Would you like to learn about renewable energies, sustainable development and the circular economy? Do you need to know the meaning of concepts like EBITDA, equity capital and significant shareholders? Check out our glossary to find the definitions of these and numerous other terms related to Iberdrola and the areas where we are present: economy, energy, environment, innovation and corporate.

Select the first letter of the term you need to see an explanation of the concept, related content and downloadable documents that will help you to put it in context and interpret it.








  • What is AENOR?

    Asociación Española de Normalización y Certificación (Spanish Association for Standardisation and Certification). An entity dedicated to standardisation and certification (S&C) in all industrial and service sectors.

  • What is Acidification?

    Reduction in the pH of ocean water over an extended period of time, caused primarily by uptake of carbon dioxide (CO2) from the atmosphere, but also by other chemical additions or subtractions from the ocean. Anthropogenic acidification of the ocean refers to the proportion of the reduction in pH caused by human activity.

  • What is Activities Report of the Board of Directors and of the Committees thereof?
    Document that IBERDROLA prepares to report on the organisation, composition, operation and evaluation of the Board of Directors and the committees thereof for each financial year.

    More about Activities Report of the Board of Directors and of the Committees thereof

  • What is Admission to trading?
    Process whereby a company's shares are listed on one or more Stock Exchanges in order for purchase and sale transactions to be carried out on organised markets that are subject to government regulation and supervised by the National Securities Market Commission (CNMV), thus ensuring the highest levels of liquidity and transparency as well as better shareholder protection. IBERDROLA's shares are admitted to trading on the Madrid, Barcelona, Bilbao and Valencia Stock Exchanges.

  • What is Agenda?
    Matters included in the call to meeting or in any supplement thereto for discussion and approval, if appropriate, at the general shareholders' meeting or at the meetings held by any other collective decision-making body.
  • What is Announcement of the call to meeting?
    What is an Announcement of the call to meeting: Notice to the shareholders of the holding of the general shareholders' meeting, which, in the case of listed companies in Spain, must be published, duly in advance, in the Official Bulletin of the Commercial Registry or in one of the more widely circulated newspapers in Spain, on the website of the CNMV and on the corporate website, setting forth all such information as is required by law and, in any event, the place, date and time of the meeting as well as the agenda listing the matters to be dealt with. See "Official Bulletin of the Commercial Registry".

    More about Announcement of the call to meeting

  • What is Annual Corporate Governance Report?

    Report that must mandatorily be prepared pursuant to the Securities Market Act, the purpose of which is to explain the ownership and management structure, the operation of the corporate decision-making bodies, related-party transactions, the risk control system and the degree to which the good governance recommendations are followed by listed companies in Spain.

    More about Annual Corporate Governance Report

  • What is Annual Director Remuneration Report?

    Annual document that listed companies in Spain must annually submit to a consultative vote of the shareholders at the general shareholders' meeting, reporting on the application of the director remuneration policy approved by their shareholders.

    More about Annual Director Remuneration Report

  • What is Annual Financial Report?

    Document that listed companies in Spain must submit to the National Securities Market Commission (CNMV), including the individual annual accounts and management reports as well as those consolidated with their subsidiaries, together with the respective auditors' reports and the directors' statements of responsibility.

    More about Annual Financial Report

  • What is Annual General Meeting?
    Meeting of the shareholders that must be held within the first six months of each financial year in order to approve the annual accounts, the proposed allocation of profits or losses and company management for the prior financial year.

    More about Annual General Meeting

  • What are Annual accounts?

    Documents prepared by the board of directors of a company comprising its individual annual accounts (balance sheet, profit and loss account, statement of changes in shareholders' equity, statement of cash flows and notes) and the annual accounts consolidated with those of its subsidiaries (balance sheet, profit and loss account, statement of changes in shareholders' equity, statement of cash flows and notes), which must be submitted to the shareholders for approval at the annual general meeting.

    More about Annual accounts

  • What is Atmosphere?
    The envelope of gases surrounding the Earth, divided into five layers: the troposphere, which contains half of the Earth's atmosphere, the stratosphere, the mesosphere, the thermosphere and the exosphere, the upper limit of the atmosphere. The dry atmosphere is made up almost entirely of nitrogen (78.1%) and oxygen (20.9%) and various trace gases like argon (0.93%), helium and radiatively active greenhouse gases (GHGs) like carbon dioxide (CO2) (0.035%) and ozone (O3). The atmosphere also contains highly variable amounts of water vapour (H2O), which is also a greenhouse gas (GHG), generally with a volume mixing ratio of 1%.

  • What is Authorised capital?

    Value of the share capital that the board of directors may increase with the prior authorisation of the shareholders at a General Shareholders' Meeting.

  • B

  • What is Balance sheet?

    Financial statement that expresses the financial position of a company.

  • What is Biodiversity?
    Term given to the wide variety of life on Earth and the natural patterns it forms, the fruit of billions of years of evolution, shaped by natural processes and, increasingly, by the influence of humans. Biodiversity also includes the variety of ecosystems and the genetic differences within each species (genetic diversity) that allow for a combination of multiple life forms, and the interactions of which with the rest of the environment are the basis for sustaining life in the world.

    More about Biodiversity

  • What is Biomass?
    The mass of living organisms of an ecosystem, whether natural, residual, made up of ad hoc crops or organic matter organised within a biological process, nitrogen, hydrogen sulphide and water vapour, which is produced during the anaerobic digestion of organic material.
  • What is Biosphere?
    Part of the Earth system that comprises all ecosystems and living organisms in the atmosphere, on land (terrestrial biosphere) and in the oceans (marine biosphere), including derivative dead organic matter (such as trash, soil organic matter and ocean waste).

  • What is Bloomberg Gender-Equality Index?

    Stock index that includes companies that stand out for their performance in gender equality through the implementation of corporate policies for this purpose. IBERDROLA has been selected in the ranking of the index, in recognition of its equal opportunity and gender policies. See "Board of Directors Diversity and Member Selection Policy" and "Equality, Diversity and Inclusion Policy".

  • What is Board of Directors?

    Collective corporate decision-making body, made up of the directors appointed or ratified by the shareholders at a general shareholders' meeting, vested with the power to represent the company.

    IBERDROLA's Board of Directors focuses its activity on establishing the general management policies, strategies, and guidelines for the Group, supervising the general development of such strategies and guidelines, and deciding matters of strategic significance.

    More about Board of Directors

  • What is Bond?
    Fixed-income negotiable security, similar to debentures but with shorter periods to maturity (in general, from 3 to 5 years). See "Debenture".
  • What is Brundtland Commission?

    World Commission on Environment and Development, named after its chair Gro Harlem Brundtland, a former prime minister of Norway. The results of its works were published in 1987 under the title "Our Common Future" and is one of the leading reference texts on sustainable development.

  • What is Business Model?
    Design of the business organisation to achieve its strategic objectives. The IBERDROLA group's business model entails the global integration of the businesses, is focused on maximising the operational efficiency of the various business units, and ensures the dissemination, implementation and monitoring of the overall strategy and the basic management guidelines established for each business, primarily through the exchange of best practices among the various companies of the Group and without detracting from independence in decision-making by each of them.
  • What are By-Laws?

    Rules approved by the shareholders governing the operation of a company, the relationships between the company and its shareholders, the relationships among shareholders themselves, and the manner in which it must act with respect to third parties. 

    The By-Laws of IBERDROLA contain the definition of its enterprise, the particular concept of corporate interest that must govern the conduct of its management decision-making bodies, the commitment to the social dividend and to its purpose and values, and the determination of the essential basis and of the most significant foundations and aspects of its business, corporate and institutional organisation, which make up its virtual soul.

    More about By-Laws

  • C

  • What is CO2 equivalent?
    Unit used to measure the emission of greenhouse gases. Gases are measured in terms of their equivalence in carbon dioxide, as this is the most well-known GHG. The unit used is tCO2eq, which means a greenhouse gas emission volume equal to one tonne of CO2.

  • What is Call to the General Shareholders' Meeting?

    See "Announcement of the call to meeting".

    More about Call to the General Shareholders' Meeting

  • What is Carbon Disclosure Project?
    Not-for-profit organisation that runs a global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts. IBERDROLA is included in the Carbon Disclosure Leadership Index, which measures the level of companies' transparency in relation to their carbon emissions, and in the Carbon Performance Index, which analyses the effectiveness of the measures they are taking to reduce them.
  • What is Carbon Fund for a Sustainable Economy (FES-CO2)?
    Climate finance instrument created through Law 2/2011 of 4 March on Sustainable Economy, the goal of which is to refocus economic activity towards low-carbon models, while at the same time contributing to meeting the international goals assumed by Spain to reduce emissions of greenhouse gases.
  • What is Carbon dioxide (CO2)?
    Gas that is produced both naturally and as a sub-product of the combustion of fossil fuels (coal, natural gas and oil) and biomass, changes in the use of land, and other industrial processes. It is the main greenhouse gas produced by human activity, and therefore the one that most affects the planet's radiation balance.
  • What are Carbon sinks?
    According to the United Nations Framework Convention on Climate Change (UNFCCC), it is any process, activity or mechanism which reabsorbs or removes a GHG, an aerosol or a precursor of a GHG from the atmosphere (UN 1992). Major natural carbon sinks include the sea and, in certain years, terrestrial vegetation.

    More about Carbon sinks

  • What is Caring for Climate?
    The UN's Initiative for Business Leadership on Climate Change launched by UN Secretary-General Ban Ki-moon in July 2007. Its goal is to help prevent a climate change crisis by mobilising a critical mass of business leaders to implement and recommend climate change solutions and policies. IBERDROLA, S.A. joined in September 2008.
  • What is Cessation in office, removal and resignation of directors?

    Termination of the relationship between a director and the company, which occurs upon the expiration of the term of office to which the director was appointed or when so decided by the shareholders in exercise of their powers at a general shareholders' meeting.

  • What is Chair of the General Shareholders' Meeting?

    Position held by the chair of the board of directors of a company at its general shareholders' meeting, whose function is, among other things, to verify the legality of the meeting, certify the identity and status of the attendees, regulate the conduct thereof and announce the results of the voting, which must be recorded in the minutes.

    More about Chair of the General Shareholders' Meeting

  • What is Counsel to the board of directors?

    Counsel appointed by the Board of Directors, who has the duty to give advice on the legality of the resolutions adopted by the board of directors and, if applicable, of the deliberations at which the counsel is present; evidence of all action taken in the counsel's professional capacity must be recorded in the corporate documents, as provided by Law 39/1975 of 31 October on the Appointment of Counsel to the Board of Directors of Certain Commercial Companies.

  • What is Chief Executive Officer?
    Member of the board of directors to whom certain powers of the collective body are individually delegated within the limits established by law.

    More about Chief Executive Officer

  • What is Circular economy?
    Strategy aimed at generating a system for using resources that prioritises the reduction, reuse and recycling of elements.

    More about Circular economy

  • What is Climate?

    Atmospheric pattern that manifests cyclically over a long period of time in a particular region or area of the planet. The atmospheric patterns are: tropical, subtropical, marine and Mediterranean.

  • What is Climate Leadership Index?
    Selective index that recognises the strategy of companies for fighting climate change. There are two indices: Disclosure, which assesses the transparency in a company's climate change information, and Performance, which assesses a company's performance in this area. IBERDROLA is listed on both indices.
  • What is Climate change?
    Defined by article 1 of the United Nations Framework Convention on Climate Change as: "a change of climate which is attributed directly or indirectly to human activity that alters the composition of the global atmosphere and which is in addition to natural climate variability observed over comparable time periods".
  • What is Co-ownership of rights in shares?

    See "Co-ownership of shares".

  • What is Co-ownership of shares?

    A situation in which one or more shares of a company are held by several owners. The co-owners of one or more shares must designate a single person for the exercise of shareholder rights, and shall be jointly and severally liable to the company for all obligations arising from such shareholder status. The same rule applies to other instances of co-ownership of rights in equity interests or shares.

  • What is Code of Ethics?

    A code that further develops the ethical principles set out in the Purpose and Values of the Iberdrola group, good governance recommendations and social responsibility principles, and is intended to serve as a guide for the conduct of the directors, professionals and suppliers of the Company and its group of companies.

    More about Code of Ethics

  • What is Cogeneration?

    A process whereby electricity and useful thermal energy, such as steam, domestic hot water and cold air, are obtained simultaneously. The advantages of cogeneration are greater energy efficiency, fuel savings and a reduction in CO2 emissions.

  • What is Cogeneration plant?
    Electric power generation plant that simultaneously uses a portion of the heat produced as a source of thermal energy, which significantly increases the performance of the process compared to the performance that can be achieved by conventional electric power generation.
  • What is Combined cycle plant?
    Combined cycle electric power generation plant, with gas turbine (Brayton cycle) and steam turbine (Rankine cycle) driving electrical generators, which is fed by natural gas. The efficiency of a natural gas combined cycle plant (55%) is much higher than that of a coal-fired power plant (35%). This higher efficiency translates into lower fuel consumption per GWh produced, lower consumption of auxiliary materials from thermal production, lower emissions per GWh produced, lower water consumption and lower volume of waste (ash).

  • What are Committees of the Board of Directors?

    Committees created by the board of directors and made up of directors in order to issue proposals and reports (in the case of consultative committees) or make binding decisions (in the case of executive committees) in the areas within their purview. At least one audit committee and one appointments and remuneration committee (or separate appointments and remuneration committees) are required, with the requirements stated in the Companies Act.

    More about Committees of the Board of Directors

  • What is Companies Act?
    Restatement approved by Royal Legislative Decree 1/2010 of 2 July on the Rules Governing Partnerships Limited by Shares, Joint-Stock Companies and Limited Liability Companies. See "Company".
  • What is Company (Sociedad Anónima)?

    A company in which capital is divided into shares of stock and made up of the contributions of all the shareholders, who are not personally liable for the debts of the company.

  • What are Company books?

    Books legalised at the Commercial Registry in which the minutes of the meetings held and the decisions and resolutions adopted by the corporate decision-making bodies are recorded.

  • What is Company name?
    Name used to identify a company as a holder of rights and obligations in all legal relationships in which it engages.
  • What is Company object?

    Set of activities that a company can perform in accordance with the provisions of its by-laws.

  • What is Compliance?
    Set of organisational rules, procedures and functions intended to implement an ethical culture within the company, as well as to prevent and avoid any impropriety or violation of applicable internal or external rules, including corruption and market abuse.

    More about Compliance

  • What is Compliance Unit?
    A collective internal and permanent body, which in the case of IBERDROLA is linked to the Sustainable Development Committee of the Board of Directors, with powers and duties in the area of regulatory compliance and the Corporate Governance System, particularly with respect to crime prevention matters.
  • What is Conflict of interest?
    Situation in which the interests of a director, officer or any professional directly or indirectly conflict with the interest of the company to which they provide their services or of other companies within the same group.
  • What is Convertible debenture?

    Fixed-income negotiable security representing a debt for the issuer thereof, which bears interest in favour of the investor and entitles the holder to exchange it for newly-issued shares at the price specified in the terms of the issue.

  • What are Corporate Decision-Making Bodies?

    The shareholders acting at a General Shareholders' Meeting, the Board of Directors, the Executive Committee, and the chairman & chief executive officer of IBERDROLA, S.A.

  • What is Corporate Governance System?

    Internal rules of a listed company. IBERDROLA's Corporate Governance System is made up of its By-Laws, the Purpose and Values of the Iberdrola group, corporate policies and other governance and compliance rules.

    More about Corporate Governance System

  • What are Corporate Policies?

    Guidelines of a company that guide the conduct of its shareholders, officers and other professionals. IBERDROLA's corporate policies are grouped into corporate governance and regulatory compliance policies, risk policies and sustainable development policies.

    More about Corporate Policies

  • What is Corporate Resolution?
    Decision validly adopted by any of the corporate decision-making bodies that binds the company vis-à-vis third parties.
  • What is Corporate Social Responsibility?

    The European Union defines it as "The responsibility of enterprises for their impact on society". This definition includes any kind of impact (direct or indirect, positive or negative) that companies may have on their various Stakeholders.

    More about Corporate Social Responsibility

  • What is Corporate Website?
    Instrument to channel the relations of the company with its stakeholders, and particularly for official communication with shareholders and investors.

    More about Corporate Website

  • What is Corporate environmental footprint?
    AENOR index based on the ISO/TS 14072 international technical specification accrediting that the organisation has identified all environmental impacts during the life cycle of its activities, with the aim of improving and reducing them. IBERDROLA was the first organisation to obtain the Corporate Environmental Footprint certificate from AENOR.
  • What is Corporate governance?

    Defined in the Cadbury Report as the system by which companies are directed and controlled, it is a set of rules, principles and procedures that govern the structure and operation of a company's governance bodies and the relations among the board of directors, shareholders and stakeholders.

    More about Corporate governance

  • What is Corporate transformation?
    Resolution adopted by the shareholders at a general shareholders' meeting in order to change the original form of corporate organisation to another among those allowed by law.
  • What is Counsel to the board of directors?
    Counsel appointed by the Board of Directors, who has the duty to give advice on the legality of the resolutions adopted by the board of directors and, if applicable, of the deliberations at which the counsel is present; evidence of all action taken in the counsel's professional capacity must be recorded in the corporate documents, as provided by Law 39/1975 of 31 October on the Appointment of Counsel to the Board of Directors of Certain Commercial Companies.
  • What is Counting of votes?
    Counting of votes cast by the shareholders on proposals that the board of directors submits to the shareholders at a general meeting. The results of the voting must be published on the corporate website within five calendar days following the end of the general shareholders' meeting of listed companies.
  • What are Country subholding companies?

    Companies of the IBERDROLA group grouping together equity stakes in each of the head of business companies that carry out their activities in the various countries in which the Group operates and centralising the provisions of services common to such companies.

    More about Country subholding companies

  • What is Credit rating agency?

    Entity that issues reports and ratings on the ability of issuers to meet their short-and-long-term financial obligations.

  • What is Cybersecurity?
    Set of measures intended to protect the components of the information technology and communications systems infrastructures from external cybernetic threats.

    More about Cybersecurity

  • D

  • What is Daily market close?

    Time at which trading officially ends on the Automated Quotation System (Electronic Market), namely, at 17:35 and 30 seconds on a trading day, and which determines the closing price of a share on that trading day.

    More about Daily market close

  • What is Debenture?

    Fixed-income negotiable security representing a pro rata share of a loan obtained by the issuer and entitling the holder thereof to collect interest at a fixed or variable rate and to the return of the principal provided on the date of maturity of the issue.

  • What is Debenture-holder?

    Holder or subscriber of debentures.

  • What is Decarbonisation?

    Process by which countries, companies and individuals attempt to achieve an economy with low CO2 emissions by reducing their emissions. In the energy context, this term refers to the efforts to maximise the reduction in the amount of CO2 emissions produced per unit of energy consumed by encouraging emission-free energies.

    More about Decarbonisation

  • What is Director?
    Director of a company when the duties of administration are entrusted to a board of directors, the members of which are called directors. A board of directors is required for listed companies like IBERDROLA in Spain.

    More about Director

  • What is Diversity?
    Takes into consideration the multiplicity of skills, knowledge, origins, nationalities, ages and genders that enrich the organisation and the operation of entities like listed companies.

    More about Diversity

  • What is Dividend?

    Portion of corporate profits used to remunerate the shareholders.

    More about Dividend

  • What is Dow Jones EuroStoxx 50?
    Stock market index made up of the 50 most important stocks in the Eurozone, including IBERDROLA.
  • What is Dow Jones Stoxx Global 1800?
    Stock market index made up of the leading 1,800 companies in the European, Asia-Pacific and American stock markets, including IBERDROLA.
  • What is Dow Jones Sustainability Index?
    Wall Street stock market index that comprises the companies with the best sustainability profile, including IBERDROLA since 1999. It is a well-known benchmark for measuring performance in aspects of sustainability.

  • E

  • What is EBITDA?

    Earnings before interest, taxes, depreciation and amortisation. Gross operating profit before interest, taxes, provisions, amortisation and depreciation.

    More about EBITDA

  • What is Early action?

    Compensatory measure provided by the European Commission (COM 2003, 830 final) in the planning of greenhouse gas emissions. "The accommodation of early action (in a national plan for the assignment of emission rights) is considered as desirable from a fairness point of view. Those installations that have already reduced greenhouse gas emissions in the absence of or beyond legal mandates should not be disadvantaged vis-à-vis other installations that have not undertaken such efforts. The application of this criterion necessarily implies fewer allowances available for installations that have not undertaken early action." See "Atmosphere", "Global warming", "CO2 equivalent", "Emission Trading Scheme (ETS)" and "Greenhouse Gases (GHGs)".

  • What are Earnings per share?

    Result of dividing net attributable profit by the number of outstanding shares.

  • What is Electrical grid?
    Transmission of electric energy from the electric energy production centres to the final consumption points. They are divided into transmission grids and distribution grids, based on the laws of each country.

    More about Electrical grid

  • What is Electronic shareholders' forum?

    Electronic tool required by the Companies Act for listed companies in Spain in order to facilitate communication among shareholders and shareholder associations through its corporate website on occasion of the call to and until the holding of each general shareholders' meeting.

    More about Electronic shareholders' forum

  • What is Emission Trading Scheme (ETS)?
    A market instrument creating economic incentives and disincentives in the pursuit of environmental benefits. In 2005 the European Union launched a CO2 market operating in 31 countries (the 28 countries of the EU plus Iceland, Liechtenstein and Norway) and limiting the emissions of more than 11,000 energy-intensive plants (electric power plants and industrial plants) and airlines operating among these countries, covering approximately 45% of the European Union's greenhouse gas emissions.

    In Spain, emission rights trading is regulated by Law 13/2010 of 5 July, which amends Law 1/2005 of 9 March regulating the greenhouse gas emission rights trading system in order to improve and expand the general rules for trading in emission rights and to include aviation therein.

  • What is Energy efficiency?
    Efficient use of energy such that the same or less is used to obtain the same results. Applies to both production processes and domestic consumption. The concept has given rise to an energy label that expresses efficiency on a scale of seven classes represented with letters and colours (from a green A for the most efficient equipment to a red G for the least efficient equipment).

    The Iberdrola group seeks optimisation in the use of energy throughout its energy supply chain and acts to optimise the use of energy in production, transmission and distribution, as well as in the final use.

    More about Energy efficiency

  • What is Environment?
    Aggregate of physical, chemical, biological and social components capable of causing direct or indirect effects, in the short or long term, on living beings and human activities.

    In general terms, the concept of environment encompasses the surrounding which affects and determines the circumstances of life of people or society as a whole. It includes the set of natural, social and cultural values that exist at a specific place and time and which influence the lives of people and future generations. It not only involves the space in which life occurs but also encompasses living beings, objects, water, soil, air and the relationships between them, as well as such intangible elements as culture.

    More about Environment

  • What is Excellence in Sustainability Club?

    A business association, of which IBERDROLA is a founding member, comprising a group of large companies committed to sustainable growth from the economic, social and environmental point of view. Its aim is to serve as a forum of dialogue with stakeholders and as a sustainable development benchmarking platform and to transmit good practices to the Spanish corporate community.

  • What is Executive Director?

    Director who performs management duties within the company or within its group, whatever the legal relationship the director maintains therewith.

    More about Executive Director

  • What is Extraordinary General Meeting?

    Meeting of the shareholders that is not considered to be an annual general meeting. An extraordinary general meeting can be held at any time, when the circumstances so advise and after it has been called as provided by the regulations.

    More about Extraordinary General Meeting

  • What is EBIT?
    Earnings before interest and taxes. Net operating profit, after depreciation, amortisation and provisions.

    More about EBIT

  • F

  • What is Financial year?
    Twelve-month period to which the annual operational and financial objectives established by a company refer, the results of which must be reflected in the annual accounts. The financial year of IBERDROLA is the same as the calendar year.
  • What is Fossil fuel?
    Fuel found in the Earth's crust made up of buried organic matter that was subsequently transformed over geological time. Coal, oil, natural gas and carbonaceous and bituminous shale are fossil fuels.
  • What is Free float?
    Portion of the share capital that is in the hands of shareholders on a temporary basis and thus freely traded on the Stock Exchange.
  • G

  • What are GRI Standards?

    Consolidated set of standards for preparing sustainability reports of the Global Reporting Initiative, the purpose of which is to serve as a guide in the preparation of public reports on the economic, environmental and social impacts of organisations, and thus their contributions (positive or negative) to the goal of Sustainable Development. See "Non-Financial Information Statement - Sustainability Report".

  • What is General Shareholders' Meeting?

    Meeting at which the shareholders can decide on the matters within their purview by the majority established by law or in the by-laws.

    More about General Shareholders' Meeting

  • What is Global 100 Most Sustainable Corporations in the World?
    Index that recognises the 100 most sustainable companies in the world, compiled by the Canadian magazine specialised in corporate social responsibility Corporate Knights. IBERDROLA is one of the one hundred international companies selected to form part of this index.

  • What is Global Reporting Initiative's G3 Standard?

    First global standard for the preparation of sustainability reports of companies that wish to evaluate their economic, environmental and social performance.

  • What is Global Roundtable on Climate Change?
    Organisation dedicated to the debate and analysis of key economic, technological and scientific strategies in the fight against climate change. IBERDROLA is the only Spanish electricity company among the founding members.
  • What is Global warming?
    A term that refers to the gradual increase in the average global temperature that has been occurring since the end of the 19th century (beginning of the industrial era) as a result of the growing emission of greenhouse gases (GHGs) from various economic and industrial activities.
  • What is Good Governance Code of Listed Companies?

    Document approved by the CNMV on 18 February 2015 that contains the good governance recommendations with respect to which listed companies in Spain must report their level of compliance in their annual corporate governance report.

    More about Good Governance Code of Listed Companies

  • What is Greenhouse effect?
    Process by which the heat coming from the surface of the earth is absorbed by gases in the atmosphere (see "Greenhouse Gases") and re-radiated in all directions, which causes an increase in the surface temperature of the atmosphere. Although it is a natural effect of our planet, it has increased due to the increase in emissions of these gases, causing global warming.

    More about Greenhouse effect

  • What is Greenhouse gas emissions?
    In the climate change context, emissions refer to the release of greenhouse gases and/or their precursors and aerosols into the atmosphere over a specified area and period of time.

    More about Greenhouse gas emissions

  • What are Greenhouse gases (GHGs)?
    Gases in the atmosphere that can retain heat radiating from the Earth outward, which therefore accentuate the greenhouse effect that triggers climate change.

    Carbon dioxide (CO2) plays a leading role because it is one of the gases for which emissions have increased the most in recent decades and because it lasts for a long time in the atmosphere (50-100 years), for which reason it is particularly influential as a GHG. The temperature is approximately 15º C thanks to the "natural" greenhouse effect produced by CO2, water vapour and methane. The problem arises from the accentuation of this greenhouse effect by the gradual increase in emissions of CO2 and other GHGs due to human economic and industrial activities.

    More about Greenhouse gases (GHGs)

  • What is Group of companies?
    Group of companies in which one of them (the controlling company) holds or may hold, whether directly or indirectly, control of one or more other companies (the dependent companies).

    More about Group of companies

  • H

  • What are Head of business companies?

    The head of business companies of the Group are in charge of the day-to-day administration and effective management of each of the business subgroups, as well as day-to-day control through their respective boards of directors and management decision-making bodies.

    More about Head of business companies

  • What are Human rights?

    Rights inherent to all human beings, regardless of nationality, place of residence, sex, national origin or ethnicity, colour, religion, language or any other status. We are all equally entitled to our human rights without discrimination. These rights are all interrelated, interdependent and indivisible.

    Respect for human rights is one of the main pillars of IBERDROLA's culture of social responsibility and of its contribution to sustainable development, which is why it has a set of tools that guarantee and promote the protection of and respect for human rights.
    See "Policy on Respect for Human Rights".

  • I

  • What is Increase in share capital?

    What is an Increase in share capital: Resolution adopted by the shareholders at a general shareholders' meeting or, if applicable, by the management decision-making body in exercise of powers granted or delegated thereto by the shareholders, in order to increase capital through the conversion of reserves into capital or the provision of fresh funds. See "Share capital".

  • What is Independent Director?

    Director who is appointed because of the personal and professional qualities thereof, who can carry out their duties without being constrained by relationships with the company, its group of companies, its significant shareholders or its officers, and who is not affected by the disqualifications from being classified as independent provided by the law applicable to each company.

    More about Independent Director

  • What is Inside information?

    All information of a specific nature referring directly or indirectly to one or more negotiable securities, financial instruments or issuers that has not been made public and that, if it is or had been made public, could appreciably influence or could have appreciably influenced the price of said securities on a market or organised trading system.

    More about Inside information

  • What is Installed capacity?
    Measurement of the productive capacity of a facility equal to the maximum volume of electric power that can be produced in one hour.

    More about Installed capacity

  • What is Integrated Report?
    Document describing the business model, the strategy and the outlook of the Company, following the recommendations and methodology of the International Integrated Reporting Council (IIRC), and including a summary of the principal operating and financial figures for each financial year, the Company's governance structure, and the Company's management regarding the capitals related thereto (financial, industrial, intellectual, human, natural, and social and relational), according to the definitions of the IIRC.

    More about Integrated Report

  • What is Intergovernmental Panel on Climate Change?
    Created in 1988 by the World Meteorological Organization (WMO) and the United Nations Environment Programme (UNEP). It is made up of a group of experts, divided into various working groups, whose goal is to provide scientific, technical and socio-economic information to understand human-induced climate change, as well as the impacts thereof and options for mitigation and adaptation. One of its main activities is the regular publication of advancements in the understanding of climate change.

  • What is Intergovernmental Panel on Climate Change (IPCC)?
    Created in 1988 by the World Meteorological Organisation and the United Nations Environment Programme (UNEP). It is formed by a group of experts, divided into various working groups, whose goal is to provide scientific, technical and socio-economic information in order to better understand human-induced climate change, its impacts and the mitigation and adaptation options. One of its primary activities is the periodic publication of the advances made in the understanding of climate change. More information:
  • What are Interim dividends?
    Amounts distributed to the shareholders as an advance payment of the expected final profit.
  • What is Issuance of securities?

    Resolution adopted by the shareholders at a general shareholders' meeting or, if applicable, by the board of directors in exercise of powers previously delegated thereto by the shareholders, in order to place homogeneous negotiable securities into circulation and make them available to the public for subscription.

  • ¿Qué es Informe de sostenibilidad?

    Documento que elabora IBERDROLA desde 2003 para informar sobre el desempeño de la Sociedad en las dimensiones económica, ambiental, social y de gobierno corporativo, siguiendo el conjunto consolidado de estándares para la elaboración de informes de sostenibilidad y el suplemento para las empresas del sector eléctrico, ambos del Global Reporting Initiative (GRI), así como la norma AA1000, y que se somete a una verificación externa independiente.

    Más sobre Informe de sostenibilidad

  • J


  • What is Kyoto Protocol?
    International accord adopted in 1997 and in effect since February 2005. Was ratified by 192 of the Parties to the United Nations Framework Convention on Climate Change, and for the first time established targets to reduce net emissions of greenhouse gases for the principal developed countries and economies in transition, with a calendar for compliance.
    The greenhouse gas emissions of the industrialised countries must be reduced to at least 5% below 1990 levels during the 2008-2012 period, known as the first commitment period of the Kyoto Protocol. At the Doha Conference in 2012, the Parties to the Kyoto Protocol adopted an amendment thereto, which established the second commitment period of the Protocol (2013-2020).

    More about Kyoto Protocol

  • L

  • What is Lead independent director?
    Director whose appointment is required by the Companies Act for listed companies if the chair of the board of directors is an executive director. The lead independent director should be empowered to request a call to meeting of the board of directors or the inclusion of new items on the agenda, coordinate and hold a meeting of the non-executive directors, and direct the evaluation of the chair.

    Iberdrola's lead independent director also has powers to chair meetings of the board of directors in the absence of the chairman and the non-executive vice-chair, to participate in the planning of the annual schedule of meetings and in the preparation of the agenda for each meeting, and to lead the process for the succession of the chairman when the chairman provides advance notice of his desire to cease to hold office as such.

    More about Lead independent director

  • What is Legitimate holder of the shares?

    Person in whose name ownership of the shares is recorded and who is therefore attributed the status of shareholder as well as the rights and duties established by law and the Corporate Governance System.

  • What are Liberalised activities?
    Activities carried out by energy and gas companies that are not subject to regulation, such as the production and sale of gas and electricity in Spain.
  • What is Liberalised company?

    A company carrying out liberalised activities. See "Liberalised activities".

  • What is Listed company?

    A company whose shares are admitted to trading on an official secondary market. IBERDROLA is a listed company.

  • M

  • What is Market abuse?

    Set of practices relating to the improper use of inside information or the manipulation of markets, such as the listing price of a financial instrument. These types of practices are prohibited by commercial law and may constitute a crime.

  • What is Market operator?

    Commercial company that manages the system of offers to buy and sell electric energy on the daily and intraday energy market on the terms established by applicable regulations.

  • What is Merger of companies?

    Business combination carried out through the dissolution of one or more companies that contribute their assets to another pre-existing or newly created company, with the shareholders of the predecessor companies becoming shareholders of the new one.

  • What is Microgrid?
    Autonomous electric and thermal generation grid that makes use of various renewable energies and storage elements for the self-supply of a home or group of homes, thus being stand-alone compared to integrated systems.
  • What are Minutes?

    Document containing a written record of the proceedings at meetings of the corporate decision-making bodies and of the resolutions or decisions adopted thereby.

  • What is Mitigation?
    Halting the accumulation of greenhouse gases in the atmosphere by reducing emissions and placing existing emissions of gases into "sinks". Mitigation directly affects the sources of GHG emission and absorption (affects the causes of climate change).
  • N

  • What is National Commission on Markets and Competition (Comisión Nacional de los Mercados y de la Competencia) (CNMC)?
    Regulatory agency, independent of the government and subject to parliamentary control, created by Law 3/2013 of 4 June, which brings together the former National Competition Commission (Comisión Nacional de la Competencia) and the majority of the supervisory agencies within the industry (i.e. the National Energy Commission (Comisión Nacional de la Energía), the Telecommunications Market Commission (Comisión del Mercado de las Telecomunicaciones), the National Postal Industry Commission (Comisión Nacional del Sector Postal), the Spanish Audiovisual Media Council (Consejo Estatal de Medios Audiovisuales) and the Railway and Airport Regulation Committee (Comité de Regulación Ferroviaria y Aueroportuaria). Its duties include the promotion and protection of the proper operation of all markets in the interest of consumers and companies.
  • What is National Securities Market Commission (Comisión Nacional del Mercado de Valores) (CNMV)?
    Government agency created in 1988 within the Ministry of Economy, charged with supervising and inspecting securities markets and the activities of the individuals and legal entities that come into contact with each other while trading on such markets. The law assigns to the CNMV the duty of ensuring the transparency of the markets, the proper formation of prices and the protection of investors.

    More about National Securities Market Commission (Comisión Nacional del Mercado de Valores) (CNMV)

  • What are Natural resources?
    Material goods and services provided by nature without intervention by humankind, and which are valuable to human societies because they contribute to the well-being and development thereof both directly (raw materials, minerals, foodstuffs) and indirectly (ecological services).

    They can be renewable (those regenerated by natural processes, such that they can continue to exist after being used if their capacity for regeneration is not exceeded) or non-renewable.
  • What is Net profit?

    The profit obtained by a company after subtracting all expenses (including amortisation/depreciation and taxes) from total revenues.

  • What is Nitrogen oxide (Nox)?

    Nitrogen oxides are composed of nitrogen and oxygen, two elements that do not usually react with each other, but which may do so during high-temperature combustion, such as in a car engine. Such gases include nitric oxide (NO) and nitrogen dioxide (NO2), which contribute towards air pollution, and nitrous oxide (N2O), which is one of the main greenhouse gases; although its warming effect is not very high, its stays in the atmosphere for a long time so its impact is 298 times greater than CO2.

  • What is Non-Financial Information Statement - Sustainability Report?
    Document prepared by IBERDROLA since 2003 to report on the Company's performance in the economic, environmental, social and corporate governance dimensions, in compliance with the law applicable to non-financial reporting, the set of Global Reporting Initiative (GRI) standards for preparing sustainability reports, as well as the electric utilities supplement thereto and the AA1000 standard, and which is subject to independent external assurance and is approved by the Board of Directors and by the shareholders at the General Shareholders' Meeting.
  • What is Non-financial information?

    Set of information regarding environmental, social and corporate governance issues, including issues relating to personnel, human rights and the fight against corruption and bribery, which companies considered to be public interest entities under the laws on auditing have had to include since 2018 in their management report or in a separate report, which must be subject to independent external verification and submitted for the approval of the shareholders at the General Shareholders' Meeting. IBERDROLA submits it for the approval of the shareholders at the General Shareholders' Meeting as a specific item on the agenda. See "Statement of Non-Financial Information - Sustainability Report".

    More about Non-financial information

  • What are Notifications sent to the CNMV?

    Notifications sent by the Company to the National Securities Market Commission (Comisión Nacional del Mercado de Valores) (CNMV) in order to immediately publicise and disseminate significant information to the market. Notifications may be inside information or other relevant information.

    Inside information is specific, non-public information referring to an issuer or financial instrument that, if made public, could have an appreciable influence on the price, while information categorised as other relevant information does not affect the price.

  • What are Notifications sent to the CNMV?

    Notifications sent by the Company to the National Securities Market Commission (Comisión Nacional del Mercado de Valores) (CNMV) in order to immediately publicise and disseminate significant information to the market. Notifications may be inside information or other relevant information.

    Inside information is specific, non-public information referring to an issuer or financial instrument that, if made public, could have an appreciable influence on the price, while information categorised as other relevant information does not affect the price.

  • What is Nuclear energy?
    That freed as a result of a nuclear reaction. It can be obtained by the process of nuclear fission (division of heavy atomic nuclei) or nuclear fusion (union of very light atomic nuclei).

  • O

  • What is OLS Shareholder's Club?

    Initiative adopted by IBERDROLA, S.A. in order to strengthen the relationship with those persons who have demonstrated their support for and confidence in the track record of the Company through the purchase of securities thereof. Joining this club allows the shareholders of IBERDROLA, S.A. to be continuously informed of the performance and strategy of the Company.

    More about OLS Shareholder's Club

  • What is Official Bulletin of the Commercial Registry?

    Official journal in which all events, announcements and legal notices of commercial companies are published as required by law. The electronic issue of the Official Bulletin of the Commercial Registry is published on the website (Spanish version) with the same effects that are legally attributed to the printed edition thereof.

  • What is Optional dividend?

    Remuneration system that allows shareholders to receive bonus shares of the company, with favourable tax treatment, without limiting their ability to receive the dividend in cash. IBERDROLA offers this option to its shareholders through the "Iberdrola Flexible Remuneration" optional dividend system.

  • What is Ordinary share?

    Security granting the same rights to all holders thereof, as is the case with the shares issued by IBERDROLA. Ordinary shares carry no preferential rights, as opposed to preferred shares.

  • What is Other External Director?

    A director who is not an executive director and who also does not fit the description of a proprietary or independent director.

  • What are Own shares or treasury shares?

    Shares of a company derivatively acquired by the company itself or through companies belonging to the same group.

  • What are Ownership of shares?

    Title whereby the holder of the shares acquires the rights and becomes subject to the obligations inherent to such shares.

  • What is Ozone Layer?
    Region of the stratosphere that absorbs 87% to 99% of high frequency ultraviolet radiation. It is weakened by the emission of chlorofluorocarbons present in industrial refrigerants and propellants and soil fungicides.
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  • What is PER (Price to Earnings Ratio)?

    The market value of a company's shares (stock market capitalisation) divided by the net attributable profit. Reflects the value of the net attributable profit as a function of the stock market valuation (capitalisation).

  • What is Par value of a share?

    Result of dividing the share capital by the number of shares.

  • What is Paris Agreement?
    Global agreement on climate change adopted in December 2015 at the Paris COP21 by the 195 state parties to the United Nations Framework Convention on Climate Change.The Paris Agreement entered into force on 4 November 2016 and lays down a bridge between today's policies and the climate neutrality that should exist by the end of the century.

    The agreement has a long-term objective to "strengthen the global response to the threat of climate change, in the context of sustainable development and efforts to eradicate poverty", for which purpose it sets out three specific actions:

    a) Holding the increase in the global average temperature to well below 2°C above pre-industrial levels and pursuing efforts to limit the temperature increase to 1.5°C above pre-industrial levels,

    b) Increasing the ability to adapt to the adverse impacts of climate change and foster climate resilience and low greenhouse gas emissions development, in a manner that does not threaten food production;

    c) Making finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development.

    More about Paris Agreement

  • What is Periodic financial information?

    Financial documents prepared on a quarterly, semi-annual and annual basis pursuant to the provisions of Royal Decree 1362/2007, which are publicised by delivery to the CNMV and which are therefore available to shareholders and investors. See "Annual accounts".

  • What is Pledge of shares?

    Delivery of shares as security for a loan, a credit facility or for compliance with a principal obligation generally.

  • What are Pre-emptive rights?

    The right of all shareholders to acquire, on a preferential basis, newly-issued shares in the event of an increase in capital or the conversion into shares of an issue of convertible debentures.

  • What is Preferred share?

    Share carrying some financial privilege in addition to that carried by ordinary shares (normally, a higher dividend by means of a special participation in profits). They are rare in the Spanish market, and IBERDROLA currently has no shares of this type.

  • What is Principle of equal treatment of shareholders?

    Principle adopted by applicable law to guarantee equal treatment in the acknowledgement and exercise of their rights by all shareholders who are in the same position or have the same interest.

  • What is Private (paracorporate) shareholders' agreement?

    Agreement executed by and among some or all of the shareholders or members of a commercial company in order to supplement, specify or modify their internal relationships and the legal and by-law relationships governing the company. They are legal devices protected under article 1255 of the Civil Code, which embodies the principle of free will of the parties in contractual matters.

  • What is Profit and loss statement?

    Financial statement reflecting a summary of all income and expenditure during a financial year.

    More about Profit and loss statement

  • What is Proprietary Director?

    External director who either holds a shareholding interest equal to or greater than that legally regarded as significant and who has been appointed owing to their status as a shareholder, even if their shareholding interest does not reach said amount, or who represents shareholders among those described above.

    More about Proprietary Director

  • What is Proxy advisor?

    Entity that offers recommendations to institutional investors regarding the exercise of voting rights at the listed companies in which they invest.

  • What is Public takeover bid?

    Financial transaction whereby an individual or legal entity makes a public offering to the shareholders of a listed company for the acquisition of its shares in order to obtain a significant interest in the capital or to increase their interest by a specified percentage. A public takeover bid can always be made on a voluntary basis, but it must be targeted to all of the shareholders in the case of a takeover bid for a listed company in Spain.

  • What are Purpose and Values of the Iberdrola group?

    Ideological and axiological basis that sustains IBERDROLA's corporate enterprise, guides its strategy and conduct, governs its day-to-day activities and guides the ethical behaviour of the entire human team participating in the realisation thereof.

    More about Purpose and Values of the Iberdrola group

  • What is Pay-out?

    Percentage of profits used to remunerate the shareholders.

  • Q

  • What is Quorum for the general shareholders' meeting?

    Percentage of share capital accounted for by shareholders present in person and by proxy that is required for the valid formation of the corporate decision-making body.

  • R

  • What is Reduction in share capital?

    Resolution adopted by the shareholders at a general shareholders' meeting that entails a reduction in the nominal value of the shares, the redemption of shares, or the formation of a pool in order to exchange them, and the purpose of which may be to return contributions, cancel capital calls, create or increase reserves, re-establish equilibrium between the capital and the assets of the Company diminished due to losses, or several of such purposes simultaneously.

  • What are Regulated activities?
    Activities carried out by energy and gas companies that are subject to regulation, such as the distribution and transmission of electricity and gas in the principal countries in which the companies of the Iberdrola group operate these businesses: Spain, United Kingdom, United States and Brazil.
  • What is Regulated company?

    A company carrying out regulated activities. See "Regulated activities".

  • What are Related-party transactions?
    Any transfer of funds, services or obligations between a company and its directors, significant shareholders, senior officers or their respective related parties, regardless of the existence of consideration. As a listed company, IBERDROLA must quantify these transactions in the half-yearly public information that it submits to the CNMV and in its Annual Corporate Governance Report with the scope required by applicable legal provisions.
  • What is Renewable energy?
    Sustainable sources of energy obtained from natural sources that are inexhaustible within a short time frame compared to the natural cycles of the Earth (or that are perceived as inexhaustible within conceivable timescales) These are then divided into:

    Non-carbon-based technologies:
    - Solar power, wind power, geothermal: alternative energies based on the sun, wind and the Earth's heat.
    - Hydro, tidal and wave energy: coming from rivers, ocean bodies and wave action.

    Carbon-neutral technologies:
    - Those obtained from biomass, which can be used directly as fuel (wood or other solid vegetation) or converted into bioethanol, biogas or biodiesel.

    More about Renewable energy

  • What is Result attributed to the controlling company?

    Portion of the consolidated result after taxes and minority interests that belongs to the holders of ordinary shares of the parent company of the Group.

  • What is Right to attend?

    The power of all holders of shares of a company with voting rights to attend the general shareholders' meeting and take part in deliberations thereof. A national identity document or equivalent document is sufficient to be able to attend IBERDROLA's General Shareholders' Meeting and evidence one's status as a shareholder.

  • What is Right to proxy representation?

    The right of all shareholders entitled to attend the general shareholders' meeting to be represented by another person, provided that said person complies with the requirements and formalities established by law and the by-laws.

  • What is Right to receive information?

    The power of all shareholders of a company to request in writing the information or clarifications that they deem are required, or to ask the written questions they deem relevant, regarding the matters contained in the agenda for the general shareholders' meeting.

  • What is Right to vote?

    The right of all shareholders to participate in the adoption of resolutions at the general shareholders' meeting. If the shareholder cannot attend in person, this right may be delegated to another person, by giving them a proxy using one of the means provided by law and the by-laws.

  • S

  • What is Secretary for the General Shareholders' Meeting?

    Position generally held by the secretary of the board of directors of a company at the general shareholders' meeting, the duties of which include preparing the minutes of the meeting, assisting the chair, and certifying and formalising the resolutions adopted.

    More about Secretary for the General Shareholders' Meeting

  • What is Secretary of the Board of Directors?

    Position designated by the board of directors of a listed company, who shall in all cases be responsible for the following duties under the Companies Act:

    - Keep custody of the documentation of the board of directors, record the proceedings of meetings in the minute books and certify the content thereof and the resolutions adopted.
    - Endeavour to ensure that the conduct of the board of directors conforms to applicable legal provisions and adheres to the by-laws and other internal regulations.
    Assist the chairman so that the directors receive information relevant to the exercise of their duties sufficiently in advance and in the proper format.

    More about Secretary of the Board of Directors

  • What are Securities Brokerage Firm?
    Investment services company authorised by the CNMV, whose task is to act as an intermediary in securities markets but without the power to trade on its own account. It operates on behalf of clients and charges a commission, and may also offer advice on financial investments, act as an intermediary in issues and public offerings, and keep custody of and manage negotiable securities and other financial instruments.

  • What are Securities Market Act?

    Regulation of the Spanish systems for trading financial instruments approved by Royal Legislative Decree 4/2015 of 23 October establishing the principles for the organisation and operation thereof and the rules applicable to the financial instruments traded therein, as well as those applicable to the issuers of such instruments, the provision of investment services in Spain, and the rules for supervision, inspection and imposition of penalties.

  • What is a Senior officer?
    An officer reporting directly to the board of directors, to the chairman thereof, or to the chief executive officer of a listed company and, in any event, the director of the internal audit area, as well as any other officer that the board of directors considers to have such status.

    More about Senior officer

  • What is Share?
    Negotiable equity security representing a pro-rata, indivisible and cumulative portion of the capital of a company, giving the holder thereof the rights and obligations inherent to shareholder status. The shares of IBERDROLA are listed on the four Spanish stock exchanges and are traded through the "Continuous Market", "General Shareholders' Meeting" and "Stock Exchange".

    More about Share

  • What is Share capital?

    Equity of a company consisting of the shareholders' contributions.

    More about Share capital

  • What is Share capital in attendance in person or by proxy?
    See "Quorum for the General Shareholders' Meeting".

    More about Share capital in attendance in person or by proxy

  • What is Shareholder?

    An individual or legal entity holding shares of a company.

    More about Shareholder

  • What are Shareholders?

    All of the individuals and legal entities holding shares issued by a company.

  • What is Significant interest?

    Percentage of the capital of a listed company that directly or indirectly exceeds a threshold specified from time to time by applicable legal provisions. In Spain, it is currently deemed that a shareholder possesses a significant interest when holding at least 3% of voting rights. Changes in a significant interest must be reported by the holder to the CNMV as provided by securities market regulations.

    More about Significant interest

  • What is Significant shareholder?

    Shareholder whose interest is equal to or greater than that legally regarded as significant at any time. See "Significant interest".

  • What is Smart electricity grid?
    Grid that supplies electricity using digital technology to save energy, reduce costs and increase the quality and safety of supply.

    More about Smart electricity grid

  • What is Social dividend?

    Term adopted by the Iberdrola group to express its goal for the sustainable creation of value for all of its stakeholders, especially through its contribution to the communities in which the Company does business, both from the economic viewpoint and from the perspective of business ethics, the promotion of equality and justice, the encouragement of innovation and the protection of the environment, as well as through the generation of quality employment and leadership in the fight against climate change.

    More about Social dividend

  • ¿Qué es Sociedad de Gestión de los Sistemas de Registro, Compensación y Liquidación de Valores, S.A. (IBERCLEAR)?
    Company integrated within the BME, the operator of all securities markets and financial systems in Spain, the main function of which is to be the Spanish Central Securities Depositary.
  • What is Solar thermal plant?
    Solar electric power production plant, generally by means of a field of parabolic concentrators from which heat is extracted by means of a fluid that is transferred to a steam generator for the plant's turbine.
  • What is Special purpose entity?

    Also known as special purpose vehicle, it is an entity created for a specific purpose or for a limited period.

  • What are Split-off of companies?

    Resolution adopted by the shareholders at a general shareholders' meeting in order to divide one, more or all portions of the corporate assets and transfer them en bloc to an existing or newly-created company that acquires them as a universal successor.

  • What are Stakeholders?
    Groups that might influence or be affected by the decisions or the value of a company. IBERDROLA considers the workforce, shareholders and the financial community, regulatory entities, customers, suppliers, the media, society in general and the environment to be stakeholders. The Stakeholder Engagement Policy sets out the need to promote dialogue with all of them and their engagement. For this reason, the Iberdrola group has its own Stakeholder Engagement Model, based on the most advanced international standards.

    More about Stakeholders

  • What is Statutory Auditor?
    Independent entity that verifies that the individual annual accounts and any consolidated accounts of a company and its subsidiaries have been prepared in accordance with the requirements established by generally accepted accounting principles and standards under applicable legal provisions.
  • What is Statutory Auditor Independence Report?

    Report that the audit committees of listed companies in Spain must prepare to verify the independence of the Company's statutory auditor.

  • What is Stock Exchange?
    Organised market, subject to government regulation and supervised by the CNMV. It has the exclusive right to trade shares and convertible securities or securities granting subscription rights. Also traded thereon are government- and privately-owned fixed-income securities, as well as warrants, certificates and exchange traded funds (ETFs). There are four traditional Stock Exchanges in Spain (Madrid, Barcelona, Bilbao and Valencia, part of the holding company BME) along with an electronic system for trading on all of them based on the Spanish Automated Quotation System (Sistema de Interconexión Bursátil Español (SIBE)). See "Share".

    More about Stock Exchange

  • What is Stock market capitalisation?

    Financial indicator of the equity value of the Company on the Stock Market, which is calculated by multiplying the number of its outstanding shares by the market price.

  • What is Sustainability Index?

    Reference standard prepared by a specialised agency, which a company may choose to follow for the preparation of sustainability reports. See "Sustainability Report".

  • What is Sustainable development?
    Development that satisfies the needs of the present without compromising the ability of future generations to meet their own needs. Sustainable development covers three dimensions: economic, environmental and social. See "General Sustainable Development Policy".

  • What is Sustainable event?
    An event for the total scope of which the positive impacts on the three aspects covered by Sustainable Development (economic, social and environmental) are maximised. IBERDROLA certifies its General Shareholders' Meeting using the ISO 20121 standard, which is the internationally accepted standard for sustainable event management.

    More about Sustainable event

  • T

  • What is Tariff deficit?
    Difference between the income that electric companies receive for payments from consumers (set by the government and paid for their regulated and competitive supply, respectively) and the regulated costs allowed to be charged for the supply of electricity (energy acquisition costs for transporting, distributing and subsidising certain energies that, according to the legal system, are included in the tariffs).

  • What is Transfer of shares?

    Transaction whereby a change in ownership of the shares is effected.

  • U

  • What are UN Sustainable Development Goals (SDGs)?
    Goals and objectives adopted by all of the member States of the United Nations after the agreement reached in 2015, which consist of a Declaration, 17 Sustainable Development Goals and 169 targets to reach by 2030. IBERDROLA's Corporate Governance System provides for the alignment of all of the Group's actions in its bylaw-mandated commitment to the SDGs.

    More about UN Sustainable Development Goals (SDGs)

  • What is United Nations Framework Convention on Climate Change (UNFCCC)?
    The Framework Convention on Climate Change was created in 1992 within the framework of the Earth Summit in Rio de Janeiro. It acknowledged for the first time that the climate system is a resource shared by all nations and that greenhouse gas (GHG) emissions must be reduced in order to solve the issue of climate change, but without referring to specific dates for achieving this. "Conferences of the Parties" is the name given to the successive meetings that the countries have held under this convention. The Kyoto Protocol and the Paris Agreements are the fruit of these conferences.
  • What is Unsecured debenture?

    Fixed-income negotiable security representing a debt for the issuer thereof, which bears interest in favour of the investor and is repayable at maturity or upon early repayment.

  • V

  • What is Vice-chair of the Board of Directors?

    Position held, upon a proposal of its chairman and after a report from the appointments and remuneration committee, by one or more members of the board of directors to temporarily replace the chairman in the event of vacancy, absence, illness or incapacity.

    More about Vice-chair of the Board of Directors

  • W

  • What is Wind turbine?
    Facility that converts the kinetic energy of the wind into electrical power.

    More about Wind turbine

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