A cooperative culture of integrity and transparency
Ethics is at the core of Iberdrola's business model and its decision-making chain.
Iberdrola occupies a distinguished position in the main international indexes of sustainability.
One of the cornerstones for the success of Iberdrola's corporate project is the sustainable development of the communities in which we operate and the well-being of people. We contribute to this goal through our business activity and by fulfilling our social responsibility.
We currently top the major international sustainability indices thanks to value creation, compliance with our Stakeholder commitments, reporting transparency, and our contribution to the UN Sustainable Development Goals, which we have incorporated into our business strategy, our Corporate Governance System and our sustainable development policy.
We work hard to establish strong, permanent ties, considering the interests of our team, shareholders and the financial community, regulatory authorities, customers, suppliers, the media, society at large and the environment.
Ethics is at the core of our business model and decision-making chain. In an increasingly global, complex and changing environment, the Iberdrola group believes that it is essential to hold firmly to the principles and values set out in the Code of Ethics, developing and maintaining a corporate culture based on integrity and transparency.
THE IBERDROLA GROUP'S COMMITMENTS
Code of ethics
The Code of ethics [PDF] is a key element in the integrity of our businesses and represents who we are, and how we act as a company. All the group's employees, regardless of their position in the organisation and the place they carry out their activities, should be aware of the mission, vision and the values contained in the Code, and should consult them and use them as guidelines and models of behaviour in their daily activities.
This internal and permanent collegiate body associated to the Corporate Social Responsibility Committee of the Board of Directors ensures the application of the Code of ethics [PDF] and compliance with the applicable regulations, while disseminating a preventive culture based on the principle of "zero tolerance" of any illegal or fraudulent acts. See Regulations of the Compliance Unit [PDF].
The Compliance System aims to promote legal and ethical conduct in the organization through a set of procedures and actions designed to prevent, detect and react to improper conduct, fraud or acts contrary to the Iberdrola group's Code of Ethics [PDF] or to current regulations. It represents Iberdrola's pledge to its employees, customers, suppliers, competitors, shareholders and all its stakeholders that it will conduct its activities in accordance with current regulations and to the highest ethical standards and values.
With the objective of extending best practices in the prevention of fraud and corruption, Iberdrola has signed an agreement with the Spanish Compliance Association (Asociación Española de Compliance — ASCOM —) whereby both organisations will implement the 1st Program for the development of compliance systems. The six-month program, free of charge for participants and managed by qualified experts, will enable companies and public organisations to lay the foundations for implementing their own compliance systems, encouraging external certification according to the UNE-19601 standard. Iberdrola and ASCOM will drive this initiative in the conviction that developing compliance practices has become an almost essential requisite in the business world and, therefore, a factor in competitiveness.
An example of the company's commitment to the best international practices in the fight against corruption is AENOR's certification of Iberdrola: certification in the UNE-ISO 37001 Standard, which certifies that the company has implemented an effective anti-bribery management system, becoming the first Spanish company to receive this certification.
Furthermore, AENOR has awarded Iberdrola the certificate for the UNE 19601 standard, which verifies that the company has an effective criminal compliance management system. Iberdrola, thus, becomes one of the first IBEX 35-listed companies to receive this certificate, within the framework of its commitment to transparency and good corporate governance. This standard is the national standard for best practices to prevent crime, reduce risk, and promote an ethical business culture and compliance with the law.
CSR management model
Iberdrola's progress in the area of social responsability is due to the application of a traditional management model characterised by:
- An internal analysis of the company's current position and the various aspects of corporate social responsibility (CSR).
- An external analysis of Iberdrola's social demands, stakeholder expectations and scores in external ratings and observatories.
- A diagnosis of the situation derived from the previous analyses.
- New corporate goals to improve the company's performance.
- Design of action plans with detailed targets, actions and programs.
- Monitoring of compliance with these plans and feedback for a new planning cycle.
Sustainable Development Plan
Every two years, Iberdrola produces a Sustainable Development Plan covering the most important projects and activities that the company is undertaking in this field, all in keeping with Iberdrola's commitment to the SDGs. The 2018-2019 Sustainable Development Plan “Responsible Energy for the People” is centred around 7 priorities, with multiple lines of work including specific tasks (over 300) and measurable targets in line with international sustainability standards. At the close of 2019, Iberdrola has completed almost all the tasks integrated in this plan, which focuses primarily on the fight against climate change and improving people's quality of life and the well-being of society.
- Corporate Social Responsibility Committee: Constituted on 19 October 2010, the Sustainable Development Committee is an internal informative and consulting body set up by Board of Directors, with no executive functions, but whose faculties include reviewing and updating the corporate governance system and supervising the policies of corporate social responsibility, sustainability and reputation, in the terms established in its regulations, which are available in the section on corporate governance on the website.
- Iberdrola's Corporate Social Responsibility and Reputation Committee: It meets regularly to manage both reputational aspects linked to the perception of the company by stakeholders and aspects of social responsibility, and identifies and implements the most appropriate actions.
- The Group's CSR and Reputation committees
- The Generation and Retail Business has created the "CSR Global Practice group".
- The Group's Renewable Energy Business has created the "Reputation and Social Responsibility Committee".
- The "CSR Steering Committee" operates in ScottishPower.
- Iberdrola Ingeniería y Construcción has created the "Corporate Social Responsibility Committee".
Iberdrola aims to achieve the competitiveness of the energy products it supplies through efficiency in the processes of energy generation, transport and distribution. This priority allows them to offer products at the best possible price, and to use technologies with low operating and maintenance costs and a diversified mix of the most competitive energy sources based on the climatological and market conditions.
Iberdrola's strategy focuses on guaranteeing the security of the supply of energy products using locally produced sources of primary energy and renewable energy resources, and ensuring the reliability and availability of the facilities for generation, transport and distribution. The group also works to maintain a high quality of service to guarantee the availability of energy to customers. It therefore has a robust transport and distribution network in the case of extraordinary events, and all the necessary resources to re-establish service in the shortest possible time.
The environmental dimension is at the core of Iberdrola's sustainability concept. The development of clean energy, investment in smart grids and other energy efficient technologies, and respect for the environment are the cornerstones of the group's energy production model, and set Iberdrola apart as one of the leading companies in the energy sector worldwide.
Iberdrola promotes innovation, ecoefficiency and the progressive reduction of environmental impacts in the group's activities to transform energy into a sustainable driving force for the economy and an ally in the quest for balanced development.
The fight against climate change
Iberdrola's commitment to fighting climate change aims to actively contribute to a low-carbon sustainable future and drive social and economic development through the creation of jobs and wealth. Iberdrola has set itself the environmental target of be carbon neutral in Europe by 2030 - its CO2/kWh emissions are already two thirds lower than the European average - and to reduce its global CO2 emissions by 86%, to 50g/kWh (70g/kWh by the end of 2025).
Throughout their respective life cycles, the group's businesses produce interactions with various ecosystems, landscapes and species. Iberdrola is therefore committed to encouraging ecosystem biodiversity by establishing new and sustainable projects in a way that fosters harmonious coexistence and conserves, protects and promotes the development and growth of the natural heritage. It also seeks to implant a social culture that heightens awareness among all its stakeholders of the need to protect biodiversity.
Rational water use
Water is a necessary resource for the group to carry out its activities. In keeping with its principle of reducing its environmental impact, the group makes every effort to use water rationally and sustainably and manage the risks related with its scarcity.
The optimisation of energy use in the group depends on efficiency in the whole energy chain. The group therefore considers energy efficiency from a threefold perspective: as an electricity company, as an electricity supply company, and as an energy consuming company. As a whole, the group encourages the responsible use of energy and supports measures for energy savings and efficiency.
Iberdrola has a substantial economic impact on the areas in which it operates, as a company that drives industrial activity through its investments and the creation of jobs. It generates service activity in these areas and provides economic resources for local governments.
To ensure these activities are sustainable over time, the group's economic management rests on three pillars:
- The optimisation of its investment capability.
- The efficient operational management of the group's assets.
- The maintenance of a financial structure that contributes to the group's economic robustness and ensures the achievement of its goals.
The group deploys the best systems of corporate governance within its reach, including codes of conduct and compliance and risk management, to ensure information transparency and preserve value creation for the shareholders.
Labour practices and work ethics
The management of human rights in Iberdrola is governed by the principles of respect for diversity, equal opportunities and non-discrimination. The Code of Ethics [PDF] sets forth the action principles required from the various companies in the group and from all its employees and managers. The company promotes ethical and responsible behaviour throughout the whole value chain.
The Iberdrola group guarantees and promotes protection and respect for human rights though a series of tools that also discourage or prevent their violation. The company's practices are aligned with the principles of the United Nations Global Compact and the guiding principles on companies and human rights: the practical application of the framework of the United Nations to "protect, respect and remedy", the OECD guidelines for multinational corporations, the Tripartite Declaration of Principles concerning Multinational Enterprises and social policy, and the social policy of the International Labour Organisation.
Iberdrola pursues a strategy of close engagement with the communities in which it operates, based on the supply of an essential product such as energy; major investments in basic infrastructures; the promotion of local supplier networks, and the creation of skilled jobs. It also promotes programmes aimed at socio-economic development, energy sustainability, art, culture, education, training, cooperation for development, and solidarity.
Iberdrola makes every effort to guarantee the security in the supply of energy products and the high quality of its service, and to promote the use of locally produced sources of primary energy and renewable energy resources and responsible energy consumption, supporting measures for energy savings and efficiency.
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