Quality Policy

Quality Policy

25 March 2025

The Board of Directors of IBERDROLA, S.A. (the “Company”) has the power to design, assess and continuously revise the Company’s Governance and Sustainability System, and specifically to approve and update policies, which contain the guidelines governing the conduct of the Company, and furthermore, to the extent applicable, inform the policies that the companies belonging to the group of which the Company is the controlling entity, within the meaning established by law (the “Group”), decide to approve in the exercise of their autonomy.

In exercising these powers, within the framework of legal regulations, the By-Laws and the Purpose and Values of the Iberdrola Group, and aware that the excellent management of all the processes and resources of the companies belonging to the Group is an essential lever for the sustainable creation of value for the Company’s Stakeholders, the Board of Directors hereby approves this Quality Policy (the “Policy”), which respects, further develops and adapts the Ethical and Basic Principles of Governance and Sustainability of the Iberdrola Group with respect to the Company.

The Company conceives of quality as one of the basic principles making up the third of the corporate values provided for in the Purpose and Values of the Iberdrola Group, namely, driving force, which reflects the commitment to innovation and seeks to make into reality small and large changes that make life easier for people through efficiency, self-discipline and the constant search for ongoing improvement, which encompasses a commitment to other values like simplicity, agility and foresight.

1. Scope of Application

This Policy applies to the Company. Without prejudice to the foregoing, it includes basic principles that, in the area of the sustainable value chain, and particularly quality, complement those contained in the Ethical and Basic Principles of Governance and Sustainability of the Iberdrola Group and, to this extent, must inform the conduct and standards-setting implemented by the other companies of the Group in this area in the exercise of their powers and in accordance with their autonomy.

To the extent that listed country subholding companies form part of the Group, they and their subsidiaries, under their own special framework of enhanced autonomy, may establish principles and rules that must have content consistent with the principles of this Policy.

To the extent applicable, these principles must also inform the conduct of the foundations linked to the Group.

For companies that do not form part of the Group but in which the Company holds an interest, as well as for joint ventures, temporary joint ventures (uniones temporales de empresa) and other entities in which it assumes management, the Company shall also promote the alignment of its regulations with the basic principles regarding the sustainable value chain, and particularly quality, contained in this Policy.

2. Purpose

The purpose of this Policy is to establish the main principles of conduct to strengthen the competitiveness of the energy products and services supplied through efficiency in energy generation, transmission and distribution processes, paying special attention to excellent management of processes and resources.

3. Main Principles of Conduct

To achieve the aforementioned goals, the Company adopts and promotes the following main principles of conduct that inform all of its quality-related activities:

a) To drive towards operational and management excellence, strengthening a culture of continuous improvement in order to increase competitiveness and the creation of value for Iberdrola’s people, shareholders and the financial community, and other Stakeholders of the Company.

b) To advance the quality management systems, giving priority in the implementation thereof to contributing value to the various organisations of the Company. In particular, the transformation of the energy model towards greater electrification and the impact of digitalisation and new business models at the Group level make it necessary to continuously evaluate the tools supporting the processes, including quality management systems, in order to achieve operational excellence in management.

c) To focus on its Stakeholders, working to identify and satisfy or even exceed their expectations.

d) To engage all professionals through teamwork, an appropriate flow of information, internal communication, training, equality of opportunity and recognition of achievements.

4. Group-level Coordination

The quality model established at the Group level, which forms part of the Group’s Business Model, is structured through a global quality management system that coordinates and supervises the quality management systems of the various corporate areas and businesses to take advantage of the synergies deriving from belonging thereto and driving compliance with the main principles of conduct provided for in this Policy and in the Ethical and Basic Principles of Governance and Sustainability of the Iberdrola Group regarding quality.

The Company's Innovation, Environment and Quality Division (or such division as assumes the powers thereof at any time) has approved quality guidelines that define the general strategic lines, consistent with the main principles of conduct set forth in this Policy and in the Ethical and Basic Principles of Governance and Sustainability of the Iberdrola Group regarding quality and the commitment to ongoing improvement. These strategic lines are communicated to the other companies of the Group, which develop and implement them into quality objectives and targets at their different organisational levels, respecting the Group’s corporate and governance structure.

Furthermore, to ensure homogeneous quality practices and levels at the Group level, the Company’s Innovation, Environment and Quality Division (or such division as assumes the powers thereof at any time) has approved a manual and a set of general quality procedures, as well as a global scoresheet that regularly monitors the goals and action plans of the various corporate areas and businesses.

5. Implementation and Monitoring

For the implementation and monitoring of the provisions of this Policy and the quality model, the Board of Directors is assisted by the Innovation, Environment and Quality Division (or such division as assumes the powers thereof at any time), which shall further develop the procedures required for such purpose.

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This Policy was initially approved by the Board of Directors on 18 December 2007 and was last amended on 25 March 2025.