The Driving Ideas of the Governance and Sustainability System

The Company is committed to contributing to the achievement of the Sustainable Development Goals (SDGs) approved by the United Nations (UN). It not only contributes decisively to meeting objectives seven and thirteen relating to the supply of affordable and clean energy and the fight against climate change, but in its daily activities also considers the seventeen goals as guidance in its decision-making processes, the principles of which inform its conduct and its daily tasks, rejecting actions that contravene them or hinder the achievement thereof.

The rules of the Governance and Sustainability System that include the Sustainable Development Goals "driving idea" are the following:

Climate change is one of the most important challenges that humanity must currently cope with. The Company recognises the contribution of its activities to climate goals and commits itself to taking on a leadership role in the fight against climate change, as well as to protecting the environment and biodiversity.

The rules of the Governance and Sustainability System that include the Climate Change and Environment "driving idea" are the following:

The Company is committed to a proactive search for two-way interaction with the Company’s shareholders in order to encourage their engagement in corporate life and forge a sense of belonging, maintaining a constructive, ongoing and effective dialogue with them.

The rules of the Governance and Sustainability System that include the Shareholder Engagement "driving idea" are the following:

The Company has established the development of professional relationships based on diversity, inclusion and a sense of belonging, equal opportunity and non-discrimination, as well as the management of people, as a strategic objective. In particular, it regards the achievement of gender equality within the Company to be one of the essential values of the organisation.

The rules of the Governance and Sustainability System that include the Gender Diversity "driving idea" are the following:

The corporate and governance structure of the Iberdrola Group is based on a recognition of its multinational character, which is diversified, organised efficiently and coordinated around the Company and the country subholding companies and head of business companies, subject to basic common guidelines and the principle of subsidiarity, which seeks a balance between decentralised management and the exploitation of the synergies that arise from belonging to the Group.

The rules of the Governance and Sustainability System that include the Decentralised Structure "driving idea" are the following:

The Company promotes a preventive culture based on the principle of “zero tolerance” towards improper conduct and acts that are illegal or contrary to law or the Governance and Sustainability System, on the one hand, and on the other the application of ethical principles and principles of responsible behaviour that should govern the conduct of all members of the management decision-making bodies, professionals and suppliers of the Company. This culture inspires its effective, autonomous, independent and robust Compliance System, which is under continuous review in order to adopt the most advanced international practices and trends and new regulatory requirements in this area.

The rules of the Governance and Sustainability System that include the Compliance "driving idea" are the following: