Climate Policy Engagement Analysis
Climate Policy Engagement Overview: Iberdrola exhibits strategic climate policy engagement that is supportive of science-aligned climate policy. The company is supportive of ambitious climate-related regulation in the EU and globally and actively advocates for greater ambition across a range of EU and Australian climate policies. However, its US-based subsidiary Avangrid is less supportive of measures to transition the energy mix.
Top-line Messaging on Climate Policy: Iberdrola strongly supports climate action and the need for regulation to respond to climate change in its top-line communications. Iberdrola supported greenhouse gas (GHG) emissions reductions in line with the 1.5°C target in an October 2024 joint letter. The company also supported the target of climate neutrality by 2050 in its Integrated Report, published in March 2025. Furthermore, Iberdrola advocated for the European Green Deal to be prioritized in the EU's Strategic Agenda in a June 2024 joint statement. In an October 2024 joint letter, Iberdrola also supported more ambitious Nationally Determined Contributions (NDCs) ahead of COP29.
Engagement with Climate-Related Regulations: Iberdrola engages positively with climate-related policies in the EU, US and Australia. The company supported emissions trading, energy efficiency, renewable energy, and GHG emissions reduction policies in 2023-2025.
In the EU, Iberdrola supported an EU 2040 GHG emissions reductions target of 90 to 95% compared to 1990 levels, in line with recommendations by the European climate advisory board in a May 2025 joint letter. In regard to emissions legislation, Iberdrola strongly supported the EU's 2035 100% CO2 emissions reduction standard for light duty vehicles and advocated against a 2026 review of the target; it stated that the target is feasible, necessary, and provides investment certainty in a September 2024 joint letter.
In Australia, Iberdrola supported expanding the Safeguard Mechanism, the Australian Government's policy for reducing emissions at Australia's largest industrial facilities, in a July 2024 consultation response. The company also supported the Australian Government's Hydrogen Production Tax Incentive, including the proposed eligibility criteria, the exclusion of non-renewable hydrogen and the requirement for grid-connected electrolyzer project's production to be from the same grid in July 2024 comments.
In the U.S, Iberdrola’s subsidiary Avangrid supported the Connecticut House Bill 5438 regarding energy efficiency funding, although with some concerns on the spacing of the budgets in March 2024 testimony. The company also strongly supported the Department of Energy's proposal to raise the ambition of energy conservation standards for residential electric and gas water heaters in September 2023 joint comments. Avangrid’s CEO also advocated for government support for offshore wind, including at the federal level and in Massachusetts, in a January 2024 press release.
Positioning on Energy Transition: Iberdrola strongly supports measures to transition the energy mix away from fossil fuels, however its US-based subsidiary Avangrid appears to take less supportive positions. In a June 2024 joint statement, the company broadly supported the need to phase-out fossil fuels, and in a June 2025 press release, Iberdrola Chairman Ignacio Galán stressed that “electrification is the fundamental pillar to guarantee strategic autonomy, industrial competitiveness and environmental sustainability.” Iberdrola strongly supported the urgent decarbonization of the power sector in February 2024 comments submitted on the Australian 2024 Integrated System Plan. Iberdrola also described mandatory zero-emissions targets for corporate fleets as 'effective' in a July 2024 consultation response, accessed via FOI.
Iberdrola’s US subsidiary Avangrid supported the phase out of fossil fuels in favor of renewables in a January 2024 press release. However, the company’s CEO Pedro Azagra appeared to advocate for policies to facilitate fossil gas infrastructure expansion in Massachusetts in a June 2025 interview with Axios. Avangrid has also advocated similar positions in the past including, advocating for Massachusetts policymakers to design a flexible Clean Heat Standard that includes a long-term role for "gas-fired components" and "clean heat fuels", without clearly defining these fuels, in May 2023 joint comments.
Industry Association Governance: Iberdrola disclosed a partial list of its industry associations memberships in its July 2024 industry association assessment document, excluding its memberships to Confederation of British Industry (CBI) and the Consumer Energy Alliance. Iberdrola’s Director of Climate Change is Chairman of the Corporate Leaders Group, and senior executives sit on the board of SolarPower Europe and WindEurope, which are actively and positively engaged with EU climate policy. However, the company is also a member of Edison Electric Institute and the Spanish Confederation of Business Organizations, trade groups that advocate positively on some areas, but negatively on others. It is also a member of the American Gas Association, which is actively and 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 Q3 2025.
A detailed assessment of the company's corporate review on climate policy engagement can be found on InfluenceMap's CA100+ Investor Hub here.