

 Investor

 Government

 Waste Community Employee Business Ethics

 NGO

 Other, please state …………………..

 Water and Effluents

 Corporate

4. Kindly provide your inputs/suggestions/comments about
this report:……………………………………………………………………………………
……………………………………........................................................
……………………………………........................................................

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Thank you for your feedback.
Please send this feedback
form to the contact listed inthis this report by e-mail at
ptvicommunications@vale.com

PT Vale Indonesia Tbk
Sequis Tower, 20th Floor, Unit 6 & 7
Jl. Jend. Sudirman Kav. 71 Jakarta 12190, Indonesia
Phone: +62-21 5249000
Fax: +62-21 5249020
www.vale.com/indonesia

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Sustainability Report 2021