Ethics and compliance
Committed to the highest ethical standards
At Iberdrola we are permanently working to be at the forefront of international best practices in ethics and compliance.
Iberdrola Group has a compliance system in place to ensure that we act in accordance with the ethical principles and fundamental principles of governance and sustainability of the Iberdrola Group, the law, and our internal regulations − especially the Governance and Sustainability System. This system helps to fully comply with the Group's Purpose and Values and to protect the corporate interest, as well as to prevent, manage, and reduce the risk of breaches committed by managers, professionals, or suppliers within the organisation.
"Our Code of Conduct develops Iberdrola's Purpose and Values and specifies the Group's commitment to ethics and transparency in all areas. Following its guidelines is the best way to promote integrity, loyalty, honesty, and alignment with the Group's values on the part of everyone."
Ignacio S. Galán
Iberdrola’s Executive Chairman
The Code of Conduct for Directors, Professionals and Suppliers and other compliance regulations
The Code of Conduct for Directors, Professionals and Suppliers [PDF] develops Iberdrola Group's Purpose and Values. Its main objective is to serve as a guide for the actions of its professionals, suppliers and directors in a global, complex and changing environment.
This code reflects Iberdrola's commitment to the business ethics and transparency in all areas of activity. This code is intended to ensure the ethical and responsible conduct of all professionals and suppliers of Iberdrola's companies − regardless of their hierarchical level, their geographic or functional location − and the company to which they provide their services or with which they have a contractual relationship.
The Group companies' compliance system is based on certain rules approved by the Board of Directors, which are part of the Governance and Sustainability System, including the Ethical and Basic Principles of Governance and Sustainability of the Iberdrola Group [PDF], the Code of Conduct for Directors, Professionals and Suppliers [PDF], Anti-Corruption and Anti-Fraud Policy, the Compliance Policy and the Internal Reporting and Whistleblower Protection System [PDF]. Furthermore, the compliance units of each company of the Group develops and approves complementary and more specific regulations to proactively and autonomously ensure the implementation and effectiveness of the Compliance System of each Group company.
Code of Conduct for Directors, Professionals and Suppliers
Risk assessment
Policies and procedures
Communication
Training
Monitoring
Reaction
Code of Ethics*
Code of Conduct for Directors, Professionals and Suppliers* of Conduct for Directors, Professionals and Suppliers
1 Risk assessment
One of the main parts of the Compliance System is the existence of a process of regular and continuous identification and assessment of compliance risks in each of the corporate functions and in the group's businesses, including the risks of committing crime or irregular conduct associated with the activities carried out by the organisation. The assessment includes the evaluation of the likelihood of the materialisation of each risk and the impact that such materialisation would have, as well as the effectiveness of the controls aimed at mitigating them.
2 Policies and procedures
The organisation has the necessary internal regulations and controls in place to prevent and mitigate the risks identified, as well as providing professionals with guidelines for appropriate and expected conduct.
The compliance systems of the companies of the Group are structured on the basis of: (i) regulations approved by the Board of Directors of Iberdrola, S.A. (as an integral part of its Governance and Sustainability System); (ii) regulations approved by its own management body; and (iii) supplementary regulations developed and approved by each compliance unit through the powers given to it by its respective Regulations.
The regulations are updated periodically and are monitored by the compliance units to assess their preventive potential.
3 Communication
Dissemination and communication of ethical principles is another essential element of the Compliance System. The main objectives, as established in the Global Communication Plan, are as follows:
- Ensure that professionals perceive the value that the compliance actions represent for them on a personal level.
- Raise awareness among professionals of the most relevant risks associated with their professional activity and the regulations or recommendations to minimise them.
- Promote the participation of professionals in the Compliance activities that require it.
- Encourage the participation of executives and middle management in transmitting the compliance culture to their teams.
For communication, the different tools and channels available are used, selecting the most effective ones according to each case.
4 Training
Training is one of the cornerstones of the compliance function and of the knowledge of and compliance with the Code of Conduct by all professionals in the Group's companies. The training strategy is based on global training initiatives for the professionals of the Group's companies on compliance issues of a general nature and applicable to the majority of the workforce. Additionally it develops specific training plans aimed at certain groups of professionals specific compliance risks have been identified for.
5 Monitoring
The governing bodies of the Group companies are responsible for monitoring the effective implementation of the Compliance System in their respective companies.
The monitoring activities are aimed at establishing detection and control mechanisms to verify the effectiveness of the preventive measures implemented, as well as to enable continuous improvement of the compliance systems.
The key to detecting irregular conduct is the internal reporting channels established at Iberdrola and its Group.
The Group's internal reporting channels are tools made available to all shareholders, directors, professionals, suppliers, and other third parties as determined by law to report conduct that may involve the commission of any irregularity or any unlawful act or act contrary to law or to the Governance and Sustainability System.
In all cases, the Group is firmly and expressly committed to prohibiting retaliation against those who make use of those internal channels, except in cases of bad faith.
In addition, compliance systems are subject to regular audits and reviews by Internal Audit and independent third parties, and action plans are put into place to adopt the proposed recommendations.
6 Reaction
Internal reporting channels are an essential source of information for identifying improvements in compliance systems and additional prevention and control mechanisms.
In addition, as a result of audits and periodic reviews of compliance systems, action plans are established to adopt the proposed recommendations.
More detailed information can be found in the Iberdrola Group Companies Compliance systems Transparency Report [PDF]
Compliance units
In order to proactively and autonomously monitor the application and effectiveness of the Compliance System of each company of the Group, compliance units have been set up as internal and permanent collegiate bodies. These units are set up in accordance with the highest standards of independence and transparency and are linked to the boards of directors. The composition, powers and operation of the unit are regulated in the Regulations of the Compliance Unit [PDF].
The functions of the compliance units include fostering an ethical culture and "zero tolerance" towards illicit acts or acts contrary to the law or to the System of Governance and Sustainability. They also monitor the application and effectiveness of the Compliance Systems of their companies in a proactive and autonomous manner, without prejudging the appropriate coordination carried out at the Group level.
Internal information system. Whistle-blower channel
Iberdrola has implemented an internal reporting system in accordance with the provisions of applicable law and based on the principles settled in the Compliance Policy and in the Internal Reporting and Whistleblower Protection System.
The management of the internal complaint channels of each company of the Group corresponds to their respective compliance units.
These reporting channels are configured as tools made available to all shareholders, administrators, professionals, suppliers and other third parties to report conduct that may involve the commission of some irregularity or any illegal act or act contrary to the law or the Governance and Sustainability System with significance in the scope of the Company, in its contractual relationship with its suppliers or in the interests and image of the companies of the Iberdrola Group.
All communications received through these channels are considered confidential information and may, in the case of complaints, be anonymous. In all cases, all companies of the Group are firmly committed to the prohibition of any form of retaliation against those who make use of the above-mentioned reporting channels, except in cases of bad faith.
Supply Chain
One of the key elements of the Compliance System of the Group's companies is the dissemination of our ethical culture to the third parties with whom they interact. To this end, Iberdrola requires that the members of its supply chain assume certain obligations and specific guidelines for action (Suppliers’ Code of Conduct) and carry out due diligence of all its suppliers. We also develop communication and awareness-raising initiatives to promote compliance systems and supply chain’s sustainability.
Inside information
One of the functions of the Compliance Unit is to ensure compliance with the Internal Regulations for Conduct in the Securities Markets. These regulations seek to ensure the equal treatment of all investors and the protection thereof against the improper use of inside information or other conduct constituting market abuse and establishes the internal rules for the management, control and transparent communication of Inside Information. It applies to the members of the Board of Directors and senior management of the company, as well as to other individuals who have regular or temporary access to Inside Information and to the managers of Iberdrola's Treasury Share.
Transparency report
Iberdrola approves and publishes an annual report that collects the main actions, initiatives, and measures carried out, promoted, and adopted by the compliance units of each company of the Group. They showcase how the Compliance System operates in the Group’s companies and demonstrate its effectiveness.
Our figures
staff trained in ethics and compliance
€/year to promote business ethics in the communities where we operate
annual communications to
the Ethics Mailbox
annual third-party evaluations
Recognitions and certifications
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World's Most Ethical Companies list
Iberdrola, S.A. has been recognised, for the twelfth consecutive year, as one of the most ethical companies in the world, according to the ranking 2025 World's Most Ethical Companies prepared by the Ethisphere Institute, a leading US global entity in the definition of best practices in compliance matters.For inclusion in the above-mentioned list, Ethisphere values the existence of an effective compliance system, reputation, the presence of an ethical culture at all levels of the organisation and in all of its activities, corporate governance, and social responsibility. This recognition has been awarded in 2025 to 136 companies in the world − and Iberdrola continues to be the only Spanish company present in this ranking.
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Compliance Leader Verification
The Compliance Leader Verification certification, awarded by the Ethisphere Institute, is awarded to companies that not only comply with current regulations, but also demonstrate the existence of an internal culture and leadership that promotes ethical values in their business’ development. This year, 2025, we have received the 4th renewal of the certificate. -
AENOR has certified Iberdrola's Compliance System in accordance with the standard UNE 19601 on criminal compliance management systems; and the standard UNE-ISO 37001 on anti-bribery management system.
These certifications were obtained by the Company for the first time in 2017.
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For the second consecutive year, Iberdrola tops the ranking of the most transparent IBEX 35 companies, according to the report Transparency and good governance on ethics and compliance practices of IBEX 35 companies, prepared by the Haz Foundation with the support of the Cumplen Association. This report evaluates the degree of transparency in compliance policies and practices of the companies that make up the main Spanish stock market index.
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Iberdrola has been awarded ‘Ibex 35 Company with best practices in Compliance’ at the sixth edition of the Expansión Compliance Awards
Enlace externo, se abre en ventana nueva. , held in March 2025. This award, given by an expert jury made up of renowned companies and institutions, recognises our commitment to ethics, transparency and regulatory compliance in all areas. It is the most prestigious in its category as it does not reward a specific initiative, but rather evaluates the compliance system as a whole. In this edition, in which 130 nominations were submitted, Iberdrola was the only company with three nominations. In addition to the recognition received, Iberdrola was a finalist in the ‘Most Innovative Company in Compliance’ category and in the ‘Compliance Officer of the Year’ category. This recognition is in addition to the awards received in 2019 as ‘Company with best Compliance practices’ and in 2023 as ‘Most innovative company in Compliance’, which consolidates the company's leadership in this area.
These awards recognise the efforts made by companies and their managers to implement effective compliance systems in their organisations. And Iberdrola's achievement is the result of the constant effort and dedication of all the company's professionals, who work every day to ensure that activities are carried out in compliance with the highest standards of ethics and responsibility.
Leading the way in ethics and compliance
23 December 2024
