Integrated
Report
March 2025
Integrated Report 2025
2
Integrated Report 2025
Letter from the Chairman
In a context still marked by geopolitical tensions
and volatility, 2024 saw the consolidation of all
the foundations of the project for growth and
sustainable creation of value that we have been
building for more than two decades.
The energy crisis experienced in Europe due
to dependence on fossil fuels has shown that
electrification is the most effective way to
guarantee security of supply, reinforce energy
autonomy and strengthen competitiveness while
protecting the natural environment. In addition, the
massive application of advances in digitalisation
and artificial intelligence will add a new source of
growth in electricity demand to those generated by
other technological advances, from heat pumps
for air conditioning in buildings and industry to
electric vehicles in transport.
We have once again anticipated this scenario
by beating our investment record in 2024, with
more than EUR 17 billion invested, two-thirds of
which went to the UK and the US, both in organic
growth and in the acquisitions of the UK distributor
Electricity North West and the 18% we did not
previously own in our US subsidiary, Avangrid.
As a result of these two transactions and the
activity carried out in all our markets, network
infrastructures have been the main focus of our
investments, with EUR 11.2 billion invested,
more than doubling the investments of the
previous year.
Through these investments we have continued to
expand, strengthen and digitalise our distribution
networks in the United States, the United Kingdom,
Spain and Brazil, and we are constructing major
transmission projects, such as the Eastern
Green Link submarine power line, which will link
England to Scotland across the North Sea, and
the NECEC project, which will transport electricity
from Quebec to Massachusetts.
Investments in renewable energy and storage
reached EUR 5.5 billion, mainly in offshore wind,
a technology used in the offshore wind farms
completed in Saint Brieuc, in France, and Baltic
Eagle, in Germany, while we have continued to
build Vineyard Wind in the United States and
East Anglia THREE in the United Kingdom.
We have also commissioned pumped hydro
storage facilities at Alto Tâmega in Portugal and
Valdecañas and Valparaíso in Spain, as well as
dozens of onshore wind and solar projects in
several countries.
This unprecedented investment effort has also
led to a record net profit of EUR 5,612 million,
up 17%, which will enable the Board of Directors
to propose a 15% increase in the dividend to
EUR 0.635 per share at the upcoming General
Shareholders’ Meeting.
In line with this growth and our future outlook,
Iberdrola’s market capitalisation in 2024 also
reached an all-time high of EUR 90 billion,
consolidating our position as the largest electricity
company in Europe and one of the two largest in
the world today.
Commitment to the social dividend
But, as we have shown throughout our century-
long history, any expansion in Iberdrola’s
business activity must translate, in addition to
quality service for our customers, into the creation
of well-being, wealth and employment for millions
of people in all locations where we do business.
This commitment, which is shaped through
the concept of social dividend, materialised in
more than 6,000 new professionals joining our
workforce, which now exceeds 42,200 people,
in 2024; making purchases worth EUR 18
billion from thousands of suppliers who employ
more than 500,000 professionals worldwide;
and contributing EUR 10.3 billion to the public
coffers of all the countries in which we have a
presence, making a fully responsible contribution
to maintaining public services.
In addition, we have stepped up our commitment
to innovation in order to anticipate trends and
improve our technology and processes to respond
to the new needs of our customers. The EUR 400
million invested in this area has again made us
the private electricity company that invested the
most in R&D in the world in 2024, according to the
European Commission.
This commitment to continuous improvement has
also led us to reduce our CO2 emissions yet again
this year, to just 38 grams per kWh in Europe, five
times lower than the industry average.
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Integrated Report 2025
In terms of talent, we have continued to promote
initiatives aimed at training our workforce, with 74
hours of training per employee per year. We have
also further strengthened our training programmes,
from the International Master Scholarship
Programme to the Brazilian Electrician Schools,
which have been recognised at the Davos Forum
for their efforts to create true equal opportunities
through the integration of women in a sector
traditionally dominated by men.
And we can proudly say for another year that
the strong growth of our corporate volunteering
programme has continued: in 2024, 22,700
employees and family members dedicated their
free time to projects in education, sustainability
and support for local communities, strengthening
their social fabric and improving their quality of life.
However, if anything characterised the past
financial year, it was the impeccable conduct
of Iberdrola’s men and women in emergency
situations in various countries. The storms that
affected different regions in the United States, the
United Kingdom, Brazil and Spain, in particular
the DANA suffered in Valencia, were the scene
for the professionalism, dedication and generosity
of so many of our colleagues who helped restore
electricity service as quickly as possible. In
Valencia, while supply was being restored, we are
already working on the Il-lumina Plan, to which we
will allocate EUR 100 million to rebuild damaged
infrastructure and reduce the vulnerability of the
grid to future contingencies or climate events.
Outlook for 2025:
electrifying the future
We are therefore moving into 2025 with a solid
business position and fully faithful to the values
and social commitment that have guided us from
the outset. These are the best foundations to
face a future characterised by the consolidation
of electrification as a major trend that will
transform the energy system and drive growth,
competitiveness and employment.
According to the International Energy Agency,
global electricity demand is expected to increase
by an unprecedented 4% per year over the next
three years, reaching 3,500 TWh in 2027. This will
add the equivalent of consumption in Japan every
year as a result of increased electricity use in
industrial production, air conditioning, transport,
data storage and artificial intelligence.
In order to take advantage of the opportunities
this scenario presents in all our markets, in 2025
we plan to invest EUR 12.5 billion to develop
additional electricity grids, expand our renewable
capacity and commission new energy storage
facilities.
The corporate transactions completed in 2024
will allow us to accelerate our growth in regulated
network businesses, especially in the UK and
the US, where we also expect a strong increase
in organic investments in transmission and
distribution.
With regard to generation, we will continue to
make progress on our offshore wind projects in
Germany, the UK and the US, where we expect to
complete construction of the Vineyard Wind farm,
and we will commission new capacity in onshore
wind and solar technologies.
At our next Capital Markets Day, which will
take place in September, we will provide all the
details on the Group’s operational and financial
projections for the coming years, in which we
expect to consolidate our global leadership through
sustained growth in earnings and dividends and
by maintaining our financial strength.
And, of course, we will continue to be a driving
force for progress, modernisation, investment
and commitment, as we have demonstrated
throughout our history. Just a year away from our
125th anniversary, Iberdrola is facing 2025 with
the same determination that has always guided
us to create a fairer, more fraternal, supportive
and sustainable world for the benefit of all.
Ignacio S. Galán
Chairman
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Integrated Report 2025
Table of Contents
A global leader ����������������������������������������������������������������������������������������������������������6
Iberdrola today����������������������������������������������������������������������������������������������������������9
Purpose and values ���������������������������������������������������������������������������������������������������������������������10
Activities ���������������������������������������������������������������������������������������������������������������������������������������12
Company performance�����������������������������������������������������������������������������������������������������������������14
Key figures�������������������������������������������������������������������������������������������������������������������������������������16
International presence �����������������������������������������������������������������������������������������������������������������22
Milestones in 2024�������������������������������������������������������������������������������������������������������������������������36
Comparative results and recognitions���������������������������������������������������������������������������������������38
Business model and strategya������������������������������������������������������������������������������42
Business model�����������������������������������������������������������������������������������������������������������������������������43
Activities ���������������������������������������������������������������������������������������������������������������������������������������45
Finance�������������������������������������������������������������������������������������������������������������������������������������������53
Innovation �������������������������������������������������������������������������������������������������������������������������������������63
Sustainable business�������������������������������������������������������������������������������������������������������������������67
Sustainable value chain������������������������������������������������������������������������������������������81
Supply chain ���������������������������������������������������������������������������������������������������������������������������������82
Products and services for our customers ���������������������������������������������������������������������������������86
Nature and efficient use of resources��������������������������������������������������������������������89
Circular economy and efficient use of resources���������������������������������������������������������������������91
Biodiversity�����������������������������������������������������������������������������������������������������������������������������������93
Human and social capital����������������������������������������������������������������������������������������95
Commitment to human rights and just transition ���������������������������������������������������������������������97
Our people�����������������������������������������������������������������������������������������������������������������������������������103
Support to local communities ���������������������������������������������������������������������������������������������������107
Fiscal responsibility�������������������������������������������������������������������������������������������������������������������110
Corporate reputation�������������������������������������������������������������������������������������������������������������������113
Ethics, transparency and good governance ������������������������������������������������������114
Governance and Sustainability System�����������������������������������������������������������������������������������115
Corporate governance���������������������������������������������������������������������������������������������������������������116
Comprehensive Risk Control and Management System���������������������������������������������������������124
Risks���������������������������������������������������������������������������������������������������������������������������������������������127
Internal audit�������������������������������������������������������������������������������������������������������������������������������128
Ethics and integrity���������������������������������������������������������������������������������������������������������������������130
Cybersecurity and information privacy�������������������������������������������������������������������������������������132
About this report����������������������������������������������������������������������������������������������������134
About this report�������������������������������������������������������������������������������������������������������������������������135
Iberdrola’s public information���������������������������������������������������������������������������������������������������139
Glossary of terms and abbreviations���������������������������������������������������������������������������������������140
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Integrated Report 2025
A global leader
The Iberdrola Group is a global leader in clean energy, networks and storage. A company that is now
stronger, more sustainable and more diversified than ever.
Iberdrola has been at the forefront of progress in the energy sector for more than two decades,
developing a business model that focuses on investments in networks, the promotion of higher-value
renewables, the expansion of storage capacity and the optimisation of the customer portfolio for the
benefit of all.
The Group supplies energy to almost 100 million people in dozens of countries, employs more than
42,200 people, and has assets in excess of EUR 160 billions as at 31 December 2024.
Iberdrola in the world
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A global leader |
Integrated Report 2025
Key performance indicators in 2024
| More than 42,200 employees
| Jobs in our value chain:
over 500,000 people (3)
| 100 million customers served
| Gross investment of € 17,000 M
| Net profit of € 5,612 M
| Total dividend of € 0.635 /Share (1)
| € 49,000 M of RAB (2)
| New renewable installed capacity of
2,600 MW
| Emissions of 38 gCO2/kWh in Europe,
5 times lower than the industry average
| 84% emission-free installed capacity
| € 18,000 M in purchases from suppliers
| Tax contribution of € 10,300 M
| Contribution to society of € 56.7 M:
foundations and others
| More than € 400 M for investment in
innovation
1,294,765 Km
of electricity grids
238,164 GWh
Distributed Electricity
56,668 MW
of total installed
capacity
132,499 GWh
of net production
Country Subholding Companies
(1) Proposal subject to the approval of the final dividend by the General Shareholders’
Meeting and excluding the engagement dividend.
(2) Considering organic investments and acquisitions of ENW & AGR.
(3) PwC study “Economic, tax, social and environmental impact of the Iberdrola Group
worldwide” (prepared with 2023 data)
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A global leader |
Integrated Report 2025
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Iberdrola today |
Integrated Report 2025
Iberdrola today
Purpose and values
Activities
Company performance
Key figures
International presence
Milestones in 2024
Comparative results and recognitions
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Integrated Report 2025
Purpose and values
The Iberdrola Group is an agent and driver of sustainable development. Therefore, the corporate
purpose addresses the needs of the present and the future to respond to major economic, social
and environmental challenges, reflecting the expectations of Stakeholders and defining the Group’s
role as an agent of social change and transformation in the energy sector.
“Continue building, every day and together, a more electric,
healthy and accessible energy model”
This purpose guides the Group to:
Create shared
value for all our
stakeholders
Increase our
social dividend
Practise
Corporate Social
Responsibility
A purpose aligned with sustainable development:
• A real and global energy transition based on the electrification of the energy sector, in particular,
and the economy as a whole, in general, contributing to the fight against climate change and to the
generation of new opportunities for sustainable development.
• An energy model based on electricity, which abandons the use of fossil fuels and spreads the use
of renewable energy sources, efficient energy storage, smart grids and digitalisation.
• An energy model that is healthier for people, whose short-term health and well-being depends on
the environmental quality of their surroundings.
• The drive towards more accessible overall well-being for everyone and towards creating a society
that favours inclusion, equality, equity and development.
• An energy model built in partnership with all the agents involved and with society as a whole, which
provides safe, competitive and autonomous energy and electricity.
10
Iberdrola today |
Integrated Report 2025
To achieve this purpose, the Iberdrola Group has condensed the values of the Group’s companies
into the following concepts:
Sustainable
energy
Integrating
force
Driving
force
To create
value
We strive to serve as an
inspirational model for the
present and the future,
creating economic, social
and environmental value
through:
To grow
talent
Because we use our strength
and responsibility to unite diverse
talent around a common corporate
purpose. We are committed to:
To evolve
without rest
We make significant differences
to improve people's lives through
efficiency and demanding
standards. We are committed
to continuous improvement and
therefore rely on:
Safety
Responsibility
Transparency
Innovation
Effort
Simplicity
Anticipation
Equal
opportunities
Empathy
Dialogue
Solidarity
Ethics
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Iberdrola today |
Integrated Report 2025
Activities
(1) As at 31 December 2024
(2) The 2024 figure is final, whereas the figure for 2023 is from the initial project files (estimated km).
World leader in smart grids
Electricity transmission and
distribution.
Building, operating and maintaining
lines, substations, transformer
stations and other infrastructure
to bring electricity from production
centres to end users and to
incorporate distributed generation.
Total electricity networks(1)
20,262 km
of overhead
transmission lines
1,213 km
of underground
transmission lines
1,071,034 km
of overhead
distribution lines
202,060 km
of underground
distribution lines
196 km
of undersea transmission lines (2)
1
Leaders in clean energy
Renewable electricity generation
(onshore and offshore wind, photovoltaic
and hydroelectric), as well as other energy
sources.
Large-scale storage, through pumped
hydroelectricity, and in other battery-based
generation assets.
Technologies such as green hydrogen
(generated from clean sources of energy).
Construction, operation and maintenance
of all power generation facilities.
2
Kilometres of lines
57%
13%
9%
21%
1,294,765
Km
Spain
United Kingdom
United States
Brazil
2
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Iberdrola today |
Integrated Report 2025
Electricity production (1)
5%
11%
18%
66%
126,344
GWh
Solutions and service
for our customers
Supply of electricity to
end users.
Energy products
and services for
our customers:
with intelligent and
innovative (Smart)
solutions in the following
areas:
| Residential
with services like
energy storage,
heat pumps, self-
consumption, electric
mobility, solar, etc.
| Industrial
offering
comprehensive
management of energy
facilities and supplies,
like Green H2,
industrial heat, etc.
3
Consumers (2)
1%
46%
9%
12%
31%
36
million
Renewable
Nuclear
Combined cycle
Cogeneration
Spain
United Kingdom
United States
Brazil
IEI
1
3
(1) The percentages have been calculated based on own production
(2) Consumers; for electric power, total number of customers is used where there are areas of electricity distribution and retail, and supply points are
used for the other areas. For gas: the total number of gas customers is used, except for the United States, where the total number of supply points is
included. Electricity and gas customers of the IEI segment depend on Iberdrola Clientes Internacional, S.A., a subsidiary of the country subholding
company Iberdrola España, S.A. ** There may be differences between the totals due to rounding
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Iberdrola today |
Integrated Report 2025
Company performance
EBITDA (€M)
10,038
12,006
13,228
14,417
16,848
2020
2021
2022
2023
2024
Net profit (€M)
3,611
3,885
4,339
4,803
5,612
2020
2021
2022
2023
2024
Total assets (€ billion)
122.5
141.8
150.1
150
158.3
2020
2021
2022
2023
2024
Networks Business asset base (€ billion)
31.1
33.2
39.2
42.2
45.4
2020
2021
2022
2023
2024
Distributed electricity (TWh)
225.0
237.8
235.5
233.7
238.2
2020
2021
2022
2023
2024
Net production (TWh)
123.5
129.3
125.5
128.7
126.3
2020
2021
2022
2023
2024
Total installed capacity (MW)
47,965
51,174
53,615
55,737
56,668
2020
2021
2022
2023
2024
Own emission-free installed capacity (%)
79
81
80
81
84
2020
2021
2022
2023
2024
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Integrated Report 2025
Consumers (millions)
35.9
35.6
36.4
36
36
2020
2021
2022
2023
2024
Employees
37,127
39,955
40,721
42,276
42,208
2020
2021
2022
2023
2024
Own specific CO2 emissions (t / GWh)
98
96
83
77
65
2020
2021
2022
2023
2024
Water use vs. overall
production (m3 / GWh)
593
531
470
473
464
2020
2021
2022
2023
2024
(1) Rate of recordable work-related injuries = Number of recordable work-related injuries (except first aid) / Number of hours worked x [1,000,000]
(2) Cumulative millions of euros
Rate of work-related injuries
(own workforce) (1)
4.49
3.90
3.65
3.23
3.17
2020
2021
2022
2023
2024
Purchases from sustainable suppliers (%)
52
80
91
90
93
2020
2021
2022
2023
2024
Number of volunteers
10,409
12,222
16,877
20,495
22,783
2020
2021
2022
2023
2024
Contribution to society
B4SI (€M) (2)
597
655
707
759
816
2020
2021
2022
2023
2024
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Integrated Report 2025
Key figures
(1) Total gross organic investment. Considering inorganic investments (ENW + Avangrid + Others), total investment amounts to €16,879 M
Financial performance
Financial performance (€M)
2020
2021
2022
2023
2024
Δ annual
average
2020-2024
(%)
Revenue
33,145
39,114
53,949
49,335
44,739
7.8
Gross margin
16,145
17,062
20,199
23,302
23,876
10.3
Gross Operating Profit (EBITDA)
10,038
12,006
13,228
14,417
16,848
13.8
Amortisation/depreciation and provisions
(4,227)
(4,474)
(5,244)
(5,444)
(7,119)
(13.9)
Net Operating Profit (EBIT)
5,564
7,343
7,984
8,973
9,729
15.0
Financial income
(991)
(1,003)
(1,838)
(2,187)
(1,575)
(12.3)
Profit/(loss) from equity accounted investees
and net income from discontinued operations
(net of tax)
461
(74)
75
218
(56)
--
EBT and net profit from discontinued
operations (net of tax)
5,034
6,266
6,221
7,004
8,098
12.6
Corporate income tax
(1,083)
(1,914)
(1,161)
(1,610)
(2,150)
(18.7)
Minority interests
(341)
(467)
(721)
(591)
(336)
0.4
Net profit
3,611
3,885
4,339
4,803
5,612
11.7
Total assets
122,518
141,752
150,114
150,033
158,293
6.6
Shareholders’ equity
47,219
56,126
58,114
60,292
61,051
6.6
Gross investments
9,246
9,940
10,730
11,382
11,946(1)
6.6
Funds from Operations (FFO)
8,292
8,993
11,123
11,096
11,836
9.3
Adjusted net bank borrowings
35,142
39,119
43,749
47,832
51,672
10.1
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Integrated Report 2025
Financial ratios
2020
2021
2022
2023
2024
Δ annual
average
2020-2024
(%)
EBITDA margin
(EBITDA/Revenue) (%)
30.3
30.7
24.5
29.2
37.7
5.6
Net Profit Margin
(Net Profit/Revenue) (%)
10.9
9.9
8.0
9.7
12.5
3.5
Net Operating Expense/Gross Margin (%)
26.5
24.8
25.8
26.3
25.5 (1)
(1.0)
Adjusted Net Financial Debt/
adjusted EBITDA (times) (2)
3.5
3.2
3.3
3.3
3.4
(0.7)
Adjusted net leverage (%)
42.3
41.0
42.8
44.2
45.4
1.8
Adjusted Funds from Operations
(FFO)/Adjusted Net Financial Debt (%)
23.6
23.0
25.4
23.2
22.9
(0.7)
Adjusted Retained Cash Flow (RCF)/
Adjusted Net Financial Debt (%)
21.4
20.6
22.0
18.9
19.4
(2.4)
ROE (Net profit for the last four quarters/
Average equity) (%)
9.7
9.8
10.2
10.9
11.9
5.2
Stock Market Data
2020
2021
2022
2023
2024
Δ annual
average
2020-2024
(%)
Stock market capitalisation at year-end (€M)
74,296
66,271
69,538
75,378
84,645
3.3
Number of shares outstanding
at year-end (millions)
6,350
6,366
6,362
6,350
6,364
0.0
Period-end closing price (€)
11.70
10.41
10.93
11.87
13.30
3.3
Earnings per share (EPS) (3)
0.551
0.584
0.652
0.719
0.841
11.2
Dividends paid (4)
0.405
0.419
0.449
0.501
0.558
8.3
Dividend yield (%) (5)
3.46
4.05
4.10
4.22
4.20
5.0
Total dividend
(Including cash payments) (€M)
2,517
2,664
2,824
3,149
3,505
8.6
Payout ratio (%)
73.9
75.3
67.7
68.5
65.0
(3.2)
PER (Period-end share price /
Earnings per share for the last four quarters)
21.18
17.82
16.77
16.51
15.81
(7.0)
(1) For standardisation purposes, the 2024 figure is presented net of the sale of thermal generation assets and other adjustments and efficiencies
(2) Adjusted for treasury derivatives with physical settlements that are not expected to be settled (€ 995 M at Dec-24 and € 82 M at Dec-23)
(3) Earnings per share: 6,364,251,000 shares at 2024/12/31 and 6,350,278,000 shares at 2023/12/31
(4) Dividends paid: Gross interim dividend (2024/12/31 - 2023/12/31). Purchase price of rights guaranteed by Iberdrola: € 0.202. Gross final dividend
(/2024/07/29 - 2023/07/28). Engagement (2024/05/21 - 2023/05/03): € 0.005
(5) Dividend paid in the last 12 months / period-end closing price
17
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Gross investment
by geographical area
11%
1%
14%
33%
23%
18%
Adjusted net debt
structure by currency
15%
26%
20%
39%
(1) Debt maturity profile (long-term debt with credit institutions). Commercial paper maturity dates are in 2029+) with an average maturity of 6 years
Adjusted gross debt
by source of financing
5%
10%
21%
10%
2% 6%
4%
19%
23%
Maturity of financial debt (€M)(1)
5,907
4,822
4,387
4,526
5,146
27,640
2025
2026
2027
2028
2029
2030+
Spain
United Kingdom
United States
Brazil
Mexico
IEI
Bonds in euros
Bonds in dollars
Bonds in pounds
Bonds in BRL
Bonds in others
currencies
Promissory notes
Multilateral banking
and development
Banking
Leases and other
Euros
Pounds
Dollar
Real and other
currencies
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Integrated Report 2025
Operational, environmental and social performance
Operating performance
2020
2021
2022
2023
2024
Δ annual
average
2020-2024
(%)
Total installed capacity (MW) (1)
47,965
51,174
53,615
55,737(2)
56,668
4.3
Net output (GWh)
123,463
129,331
125,540
128,668(3) 126,344(3)
0.6
Electricity distributed (GWh)
224,971
237,752
235,506
233,704
238,164
1.4
Km of lines
1,206,783
1,240,137
1,264,641
1,276,519
1,294,765
1.8
Environmental performance
2020
2021
2022
2023
2024
Δ annual
average
2020-2024
(%)
Emission-free installed capacity (%) (1)
79
81
80
81
84
1.5
Emission-free output (%) (4)
75
75
78
80
84
2.9
Specific CO2 emissions (t/GWh)
98
96
83
77
65
(9.8)
Energy savings of green products and
services (MWh)
61,735,876 73,926,183 68,250,158 75,921,058 76,079,414
5.4
Energy produced under certified
environmental management systems (%)
78
80
80
80
94
4.8
Water use/overall production (m3/GWh)
N/D
531
470
473
464
--
Direct CO2 emissions.
Scope 1 (kt)
13,136
13,207
11,927
10,588
8,913
(9.2)
Indirect CO2 emissions.
Scope 2 (kt)
N/D
N/D
N/D
2,594(5)
2,469
--
Other indirect emissions.
Scope 3 (kt)
47,646
44,615
42,679
39,304
31,461
(9.9)
SO2 emissions (t/GWh)
0.008
0.007
0.006
0.005
0.003
(21.7)
NOx emissions (kg/MWh)
0.375
0.365
0.354
0.337
0.157
(19.6)
(1) Includes 13 MW of installed fuel cell capacity
(2) Total installed capacity including net installed capacity for third parties was 62,883 MW in 2023.
(3) Total production including net third-party output was 168,599 GWh and 132,499 GWh in 2023 and 2024, respectively.
(4) Ratio of own emission-free output to output: Total (%)
(5) The closing value of the SNFI-SR for 2023 amounts to 1,746,827 t. Taking into account the methodological change of the ESRS, the value
reported for 2023 has been homogenised. No recalculated data is available for 2020, 2021 or 2022.
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Social performance
2020
2021
2022
2023
2024
Δ annual
average
2020-2024
(%)
Consumers (millions) (1)
35.9
35.6
36.4
36.0
36.0
0.1
Electricity
31.7
31.7
32.1
31.9
31.9
0.2
Spain
10.0
10.0
10.4
10.2
10.0
0.0
United Kingdom
2.8
2.8
2.8
2.7
2.5
(2.8)
US
2.3
2.3
2.3
2.3
2.3
0.0
Brazil
14.3
15.7
16.0
16.4
16.6
3.8
IEI
0.7
0.8
0.5
0.4
0.4
(13.1)
Gas
4.3
4.0
4.3
4.1
4.1
(1.2)
Spain
1.1
1.1
1.2
1.2
1.2
2.2
United Kingdom
1.9
1.9
1.9
1.8
1.8
(1.3)
US
1.0
0.6
1.0
1.0
1.1
2.4
IEI
0.3
0.3
0.1
0.1
0.1
(24.0)
Number of employees
37,127
39,955
40,721
42,276
42,208
3.3
Permanent contracts (%)
99.6
99.5
99.6
99.7
99.7
0.0
Workers with collective bargaining agreement (%)
78.7
78.5
77.6
76.5
76.1
(0.8)
Employee turnover (%)
6.1
7.4
9.7
7.3
9.0
10.2
Diversity (men/women)
77/23
77/23
76/24
76/24
75/25
--
Rate of work-related injuries (own workforce) (2)
4.49
3.90
3.65
3.23
3.17
(8.3)
Hours of training (millions of hours)
2.0
2.4
2.7
3.1
3.1
11.6
Hours of training by average personnel (h)
54.9
62.3
67.9
73.5
73.8
7.7
Funds for social development (€M)
123.9
109.2
139.9
109.1
111.7
(2.6)
Contributions to society (€M)
81.9
58.1
51.9
51.7
56.7
(8.8)
Rural electrification programmes (€M)
42.0
51.1
88.0
57.4
55.0
7.0
Investments in R&D (€M)
292.5
337.5
362.7
384.4
402.5
8.3
General procurement
(€M billed) (3)
8,494
9,424
11,533
12,584
12,805
10.8
Purchases from sustainable suppliers (%)
--
80.1
91.5
90.0
93.0
--
(1) Consumers; for electric power, total number of customers is used where there are areas of electricity distribution and retail, and supply points are
used for the other areas. For gas: the total number of gas customers is used, except for the United States, where the total number of supply points is
included. Electricity and gas customers of the IEI segment depend on Iberdrola Clientes Internacional, S.A., a subsidiary of the country subholding
company Iberdrola España, S.A. ** There may be differences between the totals due to rounding
(2) Rate of recordable work-related injuries = Number of recordable work-related injuries (except first aid) / Number of hours worked x [1,000,000]
(3) Amount awarded in 2024: € 17,853 M
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21
Iberdrola today |
Integrated Report 2025
International presence
(1) Total number of electricity and gas customers.
Iberdrola in Spain
Jose Maria de Oriol hydroelectric power plant, Cáceres, Spain
Key brands
Key figures 2024
31,772 MW
Installed capacity
22,582 MW
Renewable installed capacity
62,039 GWh
Net production
266,913
Km / Power lines
89,060 GWh
Distributed energy
11.2
Million consumers (1)
9,812
Employees
2,188 €M
Gross investments
4,313 €M
Direct tax contribution
22
Iberdrola today |
Integrated Report 2025
6
i
11
1
3
4
4
2
3
1
9
1
1
2
1
2
7
2
i 4
1
10
12
21
1
1
18
1
7
1
17
2
7
2
3
1
i
1
2
2
5
20
9
58
6
1
6
1
2
1
56
11
1
1
1
11
1
1
1
1
1
2
11
1
2
3
29
1
6
6
Batteries
39 MW
17
Cogeneration
plants
318 MW
5
Nuclear
power plants
3,177 MW
206
Onshore
wind
6,550 MW
46
Solar
photovoltaic
plants
4,937 MW
3
Green
hydrogen
10
Combined
cycle gas plants
5,695 MW
118
Hydroelectric
plants (1)
11,057 MW
Projects under construction (2)
2
1
1
i
Main offices
Electricity distribution
Area of influence
(1) The data on hydroelectric power plants include the Daivoes, Gouvaes and Alto Tâmega power plants in Portugal, although they visually appear
on the Iberdrola Energía Internacional map.
(2) Includes both projects under construction and projects with a positive decision to start construction (positive FID)
under construction
in operation
23
Iberdrola today |
Integrated Report 2025
Iberdrola in the United Kingdom
(1) Total number of electricity and gas customers.
(2) Organic investments
Installation of the Western link submarine cable in Barrow, UK
Key brands
Key figures 2024
2,996 MW
Installed capacity
2,996 MW
Renewable installed capacity
7,279 GWh
Net production
111,822
Km / Power lines
30,540 GWh
Distributed energy
4.3
Million consumers (1)
6,598
Employees
2,741 €M
Gross investments (2)
1,260 €M
Direct tax contribution
24
Iberdrola today |
Integrated Report 2025
1
i 7
27
1
1
5
2
i
1
4
1
2
3
1
1
1
Transmission line
Projects under construction
3
1
1
i
Main offices
Electricity distribution
Area of influence
Electricity North West
(since March 2025)
3
Batteries
101 MW
38
Onshore
wind
1,968 MW
2
Offshore wind
farms
908 MW
2
Solar
photovoltaic
plants
19 MW
under construction
in operation
25
Iberdrola today |
Integrated Report 2025
Iberdrola in the United States
(1) Total number of electricity and gas supply points.
(2) Organic investments
Central Maine Power (Avangrid) workers restoring electricity service in Maine, US.
Key brands
Key figures 2024
10,543 MW
Installed capacity
9,703 MW
Renewable installed capacity
24,785 GWh
Net production
173,920
Km / Power lines
37,642 GWh
Distributed energy
3.4
Million consumers (1)
8,269
Employees
3,929 €M
Gross investments (2)
1,292 €M
Direct tax contribution
26
Iberdrola today |
Integrated Report 2025
2
1
6
1
i 6
2
5
3
1
4
1
5
1
1
1
i 1
1
6
1
2
2
i
2
4
1
9
1
1
1
1
1
1
10
5
1
i 1
4
4
6
1
1
3
1
i
2
i
Main offices
Electricity distribution
Area of influence
1
Cogeneration
plants
636 MW
5
Other
renewables
13 MW
68
Onshore wind
8,045 MW
1
Offshore wind
farms
143 MW
11
Solar photovoltaic
plants
1,384 MW
3
Combined cycle
gas plants
204 MW
9
Hydroelectric
plants
118 MW
Projects under construction
2
1
1
1
under construction
in operation
27
Iberdrola today |
Integrated Report 2025
Iberdrola in Brazil
(1) Total number of electricity supply points.
Nova Porto Primavera transport line, Mato Grosso do Sul, Brazil
Key brands
Key figures 2024
4,412 MW
Installed capacity
3,862 MW
Renewable installed capacity
11,224 GWh
Net production
742,111
Km / Power lines
80,922 GWh
Distributed energy
16.6
Million consumers (1)
15,528
Employees
1,703 €M
Gross investments
2,428 €M
Direct tax contribution
28
Iberdrola today |
Integrated Report 2025
1
3
i 1
12
1
1
1
18
2
11 i 1
1
1
i 1
i 4
i 1
i 1
i
Main offices
Electricity distribution
Area of influence
44
Onshore wind
1,554 MW
1
Combined cycle
gas plants550
MW
13
Transmission
lines in
operation
5
Hydroelectric
plants
2,159 MW (1)
2
Solar photovoltaic
plants
149 MW
Projects under construction
5
(1) Include the two power plants in the Pará area: Belo Monte and Pimental.
under construction
in operation
29
Iberdrola today |
Integrated Report 2025
Iberdrola in Mexico
Santiago photovoltaic park, San Luis de Potosí, Mexico
Key brands
Key figures 2024
2,600 MW
Installed capacity
1,232 MW
Renewable installed capacity
12,980 GWh
Net production
831
Employees
132 €M
Gross investments
442 €M
Direct tax contribution
30
Iberdrola today |
Integrated Report 2025
1
1
2
1
1
1
1
1
1
2
3
i 4
i
Main offices
Generation facilities area
Area of influence
4
Cogeneration
plants
202 MW
6
Onshore wind
590 MW
3
Solar
photovoltaic
plants
643 MW
2
Combined cycle
plants
1,166 MW
under construction
in operation
31
Iberdrola today |
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Iberdrola Energía Internacional (IEI)(1)
(1) This page includes information on the Group’s activity in the rest of the world (compared to the previous information above), which is mainly
carried out by Iberdrola Energía Internacional (IEI).
(2) Electricity and gas customers from this segment depend on Iberdrola Clientes Internacional S.A., a subsidiary of the country subholding company
Iberdrola España, S.A.
Saint Brieuc offshore wind farm, France
Key brands
Key figures 2024
4,345 MW
Installed capacity
4,102 MW
Renewable installed capacity
0.4
Million consumers (2)
8,036 GWh
Net production
7,916 GWh
Net renewable production
1,170
Employees
1,253 €M
Gross investments
565 €M
Direct tax contribution
32
Iberdrola today |
Integrated Report 2025
1
23
4
5
5
2
1
4
2
11
1
3
7
3
1
Europe
Japan
Qatar
Vietnam
Australia
9
1
2
2
2
1
i 3
i 1
i 1
i 2
i 2
i 1
i 3
i 1
i 2
i 1
i 1
i 1
i 1
(1)
i
Main offices
Generation facilities area
Area of influence
Projects under construction
1
1
3
57
Onshore
wind
2,041 MW
3
Offshore
wind farms
1,322 MW
2
Batteries
75 MW
18
Solar
photovoltaic
plants
665 MW
2
Combined
cycle plants
243 MW
(1) The data on the Daivoes, Gouvaes and Alto Tâmega hydroelectric power plants in Portugal are included in Iberdrola España, although they
visually appear on this map.
under construction
in operation
33
Iberdrola today |
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Installed capacity and production by country and technology
(1) Data for Production and Installed Capacity include the power plants in which Iberdrola has a holding, based on its ownership interest.
(2) Totals may vary due to rounding of decimals.
(3) Includes Peaking capacity in the United States and IEI.
(4) Including total installed capacity for third parties, the value amounts to 62,893 MWh
Installed capacity (MW) (1),(2)
Spain
United
Kingdom
United
States
Brazil
Mexico
IEI
Total
2024
2023
2024 2023
2024
2023 2024 2023 2024 2023 2024 2023
2024
2023
Renewables
22,582 21,589 2,996 3,002
9,703 8,833 3,862 3,862 1,232 1,232 4,102 3,566 44,478
42,084
Onshore wind
6,550
6,550 1,968 1,971
8,045 8,045 1,554 1,554
590
590 2,041 2,072 20,747
20,780
Offshore wind
0
0
908
908
143
39
0
0
0
0 1,322
846
2,373
1,793
Hydroelectric
10,823 10,826
0
0
118
118 2,159 2,159
0
0
0
0 13,100
13,103
Mini-hydro
234
244
0
0
0
0
0
0
0
0
0
0
234
244
Solar and others
4,976
3,970
120
123
1,397
631
149
149
643
642
740
648
8,025
6,164
Nuclear
3,177
3,177
0
0
0
0
0
0
0
0
0
0
3,177
3,177
Combined
cycle (3)
5,695
5,695
0
0
204
204
550
533 1,166 2,617
243
243
7,858
9,291
Cogeneration
318
347
0
0
636
636
0
0
202
202
0
0
1,156
1,185
Coal
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total
31,772 30,807 2,996 3,002 10,543 9,673 4,412 4,395 2,600 4,051 4,345 3,809 56,668 55,737(4)
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Iberdrola today |
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Net electricity production (GWh) (1),(2)
Spain
United
Kingdom
United States
Brazil
Mexico
IEI
Total(3)
2024
2023
2024 2023
2024
2023
2024
2023
2024
2023
2024 2023
2024
2023
Renewables
33,363 29,462 7,279 7,459 20,897 20,176 11,137 13,568
2,703
2,633 7,916 6,041
83,294
79,339
Onshore wind
9,626 10,726 4,082 3,609 19,294 19,019
5,339
4,976
1,579
1,394 4,611 4,366
44,531
44,091
Offshore wind
0
0 3,190 3,844
39
0
0
0
0
0 2,593 1,229
5,822
5,073
Hydroelectric
20,159 15,460
0
0
211
245
5,551
8,350
0
0
0
0
25,920
24,055
Mini-hydro
429
402
0
0
0
0
0
0
0
0
0
0
429
402
Solar and
others
3,150
2,873
8
5
1,352
912
247
243
1,124
1,239
711
446
6,592
5,718
Nuclear
22,589 23,784
0
0
0
0
0
0
0
0
0
0
22,589
2,3784
Combined
cycle (4)
4,449
6,452
0
0
5
6
87
85
8,890 12,836
121
60
13,552
19,440
Cogeneration
1,638
1,565
0
0
3,884
3,144
0
0
1,388
1,397
0
0
6,910
6,105
Coal
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total
62,039 61,263 7,279 7,459 24,785 23,326 11,224 13,653 12,980 16,866 8,036 6,102 126,344
128,668
(1) Data for Production and Installed Capacity include the power plants in which Iberdrola has a holding, based on its ownership interest.
(2) Totals may vary due to rounding of decimals.
(3) Including net third-party output, the total value amounts to 168,599 GWh in 2023 and to 132,499 GWh in 2024.
(4) Includes Peaking capacity in the United States and IEI.
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Iberdrola today |
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Milestones in 2024
JANUARY
> Iberdrola and the Norwegian sovereign
wealth fund announce a partnership
to co-invest more than EUR 2 billion in
Spain and Portugal over the next 3 years.
> Iberdrola launches the Q – Zero Alliance
aimed at the decarbonisation of thermal
demand in Spain.
FEBRUARY
> Iberdrola completes the sale of 55% of
its business in Mexico for close to USD
6.2 billion - approximately EUR 5.8
billion -. The operation involves the sale
of 13 generation plants with an installed
capacity of 8,539 MW, of which 99%
corresponds to combined cycle gas
power plants and 87% to plants operating
under the Independent Power Producer
regime, contracted with the CFE.
> Avangrid brings the first Vineyard Wind
1 turbines online, providing clean energy
to 30,000 homes and businesses in
Massachusetts.
MARCH
> Iberdrola is the only Spanish company to
be named one of the world’s most ethical
companies for the eleventh consecutive
year, according to the World’s Most
Ethical Companies, elaborated by
Ethisphere Institute.
> EIB and Iberdrola sign EUR 700M green
loan to expand the electricity grid in
Spain.
> The Fitch Sustainable rating agency gives
Iberdrola its top rating.
APRIL
> Iberdrola and Norges Bank Investment
Management extend their agreement,
bringing their joint investment to more
than EUR 2 billion, resulting in a total
portfolio of 2,500 MW.
> The Strategic Innovation Fund of the
UK energy regulator Ofgem is providing
financial backing to two leading grid
innovation initiatives from SP Energy
Networks.
> Construction is underway on Avangrid’s
first PV plant in California, designed to
generate enough electricity to power
14,000 US households.
> Neoenergia is ushering in a new era of
offshore wind energy exploration in Brazil
by installing an innovative floating system
to study wind and sea conditions off the
north coast of Rio de Janeiro.
MAY
> Iberdrola has reached an agreement with
Avangrid to acquire the 18.4% stake in its
US subsidiary that it does not control.
> Iberdrola brings the 496 MW Saint-Brieuc
offshore wind farm into operation, the
second such facility in France and the first
one in Brittany.
> Iberdrola Australia has been granted
preliminary approval for a major offshore
wind farm, Aurora Green, which will make
a significant contribution to the region’s
energy transition by delivering 3,000 MW
of clean energy, and it will involve an
investment of more than 6 billion euros.
> The commitment to equal opportunities
through women’s sport is reinforced by
the support provided to 800,000 female
athletes.
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Iberdrola today |
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JUNE
> Iberdrola receives final environmental
approval to build Portugal’s largest wind
farm, with a capacity of 274 MW.
> The second edition of the Convive
Awards has been launched to celebrate
and showcase initiatives that integrate
renewable energy with socio-economic,
rural and agricultural development and
biodiversity conservation in Spain.
> Iberdrola, named one of the world’s most
sustainable companies by Time and the
international statistics portal Statista.
JULY
> Avangrid begins producing clean energy
at its True North photovoltaic plant, its
first plant in Texas, with a total installed
capacity of 321 MW.
> Successful completion of Iberdrola and
Multiverse Computing’s ground-breaking
project to install batteries in Spain’s
electricity grid.
> Iberdrola ranked among the 10
companies with the best reputation in
Spain in the latest Merco Empresas
y Líderes 2024 ranking, according to
Merco, a benchmark monitor.
AUGUST
> Iberdrola buys the distribution company
ENW for EUR 5 billion.
> Iberdrola, included in the FTSE4Good
index since 2009.
SEPTEMBER
> Iberdrola closes the largest green bond
issue in its history for EUR 2.15 billion to
continue its growth in the United Kingdom.
> Positive Environmental Impact Statement
(EIS) for the construction of the new
Alcántara II reversible hydroelectric
pumping station, capable of reversibly
storing 16 million kWh of energy, equivalent
to the average daily consumption of 4
million people.
> Iberdrola receives Top Employer 2024
certification in eight countries for excellence
in people management.
OCTOBER
> Iberdrola named one of the 10 companies
with the greatest impact in the world by
Richmond Global Sciences (RGS).
> Successful completion of the installation
of the 50 turbines of the 476 MW Baltic
Eagle offshore wind farm in German
waters of the Baltic Sea.
> Iberdrola, the only Spanish company to
have received the international “Fair Tax”
certificate.
NOVEMBER
> Iberdrola helps restore power in “record
time” after flooding caused by DANA in
Valencia.
> Iberdrola launches the first green bond
issuance by a Spanish company in
Australia, amounting to 750 million
Australian dollars.
DECEMBER
> Iberdrola brings Japanese utility Kansai
into the Windanker offshore wind project,
with an installed capacity of 315 MW.
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Iberdrola today |
Integrated Report 2025
Comparative results and recognitions
Comparative results
Growth in market capitalisation 2014-2024 (%)
(1) Comparable companies analysed: Enel, EDP, RWE, Engie, E.ON.
(2) Total shareholder return, including reinvestment of dividends
(3) Arithmetic mean of US utilities (NextEra Energy, Southern Co, Duke Energy)
(4) Dividends paid during the year
136.7%
26.6%
Iberdrola
Average comparables
( 5.1x )
Ten years ago, Iberdrola, S.A. ranked third among
comparable companies in terms of capitalisation(1),
and it currently ranks first.
Total shareholder return performance 2014-2024 (2) (3)
263.9%
167.6%
116.8%
115.7%
64.6%
Iberdrola
American utilities
Euro Stoxx 50
Euro Stoxx Utilities
Ibex 35
( 1.6x )
( 2.3x )
( 2.3x )
( 4.1x )
Iberdrola’s performance
Since 2014, Iberdrola’s EBITDA, Net Profit, and Shareholder Remuneration have more than doubled, as
evidenced below:
16,848
6,965
EBITDA (M€)
( 2.4x )
5,391
2,327
Net Profit (€M)
( 2.3x )
0.558
0.275
Dividends (€/share) (4)
( 2x )
31/12/2014
31/12/2024
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Recognitions
Presence on indices and ratings(1)
(1) By the end of 2024
> Leader in the Electric
Utilities sector. The only
European electricity
company included
for the past 25 years,
considered to be one
of the most sustainable
utilities in the world.
Dow Jones
Best-in-Class
Indices
> Selected AAA
> Included in the leading
indices
> A LIST rating in the CDP
Climate Change Index
2024
> Top 1% S&P Global
ESG Score
> Among the highest-rated
utilities
> In the Global Top 100 for
Gender Equality in 2024
> Selected for the index
since 2009
> Iberdrola among the 500
most valuable brands
globally
> Iberdrola included in the
leading indices
> Iberdrola classified as
Prime
> Leading Spanish
company in the ranking
due to its investment in
clean energies
CARBON
CLEAN 200
> Iberdrola as one of
the best performing
companies
> Gold medal. Iberdrola
as one of the best
performing companies
> Iberdrola selected in
Forbes 2024 GLOBAL
2000: WORLD'S
LARGEST PUBLIC
COMPANIES
Forbes 2024
GLOBAL 2000:
WORLD'S
LARGEST
PUBLIC
COMPANIES
> Iberdrola included in
the STOXX Global ESG
Leaders index and in the
most important indices
STOXX Global
ESG Leaders
Indices
> Selected in several
Euronext indices:
Sustainable World 120,
Sustainable Europe 120
and Eurozone 100 ESG
> Only Spanish company
included. Consecutively
selected since 2014 as
one of the most ethical
companies in the world.
> Iberdrola among the
world’s most influential
utilities
WBA Electric
Utilities
Benchmark
> Iberdrola included in the
index
> Iberdrola in the top 10
of the EI Green Utilities
Report 2024 ranking
> Iberdrola among the top
10% of companies with
the highest scores
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External recognitions/awards
To the Group’s companies:
• Iberdrola, Alcance 3.0 award in the category of
‘Best practice in the energy sector’ for promoting
sustainability in its value chain (CPOnet Group):
2024
• Iberdrola, award for excellence in the practice of
business law, and most innovative company in
the field of compliance (Expansión): 2024
• Iberdrola, best EMEA company in sustainability
disclosure, according to the LACP: 2024
• Iberdrola, Financial Times Innovative Lawyers
Award in Operational Transformation (Legal
Operations): 2024
• Iberdrola, award for the best business
transaction for the sale of combined cycle plants
in Mexico, from the El Economista newspaper:
2024
• Iberdrola’s Convive Programme, given a Tu
Economía Award by the Spanish newspaper La
Razón: 2024
• Iberdrola and Avangrid, Ponce de León 2024
Business of the Year Awards from the Spain-
U.S. Chamber of Commerce: 2024
• Ruth H. Silman Climate Change Project of the
Year Award for Vineyard Wind 1: 2024
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Iberdrola today |
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• Avangrid, Patriot Award given by Employer
Support of the Guard and Reserve (ESGR) of
the US Department of Defense: 2024
• Avangrid in Newsweek’s ranking of America’s
Greenest Companies 2025: 2024
• The Edison Electric Institute gave Avangrid two
Emergency Response Awards for its conduct
during storms: 2024
• Neoenergia, top distinction in the Artificial
Intelligence category of the ABT Awards for its
Voz do Cliente 360º initiative: 2024
• The five distributors of Neoenergia, Best in
Management Awards 2024, awarded by the
National Foundation for Quality (FNQ) of Brazil:
2024
• Iberdrola Mexico, Ibero-American Quality
Award, Gold category, from the Ibero-American
General Secretariat (Segib): 2024
• Iberdrola Mexico, winner of the Exceptional
Companies awards for its strong portfolio of
renewable projects, awarded by CCE, the IFC
and Voz de las Empresas: 2024
• Iberdrola France, Trophée de la mixité femmes-
hommes du maritime in the category of Marine
Renewable Energies (EMR), awarded by WISTA
France: 2024
To the chairman:
• Chosen by Time Magazine as one of the 100
Most Influential Climate Leaders in Business.
• Selected as one of the 10 most influential CEOs
in the world in the fight against climate change,
according to Bloomberg.
• Recognised as one of the 100 most committed
Latinos in the fight against climate change,
published by Sachamama and supported by
Agencia EFE: 2022, 2023, 2024.
• Best Business Leadership in Energy Transition
award from El Periódico de la Energía: 2023
• In 2023, he received the Medal of Honour
from the World Jurist Association at the United
Nations for his commitment to environmental,
social, governance and financial performance
principles.
• Selected among the five best CEOs in the world
by Harvard Business Review (2019).
• Twelve times nominated best Chief Executive
Officer (CEO) in the European electricity
sector by the Institutional Investor Research
Group. He was also nominated as best CEO
of European utilities and Spanish listed
companies in investor relations, according to
the Thomson Extel Survey, and best CEO in
Investor Relations by IR Magazine on three
occasions.
• Honorary Doctorates from the Universities
of Salamanca (2011), Strathclyde (2013),
Edinburgh (2024) and Comillas (2024).
• Commander of the Most Excellent Order of the
British Empire: 2014
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Iberdrola today |
Integrated Report 2025
Business model
Activities
Finance
Innovation
Sustainable business
Business model and strategy
42
Integrated Report 2025
Business model
The current operational context reaffirms
the strategic vision that Iberdrola has been
developing for more than 20 years, contributing
to the electrification of the energy system
based on renewable energies and developing a
sustainable and competitive business model
that creates value for society.
Electrification is the lever for ensuring
self-sufficiency, energy security, efficiency,
competitiveness and reduced emissions. It is the
basis of Iberdrola’s business model, which focuses
on investing in grids, boosting renewables with
greater value, growing in storage, and optimising
the customer portfolio.
In the electrification scenarios, the long-term
growth opportunities for the electricity sector as
a result of the energy transition are clear. The
International Energy Agency, in its latest World
Energy Outlook 2024, states that electricity
use has grown at twice the rate of total energy
demand; but it is projected to grow six times
faster between now and 2035. Furthermore, the
report states that we are rapidly entering the age
of electricity, where current electricity generation
would almost double even in the scenario of
no change in current policies. The Net Zero
Emissions (NZE) scenario shows how electricity
based on almost 90% renewables would provide
55% of final consumption in 2050. Specifically,
the electricity sector would reach net zero
globally before 2045 and by 2035 in advanced
economies, becoming the new backbone of the
global energy system by 2050.
Diversification of businesses and geographical areas
Electrification is unstoppable, and therefore,
based on its experience and opportunity for
organic growth, the Company is committed
to expanding and strengthening electricity
grids mainly in regulated and stable markets
such as the US, the UK, Brazil and Spain. Major
grid investments are planned, with the aim of
connecting demand with clean energy sources to
replace fossil fuels.
Iberdrola is therefore committed to digitalisation.
Technology is key to developing the grids, and
is driven by the Global Smart Grids Innovation
Hubs in Spain, the UK and Qatar. The Company
therefore has a digitalised asset base, with
increasingly smart operating processes that allow
it to improve customer service through control
and operational excellence.
With an installed capacity of more than 44 GW at
the end of 2024, Iberdrola is one of the world
leaders in renewable energy. This positioning
gives the Company the flexibility to invest
selectively in different technologies and countries,
pursuing greater growth in offshore wind, onshore
wind and solar.
The Group has a presence in geographical areas
that have a stable regulatory framework and a
high credit rating, thus guaranteeing the viability
of its investments and ensuring margins in the
medium and long term.
Financial Strength
Iberdrola reaffirms its commitment to maintaining financial solvency and soundness, aligning the
financing model with an investment plan characterised by sustainability and offering its lenders
and investors, in each transaction, a solid guarantee that their capital will contribute to having a
positive impact on the environment and society.
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Business model and strategy |
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Integrated sustainability in the business and shared value
The combination of financial and social
dividends, aimed at meeting stakeholder
expectations and integrating sustainability
aspects into the Company’s strategy and
management, is the key pillar of long-term
value creation.
The Company continues to make progress on its
aim to reduce emissions, with the aspirational
goal of being Carbon Neutral in Scopes 1 and 2
by 2030 and in all 3 scopes by 2040; protecting
nature, for which it has set the target of having a
positive impact on biodiversity by 2030; and
promoting the efficient use of resources, for which
it has drawn up a Circular Economy Plan.
With regard to its value chain, a series of main
principles of conduct based on business ethics
and transparency are promoted in purchasing
equipment and materials and in contracting
work and services, while seeking continuous
improvement and mutual benefit, and promoting
sustainability and innovation activities.
Iberdrola has a set of tools to ensure the
protection of people in order to prevent, mitigate,
and redress potential negative impacts, in its firm
commitment to defending human rights.
The Company will continue to promote equal
opportunities and will continue to strengthen the
learning and development of its professionals.
The Group’s growth continues to give preference
to sustainable financing instruments, given the
very high degree of alignment of the investment
plan with the EU Taxonomy.
All this is made possible by a governance
and sustainability system based on ethics,
transparency and good governance, which
continues to incorporate best market practices.
A business model that enables acceleration of the creation of value for all
Electrification is the most significant transformative trend in the energy system
| Sustainability:
Creating value
for all
| Full commitment
to financial
strength &
dividend
| Diversification of businesses and
geographical areas
-
Growth based on Networks
-
Renewables: Selective investment in
manageable technologies and storage…
-
Focus in high-rating countries
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Business model and strategy |
Integrated Report 2025
Activities
Iberdrola, through its businesses and activities, is responding to the growing demand for electricity by
developing a sustainable and competitive business model that creates value for society.
Networks Business
Key business information
Iberdrola is a pioneer in the development of innovative projects to improve the reliability, safety,
resilience and digitalisation of its grids, in order to offer its customers excellent service quality.
The Company is therefore working to maximise the system’s operating efficiency through operational
excellence and the digitalisation of its assets. The Company, as a leading player in the energy transition,
is moving towards a more electricity-based energy model due to the massive deployment of its
smart grids which, thanks to the information they provide, facilitate more proactive, remote and secure
management, favouring more efficient integration of (centralised and distributed) electric power generation
and the deployment of electric vehicles and heat pumps, among other things.
Principales magnitudes
Spain
United
Kingdom
United States
Brazil
Total
Item
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
Gross margin (€M)
1,933
1,914
1,658
1,899
3,749
4,016
2,637
2,818
9,976
10,646
EBITDA (€M)
1,553
1,543
1,232
1,463
1,400
1,329
1,826
2,088
6,011
6,423
Distributed energy
(GWh)
87,866
89,060
30,321
30,540
37,174
37,642
78,343
80,922 233,704 238,164
Supply points
(Electricity) (Millions)
11.4
11.5
3.6
3.6
2.3
2.3
16.4
16.6
33.7
34.1
Gas supply (GWh)
--
--
--
--
59,900
61,517
--
--
59,900
61,517
Supply points
(Gas) (Millions)
--
--
--
--
1.0
1.1
--
--
1.0
1.1
Gross investments (€M)
656
586
1,014
1,493
1,980
2,541
1,527
1,661
5,178
6,281
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Business model and strategy |
Integrated Report 2025
Main activities during the year
Planning and development
Spain
Projects to improve tools and processes
In 2024, facilities worth more than EUR 580 million were commissioned and electrification
improvement projects were launched, facilitating and strengthening grid connections.
United
Kingdom
RIIO-ED2, RIIO-T2 and RIIO-T3
The RIIO-ED2 and RIIO-T2 regulatory mechanisms are underway, which, according to the business
plans submitted to the regulator, will involve an investment of more than GBP 4 billion in distribution
and more than GBP 2 billion in transmission. In December, the business plan for RIIO-T3 was
submitted to Ofgem, proposing an investment of GBP 11.6 billion in transmission by 2031 to meet
the government’s Clean Power 2030 target, including three new HVDC connections to England and
Wales. RIIO-ED2, which focuses on the low voltage grid, will free up grid capacity and allow around 5
million electric vehicles and 2 million heat pumps to be connected to the grid.
Distribution System Operator (DSO)
The Company is transitioning to the DSO role, enabling more active and dynamic network operation
that prioritises grid resiliency and efficiency to provide better access to customers.
United
States
Grid resiliency
More than USD 130 million were invested to improve grid resiliency, including flood walls, substation
relocation and transmission line reconstruction. In total, USD 318 million was invested in climate
adaptation and mitigation in 2024.
Resource interconnection
A total of 7,467 new distributed energy resources were interconnected, totalling more than 850 MW,
95% of which was solar Pvphotovoltaic. In New York, a new flexible interconnection technology was
demonstrated that could integrate more renewable energy and minimise costly upgrades.
Smart meters
By the end of 2024, one million smart meters had been rolled out in New York, marking a milestone
that represents half of the total target of approximately 2 million.
NECEC
Construction continued on the New England Clean Energy Connect (NECEC), a 145-mile transmission
line that will connect 1,200 MW of hydroelectric power from Quebec to the New England grid.
Brazil
Improved distribution
In distribution, the Company continues to invest in improving customer service (16.6 million) and
in grid resilience through the Investment Plan until 2027. In addition, 39 refurbished customer service
branches have been opened and the mobile app has been improved, which now centralises nearly 40
functionalities (services).
Improved transmission
BRL 4.1 billion were invested. The Itabapoana, Estreito and Paraíso projects and parts of Lagoas
dos Patos, Morro do Chapéu, Guanabara and Vale do Itajaí projects were delivered. This added
around BRL 300 million in annual revenue, closing the year with BRL 1 billion in RAP. According to the
established investment cycle, the Company will reach around BRL 1.9 billion in RAP in 2025.
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Customer service
Spain
Improved customer experience
Customer experience continues to be a strategic priority for i-DE, which strives to be a top leader.
Investments in electricity infrastructure and network digitalisation have improved the quality of supply.
In 2024, the process of accessing and connecting to the grid was simplified, significantly improving the
customer experience and the accessibility of relevant information through digital channels.
United
Kingdom
AI rollout
SP Energy Networks increased customer satisfaction over the last year, ranking as one of the
UK’s top companies across all service sectors according to the Institute of Customer Service. It has
successfully implemented Salesforce CRM to personalise and improve customer interactions. In 2025,
it will roll out AI to further increase satisfaction and internal efficiency.
United
States
Digital customers
A total of 1.4 million customers have been registered on the mobile app and 1.3 million are signed up for
electronic billing, which is expected to increase thanks to ongoing promotional campaigns. In addition,
the average satisfaction rating rose by 150% according to digital surveys.
Brazil
Customer-centric vision
In 2024, Neoenergia reinforced its customer-centric vision by implementing the 360º customer
vision and strengthening the cultural transformation through the ‘Our Neoenergia Style’ programme,
highlighting pillars such as owner attitude, humanisation, resolution and flexibility.
Modernised customer service
The new call centre model, driven by cloud technology and competitive alliances, has ensured
efficiency that is also recognised by ANEEL.
The New Customer Service Model and improved governance in complaints improved satisfaction
indicators. As a result, it won the gold trophy in the SA Customer Award for the ‘Voz del Cliente 360º’
programme, highlighting best practices in customer management and experience in Brazil.
This last project (Voz del Cliente 360º) was also awarded silver in the Smart Customer Award, together
with URA 2.0, which won gold.
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Operational excellence
Spain
Service quality improvement (TIEPI and NIEPI)
Operational performance was very strong in 2024, with customer service levels (TIEPI) continuing
to improve and energy losses reaching historically low levels this year.
Valencia DANA
The Company responded exceptionally during the worst rainstorm of the century in Spain (Valencia
DANA), restoring the electricity supply in record time and providing support to the affected
community (more than 180,000 people were left without electricity). i-DE mobilised more than 500
workers and sent 1 million sms/emails to its customers, recovering approximately 90% of the affected
electricity supply in 48 hours, with the entire supply of the distribution network recovered in just over 72
hours. Iberdrola presented the il-lumina project, in which EUR 100 million will be invested to redesign
the affected power grid.
Digitalisation of processes
In 2024, a mobility platform for network maintenance processes was implemented, which avoids the use
of paper and reduces clerical work. This automation, which adds AI to the process, improves reliability
and makes it easier to manage the activity. The implementation of the SAS protocol in substations was
also industrialised, facilitating its future extension.
United
Kingdom
Secondary communications and electronic devices
SP Energy Networks has been working on operational excellence for secondary communications
and electronic devices.
Service quality improvement (grid infrastructure)
ScottishPower has launched a tender for GBP 5.4 billion (more than EUR 6.28 billion) to upgrade grid
infrastructure and enable a zero emissions future. This is the largest grid contract that the company
has ever issued in the country. The contracts, which cover the next 10 years, include transmission
projects and will create green jobs for decades to come. The investment will also strengthen energy
security, enabling the integration and transmission of new renewable capacity and maintaining the
United Kingdom’s leading position in electrification.
New industrial technologies
SP Energy Networks has implemented a development that incorporates new industrial technologies
and solutions such as the IoT Hub, edge computing and machine learning.
United
States
Security, reliability, excellence and innovative solutions
Avangrid’s distribution companies, New York State Electric & Gas (NYSEG) and Rochester Gas and
Electric (RG&E), have announced that they have achieved their best supply reliability ratings in
five years. This achievement has resulted from ongoing efforts to improve New York State’s electricity
infrastructure, which serves 1.9 million customers.
A SecurityScorecard cybersecurity rating of 98/100 was achieved, which is significantly higher than
the average for the energy sector (86). The Company maintained its ISO 45001 certification and
obtained a new ISO 14001 certification, thus achieving integrated certification of its environmental
health and safety system.
Brazil
Service quality improvement (DEC and FEC)
Despite climate challenges, with excessive rainfall and electrical discharges in the first quarter
in the states of the Northeast and São Paulo, the distributors met the regulatory limits for the
quality indicators of Equivalent Duration of Interruption per Consumer (DEC) and Equivalent
Frequency of Interruption per Consumer (FEC), most notably Neoenergia Brasilia, which had the
best performance in both.
Much of this success is due to the accelerated digitalisation of the grids, with self-healing systems
that allow supply to be restored in up to 60 seconds.
Several awards were won for these results: Abradee Award from the Brazilian Association of
Electricity Distributors, Neoenergia Cosern as the best distributor in the Northeast, third in Brazil and
second in Management Quality, as well as a mention in Health and Safety; and Neoenergia Elektro,
first in Management Quality and third in Innovation Management.
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Network digitalisation and Flexibility
Spain
Distribution System Operator (DSO)
i-DE continues to implement the role of DSO in distribution grids, which aims to make more efficient
use of grids through active management of flexible resources, both its own and those of third parties
(generation, demand and storage), so that the generator or consumer can adapt to the needs of the
grid, offer the DSO flexibility and respond to its needs. A logical order is proposed to implement the
flexibility mechanisms and solutions based on the results of pilots and projects carried out and on
the Iberdrola Group’s experience in other countries, such as the United Kingdom, where implementation
has been successful. The DSO’s role with flexible solutions is a paradigm shift mainly in the operation
and planning processes, and the creation of new processes not yet in place.
United
Kingdom
Grid monitoring
Enhanced monitoring capabilities are being developed and deployed to extend the visibility and
operation of the grid. This includes the installation of new monitoring points and a solution to capture
exponential volumes of data. In addition, an open data portal has been launched so that customers
can access and use the data through an API.
United
States
Operational performance (HealthAI)
HealthAI is a tool developed by the operational performance team that uses AI, street views and
drone imagery to catalogue and assess the condition of equipment and infrastructure, allowing better
informed maintenance and repair decisions to be taken.
Grid quality improvement: GeoMesh
GeoMesh is a geospatial platform that identifies strengths and weaknesses in the grid using data
such as weather and vegetation. The GeoMesh platform uses machine learning to model the grid’s
response to weather conditions, optimising maintenance and improvement depending on the specific
needs of each area.
Substations improvement: Sparky
‘Sparky’, a robot ‘dog’, can inspect substations using artificial intelligence. This pilot involved
performing visual and thermal inspections at two substations. During the inspections, the AI models
can read meters and inspect transformers, circuit breakers and other critical equipment.
Brazil
Digital networks
In 2024, 80% of Neoenergia’s networks were digitalised, reaching more than 18,000 automated
devices, and its telecommunications network was expanded with 7 additional towers (in total, more
than 350 towers) and 220 km of optical fibre (in total, about 2,000 km of optical fibre).
Neoenergia Brasilia began to implement a private 4G LTE (Long Term Evolution) communication
network and installed the first smart meters as part of the Godel Multilink R&D project.
Automatic Grid Reconnection and SelfHealing
The AGR (Automatic Grid Reconnection) project was completed for the Neoenergia Cosern reclosers
and the expansion at Neoenergia Pernambuco. AGR, a self-healing (automatic reclosing) technology,
benefits more than 5 million customers.
Digital VHF radio system
Two new back-up operation centres were implemented for Neoenergia Elektro and Neoenergia
Brasilia and Neoenergia Elektro’s voice communication system was completely overhauled with a new
digital VHF radio system, providing more resilience and security to operations.
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Electricity Production and Customers
Key information
The purpose of the Electricity Production and Customers Business is to offer competitive, efficient,
sustainable and high-quality supply, for which purpose it works to continuously improve the efficiency of
its operations. In this context, care for people and environmental protection are integrated into operating
procedures, which prioritise occupational health and safety and environmental management.
Key figures
Spain
United
Kingdom
United
States
Brazil
Mexico
IEI(1)
Total
Item
2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024
2023
2024
Gross margin (€M)
7,010 7,077 3,104 2,965 1,119 1,295
443
361 1,131
634
645
925 13,456 13,257
EBITDA (€M)
4,277 4,617 2,087 1,807
686
978
348
227
786 2,141
420
721
8,601 10,487
Electricity
contracts
(millions)
10.2
10.3
2.7
2.5
0.4
0.03
13.2
12.9
Gas contracts
(millions)
1.2
1.3
1.8
1.8
0.1
3.1
3.1
Smart Solutions
contracts
(millions)
10.4
11.7
2.8
3.0
0.7
0.8
0.3
14.1
15.6
Gross investments
(€M)
1,523 1,414 1,156 1,202 1,009 1,381
129
39
161
128 1,993 1,253
5,971
5,416
(1) Electricity and gas customers from this segment depend on Iberdrola Clientes Internacional S.A., a subsidiary of the country subholding company
Iberdrola España, S.A.
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Main activities during the year
Installed renewable capacity:
Onshore wind
Solar photovoltaic
Batteries
50 MW in Australia
986 MW in Spain
766 MW in the United
States
56 MW in Germany
36 MW in Italy
20 MW in Spain
Offshore wind
117 MW in the United States
in the Vineyard Wind project
476 MW in Germany in the
Baltic Eagle project
Projects under construction:
Onshore wind
Solar photovoltaic
Batteries
> 1,000 MW in Spain,
the United Kingdom and
Portugal.
> 1,000 MW in Spain, the
United States, Australia
and Italy.
140 MW in Spain, the
United Kingdom and
Australia
Offshore wind
Growth continues with
the construction of the
806 MW Vineyard Wind
project in the United
States.
Projects with approved investment:
Onshore wind
Solar photovoltaic
Batteries
> 400 MW in Spain, the
United Kingdom, the
United States and Greece
> 700 MW in Spain, the
United States, Germany
and Italy.
300 MW in Spain and
Australia.
Offshore wind
The 316 MW Windaker
project in Germany and
the East Anglia TWO
and East Anglia THREE
projects at ScottishPower.
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Green hydrogen
Spain
Puertollano project
20 MW Puertollano project for the decarbonisation of the fertiliser industry.
TMB hydrogen plant
The first public and commercial hydrogen plant in Spain, installed in Barcelona (2.5 MW capacity)
and operational from January 2022.
Benicarló production plant
Progress continues to be made on the construction of the third green hydrogen production plant
in Benicarló for the chemical company IFF (International Flavors & Fragrances). With a 1.25 MW
electrolyser, which replaces 100% of the plant’s grey hydrogen consumption.
Iberdrola and BP alliance
Following the formation of the Castellón Green Hydrogen joint venture between the two companies, the
final investment decision for the construction of the plant with a capacity of 25 MW was taken in 2024.
United
Kingdom
Cromarty and Whitelee
Projects selected under the UK Government’s Hydrogen Allocation Round 1 programme (Cromarty
15 MW and Whitelee 10 MW).
In addition, in order to respond to the electrification and decarbonisation needs of sectors that are difficult
to downscale and to provide added value to our customers, Iberdrola continues to work actively on
implementing green hydrogen, green ammonia and e-methanol projects in countries where the Company
has a solid renewable portfolio, such as Spain, Portugal, the United Kingdom, Brazil and Australia.
Customers
In 2024, the portfolio of smart products sold to customers was expanded to more than 16
million, thus maintaining our commitment to developing products and services such as plans adapted
to consumer habits and solutions that meet the needs of our customers (Smart services, Smart mobility,
Smart solar, Smart home, Smart climate and Smart Cities).
The Group has entered into strategic alliances with a long list of large companies, with which
it has signed PPAs (Power Purchase Agreements), long-term clean energy purchase and sale
agreements for more than 5 million MWh per year.
PPAs are essential instruments for the electrification of the economy. From the customer’s point of
view, the main advantage of PPAs is that they offer a stable and predictable price, avoiding market
volatility. The contracting company is therefore able to secure the price of energy over the long term,
with agreements typically for 10, 15 or even 20 years. The consumer knows the price of energy for the
coming years in advance, which provides cost stability and competitive prices.
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Finance
Economic and financial performance
Iberdrola continues to develop a resilient business
model, while managing the current complex
macroeconomic context with a robust and prudent
financial policy.
In 2024, the Company generated a net profit of
EUR 5,612 million. Investments grew organically
by 5% to EUR 11,946 million, a record for the
Group, and approximately EUR 5,000 million
have been paid for acquisitions in corporate
transactions of ENW (United Kingdom) and
Avangrid (United States), mainly the funds obtained
from the divestment of the thermal generation
assets in Mexico.
Gross margin grew by +2.5% to EUR 23,876.1
million (+3.0% excluding the exchange rate effect),
as a result of the improvement in procurements,
which were 19.9% lower than in 2023, while
income declined to a lesser extent, 9.3% below the
value reported in 2023. Iberdrola is committed to
operational efficiency through cost-optimised
project design over the life of the asset, as well
as continuous improvements in operation and
maintenance management through standardisation
and digitalisation of processes.
EBITDA amounted to EUR 16,847.7 million, up
17% on 2023, as a result of the strong operating
performance due to a larger asset base and better
returns obtained in the Networks business, higher
production with better prices, normalisation of
margins in the Electricity Production and Customers
business, as well as the impact of the income from
the divestment of the thermal generation assets.
Operating cash flow amounted to EUR 11,836
million.
The Company has two other main levers at its
disposal: On the one hand, it made purchases
of EUR 17,853 million, securing the supply chain
for future investments. On the other hand, capital
gains arising from asset rotation are driving
the implementation of efficiency measures and
adjustments that will strengthen future profits.
The Company maintains a robust liquidity
position, which allows it to face possible market
tensions and volatility, with more than EUR 20,000
million of liquidity, which allows it to cover 22
months of financial needs without having to tap the
market.
This economic and financial structure has allowed
the Company to maintain solid financial ratios
that keep credit ratings at BBB+/Baa1 with a stable
outlook.
The Company’s performance over the past
decades, and particularly in recent years when
there has been a very significant energy and
logistics crisis, demonstrates the resilience of the
business model and the compatibility of continuing
to have a positive impact on the environment with
the creation of value for shareholders.
As a result of the above, shareholder
remuneration will increase by 15% to EUR
0.635 gross per share, subject to approval at the
General Shareholders’ Meeting.
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EU Taxonomy
Iberdrola fulfils the reporting requirements of Article 8 of EU Regulation 2020/852 on the establishment
of a framework to facilitate sustainable investment.
Under this regulatory framework, companies are required to report their eligibility and alignment with
the EU Taxonomy through three economic indicators; as a percentage of turnover, investment and
operating expenditure.
After identifying eligible activities for regulatory purposes, each eligible activity is analysed to see
whether or not it meets the requirements of the technical screening criteria. To be considered an aligned
activity, it must meet the technical criteria of making a significant contribution to at least one of the six
environmental objectives. Each eligible economic activity is then assessed to determine whether it
substantially contributes to one of the objectives, whether or not it meets the criteria of do no harm
to the other environmental objectives, and whether there are sufficient social safeguards in the context
of the activities carried out.
Eligibility
The classification of the activities carried out by the Group is shown below, distinguishing between
eligible and non-eligible activities in accordance with the regulated definition.
Electricity generation at nuclear
facilities.
Distribution of gas and the sale of
electricity or gas to end customers.
Generation of electricity:
using solar photovoltaic technology.
from wind power.
from hydroelectric power.
from gaseous fossil fuels.
Manufacture of hydrogen.
Electricity transmission and distribution
Storage of electricity
Installation, maintenance and reparation of equipment:
energy efficiency.
charging stations for electric vehicles,
instruments and devices for measuring, regulating
and controlling the energy performance of buildings,
renewable energy.
Eligible activities according to RD 2021/2139,
2022/1214 and 2023/2485
Ineligible activities according to RD
2022/1214
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Sustainable turnover
Eligible activities are defined by regulations and the eligibility percentage determines the ceiling of the
possible alignment percentage. As a result of the mix of the Group’s economic activities, the percentage
of eligible activities is 61.5% of turnover and the percentage of revenue alignment is 55.8%, which in the
Company’s opinion is not an accurate reflection of the sustainability of its operations.
The proportion of taxonomy-aligned turnover in relation to the taxonomy-eligible turnover is 90.8%.
The turnover associated with sources that generate emissions has been gradually decreasing over the
last decade. The effect of the divestment of the thermal generation business in Mexico can be seen in
2024.
The breakdown by taxonomy-aligned turnover is as follows.
Turnover
Alignment on
total turnover
Alignment on
eligible turnover
55.8%
90.8%
61.5%
Not Eligible
Eligible
More than 90% of turnover from eligible activities is European
taxonomy-aligned turnover
OpEX
Eligible OpEx represents 92.9% of the Group’s total OpEx. Environmentally sustainable and taxonomy-
aligned activities account for 87.8%, which is a increase of more than 20 percentage points, up from 64%
in 2023; this was positively impacted both by the divestment of the gaseous fossil fuels business and
the thermal generation business in Mexico, and by having met the technical screening criteria applicable
to the Electricity Transmission and Distribution business in New York and Connecticut, whereby this
activity substantially contributes to the climate change mitigation objective, in addition to the adaptation
objective, as it did in the previous financial year.
The OpEx of the aligned activities would increase to 94.6% of total eligible activities.
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OpEx
Not Eligible
Eligible
Alignment on
total OpEx
Alignment on
eligible OpEx
87.8%
94.6%
92.9%
The OpEx of the aligned activities would increase to 94.6% of total
eligible activities.
Sustainable CAPEX
The Company believes that the indicator that best reflects the Group’s level of sustainability is the degree
of alignment of CapEx, which represents 89% of the total and 90% for all eligible activities, as a result of
its growth strategy based on smart grids and renewable generation, activities on which it focuses almost
all its investments.
The CapEx of the aligned activities represents 99% of total eligible activities, growing year on year
thanks to the investment strategy implemented.
CapEx
Not Eligible
Eligible
Alignment on
total Capex
Alignment on
eligible Capex
89%
99%
89.9%
99% of investments for eligible sustainable activities are
taxonomy-aligned investments
For more details regarding the criteria applied, see the Consolidated Statement of Non-Financial
Information (SNFI) and Sustainability Report.
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Sustainable finance
(1) Includes the Tax Equity Investment green financing agreement and the project finance of Vineyard Wind 1, a company accounted for using the
equity method, for a total of USD 3,297 million (EUR 3,160 million).
Thanks to the Company’s financial discipline,
Iberdrola has access to various sources of
financing, leading the way in the market in terms
of corporate sustainable financing. At year-end
2024, virtually 90% of the Company’s investment
plan was aligned with the EU taxonomy, allowing it
to remain the world leader in green bonds, with
strong demand from sustainable investors,
which provided total sustainable financing of
EUR 60,053 million (1).
Thus, for another year, Iberdrola has reaffirmed its
commitment to a sustainable financial strategy and
business model for three main reasons:
• Solvency and financial strength are key pillars
for implementing the Group’s ambitious strategic
plan.
• The financing model is consistent with
an investment plan characterised by the
sustainability of the investments, where 90%
of the investments envisaged for the 2024-2026
period are aligned with the EU Taxonomy.
• In each transaction a firm commitment is
made to lenders and investors their capital will
contribute to having a positive impact on
the environment and society, on the various
geographical areas and through the different
instruments and markets in which projects are
financed, which contributes to broadening the
investor base and optimising its borrowings costs.
Against this backdrop, the sustainable financing
signed by the Iberdrola Group in 2024 amounts
to EUR 9,643 million, reaching a sustainable
financing portfolio of EUR 60,053(1) million. The
breakdown by product is as follows.
Sustainable financing of the Group in 2024 (€M)
Bonds
Bank loans
Multilateral
loans
Development
bank and
ECA loans
Structured
financing
Credit
facilities
Bank loans
Commercial
paper
programmes
652
1,100
249
5,795
7,796
€M
1,000
600
247
1,847
€M
New financing
€9,643 M
Green
Sustainable (KPI-linked)
Bonds
Bank loans
Multilateral
loans
Development
bank and
ECA loans
Structured
financing
Credit
facilities
Bank loans
Commercial
paper
programmes
4,186
3,932
5,473
272
22,895
36,758
€M
6,000
1,725
15,570
23,295
€M
Portfolio at year-end
€60,053 M (1)
Green
Sustainable (KPI-linked)
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Green finance transactions
The Group signed new green finance transactions in 2024 for a total amount of EUR 7,796 million.
This brings total green finance at year-end 2024 to EUR 36,758 (1) million.
2024 Green
financing
€36,758 M
Total green finance at
year-end 2024
€7,796 M
New green finance
transactions
The distinguishing feature of this financing is the commitment to use the funds obtained for projects
with a positive impact on the environment, including renewable energy, expansion and digitalisation of
electricity transmission and distribution grids, researching new, more efficient generation technologies,
or the smart mobility projects in which Iberdrola invests. The Company also commits to providing annual
reports, through various indicators, on the environmental return generated by these projects, so that
investors can be aware of their level of contribution to the environmental improvement achieved.
The funds secured through all these transactions have gone towards financing or refinancing
investments in projects that meet certain environmental and sustainable development criteria,
as described in the relevant Green Financing Frameworks of Iberdrola, Avangrid or Neoenergia(1).
These Frameworks are aligned, inter alia, with the Green Bond Principles (“GBPs”) established by the
International Capital Markets Association (ICMA) and have the Second Party Opinion of a renowned
international expert regarding their alignment with the GBPs in all cases.
The most notable green instruments are the bonds, with Iberdrola being the world’s leading private
Group in terms of green bonds issued. The Company issued its first green bond in 2014, and since then
has stepped up its financing through this type of instrument, with numerous other issues and in various
forms: both public and private transactions, senior and subordinated debt (hybrid bonds), issued by the
Corporation or other subsidiaries (green bonds of AVANGRID or green debentures of NEOENERGIA
and other companies under these subgroups).
(1) Iberdrola Framework for Green Financing, AVANGRID Framework for Green Financing and Green Finance Framework of the Neoenergia group.
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Bonds
> In 2024 Iberdrola issued 6 new green bonds at the corporate level, 4 of which are senior debt
and 2 of which are subordinated debt (1)
January
Perpetual hybrid bond
EUR 700 million that can be repurchased at par after 7.25 years
to finance the repurchase —in March— of another green hybrid bond for the same amount, which
had financed renewable assets (offshore and onshore wind and hydro) in various countries.
July
Senior transaction in the Swiss market
CHF 335 million (EUR 357 million) at 4 and 7 years
to finance Network assets in the UK.
Senior transaction in the Euro market
EUR 750 million at 10 years
to refinance renewable onshore wind or solar energy assets in the United States.
October
Senior bond
GBP 500 million (EUR 602 million) at 12 years
to partially finance the investment in the East Anglia 2 offshore wind farm in the UK, which is still
under construction.
November
Senior transaction in the Australian market
AUD 750 million (EUR 447 million ) at 6 and 10 years
to finance renewable assets (solar and batteries) in Australia.
Perpetual hybrid bond
EUR 800 million that can be repurchased at par after 5.75 years
to finance the repurchase —in February 2025— of another green hybrid bond for the same
amount, which had financed the Wikinger offshore wind farm in Germany (2017) and East Anglia
offshore wind farm in the UK (2019).
United
States
Its subsidiaries issued 4 green bonds for a combined amount of USD 955 million
(EUR 915 million).
The funds obtained were allocated to Networks projects.
Brazil
Its subsidiaries issued 15 green finance transactions for a combined amount of BRL 7,922 million
(EUR 1,225 million).
The funds obtained were allocated mainly to Networks projects.
> At year-end 2024, Iberdrola had a portfolio of green bonds worth EUR 22,895 million, broken
down as follows:
24 green bonds issued by the
Corporation for a total of EUR 16,203
million (including EUR 5,250 million
in hybrid bonds).
USD 4,520 million (EUR 4,332
million) issued in the US market
by AVANGRID and several of its
subsidiaries.
BRL 15,267 million (EUR
2,360 million) issued in
Brazilian capital markets
by NEOENERGIA and its
subsidiaries.
(1) Further details on these green transactions and their environmental returns can be found in the Green Finance Returns Report (for transactions
carried out by the Corporation), and the Neoenergia Sustainability Report (for transactions carried out by Neoenergia and subsidiaries).
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Bank loans (1)
> In the banking market, Iberdrola received the first green loan obtained by an energy company in
2017, which was followed by other green transactions.
Brazil
In 2024, Neoenergia took out 5 green bank loans maturing in 2027 and 2029 for a total of BRL
1,500 million (EUR 249 million) for distribution network construction and automation projects, as
it did for the first time in 2023, with a loan maturing in 2026, for BRL 150 million (EUR 28 million).
Loans with multilateral institutions (1)
> In May 2019, Iberdrola obtained its first green loan from the European Investment Bank
(EIB) and has since continued to expand this type of instrument and the range of lenders.
These public entities have their own criteria for assessing projects and allocating green
instruments, which are in any case compatible with the Green Bond Principles, market
standards and the commitments made by Iberdrola and its subsidiaries under their Green
Financing Frameworks.
Spain
Italy
A total of EUR 1,000 million has been signed to
finance a multiannual 2024-2026 distribution
networks programme in Spain. EUR 500 million
of this total was provided through Recovery
and Resilience Mechanism funds, which is the
first transaction signed by the EIB with funds
earmarked for Spain.
A loan of EUR 100 million has also been
taken out to partially finance a solar project
in Sicily (Italy). This loan is secured by the
Italian Export Credit Agency (SACE) to
promote renewable energy in Italy.
(1) Further details on these green transactions and their environmental returns can be found in the Green Finance Returns Report (for transactions
carried out by the Corporation), and the Neoenergia Sustainability Report (for transactions carried out by Neoenergia and subsidiaries).
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Loans with development banks and Export Credit Agencies (ECAs) (1)
> In 2022, Iberdrola signed its first corporate-level green loans with an Export Credit Agency
(ECA) underwriting policy.
> On 18 June 2024, a loan of EUR 29 million was taken out with ICO to partially finance the
investment programme for the fast and ultra-fast charging networks implemented in 2023-2026
by the Charging Together joint venture.
> On 20 July 2024, Iberdrola took out a loan with HSBC, Sabadell and ICO for EUR 500 million,
with the green policy coverage of the Spanish Export Credit Agency CESCE, in order to finance
the development of renewable assets in Italy, Australia and the United States. This is the second
transaction signed by Iberdrola with this type of coverage.
All of the assets financed by these institutions are included as projects eligible for green financing
within Iberdrola’s Green Financing Framework.
Brazil
On 11 June 2024, Neoenergia took out a loan with BNDES through its subsidiary Coelba
for BRL 794 million (EUR 123 million), which received a green rating.
Finance transactions linked to achieving sustainable targets
In addition, the Group has entered into other sustainable finance agreements, as they are finance
transactions where their cost or certain structural aspects are linked to meeting a set of sustainable
objectives. These are so-called KPI-linked finance transactions, such as the credit facilities taken out by
Iberdrola and the commercial paper programme that the Group has in place to manage and optimise
its liquidity.
As with green finance transactions, KPI-linked finance transactions are certified by an independent
expert as regards the selected sustainability indicators and their compliance with the corresponding
Sustainability-Linked Loan Principles (SLLP) of the LTSA or Sustainability-Linked Bond Principles (SLBP)
of the ICMA.
(1) Further details on these green transactions and their environmental returns can be found in the Green Finance Returns Report (for transactions
carried out by the Corporation), and the Neoenergia Sustainability Report (for transactions carried out by Neoenergia and subsidiaries).
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Bank loans linked to
sustainable objectives
At year-end 2024, Iberdrola had bilateral
bank loans with various commercial financial
institutions for a total of EUR 1,125 million linked
to environmental indicators, and in 2024 it took
out four commercial bank loans for a total of
EUR 600 million.
Commercial paper
On 11 April 2024, Iberdrola renewed its Euro
Commercial Paper (ECP) programme, whereby
the latest changes include increasing the
maximum limit for the outstanding balance to EUR
6 billion (from the previous EUR 5 billion), and
incorporating the sustainable seal by undertaking
to achieve two sustainability targets included in
the Group’s strategy.
Credit facilities linked to
sustainable objectives
At year-end 2024, Iberdrola had KPI-linked credit
facilities for a total of EUR 15,570 million, which
includes transactions signed at the Corporation
level and by AVANGRID and Neoenergia.
The main targets established in these credit
facilities are linked with environmental and social
indicators aligned with the Group’s targets:
• Sustainable syndicated credit facility for EUR
2,500 million in July 2022, the maturity date of
which was extended in 2024 for an additional
year to 2029.
• Sustainable syndicated credit facility for EUR
2,500 million in April 2021 and a bilateral credit
facility for JPY 16,000 million (EUR 101 million)
in June 2021, the maturity dates of which were
extended in 2023 for an additional year to 2028.
• Sustainable syndicated credit facility for EUR
1,500 million in March 2019, the maturity date
of which was extended in 2024 for an additional
six months to 2026.
• Sustainable syndicated credit facility for EUR
5,300 million in December 2023, the maturity
date of which was extended in 2024 for an
additional year to 2029.
In 2021, AVANGRID also extended the maturity
date and limit of the syndicated credit facility signed
in 2018 to 2026 and USD 3,575 million (EUR 3,426
million), respectively, while maintaining the initial
indicator that requires reducing CO2 emissions.
Lastly, in 2024 Neoenergia converted existing
credit facilities for a total of BRL 1,600 million (EUR
247 million) into sustainable finance transactions by
introducing an environmental indicator and a social
indicator.
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Innovation
Today Iberdrola is a global energy leader thanks
to a strategic vision that anticipated the trend
towards electrification, renewables and the energy
transition by two decades, and to its innovative
ability to put this strategy into practice.
Investment
in R&D
€402.5 M
invested in 2024
(+5% Vs 2023)
200
211
246
266.5
280
292.5
337.5
362.7
384.4
402.5
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Total R&D investment
Thanks to Iberdrola’s ongoing commitment to innovation, it has been recognised for the fourth
year in a row as the private utility that invests most in R&D worldwide, according to the
European Commission’s classification.
The projects or initiatives described below drive the key areas for transforming the sector: electrification
of production, system integration through smart grids and digitalisation, and electrification of demand
through emission-free technologies.
Electrification
of production
Solar
Pumping
Batteries
Wind
Smart
Grids
GEM
Digitalisation
Electrification
of demand:
Residential
& industrial
Energy management
Green
Hydrogen
Self‑consumption
Transport
Heat
Electrification of production
Integration
Electrification of demand
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Electrification of production
Wind
WINDTWIN project
In the meteorological forecasting field, the project seeks to develop new control methods for
wind farms and turbines, and predictive models for energy demand and price, and to implement
advanced predictive maintenance and monitoring techniques for structures.
RENOTWIN project
It seeks to develop and validate the Building Information Modelling (BIM) methodology based
on digital twins for renewable energy, which comprehensively captures all the necessary
parameters to reflect the reality of the lifecycle of renewable assets, from design to O&M,
using big data and AI tools.
Solar
ECOSIF project
This project continued to contribute to increasing the lifespan of photovoltaic systems,
improving their efficiency and reducing their design, construction, operation and maintenance
costs, through a detailed analysis of the corrosion processes that take place in the buried part of
the fixed pile structures that support the photovoltaic modules.
Floating photovoltaics and agrovoltaics
Work continued to acquire expertise in floating photovoltaic technology and new solutions for
agrovoltaics, resulting in a portfolio of large-scale projects.
Hydroelectric
generation
SHERPA project
To extend and/or adapt the operating range of hydroelectric plants to include flows below
the technical minimum, without affecting their service life, economic viability and environmental
and social impact, thus maximising the use of this key technology for system flexibility.
HYDROSES and AVANHID projects
These projects allow technological developments and innovative solutions to be incorporated to
optimise the performance of hydroelectric plants in reversible operation.
Energy storage
and batteries
ATENA+ project
The aim is to develop Na-ion cells and modules for hybrid storage systems with renewables
or in a stand-alone configuration.
Hybrid batteries
Deployment with renewable facilities continues, most notably with six projects to be carried out
in existing photovoltaic plants.
Operation and
maintenance
AEROEXTENS and NEWPREDICT projects
Development of the ASPA system continues with digital modelling of each turbine using AI, a
diagnostic matrix, a more efficient and continuous predictive maintenance model, and in
FEM and aeroelastic models to analyse wind turbine behaviour.
PERAL project
New voltage control strategies are developed that allow a unified approach to the use of
synchronous generation resources, asynchronous generation, storage systems, flexible demand
(electrolysers) and self-consumption, overcoming the specific limitations of each technology.
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System integration: Smart grids and digitalisation
Smart grids
Global Smart Grids Innovation Hub (GSGIH) project
Pioneering centre and global benchmark for innovation in smart grids, with various actions:
| “Product developed in the GSGIH”. Product certified by AENOR as a label for
products developed in the GSGIH ecosystem.
| Innovation Data Space (i-DS). An open data space.
| Smart Grid Academy.
Architecture and digitalisation of the low-voltage grid
Continue to develop new equipment to improve the efficiency, security and reliability of the grid.
BeFlexible project
Project in the area of grid flexibility that promotes the participation of prosumers.
MICROFLEX project
It aims to maximise the use of microgrids in island mode to improve the quality of supply by
combining grid batteries and distributed resources.
ASTRA-CC project
To design a public DC power grid architecture that facilitates the connection of distributed
resources.
GEM-Global
Energy
Management
FLEXENER project
The project has been successfully completed, investigating new solutions for the integration
of a 100% renewable, flexible and robust electrical system.
Virtual Power Plant (VPP)
With regard to the management of distributed generation and demand resources, the VPP
is making progress in the integration of assets, with a particular focus on the design of
aggregation services for successful participation in the electricity market, such as the Demand
Response Service (DRS).
ONESYSTEM and DEFINER projects
These projects aim to develop advanced models to integrate different energy vectors and
renewables, and demand-side management tools.
Digitalisation
IA4TES project
More than 60 use cases were developed that rely on AI technologies to facilitate the
transformation of the electricity sector towards predominantly renewable generation, a market
environment with active customers, all supported by a smart, secure and expandable grid.
Digital Boost project
Based on the use of technology platforms, the modernisation of core systems and the use of
digital technologies to foster collaboration and engagement among employees. This will be
facilitated by the accelerated adoption of cloud technologies and the use of generative AI. In
addition, a component has been added to ensure that technology solutions comply with the
various compliance, audit and risk frameworks.
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Electrification of demand
Electrification
of transport
TANGERINE project
The strategic alliance between Iberdrola and BP Pulse has bolstered the project, funded under
the CEF Transport call, for the installation of 1,220 high-power charging points.
URBANHUB project
Commissioning of a very high performance charging hub that integrates a second-life storage
battery.
Electrification of heavy transport
Development of the first stations for heavy electric vehicles with chargers equipped with the
new MCS (Megawatt Charging System) technology
Onshore Power Supply (OPS)
Focuses on the implementation of an innovative infrastructure that will allow the supply of
renewable energy to ships moored in the ports of Pasaia, Vigo and Alicante.
Electrification
of heat
Industrial electrification
Progress has been made on proposals to decarbonise production processes at Bayer Asturias
and BASF Tarragona, among others.
Renewable Heating and Cooling Network project - Palencia
It promotes the decarbonisation of urban heating, cooling and hot water systems through
heating and cooling networks powered by electrification and other renewable energy sources.
Along this line, the pioneering Renewable Heating and Cooling Network project - Palencia
stands out, which will deliver heat by the end of 2025.
Self-
consumption
Autogrid Flex
A new platform developed in collaboration with Schneider Electric and adapted to self-
consumption, delivering smart customised solutions based an innovative energy forecasting
and distribution system.
Energy
management
Certificate management platform
A platform has been launched in partnership with Balantia to provide a comprehensive energy
certificate management system.
Microgrids as a Service
Development and deployment of Microgrids as a Service, including solar, batteries and energy
management software.
Green hydro
Benicarló plant
Work continued in 2024 on the construction of the 1.25 MW green hydrogen plant in Benicarló,
Castellón, which is expected to be commissioned in 2025.
Castellón GH2 project
Progress is also being made on this project, which consists of developing a 25 MW PEM
technology electrolysis plant for green hydrogen production at the bp refinery in Castellón to
replace grey hydrogen.
AVOGADRO project
This project was completed with excellent results in the research and development of
technological solutions in the value chain for renewable hydrogen gas refuelling stations for
heavy vehicles.
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Sustainable business
Iberdrola has been integrating sustainability aspects into its strategy and management for more than 20
years, making it a pillar of growth for the Company.
Stakeholders
The Group companies work to increasingly engage its stakeholders in all of the Company’s activities and
operations. Iberdrola’s Stakeholder Engagement Policy, approved by the Board of Directors in February
2015, defines the Company’s stakeholders as “those groups and entities whose decisions and opinions
have an influence thereon and who, at the same time, are affected by the Iberdrola Group’s activities”.
The value chain comprised of Iberdrola’s businesses means that there is a large number of these groups
and, therefore, the Company has grouped them into categories of stakeholders. As a result of the process
of reflection with the Company’s various areas and businesses and with external experts in the field, six
categories of stakeholders have been established, as shown in the following chart:
Stakeholders
Principles
Objectives
| Iberdrola people
| Shareholders and
financial community
| Customers
| Supply chain
| Community
| Environment
| Responsibility
| Transparency
| Active listening
| Participation and
engagement
| Consensus
| Collaboration
| Continuous
improvement
| Promote stakeholder engagement
through a strategy of strong
commitment to the communities in
which Iberdrola does business, and
the creation of shared sustainable
value for all stakeholders
| Respond to the legitimate interests of
Iberdrola’s stakeholders
| Build trust among stakeholders to
create long lasting, stable and robust
relationships
| Encourage recognition by
stakeholders of Iberdrola’s
commitment to diversity
| Contribute through all of the above to
maintaining corporate reputation in
the various countries and businesses
To meet its objectives in this area, Iberdrola has a Global Stakeholder Engagement Model based on the
AA1000 Stakeholder Engagement Standard 2015 (AA1000SES, 2015), on the AA1000 AccountAbility
Principles 2018 (AA1000AP, 2018), and on its four principles of inclusion, relevance, responsiveness and
impact. This Model aims for all areas and businesses of Iberdrola to have an in-depth understanding of
their Stakeholders; have suitable channels for communicating with them; analyse their expectations, and
establish appropriate action plans to minimise and mitigate potentially negative impacts while maximising
the potentially positive ones for Stakeholders (and the related risks and opportunities for the Company).
Iberdrola’s ambition is for the Model to be gradually and effectively implemented at all of the Group’s
facilities. The Company has therefore committed to implementing the Model at 90% of its facilities by
2030 through one of its global sustainability targets, which had already reached 80.1% at the end of 2024.
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Prioritisation is established as the basis for redefining, if applicable, the strategies and levels of
communication and engagement with the various Stakeholders and Sub-stakeholders. This strategy
and the levels are determined based on the degree of impact that the Company has on its stakeholders
and that of the stakeholders on Iberdrola.
1
2
3
4
5
6
7
8
9
10
Stakeholder
map
Engagement
Model
List of relevant
issues,
risks and
opportunities
Action Plan
IDENTIFY
Stakeholders
Established by the policy
SEGMENT
Stakeholders by
categories
Based on daily
management criteria
PRIORITISE
Stakeholder categories
According to impact and
influence on value creation
DEFINE
levels of engagement
Information, consultation,
interaction or collaboration
REVIEW
channels for
engagement
Evaluate existing channels
and create new ones
DESIGN
engagement model
Best suited to each
Stakeholder category
IDENTIFY
relevant issues
For both Iberdrola and each
Stakeholder category
IDENTIFY
risks and opportunities
That help create value for
Iberdrola and its Stakeholders
DESIGN
Action Plan
Initiatives in relation to
the engagement model
and relevant issues
MONITOR
and Report
To analyse outcomes and
report on performance
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Relationship channels and significant issues
Iberdrola keeps the relationship channels with its stakeholders updated and makes continuous efforts
to identify the issues that are most important to each of them. Some channels and topics are specific
to each geographical area and stakeholder class, but many of them are cross-cutting, as shown below:
General channels
Usage
frequency
Significant overarching
issues
| Telephone, email,
website and intranet
| Constant
| Ethics, integrity and transparency
(accountability to stakeholders
and society)
| Climate emergency, energy
transition and industrial alliances
| Innovation, artificial intelligence,
digitalisation and cybersecurity
| Electricity prices
| Vulnerable customers and
universal access to energy
| Strategy, investment plans,
financial perspectives and
regulatory changes
| Respect for human rights, local
communities and fair transition
| Sustainability performance
| Action for biodiversity and nature
| Meeting and interviews
| Periodic
Iberdrola Stakeholders’ Hub
The Company has a stakeholder coordination body made up of the parties responsible for all of
Iberdrola’s stakeholders and businesses. This hub meets on a regular basis and its main purpose is to
share experiences and best practices in the area of stakeholder engagement. In 2024, numerous best
practices were identified and shared, including the following:
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Good practices
Spain
New Customer App Functionality - Chat “recovery”
Iberdrola Spain has launched an innovative tool that allows customers to self-manage and sign up for
a plan that fits their needs. This tool offers a personalised way of addressing customers’ main queries,
allowing greater autonomy in choosing when they wish to interact with the bot.
United
Kingdom
National Planning Improvement Hub in Scotland
The Scottish Government has established a hub to provide expertise to promote green energy
development and opportunities in Scotland. Against this backdrop, ScottishPower proposed potential
solutions to the challenges associated with permitting, a measure that was welcomed and appreciated
by the Scottish Government. The hub will initially focus on accelerating the process of granting permits
for hydrogen projects until March 2025. In the future, this team will focus on other types of development,
including wind energy, thus benefiting other ScottishPower initiatives.
United
States
Indigenous communities
In the United States, state regulators are increasing requirements related to engagement and impacts,
including those affecting indigenous peoples. An example of this is New York State’s policies and
requirements, which are aligned with the UN principle of Free, Prior, and Informed Consent (FPIC),
recognising the need for projects to consider the direct and indirect impacts on indigenous peoples.
Brazil
Social Working Group
The experience of the Social Working Group of Neoenergia’s Sustainability and Renewable Energy
Department involves more than 10 technical and corporate areas and aims to create a space for
exchanging ideas and making decisions to continuously improve human rights due diligence.
The benefits of this group include preventing and reducing impacts, managing grievance mechanisms,
engaging stakeholders and improving relations with communities. The working group focused on
human rights involves 300 leaders, managers, analysts, technical teams (wind, solar and hydro) and
corporate areas and has become a benchmark for the Civil Office of the Presidency of the Republic.
Mexico
Customer loyalty programme
This programme is designed to strengthen long-term relationships with customers and provide greater
value by focusing completely on the customer experience and seeking to directly impact them.
The actions undertaken by the programme most notably include Smart Solar opening ceremonies,
where the achievement of important sustainability goals is celebrated with customers. Visits to facilities
are also organised, inviting customers to learn about Iberdrola’s power generation operations, which
fosters engagement and relationships.
In addition, personalised events are held, such as Energy Day and the annual Iberdrola Awards, which
recognise customer loyalty to the Company.
In addition, at the last meeting of 2024, a team of experts presented the key messages and the importance
of Community Engagement to the members of the Stakeholders’ Hub.
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Sustainability Targets
Iberdrola identifies the material aspects for its stakeholders, and for the Company itself, by carrying
out a double materiality study that takes into account the impact of the Company’s activities. Since the
Company has an active role in the creation of a sustainable energy model and the creation of sustainable
value for its stakeholders, it has established its sustainability roadmap through its sustainability targets.
These targets are broadly linked to the Group’s Ethical and Basic Principles of Governance and
Sustainability and to the corporate policies that make up these principles. They reinforce the Company’s
strategy and its commitment to sustainable development, the social dividend and the creation of shared
value with all stakeholders, which are primarily embodied in the Purpose and Values of the Iberdrola
Group, as well as in the Sustainable Development Policy and the Stakeholder Engagement Policy.
The Company updated its Sustainability Targets in 2024. These targets are based around five pillars
where environmental, social, governance and financial aspects converge, and seek to structure actions
along the same lines as the Group’s Ethical and Basic Principles of Governance and Sustainability.
Boosting electricity
as a clean, autonomous, local,
stable, safe and competitive
source of energy
| Strengthening
human and
social capital
| Working to ensure
a sustainable
value chain
| Keeping our
culture of ethics,
transparency and
good governance
| Protecting nature
and fostering an
efficient use of
resources
The Company’s main sustainability targets are structured around these five priorities and are set out
below:
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2024
2025
2026
2030
Electricity as a clean, autonomous, stable, safe and competitive energy source
Green
electrification
Carbon Neutral in electricity
generation in 2030
Specific emissions (global mix)
(gCO2/kWh)
65
60
55
Carbon Neutral (1)
Net Zero in scopes 1, 2 and 3
before 2040
In progress
Comply with SBTi milestone (2)
NOx emissions
kg/MWh
0.157
0.17
0.15
< 0.10
Storage capacity
Cumulative installed storage capacity
(GWh)
108.2
108
118
136
Innovation and
digitalisation
Smart grids
% automation of high and medium
voltage assets
81.4%
83%
85%
90%
Investment in R&D
Million euros (annual)
402.5
420
443
550
Cybersecurity assessments
Number of annual assessments or
external verifications
3,224
2,000
2,000
2,000
Sustainable finance
CAPEX Aligned
% of Taxonomy aligned CapEX (3)
89%
~90%
~90%
~90%
Sustainable Financing
% of total financing
94%
Min. 80%(4)
Min. 80%(5)
-
Ensuring a sustainable value chain
Sustainable supply
chain
Purchases from sustainable suppliers
% of total purchases
93%
>= 85%
>= 85%
>= 85%
Percentage of sustainable suppliers
% of main suppliers subject to
sustainable development policies and
standards
88%
>85%
>85%
>85%
Customers
Quality of supply
Reduce the Global SAIDI (6)
-12.3%
-10%
-11%
-16%
Smart solutions portfolio
Millions solutions
16
18
19
21
Customer Accessibility Solutions(7)
Number of solutions
50
62
63
63
Digital customers
% of total commercial customers
72%
75%
76%
80%
(1) <10 gCO2/kWh
(2) Interim target certified by SBTi (Science-based targets initiative).
(3) Organic CapEx; according to European Taxonomy Regulation.
(4) Average sustainable financing for 2023-25 period.
(5) Average sustainable financing for 2024-26 period.
(6) Calculated against the 2019-21 period average
(7) Including Neoenergia solutions from 2023 onwards.
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What steps are we
are we taking?
Period-end
Group performance
Electricity as a clean, autonomous, stable, safe and competitive energy source
84% own production associated with emission
free technologies.
38 (gCO2/kWh) in Europe
5 times lower than the industry average
Green
electrification
Green light for Iberdrola's new reversible
hydroelectric pumping station in Alcántara
(Spain)
108.2 GWh of cumulative installed
storage capacity
Iberdrola Innovation Middle East has developed
a battery assessment tool to help improve the
management and optimisation of energy storage
systems.
EUR 402.5 million (per year)
in R&D investment.
Innovation and
digitalisation
EUR 6,281 million gross investment in networks.
~80% Smart grids
Iberdrola closes the largest issue of green bonds
in its history, for EUR 2,150 million, to continue
its growth in the United Kingdom.
94% sustainable financing
relative to the total.
Sustainable finance
Ensuring a sustainable value chain
Supplier of the Year Awards in Spain, with a
special Sustainability category
Iberdrola recognised at the Alcance 3.0 Awards as
the best in the sector for promoting sustainability
in its value chain.
87.9% of key suppliers are
sustainable
Sustainable supply
chain
Iberdrola has been awarded four Excellence
Awards in Customer Relations by the Spanish
Association of Customer Relations Experts
(AEERC).
50 accessible solutions
Customers
Iberdrola will invest more than EUR 290 million
to improve the customer experience through
digitalisation, among other measures.
Overall SAIDI improvement
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2024
2025
2026
2030
Nature and efficient use of resources
Specific water consumption reduction
% Reduction of water consumption
intensity (1)
-12.5%
-32%
-36%
-63%
Blade and Solar Panel Recycling
% of blades and panels recycled of total
blades and panels dismantled (2)
98.4%
50%
50%
100%
Biodiversity
preservation
Conservation, restoration and
plantation of trees
Number of trees (million) and No Net
Deforestation in 2025
5
8
10
20
Net positive impact in 2030
% assets with biodiversity assessment
and neutrality plan
11%
20%
25%
100% (Net positive)
Strengthening human and social capital
Equal opportunities
External EDGE plus certification (3)
Attainment
In progress
In progress
√
-
Safety and health
Wellness Plan
Global deployment
Implemented
In progress
Certification
-
Occupational safety
TRIR (reduction) (4)
-19%
-10%
-13%
-21%
Employee skills
improvement
Green skilling
Program deployment
√
√
√
-
Training in cybersecurity and
protection of information
Annual hours of training completed
96,417
63,000
64,480
68,000
Community
development
Beneficiaries of the “Electricity for
all” program
Millions of beneficiaries (cumulative)
13.8
14
15
16
Beneficiaries of the Foundations
programs
Millions of annual beneficiaries
6.1
8
8
10
Corporate volunteering
No. of annual volunteers (thousands
of employees and companions)
22.8
19
19.5
23
Maintaining our culture of ethics, transparency and good governance
Corporate
governance
Corporate Governance
Maintain best practices
√
√
√
√
Composition of the
Board of Directors
Percentage of independent directors
Over 50%
√
√
√
√
Varied composition of the Board
of Directors
Promote
√
√
√
√
Compliance
Compliance System
Obtain/maintain (yearly)
√
√
√
√
Human
rights
Human Rights Due Diligence
Continuous revision of the DD System
√
√
√
√
Stakeholder
engagement
Stakeholder Engagement Model
% of facilities with the model
implemented
80.1%
70%
75%
90%
(1) Calculated against the base year 2021
(2) Includes blades and panels out of operation with a destination decision different from disposal.
(3) EDGE Plus equal opportunities certification by 2026
(4) Calculated against the base year 2021
Efficient use of
resources
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What steps are we
are we taking?
Period-end
Group performance
Nature and efficient use of resources
Iberdrola selects EnergyLoop to recycle blades
for its first repowering project in Spain.
98.4% of recycled blades and panels
Efficient use of
resources
ScottishPower Renewables restores more than
1,000 hectares of wetlands at Whitelee wind farm.
11% of assets with a biodiversity
assessment and neutrality plan
Biodiversity
preservation
Carbon2Nature continues to make progress in
its mission to capture more than 60 million tCO2
in natural sequestration sinks.
5 million trees
Strengthening human and social capital
Iberdrola receives EDGE (Economic Dividends for Gender Equality) certification.
Equal opportunities
AENOR awards the ISO 45001:2018 Occupational
Health and Safety Management System certificate
to Iberdrola España.
TRIR reduced by 19%
compared to 2021.
Safety and health
We launched the Smart Grids Academy, an
international training platform for smart grids.
Iberdrola earns the Top Employers 2024
certification in eight countries for excellence in
its people management practices
More than 95,000 hours
of cybersecurity training
Employee skills
improvement
Iberdrola is working alongside Fundación
Adecco and Fundación Prodis to reduce
barriers to the job market for people with
intellectual disabilities through pro bono
activities.
More than 6 million
beneficiaries in the last year,
21 million in the last 4 years
Community
development
Maintaining our culture of ethics, transparency and good governance
Newsweek ranks Iberdrola as one of the most trustworthy companies in the world
Corporate
governance
86% of external directors and, in particular, independent directors, who have been
selected based on their diverse skills, expertise and professional backgrounds.
Composition of the
Board of Directors
Top score for the second consecutive year in the Ibex 35 ranking for transparency and
good governance in compliance
Compliance
80.1% of facilities with the Stakeholder Engagement Model.
Human
rights
Stakeholder
engagement
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Climate Action Plan
The Company firmly believes that the transition
to a carbon-neutral economy by 2050 is
technologically possible, economically viable
and socially necessary. The energy transition
to a low-carbon economy is a great opportunity
to create autonomy, wealth and jobs, and to
improve the state of the planet and human
health. Over the last two decades, Iberdrola
has invested more than EUR 160,000 million
in networks, renewable energy and storage.
And it will continue with an ambitious investment
plan focused on increasing its installed capacity
in renewable energies: onshore and offshore
wind, photovoltaics, batteries and hydropower,
and electricity grids.
Iberdrola’s Climate Action Plan sets out a
roadmap with the aim of achieving CO2eq
neutrality for Scopes 1 and 2 by 2030, and
net zero CO2 equivalent emissions by 2040.
The Science Based Target Initiative (SBTi) has
certified that this trajectory is consistent with the
objectives of the Paris Agreement. Therefore,
by 2040 absolute emissions from all its scopes
would be reduced by 90% compared to 2020
and residual emissions would be neutralised in
accordance with the highest quality standards.
This Climate Action Plan also constitutes the
Company’s transition plan and describes the
levers and associated activities that contribute
to electrification and emissions reduction of
the economy as a whole, as well as the values
and tools that underpin its implementation and
which respond to the vision of an energy model
in harmony with nature and people.
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Energy transition and Climate Action Plan
Objetive
Drivers
Values
2030
Neutrality in emissions for
scopes 1 and 2
Direct emissions (generation
and other) and indirect
emissions fromelectricity
T&D losses and own
consumption
< 2040
Net-Zero emissions for all
scopes, including 3
Scopes 1, 2 and 3 (rest of indirect
emissions that occur in sources
that are not owned or controlled
by the company (e.g., gas sales,
purchase of electricity for sale
to the final customer, generation
of electricity for third parties,
suppliers)
Alliances for green technologies and decarbonized technologies
100 %
Renewables
| All energy
zero‑emissions
Green procurement
| 100% green energy
| Suppliers - Projects
for joint reduction of
emissions and use of
“green” products
100 % smart
grids
| Networks more
robust and 100%
digitalised
Green solutions
for customers
| Offer of green
products and
solutions
(electrification,
green H2)
| Economy, industry and
employment
| Inclusive transition
| Universal access to
competitive energy
Positive for
society
| Net positive impact on
biodiversity in 2030
| Circular Economy Model
Positive for
nature
Iberdrola has near and long-term
science‑based emissions reduction
targets consistent with 1.5ºC according
to the SBTi CORPORATE NET-ZERO
STANDARD.
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Levers
The actions identified so far to achieve this
target have an impact on the three emission
scopes:
• 100% smart grids: operating a robust
transmission and distribution grid as a key
pillar of an electrified energy system based on
renewable energy sources. This infrastructure
is fundamental in order to integrate new
renewable capacity into the electricity system
and to absorb increased demand from new
applications: electric vehicles, heat pumps,
data centres, etc.
• 100% renewable: The Iberdrola Group’s
investment plan for the 2024-2026 period does
not contemplate any capital investment in new
carbon-intensive assets, but instead invests
in renewable generation, increases storage
capacity and promotes new technologies (e.g.
hybridisation, long-term storage, etc.).
• Green solutions for customers: contributing
to the gradual electrification of energy
demand, with actions such as the sale of
renewable energy, the promotion of direct
electrification solutions (such as heat pumps),
green hydrogen and other derivatives, a
sustainable mobility plan, key alliances in
green technologies, etc.
• Green purchases: through the acquisition
of renewable energy for own consumption,
on the one hand, and the establishment of
alliances and partnership agreements with its
supply chain to jointly reduce emissions and
to speed up and facilitate the development of
green products, on the other.
• Partnerships in green technologies: These
levers are underpinned by a cross-cutting
lever focused on activating a robust network of
partnerships to advance green electrification
solutions, and by support and collaboration
to establish ambitious approaches to climate
policy and action.
Iberdrola advocates an ambitious and robust
approach to promote the acceleration of
climate action. This approach is undertaken
by exercising globally recognised leadership in
the international climate agenda through very
dynamic participation in the most significant
milestones each year (including the annual
United Nations climate conferences (COP)
and New York Climate Week) and by actively
collaborating and strengthening alliances
with numerous organisations from different
sectors (including international bodies, industry
associations, think tanks, academic institutions,
NGOs). Iberdrola is particularly actively involved
in some of these alliances, contributing to their
strategic approaches and making the viability
of climate solutions visible from a business
perspective. Some particularly relevant examples
are the We Mean Business Coalition (WMBC),
UN Global Compact, Corporate Leaders Group
(CLG), the Ibero-American network of green
growth groups (launched by the Spanish Green
Growth Group), the Community for Climate,
and others. It is also worth noting the very close
collaboration with think tanks, such as Bruegel
and the Real Instituto Elcano in their energy and
climate work branches, and the cooperation with
the United Nations Framework Convention on
Climate Change (UNFCCC), especially in the
framework of the Paris Committee on Capacity-
Building network.
Iberdrola also collaborates in alliance with
UNICEF to help vulnerable young people
take advantage of opportunities arising from
renewable energies and the transformation
of the energy model. This alliance has been
in operation for more than two years in Spain
and internationally, promoting training and
employability opportunities in sectors related
to the green economy. Therefore, together
with public authorities, suppliers, NGOs and
academic institutions, training courses are
being designed and carried out, offering work
placement opportunities and the possibility of
employment, and promoting the creation of
start-ups in the green economy.
Values
Due to its cross-dimensional nature, the Climate
Action Plan is based on the aim of making
climate action compatible with the general
social interest and contributing to sustainable
development, so as to contribute to building
an energy model in harmony with nature and
human beings. These two dimensions are the
values that underpin the plan, ensuring positive
impacts on nature and society.
In this regard, the Convive Programme in Spain
stands out, a programme promoting continuous
improvement that integrates all the initiatives
and alliances that are being carried out in the
development of renewable energies and that
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contribute to socio-economic development, the
protection and improvement of biodiversity and
collaboration in alliances with other agents. The
second edition of the Convive Awards was held
in 2024 with the aim of recognising the best
third-party initiatives for coexistence between
renewable energies, nature and people.
Regarding the progress made in the
decarbonisation roadmap, Iberdrola deploys
resources, tools, and projects that seek to
maximise the social and economic opportunities
of climate action, managing potential impacts
on communities. These initiatives most notably
include the Lada and Velilla Citizen Innovation
Platform project launched in 2020 to accompany
the closure of Iberdrola’s plants in Lada and
Velilla and to channel entrepreneurship initiatives
that act as a tool to accelerate collaboration
processes between citizens, public entities, and
companies.
Reduction of emissions
The implementation of the plan demonstrates a
strong, ongoing reduction in the intensity of direct
emissions, from 250g CO2/kWh in 2010 to 65g
CO2/kWh in 2024, a reduction of 74%. Emissions
intensity has been reduced by 34% since 2020,
the reference year for the 2030 target. This trend is
aligned with the fulfilment of the published targets
of 60g CO2/kWh by 2025, 55g CO2/kWh by 2026
and less than 10g CO2/kWh by 2030.
Absolute emissions stood at 42.8 Mt CO2eq in 2024
(calculated using the location-based method). With
respect to the aspirational target of achieving net
zero emissions by 2040, by the end of 2024, an
emissions reduction of more than 40% has been
achieved compared to the comparable base year
2020. This reduction is in line with achieving the
target of a 65% reduction by 2030.
The following graphs show the distribution of Scope
1, 2 and 3 emissions in 2024.
Scope 1 CO2 emissions
by geographic area
Spain
United Kingdom
United States
Brazil
Mexico
IEI
1%
41.9%
1.2%
21.1%
0.3%
34.5%
Scope 2 CO2 emissions
by geographic area
Spain
United Kingdom
United States
Brazil
Mexico
IEI
1%
17%
13%
27%
42%
Scope 3 CO2 emissions
by type
Fuel and energy related activities
(not included in Scope 1 or 2)
Use of sold products
Goods and services purchased
Other emissions (Scope 3)
0.3%
11%
35.2%
53.5%
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Iberdrola is a global leader in the energy transition and the fight against climate change within the
energy sector.
Iberdrola’s transformation towards climate neutrality is part of the strategy to achieve a more efficient,
competitive, clean and sustainable economic system, and consolidates the Company as the largest
electricity company in the world without coal production, with its CO2 emissions standing at
38 g/kWh in Europe, five times less than the average for the European sector.
Specific CO2 (kg CO2/MWh) emissions from facilities in Europe (1)
81.3% lower emissions than european peers.
626
567
472
401
301
301
235
221
143
113
69
38
37
36
12
11
9
8
0
100
200
300
400
500
600
700
The average
“European
carbon factor”
was 204 kg CO2/MWh
Drax
Verbund
PVO
Statkraft
EDF
Orsted
Iberdrola
Vattenfall
Engie
EDP
Naturgy
Enel
A2A
CEZ
EnBW
PPC
RWE
EPH
In addition, the Group has reported a set of targets in the context of the Group’s Sustainability Targets,
which also serve as supplementary metrics to the monitoring of the climate action plan.
(1) The figure of 38 g CO2 in this chart refers to the emissions generated by Iberdrola’s facilities in Europe during 2023. The data on the average
European carbon factor and the data for the other companies are obtained from Climate Change and Electricity: European carbon factor. PwC France.
Nov. 2024 and, in the case of companies, include only the European area for 2023.
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Supply chain
Products and services for our customers
Sustainable value chain
“Iberdrola España Supplier of the Year Awards 2024”, presented in Valencia (Spain)
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The Group adopts and promotes a series of main principles of conduct in its relations with suppliers
based on business ethics and transparency in purchasing equipment and materials and in contracting
work and services, while seeking continuous improvement and mutual benefit, and promoting
sustainability, innovation and development activities.
In addition, it aims to promote sustained, accessible and sustainable economic growth, ensure productive
and dignified employment, guarantee occupational health and safety of the professionals who
participate in the value chain, while raising awareness and establishing controls to mitigate the risks
inherent in the work carried out. The Company therefore implements the necessary mechanisms to
ensure that purchasing decisions guarantee, in all cases, a balance between technical suitability, quality,
accessibility, occupational safety and cybersecurity, respect for the environment and price, as well as the
sustainability and quality of the supplier as a basic condition for the contribution of value, and establishes
supplier selection processes that meet criteria regarding objectivity, impartiality, non‑discrimination
and equal opportunity, ensuring compliance at all times with the Ethical and Basic Principles of
Governance and Sustainability of the Iberdrola Group, regardless of its own interests or those of third
parties, and promotes compliance by suppliers with contractual terms and conditions and with applicable
legal provisions.
Supply chain
In 2024, Iberdrola placed orders with more than
19,000 suppliers. The Group’s supply chain is
managed through two different processes:
• The procurement of equipment and materials
and the contracting of works and services, which
is the responsibility of the Group’s Purchasing
and Services Division.
• The procurement of fuel, the responsibility of the
Electricity Production and Customers Business.
General supply of equipment, materials,
work and services (€M)
939
210
1,746
4,469
2,972
2,469
>12,000
€M
Spain
United Kingdom
United States
Brazil
Mexico
IEI
Sustainability in the supply chain
Iberdrola has the responsibility and the ability to motivate its suppliers to improve their environmental,
ethical and social performance through actions that promote excellence in their management of
sustainability.
Iberdrola’s commitment to sustainability extends to its supply chain and is embodied in two ambitious
goals (see the section on Sustainability Targets):
• To ensure that more than 85% of the Group’s
main suppliers are subject to sustainable
development policies and standards by
2025. This target is included in the target
structure of the 2023-2025 Strategic Bonus.
• To achieve a procurement volume of 85% or
more from suppliers subject to sustainable
development policies and standards.
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To achieve these goals, Iberdrola uses a global supplier management model as the basis for promoting
a comprehensive and unified corporate approach to the responsible management of suppliers, regardless
of their geographical location, economic activity or the territorial scope of the purchases, while taking
into account any local requirements that may exist in the supplier’s country of origin.
Supplier classification and screening
Iberdrola has developed and implemented supplier classification and screening processes that are
applied during supplier registration and in the purchasing process. The purpose is to identify potentially
critical suppliers based on risk criteria established in the Purchasing Policy and the Procurement Risk
Guidelines.
These classification and screening processes are the initial step in identifying suppliers to be evaluated.
Supplier sustainability evaluation model
Once these potentially critical suppliers have been identified through the classification and screening
processes based on the different risk criteria, they are evaluated during the purchasing process to
determine their potential risk.
>€17,000 M
allocated to suppliers
evaluated according to
the model
100%
of major
suppliers
of general supplies
(new and existing) are
evaluated in accordance
with environmental and
sustainability standards
~€16,500 M
allocated to suppliers
that exceed the
sustainability level
required by the Group
(96% of amount
awarded)
(93% of total amount
awarded)
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This evaluation measures the supplier’s performance in highly significant attributes based on three
dimensions:
| Environmental policy
| Documented and/or certified environmental management
system (ISO 14001 or equivalent)
| Documented and/or certified greenhouse gas calculations
(ISO 14064 or equivalent)
| Greenhouse gas reduction measures or targets
| Good water use management measures
| Documented and/or certified quality system (ISO 9001 or
equivalent)
| Documented and/or certified health and safety management
system (OSHAS 18001, ISO45001 or equivalent)
| Documented and/or certified sustainability management
system (ISO 26000, IQNet SR10, SGE21, SA8000, NP 4469
or similar)
| Ensures there is no involvement in, or benefit from, any form
of child or forced labour
| Ensures that recruitment practices are fair and that all
workers receive a living wage
| The company has a policy in place that promotes equality
and diversity
| Participation in social activities to support local communities
where the company operates
| Corporate social responsibility (CSR) policy
| In-house code of ethics or conduct and compliance system
| A system for assessing and rating suppliers and third
parties based on ESG criteria
| Communication channels with its stakeholders
Environmental
score
40%
Social score
30%
Governance
score
30%
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Iberdrola obtained the Sustainable Procurement
Strategy certificate awarded by Aenor
(ISO 20400:2017)
Mechanisms for dialogue with suppliers
The supplier survey is one of the main mechanisms for dialogue between the Company and its suppliers.
This survey is conducted every two years with suppliers in all areas and makes it possible to identify
those aspects of the Iberdrola Group and its procurement process and tools that are most valued by
suppliers, and to identify those areas with opportunities for improvement in order to establish medium-
and long-term action plans. The last survey, carried out in 2024, showed that supplier satisfaction levels
have been consolidated over the years.
Other supply chain communication initiatives:
Iberdrola Supplier of the Year Awards 2024 in the five main countries
where it operates
Support for small and medium-sized enterprises, such as the “Sustainable
Suppliers” training programme or the SMEs + Sustainable Day.
Investment of more than EUR 200 million globally in the Iberdrola Ventures
Programme - Perseus
For more information on how sustainability is integrated into supplier management and relationships,
see the “Contribution to sustainability” section of the corporate website.
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Products and services for our customers
Iberdrola strives to constantly develop its products and services to provide better solutions for its
customers: more flexible, more efficient, more agile and of better quality, to improve their experience
with the Company.
To meet their demands, the Company has adopted an ongoing commitment to innovation, investing
in the development of technologies and projects aligned with the fundamental vectors of the
transformation of the energy sector.
Electrification
Increased
connectivity of
customers
Technological
progress
More and smarter
consumer
solutions
More and smarter
grids
More and smarter
renewable energy
Its commitment to the ongoing improvement of its products and services is shown by the targets that
the Company has defined in this area, which are based on the fundamental cornerstones of quality,
sustainability and digitalisation. These targets are defined in detail in the Sustainability Targets section.
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Safe and efficient electricity supply
Constant improvement in the quality of supply is one of Iberdrola’s fundamental goals. To maintain
and improve an outstanding level of quality, the Group invests in new electricity infrastructure and in
the maintenance and renewal of existing infrastructure in all countries in which it does business, and
continues to make progress in its ambitious digitalisation plan of its electricity grids.
To meet its objectives in this business, Iberdrola monitors the quality of the service provided in the various
countries, measuring it on the basis of the frequency and duration of interruptions in supply, as reflected
in the following table.
Average power outage duration
2024
2023
Spain(1)
TIEPI (min)(2)
< 34 min
< 36 min
United Kingdom
CML (min)(3)
28.5
30.2
United States
CAIDI (h)(4)
1.9
1.8
Brazil
DEC (h)(5)
9.2
9.7
Frecuencia de los cortes de suministro eléctrico
2024
2023
Spain
NIEPI (Nº)(6)
<0.7
< 0.7
United Kingdom
CI (ratio)(7)
29.8
33.4
United States
SAIFI (index)(8)
1.3
1.2
Brazil
FEC (frecuency)(9)
4.0
4.6
The percentage of the electricity(10) served through the Group’s smart grids is close to 100% in Spain,
71.8% in the United States and 66.2% in the United Kingdom.
(1) Quality data for Spain (NIEPI and TIEPI) include commercially sensitive information.
(2) TIEPI: Installed Capacity Equivalent Interrupt Time.
(3) CML: Customer Minutes Lost Per Connected Customer.
(4) CAIDI: Customer Average Interruption Duration Index.
(5) DEC: Equivalent Duration of Interruption by Consumer Unit.
(6) NIEPI: Installed Capacity Equivalent Interrupt Number.
(7) CI: Customer Interruptions per 100 Connected Customers.
(8) SAIFI: System Average Interruptions Frequency Index.
(9) FEC: Equivalent Frequency of Interruption by Consumer Unit.
(10) In the case of Spain and the United States, the data has been reported by the Networks Business; in the case of the United Kingdom, the data
has been reported by the Wholesale and Retail Business.
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Digital, intelligent and innovative solutions
(1) Not all products are offered in all geographical locations in which the Company operates
Thanks to digitalisation and investments in R&D, Iberdrola sells a wide range of products and services
that promote efficiency, energy savings and care for the environment, while focusing on customers,
providing them with greater connectivity and decision-making capacity. Iberdrola offers smart and
innovative solutions in the residential and industrial areas.
The Smart solutions for residential customers within the Group’s current portfolio (1):
| Smart Mobility: a solution for electric vehicles including installation and management of the
charging infrastructure, as well as a customised contract for the supply of clean energy that is
10 times cheaper than fuel.
| Smart Solar: a solution for photovoltaic self-consumption with the customised installation of
solar panels, comprehensive maintenance and payment facilities.
| Smart Home: services aimed at improving energy efficiency and savings, with unbundled
access to consumption for optimal management.
| Smart Services: electrical services for a Smart home (electrical emergencies, appliance
repairs, electrical DIY, etc.).
| Smart Clima: heating and cooling solutions using different systems, including aerothermal
energy.
It also offers different options for customisation of rates, as well as online tools to maximise energy
efficiency, simulating consumption and the most appropriate rates. Similarly, the Group also offers various
apps so that its customers can, for example, manage their energy consumption, send meter readings,
obtain live help, locate and reserve charging points for their electric vehicle, and select the most convenient
payment method according to each country, prioritising digital payments.
The package of services for industrial customers includes: Industrial Heat —electrification of industrial
processes— and, as in the residential sector, Smart Mobility, Smart Solar and Smart Climate.
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Circular economy and efficient use of resources
Biodiversity
Nature and efficient use of resources
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More than 20 years ago, Iberdrola established a vision that an energy model committed to nature and
responsible use of resources, where the production of clean energy, the creation of smart grids through
digitalisation, storage as a key technology that guarantees accessibility to markets and the development
of smart products for our customers, contributes to the creation of environmental, social and economic
value.
To guarantee the “Iberdrola, Positive with Nature” commitment, the Company bases its work on three
strategic pillars:
• Climate Action Plan: establishes an ambitious
roadmap aimed at achieving zero net CO2
equivalent emissions by 2040. This Plan
describes the levers, actions and associated
metrics that contribute to the decarbonisation
of Iberdrola’s businesses and promote the
electrification of the economy.
• Biodiversity Plan: sets a goal for a net
positive impact on biodiversity by 2030 and
envisages mechanisms to measure, act and
support transformation to curtail and reverse
biodiversity loss.
• Circular Economy Plan: defines the work
guidelines and targets that will steer the
Company towards reducing the use of raw
materials, including the efficient use of water,
advocating a greater use of renewable
materials, improving the efficiency of our
processes, and making products and services
available to our customers that help them to
responsibly use resources.
The Group’s commitment to nature and the
responsible use of resources is reflected across
its entire value chain through these three pillars.
Climate Action Plan
- Carbon neutral by
2030 (generation and
distribution)
- Zero emissions by 2040
(all activities)
Circular Economy
Plan
- Blade recycling
Biodiversity Plan
- Net positive impact on
biodiversity by 2030
- No net deforestation by
2025
▌Action:
▌Based on:
1
Generation of
electricity from
renewable energy
1
Smart grids and
efficient energy
storage
1
Electrification
of demand
Innovation is the lever that enables Iberdrola to approach all these challenges and launch the relevant
action plans to benefit from opportunities as they arise. Innovation makes it possible to find solutions
to problems that currently seem unsolvable, and to discover more efficient ways to carry out existing
activities.
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Circular economy and efficient use of resources
Iberdrola addresses the challenge of the circular
economy through three pillars: promoting the
efficient use of resources; using secondary
materials, together with circular design and
improved efficiency in processes and services,
and with the aim of reducing our impact on the
consumption of materials, mainly natural gas; and
minimising the generation of waste, always
applying the principle of waste hierarchy.
Iberdrola’s management model is approached
through the following areas of activity:
1. Business model based on the efficient
generation, storage, transport and distribution
of energy. This translates directly into a
reduction in the use of fossil fuels (natural
gas), reduced water consumption and less
waste produced.
2. Value chain: Working with our suppliers to
provide Iberdrola with products and services
with higher rates of secondary raw materials,
lower energy consumption and better reuse
and recycling rates, and making products
available to our customers that guarantee
responsible consumption of resources and
minimise fossil energy demand (green energy,
green H2 and Smart solutions, etc.) that
improve energy efficiency.
3. Life cycle of our facilities: through the use of
innovative technologies that allow us to extend
their useful life (repowering) and to optimise
water use (pumping).
Suppliers
Digitalisation
Energy efficiency
products
Green energy
and mobility
Environmental
Product
Declarations
(EPDs)
Eco-design
Green
procurement
Customers
Focus on
Life Cycle
Analysis
Business
Model
Resource
optimisation
Reduce
resource
consumption
Renewable
electrification
Eficiency
and resource
optimisation
R&D
Environmental
traction
All of these actions are framed within Iberdrola’s Circular Economy Plan, which sets out the global goals
and guidelines to be implemented locally by each of the country subholding companies.
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Main materialss
As part of its commitment to the responsible use
of resources, Iberdrola has significantly reduced
its consumption of natural gas, which it uses
as fuel at its thermal power stations generating
electricity. Renewable production, storage, and
smart grids account for the reduction in the use
of this resource.
Furthermore, Iberdrola’s firm commitment to
the electrification of the economy, especially
in sectors such as transport, residential and
industrial heating, and some energy-intensive
industrial processes, is a fundamental vector for
reducing the use of raw materials in our society.
Natural gas (millions of Nm3)
13,513
5,752
2023
2024
( -57.4% )
Water use
Water is a fundamental and irreplaceable
natural resource in many of Iberdrola’s activities,
especially in the generation of hydroelectricity,
where water energy is converted into electricity
and the same water is returned to the environment,
and in thermal power plants, which rely on water
supply as a coolant.
Aware of this dependence and of the risks arising
from water scarcity, Iberdrola monitors in detail
the use and specific consumption of water,
comparing it from year to year and seeking to
minimise this consumption.
Iberdrola is developing an ambitious plan to
promote pumping at its hydroelectric plants.
Therefore, the construction of three plants with
a storage capacity of 22 GWh was completed in
2024. Construction has also begun on another
plant that will add a further 15 GWh by the end
of 2026.
Waste generation
and management
As part of its commitment to the circularity of its
activities, Iberdrola aims to recycle solar blades
and panels. This is a voluntary target that aims to
ensure that 100% of the decommissioned solar
blades and panels are recycled by 2030.
In addition, Iberdrola has made the following
commitments in relation to waste generation:
• Minimise the generation of waste at source.
• Maximise the reuse, recycling and recovery of
waste.
• Promote awareness-raising campaigns regarding
the minimisation of waste.
All wind repowering projects launched in 2024
will recycle 100% of the dismantled blades. In
addition, the EnergyLoop venture (launched in
2023 together with FCC) continues to develop
advanced industrial solutions for recycling blades.
The treatment plant in Spain is expected to be
operational in the second quarter of 2025.
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Biodiversity
Iberdrola considers biodiversity to be a material
issue for its business model, and has therefore
made respect for species and ecosystems a priority
within its business strategy for more than 15 years.
This is reflected in its Biodiversity Policy, approved
in 2007 and strengthened in 2021.
Iberdrola therefore focuses its operations on
having a positive impact on biodiversity by 2030.
This means that, by that year, its activities will have
contributed to the fight against the loss of species
and the degradation of ecosystems, generating a
positive impact.
In addition, Iberdrola is committed to ensuring
that its activities do not generate net deforestation
by 2025. This commitment applies to both direct
actions and those of the Group’s supply chain.
Iberdrola will therefore contribute to the preservation
and restoration of ecosystems by planting trees.
The Biodiversity Plan 2030 (the “Plan”),
approved in October 2022, establishes the
mechanisms and tools that Iberdrola will use to
achieve this ambitious goal. This Plan applies
to all of the Iberdrola Group’s facilities and
activities and is based on three lines of action:
MEASURING the relationship between operations
and biodiversity, ACTING to reverse the loss of
species and degradation of ecosystems, and
TRANSFORMING society through innovation
and scientific research to disseminate and raise
awareness of the importance of preserving
biodiversity.
Measure
| Biodiversity accounting
framework for ecosystems
and species
| Evaluation of all priority
facilities by 2025 and all
facilities by 2030
Act
| Ensure the application of
conservation hierarchy
| All new projects and priority
facilities in operation will
have a biodiversity neutral/
positive impact plan
| Deployment of nature-
based solutions: Trees
programme, biodiversity
projects
Transform
and lead
| Support actions for
biodiversity on the
international agenda
| Create shared value:
promotion of ecosystem
services, R&D, supply
chain, social awareness,
etc.
Iberdrola publishes its Biodiversity Report every two years, in which the Company presents its
management approach and how its activities interact with species and ecosystems, as well as the actions
carried out in the areas of preservation, knowledge improvement, collaborations with stakeholders, and
awareness-raising.
The Plan is aligned with international frameworks on measuring, assessing and responding to nature-
related risks and opportunities (Taskforce on Nature-related Financial Disclosures - TNFD) and the Nature
Positive 2030 initiative that was created out of the Kunming-Montreal Global Biodiversity Framework
agreement. The Plan is therefore the Company’s mechanism for aligning itself with the demands of the
regulator and its stakeholders.
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Iberdrola has carried out numerous actions in the area of biodiversity protection and preservation that
have been set out in the Group’s 2024 Biodiversity Report or as part of the Convive programme, which
helps to facilitate the coexistence of electricity generation facilities with the traditional agricultural uses in
the territory (agrovoltaic plants, etc.). One example of these actions is the collaboration between Avangrid
and Neoenergia in the preservation of the Lear’s Macaw. This is a species that migrates from the north
to the south of America and is affected by Brazil’s energy transmission networks. Both companies have
worked to create a new construction standard for distribution networks with a voltage of 13.8 kV that has
resulted in the modification of a total of 1,840 structures over a total of 128 km in the Raso da Catarina
region of Bahia state.
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Commitment to human rights and just transition
Our people
Support to local communities
Fiscal responsibility
Corporate reputation
Human and social capital
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The integration of sustainability into operations involves creating shared value for all stakeholders.
The Group focuses on continuously improving the relationship with its various stakeholders and
on respect for human rights in the implementation of all its activities and those of its partners in the
value chain.
Iberdrola collaborates in the development of the communities in which it has a presence through
various initiatives that are driven by the Company itself, its subsidiaries or investees, and its foundations
in the various countries. The Group strives to gradually increase the number of people benefiting from
the initiatives and programmes it supports, thereby having an ever greater positive impact.
The conduct of the different companies in the Group in relation to their stakeholders shapes their
reputation, which in turn influences the decisions that they make regarding Iberdrola.
The regulatory framework is ensured through:
▌ International Human Rights Framework
- Policy on respect for Human Rights of Iberdrola Group
- Specific policies related to relevant human rights issues
- Human rights policies of each of the countries
- Regulations that respond to the most relevant issues that impact on
human rights business areas and corporate holding
- Rules, procedures and protocols that respond to the most relevant
issues that impact on human rights from the business and corporate
areas of the countries
▌ Governance and
Sustainability Framework
- Purpose and Values of the
Iberdrola Group , Ethical and
Basic Principles of Governance
and Sustainability of the
Iberdrola Group , By- Laws,
Sustainable Development Policy.
- Stakeholder Engagement Policy
and Sustainability Policies
▌ Regulatory framework
for Sustainable
Development
- Sustainable Development
Policy
- Innovation Policy
- Sustainable Human
Capital Management and
Anti‑Harassment Policy
- …
The human rights regulatory due diligence framework of the Iberdrola
group is based on:
Recognition of the duty of multinational
companies to respect human rights.
Differences in the laws of the countries in
which the group does business.
1
Governance and
Sustainability
Model.
2
Integration of due diligence
systems into human rights
framework.
3
Three lines of
defense control
model.
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Commitment to human rights and just transition
Iberdrola is firmly committed to defending human rights. It therefore has a set of tools to ensure the
protection of people in order to prevent, mitigate and repair negative impacts in this area. These tools
are aligned with international standards (United Nations Guiding Principles on Business and Human
Rights, OECD Guidelines for Multinational Enterprises, Universal Declaration of Human Rights, United
Nations Declaration on the Rights of Indigenous Peoples, Tripartite Declaration of Principles Concerning
Multinational Enterprises and Social Policy, International Labour Organisation Conventions (including
No. 169), among others).
The Policy on Respect for Human Rights, sets out the mandatory principles in this area:
a. To respect the human and labour rights
recognised in domestic and international
law, and in international standards in those
countries in which human rights legislation has
not reached an adequate level of development.
b. To reject child labour and forced labour or
any other form of modern slavery and to
respect freedom of association and collective
bargaining, as well as non-discrimination,
the freedom of movement within each
country, and the rights of ethnic minorities
and of indigenous peoples in the places in
which it does business.
c. To respect the right to the environment
of all communities in which it operates,
considering their expectations and needs and
understanding access to energy as a right
related to and linked to other human rights.
d. To advance a culture of respect for human
rights and promote awareness-raising in this
field among its professionals.
In addition, the policy includes a commitment to communicate to all stakeholders the importance of
respecting the human and labour rights recognised in domestic and international law and to demand the
same commitment from all business partners.
An ongoing human rights due diligence process
The ongoing human rights due diligence
process is underpinned by the Group’s Ethical
and Basic Principles of Governance and
Sustainability and the control model based on
three lines of defence (prevention, monitoring
and assessment of human rights management).
This is a continuous review process used to
identify and manage the risks and impacts
associated with the performance of all phases
of operations (design, construction, operation,
maintenance and decommissioning of electricity
facilities), taking into account the geographical
and social context and the characteristics of the
supply chain.
As a result of adopting a broad definition of
human rights, which covers a large diversity of
potential issues and impacts, the due diligence
process is based on various subsystems and
procedures (e.g. Compliance, Health and Safety,
Environmental, Purchases and Cybersecurity,
among others). These subsystems are assessed
annually to ensure that they adequately cover
these issues from a human rights perspective.
The ultimate goal is to facilitate the independent
and efficient management of each area from a
comprehensive and cross-cutting viewpoint.
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Identification of impacts
A proactive approach to identifying actual and potential human rights impacts early is the first step in
the due diligence process. The methodology adopts the UNGP recommendations at three levels, which
allows potential impacts, material issues and priority issues in relation to human rights to be assessed.
Ongoing due
diligence process
Identification of
actual and potential
impacts
Adoption of prevention,
mitigation and remediation
measures
Complaints and
grievance mechanisms
Communication
and reporting
Analysis of internal
processes and their
effectiveness in
ensuring respect for
human rights in all the
activities of the group
and in its business
relationships.
Identification of actual and potential impacts
The Company relies on analyses conducted
by independent experts to identify actual and
potential impacts, as well as consultations with
potentially affected groups, an area in which the
Stakeholder Engagement Model plays a key
role, as detailed in section Stakeholders.
In addition, Iberdrola has a human rights risk
map that identifies the main potential risks
in this area, both in the countries in which the
Group does business and in those from which
it sources its procurements. These data are
cross-checked with the list of the main locations
of operation for each business to identify those
facilities where there may be a greater risk of
human rights violations. This map is regularly
updated with the help of independent external
specialists of recognised prestige in the field
and, unlike other generic indices in the market,
it allows the risks inherent to the energy sector
to be weighted and supplements them with the
particular characteristics of Iberdrola’s activities,
providing results that are more in line with the
Company’s reality.
At the project level, potential impacts or risks
are identified in the environmental and/or
social assessment studies (EIA/SIA) prior to
construction of the facilities, which include a
Social Impact Assessment (SIA) in accordance
with the legislation in force in each country and
are approved by the competent public authorities.
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Measured adopted
Iberdrola has developed a global social
management and community engagement
procedure in order to standardise the processes
for identifying and managing the Group’s social
impacts, integrating the perspective of affected
stakeholders. This procedure is a fundamental
tool to properly identify and manage impacts and
to involve the affected parties.
Whenever a risk or potential impact detected,
the various due diligence processes include
the design and implementation of appropriate
prevention and mitigation measures where
applicable. For actual impacts, i.e. those that
have already occurred, due diligence processes
include measures to mitigate or remediate them.
For potential impacts, prevention is about reducing
the likelihood that they will materialise, while for
actual impacts, mitigation refers to measures to
reduce their magnitude and scope. Actions to
prevent and mitigate abuses vary depending on
whether the Company causes or contributes to an
adverse impact, or whether it is involved because
the impact is linked to its operations, products or
services.
These measures will vary depending on the
Stakeholders that they target:
• Iberdrola’s people
• Supply chain
• Customers
• Communities
And these measures are translated, for example,
into prevention action plans at the facilities,
which may consist of incident identification
processes, investigation of possible causes and
factors contributing to impacts, communication
and training measures, strengthening relations
with stakeholders to develop internal capacity to
mitigate impacts, among others. Mitigation plans
can be all those related to environmental and
social impact management plans at the facility
level or improvement plans established with the
Company’s suppliers.
In addition, cross-cutting prevention and
mitigation measures are implemented, such
as the establishment of incentives linked to
sustainability, corporate fiscal responsibility,
analysis of sustainability and human rights indices
and rankings, training and capacity building, and
participation in multi-stakeholder initiatives.
Commitment to remediation: complaint and grievance mechanisms
Although the due diligence processes should
preferably enable action to be taken in the
phases of prevention and mitigation of potential
impacts, when this is not possible, the Group
implements remedial actions or measures
to ensure effective redress through legitimate
processes and active cooperation. Remedial
actions are intended to restore one or more of
the affected rights, returning the affected people
to the situation prior to the impact as much as
possible. In any case, the Company does not in
any way prevent access to government judicial or
non-judicial mechanisms and cooperates in good
faith with them.
In addition, complaint and grievances
mechanisms have been developed to handle any
potential negative consequences early, and take
appropriate remedial action where applicable.
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Communication and reporting of measures adopted
Iberdrola reports information on human rights management through other internal and external channels,
such as its Statement of Non-Financial Information (SNFI-SR); the human rights section of the corporate
website; various newsletters addressed to employees; responses to surveys from analysts, investors
and indices; and specific training activities.
Social management and community engagement
Iberdrola maintains community engagement
during all phases of a project and establishes
channels of dialogue through which the
communities can communicate their expectations
and needs. These channels include consultations,
community surveys, specific panels, complaint
boxes, and other project-level outreach and
engagement mechanisms capable of ensuring
that all interested parties communicate with the
Company, including those in the vicinity of the
facilities.
Iberdrola continually strengthens its engagement
with the communities in which it operates
through an outreach process aligned with the
principles set out in the Stakeholder Engagement
Policy. Early communication and engagement
is considered an essential element in identifying
actual and potential impacts, and for measuring
the effectiveness of the measures adopted to
manage potential impacts on the human rights
of the communities. Project stakeholders may
include potentially affected communities or
individuals, as well as their formal or informal
representatives, among others. Special attention
is given to vulnerable groups, including indigenous
peoples.
Prior and meaningful consultation is key to begin
building and maintaining the project’s community
relations in a transparent manner and with open
dialogue. Consultation may vary depending on
the country and type of facility, but in particular
potentially affected groups are considered, with a
special focus on vulnerable groups.
Another key element in the strategy of engaging
with the communities is community investment.
In accordance with the Company’s By-Laws,
Iberdrola makes a significant social contribution,
which, among other activities, is demonstrated
through various sponsorship, patronage,
investment, and support activities for local
communities, as described in section Support to
local communities.
Management of suppliers from a human rights perspective
Iberdrola invites its suppliers to align themselves
with its strategic sustainability targets by
implementing good human rights practices.
The purchasing function also seeks to have the
necessary mechanisms in place to ensure a fair,
transparent and ethical supply chain.
Strengthening human rights due diligence
in the supply chain has been one of
Iberdrola’s priorities in anticipation of regulatory
requirements. Along these lines, the Company’s
priorities include an ambitious multi-year target
to strengthen the Human Rights Due Diligence
System in the Supply Chain, which forms part of
the targets of the executive chairman’s variable
remuneration plan.
The measures adopted by the Company to
protect human rights in the management of
suppliers and during the purchasing process
are based on the Purchasing Policy, the Policy
on Respect for Human Rights and the Code
of Conduct for Directors, Professionals and
Suppliers. In addition, the supplier management
process includes other measures such as an
analysis of the potential risk of new suppliers
in various areas of human rights during the
registration process; an assessment based on
sustainability criteria, including human rights, in
the selection of suppliers; specific improvement
plans to incentivise suppliers who fail to
demonstrate an adequate level of management;
specific clauses in the terms and conditions of
contracts and in contracts for certain products;
and compliance reviews during the term of
contracts.
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Furthermore, Iberdrola draws up an annual
sustainability audit plan for its main suppliers
in order to verify that they are complying with the
criteria laid down by the Company. In addition
to these audits, Iberdrola also commissions
specialised consultants to verify the origin and
traceability of certain supplies that are critical
from a human rights point of view. In this area,
the Company has implemented a number of
measures to ensure sustainability in the solar
module supply chain, which are described in
section Supply chain of this report.
Similarly, to monitor the human rights risks that
may exist in its supply chain, Iberdrola regularly
analyses purchases made in countries that are
considered to be at risk in a range of issues,
such as forced labour or any type of modern
slavery, freedom of association and collective
bargaining, and child labour.
Finally, in order to reinforce the training of its
suppliers, the Company provides them with
various resources, such as the online awareness
module on human rights and business, plans
to improve their score and sustainability
programmes.
Iberdrola has also intensified its efforts to promote
strict compliance with its Ethical and Basic
Principles of Governance and Sustainability of
the Iberdrola Group among suppliers potentially
exposed to certain risks. Thus, among other
cases, after identifying the potential risk of forced
labour in the value chain relating to photovoltaic
technology, Iberdrola has successfully required
the inclusion of specific clauses to mitigate
the risks of forced labour or modern slavery
for all suppliers exposed to these risks with which
it has signed a supply contract. Furthermore, the
necessary clauses have been included in PV panel
supply contracts to allow for the right to conduct
social, sustainability and traceability audits of both
module manufacturers and third parties that are
part of their supply chains to ensure the quality
and traceability of the components.
The Iberdrola Group also actively participates,
along with the manufacturers themselves, in
the main industry-led initiatives, such as Solar
Power Europe and WindEurope, with the aim of
establishing common standards and tools that
allow objective evidence to be obtained that
human rights have been respected throughout
the process of manufacturing the equipment used
in these projects.
In 2024, the Company also set up a multidisciplinary
working group to monitor the risk of forced labour
in the solar panel supply chain, with the aim of
further assessing the risk, interpreting legislative
developments and defining the measures needed
to strengthen the Company’s due diligence in this
area.
External recognitions/awards regarding human rights
As a result of the work carried out to date in this area, Iberdrola is in a leader in the sector, as recognised
by sustainability indices such as the Dow Jones Sustainability Index and the Renewable Energy &
Human Rights Benchmark.
Main developments and next steps
With the aim of continuously improving its human rights management, the Company is working in
several areas in line with the new regulatory requirements. The are mainly focused on strengthening the
social perspective at the project level and reinforcing due diligence in the supply chain, among others:
• Ongoing review of due diligence processes
to ensure that they are in line with the
main international standards and meet the
requirements of emerging human rights
legislation, including the Corporate Sustainability
Due Diligence Directive (CS3D).
• Updating the human rights risk map to cover
new risk categories based on the monitoring
performed, including, among others, the risk
associated with sourcing certain critical raw
materials in the supply chain for responsible
procurement.
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• Strengthening supply chain due diligence
throughout the supplier selection, sourcing
and follow-up cycle, including pre-qualification
audits.
• Strengthening the social dimension in
decision-making in corporate transactions.
• Employee awareness-raising and training on
human rights and due diligence.
• Development of digital tools to structure
and support management. This will allow
improvements to be made to the management
of social impacts on communities in the
surrounding areas of the facilities and the
documentation of the information gathered in
the consultation processes.
Human rights and just transition
The transition to a low-emission production
model is accompanied by a package of policies
and measures in different jurisdictions, and
particularly in Europe. These aim for an equitable
and socially just transition that generates
prosperity for society as a whole, adequately
protecting workers and generating quality jobs.
Industrial sectors in general are not without their
human rights challenges. Inadequate planning
processes can have a range of impacts, both
on the labour rights of employees and workers
in the value chain, and on the livelihoods and
subsistence, environmental or property rights of
the local communities they host, whether through
the closure of facilities or the development of new
projects. These impacts can be particularly severe
where these groups have specific vulnerabilities,
such as indigenous or vulnerable communities.
Iberdrola promotes an orderly, just and inclusive
transition through economic and industrial
development of the communities where the
Group does business, and its due diligence
processes. It also contributes to universal
access to cost-effective and competitive energy.
The principles are described in the Group’s
Ethical and Basic Principles of Governance and
Sustainability, and are expanded upon in the
Sustainable Development Policy, the Stakeholder
Engagement Policy and the Policy on Respect for
Human Rights.
To this end, the Company deploys resources,
tools and projects that seek to maximise the
social and economic opportunities of climate
action, while managing the potential impacts
on its own employees, workers in the value
chain, communities and customers. Engaging
stakeholders and maintaining an active dialogue
with each stakeholder is key to ensuring respect
for human rights in the context of a just transition.
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Our people
The people who make up Iberdrola are the key to the Company’s ability to continue to be a global leader,
capable of tackling the challenges of the energy transition through the implementation of its ambitious
investment plan for the years ahead.
The Company is committed to promoting a healthy professional environment, supporting the creation
of stable, quality jobs and strengthening a culture based on non-discrimination, equal opportunities
and the promotion of diverse talent and inclusion, so that its business objectives can be achieved
efficiently and sustainably. To achieve this, its people management approach is based on the following
pillars:
Commitment to creating quality jobs
Iberdrola is a global leader in creating quality jobs, having hired an average of more than 4,000
employees each year since 2017, and plans to hire around 10,000 new employees between 2024 and
2026.
At the end of 2024, the Company had 42,208 employees of different nationalities, genders, ages and
abilities:
Workforce by gender
Male
Female
25.2%
74.8%
Workforce by age group
Up to 30 years old
Between 31 and 50
years old
More than 51
years old
19.2%
62.6%
18.2%
Workforce by professional category
Leadership
Qualified technicians
Skilled workers and
support personnel
51.4%
42.7%
5.9%
95
Nationalities
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Developing the talent pool for a just and sustainable transition
In a context of competition to attract talent for
the energy transition, effective and inclusive
initiatives must be promoted to ensure that
the skills required by the labour market are
developed, matching people’s aspirations and
skills with the opportunities presented by the
green transition.
This is reflected in the Company’s domestic
and international internship programmes,
which this year involved 1,054 students, as
well as its collaborations and partnerships with
universities and its presence at a wide range
of employment forums and events, bringing the
Company closer to the talent pool of tomorrow.
At the same time, the Group has strengthened
its international graduate programme with the
dual aim of providing a unique employment
opportunity for local talent and ensuring a
pipeline of global leaders to meet the challenges
of the future.
Furthermore, Iberdrola maintains its strong
commitment to postgraduate training through
more than 1,000 scholarships awarded since
2017 in fields with prospects and impact on the
business, especially in STEM, with a particular
emphasis on the participation of female talent,
and strengthened with powerful local and
global development programmes.
As part of its external commitment to
sustainability, a just energy transition and social
contribution, the Iberdrola Group has reinforced
and consolidated, at the international level, the
launch in 2023 of Global Green Employment
(GGE), its digital platform for training and
visibility, at the global level, of the supply of
and demand for new sustainable profiles in the
industry, becoming the main global benchmark
for green employment guidance, training
and opportunities.
Improving the employee experience
The Company also firmly believes that innovation
and digitalisation are key levers for the
transformation of human resources management,
putting them at the service of its professionals
and enabling it to provide a responsive and value-
added solution to both the needs and aspirations
of its teams and its business strategy, regardless
of where the business is located.
A global strategy focused on improving the
employee experience has therefore been
implemented. One of the key pillars of this
strategy is to listen to employees to gain an
understanding of their needs and thus take any
measures necessary in the cases identified.
This is exemplified by the various surveys and
listening pulses conducted directly with employees
through various channels. These surveys,
managed by an external provider, guarantee
the confidentiality of the data. Throughout
2024, the Group carried out listening pulses at
various points in the lifecycle from onboarding
to offboarding, which enabled us to analyse
and identify good practices to be maintained, as
well as opportunities for improvement, which we
translated into action plans.
This is without losing sight of the commitment to
professional development, which in 2024 has
become the driving force and focus of the People
Review model, in which people participate,
both in the evaluation of their own contribution
to the Company’s objectives, and in taking the
initiative to propose their professional growth.
This is reflected in a strategy of continuous and
collaborative development based on experience,
which includes a training model (Keep Learning)
within which knowledge management initiatives
have continued to be promoted, such as the
20 masterclasses given by internal experts or
the 3 new knowledge communities created,
which consolidate the C3 BreakingSilos Project
and the culture of sharing strategic knowledge
throughout the Company. Added to this is the
commitment to sustainable skills training, to
which more than 70% of total training hours
were allocated in 2024.
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In 2024 Iberdrola become one of the global
benchmark companies in talent management,
obtaining TOP Employer certification at a global
level, making it one of the best places to work
and develop professionally, and the only energy
company in the world to achieve this.
The Company also promotes internal mobility,
both domestically and internationally, thanks to
the Global Mobility and Talent Committee, which
makes it possible to align individuals’ aspirations
and skills with international business needs and
objectives.
Hours of training by country
1%
2%
49%
14%
13%
21%
Spain
United Kingdom
United States
Brazil
Mexico
IEI
Equal opportunities and inclusion
With a workforce of more than 42,000 people
belonging to 95 nationalities and 4 different
generations, Iberdrola continues to be an example
of diversity.
To make the most of all this potential and ensure
a respectful working environment free of any
kind of discrimination, the Group has specific
policies and mechanisms to guide conduct in
this area, including: the Code of Conduct for
Directors, Professionals and Suppliers, the
Board of Directors Composition and Member
Selection Policy, the Sustainable Human Capital
Management and Anti-Harassment Policy.
The equal opportunities and inclusion strategy is
implemented both globally and locally, respecting
the specific characteristics and legal requirements
of each geographical area where the Group
operates.
The pillars of conduct include promoting an
inclusive culture, promoting diverse talent,
customer service with a personalised perspective
and promoting social contribution, which
encompasses the actions of the various Group
Foundations and the volunteer programme,
among others.
With the aim of increasing the representation
of women in the electricity sector, women in
positions of responsibility at the Company has
reached 35%, with the percentage of women in
key positions increasing by 28.9% compared to
the previous year.
The Company has also increased the number
of people with disabilities in the workforce by
26 % (compared to the end of 2023) and has
made progress regarding physical and digital
accessibility.
The Group also consolidated its Global Stakeholder
Engagement Model, based on principles such as
inclusivity, relevance, responsiveness and impact
and, from a social perspective, has launched
initiatives focused on supply chains, while
continuing to support women’s empowerment
through sport and volunteering activities.
As a result of the progress made, the workforce
has recognised diversity management as a
brand attribute and the Company has received
the TOP Employer certificate —which endorses
its commitment to the well-being of the
workforce— and the EDGE Move certificate —
for its commitment to gender equality—, and has
improved its ranking in the Top 100 companies in
gender equality according to Equileap.
Through the Corporate Volunteering programme,
Iberdrola employees participate in actions aimed
at improving the quality of life and integration of
vulnerable groups. There are also projects that
promote the social and labour inclusion of women
who are victims of gender violence and/or severe
exclusion, women with disabilities, training in
STEM subjects for girls and young women, and
training and employability of vulnerable youth.
The 2nd Edition of the International Volunteers of
the Year Awards was held in 2024.
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Occupational safety, health and well-being
(1) Rate of recordable work-related injuries = Number of recordable work-related injuries (except first aid) / Number of hours worked x [1,000,000]
In recognising the importance of occupational
safety, health and well-being, Iberdrola takes
the actions necessary to provide safe and
healthy conditions so as to prevent injuries and
promote work-related physical, social, mental
and emotional health, appropriate to the purpose,
size and context of each organisation and to the
specific nature of the risks, thereby contributing to
compliance with the third and eighth Sustainable
Development Goals (SDGs) approved by the
United Nations (UN).
The safety, health and well-being of people is a
priority for Iberdrola, and this is reflected in the
various tools and initiatives that the Company
continually implements and updates: occupational
safety, health and well-being risk guidelines
and limits, Occupational Health and Safety
Management Systems, preventive programmes,
training and awareness-raising activities in
which employees participate, and targets that
are established in collaboration with suppliers,
customers and government authorities.
The Company is actively working to steadily
improve its accident rates, and is committed to
their gradual reduction and to monitoring the
performance of its own employees and suppliers.
Rate of work-related injuries
(own personnel) (1)
3.9
3.65
3.23
3.17
2021
2022
2023
2024
(-19 % )
Iberdrola is also firmly committed to the well-being
of people and the preservation of the planet, and
this is set out in both its purpose and in corporate
policies. The Global Well-Being Plan has therefore
been created, with a holistic approach to promote
the multidimensional nature of employee well-
being, through the following actions:
• Promote a culture of well-being.
• Reach all the Company’s groups.
• Set in motion the driving force for positive
change to increase the quality of life of
employees.
• Develop more dynamic and personalised
programmes (locations, ages, gender, etc.),
offering services targeted at all employees.
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Support to local communities
Iberdrola promotes the social dividend of its operations by implementing numerous actions and projects.
These are performed by the Company, subsidiaries or investees in their respective areas of activity, or by
the Group’s foundations in the case of sponsorship and patronage activities.
The contribution by the Group companies to local communities in 2024 can be quantified from various
points of view. In addition to the fiscal impact (see chapter Fiscal responsibility), and the creation of
employment and economic activity, Iberdrola contributes with non-profit contributions, and contributions
that promote entrepreneurship and innovation, as described below:
• Contribution of EUR 56.7 million to the community, measured according to
the Business for Societal Impact (B4SI) international standard, in the countries
in which Iberdrola operates. This amount exceeds 1% of net profit for the year.
• Volunteer activities. A total of 22,783 volunteers took part in volunteering
activities, with the aim of channelling employees’ spirit of solidarity and motivating
their participation in social projects aimed at integrating vulnerable groups,
improving the environment and sustainable development.
• Support for entrepreneurs: More than EUR 200 million invested in venture capital for new
initiatives of high technological value through PERSEO, the Company’s programme for open
innovation with start-ups.
• Access to electricity, Electricity for All Programme, which, due to its significance, is described below:
Progress on the “Electricity for All” programme
The “Electricity for All” programme is Iberdrola’s response to the need to expand universal access to
modern forms of energy, with environmentally sustainable, financially affordable and socially inclusive
models. The purpose of this initiative, which began in 2015, is to ensure access to electricity in
emerging and developing countries, and for vulnerable people in developed countries.
Within the framework of this programme, Iberdrola has set the goal of providing electricity to 16
million people who are currently without electricity by 2030. The programme reached 13.8 million
users by year-end 2024.
Mexico
Nicaragua
Peru
Brazil
Benin
Tanzania
Kenya
Ethiopia
Uganda
Rwanda
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Main activities of the foundations of the Iberdrola Group in 2024
Iberdrola Group foundations renew their social commitment
every year.
Accumulated value 2021-2024
2021
2 million
beneficiaries
2022
7.7 million
beneficiaries
2023
14.9 million
beneficiaries
2024
21 million
beneficiaries
The Iberdrola Group also channels its social, cultural, and environmental commitment through five
foundations: Fundación Iberdrola España, Fundación Iberdrola México, Neoenergia Institute in Brazil,
the Avangrid Foundation in the United States, and the ScottishPower Foundation in the United Kingdom.
These foundations share a common mission: to promote sustainable development, the energy transition,
and social progress. Their broad lines of conduct include:
Biodiversity
and climate
change
Efforts have been stepped up to protect the environment and enhance
biodiversity, contributing to the fight against climate change. Achievements in
2024 include:
| Continuation of the tagging of birds in Spain through the MIGRA programme in
collaboration with SEO/BirdLife.
| Reintroduction of 12 species of osprey in the Valencian Community together with
the MIGRES Foundation.
| Reforestation of 49.5 hectares at the General Menacho Base as part of the
Iberdrola Defence Forest plan, which will absorb more than 30,000 tonnes of CO2.
ScottishPower Foundation
Restoration of seagrass and oyster beds with the WWF.
Avangrid Foundation
Protection of habitats and birdlife in New England, in collaboration with the National
Fish & Wildlife Foundation.
Fundación Iberdrola México
Preservation of the Fernandez Canyon and mangroves.
Neoenergia Institute
CORALIZAR project (coral restoration) and Flyways Brasil (protection of wading birds).
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Art and culture
The main objective is to protect and safeguard artistic and cultural heritage,
promoting its preservation, restoration and contributing to local development.
Lighting projects
In 2024, the main lighting projects included:
| Palau de la Música (Valencia).
| Quadruple lock of the Canal de Castilla (Frómista).
| Bridge of San Antón (Cuenca).
| Oaxaca Cathedral (Mexico).
Several lighting projects that will be inaugurated in 2025 have been announced, such
as the Lisbon City Hall, Malaga Cathedral and Valladolid City Hall. An important new
development is the ILUMINA Project, a cross-border effort between Portugal and Spain
with Interreg funds, which seeks to boost tourism by providing lighting for historical sites
on the border between Alentejo and Extremadura.
Restoration projects
In terms of restorations, the Atlantic Romanesque Plan continued in Zamora, with
work on the churches of Santa María la Real de la Hiniesta and Castroverde de
Campos. In addition, the travelling exhibition “The Prado in the Streets” concluded
its tour of Andalusia and began a new round in the Valencian Community. In Brazil,
the Neoenergia Institute providing lighting for the Senhora Santana Church in Rio de
Contas, Bahia.
Training area
In the area of training, education is the driving force for social and personal change.
Scholarship programme
In 2024, educational efforts were expanded through scholarships, directly
benefiting more than 80 people. Collaborations included restoration scholarships at
the Prado Museum and the Bilbao Fine Arts Museum.
STEM women
Work was carried out together with institutions such as ICAI, Fundación Carolina,
Fulbright and Empieza por Educar, among others, with a particular emphasis on
the inclusion of women in STEM careers. This approach supports the ecological
transition by training talent for the energy sector, with a commitment to training as a
means of personal and social improvement.
Social area
Through the annual Future with Energy social aid programme, Fundación
Iberdrola allocated more than EUR 1.5 million in 2024 to finance 43 projects,
benefiting more than 192,000 people. These initiatives are aimed at:
| Children and young people.
| Those with disabilities and addictions.
| Women, training and employment as key tools to promote personal autonomy and
independence.
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Fiscal responsibility
Iberdrola has a Corporate Tax Policy that establishes the basis for determining the Company’s tax
strategy, based on excellence and commitment to the application of good tax practices, within the
framework of the Group’s corporate and governance structure.
The tax strategy is based on three fundamental pillars: compliance with tax obligations, ongoing
cooperation with the tax authorities, and transparency, seeking to ensure appropriate coordination
of the tax practices applied by Group companies, all within the framework of achieving the corporate
interest and supporting a long-term business strategy that avoids tax risks and inefficiencies in the
implementation of business decisions.
The tax strategy at Group level is implemented and coordinated as follows:
Main principles of conduct
The Company’s compliance with its tax obligations and its relations with the tax authorities are
governed, in addition to that established in the Group’s Ethical and Basic Principles of Governance
and Sustainability, by main principles of conduct such as ensuring compliance with tax regulations in
all countries and territories in which it has a presence, paying any taxes due, preventing and reducing
significant tax risks, fostering a relationship with the tax authorities that is governed by the principles
of legality, transparency, loyalty, trust, professionalism, collaboration, reciprocity and good faith, and
providing information to management bodies of the main tax implications of the transactions or matters
submitted for their approval, when they are a significant decision-making factor.
Good Tax practices
By application of the main principles of conduct, the Company adopts and promotes the following good
tax practices, which include the following:
a. Not to use artificial structures unrelated to the
Company’s own activities for the sole purpose
of reducing its tax burden.
b. To avoid opaque structures for tax purposes.
c. Not to directly or indirectly create or acquire
companies resident in countries or territories
considered to be tax havens under Spanish
law or that are included on the EU blacklist
of non-cooperative jurisdictions, with the sole
exception of those cases in which it is obliged
to do so in the course of an indirect acquisition
in which such company is part of a group of
companies being acquired.
d. To cooperate with the competent tax authorities
in detecting and seeking solutions to fraudulent
tax practices of which the Company is aware.
e. To provide any tax-related information and
documentation requested by the tax authorities
in the exercise of their powers.
f. To make the whistleblowing channels envisaged
by law available to anyone who wishes to report
any conduct that may involve any wrongdoing
or conduct contrary to law or to the Group’s
Ethical and Basic Principles of Governance
and Sustainability, and, therefore, tax-related
activities.
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Tax governance and risk management
Implementation and coordination of
the tax strategy within the Group
The various Group companies are responsible
for implementing and monitoring the tax
strategy established by the Company’s Board of
Directors, in accordance with the corporate and
governance structure defined in the Ethical and
Basic Principles of Governance and Sustainability
of the Iberdrola Group and, in particular, in the
Foundations for the Definition and Coordination
of the Iberdrola Group.
Accordingly:
a. The Company’s Board of Directors, through its
chairman and chief executive officer, with the
technical support of the Operating Committee
and the management team, together with its
corresponding support committees, where
appropriate, promotes the supervision,
organisation, coordination and monitoring
(control through the Board and its committees)
of the principles of conduct and good tax
practices set out in the Corporate Tax Policy
by the companies comprising the Group.
b. The country subholding companies assume
their own responsibilities with respect to
compliance with tax obligations and in
relation to implementing the global tax
strategy established at the Group level in their
respective countries, territories, or businesses.
c. In addition to being responsible for compliance
with their tax obligations, the head of business
companies endeavour to ensure compliance
with these principles and good practices by the
Group companies through which they carry out
their respective businesses.
Risk management and compliance
Iberdrola seeks to prevent and reduce
significant tax risks. It therefore has a robust
tax risk prevention model in line with best tax
governance practices, which is duly monitored
and updated. It also has a tax compliance
management system certified in accordance
with the UNE 19602 Standard.
The Group does not have any investees
domiciled in countries or territories considered to
be tax havens under Spanish law or in territories
included in the European Union’s blacklist of
non-cooperative tax jurisdictions.
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Stakeholder engagement in tax matters
The Annual Corporate Governance Report
includes the level of effective compliance by the
Company with the Code of Good Tax Practices,
and with other codes or recommendations of
similar content from other jurisdictions to which
the Group companies have adhered, and reports
on the functioning of the tax risk control systems.
In addition, the Company undertakes to disclose
the most relevant information on the performance
of the Group companies in tax matters and their
tax contribution to support public expenditure in
the main countries and territories in which they
operate, ensuring that the information is clear,
useful and truthful, all within the framework of
its commitment to transparency in relations and
communication with its stakeholders.
Among other measures, Iberdrola has voluntarily
prepared the “Report on Tax Transparency of
the Iberdrola Group. Our commitment to society”
since 2019, which sets out all significant issues
from a tax standpoint and its tax contribution.
In addition, Iberdrola makes specific
whistleblowing channels available to its main
stakeholders, which serve as a vehicle for
reporting conduct that could involve improper
conduct or conduct contrary to law or to the
internal rules or procedures.
Iberdrola’s tax contribution in 2024 (€M)
5,021
5,279
10,300
€M
Own taxes
Taxes collected
Tax contribution of €10,300 million in 2024, an increase of 7,6 %
over the previous financial year.
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Corporate reputation
What the various Iberdrola Group companies do,
what they communicate, and how they involve
their stakeholders, leads to opinions, attitudes and
behaviours by these stakeholders that shape the
companies’ reputation. Therefore, the Iberdrola
Group takes its reputation into consideration.
Reputation is an intangible asset of great
value, which influences aspects as important as
the recruitment and retention of talent, commercial
relations with customers, valuation in the capital
markets, and integration within communities and,
therefore, affects both long-term sustainability
and corporate resilience.
Reputation is managed and measured with a two-
fold objective:
• To drive opportunities and favourable behaviour
of stakeholders towards the Company.
• To minimise and mitigate the reputational risks
associated with its business activities.
Reputation management is performed by all
of Iberdrola’s areas and businesses, with two
important elements standing out:
• Proactive management of stakeholders
through the application of the Global
Stakeholder Engagement Model, which allows
for the ascertainment of expectations, needs
and impacts, the analysis of risks (including
reputational risks), and the establishment
of specific action plans, as explained at the
beginning of this section.
• The communication plans, sustainability
targets and numerous specific activities of
Iberdrola’s areas and businesses, focused on
each of the Company’s six stakeholder groups.
Reputation is monitored and measured through:
variables from reputational rankings, surveys and
various sustainability indices, among others.
Iberdrola annually reviews and updates its
Corporate Reputation Policy and the Reputational
Risk Guidelines and Limits, which are the main
benchmarks for controlling and managing this
risk. The Company also has internal procedures
in place to respond to potential reputational crises
and risks, a Global Reputation Working Group,
internal communication campaigns and employee
training initiatives.
The brand
Iberdrola manages the brand so that it conveys
the essence of the Group’s purpose and reflects
the Company’s strategy and commitment to
sustainability. This consolidates a brand with
international visibility and relevance, strengthening
communication and alignment under a single
brand positioning strategy in all countries in which
the Group operates.
Value of the
Iberdrola
brand
$ 8,715 M
according to
Kantar BrandZ
In 2024, the brand evolved to better reflect the
Company’s commitment to the planet and its
commitment to digitalisation. As a result, the
brand identity became more sustainable, with
a logo designed to reduce energy consumption
by 50%. An identity that maintains its essence
by reinforcing the association with the values of
sustainability.
As a result of all the above activities, based on
the firm commitment to increasingly engage its
stakeholders in all of the Company’s activities and
operations, Iberdrola is one of the most highly
valued Spanish brands.
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Governance and Sustainability System
Corporate governance
Comprehensive Risk Control and Management System
Risks
Internal audit
Ethics and integrity
Cybersecurity and information privacy
Ethics, transparency and good governance
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Governance and Sustainability System
The Company’s Governance and Sustainability
System constitutes its own internal regulation that
establishes its identity and ensures the realisation
of its purpose and values and the achievement of
its social dividend and corporate purposes.
This set of regulations has evolved with reality,
anticipating and adapting to new needs, but always
maintaining Iberdrola’s genuine commitment to
sustainability as set out in the rules and policies
that make up the Governance and Sustainability
System, the contents of which are published on
the corporate website and are arranged in the
following structure:
• General introduction, Purpose and Values of
the Iberdrola Group and Ethical and Basic
Principles of Governance and Sustainability of
the Iberdrola Group (Preliminary book).
• By-Laws and Corporate Organisation,
Regulations for the General Shareholders’
Meeting, rules of the corporate decisionmaking
bodies and internal committees, and Foundations
for the Definition and Coordination of the Iberdrola
Group (First book).
• Corporate policies on transparency and good
governance, human and social capital, natural
capital and the sustainable value chain (Second
book).
• Internal Audit, Risk and Compliance standards,
including the Code of Conduct for Directors,
Professionals and Suppliers (Third book).
The Board of Directors is responsible for approving
and updating the Company’s policies and the
guidelines for the Iberdrola Group, establishing
rules, principles and guidelines that serve as the
basis for its regulatory development by the other
companies of the Iberdrola Group, through their
respective governance and sustainability systems.
Specifically, the Purpose and Values of the
Iberdrola Group form the corporate ideology that
determines the orientation and organisation of the
Company and the other companies of the Group,
guiding their strategy and directing their activities,
initiatives and decisions as structural principles of
the internal organisation of the Group companies.
Accordingly, the Ethical and Basic Principles of
Governance and Sustainability of the Iberdrola
Group serve as the basis for the rules of the
Company and of the other companies of the
Group, promoting the sustainable creation of
value for its shareholders and also considering its
other stakeholders.
The Governance and Sustainability System
therefore contributes to shaping the identity and
essence of the companies of the Iberdrola Group
taken as a whole, in line with a firm commitment
to sustainability and the most demanding ethical
principles, in order to promote the construction
of an electric, efficient, healthy and accessible
energy model, in line with the highest standards
and requirements in terms of transparency and
good governance, human and social capital,
and natural capital, with due regard for the value
chain, internal audit, risks, corporate control and
compliance.
This structure of the Governance and Sustainability
System allows the legal systems of all the
companies that make up the Iberdrola Group to be
consistent, while respecting the autonomy of the
respective management bodies and, in particular,
the special framework of enhanced autonomy of
the listed country subholding companies that may
form part of the Iberdrola Group.
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Corporate governance
(1) Secretary (non-director): Santiago Martínez Garrido
Deputy secretary (non-director): Ainara de Elejoste Echebarria
Counsel to the Board: Rafael Sebastián Quetglas
The composition of the Board of Directors is a key element of good corporate governance, as it affects its
effectiveness and influences the quality of its decisions and its ability to effectively promote the corporate
interest.
Accordingly, the Company encourages the Board to have an independent, plural and balanced composition,
with the staggered replacement of its members on a regular basis, so that their complementary nature
reflects the social and cultural reality of Iberdrola, and enriches discussions and the resolutions passed by
the Board of Directors and its committees, through the contribution of multiple points of view on the matters
within their purview:
Composition of the Board of Directors(1)
Position
Director
Status
Date of last
appointment
End of term
Committees
Chairman
José Ignacio Sánchez Galán
(Salamanca, Spain, 1950)
Executive
28-04-2023
28-04-2027
Chair of the
Executive
Committee
Chief
Executive
Officer
Armando Martínez Martínez
(Miranda de Ebro, Spain,
1968)
Executive
28-04-2023
28-04-2027
Member of
the Executive
Committee
First Vice-
Chair
Juan Manuel González
Serna
(Madrid, Spain, 1955)
Independent
18-06-2021
18-06-2025
Member of
the Executive
Committee
Chair of the
Remuneration
Committee
Second Vice-
Chair
Anthony L. Gardner
(Washington D.C., US, 1963) Independent
17-06-2022
17-06-2026
Member of
the Executive
Committee
Member of the
Appointments
Committee
Lead
independent
director
Ángel Jesús Acebes
Paniagua
(Ávila, Spain, 1958)
Independent
18-06-2021
18-06-2025
Member of
the Executive
Committee
Chair of the
Appointments
Committee
Member
Íñigo Víctor de Oriol Ibarra
(Madrid, Spain, 1962)
Other
external
17-05-2024
17-05-2028
Member of the
Remuneration
Committee
Member
Manuel Moreu Munaiz
(Pontevedra, Spain, 1953)
Independent
28-04-2023
28-04-2027
Member of
the Executive
Committee
Member of the
Remuneration
Committee
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Position
Director
Status
Date of last
appointment
End of term
Committees
Member
Xabier Sagredo Ormaza
(Portugalete, Spain, 1972)
Independent
28-04-2023
28-04-2027
Chair of the
Audit and Risk
Supervision
Committee
Member
Sara de la Rica Goiricelaya
(Bilbao, Spain, 1963)
Independent
28-04-2023
28-04-2027
Chair of the
Sustainable
Development
Committee
Member
Nicola Mary Brewer
(Taplow, United Kingdom,
1957)
Independent
17-05-2024
17-05-2028
Member of the
Sustainable
Development
Committee
Member
Regina Helena Jorge Nunes
(São Paulo, Brazil, 1965)
Independent
17-05-2024
17-05-2028
Member of the
Audit and Risk
Supervision
Committee
Member
María Ángeles Alcalá Díaz
(Albacete, Spain, 1962)
Independent
17-06-2022
17-06-2026
Member of the
Audit and Risk
Supervision
Committee
Member
Isabel García Tejerina
(Valladolid, Spain, 1968)
Independent
17-06-2022
17-06-2026
Member of the
Sustainable
Development
Committee
Member
Ana Colonques García-
Planas
(Vila-real, Spain, 1982)
Independent
17-12-2024
General
Shareholders’
Meeting 2025
Member of the
Appointments
Committee
The director, Ms Ana Colonques García-Planas, was appointed by the Board of Directors on an interim
basis and, therefore, her appointment is subject to ratification by the General Shareholders’ Meeting to
be held within the first six months of 2025, in accordance with Section 244 of the Companies Act.
Corporate and governance structure
The Iberdrola Group is structured on three levels:
the holding company, Iberdrola, S.A., which
holds equity interests in the country subholding
companies and is responsible for strategic
supervision, organisation and coordination at the
Group level; the country subholding companies,
which group together the equity interests in the
head of business or country companies and
strengthen the functions in the territories, countries,
or businesses corresponding to each one; and
the head of business or country companies,
which assume executive responsibilities on a
decentralised basis, have the autonomy necessary
to carry out the day-to-day administration and
effective management of their businesses, and
are responsible for the day-to-day control of the
businesses. The Iberdrola Group thus combines
a decentralised structure inspired by the principle
of subsidiarity and respect for the autonomy of its
Group companies, with the necessary strategic
coordination and an effective system of checks
and balances:
• The Board of Directors of Iberdrola, S.A. focuses
its activities on strategic definition at the Group
level and on organisational, coordination, and
supervisory functions. The Board is made up of
14 directors: 2 executive (14%) and 12 external
(86%).
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• The duties of the executive chairman and the
chief executive officer are separate. Therefore,
the executive chairman assumes all duties not
expressly assigned by the Board of Directors
to the chief executive officer, who coordinates
the management of the businesses of the
Group companies, as the person with overall
responsibility for all of them, with the most senior
functions in this area and within the framework
of the Company’s role in the corporate and
governance structure of the Group.
• Independent directors make up 79% of total
members, and include two vice-chairs, the lead
independent director and the chairs of all the
consultative committees.
• The Board of Directors promotes the creation
and operation of cross-functional committees to
support and advise the management team that
are linked to strategic functions. In particular,
the Operating Committee is responsible for
providing technical support to the chairman of
the Board of Directors and the chief executive
officer on the function of organisation,
coordination and supervision at the Group level
in order to facilitate the implementation of the
Business Model.
• The country subholding companies strengthen
organisation, coordination and supervision
through the dissemination, implementation
and supervision of the policies, strategies,
and general guidelines at the Group level in
accordance with the characteristics, needs and
particular circumstances of their respective
territories, countries or businesses. One of their
main functions is to centralise the provision of
common services to their head of business
companies, in accordance with criteria of
operational efficiency and in full compliance
with that set out in applicable legislation
and, in particular, with the regulations on the
separation of activities. These companies
therefore have their own boards of directors,
chief executive officers, external directors, and
audit and compliance committees, in addition
to internal audit divisions and compliance units,
and, if applicable, management and support
committees for their management team.
Specifically, the country subholding company
Neoenergia, S.A. has a special framework
of enhanced autonomy in areas regarding
regulatory matters, related-party transactions
and management.
• The head of business or country companies
also have their respective boards of directors
and specific management bodies; they may
also have their own audit committees, internal
audit areas and compliance units or divisions.
Chairman
CEO
Management
Board of Directors
Executive
Committee
Consultative
committees
| Audit and Risk Supervision
Committee
| Appointments Committee
| Remuneration Committee
| Sustainable Development
Committee
(1) Company listed on the New Market segment of BOVESPA (Brazil).
Country subholding companies
Iberdrola S.A. (Holding companies)
Head of business companies
(1)
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Ownership structure
Iberdrola, S.A. has shareholders around the
world, none of whom have a controlling interest.
Iberdrola has more than
500,000 shareholders
worldwide
Investment funds, pension
funds and other international
institutional shareholders
represent more than 70% of the
share capital.
Shareholder structure at year-end 2024 (1)
Domestic individual investors
National institutional entities
International institutional investors
70.3%
7.4%
22.3%
(1) Shareholder structure at year-end 2024. Data taken from the Annual Corporate Governance Report 2024, published in February 2025
Iberdrola at the forefront
of governance and
sustainability
The Board of Directors of Iberdrola, S.A.
prepares and updates on an ongoing basis the
Governance and Sustainability System, which
governs its own management and conduct, and
seeks to ensure the realisation of the purpose
and values and of the corporate purpose, and
the achievement of the corporate interest and the
social dividend, all within the common framework
of its firm commitment to sustainability. Since
2021, it has been approving and updating the
Climate Action Plan, which was created with the
aim of achieving neutrality in greenhouse gas
emission.
Strategy
The key elements defining the governance and
sustainability strategy of Iberdrola, S.A. are:
• A system for the separation of functions, checks
and balances, and controls.
• Ongoing shareholder engagement, not just at
the General Shareholders’ Meeting.
• Active listening to the legitimate interests of the
stakeholders.
• Social dividend and respect for human rights.
• Environmental performance
• Zero tolerance of corruption and fraud.
• Prudent and balanced management of risks.
• Transparency.
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Continuous improvement of the corporate
governance rules and practices
For corporate governance matters, the Company takes as a reference the Good Governance Code
of Listed Companies, revised by the CNMV in June 2020, and the practices generally recognised in
international markets.
Leadership in governance
Independence: 86% external directors and 79%
independent directors, including the two vice-
chairs, the lead independent director and the
chairs of all the consultative committees.
Separation of functions and checks and
balances: the executive chairman is separate
from the chief executive officer, two vice-chairs,
and the lead independent director and chair of
the Appointments Committee.
Succession plans for the executive chairman,
chief executive officer and non-executive
directors.
Gender balance: Each gender representing
50% of external directors and no gender with a
representation of less than 43% of all directors.
Annual evaluation of the governance bodies by
an independent expert.
Work on sustainable development and
corporate reputation
Ongoing update of Governance and
Sustainability System.
Review of the compliance system
Monitoring and updating the Group’s strategy
and performance.
Monitoring the Climate Action Plan and the
Biodiversity Plan
Monitoring of human rights management and the
creation of value for Stakeholders
Monitoring of brand value and corporate
reputation.
Monitoring of cyber risks, updating of
cybersecurity strategy and analysis of the
Company's cyber-resilience.
Management of human capital, with a focus on
the development, promotion and retention of the
management team’s talent.
Active listening and monitoring of sustainability
issues raised by investors and proxy advisors,
including presence on sustainability indices.
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Commitment to shareholders
and investors
The Iberdrola Group operates an industrial
and financial model based on sustainable and
balanced growth, focused on the businesses of
smart grids, renewables, efficient storage and
the development of new businesses arising from
the energy transition, with a focus on achieving
goals that combine financial, environmental
and social results. The Company’s framework
for relations with shareholders is based on
transparency, encouraging their informed and
responsible participation at the General Meeting
and incorporating the most advanced corporate
governance practices, particularly as regards their
involvement in the Company.
• The Shareholder Engagement Policy, which
this year celebrates its tenth anniversary,
aims to encourage the continued and
ongoing involvement of the Company’s
shareholders in corporate life. In particular,
this interaction is not limited to attending the
General Shareholders’ Meeting, but rather the
Company encourages continuous interaction,
aiming for effective, continued, constructive,
sustainable and ongoing shareholder
involvement in corporate life throughout the
year, contributing to maintaining lasting and
stable relationships and aligning the interests
of shareholders and those of the Company,
in order to ensure the achievement of the
purpose and realisation of the corporate
values. This policy enables the Company
to adopt and promote the main principles
of conduct to foster the effective, ongoing,
constructive and sustainable involvement of
its shareholders in corporate life based on
transparency, participation, proactive and
constant interaction, active listening, respect,
innovation and continuous improvement.
• The company encourages shareholders’
participation throughout the year, especially
at the General Shareholders’ Meeting.
ENGAGEMENT
Shareholders’
Club
Shareholder Service Line
900 10 00 19
Shareholder’s
Office
Institutional Equity and
Fixed Income Investments
Individual Shareholders
www.iberdrola.com
Investor
Relations App
Investor
Relations Office
OLA
CLUB DEL
ACCIONISTA
General
Shareholder’s
Meeting
Briefings,
events, and
roadshows
Ongoing and proactive contact with our shareholders.
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Remuneration policy
The Director Remuneration Policy approved at the General Shareholders’ Meeting on 17 May 2024, with
95.64% voting in favour, establishes the framework governing the remuneration of directors and officers.
Principles of the policy:
For directors:
In their capacity as such:
• Transparency.
• Equal opportunities.
• Alignment with the remuneration policy for the
Company’s professionals.
• Competitiveness for the creation of value.
• Remuneration system without variable
remuneration.
For officers:
• Neutrality in variable remuneration for the
creation of value.
• Commitment to shareholder interests and to
long-term sustainability.
• Proportionality with risk measures in the
remuneration systems, establishing maximum
limits to any variable remuneration and
appropriate mechanisms for the Company
to be able to cancel (malus clause) or obtain
reimbursement for (clawback clause) the variable
components of the remuneration.
Remuneration system:
The remuneration system for directors and officers
applicable in 2024 is a sustainable, non-short-term
remuneration system that maintains a reasonable
balance between the various elements that make
up the remuneration, reflecting an appropriate
assumption of risk that contributes to attracting,
retaining, motivating and developing the best
talent, as detailed below.
Directors in their capacity as such:
The remuneration system includes:
• Fixed remuneration and attendance bonuses.
• Benefits.
• Non-compete commitment.
• A shareholding policy commitment is
established for at least an amount equivalent to
20% of annual fixed remuneration for each year
of their term of office for a cumulative period of
four years.
Officers:
The principles of the Policy are applied through a
remuneration mix that includes:
• Fixed remuneration: commensurate with the
responsibilities and functions performed.
• Short-term variable remuneration
- Linked to the achievement of predetermined,
specific, measurable, challenging and clear
quantitative and qualitative strategic objectives,
aligned with the Purpose and Values, the
achievement of the business strategy, and
the long-term interests and sustainability of
the Company, including financial, operational
and sustainability objectives.
• Long-term variable remuneration (strategic
bonus)
- Linked to the creation of value for stakeholders,
and to the sustainable achievement of
the Group’s strategic objectives and the
maximisation of its social dividend and
shareholder return.
- Plans with a typical duration of six years,
(three assessment and three settlement),
granted every three years.
- A shareholding policy is established whereby
ownership of the shares received cannot be
transferred for a period of four years unless
an equivalent amount of at least twice the
fixed remuneration is maintained.
Officers and other professionals of the Iberdrola
Group assigned to divisions or areas that report
functionally to the Audit and Risk Supervision
Committee or the Sustainable Development
Committee do not participate in annual variable
remuneration systems, nor are they beneficiaries
of the long-term incentive.
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Main activities of the Board of Directors
and its Committees
Key topics in 2024
The main focus areas for the Board of Directors in
2024 were as follows:
• Updating of the Strategic Plan for the 2024-2026
period, which structured the objectives into 5
thematic sustainability priorities (i) promoting
electricity as a clean, autonomous, local,
stable, safe and competitive energy source; (ii)
protecting nature and promoting the efficient
use of resources; (iii) sustainable value chain;
(iv) strengthening human and social capital; and
(v) a culture of ethics, transparency and good
governance.
• Corporate transactions and strategic alliances
entered into by companies of the Iberdrola
Group.
• From October onwards, monitoring of the
impact of the Valencia DANA and the recovery
of supply.
• Acknowledgement of compliance with the
shareholding policy commitments envisaged in
the Director Remuneration Policy approved by
the General Shareholders’ Meeting in 2024.
• Appointment of the independent assurance
provider responsible for verifying the statement
of non-financial information - sustainability
report for 2024.
• Review and continuous improvement of the
Governance and Sustainability System.
These and the other key issues handled by the
Board of Directors and its committees throughout
2024 are set out in the annual corporate
governance report for 2024.
Training of the Governance Bodies
The directors receive continuous training regarding
significant issues relating to the companies of
the Iberdrola Group and their businesses, and
to the environment in which they operate, which
are supplemented by reports, articles and other
information of interest, all of which are made
available to the directors through the directors’
website, which has a specific section and a blog
dedicated to training.
In addition to training materials and sessions for
all directors, each of the consultative committees
also has specific training plans in the areas within
their purview.
The Annual Corporate Governance Report 2024
includes a specific section on the activities and
content of the training carried out over the past
year.
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Comprehensive Risk Control and Management System
A principles-based model
As defined in the General Risk Control and Management Foundations approved by the Board of Directors
of Iberdrola, S.A., the Comprehensive Risk Control and Management System (“the System”) constitutes
the global model implemented to identify, assess, control and manage the significant risks faced
by the Company and the other companies of the Group.
The System is designed in accordance with international best practices in control and enterprise risk
management, specifically, it is based on the control methodological framework defined by COSO
(Committee of Sponsoring Organizations of the Treadway Commission, May 2013) and is structured in
accordance with the Three Lines Model published on 20 July 2020 by the Institute of Internal Auditors,
which provides a comprehensive view of how the different parts of the organisation interact in an effective
and aligned manner with each other and with the interests of the stakeholders, contributing to the creation
and protection of value.
Governing body
Accountable to stakeholders for organisational oversight
Management
Internal audit
Actions (including risk management)
to achieve organisational objectives
First line roles:
Provision of products/
services to customers:
risk management
Second line roles:
Experience, support,
monitoring and challenge
on risk-related matters
Independent
assurance
Third line roles:
Independent and objetive
assurance and advice on
all issues related to the
achievement of objetives
External assurance providers
KEY:
Accountability
reporting
Delegation,
management,
resources, oversight
Alignment,
communication,
coordination,
collaboration
Based on the document “The IIA’s Three Lines Model 2020. An update of the Three Lines of Defense”
IIA 2020.
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The Comprehensive Risk Control and Management
System is designed and operates so as to include
the following principles:
Governance functions
The Company’s Board of Directors is assisted by
the Audit and Risk Supervision Committee, which,
within the framework of its competencies as a
consultative body, monitors and reports on the
effectiveness of the risk control and management
system.
Iberdrola’s Board of Directors ensures that
appropriate structures and processes are in place
for effective governance.
• Ensures that organisational objectives and
activities are aligned with the prioritised
interests of the stakeholders.
• Delegates responsibility and provides resources
to management to achieve the objectives of the
organisation while ensuring legal, regulatory
and ethical expectations are met.
• Establishes and oversees an independent,
objective and competent internal audit function
to provide clarity and confidence on progress
toward the achievement of objectives.
Clear roles and responsibilities
Management responsibility for achieving
organisational objectives lies with both first and
second line functions. The management team
and the professionals of Iberdrola and its Group
are the direct managers of the Company’s risks.
Company management is therefore responsible
for maintaining effective control and implementing
procedures to control risks on a continuous basis.
In this regard, the Group’s General Risk Control and
Management Foundations establish an appropriate
allocation of functions and responsibilities at the
operational and supervisory level for the various
relevant risks and threats, as well as procedures,
methodologies and tools to support the System in
which the various corporate and business areas
participate. The participants in the System are:
• The corporate and business areas, which are
primarily responsible for identifying, managing
and controlling the risks that affect their area of
responsibility (“first-line owners of the risks or
functions”)
• The areas responsible for defining, implementing,
deploying and supervising the rules and policies
of the Company’s Governance and Sustainability
System and the governance and sustainability
systems of the other companies of the Group, as
well as any Guidelines that may be approved in
implementing the Foundations, insofar as they
contain control frameworks relating to certain
overarching risks for which main principles of
conduct have been approved (“second-line
specialist areas or functions”).
The main second-line specialist areas according
to their areas of responsibility are: (i) the
Group’s Control Division, in its responsibilities
relating to internal control and risk management
systems related to the financial reporting process
(Internal Control over Financial Reporting
System, ICFRS), with the SAP environment;
(ii) the Corporate Sustainability Division, in
its responsibilities for internal risk management
and control systems related to the sustainability
reporting process, reputational risk, human rights
impact risk and stakeholder relations; and (iii)
the Compliance Unit, which is responsible for
proactively overseeing the effective operation of
the Compliance System.
In addition to the above, there are other
organisations which, within the scope of their
responsibilities, perform important expert
functions related to internal control and
supervision, including: the Environment Division,
the Personnel and Organisation Division, the
Corporate Security Division, the Purchasing
and Insurance Division, and the Legal and Tax
Division.
• The Risk Division, which reports to the Internal
Audit and Risk Division, is an independent
function responsible for leading the design and
implementation of the Comprehensive Risk
Control and Management System to identify
and manage the relevant risks faced by the
Group companies.
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Involvement of Management,
Risk Committee
As a sign of management’s commitment to risk
control and management and in order to facilitate
the implementation and effective functioning of
the System, the Risk Committee was created as
an internal and permanent cross-functional body,
comprising representatives of the Company’s
various corporate and business areas. The
functions of the Risk Committee include
overseeing that: (i) the main risks are adequately
identified and managed within the risk appetite
established by the Board of Directors; and (ii)
that the information and internal control systems
implemented to manage and control the risks are
functioning properly.
Independent Internal Audit
The Internal Audit Division, as an independent
third line, is responsible for proactively ensuring
the proper operation of the internal control,
risk management and governance systems,
systematically auditing the roles of the first
and second lines in the performance of their
respective management and control duties. For
more information on internal audit activities, see
the Internal audit section.
External assurance providers
Regulators establish requirements to strengthen
the organisations’ controls and perform an
independent oversight role. The powers of the
ARSC and the ACC include striving to preserve
the independence of the statutory auditors and/or
verifiers of sustainability reports.
Consideration of financial,
reputational and
sustainability impacts
Clear definition of roles
and responsibilities
at operational and
supervisory level
Independence
of Risk funtion
Evaluation of
effectiveness of
information systems and
internal control
Independent audit of
the system
Continuous identification
of significant risk and
threats
Holistic taxonomy
and common risk
measurement, control and
quantification standards
Risk appetite defined by
the Board of Directors
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Risks
Main risk factors and mitigation measures
Price and demand risks
Changes in the
price of electricity
The main variable affecting the results of generation activities as regards market prices is the price of electricity,
which is closely correlated with the price of the gas needed to produce that electricity and with the cost of the
applicable emission allowances.
The Group’s generation assets sell their energy through various mechanisms, depending on the regulations
and type of electricity market existing in each country. For new investments, incentives are available for selling
at regulated rates or signing fixed-price PPAs. The remaining market exposure is transferred to the customers
business in the countries where it is present for integrated management.
Offsetting at-risk positions between wholesale and retail activities greatly reduces the Group’s market risk; the
remaining risk is mitigated by trading in the physical buy/sell markets as well as in derivatives.
Potential impact of a 5%
change in the price of
electricity and/or of energy
commodities and CO2 on
open positions
Spain
Production and Customers risk integrated
United Kingdom
For its wind farms without CfDs
Mexico
Production and Customers risk integrated
Brazil
Production and Customers risk integrated
United States
For wind farms exposed to the market
International
For wind farms exposed to the market
Change in
demand
Production and Customers: moderate short-term impact, given the nature of
the generation facilities and the structure of the long-term power purchase
agreements.
Grids: no impact, except for the Brazilian subsidiaries in between tariff periods.
Potential impact of 1%
reduction in Spain,
Mexico and the United
Kingdom.
Resource risks
Change in
hydroelectric
resources - Spain
In the medium-to-long term, humid years are offset by dry years.
The storage capacity of reservoirs and the Group’s portfolio of power
plants mitigate the level of volatility during the year.
Lower hydroelectric
production - Spain
Production
and
Customers
Business
Change in wind
resources -
Group
Mitigated thanks to the high number of facilities in operation and the
geographic dispersion thereof.
In the medium-to-long term, years with more wind are offset by years
with less wind.
Lower wind output -
Group
Production
and
Customers
Business
Financial risks
Change in
interest rates
The Iberdrola Group maintains a fixed-rate and variable-rate debt
structure, based on the structure of its revenues and the sensitivity
thereof to changes in interest rates.
Potential impact on
financial expenditure
up by +50 bps
Group
financial
expenditure
Change in
exchange rates
This risk is mitigated by taking on debt and realising all its financial
flows in the functional currency corresponding to each company,
whenever possible and economically efficient, and by managing
its open positions with derivatives. The risk associated with the
translation of results from subsidiaries is closed out annually.
Potential impact on
financial expenditure
of +10% change in
currency
Group
financial
expenditure
Other risks
Credit risk
Main sources: amounts outstanding (customers, suppliers, banks, partners, etc.) and cost of replacement.
Customers: cost of late payments/defaults has been kept to levels near 1% of total invoicing.
Grids: in Spain and in the United Kingdom there is no retail sale of energy, in the United States and Brazil
mechanisms are in place to recover late payments through the tariffs.
Operational risk
These risks are mitigated by making the necessary investments, applying operation and maintenance
procedures and programmes (supported by quality systems), planning appropriate training and skills
development for staff, and finally by obtaining appropriate casualty and civil liability insurance.
Regulatory and
political risk
Group companies are subject to laws and regulations on tariffs and other regulatory aspects of their activities
in the countries in which they do business. The introduction of new laws/regulations or amendments to existing
ones could adversely affect operations, annual results and the financial value of the businesses of the Group.
Climate change
risk
This includes transition risks (primarily regulatory and market risks) and physical risks (an increase in extreme
climate events, increase in temperatures, rise in sea level, changes in rainfall patterns, etc.). Iberdrola believes
that it is well positioned with respect to this risk, given the nature of its current businesses, its main goals for
growth, and its ability to adapt. For more information, see the Statement of Non-Financial Information 2024 and
Note 6 to the financial statements in the Annual Financial Report 2024.
Annual impact:
< €15 M
€15 M - €50 M
> €50 M
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Internal audit
Internal Audit is an internal
and independent unit that
oversees the proper functioning
of the internal control and risk
management systems.
The primary function of the Internal Audit
Division, which reports to the Internal Audit and
Risk Division, is to independently and objectively
provide assurance and advisory services to add
value and improve the Company’s operations,
providing a systematic and disciplined approach
to assess and improve the effectiveness of the
Group’s risk management, internal control and
governance processes.
Internal Audit conduct is governed by that set
out in the Basic Internal Audit Regulations of
IBERDROLA, S.A. (the “Basic Regulations”),
which form part of the Company’s Governance
and Sustainability System. The Basic Regulations,
available on the corporate website, regulate,
among other aspects, the nature, organisation,
competencies, resources, activities, powers
and duties of the members of the Internal Audit
function, as well as its framework of relations
within the Group.
Internal Audit independence
The independence of the Internal Audit function
from executive responsibilities of management
is essential to ensure its objectivity, authority
and credibility. To ensure its independence, the
director of the Internal Audit and Risk Area reports
hierarchically to the chairman of the Board of
Directors and functionally to Iberdrola’s Audit and
Risk Supervision Committee (ARSC). Likewise,
there are Audit and Compliance Committees
(ACC) and Internal Audit divisions at the various
country subholding companies, with which there
are internal coordination mechanisms, working
under the same methodological and quality
framework defined in accordance with that set
out in the International Professional Practices
Framework approved by the Institute of Internal
Auditors.
In addition, the independence of the Internal
Audit function at Iberdrola this is established by:
accountability to the Board of Directors; unfettered
access to people, resources and data needed
to complete its work; and freedom from bias or
interference in the provision of audit services.
Internal Audit activities
The annual activity plans of Iberdrola’s Internal
Audit Division and the Internal Audit divisions
of the Group are prepared taking into account
the Company’s main risks, from a perspective
coordinated with other assurance functions, and
provide an independent view of the workings
and effectiveness of the risk management and
internal control systems in place in the Group. All
of this is in line with the requirements set by the
ARSC and the respective ACCs of the country
subholding companies, including the following
lines of work:
• Oversee the comprehensive system and
risk control established at Group level, and
its adequacy to ensure compliance with risk
guidelines and limits.
• Monitor the effective functioning of the
internal control over financial reporting system
(ICFRS) and internal control over sustainability
information system (ICSIS) to prepare and
present the Group’s financial and sustainability
information, as well as other information that
must be disclosed on a regular basis as a listed
company.
• Perform audits of the internal control systems
of the Company’s Compliance System, which
aims to prevent, manage and mitigate the risk
of regulatory and ethical breaches.
• Oversee the mechanisms for the implementation
of environmental, social and corporate
governance policies, among others.
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In addition, the Internal Audit Division assists the
Committee in carrying out its functions, in particular
with regard to overseeing the effectiveness of the
internal control and risk management system,
relations with the auditor and supervising the
process of preparing the corresponding financial
and sustainability information.
Commitment to professional
and quality standards
The conduct of the Internal Audit function is aligned
with the International Professional Practices
Framework of Internal Auditing approved by the
Institute of Internal Auditors (IIA), which contains,
among other aspects: (i) the definition of internal
auditing; (ii) the International Standards for the
Professional Practice of Internal Auditing in force
at any given time; and (iii) the Internal Code of
Ethics. This International Framework guides
the professional practice of the internal audit
profession throughout the Group, as a guarantee
of our commitment to quality and professional
practice.
The commitment to compliance with these
International Standards is embodied in the
fact that the Company maintains the most
relevant international certifications issued by
the Institute of Internal Auditors, the Quality
Assurance certification, which guarantees that
the Internal Audit function applies the highest
quality standards and works in accordance with
the International Standards for the Professional
Practice of Internal Auditing.
The members of Internal Audit have the most
relevant professional certifications, which
accredit the knowledge and experience of the
teams and their ongoing training, most notably
including: Certified Internal Auditor (CIA), Certified
Information System Auditor (CISA), Certified Fraud
Examiner (CFE), Certified in Risk Management
Assurance (CRMA), among others.
As part of its commitment to continuous
improvement and efficiency in operations,
the Internal Audit function has established a
strategic plan designed so that its activities are
carried out in such a way as to contribute to the
achievement of the organisation’s objectives.
This plan is based around three strategic pillars:
1) Digitalisation: through continuous innovation
and promoting the use of tools and techniques
based on data analytics and artificial intelligence,
2) Integrated assurance: through a collaborative
and coordinated approach with other internal
and external assurance functions, and 3) Agile -
Customer focus: improving communication, time
management, promotion of advisory and support
services in key projects, etc.
In 2024, Iberdrola’s Internal Audit Division was
awarded in the Transforma category in the first
year that the awards were given by the Institute
of Internal Auditors for Confidence in the Value
of Internal Audit, for its digital tool DIANA (Data
Intelligence Analytics for Audit). The tool, based
on artificial intelligence, aims to monitor possible
incidents in SAP transactions and communicates
with users via Teams. This system has led
to a tangible improvement in its processes,
communication and operational efficiency.
| Continuous innovation
for more efficient use
of digital tools and
techniques.
| Collaborative and
coordinated approach
with other assurance
functions.
| Focusing on relevant
tasks and “on-time”,
customer-focused
reviews.
Digitalisation
Combined
assurance
Agile - Customer
focus
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Ethics and integrity
Compliance System
Iberdrola has a Compliance System, which includes the rules, formal procedures and substantive
activities that are intended to ensure that the Company acts in accordance with ethical principles, the
law, and internal rules, particularly the Ethical and Basic Principles of Governance and Sustainability
of the Iberdrola Group, to contribute to the full realisation of the Purpose and Values of the Iberdrola
Group and the corporate interest, and to prevent, manage and mitigate the risk of regulatory and ethical
breaches that may be committed by its directors, professionals or suppliers within the organisation.
The Compliance System is under continuous review to incorporate the best international practices and
trends in this field and the regulatory requirements at any given time, and ensures the dissemination,
implementation and monitoring of the principles of conduct set out in this Compliance Policy and
Internal Reporting and Whistleblower Protection System Policy.
| Regular evaluation of risks
| Development of policies,
procedures and protocols
| Training, dissemination and
communication measures
| Regular reviews of the
system
| Grievance / whistieblower
channels
| Identification and evaluation
of compliance controls
| Investigation of grievances
/ whistleblowing
| Corrective measures for
the on-going improvement
of the Compliance System
Commitment of the
governance bodies
Integrated within organisation
Traceable and
documented system
Auditable and under
continuous improvement
Prevent
Detect
React
The fundamental elements of the Compliance System are, on the one hand, its crime prevention
programme and, on the other hand, the internal reporting system, which is comprised of, among other
things, various channels suitable for reporting potentially improper conduct or acts that are potentially
illegal or contrary to law or to the Governance and Sustainability System.
Iberdrola, S.A. and the other companies of the Group regularly submit their respective compliance
systems to an audit by an independent expert. Both the holding company and the country subholding
companies have publicly committed to maintaining and updating this external validation over time.
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Main areas of the System
| Regular and continuous identification and
assessment of the compliance risks of each of the
corporate functions and businesses
| Development and implementation of specific
regulations and controls to minimise the risk of crime,
specifically fraud and corruption
| Implementation and improvement of Crime
Prevention Programmes developed in accordance
with the Spanish Criminal Code
| Conduct to ensure compliance with regulations on
market abuse and separation of activities
| Training and communication activities aimed at all
professionals
| Continuous monitoring of the system through
appearances before the respective governing bodies,
regular audits and reviews by Internal Audit and
independent third parties
| Management of information channels
The Company’s Compliance Unit (the “Unit”)
proactively and autonomously oversees
the implementation and effectiveness of its
Compliance System, without prejudice to the
responsibilities corresponding to its other bodies
and divisions.
Accordingly, the country subholding companies
and the head of business companies have their
own compliance systems, the application and
effectiveness of which must be proactively and
autonomously monitored by their respective
compliance units, without prejudice to the
appropriate coordination carried out at all levels
of the Group.
The Unit and the compliance units of the country
subholding companies and of the head of business
companies, which are configured in accordance
with the highest standards of independence and
transparency, have the necessary autonomy and
capacity for initiative and control and have the
appropriate material and human resources to
perform their duties.
The Unit has powers related to the Code of Con-
duct for Directors, Professionals and Suppliers,
with respect to the effectiveness of the
Compliance System and related to the internal
reporting and whistleblower protection system,
the prevention of crimes, corruption and fraud,
the
securities
market,
the
separation
of
activities, and all other powers that may be
assigned to the Unit by the Sustainable
Development Committee or the Company’s
Board of Directors or that are assigned
through the Governance and Sustainability
System.
Principal recognitions
Iberdrola has the Compliance Leader Verification
certification from the Ethisphere Institute, which it
first obtained in 2018 and renewed in 2023, awarded
by the Ethisphere Institute to companies that
demonstrate the implementation of an ethical
culture and a robust and effective Compliance
System.
In 2024, Iberdrola renewed the certifications provided by AENOR in 2017: UNE-ISO 37001 on
anti‑bribery management systems and UNE 19601 on criminal compliance management systems.
As was the case in 2023, in
2024 Iberdrola, S.A. obtained
first place in the Ibex 35
ranking of transparency and
good governance in ethics and
compliance developed by the Haz y
Cumplen foundation.
Iberdrola has been chosen for the eleventh
consecutive year as one of the most ethical
companies in the world, according to the
World’s Most Ethical Companies 2024
ranking prepared by the Ethisphere Institute,
thus recognising the ethical leadership and
conduct of the organisation.
In 2024, Iberdrola, S.A. was recognised as a finalist in
the “Best use of disruptive technologies in the field
compliance” category in the 5th year of the Compliance
Awards of the Expansión newspaper. In previous years, it
was awarded “Most innovative company in the field of
compliance” (2023) and “Company with best compliance
practices” (2019).
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Cybersecurity and information privacy
Iberdrola, as a leading company in innovation, digitalisation and smart grids, attaches strategic
importance to cybersecurity, which is essential to develop and provide increasingly secure services and
operations in all the geographical areas in which it operates and in an increasingly complex ecosystem
and landscape posing various threats.
The commitment and involvement of the Group’s senior management —who aware of the importance
of leading the digital transformation in the energy sector, in which appropriate management of
cybersecurity risks is essential— is declared through a document detailing the Cybersecurity Risk
Guidelines, which are reviewed, updated and approved on an annual basis by the Board of Directors.
These guidelines promote a strong cybersecurity culture and contribute to strengthening capabilities for
protection, detection, prevention, defence and response to potential attacks or incidents.
Cybersecurity and information privacy
objectives
Protecting our critical
infrastructure
Ensuring energy supply reliability
and quality
Protecting the data of our
customers and other stakeholders
Guaranteeing the integrity and
confidentiality of financial and
business information
Protecting the brand and
reputation of the Iberdrola Group
The Company has established a global cyber
security strategy, which focuses on integrating
cybersecurity into business operations and
decision making and is based on six pillars:
Cyber
security
strategic
pillars
Governance
Cybersecurity
Culture
Proactive
Risk
Management
Resilience
Assurance
Collaboration
1. Establish a global governance system with
standard rules and criteria, assign roles,
functions, responsibilities and integrated
coordination mechanisms for decision-making.
2. Develop awareness and culture and provide
cybersecurity skills and knowledge at all levels
of the Company.
3. Proactive risk management through the
implementation of comprehensive risk
management plans (robust assessment and
threat intelligence), focusing on the protection
of confidential information and business-critical
processes and infrastructure.
4. Cyber resilience by developing robust
capabilities to detect, protect against, resist,
respond to and recover from cybersecurity
threats and incidents, minimising the impact
on business objectives and the continuity of
essential services.
5. Monitoring and assurance mechanisms for
critical and high-risk cyberinfrastructure to
proactively manage risks and vulnerabilities;
and ensure compliance with applicable internal
and external standards.
6. Collaboration with regulators and government
agencies, product and service providers,
other companies and ecosystem agents to
strengthen systemic resilience.
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Organisational structure and coordination
and decision-making bodies
The Group has set up an organisational
structure to lead the implementation of the
strategy, consisting of cybersecurity officers
or CISOs (Chief Information Security Officers),
at both the global and local level (Group,
subholding companies) and within each
business and corporate area (BISOs) with clearly
established roles and functions.
The cybersecurity strategy is integrated into
the Group’s strategic, tactical and operational
decision-making through coordination and
decision-making bodies:
• Global and local cybersecurity committees,
chaired by the corresponding CISOs and
representing all businesses and areas, in
which cybersecurity standards, frameworks and
models are shared, discussed and approved.
• A committee made up of the Group’s CEO,
the global CEOs of the businesses and the
CEOs of all subholding companies, which
meets on a quarterly basis to hear, decide and
promote specific cybersecurity initiatives and
plans in their respective areas of responsibility
linked to the Group’s strategic plans.
In addition, the Audit and Risk Supervision
Committees and the Boards of Directors of both
the holding company and each of the Group’s
subholding companies are regularly informed of
the cybersecurity risks identified by the Group,
and any changes to the strategy and mitigation
plans.
Furthermore, Iberdrola pays special attention to
ensuring the privacy of the personal information
of the Group’s stakeholders. The Company
therefore has a Personal Data Protection Policy
approved by the Board of Directors and that is in
line with the European General Data Protection
Regulation (GDPR). In addition, in recent years
a data protection management system has been
developed and implemented to ensure systematic
compliance over time with the GDPR, the Binding
Corporate Rules (BCRs) and the personal data
protection laws of each of the countries in which
the Group has a presence.
Responsibility for the protection of personal data
lies with the businesses and corporate functions,
organisations that process this data, under
the coordination and supervision of the Data
Protection Officer, with the support of the Legal
Services.
For more information, see the Consolidated
Statement of Non-Financial Information (SNFI)
and Sustainability Report published on Iberdrola’s
corporate website.
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About this report
Iberdrola’s public information
Glossary of terms and abbreviations
About this report
134
Integrated Report 2025
About this report
Integrated Report
• This report has been prepared taking into
consideration the separate annual financial
statements of Iberdrola, S.A. and the
consolidated financial statements of Iberdrola,
S.A. and its subsidiaries prepared by the Board
of Directors, audited and pending approval
by the shareholders of Iberdrola, S.A. at the
General Shareholders’ Meeting.
• To prepare the report, a multi-disciplinary team
made up of corporate businesses and areas was
created in order to provide a complete view of
the group of companies making up the Iberdrola
Group, their business model, the challenges and
risks they face, and their social, environmental,
financial and governance performance. The
participating organisations guarantee the
integrity of the information included.
• The main operating and financial figures were
also approved by the Company’s Board of
Directors at the meeting held on 25 February
2025, after a favourable report from the
Sustainable Development Committee and the
Audit and Risk Supervision Committee..
Material aspects
• Iberdrola, S.A. has channels of communication
and dialogue with its stakeholders, developed
in accordance with the principles of the AA1000
Assurance Standard, as described in detail
in the Stakeholder Engagement Policy and in
the Consolidated Statement of Non-Financial
Information (SNFI) and Sustainability Report.
• The Company performed a double materiality
analysis that brings to light particularly sensitive
financial, environmental, social and corporate
governance issues related to the businesses
in the various communities and geographical
areas in which the companies of the Iberdrola
Group operate.
Information boundaries
• The information presented relates to Iberdrola,
S.A. and its subsidiaries and investees. The
corresponding information boundaries are
defined in the consolidated financial statements
of Iberdrola, S.A. and its subsidiaries and in
the Consolidated Statement of Non-Financial
Information (SNFI) and Sustainability Report.
Group performance
The Group’s performance in recent years has
been influenced by certain external corporate
transactions, which the reader should take into
account in order to properly interpret this report.
These transactions are described in the Iberdrola
Group’s public information, the following being
particularly noteworthy:
• In Brazil, the inclusion of all the businesses
that the Group had through Elektro Holding,
S.A. within Neoenergia, S.A., which thus
became the Iberdrola Group’s country
subholding company in Brazil (August 2017),
the initial public offering of Neoenergia, S.A.
(July 2019) and the award at public auction
of 100% of the share capital of the Brazilian
Company CEB Distribuição, S.A. to a wholly-
owned subsidiary of Neoenergia, S.A.
(December 2020).
• In Mexico, an agreement was entered into
in 2023 for the sale of 13 power plants with
an installed capacity of 8,539 MW, of which
99% comprise gas-fired combined cycle
plants and 87% are plants operating under
the Independent Power Producer regime,
contracted with the CFE. The transaction was
carried out in 2024.
• In Australia, the acquisition of 98% of the share
capital of Infigen Energy Limited and Infigen
Energy RE Limited by Iberdrola Renewables
Australia Pty Ltd (October 2020).
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• The following transactions, among others, were
completed during 2024:
- United Kingdom: the transaction to acquire
100% of Electricity North West Limited (ENW),
a British electricity distribution company, was
completed.
- Iberdrola’s acquisition of 18.4% of the share
capital of its subsidiary Avangrid held by
minority shareholders and the subsequent
delisting of Avangrid’s shares.
- Agreement with Norges Bank Investment for
the joint investment of EUR 2 billion in Spain
and Portugal over the next 3 years.
- Senior bond issue for EUR 2.15 billion, the
largest issue in its history to date, to fund
growth in the UK.
- Takeover bid by the subsidiary Neoenergia for
6.89% of the share capital of the subsidiary
Neoenergia Cosern.
- A green loan for EUR 700 million taken out
with the European Investment Bank.
- Sale of Iberdrola’s business in Romania for
EUR 88 million.
- Iberdrola, ICO, Sabadell and HSBC took out
a green syndicated loan for EUR 500 million
with coverage through Cesce.
- First green bond issue by a Spanish company
for AUD 750 million.
- Placement of USD 525 million in green bonds
through the subsidiary Avangrid in the United
States.
- A loan of EUR 500 million was taken out with
the EIB in order to expand smart grids in
Spain.
Exclusion of liability
• The purpose of the Integrated Report 2025 (the
document) is to provide a detailed explanation
of the Group’s activities in 2024 and its future
outlook, at all times linking the operating and
financial parameters to Iberdrola’s contribution
to sustainability. As a result, this document
cannot be disclosed, made public or used by
any other individual or legal entity for a purpose
other than as stated above except with the
express written consent of Iberdrola, S.A.
• Iberdrola, S.A. does not assume any liability for
the content of the document if it is used for a
purpose other than the one described above.
• The document has been subject to a process of
internal review. Although it has not been subject
to a process of independent external assurance,
a significant portion of the information contained
herein relating to 2024 and to previous years
comes from the Annual Financial Reports and
the Statements of Non-Financial Information -
Sustainability Report, all of which have been
the subject of an external audit or assurance.
All other information comes mainly from other
reports or public presentations. However,
there is no express or implied guarantee as
to the impartiality, accuracy, completeness or
correctness of the information or the opinions
and statements expressed in this document.
• Neither Iberdrola, S.A. nor its subsidiaries
or other companies of the Iberdrola Group or
the companies in which Iberdrola S.A. has
an interest (investees) assume any liability,
regardless of any negligence or any other
circumstance, for any loss or damage that
might arise from any use of this document or
the contents hereof.
• Neither this document nor any part hereof is
contractual in nature, nor may they be used to
integrate or interpret any contract or any other
kind of undertaking.
• The information included in this document
regarding the sale or purchase price of securities
issued by Iberdrola, S.A. or regarding the
performance of such securities may not be used
as a basis to predict the future performance of
securities issued by Iberdrola, S.A. In particular,
statements or representations regarding historical
performance are not intended to imply that
future performance, share price or future results
(including earnings per share) for any given
period will necessarily match or exceed those of
a previous year. Nothing in this document should
be construed as a forecast of future profits.
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Important information
This document does not constitute an offer or
invitation to purchase or subscribe shares, in
accordance with the provisions of Regulation
(EU) 2017/1129 of the European Parliament and
of the Council, of 14 June 2017, on the prospectus
to be published when securities are offered to
the public or admitted to trading on a regulated
market, and repealing Directive 2003/71/EC, and
its implementing regulations.
Neither does this document represent an offer to
purchase, sell or exchange offer or the solicitation
of an offer to purchase, sell or exchange securities,
or for the solicitation of any vote or approval in
any other jurisdiction.
The shares of Iberdrola, S.A. may not be offered
or sold in the United States of America except
pursuant to registration as provided for in the
Securities Act of 1933 or pursuant to a valid
exemption from the duty to register.
The shares of Iberdrola, S.A. may not be offered or
sold in Brazil, unless Iberdrola, S.A. is registered
as a foreign issuer of negotiable securities and
a public offer is registered for the securities that
its shares represent (depositary receipts), in
accordance with the provisions of the Securities
Market Act 1976 (Federal Law number 6,385 of 7
December 1976, in its current form), or pursuant
to an exemption from registration of the offer.
This document and the information contained
herein have been prepared and are presented
in accordance with International Financial
Reporting Standards (IFRS) as adopted by the
European Union.
In addition to the financial information prepared in
accordance with International Financial Reporting
Standards (IFRS), this Report includes certain
Alternative Performance Measures (“APMs”)
for the purpose of that set out in Commission
Delegated Regulation (EU) 2019/979 of 14
March 2019 and as defined in the Guidelines on
Alternative Performance Measures published by
the European Securities and Markets Authority on
5 October 2015 (ESMA/2015/1415en). The APMs
are financial performance measures prepared
on the basis of financial information regarding
Iberdrola, S.A. and the companies of its Group
but are not defined or described in the applicable
financial reporting framework. These APMs are
used to contribute to a better understanding of
the financial performance of Iberdrola, S.A., but
they should only be considered as additional
information and in no case do they replace the
financial information prepared in accordance with
the IFRS. In addition, the way in which Iberdrola,
S.A. defines and calculates these APMs may differ
from that of other entities using similar measures,
meaning that they may not be comparable.
Finally, it should be taken into account that some
of the APMs used in this Report have not been
audited. For more information on these issues,
including their definition and a reconciliation
between the relevant management indicators
and the consolidated financial information
prepared in accordance with the IFRS, see the
relevant information included in the Report and
the information available on the corporate website
(www.iberdrola.com).
This document does not contain, and the
information included herein does not constitute,
an announcement, statement or notice regarding
the profits of Neoenergia, S.A. (“Neoenergia”) or
its financial results. Neither Neoenergia nor its
subsidiaries assume any liability whatsoever for
the information contained in this document. For
information on Neoenergia’s financial results,
see the investor relations section of its corporate
website (https://ri.neoenergia.com/) and the
website of the Brazilian National Securities Market
Commission (Comissão de Valores Mobiliários,
CVM) (www.cvm.gov.br).
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Forward-looking statements
• This document contains forward-looking
information and statements about Iberdrola,
S.A. Such statements include financial
projections and estimates and their underlying
assumptions, statements regarding plans,
objectives and expectations with respect to
future operations, investments, synergies,
products and services, and statements
regarding future performance. Forward-looking
statements are statements that are not historical
facts and are generally identified by the words
“expects”, “anticipates”, “believes”, “intends”,
“estimates” and similar expressions.
• Although Iberdrola, S.A. believes that the
expectations reflected in such statements are
reasonable, investors and holders of Iberdrola
S.A.’s shares are cautioned that forward-looking
information and statements are subject to risks
and uncertainties, many of which are difficult
to predict and generally beyond the control of
Iberdrola, S.A., that could cause actual results
and developments to differ materially from
those expressed in, or implied or projected by
the forward-looking information and statements.
These risks and uncertainties include those
discussed or identified in the documents filed
by Iberdrola, S.A. with the National Securities
Market Commission and which are available to
the public.
• Forward-looking statements speak only as of
the date on which they were made, are not
guarantees of future performance, and have not
been reviewed by the auditors of Iberdrola, S.A.
You are cautioned not to place undue reliance
on the forward-looking statements. All the
forward-looking statements made by Iberdrola,
S.A. or any of its directors, officers, employees
or representatives are expressly qualified
by the foregoing cautionary statements. The
forward-looking statements included in this
document are based on information available
on the date of approval of this communication.
Except as required by applicable law, Iberdrola,
S.A. undertakes no obligation to publicly
update any statements or revise forward-
looking information, whether as a result of new
information, future events or otherwise.
• Iberdrola, S.A. undertakes to use its best
endeavours to meet its goal of achieving carbon
neutrality for its Scopes 1 and 2 by 2030. It will
align its strategy, investments, activities and
public positioning accordingly. Additionally,
Iberdrola, S.A. also commits to face the energy
transition by ensuring the creation of value
for its shareholders, employees, customers,
suppliers and the communities in which it does
business. Iberdrola, S.A. therefore reserves
the ability to adjust its planning to successfully
perform in significant material aspects, such as
the value of Iberdrola, S.A., quality of supply,
social/labour conditions, and a fair transition.
These commitments are aspirational in nature.
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Iberdrola’s public information
Iberdrola provides its stakeholders with all relevant information regarding the Company’s performance
in a systematic and accessible manner.
Annual information
Annual Financial Report
Prepared in accordance with International Financial
Reporting Standards (IFRS) and audited.
Annual Corporate Governance Report
Prepared in accordance with the model of the
Spanish National Securities Market Commission
(CNMV).
Annual Director Remuneration Report
Prepared according to the form provided by the
National Securities Market Commission of Spain.
Consolidated Statement of Non-Financial
Information (SNFI) and Sustainability Report
Prepared in accordance with Law 11/2018, of
28 December, Directive (EU) 2022/2464 of the
European Parliament and of the Council of 14
December 2022 (CSRD), and ESRS standards,
and externally verified.
Additional information
• Digital integrated annual report
• Quarterly Results Report
• Presentation of results
• IBE Watch Fact Sheet
• Quarterly Shareholder Bulletin
• Greenhouse Gas Report
• Biodiversity Report
• Report on Tax Transparency of the Iberdrola
Group
• Compliance System Transparency Report
Access the annual reports for financial
year 2024 and supplementary
documentation regarding the Iberdrola
Group by scanning the corresponding
QR code using your smart phone or
tablet.
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Glossary of terms and abbreviations
Term
Definition
ACC
Audit and Compliance Committee
AENOR
Spanish Association for Standardisation and Certification (Asociación Española de Normalización
y Certificación)
AI
Artificial intelligence
ANEEL
National Electrical Energy Agency (Agência Nacional de Energia Elétrica), Brazil
APMs
Alternative Performance Measures
ARSC
Audit and Risk Supervision Committee
BISOs
Business Information Security Officer
BP
British Petroleum
CAIDI
Customer Average Interruption Duration Index.
CAPEX
Capital Expenditures
CEO
Chief Executive Officer
CfD
Contract for Difference
CISO
Chief Information Security Officer
CNMV
National Securities Market Commission (Comisión Nacional del Mercado de Valores), Spain
CO2
Carbon dioxide
COP
Conference of the Parties
DANA
Isolated high altitude depression
DEC
Equivalent Frequency of Interruption by Consumer Unit
DSO
Distribution System Operator
EBIT
Earnings Before Interest and Taxes
EBITDA
Earnings Before Interests, Taxes, Depreciations and Amortizations
EIB
European Investment Bank
EIS
Environmental Impact Statement
EMEA
Europe, the Middle East and Africa
ENW
Electricity North West
EPS
Earnings Per Share
FEC
Equivalent Frequency of Interruption by Consumer Unit.
FEM
Finite element method
GBP
Green Bond Principles
GWh
Gigawatt hour
HVDC
High-Voltage Direct Current
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Term
Definition
i-DE
Iberdrola Distribución Eléctrica
ICFRS
Internal Control over Financial Reporting System
IEI
Iberdrola Energía Internacional
ISO
International Organization for Standardization
kg
Kilogram
Km
kilometre
KPI
Key Performance Indicator
MW
Megawatt
NIEPI
Installed Capacity Equivalent Interrupt Number
Nm3
Normal cubic meter
OECD
Organization for Economic Cooperation and Development
OPEX
Operating Expenses
PBT
Profit Before Tax
PER
Price-to-Earnings Ratio
R&D
Research and Development
RAB
Regulatory Asset Base
RIIO
Revenue=Incentives+Innovation+Outputs. (T2 for transport, ED2 for distribution)
S.A.
Public Limited Company (Sociedad Anónima)
SAIFI
System Average Interruptions Frequency Index
SHs
Stakeholders
SNFI
Statement of Non-Financial Information
SP
ScottishPower
STEM
Science, Technology, Engineering & Mathematics
TIEPI
Installed Capacity Equivalent Interrupt Time
UN
United Nations
UNE
Spanish Association for Standardisation (a Spanish standard)
UNICEF
United Nations International Children's Emergency Fund
US
United States of America
VHF
Very High Frequency
WEO
World Energy Outlook
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Integrated Report 2025
Published by: IBERDROLA, S.A.
Spain
© 2025 IBERDROLA, S.A. All rights reserved.
For purposes of Section 32 of the consolidated text of the Intellectual Property Act approved by Royal
Legislative
Decree 1/1996, of 12 April, IBERDROLA, S.A. expressly objects to any commercial use of this publication
without its express approval, particularly including any reproduction, modification, registration, copy,
exploitation, distribution, communication, transmission, delivery, re-use, publication, processing or any
other total or partial use of this publication in any way, means or format.
Except as allowed by law, any form of reproduction, distribution, public communication or transformation
of this work may only be performed with the prior approval of IBERDROLA, S.A.
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143
Imagine, innovate, create, build, make it happen and ... continue.
Continue, in order to keep growing.
Building new pathways has made us the world’s leading innovative electric company.
A sustainable company, with distinctive growth, because our work leaves a positive
legacy for society and for the planet: growing through an energy model that protects
nature, creates value for shareholders and generates progress and well-being for
society, improving the present and the future for current and future generations.
This is the path by which we will continue to grow.
Keep growing, keep building a better world.