Company Profile: IberdrolaWe Mean Business coalition
Iberdrola is a world leading power utility with net revenues of over $39 billion in 2018, focusing on renewable energy, smart grids, storage, and electric mobility.
Headquartered in Spain, the company operates in more than 30 countries, with a workforce of more than 30,000 people and supplies power for 100 million people.
- Iberdrola has an approved science-based target to reduce absolute scope 1, 2 and 3 greenhouse gas (GHG) emissions 20% by 2030 from a 2017 base year.
- Iberdrola is committed to being carbon neutral by 2050.
- Iberdrola is committed to reducing the intensity of its CO2 emissions to below 150 grams per kWh by 2030 (50% less than 2007).
- Iberdrola reached 42% of total electricity production with renewable energy in 2018. The company is committed to increasing renewable capacity by 9% between 2018 and 2019, with an additional 2,600 MW brought online.
- Iberdrola is also committed to responsible corporate engagement in climate policy, to implement the recommendations of the Task Force on Climate-related Financial Disclosures and is a member of the Low Carbon Technology Partnerships initiative (LCPTi).
- Iberdrola has committed to bringing electricity to 16 million people by 2030 who today lack access to this energy source.
- Direct (Scope 1) CO2 emissions from production facilities fell 5% to 24.6 Mt in 2018, from 26 Mt in 2017.
- Indirect (Scope 2) CO2 emissions fell 38% to 2.48 Mt in 2018, from 3.42 Mt in 2017.
- Value chain (Scope 3) CO2 emissions fell 13% to 21.4 Mt in 2018, from 24.5 Mt in 2017.
- From its renewable energy installations, Iberdrola estimates annual CO2e savings of more than 16 million metric tonnes CO2e.
- In 2018, Iberdrola achieved a 21% decrease in specific Nitrogen Oxide emissions, a 34.8% decrease of specific Sulfur Dioxide emissions and a 30.3% decrease in specific particle emissions compared to 2017 figures.
- More than two thirds of Iberdrola’s installed capacity is emission free (68%).
- At year-end 2018, Iberdrola had 47,448 MW of installed capacity, 61.5% of the total corresponding to renewable technologies.
- Between 2018 and 2022, Iberdrola is committed to investing €13,300 million in renewables, expecting to install 9.9 GW in this period. This is spread across: Spain and Portugal 31%; USA 27%; United Kingdom 19%; Mexico 6% and Brazil 5%.
- Iberdrola’s ScottishPower has become the first integrated energy company in the UK to generate 100% renewable energy.
- Iberdrola has decided to complete the process of phasing out all its coal-fired power generation capacity worldwide. That technology represented less than 2% of the group’s total installed capacity.
- Iberdrola has closed fifteen coal and fuel oil plants since 2001 all over the world, totalling approximately 7,500 MW.
- Their decarbonization strategy of “always working with local authorities to guarantee jobs and minimize impact on supply chain and local economy” has led to renewable energy sources with a capacity of more than 29,500 MW being installed.
- Iberdrola has a Sustainable Mobility Plan to reduce emissions, promote energy efficiency, improve the quality of life of the people living in the areas where the group operates and raise awareness among employees.
- Iberdrola Smart Mobility Plan envisages the deployment of 25,000 electric vehicle charging points in Spain by 2021. The company has already begun the deployment of the largest network of fast charging stations for electric vehicles on Spain’s main motorways and corridors. The electricity supplied at these recharging points will be 100% green.
- Iberdrola was the first Spanish company to launch a shared electric car service among its employees to handle commercial activities in Madrid, Bilbao, Seville, Valencia, Valladolid and Barcelona. Iberdrola also plans to replace 40% of its fleet, with electric vehicles (EVs).
- Iberdrola has already launched a financial support program for employees to help them purchase 100% EVs and grants for installing charging stations.
Decoupling growth from emissions
- The target of contributing to the achievement of UN Agenda 2030 Sustainable Development Goal 13 (SDG13: – Emissions Reductions) is included in the bonus criteria for the whole Board of Directors.
- During 2018, Iberdrola’s renewables business saw its earnings before interest, tax, depreciation and amortization (EBITDA) increase 39% year on year, to €2,445 million.
- The group expects to improve its results to between €3,700 and €3,900 million of net profit by 2022, a 30% increase over the 2018 results.
- Iberdrola is the world’s largest corporate issuer of green bonds; in only three years it issued about €10 billion in green bonds and has recently closed the world’s largest operation of credit lines reconfigured subject to sustainability criteria, in the amount of €5,300 million.
- In March 2019, Iberdrola signed a new sustainable credit deal for €1.5 billion linked to the UN Agenda 2030 SDGs.
- The East Anglia One offshore wind farm in the UK required the largest alternating current (AC) offshore substation ever built.
- In the context of the global climate agenda, Iberdrola has been supporting the United Nations Framework Convention on Climate Change (UNFCCC) negotiation process in order to achieve greater urgency and ambition in the fight against climate change. Iberdrola has been an official sponsor of their annual conference in 2017 and 2018, (COP23 and COP24) being fully engaged through awareness and policy engagement activities both in side events and press conferences.
- Beyond UNFCCC process, Iberdrola is fully engaged with an ambitious approach in the global climate agenda through intense participation in the main global alliances and organizations: United Nations Global Compact (patronage of climate action platform “Pathways to Low-Carbon and Resilient Development”); World Business Council for Sustainable Development; Corporate Leaders Group; Powering Past Coal Alliance; Carbon Pricing Leadership Coalition and European Climate Foundation.
- Iberdrola has been one of the leading companies that publicly endorses a long-term decarbonisation strategy to achieve climate neutrality by 2050, by showing the opportunities arisen from a climate neutral transition.
- Iberdrola supports a net-zero emissions goal for the European Union (EU) by 2050. In collaboration with the European Climate Foundation they have organized an event at the EU Sustainable Energy Week in June 2019 to support an ambitious approach towards achieving a net-zero Europe by 2050. Representatives from the European Commission, Transport and Environment and Cambridge University provided their insights on the opportunities that this approach would involve for the EU economy.
- Iberdrola signed in March 2017 with the Alliance of CEO Climate Leaders convened by the World Economic Forum, expressing strong support for the recommendations of the industry-led Task Force on Climate-related Financial Disclosures (TCFD), convened by the Financial Stability Board.
- In November 2012 Iberdrola signed the Carbon Price Communiqué, issued to governments by the leaders of more than 200 companies worldwide with a view to the Doha Summit. The Communiqué calls for: “A strong carbon price signal based on the “polluter pays principle” and faced by the whole economy should be the main tool for driving cost-effective decarbonisation and low carbon investment.”
- Thanks to the significant degree of alignment between Iberdrola’s strategy and the objectives of the Paris Agreement, Iberdrola was one of the six companies selected by the United Nations to participate in the Talanoa Dialogue sessions in 2018 and one of the first 28 companies to commit to set a 1.5oC climate target aligned with a net-zero future ahead of the UN Climate Action Summit in September 2019.
- For the fourth consecutive year, Iberdrola organized a cycling expedition dubbed “Moving for Climate NOW”. A group of COP24 participants cycled over 600 kilometers from Vienna to Katowice under below-zero temperatures to raise awareness of low-carbon transportation alternatives. This initiative will also be organized for COP25.
- Iberdrola sponsor the “Rey Jaime I” Award for the Protection of the Environment.
- Iberdrola were selected in all the editions of the Dow Jones Sustainability Index.
- Iberdrola were selected among the 100 most sustainable companies in the world as part of the Global 100 2019.
- Iberdrola has an agreement with Volvo to boost electrification of public transport in urban areas.
- Iberdrola has developed an intense activity in the field of clean energy power supply. Especially remarkable is their agreement with Nike that includes their third clean energy power purchase agreement (PPA) in three years. This helps Nike to source 100% renewable energy across their owned or operated facilities in North America and Europe by 2020.