Iberdrola's attendance at the Climate Summit responds to the company's global leadership in the energy transition, a path on which it is aligned with the United Nations. The Chairman of Iberdrola, Ignacio Galán, today attended the Climate Ambition Summit as a leader and one of the prime movers in this area.
Iberdrola, which has been at the forefront of the energy transition for 20 years, is one of the first companies to present the plan, following António Guterres' call last year for business leaders to step forward.
Iberdrola's plan meets the criteria set by the UN High Level Panel of Experts on Net Zero Emissions Commitments.
Galán has urged companies to respond to the UN's call to create and submit Transition Plans as global temperatures continue to rise.
Ignacio Galán, Chairman of Iberdrola, said: "The successful transition to a cleaner energy model requires ambition and commitment from companies around the world. However, despite significant progress, there is still a gap between words and action. We are proud to be among the companies leading on climate action, but it is vital that more companies create and present robust transition plans. We are one year on from the last call for action, and time is already running out for us in the fight against the climate crisis".
The Climate Transition Plan sets out the actions and mechanisms that Iberdrola will implement to achieve its environmental goals and ensure that its business contributes to the decarbonisation of the economy as a whole.
The actions set forth in the roadmap include:
- Establishment of targets to achieve carbon neutrality in scopes 1 and 2 by 2030 and net zero emissions by 2040 for all scopes, including 3.
- Short- and long-term company emissions reduction targets based on science and consistent with the 1.5°C target of the Paris Agreement.
- Commitment to invest directly in projects with a high impact on sustainability, seeking synergies with biodiversity targets. Iberdrola has committed to the Biodiversity Plan 2030, which includes targets to ensure that business activity generates no net deforestation by 2025 and has a positive net impact on biodiversity by 2030
- Decarbonisation strategy focused on reducing emissions, working towards a fully renewables-based electricity system as the backbone of a decarbonised energy system.
The Climate Transition Plan is backed by the investment plan (2023-2025) that commits EUR 47 billion until 2025 to promote the energy transition, with more than EUR 27 billion allocated to grids and investments and EUR 17 billion in renewables to reach 52,000 MW of renewable installed capacity by the end of the period (up from ~40,000 MW in 2022), while increasing storage capacity to over 100 GWh.
Iberdrola has undergone a profound transformation over the last two decades, anticipating the energy transition by 20 years to meet the challenges of climate change and the need for a clean, reliable and smart business model:
- It has established itself as a world leader in renewable energy.
- Closed all of its global coal and fuel oil capacity, comprising 17 plants and around 8,500 MW between 2001-2020.
- It has invested 150 billion euros in energy transition since 2001, expanding its operations to the USA, UK, Germany, France, Brazil, Mexico and Australia.
- It is committed to a Biodiversity 2030 Plan that includes targets to ensure that business activity generates no net deforestation by 2025 and has a net positive impact on biodiversity by 2030.
Its commitment to the fight against climate change has led Iberdrola to increase its assets sevenfold, to 160 billion euros, and to become the largest European electricity company and one of the three largest in the world in terms of market capitalisation.
"Companies can - and must - use their levers and strengths to step up and play a more central climate leadership role. Establishing a clear roadmap, which companies can verify, is vital for business efforts to reduce emissions," said Ignacio Galán.
Ignacio Galán joins the Board of Generation Unlimited, a UNICEF organisation
Ignacio Galán has also joined the Global Leaders Council of UNICEF's Generation Unlimited organisation. Launched by the United Nations Secretary-General at the 2018 General Assembly and led by UNICEF, Generation Unlimited is a global public-private-youth partnership that seeks to connect millions of young people to opportunities for training, empowerment, employment and social entrepreneurship.
At a meeting in New York on the sidelines of the UN General Assembly, discussions focused on how to help prepare the next generation for a green and digital future. Agenda items included how the rise of Artificial Intelligence and the green transition are shaping the future of work.
The Global Leaders Council is co-chaired by Catherine M. Russell, Executive Director of the United Nations Children's Fund (UNICEF) and Bob Moritz, Chairman of PwC. The council is composed of a diverse mix of business leaders, NGO and charity representatives, and government officials.
Ignacio Galán, chairman of Iberdrola, said: "We are in the midst of a green revolution, which is accelerating every day. Renewable energy is good for the planet and the investment behind it offers huge opportunities for employment and skills development. We need people from all countries and backgrounds to deliver the clean energy of the future. For vulnerable young people, accessing these opportunities can be a challenge. It is the work of UNICEF and all Generation Unlimited partners to help break down these barriers. I am honoured to join the Global Leaders Council and to be part of a programme that will help so many people.
As part of Generation Unlimited, Iberdrola specifically supports a programme in Brazil called 1 Million Opportunities (1MiO), which is designed to help vulnerable young people in the country's labour market by improving their skills, job opportunities and green employment. The company also supports the UPSHIFT innovation programme led by UNICEF in Somalia, which seeks to train young victims of violence and at risk of exclusion in innovation and social entrepreneurship.
Iberdrola has a broader partnership with UNICEF, which includes the provision of digital content and learning materials on climate change and sustainability to 'Learning Passport', UNICEF's global learning platform. This tool enables continuous access to quality education for children and young people around the world.
In Spain, Iberdrola is also supporting 'Generation Unlimited Spain', a new multi-stakeholder partnership, also designed to support vulnerable young people. Iberdrola is helping to design training courses that give young people the skills they need to play a role in the energy transition.