ESG at Iberdrola
Promoting responsible management
The key to our long-term value creation strategy is the combination of financial and social dividends, aimed at meeting the expectations of all our stakeholders and integrating ESG into the company's strategy and management.
The integration of ESG into our business model has been a constant feature of our strategy for more than 20 years and has become a cornerstone of our growth. Our leadership in sustainable financing (+F) enables us to articulate these commitments.
What are ESG criteria?
The acronym ESG stands for Environmental, Social and Governance. In practice, they refer to the factors that make a company sustainable through its environmental, social and governance commitments. A company that aligns itself with these principles is aware that its business can have an impact on the planet.
The origin of this acronym dates back to the 1990s as a response to a growing concern among investors about how corporate activity could impact society and the environment. A major step towards corporate responsibility came in 1999 with the publication of the first global index governed by sustainability criteria, the Dow Jones Sustainability Index.
However, the real transformation came with the launch of the Principles for Responsible Investment 
External link, opens in new window. (PRI) published in 2006. Born under the aegis of the United Nations, the ESG concept emerged. These criteria evolve from the concept of Socially Responsible Investment (SRI) but go further with a global approach in all processes transcending the business.
It is precisely when companies work on their sustainability within the framework of the 2030 Agenda and the Sustainable Development Goals (SDGs) that they are acting on those criteria. Their relevance is increasing due to the growing global commitment to the planet and society, and getting it right when identifying, managing and measuring ESG criteria has consequences for the company's ability to receive investment, leverage on its reputation and maintain the sustainability of the business.
How do we apply ESG criteria?
The key to the long-term value creation strategy is the combination of financial and social dividends, aimed at meeting the expectations of its stakeholders and integrating ESG aspects into the company's strategy and management.
The real and effective implementation of the sustainable development strategy, together with the Governance and Sustainability System, is set to be one of the keys that differentiates us from our competitors, sharing our achievements with our stakeholders. This commitment is materialised in our commitment to ESG factors, which are integrated into Iberdrola's day-to-day activities and are put into practice in the following areas:
Environmental
Decades ago, we made a firm commitment to develop a sustainable energy model, a model based on the use of renewable energies, smart grids, efficient energy storage, and the promotion of the electrification of demand as an energy vector for competitive and efficient decarbonisation. To ensure that the group's activities are carried out in harmony with nature, we work on three fronts that constitute our vision of "Iberdrola: Positive towards Nature": the fight against climate change, the conservation of biodiversity, and the circularity of resources.
Social
We focus on the creation of shared value for all stakeholders and respect for human rights in the execution of all our operations and those of our value chain. We contribute to the creation and maintenance of quality jobs, focusing on diversity, job security and improving our employees’ skills. We work to continuously improve the quality of the products and services we offer our customers, developing solutions that take into account their real needs and provide them with ever greater autonomy. Finally, we collaborate with the development of the communities where we operate through our companies and foundations in the different countries.
Corporate governance
Our Governance and Sustainability System is one of our hallmarks and is the cornerstone of our commitment to sustainability. Starting with the composition and structure of the governing bodies, in line with best practices, the entire system is built on a commitment to maintaining a culture based on ethics, transparency, good governance, regulatory compliance, robustness, coordination and accountability at all levels.
A commitment to ESG criteria in our activities
ESG: How can we make sustainable and responsible investments?
Corporate Social Responsibility (CSR) is a priority for companies that are truly committed to the communities where they do business. In this sense, ESG criteria, which cover environmental, social and corporate governance considerations, are key to making more responsible investments in the planet.
Discover the ESG criteriaPromoting ESG criteria among our suppliers
We have extended our commitment to ESG criteria to our more than 20,000 suppliers worldwide. To do so, we have designed a model to evaluate the performance of each supplier in terms of the three ESG axes. Suppliers who earn a low rating will receive support from Iberdrola to identify areas for improvement.
Get to know our sustainable value chainESG: How can we make sustainable and responsible investments?
Corporate Social Responsibility (CSR) is a priority for companies that are truly committed to the communities where they do business. In this sense, ESG criteria, which cover environmental, social and corporate governance considerations, are key to making more responsible investments in the planet.
Discover the ESG criteriaPromoting ESG criteria among our suppliers
We have extended our commitment to ESG criteria to our more than 20,000 suppliers worldwide. To do so, we have designed a model to evaluate the performance of each supplier in terms of the three ESG axes. Suppliers who earn a low rating will receive support from Iberdrola to identify areas for improvement.
Get to know our sustainable value chainOur ESG performance
Highlights of the application of international ESG+F criteria at Iberdrola.
MW of installed renewable capacity by the end of 2023
gCO2MWh in generation by the end of 2023
M€ invested in R&D&I in 2023
M rees planted by the end of 2023
procurement from sustainable suppliers by 2023
public charging points by 2023
residential charging points by 2023
M beneficiaries of the "Electricity for All" programme by the end of 2023
women on the Board of Directors by the end of 2023
independent directors on the Board by the end of 2023
facilities with Stakeholder Relationship Model implemented
Main ESG reports published in the period
Sustainability Report 2023
PDF | 31,7 MB
Biodiversity Report 2024
PDF | 39,9 MB
Compliance System Transparency Report 2023
PDF | 1,7 MB
Greenhouse Gas Report 2023
PDF | 3,2 MB
We drive ESG criteria with our strategy
Over the past two decades, ESG factors have formed an integral part of Iberdrola's strategy, consolidating us today as leaders in ESG+F, supporting environmental, social and governance aspects of our financial strength.
The first formal global sustainability roadmap was laid out in 2020 and has been updated twice, associated with the need to respond to our stakeholders’ expectations and ensure alignment with our corporate priorities.
In March 2024 we released the most recent update to our ESG+F objectives [PDF] to maintain our path of increasing ambition regarding the energy transition and our commitment to creating value for all our stakeholders. We also updated the structure of this roadmap around five pillars that demonstrate real and effective integration of sustainability into the strategy.
Our ESG+F objectives
We apply ESG+F criteria to achieve five goals set out in our sustainability roadmap:
Promote electricity as a clean, independent, local, stable, secure and competitive source of energy
Work to ensure a sustainable value chain
Protect nature and promote resource efficiency
Foster human and social capital
Maintain our culture of ethics, transparency and good governance
Responsible management, key to energy transition
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Ofiso's award for the best track record in sustainable finance
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EMEA's best regulated utility award from Citywire
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Iberdrola is the best ESG reporting utility in the world
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Avangrid recognized globally for strong ESG performance on FTSE4Good Index
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Considered the Spanish company with the best corporate governance by World Finance
More about ESG
