News
-
20/11/2020Iberdrola, selected as a leading company in the OpenODS Index Iberdrola has been selected as a benchmark company in the first edition of the OpenODS Index , occupying first place in the ranking of entities that appear in the index, having the highest score in the total of the three Agenda 2030 implementation phases of the OpenODS System. The three Agenda 2030 implementation phases are a first phase of alignment, a second phase of localisation and a third phase of implementation and monitoring. OpenODS Index is the first platform for qualification and transparency in the fulfilment of the Sustainable Development Goals. It is a joint initiative by Enreda SCA and Creando Conciencia SCA, two companies committed to the development of sustainable solutions and the generation of social impact value, whose mission is to systematise information on SDGs and make it accessible and useful for accelerating Agenda 2030. The OpenODS system is designed to facilitate its usability, scalability and adaptation to any context. Its methodology is defined by the following characteristics: Open Data, global and geolocalised, intersectoral, multilevel and correlational. Leaders in driving the SDGs With Iberdrola’s leadership in the OpenODS Index, it has again proven that it is firmly committed to achieving the Sustainable Development Goals (SDG) of the UN Agenda 2030. The company focuses its efforts on the supply of affordable and clean energy (Goal 7) and on climate action (Goal 13) while also contributing directly to ensuring clean water and sanitation (Goal 6), increasing its investment in R&D+i activities (Goal 9), promoting respect for the life of terrestrial ecosystems (Goal 15) and working to establish partnerships to achieve the goals (Goal 17). In addition to the Open ODS Index, Iberdrola is also included in other important sustainability indexes, such as the Dow Jones Sustainability Index (DJSI), the FTSE4 Good, GLOBAL100 and MSCI Global Sustainability Index Series. READ MORE
-
18/11/2020“Investments in clean energy must be tripled” Iberdrola’s chairman, Ignacio Galán, took part in Energy’s New “Prize” panel at the Bloomberg New Economy Forum held virtually from 16 to 19 November under the title A Global Town Hall , where energy, climate and sustainability were discussed. The discussion sought to identify what the new energy economy and the geopolitics surrounding it will look like. In addition to the need to triple investment in renewables, Ignacio Galán reiterated the key role of green hydrogen in electrifying certain industrial processes and sectors such as maritime transport and aviation. Investment in clean energy must triple to meet the greenhouse gas emission cuts and efficiency measures committed so far. Among the main conclusions were the essential role of recovery plans in the energy transition and the green economy, the capacity of the energy sector to generate growth accompanied by job creation, and the electrification of the economy as a crucial vector of decarbonisation. Galán was accompanied by Ernest Moniz, CEO of EJM Associates and Energy Futures Initiative (EFI) and former U.S. Secretary of Energy; and Josephine Wapakabulo, founder and CEO of TIG Africa and former CEO of the Uganda National Oil Company. The Bloomberg New Economics Forum brings together leaders from East and West to discuss the most pressing problems facing the global economy and to propose solutions. READ MORE
-
18/11/2020Iberdrola joins the world’s top manufacturer of electrolysers to make Spain a leader in green hydrogen technology and industry Iberdrola and the world's leading manufacturer of electrolysers, Nel – through Nel Hydrogen Electrolyser – have combined their capacities to turn Spain into a technological and industrial benchmark in green hydrogen. The companies have signed a Memorandum of Understanding (MoU) to develop and deploy large-scale electrolyser projects and promote the technology’s supply chain in Spain. Norwegian company Nel is the world's largest manufacturer of electrolysers with business operations in over 80 countries. It is a global company dedicated to hydrogen, offering optimal solutions for producing, storing and distributing hydrogen from renewable energy. Its roots date back to 1927 and its hydrogen solutions cover the entire value chain, from hydrogen production technologies to hydrogen fueling stations. Its shares are listed on the Oslo Stock Exchange. In addition, and in order to deliver this project, Iberdrola and Basque company Ingeteam have created a new venture under the name of Iberlyzer, set to become Spain’s first integrator of large-scale electrolyser plants. The new company will begin operations next year with the aim of integrating more than 200 MW of electrolysers by 2023. This output (representing over 50% of Spain’s electrolyser capacity target) would be destined for the second project of the Iberdrola-Fertiberia alliance, which will produce green hydrogen for the Palos de la Frontera plant in Spain. The Ingeteam Group, a global supplier to Iberdrola, specialises in electricity conversion, with operations all over the world and permanent operations in 24 countries, employing more than 4,000 people. The Iberlyzer industrial project will require close to €100 million investment and will create 150 direct skilled jobs. Ignacio Galán, Chairman and CEO of Iberdrola, said: “This initiative will accelerate the production of green hydrogen in Spain and will create a new industry, the manufacturing of electrolyser systems, with high growth potential. We continue to make progress in our ambitious plan to put Spain and Europe at the global forefront of this technology by reducing energy dependence and fossil fuel consumption while driving the country’s economic and social revitalisation.” Jon André Løkke, CEO of Nel, said: "We are honored that Iberdrola wants to work more closely together with us on electrolyser projects in the 100-MW scale and beyond. Just as Iberdrola in the past successfully contributed to developments in the wind industry, they are now doing the same within hydrogen. Getting visibility on significant off-take volumes and working together on the value chain through scale-up will contribute massively to the overall cost reductions.” Adolfo Rebollo, CEO of Ingeteam, said: "We are proud to participate with Iberdrola in this new and exciting project. From the very beginning we have worked together with Iberdrola in the field of renewable energy, first in wind energy, then in solar photovoltaics and from today, with the creation of Iberlyzer, we are at the forefront of developing the green hydrogen industry." Iberdrola, green hydrogen technology and industry leader Recently, Iberdrola and Fertiberia presented an innovation alliance to develop a four-stage, 800-MW green hydrogen production project at the Fertiberia plants in Puertollano (Ciudad Real) and Palos de la Frontera (Huelva) by 2027. The initiative represents an investment of €1,800 million over the next seven years and could turn Spain into a green-hydrogen industrial leader, and the first country with 100% of its ammonia production for fertilisers being completely green. The green hydrogen production capacity under this plan would be equivalent to 20% of the national target (4GW installed capacity by 2030) and would ensure that around 25% of the hydrogen currently consumed by Spain would not generate any CO2 emissions. These projects would contribute to the development of the value chain, creating almost 4,000 skilled jobs – 2,000 of them already by 2023 –, through 500 local suppliers. Being the result of a private-public partnership, the project is born with the same ambition that the Spanish Government has shown in its Green Hydrogen Roadmap and meets the EU recovery funds criteria, essential to the implementation of its last three phases. Europe's largest industrial hydrogen complex This innovation initiative was kicked-off with the launch of the largest green hydrogen complex for industrial use in Europe which will be operational in just one year in Puertollano (Ciudad Real), after an investment of €150 million. The project will consist of a 100-MW solar photovoltaic plant, a lithium-ion battery system with a storage capacity of 20 MWh and one of the largest systems for producing hydrogen by electrolysis (20 MW). Its development and construction will create 700 jobs and, once operational, will prevent the emission of 39,000 tCO2/year. For this project, Iberdrola has selected the European company Nel Hydrogen Electrolyser -a division of Nel ASA- as its preferred supplier for the construction of the hydrogen production system using electrolysis. READ MORE
-
17/11/2020Iberdrola and Bayer make progress on their environmental commitment and seal 10-year agreement for 100 % renewable electricity supply Iberdrola and Bayer in Spain are joining forces in the transition to a green economy with the signing of the first long-term power purchase agreement (PPA) between an electricity utility and a pharmaceutical company in Spain, generated by clean generation sources. Iberdrola will supply 100 % renewable electricity to cover the entire electricity procurement of the nine Bayer sites in Spain, including three factories, five research and development (R&D) centres and the company's headquarters for Iberia. This initiative will be effective in 100 % of these centres from 2022 and for a ten-year period, with the electricity generated by the Francisco Pizarro photovoltaic plant – Europe’s largest planned photovoltaic plant – which Iberdrola will build in Extremadura and which has already received environmental impact approval (EIS). Until that time, the agreement includes a 'bridge contract' under which Bayer will now consume all the electricity it needs without emissions, with guarantee of origin (GO) labels. With the agreement, Iberdrola and Bayer continue to contribute together to the transition towards a green economy, following the PPA agreed by both companies in Mexico whereby the pharmaceutical company buys green energy generated by the Santiago onshore wind farm (105 MW), located in the state of Guanajuato. The alliance reinforces Iberdrola's renewable strategy, which includes the signing of bilateral energy supply contracts at competitive and stable prices with large customers committed to sustainable consumption. "PPAs open up many opportunities for the development of renewable projects which are transforming the present and future of energy in our country while contributing to the transition to a green economy. These long-term energy purchase contracts bring stability to the company's investments. They have also become an optimal tool for managing the electricity needs of large consumers, committed to clean and sustainable supply. PPAs demonstrate the competitiveness of renewables and their ability to supply energy at affordable and stable prices in the long term," explains Eduardo Insunza, Iberdrola's Global Director for Large Customers. Bayer, which at the end of last year announced its commitment to achieving an emission-neutral footprint worldwide by 2030, is making progress with this agreement, which represents a major step forward in its contribution to net zero. In addition, the company is analyzing and adapting its facilities to make them more efficient with better use of resources, as another priority on which Bayer is focusing its investment. “Measures such as these help us to further Bayer's commitment to sustainability by taking concrete steps to reduce our environmental impact," said Laura Dieguez, Director of Communications, Corporate Public Affairs and Sustainability. “Working with experts such as Iberdrola makes this commitment effective almost immediately, while we contribute to develop the infrastructure Europe needs to build a greener and more environmentally friendly future.” Competitive technology to mitigate global warming The 100 % renewable energy that Iberdrola will supply to Bayer facilities in Spain will come from the Francisco Pizarro project, the largest photovoltaic (PV) plant currently under planning consent in Europe, with 590 MW installed capacity. Located between the Extremaduran municipalities of Torrecillas de la Tiesa and Aldeacentenera (Cáceres), the project has already received environmental impact assessment (EIA) approval and will generate enough clean energy to supply 375,000 people annually, a figure higher than the populations of the cities of Cáceres and Badajoz. Once operational in 2022, the plant will prevent the emission of 245,000 tonnes of CO2 into the atmosphere each year, reinforcing the competitiveness of this technology for the protection of the environment and the mitigation of global warming. Beyond its environmental contribution, the new investment in this PV project – which will amount to €300 million – will help to reactivate the supply chain and job creation in the community, involving up to more than 1,000 professionals. Francisco Pizarro is part of Iberdrola's renewable energy investment plan in Extremadura which envisages the installation of some 2,000 green MW by 2022, making the region one of the central platforms of its renewable energy strategy in Spain. Renewables for a green recovery Iberdrola has extensive global PPA experience, managing long-term power purchase agreements in markets such as Spain, the United Kingdom, the United States, Mexico and Australia – following its recent entry into this market – for more than 3,000 MW wind and photovoltaic capacity. In Spain, the company has pioneered this type of contract with companies from different industries: banking, telecommunications, breweries, distribution, sports and now pharmaceuticals. For more information: What is a PPA, and what are the main benefits? Iberdrola is convinced that electrification with renewable energy sources will play an essential role in economic recovery, industrialisation and job creation in the post-COVID world. Iberdrola has recently presented an investment plan of €75 billion by 2025, the largest ever made by a Spanish company, with which it will double its renewable capacity. The company anticipates that its activity, procurement and investments will boost the business of its 22,000 suppliers - sustaining 500,000 jobs worldwide - as well as new recruits in the group, which could reach 20,000 by 2025. Iberdrola is a global renewable energy leader and a benchmark in the fight against climate change. The group currently operates 32.7 GW of clean energy globally and has a green project pipeline of more than 70 GW. READ MORE
-
11/11/2020Ignacio Galán, Management Leadership Award by the AEC: “Today, quality is sustainable development” The Spanish Association for Quality (AEC) has given the Management Leadership Award to Ignacio Galán, the chairman of Iberdrola, to acknowledge his personal and professional commitment towards management excellence and a career that should inspire new generations and portray Spain as a benchmark for quality and excellence. The award was made this morning during a ceremony organised by the Association to celebrate World Quality Day. The main topic of the event was the potential for Sustainable Development Goals (SDGs) to boost and bring about new business opportunities, enhance brand value and retain talent. In his speech, the chairman of Iberdrola pointed out the key elements that have brought the company to where it is today, based on “solid values such as effort, loyalty, honesty and teamwork; an innovative vision to anticipate long-term challenges; dynamic management to adapt to change and an execution that favours growth, sustainable development and the creation of value for employees, shareholders and society”. Mr Galán recalled that, “in 2001, it became clear to us that the battle against climate change was one of the major challenges humanity would have to face. We realised that shifting towards a decarbonised economy was the only way forward and that the electricity sector could provide efficient solutions.” “We got a step ahead of everyone else,” said Mr Galán, “by making a pioneering commitment to renewables and proving that they are a feasible and efficient alternative in producing energy.” Iberdrola’s journey has placed it in a globally-leading position that “has always been guided by a business model that works to create sustainable value for shareholders, employees and society. “All these actions,” he explained, “are in line with the Sustainable Development Goals set by the United Nations, which we have built into our strategy.” Making decisions, daring and taking risks “The role played by those wishing to change things means making decisions –not always easy ones–, being daring and taking risks,” states the chairman of Iberdrola, who explains that at times like these, the best way to drive economic recovery is to make progress in the transition towards a sustainable energy model, because of the major investments it requires and the driving force it represents. “Because, just like the slogan of this conference, we also consider that sustainability is quality and in our process of continuous improvement we fly the flag of sustainable development. This is a responsibility which we embrace now more than ever because the business model we have been developing for over 20 years has made us a key driving force in the transformation of the industrial fabric,” states Mr Galán. Ready to promote a sustainable growth model to take on the challenges of society In the words of Ignacio Galán, the company is “ready to leverage our experience, social engagement and financial power to promote a long-term sustainable growth model with which to take on the challenges of today’s society.” Last week, Iberdrola presented the most ambitious investment plan in its hundred-year history – the largest ever to be undertaken by a Spanish company. With initiatives that involve €75 billions of investment by 2025, the company is set to double its renewable capacity to reach 60,000 MW. The plan will increase the company’s electricity grid assets by 50% over the next five years up to €47 billion, which should double by 2030. “Because the only way out of a crisis is to work harder and to invest more and better,” asserted Mr Galán. The company believes that its activities, purchases and investments can help to boost the business of its 22,000 suppliers (which support 500,000 jobs around the world), as well as enabling the Group to make new hires, potentially adding 20,000 more jobs by 2025. Quality at Iberdrola - a powerful lever to create added value For Iberdrola, quality means excellence in managing all processes and resources and is a fundamental lever in creating value for shareholders, employees and society as a whole. Quality guidelines are strategic, documented plans in keeping with the company’s Policy and Strategic Plan, which includes a pledge to strive for ongoing improvement and is reflected in every goal and every action planned by the Iberdrola organisations. The company has achieved quality certifications for its processes, products and services in all of its key areas, both nationally and internationally, including environmental management and occupational risk prevention. READ MORE
-
10/11/2020I Iberdrola Diversity and Inclusion Report: equal pay, accessibility, STEM vocations and diversity in the value chain Iberdrola is working to create a professional environment where its employees are a true reflection of society and where opportunities are generated so that everyone can develop to their full potential. This is reflected in its first Diversity and Inclusion Report 2019, which compiles the initiatives developed by the company in these matters, considered a strategic priority for the company’s sustainable growth, with its teams, its customers, its suppliers and with the communities in which it operates. In the report, Iberdrola chairman Ignacio Galán, explains that “the great differentiating factor for companies’ success in the 21st century is talent. For this reason, having a diverse team and a culture that encourages inclusion is essential for any group that aspires to face the challenges of a changing reality” And he adds: “A diverse and inclusive company is better at attracting and retaining talent and is more innovate, thereby becoming more productive and more open to the society it serves”. Diversity and inclusion are considered a strategic priority for the sustainable growth of the company. In fact, the company has included the Sustainable Development Goals in its variable remuneration: thus, for example, its 2020-2022 Strategic Bonus is based on a financial and business objective, but also on a contribution to the SDGs. 100 % equal pay between men and women In 2019, Iberdrola’s workforce was made up of more than 35,000 workers of 64 nationalities, in which more than 4 generations coexist. Within the group, women in managerial positions made up 20 % of the total; a number that the company wants to steadily increase to 30 % by 2025. Over the past five years, significant progress has been made in this field — despite fewer women being attracted to the sector — with the number of women in management positions increasing by 31.3 %. In terms of the Board of Directors, as of 2019, 43 % are women, exceeding that established in the CNMV Code of Good Governance for Listed Companies, and furthermore its members are from five different nationalities. In recent years, Iberdrola has continued to promote equal pay between men and women, within its Equal Opportunities and Conciliation Policy, seeking to achieve equal pay for the same work, and also salary reviews using criteria common for both genders. Currently, the average total annual remuneration of women is higher than that of men: 50,086 euros compared to 47,614 euros in the case of men, in 2019. The company is committed to creating a culture that promotes diversity and inclusion and has developed processes and systems that promote practices and behaviours that align with this strategy. To this end, it has a complaints box — 33 were received in 2019, 6 of which resulted in a written warning — and it has created a commission to promote and monitor progress on diversity and inclusion. The group's best inclusion practices in Spain include the continuous working day, since 2007, and other measures that go beyond those established in law on maternity and paternity leave and leave of absence. In the UK, Scottish Power runs the Breaking Barriers programme, which offers young people with learning difficulties the opportunity to gain recognised qualifications and work experience. In Brazil, the Electrician School for women launched by Neoenergía offers specific training to promote women’s participation in the workforce in the electricity sector. Another example is found in Mexico with its Impulso STEM programme to promote the study of engineering among Oaxacan youth, especially among women. In the United States, Avangrid encourages the inclusion of war veterans with a range of programmes. Similarly, the principles of Iberdrola’s corporate culture also include the pursuit of a multinational culture, through a mobility programme, together with the creation of teams containing diverse cultures and backgrounds. Iberdrola also works for functional diversity, undertaking actions to raise awareness, and it is committed to promoting diversity in all its forms through a multinational and inclusive workforce, including aspects relating to identity and sexual orientation (LGBTIQ+ community). Protection for vulnerable customers and electricity for all At the customer level, its General Sustainable Development Policy undertakes to pay special attention to economically disadvantaged customers or customers in any other vulnerable situation by establishing specific protection procedures and collaborating to facilitate continued access to energy supply. It also offers exclusive services for customers with disabilities. For example, ComunicA offers a pioneering sign language video-interpreting service in its customer service and, in other markets such as the United Kingdom and the United States, it facilitates translation and customer service programmes targeting those customers who find it difficult to express themselves in English or Spanish. With the Electricity for All programme, Iberdrola seeks to bring electricity to more than 16 million people from vulnerable groups by 2030, who currently lack access. Since the launch of this initiative in 2014, 7 million people in numerous countries around the world have benefited from this programme. In Mexico, with the Luces de Esperanza project, the company will bring electricity to 30 rural communities in Huasteca Potosina (Mexico), with the installation of solar panels in homes, schools, health centres and community spaces. Suppliers subject to sustainable development policies and standards Iberdrola believes that a strategic supplier must be aligned with its sustainable development standards, in terms of human rights, codes of conduct, health and safety standards, and environmental strategy. In 2019, the company launched a new supplier evaluation model in relation to sustainability, and it reviewed the diversity and inclusion performance levels of collaborating companies accounting for more than 5 billion euros of purchases made in the year. Among the aspects analysed were the percentage of women hired, the existence of policies to promote equality and diversity and inclusion, the promotion and development of measures aimed at facilitating the work-life balance and the wage gap. In this context, the company has set an ambitious goal to ensure that, by 2022, at least 70 % of its main suppliers are subject to sustainable development policies and standards. Iberdrola has also encouraged purchases from companies that have been in operation for less than 5 years, showing its support for entrepreneurship. Likewise, it is committed to increasing purchases from companies with diverse groups and to help small companies that may be at a disadvantage when competing in international markets. In Spain and the United States, the volume of purchases from different collectives groups rose to 95.3 million euros in 2019. Talent and diversity in STEM For years, Iberdrola has developed numerous initiatives to support the professional development of women, promoting equal opportunities through women’s sport and supporting groups at risk of social exclusion, among other initiatives. In Brazil, Neoenergia launched the Electricians School to offer specific training for women, to increase their participation in the labour market in the electricity sector. Through its subsidiary in Mexico, the group developed the first Women with Energy forum in 2019, in which 40 female team leaders with high development potential were given the opportunity to share their experiences and ideas. ScottishPower, for its part, is a member of POWERful Women, an initiative to advance gender diversity within the enegry sector. The promotion of women’s sport has become a key lever for Iberdrola, and the promotion of real equality between men and women, one of its essential values. In 2016, Iberdrola became the first company to make a firm and global commitment to equality and the empowerment of women through sport. Currently, the company supports 16 leagues. It also sponsors 22 leagues, all of them high-level, along with 35 other competitions. In 2019, a total of 7,489 Iberdrola volunteers participated in social projects aimed at integrating vulnerable groups and sustainable development. Thus, for example, in Spain, with the Luces y Acción initiative — carried out in collaboration with the Tomillo Foundation — it promotes training in energy efficiency and encourages the employability of young people from disadvantaged backgrounds. In Brazil and Mexico, its volunteers participate in the global INVOLVE programme, training young people at risk of exclusion in new technologies. READ MORE
-
05/11/2020Iberdrola launches €75 billion investment plan to 2025 as a firm commitment to economic recovery Iberdrola launches a historic investment plan worth €75 billion euros for the period 2020-2025, with the aim of anticipating and taking advantage of the opportunities created by the energy revolution facing the world's major economies. 90% of this investment volume – €68 billion – will be organic and will be aimed at consolidating its business model, based on more renewable energy, more networks, more storage and more intelligent solutions for its customers. The rest, €7 billion euros, corresponds to the recently announced acquisition of American company PNM Resources[ 1] . This unprecedented rate of expenditure will represent an average investment of €10 billion per year between 2020 and 2022, and €13 billion per year in the period 2023-2025. Iberdrola's investment strategy -together with its efficiency policy- will continue to deliver profitable growth during the period, while maintaining its financial strength and shareholder remuneration. The group expects to obtain a gross operating profit (EBITDA) of €15 billion by 2025, which means an increase of €5 billion from 2019, with average annual growth of 7%. Net profit would amount to €5 billion, after growing annually by between 6% and 7% during the period. The presentation of the outlook to 2025 has been used to review upwards the group's outlook for 2022, despite the COVID-19 context. Thus, net profit in 2022 will be in the range of €4 billion to €4.2 billion, compared to the €3.7- €3.9 billion initially foreseen. Gross investment will rise by 35% to €50 billion, compared to the €38-billion forecast, and efficiencies will rise to around €1.6 billion, exceeding the €1.2 billion forecast and maintaining the rating at BBB+/ Baa1 levels. Value creation, an opportunity for industry and employment Iberdrola’s investment programme for the next six years, the largest by a Spanish company, will contribute to boosting the industrial fabric and job creation in the countries where the group operates. During the presentation of the plan for 2020-2025, Ignacio Galán, the Chairman of Iberdrola, explained that "after 20 years of anticipating the energy transition, our business model positions us as a key agent in the transformation of the industrial fabric. With our experience, our engagement with society and our financial strength we are advancing a model for long-term sustainable economic growth capable of meeting the current challenges of society." Iberdrola will maintain the social market economy and the United Nations' Agenda 2030 as the cornerstones of its activity. Investments and procurement of goods and services from its more than 22,000 suppliers will contribute to sustaining up to 500,000 jobs worldwide by 2025. Also, nearly 20,000 new recruits will join the group during the period (more than 10,000 recruits and 30,000 jobs created by 2022). The company, which in 2019 alone contributed €8.2 billion in taxes to the countries where it operates, expects its fiscal effort to rise to €12 billion in 2025, with the annual average for the period [2020-2025] being €10.3 billion, a direct consequence of the greater activity required to deliver the plan. In a scenario of investment growth, shareholder remuneration will increase in line with results. The company has set up a growing floor of between €0.40 – €0.44 per share between now and 2025. The group will continue to implement its "Iberdrola Flexible Compensation" scheme with its corresponding buyback programmes, which avoid dilution of shareholders. The company maintains its dividend policy and the pay-out stays between 65% and 75%. Half of the organic investments, to renewables, mainly in Spain, UK and USA Iberdrola's historic investment plan for the 2020-2025 period will be mainly aimed at renewables - representing more than half (51%) of organic investments, some €34.68 billion - and networks, which will account for 40%, approximately €27.2 billion. The customer area will receive 9%. Investments are focused on countries with climate ambitions and an A rating. Investments amounting to €14.35 billion will be allocated to Spain, representing a 60% increase over the previous plan and 21% of the group's total. In this market, more than €7 billion will go to renewables and more than €4.5 billion to networks. The United States and the United Kingdom, for their part, account for €34 billion investment, 50% of the total. Other international areas are also being prioritized, with investments of more than €11 billion. 83% of total investment is aimed at countries with an A rating, in line with the company's strategy of investing in this type of market. Investments in renewables will enable Iberdrola to reach 60 gigawatts (GW) installed capacity in 2025, after hitting 44 GW in 2022. This will mean doubling current capacity while giving a major boost to offshore wind technology, with 4 GW at the end of the period. Offshore wind provides 5 times the EBITDA/MW compared to solar photovoltaic and 3 times that of onshore wind. The plan will also allow Iberdrola to grow in solar photovoltaic, with a forecast of 16 GW installed at the end of the period, and to reinforce its leadership in onshore wind and hydroelectric, with 26 GW and 14 GW installed in 2025, respectively. To deliver this plan, Iberdrola starts from a unique position, with one of the largest renewable energy project pipelines in the industry; a total of 70.5 GW distributed over its traditional areas (reinforced this year with new markets such as Australia, Japan and Sweden) and key technologies: 30.7 GW being photovoltaic; 20.2 GW offshore wind and 16.3 GW onshore wind. Currently, the company advances installation of 7 GW and would have up to 11 GW under construction in 2025. More investment in networks, 40% of the total, and a growing customer base Energy networks continue to be considered by the group as a key factor in the electrification of the economy and the reinvigoration of the territories. Thus, together with renewables, Iberdrola's model and strategy will continue to give weight to regulated assets. The company will allocate 40% of its organic investments to networks (€27 billion), bringing the group's regulated asset base to €47 billion euros by 2025, 1.5 times its current value. This figure includes investments in transmission, which will reach €4 billion. Iberdrola will continue to digitise its networks as a key element of smart grids that will ensure the massive incorporation of renewables. By the end of the period, Iberdrola will have installed more than 21 million smart meters and 83% of its assets will be in countries with an A rating. The progressive electrification of energy uses will allow Iberdrola to increase its customer base. By the end of 2025, the company will have 60 million supply contracts worldwide. The company will offer intelligent and innovative solutions both to residential (energy storage and heat pump, self-consumption and electric mobility) and industrial customers. Green hydrogen is becoming a strategic vector for industry. In line with European recovery programmes, the company plans to install 600 MW by 2025 (800 MW by 2027, together with Fertiberia) and produce 15,000 tons of renewable hydrogen. The first projects in Spain -in 2021 there will already be some capacity installed- will be completed with more initiatives in other countries, leading the development of a supply chain to support the implementation of new electrolyzer manufacturers while promoting alliances with other industrial groups. Despite the unprecedented pace of investment that the group will maintain over the coming years, Iberdrola expects to keep its credit ratings at BBB+/ Baa1 levels and its current debt ratios, supported by its ability to generate higher cash flows. The company’s financial sources are strongly diversified, which allows easy access to different markets and active liquidity management of between €15 billion and €22 billion. Iberdrola will maintain a flexible approach based on investment opportunities and financial ratios. In 2020, it has completed divestments of €4.6 billion – up from €3.5 billion scheduled for 2022 – and expects further divestments of around €3 billion between 2021 and 2025. In the presentation of the operational and financial outlook for the period 2000-2025 and, in line with the climate objectives in its key markets, the company has a ten-year horizon to 2030 by which it would increase its installed renewable capacity to 95 GW -multiplying its current onshore and solar wind capacity by 2.5 and offshore by 4.5- and its regulated assets to €60 billion at the end of this period, with its client base growing to 70 million contracts and green hydrogen production to 85,000 tons. Environmental and social targets in a changing global environment Over the past 20 years, Iberdrola has gone from being a local utility to becoming a global clean energy leader, with a fourfold increase in renewable capacity, growing EBITDA five times, net profit four times and a six-fold increase in market capitalization while reducing all along its CO 2 emissions by 75%, closing its coal plants and multiplying by three its shareholder remuneration. All of this was accompanied by an in-depth process of geographical diversification and strengthening of balance sheet. Thus, Iberdrola is in a unique position to tackle the global energy revolution, focusing on countries with ambitious climate and energy targets – this is the case of Europe as a whole, Brazil, the United States, Australia and Japan – and solid commitments to reducing emissions in the medium and long term, which will involve the commissioning of new renewable capacity, supported by more intelligent networks and backed up by storage systems. In this context, by 2025, the company will continue to strengthen its environmental, social and governance (ESG) pillars. With CO2/kWh emissions already two thirds lower than the European average, the investment strategy in clean energy and networks will lead Iberdrola to become a "carbon neutral" company in Europe by 2030 and to reduce its global CO2 emissions by 86%, to 50g/kWh, by the end of the decade (70g/kWh by the end of 2025). As an additional contribution, the company will plant 20 million trees by 2030 (8 million trees until 2025). Along with the continued reduction of carbon emissions, the company’s ambition embraces other areas, such as investment in R&D, which will amount to €400 million per year in 2025, compared to €330 million per year in 2022 and €280 million in 2019. Iberdrola will maintain its commitment to the creation of quality jobs and skills, increasing training hours per employee, which is already 4 times above the European average. It will also reinforce other commitments, such as gender equality - it raises its target to 30% of female managers from 20% today - and a pay gap of less than 2% by 2025. Iberdrola will continue to implement best corporate governance practices, reinforce its cyber security actions and ensure that at least 75% of its suppliers have sustainability policies in place by 2025. [1] Pending regulatory approval. READ MORE
-
05/11/2020“Iberdrola pledges €75 billion to capitalise on energy transition” The economic newspaper Financial Times published Thursday 5 November an article on the pledge made by Iberdrola to invest €75 billion over the next five years to double its renewable energy capacity and help it capitalise on the global move away from fossil fuels. Iberdrola chairman Ignacio Galán made this announcement during Capital Markets Day, held this Thursday, where he added that most of the €75bn would be spent on organic growth rather than acquisitions. According to Mr. Galán, Iberdrola’s renewables capacity will rise from 32 gigawatts last year to 60 GW in 2025, with 26 GW of onshore wind, 16 GW of solar and 14 GW of hydro. The remainder will be offshore wind. The company expects to increase its net profit to €5bn in 2025, from €3.4bn last year as a result of this growth. READ MORE
