SDG 8: DECENT WORK AND ECONOMIC GROWTH

Iberdrola, an engine for prosperity and economic and social development

#economy #employment #social transformation #business

Iberdrola group acts as a motor for economic and social development by creating stable and quality employment. The company annually generates over €31.1 bn in GDP in the countries where it operates and in 2020, despite the outbreak of COVID-19, it has committed to invest €10 bn, hire 5,000 new staff and maintain agreements with its suppliers.

OUR CONTRIBUTION TO SDG 8: DECENT WORK AND ECONOMIC GROWTH

The value created at the global level by Iberdrola's strategy and business model over time translates into economic and social development:

 An impact of over €31.1 billion on the GDP in the countries where it operates and more than €14 billion in tax contributions in 2019 (including its own and collected taxes)1.

 Iberdrola has committed to invest €10 bn in 2020, twice as much as in the last five years, contributing to reviving the economy and employment. At the close of the first half of 2020, the company increased its investments to €3.582 bn.

 €20 bn in purchasing volume in 2019 (including energy raw materials)1. So far in 2020, Iberdrola has placed forward orders with suppliers for almost €7 bn. The group has more than 22,000 suppliers throughout the world and has agreements in place until 2023 worth more than €20 bn.

 35,120 direct jobs1, out of a total of 400,000 posts2 globally (including direct, indirect and induced).

 In 2019, 3,500 new workers were taken on, including 1,700 young people under 301. In 2020, the company expects to hire another 5,000 new professionals.

 99 % of the workforce have fixed contracts1.

 We encourage a good work/family life balance for our employees and implement a number of measures to support their quality of life.

 We promote diversity and inclusion at work.

 We back training and the development of talent: in 2019, the group achieved 55 training hours per employee1.

 We offer a safe and healthy working environment, with continuous improvements in all areas related to the management of occupational risk prevention.

 With the outbreak of COVID-19, Iberdrola activated a global action plan against the pandemic, focused on the health and safety of its workers and all its Stakeholders (SDG 3), guaranteeing the electricity supply and maintaining its commitment to the creation of value for society.

 Iberdrola's international Startup Programme, PERSEO, financed with €70 million, facilitates the company's access to the technologies of the future. In addition it supports the creation of a global and dynamic ecosystem of technology companies and entrepreneurs in the electricity sector.

1 Data at the close of 2019. See our annual reports.

2 Data from Iberdrola Impact Study carried out by PwC for the 2018 financial year.

 

Creating value
for society

WHAT IS SUSTAINABLE DEVELOPMENT GOAL 8: DECENT WORK AND ECONOMIC GROWTH?

SDG 8 seeks to promote inclusive and sustainable economic growth as well as employment and decent work for all. This means keeping economic growth per capita in line with national circumstances and bringing about GDP growth in less-developed countries of at least 7 % annually. It is also necessary to promote policies that support productive activities and the creation of decent jobs, entrepreneurship and innovation.

WHY IS IT SO IMPORTANT TO ACHIEVE SDG 8: DECENT WORK AND ECONOMIC GROWTH?

Eradicating poverty will only be possible through stable and well-paid employment. So it is vital to promote full and productive employment and decent work for everyone the world over. This will achieve the promotion of sustained, inclusive and sustainable economic growth like that created by green jobs.

After the 2009 global recession, global work productivity began to increase and unemployment rates improved (though with major regional differences). However, a decade later, in 2019, the world economy achieved its lowest growth rate since the 2008-2009 period.

As if that was not enough, this scenario has been acerbated by the outbreak of COVID-19. The pandemic has led to a slow-down in the economy and is shaking labour markets the world over. This is taking its toll particularly among casual workers, the self-employed and those paid on a daily basis. According to the Report on Progress with Compliance with the SDGs (2020), we are heading for the biggest increase in global unemployment since the Second World War. And the threat goes further, since it could increase the risk of child labour.

The 7 % GDP growth target for the least developed countries had not been reached before the pandemic. In fact the actual GDP growth rate per capita was 2 % in 2018 (the same level as the average annual growth rate between 2010 and 2018). In 2019, the growth rate fell to 1.5 % and, with the coronavirus, it is expected to plummet to 0.8 % in 2020, until it finally manages to achieve a rate of 4.6 % in 2021.  

As for the labour productivity growth rate, this reached 1.6 % in 2018 and 1.4% in 2019, but there were very considerable regional differences: while labour productivity fell in Latin America and the Caribbean, Western Asia, and Sub-Saharan and North Africa it rose in all the other countries, fairly quickly in East, South-East, Central and Southern Asia.

In 2019 the unemployment rate was at 5 % globally (in North Africa and Western Asia 11 % of the active population was unemployed) and the pandemic is expected to send it rocketing. No workers will be harder hit than those in the informal economy (in 2016, 61 % of workers worldwide were in casual labour). It is thought that half of the active global population (some 1.6 billion workers in the informal economy) will be significantly affected in the wake of the COVID-19 pandemic. It is estimated that the income of these workers fell by 60 % in the first month of the coronavirus crisis (rising to 81 % in some areas).

If health and safety at work was a significant challenge before the appearance of COVID-19, it is now much more so since some workers are exposed to unnecessary risks. Since 2010, more than 10 work-related deaths per 100,000 workers have been reported, in nine of the 71 countries with data available since 2010.

Facing the current situation and reversing the trend that these data reflect has become a primary objective at the international level. This is why promoting decent, inclusive and sustainable work became SDG 8 of the 17 UN Sustainable Development Goals, approved in September 2015 as part of 2030 Agenda.

Iberdrola aligned with the sdg

Keys to understanding labor inequality in the world

Who does it affect?

More than 630 million workers worldwide still live in conditions of extreme or moderate poverty
Around 2 billion workers are employed casually

In 2019, the proportion of women in the workforce was only 47 %, 27 points below the male rate (74 %)

How is this distributed around the world?

The 10 countries with the lowest Human Development Index — and therefore the greatest inequality in all areas — are concentrated in sub-Saharan Africa:

1

0,8

0,6

0,4

0,2

0

Central African
Republic

Niger

Chad

Burkhina Faso

Burundi

Guinea

South Sudan

Mozambique

Sierra Leone

Eritrea

Main causes

Current tax policies, which lead to a reduction in the income of the population; corruption and illicit capital flows; the concentration of wealth; unequal access to education; working poverty, which is slowly decreasing; the growing wage gap; and inequality of employment opportunities.

How can we put an end to it?

We must promote more equitable access to education and well-paid jobs; put in place a global financial register to limit tax evasion; end the extreme concentration of wealth.

 

 SEE INFOGRAPHIC: Keys to understanding labor inequality in the world [PDF]

SDG 8 TARGETS: DECENT WORK AND ECONOMIC GROWTH

The specific targets set for 2030 are:

  • Achieve full and productive employment and decent work for all, including young people and the disabled, as well as equal pay for work of equal value.
  • Eradicate forced and child labour and protect labour rights.
  • Adopt tax, salary and social protection policies and progressively achieve greater equality.
  • Protect labour rights and promote a safe and risk-free working environment including for migrants (especially women).
  • Improve the efficient production and consumption of the world's resources and decouple economic growth from environmental degradation.
  • Ensure greater representation of developing countries in decisions taken by international economic and financial institutions.