Case study: How Iberdrola creates economic value for its stakeholders
With over 170 years of history, Iberdrola is a global energy leader, the number one producer of wind power, and one of the world’s biggest electricity utilities in terms of market capitalisation. Iberdrola is committed to developing a responsible and sustainable business model, which believes in keeping stakeholders involved and bringing them shared added value.
This case study is based on the 2020 Sustainability Report by Iberdrola, prepared in accordance with the GRI Standards, that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.
Abstract
Generating and distributing sustainable economic value among its stakeholders, as a trusted partner, is a key priority for Iberdrola. Tweet This! In order to create economic value for its stakeholders Iberdrola took action to:
- create economic value for employees
- create economic value for providers of capital
- create economic value for government administrations
- create economic value for communities
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With this case study you will see:
- Which are the most important impacts (material issues) Iberdrola has identified;
- How Iberdrola proceeded with stakeholder engagement, and
- What actions were taken by Iberdrola to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2020 Sustainability Report Iberdrola identified a range of material issues, such as occupational health and safety, climate change, diversity and equal opportunity, connectivity, digitisation and cybersecurity. Among these, creating economic value for its stakeholders stands out as a key material issue for Iberdrola.
Stakeholder engagement in accordance with the GRI Standards
The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:
Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.
Key stakeholder groups Iberdrola engages with:
To identify and prioritise material topics Iberdrola engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement (in 2020) |
| Workforce
| · Telephone, email, website (intranet) and meetings, interviews and roadshows via audio/video-conference · Online events, surveys, bulletins, newsletter, information screens, posters · Commissions, committees · Volunteer Channel and Unique Employment Channel · Ethics mailbox |
| Shareholders and financial community
| · Telephone, post, email inbox, shareholders’ website, meetings and exclusive OLS channel · Online General Shareholders’ Meeting, Shareholders’ Club, Shareholders’ Bulletin · Meetings and roadshows via audio/video-conference · Investor Day, Investor Relations App, corporate reports · Shareholders’ Ethics Mailbox |
| Distribution customers
| · Telephone, email, corporate website, digital channels (customer website, app), meetings onsite and by audio/video-conference · Satisfaction surveys · Complaint systems · Communication and dissemination campaigns · Social media, mobile (apps, chat, etc.) |
| Retail customers
| · Telephone, mail, email, customers website, meetings, virtual events and forums, satisfaction surveys · Customer service desks, pop-ups · Social media, mobile (apps, chat, etc.) |
| Regulatory entities
| · Telephone, email, letters, corporate website · Meetings, workshops, events, debates via audio/ video-conference · Queries, procedures, information capsules |
| Suppliers
| · New platform for supplier registration and classification, Satisfaction Survey, stimulus campaigns · Bidding software systems and Supplier Service Centre · Telephone, email, suppliers’ website, meetings via audio/video-conference · Suppliers’ ethics mailboxes · Annual reports |
| Media
| · Telephone, email, corporate website, meetings via audio/video-conference · Press releases · Events via audio/video-conference · Social media |
| Society in general
| · Telephone, email, corporate website, meetings via audio/video-conference · Partnership agreements · Reports, events, working groups via audio/videoconference · Social media, digital media and blogs · Priority service channels · Network of Institutional Delegations in the autonomous communities |
| Environment
| · Telephone, audio-conferences, email, corporate website, meetings via audio/video-conference, reports · Sustainability surveys · Alliances, inspections, audits · Partnerships, events, conferences and roadshows via audio/video-conference |
What actions were taken by Iberdrola to create economic value for its stakeholders?
In its 2020 Sustainability Report Iberdrola reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2020, Iberdrola spent € 2,505 million for employee remuneration (excluding company social security costs).
- Creating economic value for providers of capital
- In 2020, Iberdrola spent € 2,958 million in payments to providers of capital (financial expenses and dividend payments to shareholders and minority interest).
- Creating economic value for government administrations
- In 2020, Iberdrola spent € 2,939 million in payments to government administrations (own tax contribution).
- Creating economic value for communities
- In 2020, Iberdrola spent € 84 million in community investments (verified according to the LBG Model).
Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?
The GRI Standard addressed in this case is: Disclosure 201-1 Direct economic value generated and distributed
Disclosure 201-1 Direct economic value generated and distributed corresponds to:
- Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth
- Targets: 8.1, 8.2
- Sustainable Development Goal (SDG) 9: Industry, Innovation and Infrastructure
- Targets: 9.1, 9.4, 9.5
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References:
This case study is based on published information by Iberdrola, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:
https://www.iberdrola.com/documents/20125/40534/IB_Sustainability_Report.pdf
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