ESG at Iberdrola

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.

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.