THE DRIVING IDEAS OF THE GOVERNANCE AND SUSTAINABILITY SYSTEM

The Driving Ideas of the Governance and Sustainability System

Leadership in corporate governance and transparency is one of the hallmarks of Iberdrola's identity: The Board of Directors therefore regularly reviews the Governance and Sustainability System, keeping it updated and including therein the good governance recommendations and best practices generally accepted in international markets.

In order to disseminate the content thereof and to assist in searching by subject matter, symbols are included together which each norm that identify the main "driving ideas" contained therein:

Sustainable Development Goals.

Sustainable Development Goals

The Company is committed to contributing to the achievement of the Sustainable Development Goals (SDGs) approved by the United Nations (UN). It not only contributes decisively to meeting objectives seven and thirteen relating to the supply of affordable and clean energy and the fight against climate change, but in its daily activities also takes into consideration the seventeen goals as guidance in its decision-making processes, the principles of which inform its conduct and its daily tasks, rejecting actions that contravene or hinder them.

The rules of the Governance and Sustainability System that include the Sustainable Development Goals "driving idea" are the following:

By-Laws

Purpose

Environment and Climate Action

Social Commitment

Corporate Governance

Climate Action.

Climate Action

Climate change is one of the most important challenges that humanity must currently cope with. The Company recognises the contribution of its activities to climate goals and commits itself to taking on a leadership role in the fight against climate change, as well as to protecting the environment and biodiversity.

The rules of the Governance and Sustainability System that include the Climate Change and Environment "driving idea" are the following:

By-Laws

Purpose

Environment and Climate Action

Social Commitment

Corporate Governance

Shareholder Engagement.

Shareholder Engagement

The Company is committed to a proactive search for two-way interaction with the Company’s shareholders in order to encourage their engagement in corporate life and forge a sense of belonging, maintaining a constructive, ongoing and effective dialogue with them.

The rules of the Governance and Sustainability System that include the Shareholder Engagement "driving idea" are the following:

By-Laws

Purpose

Corporate Governance

Diversity and Inclusion.

Diversity and Inclusion

The Company has established the development of professional relationships based on diversity, inclusion and a sense of belonging, equal opportunity and non-discrimination, as well as the management of people, as a strategic objective. In particular, it regards the achievement of gender equality within the Company to be one of the essential values of the organisation.

The rules of the Governance and Sustainability System that include the Gender Diversity "driving idea" are the following:

By-Laws

Purpose

Social Commitment

Corporate Governance

Decentralised Structure.

Decentralised Structure

The corporate and governance structure of the Iberdrola Group is based on a recognition of its multinational character, which is diversified, organised efficiently and coordinated around the Company and the various country subholding companies and head of business companies, subject to basic common guidelines and the principle of subsidiarity, which seeks a balance between decentralised management and the exploitation of the synergies that arise from belonging to the Group.

The rules of the Governance and Sustainability System that include the Decentralised Structure "driving idea" are the following:

By-Laws

Purpose

Corporate Governance

Compliance.

Compliance

Iberdrola promotes a culture of “zero tolerance” towards corruption and fraud due to its awareness that these are phenomena that stifle economic growth, weaken democracy and undermine social justice and the Rule of Law, causing serious harm to the economy and to society. This culture inspires its effective and independent compliance system, which is under continuous review in order to incorporate the most advanced international practices in this area.

The rules of the Governance and Sustainability System that include the Compliance "driving idea" are the following:

By-Laws

Purpose

Social Commitment

Corporate Governance

The Company is committed to contributing to the achievement of the Sustainable Development Goals (SDGs) approved by the United Nations (UN). It not only contributes decisively to meeting objectives seven and thirteen relating to the supply of affordable and clean energy and the fight against climate change, but in its daily activities also takes into consideration the seventeen goals as guidance in its decision-making processes, the principles of which inform its conduct and its daily tasks, rejecting actions that contravene or hinder them.

The rules of the Governance and Sustainability System that include the Sustainable Development Goals "driving idea" are the following:

By-Laws

Purpose

Environment and Climate Action

Social Commitment

Corporate Governance

Climate change is one of the most important challenges that humanity must currently cope with. The Company recognises the contribution of its activities to climate goals and commits itself to taking on a leadership role in the fight against climate change, as well as to protecting the environment and biodiversity.

The rules of the Governance and Sustainability System that include the Climate Change and Environment "driving idea" are the following:

By-Laws

Purpose

Environment and Climate Action

Social Commitment

Corporate Governance

The Company is committed to a proactive search for two-way interaction with the Company’s shareholders in order to encourage their engagement in corporate life and forge a sense of belonging, maintaining a constructive, ongoing and effective dialogue with them.

The rules of the Governance and Sustainability System that include the Shareholder Engagement "driving idea" are the following:

By-Laws

Purpose

Corporate Governance

The Company has established the development of professional relationships based on diversity, inclusion and a sense of belonging, equal opportunity and non-discrimination, as well as the management of people, as a strategic objective. In particular, it regards the achievement of gender equality within the Company to be one of the essential values of the organisation.

The rules of the Governance and Sustainability System that include the Gender Diversity "driving idea" are the following:

By-Laws

Purpose

Social Commitment

Corporate Governance

The corporate and governance structure of the Iberdrola Group is based on a recognition of its multinational character, which is diversified, organised efficiently and coordinated around the Company and the various country subholding companies and head of business companies, subject to basic common guidelines and the principle of subsidiarity, which seeks a balance between decentralised management and the exploitation of the synergies that arise from belonging to the Group.

The rules of the Governance and Sustainability System that include the Decentralised Structure "driving idea" are the following:

By-Laws

Purpose

Corporate Governance

Iberdrola promotes a culture of “zero tolerance” towards corruption and fraud due to its awareness that these are phenomena that stifle economic growth, weaken democracy and undermine social justice and the Rule of Law, causing serious harm to the economy and to society. This culture inspires its effective and independent compliance system, which is under continuous review in order to incorporate the most advanced international practices in this area.

The rules of the Governance and Sustainability System that include the Compliance "driving idea" are the following:

By-Laws

Purpose

Social Commitment

Corporate Governance