Global energy and electricity provider Iberdrola announced today plans to directly involve its Board of Directors in the company’s climate initiatives, in an innovative move designed to strengthen climate governanceGovernance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights. More at the company.
At the company’s upcoming General Shareholders Meeting on June 18, Iberdrola will consult with shareholders on its climate strategy, aligning the company with an emerging movement among energy and other companies’ initiatives to include shareholders in corporate sustainability plans with votes at AGMs.
Iberdrola’s shareholders will also be asked to approve making the members of the Board of Directors responsible for approving and producing regular reports on a climate action plan, aiming to get the board directly involved in the company’s fight against climate change, and aligned with its commitment to achieving zero net emissions by 2050 or sooner.
Iberdrola has committed to play a leading role in the fight against climate change. The Climate Action Policy to be brought to shareholders aims to establish a framework for organising the Iberdrola’s strategy and business model in a manner consistent with this pledge, and the company has introduced a six-point action plan* to achieve its commitment.
The new plan comes as Iberdrola has recently embarked on a major investment initiative aiming to significantly grow its renewable energy base. In November, the company launched a €75 billion investment plan for the 2020-2025 period, including massive investments over the next five years in renewable energy, with the company anticipating nearly doubling its renewables capacity by 2025.
The company has also championed the use of sustainable finance tools as a major source of funding for its decarbonization plans. In April, Iberdrola established a target for green and sustainable finance products to account for 63% its debt by 2025, with 100% of its credit lines and 70% of its hybrid bonds meeting these characteristics in 2021.
*Iberdrola’s six point climate action plan:
Contribute to the mitigation of climate change and the decarbonisation of the energy model;Support international negotiations and significant participation by the private sector;Maintain global leadership in renewable energies, smart grids and efficient technologies;Integrate climate change in internal decision-making processes, as well as in long-term risk analysis and management for the Group;Foster a culture of energy efficiency and responsible use of energy;Promote training and climate awareness among stakeholders and the adoption by suppliers of suitable policies.
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