Water Stress and Water Management: Risk, Response, and Opportunity

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Water stress is a critical ESG issue in mining as well. Progress on this topic was made possible by proactive and systemic client management, which transformed data into strategic decisions in the face of the urgency of climate change. Risks were mapped in global operations, aligned with the goal of reducing freshwater use by 27% by 2030. The study developed by Tractebel enabled VALE to have a structured view of water risks in 30 assets across 7 countries.

Target to reduce freshwater use by 27% by 2030.

Methodology

The project was developed based on a standardized technical approach, applying international indicators to assess water stress. It began with the collection of hydrological, geographic, and sectoral data. The main metric for measuring water stress levels was the application of SDG Indicator 6.4.2, which transparently and reproducibly considers the proportion of freshwater demanded in relation to the total amount available. The study covered the period from 2014 to 2023 and considered the particularities of each region studied.

Application of SDG Indicator 6.4.2 for measuring water stress.

Results

The study allowed for the assessment of stress levels in each area analyzed, considering the total amount of freshwater withdrawn by the main user sectors, the volume of freshwater available for use, and the ecological flow of the basin (the amount of water vital for maintaining river ecosystems), with proposals to improve corporate water management. The consolidated results were presented in the VALE 2023–2024 Integrated Reports and were the subject of a technical publication presented at the XXV Brazilian Symposium on Water Resources.

Integrated analysis of all freshwater withdrawn and available for use.