Supplier's code of conduct

Transparent business ethics and management principles

Our suppliers are a strategic stakeholder group, which is why we have established a Code of Conduct for Suppliers that sets out specific principles of conduct for their area of activity, aligned with the values and principles of the Group.

The Code of Conduct for Suppliers [PDF] reflects our commitment to business ethics and transparency across all areas of operation. It outlines a set of principles and guidelines aimed at ensuring the ethical and responsible behaviour of all Iberdrola Group suppliers, as well as other parties involved in the supply chain.

This Code of Conduct must be accepted by the Group’s suppliers and will be annexed to their respective contracts.

A summary of the Code of Conduct for Suppliers is available in the following brochure:

Whistle-blower channel

Ethics and transparency are one of the essential pillars of the Iberdrola Group. We promote both values in our relations with our suppliers and in the relations that they maintain with their business partners. We therefore provide them with a channel through which they can report irregular conduct, unlawful acts, or acts contrary to the law or to the Governance and Sustainability System that refer to or affect the scope of activity of the companies of the Iberdrola Group.

You can make your claim via the following link:

In addition, you can make queries or suggestions regarding the Code of Conduct for Suppliers via the Query Mailbox.

Our compliance system

Our Compliance System reflects the Iberdrola Group’s commitment to all our stakeholders to carry out all our activities in accordance with current laws and regulations, as well as the highest ethical standards and values.

Its ultimate goal is to ensure the application of the Code of Conduct for Directors, Professionals and Suppliers, and to establish clear criteria and guidelines for the development of professional and ethical behaviour.

In order to promote a culture of ethics and integrity throughout the organisation and among our stakeholders, we define what a Compliance System is and outline the key elements it must include to ensure its effectiveness.

What are the elements that should make up an effective Compliance System?

Risk assessment

  • One of the main parts of the Compliance System is the existence of a process of regular and continuous identification and assessment of compliance risks in each of the corporate functions and in the companies of the Group, including the risks of conduct that could constitute a crime or an improper act associated with the activities carried out by the organisation. The assessment includes the evaluation of the likelihood of the materialisation of each risk and the impact that such materialisation would have, as well as the effectiveness of the controls aimed at mitigating them.

Policies and procedures

  • The organisation has the necessary rules and policies of the Governance and Sustainability System in place to prevent and mitigate the risks identified, as well as providing professionals with guidelines for conduct.
     
  • The compliance systems of the companies of the Group are structured on the basis of: (i) regulations approved by the Board of Directors of Iberdrola, S.A. (as an integral part of its Governance and Sustainability System); (ii) regulations approved by its own management decision-making body; and (iii) rules or provisions developed and approved by each compliance unit through the powers given to it by its respective Regulations.
     
  • The regulations are updated periodically and are monitored by the compliance units to assess their preventive potential.

Communication

  • Dissemination and communication of ethical principles is another essential element of the Compliance System. The main objectives, as established in the Global Communication Plan, are as follows:
    • Ensure that professionals perceive the value that the compliance activities represent for them on a personal level.
    • Raise awareness among professionals of the most relevant risks associated with their professional activity and the regulations or recommendations to minimise them.
    • Promote the participation of professionals in the Compliance activities that require it.
    • Encourage the participation of executives and middle management in transmitting the compliance culture to their teams.
    For communication, the different tools and channels available are used, selecting the most effective ones according to each case.

Training

  • Training is one of the cornerstones of the compliance function and of the knowledge of and compliance with the Code of Conduct by all professionals in the Group's companies. The training strategy is based on global training initiatives for the professionals of the Group's companies on compliance issues of a general nature and applicable to the majority of the workforce. Additionally it develops specific training plans aimed at certain groups of professionals specific compliance risks have been identified for.

Monitoring

  • The management decision-making bodies of the companies of the Group are responsible for monitoring the effective implementation of the Compliance System in their respective companies.
     
  • The monitoring activities are aimed at establishing detection and control mechanisms to verify the effectiveness of the preventive measures implemented, as well as to enable continuous improvement of the compliance systems.
     
  • The key to detecting irregular conduct is the internal reporting system established at the Company and the other companies of the Group.
     
  • The Group's internal reporting channels are tools made available to all shareholders, directors, professionals, suppliers, and other third parties as determined by law to report conduct that may involve the commission of any potentially improper conduct or an act that is potentially illegal or contrary to law or to the Governance and Sustainability System.
     
  • In all cases, the Group is firmly and expressly committed to prohibiting retaliation against those who make use of those internal channels, except in cases of bad faith.
     
  • In addition, compliance systems are subject to regular audits and reviews by Internal Audit and independent third parties, and action plans are put into place to adopt the proposed recommendations.

Reaction

  • Internal reporting channels are an essential source of information for identifying improvements in compliance systems and additional prevention and control mechanisms.
     
  • In addition, as a result of audits and periodic reviews of compliance systems, action plans are established to adopt the proposed recommendations.