The fourth China International Import Expo ("CIIE") was officially unveiled at the National Exhibition & Convention Center in Shanghai yersterday. As the only international mining company among all the exhibitors, Vale is proud to showcase to the public a set of decarbonization initiatives that contribute to China's carbon neutrality ambition at this year's CIIE, including a portfolio of high-quality products and innovative technological solutions.
On last year's CIIE, Vale reinforced its commitment to net zero emissions, announcing to reduce its Scope 1[1] and Scope 2[2] absolute emissions by 33% by 2030 and to achieve net zero emissions by 2050. This year, Vale brought a new and pioneering commitment to CIIE, which is to reduce its Scope 3[3] net emissions by 15% by 2035.
Our Scope 3 emission reduction target is fully in line with and can contribute to China's target of achieving carbon neutrality by 2060, considering that about 98% of our Scope 3 emissions are from downstream in our value chain. This has laid a solid foundation for our future cooperation.
Ms. Tracy Xie, President of Vale China
Vale is one of the few capable of offering Scope 3 emission reduction initiatives through a portfolio of high-quality products and innovative technological solutions. On this year's CIIE, apart from exhibiting its high-quality iron ore and base metal products, Vale will also showcase its innovative technological solutions that support the decarbonization of the steel industry, including briquetting, a breakthrough technology developed in-house and patented by Vale that is capable of reducing CO2 emissions in steelmaking by up to 10%. Other decarbonization solutions to be exhibited on the CIIE include dry concentration, Tecnored and biocarbon.
As pointed out by President Xi Jinping, we need to step up green international cooperation and share the fruits of green development among all countries. We are very encouraged by the speech. We have recently signed MoUs with leading Chinese steel mill Shagang Group to pursue opportunities to develop steelmaking solutions focused on reducing CO2 emissions. We hope to take the opportunity of the CIIE to increase the knowledge of our decarbonization initiatives among the Chinese stakeholders and to further expand our partnership with China in combating climate change. The key message that Vale wants to convey on this year's CIIE is to share high-quality development through partnership and contribute to a carbon-neutral future through innovation.
Ms. Tracy Xie
Another highlight of Vale's exhibits is a 1:250 ship model of the first ore carrier in the world equipped with rotor sails. Named MV Sea Zhoushan, the vessel is a Guaibamax with 325,000 tons of capacity. There are five sails installed along the vessel that will allow a gain in efficiency of up to 8% and a consequent reduction of up to 3,400 tons of CO2 equivalent per year. It is estimated that at least 40% of Vale's fleet will be able to use the rotor sails technology, which would result in a reduction of almost 1.5% of Vale's annual iron ore maritime transport emissions.
The installation of rotor sails is part of Vale's Ecoshipping Program which is in collaboration with various industry players to advance projects designed to cut down emissions from the maritime transportation of iron ore, and these emissions also belong to Vale's Scope 3 emissions.
MV Sea Zhoushan is another great example of the close partnership between Vale and China to achieve high-quality development. The vessel was designed by Shanghai Ship and Design Research Institute (SDARI), and SDARI was also responsible for the integration with rotor sails. The building of the vessel and the installation of the rotor sails were both completed by shipyards in China.
Ms. Tracy XieExperience biodiversity at the Vale booth
At the Vale booth, visitors could also have the opportunity to take virtual photos in the Vale-protected Amazon Forest or with a jaguar that lives in the Vale Carajás Zoo and Botanical Park. Vale helps protect approximately one million hectares of forest worldwide, including 800 thousand hectares in the Amazon where Vale has been performing biodiversity conservation actions for more than 30 years. Vale is committed to protect and recover another 500,000 hectares of forests by 2030.
Vale recognizes the importance of biodiversity and deems it a subject intrinsic to its business, considering its richness, breadth and value in maintaining life and ecosystem services. We are very proud that the PrevisIA platform created by Amazon Institute of Man and Environment in partnership with Vale Fund and Microsoft was recognized on the recent COP15 NGO Forum in September. We hope this interesting interaction could increase the awareness of the importance of biodiversity.
Tracy Xie
Vale's booth is located at B1-01, Trade in Services Area, 8.2H, National Exhibition and Convention Center (Shanghai). The booth strictly follows the Criteria for Green Booths set by CIIE, which minimizes the use of wood materials (less than 30% of the total volume of the construction materials) and will recycle 100% of the construction materials after the expo.
Vale and CIIE
Vale has taken an active part in CIIEs as an exhibitor for four consecutive years since the first CIIE was held in 2018. Vale is not the first but also by far the only international mining company among all the CIIE exhibitors. Vale received the Green Booth Award at the third CIIE. A total of 103 booths attended the Green Booth Awards selection during last year's CIIE and 9 of them were finally selected.
To fight climate change, Vale is committed to reduce its Scope 1 and Scope 2 absolute emissions by 33% by 2030 and to achieve net zero emissions by 2050. For this, the company will make investments of between $4 billion and $6 billion by 2030, prioritizing innovative technologies and world-class, high-quality iron ore, nickel and copper portfolios critical to the low-carbon transition. Vale is also committed to reduce its Scope 3 net emissions by 15% by 2035, being a pioneer in setting Scope 3 emission reduction target in the mining industry.
On October 5th, 2021, Vale was among the members of the International Council on Mining and Metals (ICMM) who have committed to a goal of net zero Scope 1 and 2 greenhouse gas (GHG) emissions by 2050 or sooner, in line with the ambitions of the Paris Agreement.
[1] Direct emissions from owned or controlled sources.
[2] Indirect emissions from the generation of purchased energy.
[3] Indirect emissions that occur in value chain, including emissions upstream and downstream.
VALE S.A. 
