ENVIRONMENTAL MANAGEMENT

We find an answer to environmental challenges and opportunities

Our model is based on a universal service, security and competitiveness, reduced CO2 emissions and energy efficiency.

Environmental Management, principles of action: respect for the environment, a single environmental management system for the entire Group, collaboration with stakeholders.#RRSSPrinciples of action of environmental management in the Iberdrola group.

A sustainable energy model must meet the following goals:

  • Economic objective, which can be summarised as the need for stable, safe and competitive energy supplies (supply security and guarantee).
  • Social objective, wich is focused in the access for all people to this essential service under affordable economic conditions (service competitiveness and universality).
  • Environmental objective, which translates to lower emissions and greater efficiency in the production and use of energy, as well as compliance with other environmental regulations.

ENVIRONMENTAL MANAGEMENT APPROACH

  • Principles of action

    Iberdrola's environmental strategy and management has been acknowledged in several international environmental indices. Amongst the most prestigious we may highlight the Dow Jones Sustainability Index, where Iberdrola has been selected in every index since the Index was founded, or the FTSE4Good Index. To make progress along these lines, the following basic principles are established:

    • The commitment of the Board of Directors of Iberdrola towards ensuring that the environmental policies approved become a reality, thereby making respect for the environment a strategic element. This commitment is realised by establishing a framework of action in which improvement and innovation projects are created, promoted, defined and developed. The different business areas of the company are necessarily involved in this progress, and every year the global environmental performance indicators reflect the improvement.
    • Permanent diagnosis is based on a single Environmental Management System for the entire group, underpinned by complete systems of certificates under different standards (ISO14001, EMAS, ISO14064), thus helping to reduce environmental risk. This reduction of environmental risk must always take place in compliance with applicable laws and the various international undertakings signed, as well as the company's internal standards. It would not be possible to comply with the requirements of these certifications without having systematic and continuous improvement in environmental management, thereby ensuring the coherence of the General System of Environmental Targets within the company's strategy.
    • Collaboration with the main Stakeholders (Public Administration, sector companies and suppliers) in both defining and implementing innovation projects, and in developing traction initiatives for the rest of supplier companies. Here we may highlight Iberdrola's direct participation in the Eco-efficiency in Basque companies program and in the recently-established Basque Ecodesign Center, with the aim of developing projects for the entire croup in the field of green mobility, ecodesign, making the supply chain more sustainable, developing new methodologies for the economic assessment of environmental impacts and energy efficiency.
  • Environmental Management System

    To respond to the company's international expansion and the diverse environmental impacts of its activities, in 2008 the Iberdrola group approved the Environmental Management System, with the aim of creating a common environmental framework, making it possible to coordinate the different plans and measures, respecting regional autonomy and specificities.

    Since then, shouldering our commitment to continual improvement and aiming to harvest the fruits of our corporate system's mission, vision and values, this shared system has been developed incorporating innovative environmental management actions that enable us to align the environmental dimension within the group's sustainability model, integrating the Sustainable Development Goals and articulating mechanisms to measure and evaluate the group's environmental performance from a life cycle perspective. This in turn allows Iberdrola to integrate the circular economy and natural capital into its management processes.

    The Iberdrola group's Environmental Management System comprises the following elements:

    Environmental Management System.

    Environmental Management System.

    Therefore, the Iberdrola group's Environmental Management System converts the corporate environmental policies into environmental guidelines. These environmental guidelines have been established throughout Iberdrola organisations as environmental goals and targets, including the allocation of responsibilities, resources and deadlines.

    The Environmental Guidelines, in line with the SDGs, that define Iberdrola's strategic lines, are:

    • To protect the environment and halt biodiversity loss.
    • To fight climate change and its effects.
    • To guarantee sustainable modes of production and consumption.
    • To strengthen alliances with Stakeholders for sustainable development.

    This management system affords very positive aspects, including:

    • Minimised environmental risks, thus improving the company's environmental management in line with its commitment to environmental protection.
    • Making the most of synergies between businesses and improving internal tools that simplify the procedures.
    • Improved training and greater awareness of environmental matters among the employees.
    • Improved environmental training for suppliers.
    • Strengthening of theexternal image.
    • Improved perception among investment analysts as a socially responsible company.

    Positive impact: minimised environmental risks, making the most of synergies, employee training and awareness, training for suppliers, external image, investment analysts as a socially responsible company.

    Iberdrola group has Environmental Management Systems (EMS) specific to the businesses and processes, based on the UNE-EN-ISO 14001:2004 and EMAS standard, distributed and implemented throughout much of their organizations, what are allowing for a reduction in environmental risks, improvement in the management of resources, and optimization of investments and costs. Net energy production under certified environmental management systems is shown in the table below:

    Net energy production under environmental management systems (%)
    COUNTRY 2017 2016
    SPAIN 97.4 98.8
    UNITED KINGDOM 93.2 94.7
    UNITED STATES 13.9 15.2
    MEXICO 35.5 35.7
    BRAZIL 98.2 96.7
    OTHER COUNTRIES 0.0 0.0
    TOTAL 80.0 82.4

     

    In Spain, there is an implemented and certified Environmental Management System [PDF] which meets the UNE-EN ISO 14001:2004 standard. This standard was renewed in 2015 by the Spanish Association for Standardisation and Certification (AENOR), providing for a reduction in environmental risks, improvement in the management of resources and optimization of investment and costs; and certification under the same standard is under way in 2018. This system incorporates the existing partial certifications for both thermoelectric and hydroelectric power plants and, in addition, the management of all the facilities of the Networks, Renewable Energy, Marketing of electricity and gas business areas in Spain and Portugal, and of the more than 200 company buildings.

    Most of the thermal power plants of the Liberalised Business belong to the EMAS European Eco-Management and Audit Scheme, regulated by European Parliament and Council Regulation (EC) No 1221/2009 on the voluntary participation by organisations in an EC eco-management and audit scheme (EMAS). This certification is renewed annually.

    In the United Kingdom, ScottishPower has an Integrated Environmental Management (EMS) certificate to Standard UNE-EN ISO 14001:2004 for both thermoelectric and hydroelectric power plants, renewable generation, distribution and transmission and corporate services. The affiliated companies Iberdrola Engineering and Construction U.K. and Iberdrola Engineering and Construction Networks LTD, have had a certification system in place since 2011.

    In the United States, for a further year the certificate has been renewed for the Klamath thermal plant. and Avangrid Networks to standard UNE-EN ISO 14001:2004. This latest one includes project management and engineering activities for the design, construction and commissioning of electricity and gas transmission and distribution assets, and the planning of gas assets.

    In Mexico there is environmental certification for all the generating plants and the cogenerator Enertek, to standard UNE-EN ISO 14001:2004, with a committee to coordinate and periodically revise the current and pending environmental activities.

    In Brazil, the combined cycle power station Termopernambuco has the environmental certification in accordance with standard UNE-EN ISO 14001:2004, also networks Elektro, Celpe and Cosern.

  • Environmental organisation

    To comply with the approved policies, the Iberdrola group has an organisation that deals with the environment in a decentralised manner.

    Decentralised management: senior management, innovation, environment, and quality division, environmental divisions at the businesses.

     Distribution of the environmental competences in the Iberdrola group [PDF]


    Applying the subsidiarity principle, all matters relating to the environment must thus be dealt with and resolved in each region by each affected business. As a result of this model, the environmental organisation of the company is structured in the following manner:

    • SENIOR MANAGEMENT: set and define the environmental policies, strategy, and organisation for the entire Group through the Board and the Management Committees.
    • INNOVATION, ENVIRONMENT, AND QUALITY DIVISION: proposes the policies, models and management systems, sets the environmental directives and goals associated therewith, reports on environmental performance, inventories the company's global emissions, proposes environmental activities, and coordinates all of the company's environmental activities. Finally, it manages the relationship with stakeholders (governments, businesses in the industry, environmental organisations, etc.).
    • ENVIRONMENTAL DIVISIONS AT THE BUSINESSES: they are responsible for maintaining the environmental management systems — mainly based on the ISO 14001 standard —, including compliance with legal obligations, setting the environmental goals of the business, making plans for improvement, and generally performing all operational duties relating to the environment within the scope of their business in each region.

    This entire organisation of the environmental area turns around Iberdrola's Environmental Management Model, the purpose of which is to create a common framework allowing for the coordination of the various environmental management systems of each of the businesses.

  • Environmental Stakeholders Relations

    As part of its strategy of relations with Stakeholders, Iberdrola develops a set of communication and dialogue channels with environmental interest groups. Through these means, Iberdrola communicate the objectives, actions taken and achievements of the company in this field, and to receive feedback and requests from the interested parties in the area of the environment.

    Iberdrola adresses priority matters for the environmental stakeholders through its strategy.

    COMMUNICATION AND DIALOGUE CHANNELS

    Environment suggestion box and e-mail - medioambiente@iberdrola.es, available on Iberdrola's intranet and extranet.

    • Surveys, meetings and other types of contact with different social groups.
    • Preliminary consultations and those resulting from public information in the infrastructure implementation processes.
    • Collaboration projects.
    • Third-party evaluations and ratings, including those by socially responsible investment analysts.
    • Environmental Forum made up of external experts and people with influence from fields such as environmental regulation in order to share points of view with external experts and external leaders in this field in order to obtain feedback on its efficiency and effectiveness.

    MATERIAL ISSUES

    As a result of internal and external analyses, Iberdrola has identified the following priorities issues for environmental Stakeholders and that responds through its strategy:

    • Strategies related to the future of energy sources.
    • Eco-efficiency.
    • Emissions that cause the greenhouse effect.
    • Waste.
    • Biodiversity.
    • Energy efficiency.
    • Setting objetives for environmental indicators.

    COLLABORATION

    In Spain, relations and/or collaboration projects are maintained with a variety of Administrations and social organisations. The list of actions included at the end reflects some of them. In the specific case of environmental NGOs, environmental projects have been carried out with the Spanish Ornithological Society (SEO/BirdLife), the Global Nature Foundation, the Tormes Foundation, the Naturgintza Foundation and the Urdaibai Foundation.

    Collaboration projects have also been carried out with institutions such as the Biodiversity Foundation and UNESCO (through Unesco –Etxea).

    In the United Kingdom, collaboration ties are maintained with several groups, such as the Scottish Natural Heritage, Natural England, Fisheries Boards, Royal Society for the Protection of Birds (RSPB), WWF, Friends from the Earth Scotland and Wildlife Trust.

    ENVIRONMENTAL ENTITIES IN WHICH IBERDROLA PARTICIPATES

    International entities

    Spanish entities

    Entities in the United Kingdom

  • Information coverage

    The information included on the website takes into account the expectations of the environmental groups with which the company has contact, and is focused on the main environmental matters that affect Iberdrola's activity.

    All the information provided on both environmental strategy and management, and performance indicators is related to the activities carried out by the companies managed directly by Iberdrola and separately by other group companies — subsidiaries —, with more attention given to the former.

    A Control Panel for the correct management of environmental indicators has been developed at group level. The assessment of the group's environmental performance and ongoing improvement is handled through the environmental Control Panel and the results of the Corporate Environmental Footprint, which make it possible to analyse environmental behaviour globally and by business, thereby facilitating decisions on environmental improvement projects for the whole group. This control panel is the element of the system that determines the quality of the established environmental strategy, defines mitigation criteria for environmental risk for the group, serves to calculate the value generated by the strategy and, specifically, provides coherence to the global system by guaranteeing the convergence of the group's strategic environmental goals with the specific ones for each business area.

    The aim is to ensure that the information published is relevant and comprehensive, and the stakeholder groups have response capacity. That's why we offer them our Environment Mailbox, medioambiente@iberdrola.es for any suggestion, question or clarification on the environmental information posted on the website.

    The information on the performance indicators reflects the company's environmental results as regards the production facility indicators:

    PRODUCTION FACILITY INDICATOR COVERAGE

    The activities taken into account in order to determine the information boundaries in the environmental dimension are those carried out by Iberdrola in those countries in which the company's presence is more significant in terms of sustainability. Information is updated annually in the Sustainability Report in point "G4-17 Entities included in the organisation's consolidated financial statements and in the boundary of this report".

    In these countries the same procedures and processes that are applied in the group are guaranteed and, therefore, so are all of the resulting labour guarantees, fundamental rights and environmental protection guarantees.

    Iberdrola promotes sustainable development policies similar to those applied in the group in the companies in which it holds a share (investee companies). These companies describe, as applicable, their sustainability policies and actions in their own public communications and on their corporate websites. The environmental aspect of the information regarding these companies that is available online covers the investee companies that are most important to the group in terms of sustainability, the ones active in the production, distribution and sale of electricity and gas.

    Due to their significance and materiality, the aforementioned boundaries include:

    • Nuclear plants in which the company has an interest (joint property entities that own the Trillo/Almaraz and Ascó/Vandellós nuclear plants, and NUCLENOR, S.A.).
    • The most significant activities carried out by the Brazilian group Neoenergia, engaged in the generation, distribution, and retail supply of energy, which activities are conducted through Neoenergia, S.A. and its subsidiaries: the distributors Coelba, Cosern, and Celpe and the generation companies Itapebi, Afluente, and Termopernambucoand the interest in the Brazilian generation companies Energyworks Brasil, Ltda. and Capuava Energy, Ltda.

    Also included within the environmental boundary is the information regarding the interest in the Spanish combined cycle plant owned by Bahía de Bizkaia Electricidad, S.L. and regarding the Brazilian Bahia, Rio, Goiás Sul, Corumbá, Baguari, and Dardanelos hydroelectric plants owned by the Neoenergia Group.

    Type of commercial activity: LIB: activities in liberalised markets, independently of distribution activities. REG: activities in regulated markets, along with distribution activities. Supplying these markets has not been considered a wholesale activity.