Iberdrola

Iberdrola has a Net Zero emissions ambition by 2040, covering Scopes 1, 2 and 3. The report states that the trajectory is certified as consistent with the Paris Agreement by the Science Based Targets initiative / SBTi.

Iberdrola’s medium-term climate targets include reducing electricity generation emissions intensity to 32 g CO₂/kWh by 2028, achieving Scope 1 CO₂e neutrality by 2030, and reaching less than 10 g CO₂/kWh electricity generation emissions intensity by 2030.

The report covers Scope 1, Scope 2 and Scope 3. Total Scope 1, 2 and 3 emissions in 2025 were 33.3 MtCO₂e using the location-based method. The report also notes that most Scope 3 categories use primary data, while Category 1 purchased goods and services and Category 7 employee commuting are estimated.

Iberdrola’s transition plan is based on electrification, networks, renewable energy and storage. Externally, Iberdrola states that at the end of Q1 2026 it had 2,516 MW installed offshore capacity, with plans to increase offshore wind capacity by 3.5 GW between 2025 and 2028, supported by €8bn gross investment worldwide over the period.

Iberdrola reports direct emissions intensity of 39 g CO₂/kWh in 2025, down from 250 g/kWh in 2010, representing an 84% reduction. Since 2020, emissions intensity has fallen by 60%.

In 2025, Iberdrola’s total Scope 1, 2 and 3 emissions stood at 33.3 MtCO₂e using the location-based method. The report states that by the end of 2025 the Group had achieved an emissions reduction of more than 54% compared with the comparable 2020 base year, equal to more than 22 million tonnes of cumulative absolute emissions reduction.

Iberdrola provides quantitative EU Taxonomy disclosure. For 2025, taxonomy-aligned CapEx reached 92.9% of total CapEx. The taxonomy table shows turnover: €44,075.6m total, 64.7% eligible, 60.7% aligned; CapEx: €18,702.5m total, 93.8% eligible, 92.9% aligned; and OpEx: €1,911.5m total, 90.4% eligible, 88.7% aligned.

Iberdrola reports water withdrawal and water-stress exposure. Total water withdrawal in 2025 was 1,274,971 ML, of which 794,159 ML was in water-stress areas. The report states that 96% of water withdrawn is returned to the environment, and withdrawals for generation are regulated by government permits setting maximum consumption volumes.

The sustainability report gives limited asset-level OSW capacity detail, but external Iberdrola project pages fill the gap. Baltic Eagle is a 476 MW offshore wind farm in Germany, located 30 km northeast of Rügen, commissioned in October 2024, and designed to supply renewable energy to 475,000 households. Wikinger is a 350 MW operating offshore wind farm in the German Baltic Sea, commissioned at the end of 2017, with 70 turbines, €1.4bn investment, and renewable energy for 350,000 homes. Iberdrola’s offshore wind page also states installed offshore capacity of 2,516 MW at end-Q1 2026.

The report provides OSW-relevant marine ecology evidence. For Baltic Eagle, Iberdrola implemented acoustic mitigation measures during construction to protect sensitive marine mammals such as the harbour porpoise, including double bubble curtains and acoustic dampers. It also reports wildlife monitoring plans at photovoltaic and offshore wind farms.

This is stronger than the sustainability-report-only version. Iberdrola’s external biodiversity page states a clear goal to have a net positive impact on biodiversity by 2030. The Biodiversity Plan applies to the entire Iberdrola Group and is based on identifying, quantifying and monitoring impacts across the life cycle of facilities. It also states that by 2025, 100% of priority installations should have assessed and revised biodiversity action plans, and by 2030, 100% of installations should have revised biodiversity action plans.

The report identifies wind blade recycling as a circular economy issue and references EnergyLOOP. External sources strengthen this significantly: Iberdrola España and FCC opened EnergyLOOP, the first wind turbine blade recycling plant on the Iberian Peninsula, in Cortes, Navarra. The plant is designed to process up to 10,000 tonnes/year, required around €10m investment, and aims to recover glass fibres and resins from blades for reuse in sectors such as energy, aerospace, automotive, textiles, chemicals and construction.

The report mentions low-environmental-impact materials and low-emission steel in the context of internal carbon pricing and decarbonisation decision-making. However, Not clearly disclosed in the reviewed materials. This should remain partially disclosed / limited for Iberdrola unless another project-specific procurement source is added.

Iberdrola provides strong supplier governance evidence. In 2025, €12,777m was allocated to suppliers assessed under its sustainability model, close to 97% of total awarded supplier value. €12,430m was awarded to sustainable suppliers, over 94% of total awarded value. The report also states that 42 audits were conducted on key suppliers, and major suppliers of general goods, equipment and fuel are assessed under environmental and sustainability criteria.

The report is prepared under CSRD / ESRS and includes EU Taxonomy disclosure under Article 8. KPMG Auditores performed a limited assurance review of the consolidated non-financial information statement and sustainability reporting. The assurance report states that nothing came to attention indicating that the report was not prepared in accordance with ESRS, CSRD-related sustainability reporting requirements and EU Taxonomy Article 8 disclosure requirements.