Climate Change Data

Vallourec

Climate Impact & Sustainability Data (2015-2016, 2022, 2023)

Reporting Period: 2015-2016

Environmental Metrics

Total Carbon Emissions:402,306.55 tCO2/year
Waste Generated:181,221 tons/year

ESG Focus Areas

  • Economic development
  • Local development of communities
  • Innovation, quality and processes
  • Health and occupational safety
  • Governance and Transparency
  • Attracting and retaining talent
  • Customer service
  • Environmental commitments

Environmental Achievements

  • Achieved a positive carbon balance, with green tubes sequestering more carbon than emitted.
  • Vallourec Mineração pioneered dry stacking for waste storage, replacing dams.

Social Achievements

  • Record number of training hours in 2016 (306,000), more than double 2014.
  • Social and cultural programs benefited over 250,000 people in 2016.

Governance Achievements

  • Merger of Barreiro and Jeceaba mills created Vallourec Soluções Tubulares do Brasil, optimizing production.
  • Implemented a Cultural Transformation Program to build a unified company culture.

Climate Goals & Targets

Environmental Challenges

  • Strong reduction in national GDP (7.3% in 2015-2016), impacting steel production.
  • Oil and gas market crisis, reducing demand for seamless steel tubes.
  • Drop in steel production to 10-year lows.
  • Global reduction in sales prices.
Mitigation Strategies
  • Implemented the Vallourec Transformation Program, including the merger of steel assets.
  • Focused on cost reduction and resource control.
  • Used temporary production stoppage (layoff) to retain employment and provide training.

Supply Chain Management

Supplier Audits: 450 contracts reviewed in 2015-2016; new methodology implemented in 2016 for contract assessment.

Responsible Procurement
  • Contract clauses requiring compliance with legal aspects of human rights and anti-corruption.
  • Supplier assessment before contracting.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Essential

Certifications: ISO 50001:2011, ISO 9001:2008, API Spec. Q1, ISO/TS 16949:2009, ISO 14001:1999, Cerflor (VFL), OHSAS 18001:2007, ISO IEC 17025:2005 (Test and Calibration Labs)

Sustainable Products & Innovation

  • VBRMo4 (corrosion-resistant tube for sugar and ethanol industry)

Reporting Period: 2022

Environmental Metrics

Renewable Energy Share:40%

ESG Focus Areas

  • Health and Safety
  • Environment
  • Social and Societal
  • Ethics and Compliance
  • Responsible Procurement

Environmental Achievements

  • 100% of sites certified to ISO 14001
  • 40% of energy consumed is from renewable sources
  • 53% of steel used is from recycled scrap iron
  • Waste recovery rate of 97.3%
  • 9% of water used in production is rainwater
  • Reduced water consumption in production
  • 1,600 replanted hectares returned to nature in Brazil
  • 176 animal species and 154 plant species identified in Brazil
  • Reduced emissions of pollutants in water

Social Achievements

  • Percentage of women in management positions: 24%
  • 78% collective bargaining agreements
  • “Social Barometer”: 77%
  • “Sustainability Journey”
  • €1.3m invested in societal projects, including 11% in education

Governance Achievements

  • Anti-Corruption Code of Conduct and Code of Ethics
  • Vallourec Integrity Line

Climate Goals & Targets

Supply Chain Management

Supplier Audits: 952 suppliers assessed for CSR: 71% of expenditure

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

  • 3.9
  • 8.5
  • 6.3
  • 6.4
  • 7.2
  • 9.4
  • 11.4
  • 12.2
  • 12.4
  • 12.5
  • 13.2
  • 13.3
  • 14.1
  • 15.1
  • 15.2
  • 15b
  • 4.4
  • 5.5
  • 8.6
  • 10.4
  • 8.7
  • 16.5
  • 16.6
  • 8.4
  • 12.6

The Group has strengthened its commitments on the UN Sustainable Development Goals for 2030, and aligned its targets to make an active contribution to work in this direction.

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:7,737,509 tCO2e/year (2023)
Scope 1 Emissions:925,000 tCO2e/year (2023)
Scope 2 Emissions:96,000 tCO2e/year (2023)
Scope 3 Emissions:6,717,000 tCO2e/year (2023)
Renewable Energy Share:38% (2023)
Total Energy Consumption:5,668 GWh/year (2023)
Water Consumption:9,800,000 m3/year (2023)
Waste Generated:15,930 tons/year (2023)
Carbon Intensity:1.62 tCO2e/metric ton of tubes shipped (2023)

ESG Focus Areas

  • Climate Change
  • Water Management
  • Waste Management
  • Biodiversity
  • Health and Safety
  • Diversity and Inclusion
  • Business Ethics and Compliance
  • Responsible Procurement
  • Human Rights

Environmental Achievements

  • Met 2025 CO2 reduction targets two years ahead of schedule.
  • Reduced CO2 footprint by 15% in 2023 compared to 2022.
  • Waste recovery rate of 97.6% in 2023.
  • 11% of water requirements for tube production supplied by rainwater.

Social Achievements

  • Nearly 50% of employees participated in the Vallourec Invest 2023 employee shareholding plan.
  • Great Place To Work certification for the US subsidiary, with a 62% response rate and 70% employee satisfaction.
  • 26% female executives in 2023.

Governance Achievements

  • Strengthened CSR governance with a CSR Committee comprising all Executive Committee members.
  • Variable compensation of executive corporate officers indexed to the achievement of CSR objectives.

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality by 2050.
Medium-term Goals:
  • Reduce CO2 intensity of products sold by 30% by 2030 (compared to 2021).
  • Reduce CO2 intensity of products sold by 35% by 2035 (compared to 2021).
Short-term Goals:
  • Reduce water consumption by 10% per metric ton processed by 2025 (compared to 2017).
  • Achieve 98% waste recovery rate by 2025.

Environmental Challenges

  • Supply chain disruptions due to climate events (Hurricane Ida, flooding at Pau Branco mine).
  • Rising energy costs.
  • Water scarcity risks.
  • Risks related to changes in regulations and standards (EU ETS, CBAM).
  • Stakeholder demands for improved environmental performance.
Mitigation Strategies
  • Developed alternative sourcing strategies.
  • Implemented energy efficiency programs.
  • Increased rainwater harvesting and water reuse rates.
  • Launched the Climate Challenge program (2022) with targets for 2030-2035-2050.
  • Integrated a carbon price into investment decision-making processes.
  • Updated climate-related risk assessments and adaptation plans.

Supply Chain Management

Supplier Audits: 1,009 suppliers assessed for CSR; 73% of expenditure (2023)

Responsible Procurement
  • Formal CSR assessments of key suppliers.
  • Prohibition of conflict minerals.

Climate-Related Risks & Opportunities

Physical Risks
  • Floods
  • Heat waves
  • Water stress
  • Hurricanes
  • Landslides
Transition Risks
  • Changes in regulations and standards
  • Carbon price increases
  • Shifting stakeholder expectations
Opportunities
  • Growth in New Energies markets (hydrogen, CCUS, geothermal).

Reporting Standards

Frameworks Used: GRI, TCFD, UN Global Compact, SBTi

Certifications: ISO 14001, ISO 45001, ISO 50001

Third-party Assurance: Independent third-party assurance provider (details in Appendix 2)

UN Sustainable Development Goals

  • 3
  • 6
  • 7
  • 8
  • 9
  • 12
  • 13
  • 16

Vallourec's initiatives contribute to these goals through various programs and actions related to climate change, water management, waste reduction, responsible procurement, health and safety, diversity and inclusion, and business ethics.

Sustainable Products & Innovation

  • Delphy vertical hydrogen storage solution
  • Carboval process for charcoal production
  • Thermocase® VIT (Vacuum Insulated Tubing)

Awards & Recognition

  • Great Place To Work certification
  • Ecovadis Platinum medal