Sustainability at Iberdrola

Promoting responsible management

The key to our long-term value creation strategy is the combination of financial and social dividends, aimed at meeting the expectations of all our stakeholders and integrating sustainability into the company's strategy and management.

What is sustainability?

Sustainability is defined as a strategy that ‘meets the needs of the present without compromising the ability of future generations to meet their own needs’. Therefore, sustainable development requires a holistic approach that takes into consideration social and environmental concerns alongside economic development. In simpler terms, sustainability is about our children and grandchildren, and the world we will leave them.

The practice of sustainability recognises the interconnectedness of environmental, social and economic aspects and therefore requires a systemic approach and a recognition of complexity. Sustainability assumes that resources are finite and must be used conservatively and wisely to ensure their  availability long-term.

What are the characteristics of sustainable activities?

In general terms, the sustainability of an activity is measured by its environmental, social and governance performance. A company that does business with this perspective in mind, aligning itself with these principles, is aware that its activities can have an impact on the planet.

The origin of sustainability as a concept dates back to the 1990s as a response to a growing concern among investors about how corporate activity could impact society and the environment. A major step towards corporate responsibility came in 1999 with the publication of the first global index governed by sustainability criteria, the Dow Jones Sustainability Index. 

However, the real transformation came with the launch of the Principles for Responsible Investment External link, opens in new window.  (PRI) published in 2006. Born under the aegis of the United Nations, the ESG concept emerged. These criteria evolve from the concept of Socially Responsible Investment (SRI) but go further with a global approach in all processes transcending the business. 

When companies develop their sustainability practices within the framework of the 2030 Agenda and the Sustainable Development Goals (SDGs) that they are driving the sustainability of their operations. Their relevance is increasing due to the growing global commitment to the planet and society, and getting it right when identifying, managing and measuring impacts, both positive and negative, on the environment and society. Robust sustainability performance has consequences for the company's ability to receive investment, leverage on its reputation and maintain the sustainability of the business.

The European Union has developed a specific definition for environmentally sustainable activities, and a tool to apply it: the European taxonomy for sustainable activities. According to this methodology, an activity is sustainable when it contributes substantially to one of the six EU environmental objectives, without causing harm to the others and ensuring minimum social safeguards.

Sustainability integrated into Iberdrola's business model and strategy for more than 20 years and has become a cornerstone of our growth. Our leadership in sustainable financing (+F) enables us to articulate these commitments.

We promote the sustainability of our business

The key to the long-term value creation strategy is the combination of financial and social dividends, aimed at meeting the expectations of its stakeholders and by developing sustainable management. 

A business model that accelerates value creation for everyone

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Full commitment to financial strength and dividends

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Growth in Grids

Renewables: selective investment in manageable technologies and storage

High-rated countries

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Sustainability: Creating value for all

Maintaining our proven business model

The real and effective implementation of the sustainable development strategy, together with the Governance and Sustainability System, is set to be one of the keys that differentiates us from our competitors, sharing our achievements with our stakeholders. This commitment is materialised in our investment in sustainable strategic and management approaches, which are integrated into Iberdrola's day-to-day activities and are put into practice in the following areas: 

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Environmental

Decades ago, we made a firm commitment to develop a sustainable energy model. . A model based on the electrification of the economy through the use of renewable energies, smart grids, efficient energy storage, and the promotion of the electrification of demand as an energy vector for competitive and efficient decarbonisation. To ensure that the group's activities are carried out in harmony with nature, we work on three fronts that constitute our vision of "Iberdrola: Positive towards Nature": the fight against climate change, the conservation of biodiversity, and the circularity of resources.

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Social

We focus on the creation of shared value for all stakeholders and respect for human rights in the execution of all our operations and those of our value chain. We contribute to the creation and maintenance of quality jobs, focusing on job security and improving our employees’ skills. We work to continuously improve the quality of the products and services we offer our customers, developing solutions that take into account their real needs and provide them with ever greater autonomy. Finally, we collaborate with the development of the communities where we operate through our companies and foundations in the different countries.

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Corporate governance

Our Governance and Sustainability System is one of our hallmarks and is the cornerstone of our commitment to sustainability. Starting with the composition and structure of the governing bodies, in line with best practices, the entire system is built on a commitment to maintaining a culture based on ethics, transparency, good governance, regulatory compliance, robustness, coordination and accountability at all levels.

A commitment to sustainability along the chain value

How can we make sustainable and responsible investments?

Corporate Social Responsibility (CSR) is a priority for companies that are truly committed to the communities where they operate. In this regard, sustainable management approaches cover considerations related to the environment, society and corporate governance, and are key to making more responsible investments for the planet.

Discover the ESG criteria

Promoting sustainability among our suppliers

We have extended our commitment to sustainability to our more than 20,000 suppliers worldwide. To do so end, we have designed a model to evaluate the performance of each supplier along three axes: environmental, social, and governance. 

Get to know our sustainable value chain

Our performance in Sustainability

The following metrics are a sample of Iberdrola's successful performance in sustainability.

Main reports on sustainability issues published during the period

Integrating sustainability goals into business strategy

Over the last two decades, sustainability has formed an integral part of Iberdrola's strategy, consolidating us today as leaders in sustainability, thanks to outstanding performance in environmental, social, governance, and also economic and financial areas.

Priorities in sustainability issues are regularly updated to respond to to our stakeholders’ expectations and ensure alignment with the group's strategy.

The latest update of our sustainability goals took place by March 2024 to maintain our path of increasing ambition regarding the energy transition and to our commitment to creating shared value.

This roadmap is structured around five pillars that demonstrate the real and effective integration of sustainability into the strategy:

Promote electricity as a clean, independent, local, stable, secure and competitive source of energy

Work to ensure a sustainable value chain

Protect nature and promote resource efficiency

Foster human and social capital

Maintain our culture of ethics, transparency and good governance