Jakarta. Nickel miner Vale Indonesia recently announced that it had scored 29.4 in Sustainalytics' latest environmental, social, and governance (ESG) risk rating.

Sustainalytics rates the sustainability of listed companies based on their ESG performance. Vale Indonesia’s recent scores officially placed the company in the medium ESG Risk category. This also became the lowest risk rating that an Indonesian nickel mining company had received so far. The recent ratings also marked a substantial improvement as Vale previously was classified as a company with high ESG risks.

Out of a total of 238 diversified metal companies globally rated by Sustainalytics, fewer than 20 percent achieve a medium, low, or negligible ESG risk rating. Vale was also the only Indonesian company to be classified in the group.

 “Our improved ESG rating is not just a reflection of our progress but also a commitment to the future. We are determined to drive down ESG risks even further and continue playing a pivotal role in Indonesia’s sustainable mining landscape,” Vale Indonesia’s chief sustainability and corporate affairs officer Bernadus Irmanto was quoted as saying in a press statement.

The mining industry has high exposure to ESG risks. A medium-risk rating by Sustainalytics shows a significant achievement for mining companies. The updated 29.4 score puts Vale ranked 27th out of 195 global companies in the diversified metals and mining category, placing it among the top-tier companies in managing risks related to ESG practices.

Vale attributed the medium-risk rating to its implementation of sustainable mining practices and implementation of ESG practices within the core structure of the organization. It adopts an environmental management system that is in line with international standards. The company also prioritizes safety and is proactively engaging with the community. It has come out with an ESG roadmap that will serve as a guideline for its future development.

The following are some of Vale’s key initiatives on sustainability:

1. Environmental Stewardship: Vale prioritizes progressive reclamation efforts and biodiversity conservation, focusing on minimizing land disturbance and ensuring that mined areas get restored to their natural state. The company uses hydropower as part of its commitment to emission reduction.

2. Social Responsibility: Vale has invested in local community programs that promote economic growth, education, and healthcare, ensuring that its operations contribute positively to the development of the regions where it operates.

3. Governance Practices: By strengthening its governance frameworks, Vale ensures compliance with global standards, enhancing transparency and accountability across all levels of the organization.

“We will continue to raise the bar on sustainability in Indonesia’s mining industry. This is not just about meeting expectations; it is about creating lasting positive impact for our environment, our people, and our country,” Bernadus said.