Sustainability at Iberdrola

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, 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.