⁍ Many Brazilian investors were ready to forgive the company within months of a deadly dam disaster in 2019.

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⁍ But not everyone was as willing to continue as if nothing had happened.

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⁍ The company’s second lethal dam disaster in three years was a formative moment for ethical investment in Brazil.

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– When a dam burst at Vale, Brazil’s largest iron ore producer, in January, it killed more than 270 people and set off a wave of criticism about the company and the mining industry in general. Now, the Wall Street Journal reports, Vale is facing a wave of criticism of its own from investors who say the company hasn’t done enough to address the environmental, social, and governance (ESG) issues surrounding its operations. The paper notes that Vale’s shares have lost more than 30% since the disaster, and that the company has the lowest valuation among the top global miners, based on its enterprise value to earnings before interest, tax, depreciation, and amortization. In a written response to Reuters, Vale says it has taken steps to address the ESG concerns, including adopting safer mining practices and setting aside $18.6 billion for victims of the Brumadinho disaster. “Safety has become an obsession, and the company believes that the integration of ESG in our routine will be essential for Vale’s de-risking,” it says. But some investors say Vale’s low valuation is a reflection of continued doubts about its ability to meet ESG targets without compromising production. “The disaster was game-changing in Brazil,” a stock manager at JGP asset management tells Reuters. “We realized we were overlooking the risks associated with mining, the climate issue, and we decided to take it seriously.”