Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Renewable Energy
• Sustainable Development Goals (SDGs)
• Diversity & Inclusion
• Governance
• Social Responsibility
• Economic Performance
• Environmental Protection
• Supply Chain Sustainability
• Human Rights
• Safety

Environmental Achievements

• Increased emission-free installed capacity to more than 32,000 MW (67% of total capacity), avoiding 63 million tonnes of CO2 emissions over the last three years.
• Reduced CO2 emissions by 70% compared to the European electricity sector average (2015).

Social Achievements

• 4,100 new hires in 2017, including 900 trainees.
• Over 1.5 million training hours provided (four times the European average).
• 2,300 internal promotions.
• Inclusion in Bloomberg Gender-Equality Index.
• Electricity for All Programme reached 3,900,000 beneficiaries in 2017.

Governance Achievements

• ISO 37001 certification for an effective Anti-Bribery Management System.
• UNE 19601 certification for an effective criminal compliance management system.
• First Ibex-35 company to certify its General Shareholders’ Meeting as a sustainable event (ISO 20121).

Climate Goals & Targets

Environmental Challenges

• Climate change risks (extreme weather, resource changes, market shifts, regulatory changes).
• Supply chain disruptions.
• Water scarcity.

Mitigation Strategies

• Investment in renewable energy, networks, and storage.
• Development of alternative sourcing strategies.
• Rational and sustainable water use.
• Implementation of a Comprehensive Risk Control and Management System.
• Supplier audits and responsible procurement practices.

Supply Chain Management

Responsible Procurement

• Procurement Policy
• Suppliers’ Code of Ethics
• Environmental and social criteria in supplier selection
• Supplier sustainability requirements

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions
• Changes in wind and hydraulic resources
• Changes in demand

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Investment opportunities
• New services and markets
• Advantages in financing
• Strengthening of corporate reputation

Reporting Standards

Frameworks Used: GRI Standards: Comprehensive option, Global Reporting Initiative (GRI) guidelines

Certifications: ISO 14001, ISO 37001, UNE 19601, ISO 20121, ISO 14064-1:2006

Third-party Assurance: PricewaterhouseCoopers Asesores de Negocio, S.L.

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 13 (Climate action)

Iberdrola's activities contribute to these goals through investments in renewable energy, energy efficiency initiatives, and climate change mitigation strategies.

Sustainable Products & Innovation

• Smart Solar
• Smart Irrigation
• Customer app

Awards & Recognition

• V Best Mobility Practices Award (Renault)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Circular Economy
• Social Development
• Just Transition
• Governance

Environmental Achievements

• Achieved CO2eq neutrality by 2030 for Scopes 1 and 2 (target).
• Aiming for net-zero emissions by 2040.
• 52 GW of installed renewable capacity (target).
• Over 83% smart grids by 2025 (target).
• Launched EnergyLOOP program for recycling renewable facility components.
• Iberdrola 2020-2030 Trees Programme goal of planting 20 million trees by 2030, estimated to contribute to the capture of up to 6 MtCO2eq in 30 years.

Social Achievements

• Iberdrola-UNICEF alliance fostering training and employability opportunities in green economy for vulnerable youth.
• Citizen Innovation Platform in Lada and Velilla to address job losses from plant closures.
• Convive Programme integrating socio-economic development, biodiversity conservation, and alliances.
• Electricity for All Programme goal to provide electricity to 16 million people by 2030.
• Agreement for a fair energy transition for thermal power plants in closure in Spain.

Governance Achievements

• Formalized obligation of the Board of Directors to approve, supervise, and regularly report on the Climate Action Plan.
• Remuneration structure for executive directors and management team includes sustainability aspects.
• New long-term remuneration plan (2023-2025 Strategic Bonus) includes parameters related to SDGs.

Climate Goals & Targets

Environmental Challenges

• Unfavorable developments in electricity prices, fuel costs, emission allowances, and commodity prices.
• Changes in demand.
• Rising cost of insurance.
• Impact of climate change on counterparties.
• Regulatory and tax changes.
• Increasing reporting needs.
• Third-party claims.
• Risks associated with non-mature technologies.
• Accelerating distributed generation.
• Exposure to stranded assets.
• Stigmatization of the industry.
• Changes in consumer habits.
• Increased concern with negative stakeholder feedback.
• Physical risks from extreme weather events, rising sea levels, changes in precipitation patterns.
• Transition risks from regulatory changes, market shifts, technological advancements.

Mitigation Strategies

• Promotion of PPAs and green finance.
• Integration of wholesale and retail activities.
• Internal projections of electricity prices.
• Analysis of climate change risks for new investments.
• Third-party credit analysis.
• Negotiating capacity of the Group.
• Strong internal governance.
• Diversification.
• Active participation in partnerships and forums.
• Accumulated experience in risk monitoring.
• Investment concentrated in grids and mature renewable technologies.
• Development of new projects based on emerging technologies.
• Analysis of transition scenarios.
• Using new materials, designing overhead lines for demanding conditions.
• Increased digitalization, reliable and resilient electricity supply.
• Investment in storage technology.
• Geographic diversification.
• Optimisation of operating conditions.
• Flood protection structures.
• Improving emergency plans.
• Predictive systems.
• Insurance coverage.
• Gradual asset renewal.
• Regulatory coverage in the Networks business.
• Diversification of assets.
• Consideration of climate change in new investment decisions.

Supply Chain Management

Responsible Procurement

• Sustainable development standards for suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Rising sea levels
• Changes in precipitation patterns
• Heatwaves
• Fires
• Cold snaps
• Storms
• Flooding

Transition Risks

• Regulatory changes
• Market shifts
• Technological advancements
• Changes in demand
• Unfavorable electricity prices
• Rising fuel costs
• Increased emission allowances
• Commodity price fluctuations

Opportunities

• Growth in renewables
• Investments in smart grids
• Electrification of transport
• Green energy
• Development of energy-efficient products
• Increased penetration of renewables and storage
• Increased significance of networks
• Increased electrification of end uses
• Improved energy efficiency
• Advantages in raising funds

Reporting Standards

Frameworks Used: TCFD

UN Sustainable Development Goals

• SDG 7 (Affordable and clean energy)
• SDG 8 (Decent work and economic growth)
• SDG 13 (Climate action)

Iberdrola's initiatives contribute to these goals through renewable energy investments, job creation in the green economy, and climate action initiatives.

Sustainable Products & Innovation

• Smart Home products
• Smart Mobility solutions
• Smart Solar solutions
• Smart Clima solutions
• Green hydrogen

Awards & Recognition

• Energy Transition Changemaker award at COP28 for green hydrogen plant in Puertollano.