Title: The impacts of environmental disasters on share value and sustainability index: an analysis of Vale company facing Mariana and Brumadinho disasters - Brazil

Authors: Viviane Helena Torinelli; Antonio Francisco De Almeida Da Silva Junior; Andre Luis Rocha De Souza; Sonia Maria Da Silva Gomes; José Celio Silveira Andrade

Addresses: Department of Business Administration, Postgraduate Centre – NPGA UFBA, Research Group on Governance for Sustainability and Low Carbon Management – GpS, Federal University of Bahia – Universidade Federal da Bahia (UFBA), Av. Reitor Miguel Calmon, s/n – Vale do Canela, Salvador – BA – 40110-903, Brazil ' Department of Business Administration, Postgraduate Centre – NPGA UFBA, Research Group on Governance for Sustainability and Low Carbon Management – GpS, Federal University of Bahia – Universidade Federal da Bahia (UFBA), Av. Reitor Miguel Calmon, s/n – Vale do Canela, Salvador – BA – 40110-903, Brazil ' Department of Applied Social Sciences, Federal Institute of Bahia – IFBA, Brazil; Laboratory of Research in Finance, Asset Valuation and Sustainability – LABFINVAS of IFBA, Campus of Salvador, R. Emídio dos Santos, s/n. Barbalho, 40.301-155, Salvador, BA, Brazil ' Department of Accounting Sciences UFBA, Research Group on Governance for Sustainability and Low Carbon Management – GpS, Federal University of Bahia – Universidade Federal da Bahia (UFBA), Av. Reitor Miguel Calmon, s/n – Vale do Canela, Salvador – BA – 40110-903, Brazil ' Department of Business Administration, Postgraduate Centre – NPGA UFBA, Research Group on Governance for Sustainability and Low Carbon Management – GpS, Federal University of Bahia – Universidade Federal da Bahia (UFBA), Av. Reitor Miguel Calmon, s/n – Vale do Canela, Salvador – BA – 40110-903, Brazil

Abstract: Amid a ripening worldwide discussion on corporate sustainability and financial markets, this study evaluates how the collapses of the Mariana and Brumadinho dams in Brazil impacted Vale's share price, its financials and the related sustainability indices. The research methodology contemplates a historical analysis of these elements, as well as the commodity metals price and BHP's share values, for comparison purposes. The results show Vale's stock price recovering in the short-term after the disasters, despite operational failures in upstream tailings dams, contingencies and other impacts recognised in Vale's financial statements. Additionally, Vale's share negatively impacted the ISE following both events. Vale and BHP were also part of the DJSI and FTSE Indexes, respectively. This research contributes to the understanding of financial market behaviour in the face of major disasters and the respective impact on sustainability indexes. Hence, it is relevant to support the decision-making process of stakeholders.

Keywords: sustainable finance; green finance; Mariana; Brumadinho; Vale; Brazil.

DOI: 10.1504/LAJMSD.2020.105799

Latin American Journal of Management for Sustainable Development, 2020 Vol.5 No.1, pp.75 - 94

Received: 26 Jul 2019
Accepted: 27 Aug 2019

Published online: 05 Mar 2020 *

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