Renova Foundation - ESG
Renova Foundation
The Renova Foundation was founded in 2016 to repair and compensate for the damages caused by the breach of the Fundão Dam, which occurred on November 5, 2015. It was created as a result of a legal commitment called the Transaction Term and Conduct Adjustment (TTAC), which was signed by Samarco, its shareholders, Vale and BHP Billiton, the Federal Union, the States of Minas Gerais and Espírito Santo, and various public authorities at the federal and state levels.
The TTAC established 42 programs aimed at socio-environmental and socio-economic remediation of the affected territories in 40 municipalities along a stretch of approximately 650 km. The Renova Foundation has been implementing remediation programs and respecting the governance system established in the TTAC and the Conduct Adjustment Term (TAC Governance) signed in 2018. Among the TTAC signatories were the Federal Public Prosecution Service, the State Public Prosecution Service Minas Gerais and Espírito Santo, the Public Defender's Office of the Union and the Public Defender's Office of the States of Minas Gerais and Espirito Santo. Its owners are Samarco, BHP Billiton and Vale.
Through the 42 programs designated by the TTAC, the Foundation works to ensure access to information, promote open and constant dialogue with its stakeholders, and encourage social participation and engagement of populations affected by the dam rupture.
Dialogue with affected communities guides Renova's actions as it seeks to remedy and compensate for the damage caused in an efficient and transparent manner. Recovering the water basin, resettling residents and compensating the families who suffered direct losses due to the incident are the Foundation’s priorities.
In its pursuit of excellence, the Renova Foundation has engaged 7,000 people (including its employees and partners) from technical and specialized areas with various areas of knowledge; dozens of social and environmental entities from Brazil that have scientific knowledge, such as the federal universities in Espírito Santo and Minas Gerais; and the international scientific institutions working on the repair process of Mariana (Minas Gerais) at the mouth of the Doce River.
Impact Management
Impact management actions, implemented through the socio-environmental and socio-economical programs indicated in the TTAC, were divided into two main fronts:
Repair, aimed at reversing or mitigating the impacts caused by the disruption. This includes tailings management, village reconstruction and compensation.
Compensation to society for the general damage caused to people's lives. This includes action such as forest restoration, spring restoration and sanitation for municipalities along the Doce River are some examples.
The efforts for repair and compensation were divided into three thematic axes:
- Identification and compensation
- Education and culture
- Health and well-being
- Traditional and Indigenous communities
- Engagement and dialogue
- Fostering the economy
- Land use
- Water management
- Tailings management
- Biodiversity
- Animal care
- Innovation
- Forest restoration
- Resettlement
- Tailings containment
- Water and effluent treatment
- Urban infrastructure and access
Performance Evolution
Since the Foundation’s creation in November 2015, Vale and BHP have been financing the Renova Foundation and providing funds directly to Samarco in order to preserve its operations. Approximately R$ 11.3 billion were invested by Vale, BHP and Samarco in reparation and compensation initiatives for the affected parties, totaling more than 324,000 people. In 2020, R$ 3.5 billion was driven to the programs. For 2021, the budget of the Renova Foundation is R$ 5.9 billion.
Disbursement and Budget
Renova Foundation disbursement (R$ billion)
KPI’s report
Significant progress had been made on the three axes defined in the TTAC:
- Approximately R$ 3.95 billion in compensation and emergency financial aid
- 320,000 people benefited from indemnification and financial aid for damages
- After implementing of the Simplified Indemnity System approved by a Brazilian Federal Court in August 2020, over 11,700 people and R$ 1 billion were paid in 22 locations covered by joined the new System
- 57% of contracts are with local suppliers
- About 113 tributaries have already been recovered;
- 5,000 springs are recovering;
- There are currently 92 monitoring points along the impacted watercourses;
- 40,000 hectares will be reforested
- In the Gualaxo do Norte river, a pilot project for the Natural Treatment Stations was implemented, which uses filtering barriers and vegetation islands in the river channel to filter water and absorb metals
- Tailings’ removal, up to date, occurred in two locations: Barra Longa (MG State) and Cachoeira de Camargos, in the Mariana district (MG State)
- 1.5 million data generated by the monitoring program per year and, Doce River water can be consumed after being treated
- More than 1,600 construction projects have been completed and delivered to the community
- 500 families actively participated in the resettlement process
- In Bento Rodrigues, 8 houses completed and 71 are under construction
- In Paracatu de Baixo, 6 houses have started work, with the foundation assembly stage completed
- 13 water treatment plants and 10 water pipelines were built or renovated.
Overall timeline
After project approval, house delivery takes approximately 12 months:
Indemnification status
Emergency financial aid¹
|
Mariana
|
|
|
|
|---|---|---|---|
|
#Main beneficiary
|
#Relatives
|
|
Amount
|
|
574
|
712
|
|
R$ 57 MM
|
|
Total
|
|
|
|
|---|---|---|---|
|
#Main beneficiary
|
#Relatives
|
|
Amount
|
|
14,754
|
18,133
|
|
R$1,44 Bn
|
| Mariana | ||
|---|---|---|
| #Main beneficiary |
#Relatives
712
#Amount
R$ 57 MM
| Total | ||
|---|---|---|
| #Main beneficiary |
|---|
#Relatives
18,133
#Amount
R$ 1,44 Bn
Indemnizations¹
|
Mariana
|
|
|
|
|---|---|---|---|
|
#Families
|
|
|
Amount
|
|
390
|
|
|
R$ 166 MM
|
|
Water damage |
|
|
|
|
|---|---|---|---|---|
|
#People
|
|
|
Amount
|
|
|
270,312
|
|
|
R$ 283 MM
|
|
|
|
|
|
|---|---|---|---|---|
|
|
|
Amount
|
|
|
10,201
|
|
|
R$ 920 MM
|
| Mariana |
|
|---|---|
#Families |
| Water damage | |
|---|---|
|
|
| General damage |
|
|---|---|
#Families |
|
#Amount |
Novel System
Registered Requirements
Validated Requirements
Payments