Climate Lobbying Overview: Iberdrola is supportive of ambitious action on climate change, and has engaged positively on climate-related regulation in the EU and globally. In particular, the company has actively lobbied for greater ambition across a range of EU-level climate policies covering energy, transport, and industrial sectors.

Top-line Messaging on Climate Policy: Iberdrola strongly supports climate action in its top-line messaging. Iberdrola has consistently supported a 2050 climate neutrality target for the EU, including in a February 2022 EU consultation response where Iberdrola described the ‘Fit for 55 Package’ as a “unique opportunity to set a proper regulatory framework” to meet EU climate targets. In an October 2021 joint letter, the company supported more ambitious Nationally Determined Contributions at COP26, and stronger ambition for global carbon markets under Article 6 of the UN Paris Agreement.

Engagement with Climate-Related Regulations: Iberdrola has actively and positively lobbied on numerous strands of climate policy to promote ambitious climate action. In a November 2021 EU public consultation response, Iberdrola appeared to support the EU’s carbon border adjustment mechanism (CBAM) with some exceptions, as it advocated for a gradual phase out of existing carbon leakage protections without providing a specified timeframe, and supported some form of export rebates. In another consultation response submitted in November 2021, Iberdrola supported ambitious reforms to the EU Emissions Trading System (EU ETS), advocating for a higher emission reduction target of 61% by 2030, increasing the Linear Reduction Factor, strengthening the Market Stability Reserve, and expanding sector coverage. Iberdrola’s US subsidiary Avangrid has been supportive of US state-level emissions trading, specifically in March 2021 it supported Connecticut’s Transportation and Climate Initiative Program in its testimony on Senate Bill 884.

Iberdrola supported several Fit for 55 policies in public consultation responses submitted to the EU in November 2021. It strongly supported the increased ambition in the reform of the EU Energy Efficiency Directive, and advocated in favor of a renewable energy target of at least 40% by 2030, while also supporting the introduction of targets for renewable hydrogen. In a July 2022 letter to the EU Commission, the company advocated for stringent criteria for renewable hydrogen production within an ambitious Renewable Energy Directive Delegated Act, including the “additionality” principle. The company has consistently supported an increased 55% 2030 EU GHG target, for example, in a July 2021 joint letter signed by the CEO Ignacio Galán. In a May 2022 EU public consultation response, Iberdrola supported a 2035 zero-emissions CO2 target for cars and vans in the EU. In March 2023, Iberdrola signed a joint letter advocating for EU states to adopt a stringent EU zero-emissions 2035 CO2 target for cars and vans without an e-fuels loophole.

Positioning on Energy Transition: Iberdrola has strongly supported measures to transition the energy mix, and has advocated for an expansion of renewables to diversify the EU energy mix and reduce fossil gas consumption. In April 2022 feedback to the EU Commission on the EU Hydrogen and Gas Decarbonisation Market Package, Iberdrola advocated for fossil gas-based hydrogen to be excluded from the definition of low-carbon hydrogen even if combined with carbon capture technologies. In several joint letters in 2021-22, Iberdrola stated support for the development of solar PV and wind technologies to transition the energy mix, while supporting a phase out of fossil fuels subsidies. CEO Ignacio Galán also signed a joint letter in May 2022 that stated that “we should not build costly fossil fuel infrastructure that we will then have to phase out” and that “the time is right for a shift at scale away from gas boilers.”

In a November 2021 legislative consultation response, the company advocated for the reform of the EU’s Energy Taxation Directive to align with the EU’s other climate objectives, calling the taxation transition period for fossil fuels excessive and unjustifiable, while it advocated for renewable hydrogen to be differentiated from other low-carbon technologies. Iberdrola’s US subsidiary Avangrid specifically advocated support for Connecticut Senate Bill 882 requiring the state to decarbonize the electricity supply by 2040 in its March 2021 testimony. However, in a March 2020 testimony, the company opposed Connecticut House Bill 5350 which limited the expansion of fossil gas infrastructure in the state.

Industry Association Governance: In its 2022 Sustainability Report and corporate website, Iberdrola disclosed a review of its industry association memberships, but fell short of investor expectations. A detailed assessment of the company's industry association review can be found on our CA100+ platform here. Iberdrola’s Director of Climate Change is Vice-Chairman of Corporate Leaders Group Europe, and senior executives are on the board of SolarPower Europe and WindEurope, which are positively engaged with EU climate policy. However, the company is also a member of Edison Electric Institute and the Spanish Confederation of Business Organizations (CEOE), trade groups with more mixed engagement on climate policy. It is also a member of the American Gas Association, which is negatively engaged on climate policy.

InfluenceMap collects and assesses evidence of corporate climate policy engagement on a weekly basis, depending on the availability of information from each specific data source (for more information see our methodology). While this analysis flows through to the company’s scores each week, the summary above is updated periodically. This summary was last updated in Q1 2023.

Additional Note: Iberdrola's climate policy engagement in the United States is captured under a separate profile for its US-based subsidiary, Avangrid. The evidence assessed under Avangrid's profile contributes directly to Iberdrola's score under each query, and ultimately to its organization score.