Selection and Hiring Policy

Selection and Hiring Policy

19 March 2024

The Board of Directors of IBERDROLA, S.A. (the "Company") has the power to design, assess and continuously revise the Governance and Sustainability System, and specifically to approve and update the corporate policies, which contain the guidelines governing the conduct of the Company and of the companies belonging to the group of which the Company is the controlling entity, within the meaning established by law (the "Group").

In fulfilling these responsibilities, aware that the strategic goals at the Group level could not be achieved without the support of a well-qualified, diversified and motivated workforce, and in compliance with the provisions of the Purpose and Values of the Iberdrola Group, the Board of Directors hereby approves this Selection and Hiring Policy (the "Policy"), the text of which shall be interpreted in accordance with the Diversity and Inclusion and Anti-Harassment Policy and is consistent therewith.

1. Purpose

The purpose of this Policy is to further the contribution to Sustainable Development Goals (SDGs) five and eight approved by the United Nations (UN), promoting economic and sustainable growth, as well as equality of opportunity in all of the selection and hiring processes of the Group’s companies. 

The success of the business enterprise is critically dependent upon attracting, selecting and retaining the best talent in order to engage professionals with the skills, knowledge, abilities and behaviour reflected in the Purpose and Values of the Iberdrola Group and in the Code of Ethics, thus attending to current and future needs of the Group’s companies, all in accordance with applicable law and the best professional practices.

2. Scope of Application

This Policy applies to all companies of the Group, as well as to all investees not belonging to the Group over which the Company has effective control, within the limits established by law.

Without prejudice to the provisions of the preceding paragraph, listed country subholding companies and their subsidiaries, based on their own special framework of strengthened autonomy, may establish an equivalent policy, which must be in accord with the principles set forth in this Policy and in the other environmental, social and corporate governance and regulatory compliance policies of the Governance and Sustainability System.

At those companies in which the Company has an interest and to which this Policy does not apply, the Company will promote, through its representatives on the boards of directors of such companies, the alignment of their own policies with those of the Company.

This Policy shall also apply, to the extent relevant, to the joint ventures, temporary joint ventures (uniones temporales de empresas) and other equivalent associations, if the Company assumes the management thereof.

3. Main Principles of Conduct

To achieve the aforementioned goals, the following main principles of conduct that must govern the selection and hiring activities of the companies comprising the Group are adopted and promoted at the Group level:

a) develop an overall framework to harmonise talent recruitment, selection and hiring procedures within the companies of the Group that guarantees the ability to integrate, motivate and retain the best talent, as well as to uphold the legal and ethical principles expected from a trusted company, consistent and aligned with the Purpose and Values of the Iberdrola Group and with the principles of the Code of Ethics. For these purposes, said overall framework must:

• comply with applicable labour laws in each country;
• valuing and promoting internal talent;
• establish the conduct necessary to eliminate biases and barriers that prevent equal access to professional opportunities;
• ensure that selection is carried out exclusively on the basis of merit and capability, including all candidates meeting the knowledge, aptitudes, abilities and skills profile required for the various positions and guaranteeing equal treatment throughout the process; and
• guarantee absolute confidentiality to all candidates, in accordance with personal data protection laws and regulations;

b) take care that the selection and hiring processes are objective and impartial and that the hiring of the most qualified candidates is prioritised, avoiding any interference in the selection processes;

c) ensure that during the talent recruitment and selection process, candidates are provided with an experience that prioritises clear communication, frequent feedback, an efficient process and a reliable infrastructure;

d) encourage the access of young people to their first job through scholarship programmes, programmes for graduates and other agreements;

e) present to the candidates an attractive and comprehensive job offer of value based on equal opportunity, diversity and inclusion, and made up of competitive remuneration, a broad offer of professional training and development, a healthy, safe, diverse and inclusive work environment, contribution to the business enterprise, and measures facilitating reconciliation between personal and working life, seeking for the experience of the candidates during the selection process and their subsequent integration within the companies of the Group to be completely satisfactory;

f) promote the hiring of its professionals using stable contracts;

g) communicate the purpose and values of the Group’s companies to the candidates and respond to their concerns relating to the selection process; and

h) favour the hiring of people from groups that are excluded or with less easy access to the labour market, and those with disabilities.

This Policy was initially approved by the Board of Directors on 11 March 2008 and was last amended on 19 March 2024.