Ethics and compliance

Committed to the highest ethical standards

At Iberdrola we are permanently working to be at the forefront of international best practices in ethics and compliance.

Iberdrola Group has a compliance system in place to ensure that we act in accordance with the ethical principles and fundamental principles of governance and sustainability of the Iberdrola Group, the law, and our internal regulations − especially the Governance and Sustainability System. This system helps to fully comply with the Group’s Purpose and Values and to protect the corporate interest, as well as to prevent, manage, and reduce the risk of breaches committed by managers, professionals, or suppliers within the organisation.

“Any expansion in Iberdrola’s business activity must translate, in addition to quality service for our customers, into the creation of well-being, wealth and employment for millions of people in all locations where we do business.”

Ignacio S. Galán

Iberdrola’s Executive Chairman

The Code of Conduct for Directors, Professionals and Suppliers and other compliance regulations

The Code of Conduct for Directors, Professionals and Suppliers [PDF] develops Iberdrola Group’s Purpose and Values. Its main objective is to serve as a guide for the actions of its professionals, suppliers and directors in a global, complex and changing environment.

This code reflects Iberdrola’s commitment to the business ethics and transparency in all areas of activity. This code is intended to ensure the ethical and responsible conduct of all professionals and suppliers of Iberdrola’s companies − regardless of their hierarchical level, their geographic or functional location − and the company to which they provide their services or with which they have a contractual relationship.

The Group companies’ compliance system is based on certain rules approved by the Board of Directors, which are part of the Governance and Sustainability System, including the Ethical and Basic Principles of Governance and Sustainability of the Iberdrola Group [PDF], the Code of Conduct for Directors, Professionals and Suppliers [PDF], Anti-Corruption and Anti-Fraud Policy, the Compliance Policy and the Internal Reporting and Whistleblower Protection System [PDF]. Furthermore, the compliance units of each company of the Group develops and approves complementary and more specific regulations to proactively and autonomously ensure the implementation and effectiveness of the Compliance System of each Group company.

Compliance System

In order to proactively and autonomously monitor the application and effectiveness of the Compliance System of each company of the Group, compliance units have been set up as internal and permanent collegiate bodies. These units are set up in accordance with the highest standards of independence and transparency and are linked to the boards of directors. The composition, powers and operation of the unit are regulated in the Regulations of the Compliance Unit [PDF].

The functions of the compliance units include fostering an ethical culture and “zero tolerance” towards illicit acts or acts contrary to the law or to the System of Governance and Sustainability. They also monitor the application and effectiveness of the Compliance Systems of their companies in a proactive and autonomous manner, without prejudging the appropriate coordination carried out at the Group level.

Internal information system. Whistle-blower channel

Iberdrola has implemented an internal reporting system in accordance with the provisions of applicable law and based on the principles settled in the Compliance Policy and in the Internal Reporting and Whistleblower Protection System.

The management of the internal complaint channels of each company of the Group corresponds to their respective compliance units.

These reporting channels are configured as tools made available to all shareholders, administrators, professionals, suppliers and other third parties to report conduct that may involve the commission of some irregularity or any illegal act or act contrary to the law or the Governance and Sustainability System with significance in the scope of the Company, in its contractual relationship with its suppliers or in the interests and image of the companies of the Iberdrola Group.

All communications received through these channels are considered confidential information and may, in the case of complaints, be anonymous. In all cases, all companies of the Group are firmly committed to the prohibition of any form of retaliation against those who make use of the above-mentioned reporting channels, except in cases of bad faith.

Supply Chain

One of the key elements of the Compliance System of the Group’s companies is the dissemination of our ethical culture to the third parties with whom they interact. To this end, Iberdrola requires that the members of its supply chain assume certain obligations and specific guidelines for action (Suppliers’ Code of Conduct) and carry out due diligence of all its suppliers. We also develop communication and awareness-raising initiatives to promote compliance systems and supply chain’s sustainability.

Inside information

One of the functions of the Compliance Unit is to ensure compliance with the Internal Regulations for Conduct in the Securities Markets. These regulations seek to ensure the equal treatment of all investors and the protection thereof against the improper use of inside information or other conduct constituting market abuse and establishes the internal rules for the management, control and transparent communication of Inside Information. It applies to the members of the Board of Directors and senior management of the company, as well as to other individuals who have regular or temporary access to Inside Information and to the managers of Iberdrola’s Treasury Share.

Transparency report

Iberdrola approves and publishes an annual report that collects the main actions, initiatives, and measures carried out, promoted, and adopted by the compliance units of each company of the Group. They showcase how the Compliance System operates in the Group’s companies and demonstrate its effectiveness.