Iberdrola United States repeats in the FTSE4Good index for the sixth consecutive year
The market once again recognises the strong environmental, social and corporate governance (ESG) criteria of Avangrid, Iberdrola's US subsidiary. This is the sixth year that the NYSE-listed company has been chosen to join the FTSE4Good index. The index is designed to measure the performance of companies that demonstrate strong ESG practices. Avangrid is ranked ahead of its utility peers that are assessed by the index's creator, FTSE Russell.
The FTSE4Good indices are used by a wide range of market participants to create and rate responsible investment funds and other financial products. The assessments of FTSE Russell, the index creator, are based on performance in areas such as corporate governance, health, safety, anti-corruption and climate change. As such, companies included in the FTSE4Good index series meet a range of environmental, social and governance criteria.
"Our work is based on a commitment to take action to tackle climate change, focus on our communities, employees and customers and hold ourselves to the highest ethical standards," says Pedro Azagra, CEO of Avangrid. "For more than two decades, the Iberdrola group has been leading the transition to clean energy and, as a member of the group, Avangrid is key to some of Iberdrola's most important climate goals, such as carbon neutrality. We are proud to score significantly higher than our US and global peers on climate change action. This shows that we are making progress in building a clean energy future for all," he adds.
In its most recent assessment, Avangrid ranked in the top quartile against its peers in the FTSE Russell's Utilities index sub-sector in the ESG rating and scored highest for climate change and governance commitments and actions, which includes assessment of risk management, corporate governance and climate action. In addition, compared to its US peers, Avangrid scored 40% higher overall and 90% higher in environmental areas such as climate change and pollution.
Avangrid's climate action strategy follows that of the Iberdrola group, which has been leading the transition to clean energy and the fight against climate change for more than two decades, while offering a sustainable and competitive business model that creates value for society. Avangrid's commitments include the goal of achieving carbon neutrality for Scope 1 and 2 emissions by 2030, which is aligned with Iberdrola's emissions targets.
In addition to being included in the FTSE4Good index series, Avangrid has won numerous accolades this year for its ESG efforts, including being named one of the world's most sustainable companies by S&P Global for the third consecutive time, being recognised by JUST Capital as one of the best companies in the United States, and being named one of the world's most ethical companies by Ethisphere for the fifth year in a row.