GOVERNANCE AND SUSTAINABILITY SYSTEM - ESG CRITERIA
A Governance and Sustainability System based on ESG criteria
#corporate social responsibility #ESG
Iberdrola’s regulatory system is based on the three major pillars used by the worldwide investment community that measure the impact and sustainability of investments: environmental, social and governance aspects, known as ESG for short. By doing so, the company is at the cutting edge of international best practice.
By-laws are the core of our internal system of rules.
Purpose is the basis on which the Iberdrola’s Governance and Sustainability System is built.
Environment and climate action policies are Iberdrola’s response in fight against climate change and environment and biodiversity care.
Social commitment policies reflect the Company’s firm commitment to people and society.
The policies and rules of Corporate governance book incorporate the best practices in good governance.
The Governance and Sustainability Systemis divided in five books:
These are the core of the company's internal rules. The By-Laws [PDF] External link, opens in new window. govern the business contract that all shareholders accept when they acquire shares, as well as laying the foundations and guiding principles of Iberdrola's governance as the dominant company in a multinational energy corporation.
Iberdrola has set itself the purpose of continuing to build together each day a healthier, more accessible energy model, based on electricity. To fulfil that purpose, it is guided by three values: sustainable energy, integrating force and driving force.
The aim is to steer the company towards a culture based on ethics and on the commitment to sustainable development, as shared by every agent in the group's value chain.
Purpose and Values of the Iberdrola group
Its DNA, its raison d'être and its corporate ideology, underpinning the overall strategy and the management decisions made by each company in the group.
Code of Ethics
It develops and specifies the company's Purpose and Values and is intended to serve as a guide for the performance of managers, professionals and suppliers in a global, complex and changing environment.
General Sustainable Development Policy
It sets out the general principles that should govern the company's sustainable development strategy to ensure the creation of value in a sustainable manner.
Stakeholder Engagement Policy
Iberdrola encourages its Stakeholders to engage in its business enterprise through a strategy of close involvement in the communities where it operates and creating sustainable value for all of them.
Environment and Climate Action
This book gathers the Iberdrola policies that address environmental challenges such as climate change and waning biodiversity, as well as those that seek to pinpoint and leverage any opportunities arising from the energy transition and the ecological shift. These environmental policies, which are aligned with the goals of the Paris Agreement and the United Nations 2030 Agenda for Sustainable Development, are the following:
Sustainable Management Policy
Iberdrola strives to ensure that its development meets the needs of the present without compromising the ability of future generations to satisfy their own needs.
Aiming to instil in all Stakeholders linked to the company its determination to play a leading role in developing clean energy and caring for the environment.
Política de acción climática
Iberdrola se compromete a asumir una posición de liderazgo en la lucha contra el cambio climático y a promover una cultura social orientada a fomentar la sensibilización de todos sus Grupos de interés.
The company supports biodiversity in ecosystems by taking a proactive approach, beyond strategies to mitigate and contain damage, based on raising awareness.
Social policies reflect Iberdrola's support for human rights and shaping professional relations based on diversity, inclusion and a sense of belonging, where the key lies in promoting equal opportunities and ensuring discrimination-free people management. These policies are the following:
Policy on Respect for Human Rights
Respect for human rights is a cornerstone in Iberdrola's corporate social responsibility culture.
People Management Policy
Iberdrola defines, designs and disseminates resources and a human capital management model in order to attract, promote, generate the loyalty of and retain talent, as well as encourages personal and professional growth of the people belonging to the group.
Equality, Diversity and Inclusion Policy
The company has an unwavering commitment vis-à-vis its professionals to foster a respectful, diverse and inclusive working environment.
Selection and Hiring Policy
The group believes that a qualified, diverse and motivated team is crucial to achieve its strategic goals.
Knowledge Management Policy
The company shares ideas and know-how and promotes ongoing learning and cultural exchange.
Innovation is Iberdrola's main tool for ensuring sustainability, efficiency and competitiveness.
Efficiency, high standards and ongoing improvement show the group's will to be innovative.
Corporate Security Policy
Reflecting the company's commitment to security excellence for people, assets and critical infrastructure.
Policy on the Responsible Use of Artificial Intelligence Tools and Algorithms
Establishes the tools and guidelines to ensure responsible, transparent, safe and reliable use of artificial intelligence systems and algorithms by the Company.
Policies and standards concerning governance seek to ensure that Iberdrola's main corporate bodies and management run smoothly and that the overall business develops as it should, in compliance with current legislation. This book is divided into four sections:
Corporate Governance and Regulatory Compliance Policies
Within the global Iberdrola sustainable development strategy, these policies reflect the company's commitment vis-à-vis Stakeholders, especially shareholders, administrators, directors and professionals.
Its goal is to lay down the guiding principles and provide a general framework to control and manage all kinds of risks faced by the group.
Governance Rules of the Corporate Decision-Making Bodies and other Functions and Internal Committees
Establishing the standards on how Iberdrola's main corporate bodies are to operate.
Market Abuse Prevention Rules
Defining a sound and efficient system designed to ensure that all investors are on a level playing field.
FORWARD-LOOKING MODEL BASED ON ESG PRINCIPLES
Iberdrola group will continue to pursue its commitment towards the ESG principles, which are the basis for its business model. As a leader and pioneer in the energy transition, the company has become a driving force for social transformation and a benchmark in good governance and transparency.
This approach has enabled Iberdrola to keep on driving the reactivation of the green economy. The group invested a record €10.73 billion in 2022 and hired 4,700 workers in that period. Furthermore, its tax contributions in the fiscal year 2022 amounted to €7.458 billion around the world.
The group has launched the Energy to Thrive plan, which involves implementing over 350 measures to support its ESG approach. With this plan, Iberdrola will be reinforcing its leadership in the energy transition, promoting innovation and helping to create new quality employment, improving the quality of life throughout the population. The group will also continue to apply best practice in its governance, whilst working for a sustainable financial market.
With this in mind, the group intends to hire 20,000 new employees by 2025 and to purchase goods and services that will help to secure 500,000 jobs around the world during that time. There are also plans to maintain and even raise the number of training hours per employee, which is already four times the European average, and to carry on supporting gender equality, aiming to have 30 % women in management by 2025 and to narrow the gender pay gap to below 2 %.
Iberdrola, already an international benchmark in the fight against climate change, also confirms its determination to achieve worldwide carbon neutrality by 2050 and reduce CO2 emission intensity to 50 g/kWh by 2030. The group will also be helping to plant 20 million trees by 2030 to protect and restore biodiversity and ecosystems.
Iberdrola's ambition also extends to other fields such as investments in R&D, which will rise to €330 million per year in 2022 and €400 million in 2025, and cybersecurity, an area where work is expected to triple.