Sustainability 
Report
/
2014

Sustainability Report 2014   /
Sustainability 
Report 
/ 2014

/   Sustainability Report 2014

Sustainability Report 2014   /
External evaluations
of the Iberdrola Group
Indices and studies
Iberdrola’s ranking
Total score: 86 points.
First utility with nuclear assets to be selected on the index.
Carbon Disclosure Leadership Index (CDLI)
Score: 99 points.
Carbon Performance Leadership Index A.
Participant company.
Leading Spanish utility.
Selected company.
Sustainability Yearbook 2014: “Silver Class” in the electricity sector.
Honourable Mention in Environment and Sustainability.
Leading most sustainable Spanish utility and third worldwide.
Leading company in Spain in the utilities sector: electricity, gas, and water.
Classified as Prime.
Leading company on the Ibex 35 in Transparency ranking 2014.

/   Sustainability Report 2014

Sustainability Report 2014   /
Table of Contents
Presentation	
7	
Part I. Standard disclosures 
9 
1.- Strategy and analysis__11
2.- Organisational profile__20
3.- Material aspects and boundaries__41 
4.- Stakeholder engagement__53
5.- Report profile__60
6.- Governance__62
7.- Ethics and integrity__79ii
Part II. Specifics standard disclosures 83
General management approach__86 
A.- Economic dimension__89
B.- Environmental dimension__113 
C.- Social dimension__163
C1.- Labour practices and decent work__164 
C2.- Human rights__189
C3.- Society__198
C4.- Product responsibility__228
Annexes  245
Annex 1:  
GRI Content Index__247
Annex 2: 
Content Index in relation to the Principles of the Global Compact__255 
Annex 3: 
Green Bond Returns Report __256
External Independent Assurance Report for the Green Bond__260 
Annex 4:  
External Independent Assurance Report__262

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Presentation   /   7
Sustainability Report 2014     /
Sustainability Report 2014     /
Presentation   /   7
As has become customary every year, Iberdrola hereby presents its Sustainability Report, in this case 
for financial year 2014, which was approved by its Board of Directors at its meeting of 17 February 2015, 
after a report from the Corporate Social Responsibility Committee of the Board of Directors. 
This report has been prepared in accordance with the recommendations of the Sustainability Reporting 
Guidelines as well as the Electric Utilities Sector Supplement, both of the Global Reporting Initiative 
(GRI Guidelines), version G4. Iberdrola publishes this report in order to give its stakeholders a true 
and accurate view of its performance during financial year 2014, in compliance with the commitments 
assumed in the Company’s General Corporate Social Responsibility Policy.
Readers of this Sustainability Report 2014 may also view the Annual Corporate Governance Report 2014, 
the Annual Financial Report 2014, and the Information Supplementary to the Sustainability Report 2014, 
as well as the Integrated Report for February 2015, all of which are accessible at www.iberdrola.com, 
and which contain additional useful information for a complete understanding of Iberdrola’s activities 
during the financial year and of its future prospects.
Note: The figures included in this translation follow the customary English convention, with figures in thousands separated by a 
comma (,) and decimals indicated by a full stop (.).
Presentation

/   Sustainability Report 2014
8   /   Part i. General Standard Disclosures

Sustainability Report 2014     /
Sustainability Report 2014  /
Part i. General standard disclosures   /   9
Part i. 
General 
standard 
disclosures

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Part i. General standard disclosures   /   11
Sustainability Report 2014     /
1. 
Strategy 
and 
analysis

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Part i. General standard disclosures   /   13
Sustainability Report 2014     /
G4-1 Statement from the most senior decision-maker 
Dear friends,
I am pleased to once again present Iberdrola’s Sustainability Report, which provides a thorough and 
transparent account of the Company’s economic, social, and environmental performance in 2014, in 
accordance with the guidelines of the Global Reporting Initiative (GRI). 
During the past year, we continued to carry out our business activities in accordance with a sustainable 
business model based on:
  the long-term, geographic diversification, a focus on regulated activities, the quality of our assets, 
efficiency, and financial strength; 
  the ongoing promotion of ethics, transparency, good governance, innovation, and inclusion;
  while sharing the benefits achieved with society as a whole and generating trust through continuous 
dialogue and engagement with our stakeholders.
This is the model that has made Iberdrola one of the leading utilities worldwide, which currently 
produces and supplies electricity –in a clean, reliable, and responsible manner– to approximately one 
hundred million people, primarily in the United Kingdom, the United States of America, Mexico, Brazil, 
and Spain, while fostering their economic and social development at the same time.
Economic recovery and good results
During 2014, economic recovery finally took hold in our main markets, with growth rates exceeding 2% 
in the United Kingdom, the United States of America, and Mexico, and with a very significant trend shift 
in Spain, where the economy grew by 1.4%. Brazil, on the other hand, experienced a slight slowdown.
From the regulatory standpoint, especially noteworthy is the energy reform spearheaded by President 
Peña Nieto in Mexico, which is designed to guarantee more efficient and sustainable supply for all 
Mexicans and entails new growth opportunities for our Company in that country. 
In 2014, Iberdrola continued making significant efforts to optimise operating and financial management 
within the entire Group, in order to make further progress towards the achievement of the targets set in 
the 2014-2016 Outlook approved last year.
  Gross operating income (EBITDA) increased by 3.1% compared to the previous year, to the sum of 
6,965 million euros, while net profit came to 2,327 million euros, in both cases surpassing the targets set 
on Investor Day in February 2014.
  The Group managed to further increase its financial strength, reducing debt by more than 1,492 million 
euros, to 25,344 million euros1, which allowed us to reduce the net debt/EBITDA ratio to 3.6x, from 4x 
in 2013. This meant a big step towards our goal of bringing net debt to 25,000 million euros by year-end 
2016 and of achieving a net debt/ EBITDA ratio below 3.5x.
1  As adjusted by the dividend paid in December.

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The Company’s good performance throughout the year has allowed it to maintain its commitment to the 
compensation of its shareholders, which comes to 0.27 euro per share, with total shareholder return2 at 30.1%.
Service to society
In 2014, we continued to deepen our commitment to one of our key principles: to serve the communities 
in which we operate, maximising our contribution and our economic and social impact therein. We did 
that by means of:
  investments: almost 3,000 million euros, primarily devoted to networks and clean generation;
  procurement: in excess of 5,400 million euros, from more than 18,000 suppliers;
  service quality improvement and innovative solutions for our customers;
  tax payments: 10,500 million euros (5,500 million euros in direct contributions plus 5,0003 million euros 
in indirect and induced contributions);
  and maintenance and creation of stable and high-quality employment: almost 1,800 new hires, bringing 
our workforce close to 30,000 people, plus approximately 700 scholarship recipients. In all, Iberdrola 
gives direct, indirect, or induced employment to 350,0003 people all over the world.
In this area of human resources, particularly significant are the efforts undertaken in connection with:
  knowledge management and training: more than one million hours for 90% of the workforce, 
accounting for almost 3% of working hours;
  professional promotion: 2,300 promotions; 
  active equality policy: progressive equalisation of the number of men and women on the payroll, 
making Iberdrola the leading European company as to the number of women on the Board of Directors 
(36%), who also chair two of its four committees;
  reconciliation of work and family life: our Company is recognised as a “family-responsible company”;
  international geographic mobility: more than 200 people have moved to another country; 
  and occupational safety: pursuing a goal of 0 accidents within the Group and at our contractors.
As a result of all of the foregoing, the last labour environment survey shows an increase in team pride, 
which stands at 8.5 points out of 10, and in employee satisfaction, with a score of 8 points.
At our Company, we are deeply committed to the future of the new generations, to their education and 
employability, and we have thus continued to advance:
  the international scholarship programme for young graduates from Spain, the United States of 
America, Mexico, and Brazil, which by 2015 will have granted 400 scholarships entailing an overall 
investment of 7.5 million euros; and
  measures to support entrepreneurs, as is the case with the corporate venture capital programme 
Iberdrola Ventures-PERSEO, which has invested almost 50 million euros in start-ups since its launch in 2008.
2  Total shareholder return (TSR): includes the dividends received by the shareholders and the increase in price of the shares.
3  Annual impact estimated by Analistas Financieros Internacionales (Afi), based on Iberdrola’s business during the 2009-2013 period.

Part i. General standard disclosures   /   15
Sustainability Report 2014     /
As a responsible and sustainable enterprise, we believe that corporate governance, ethics, innovation, 
respect for the environment and biodiversity, the support for culture, and social actions are also key 
aspects at our Company.
  In 2014, our Corporate Governance System remained at the forefront for good practices and was 
distinguished with the World Finance Corporate Governance award granted by the publication World 
Finance and, more recently, with the Best Corporate Governance Europe award given by Ethical 
Boardroom.
  We continued to foster ethical behaviour and compliance, and our work in this field earned us 
recognition from international institutions like the Ethisphere Institute and at the Annual Compliance 
Awards.
  We dedicated 170 million euros to R&D+i activities, primarily in connection with smart grids, clean 
generation, and offshore wind energy. We are now the most innovative utility in Spain and the fifth in 
Europe according to the ranking compiled by the European Commission.
  We continued to protect the environment and biodiversity and to contribute to the fight against climate 
change, improving the ratio of emission-free installed capacity, which already stands at 62%, and 
reducing the intensity of emissions by 5% compared to those in 2013. 
  We continued to promote art and culture, through initiatives like a plan for the restoration of 
Romanesque churches in Spain and Portugal and our support for the Binghamton Philharmonic 
Orchestra in the United States of America and the National Theatre of Scotland in the United Kingdom.
  In the field of social actions, we developed initiatives like the Social Aid Programme in Spain, to which 
we dedicated approximately one million euros in 2014 in order to improve the living conditions of almost 
80,000 people who are socially vulnerable or excluded. In addition, almost 500,000 people directly or 
indirectly benefited from the international Corporate Volunteering Programme.
  In 2014, we launched the programme Electricity for All (Programa electricidad para todos), designed 
to strengthen activities for promoting access to electricity in emerging and developing countries. 
Various initiatives are already under way in Brazil, Rwanda, and Ethiopia within the framework of this 
programme. 
  Finally, we successfully completed an issuance of “green bonds” in April, thus becoming the first 
Spanish company and the second European utility to have implemented such an initiative. The funds 
raised (750 million euros) are to be used in sustainable and socially responsible projects.
This business vision and this commitment of Iberdrola’s to sustainability make the Company a leader on 
indices like the Dow Jones Sustainability, FTSE4Good, Oekom, and Carbon Disclosure indices, among 
others. In 2014, we also received the prestigious international Responsible Capitalism 2014 award, 
granted by the FIRST group.
The future
In the upcoming years, we will continue to develop our sustainable business model focused on the 
long term. For this purpose, we will continue to implement our investment programme in the amount of 
11,200 million euros in the 2014-2016 period, to be used primarily in the areas of electricity transmission 
and distribution networks and renewable energy in our primary markets.

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/   Sustainability Report 2014 
Our main projects include new wind farms in the United States of America, the United Kingdom, Mexico, 
and Brazil; an undersea cable that will connect Scotland, Wales, and England; the implementation 
of smart grids in Spain; the construction and expansion of combined cycle plants in Mexico; and the 
installation of new hydroelectric capacity in Brazil. 
Looking to the future, we are confident that we will continue creating value for our shareholders, 
employees, customers, suppliers, and all of the regions in which we operate, aware of the essential 
role played by our Company as a driver of economic and social development. Because Iberdrola serves 
society and, more importantly, the well-being of people.
Ignacio S. Galán, 
Chairman of Iberdrola

Part i. General standard disclosures   /   17
Sustainability Report 2014     /
G4-2 Key impacts, risks, and opportunities
1. Iberdrola’s key impacts on sustainability
The Group’s commitment to sustainability is articulated through five operating principles:
  Competitiveness of energy products supplied.
  Safety in the supply of energy products.
  Reduction in the environmental impact of operations.
  Creation of value for shareholders, customers and suppliers, attending to corporate profits as one of 
the foundations for the future sustainability of the Company and the Group.
  The social dimension of the Group’s activities.
Competitiveness 
Iberdrola seeks competitiveness in the energy products supplied through efficiency in the energy 
generation, transmission, and distribution processes. This priority allows us to offer products at the best 
price possible, the use of technologies with lower operating and maintenance costs, and a diversified 
mix with the most competitive energy sources based on climate or market conditions.
Security of supply
Iberdrola’s strategy focuses on ensuring security in the supply of energy products, using locally-
produced primary energy sources whenever possible, employing the use of renewable energy resources, 
and ensuring the reliability and availability of generation, transmission, and distribution facilities.
The Group also works to maintain a high quality of service that ensures the availability of energy for 
customers, to have a robust transmission and distribution network to handle extraordinary events, and 
to provide the means necessary to restore service as quickly as possible. The Group also encourages 
the responsible use of energy, supporting energy savings and efficiency measures.
Environmental dimension
The production and distribution of electricity are industrial activities with a potential impact on the 
natural environment, caused in order to satisfy the consumption needs of consumers as a whole. In the 
environmental dimension, there are global impacts throughout the electricity lifecycle on biodiversity, 
climate, the ozone layer, and acid rain, and local impacts on the consumption of natural resources, 
emissions, waste, effluents, electromagnetic fields, and the visual landscape. A detailed description of 
these types of impacts can be found at www.iberdrola.com, under “Environment”. Actions to control 
and reduce these impacts are described both in the section of this report dealing with the environmental 
dimension and on the website.
Various actions are being taken to reduce the environmental impact of its operations, such as the 
generation of energy with lower emissions, the commencement of biodiversity programmes, efficiency 
in operations, which entails a sustainable use of natural resources, the prevention of pollution, and the

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/   Sustainability Report 2014 
appropriate management of waste generated by activities. The Group also attempts to make a rational 
and sustainable use of water and to manage the risks associated with its scarcity.
Social dimension
The transformation experienced by Iberdrola in recent years as a result of its internationalisation has led 
to the appearance of new and significant challenges, both internal and external, in the management of 
the Company’s social environment.
Iberdrola will continue to strengthen its commitment in the area of social responsibility in coming years, 
such that the whole Company promotes ethical and responsible behaviour within the entire value chain 
in all of the countries in which it does business.
The Company’s activities have an impact on its stakeholders, and the relationship models that Iberdrola 
has established with its customers, employees, and suppliers are reflected in the various chapters of 
this report, which also sets forth the model for the management of relations with the communities it 
serves, promoting mechanisms for dialogue and communication and taking measures to facilitate their 
economic and social development, as well as fostering employment and supply chain policies.
Economic dimension
Iberdrola has a clear economic impact as a driver of industrial activity in the areas in which it operates, 
through the investments it makes and the corresponding creation of jobs. It also generates a broad 
range of service activities in these areas and contributes economic resources to local governments. The 
challenge is for these activities to be sustainable over time, for which reason the financial management 
of the Group is based on three pillars:
  The optimisation of its investment capacity, ensuring an effective use of third-party and the Company’s 
own capital, as well as appropriate rates of return that can create value for the Group.
  Efficient operational management of the assets deployed by the Group.
  Maintaining a financial structure that contributes to strengthening the Group’s asset base, thus 
facilitating the accomplishment of its objectives.
2. Long-term risks and opportunities. Comprehensive risk system
As provided in the Company’s General Risk Control and Management Policy, the Iberdrola Group has 
a comprehensive risk control system in place, the purpose of which is to provide assurances to both 
shareholders and other stakeholders and to the markets in general in terms of economic profitability and 
environmental and social impact, by properly managing the risk/opportunity ratio. The following are the 
main features of such system:
  A structure of risk policies and limits approved by the boards of directors of the various companies of 
the Group. The policies are available in full or in a summarised version at www.iberdrola.com. 
  Identification and assessment of, and establishment of priorities for, the new key risks of the 
businesses and the Group.

Part i. General standard disclosures   /   19
Sustainability Report 2014     /
  Quarterly monitoring and control of the impact of risks on the profit and loss account, which, within 
the framework of the Company’s governance model, is analysed by its Operating Committee, and 
supervised by the Audit and Risk Supervision Committee.
  Analysis and control of the risks associated with new investments.
As a whole, the system described above makes it possible to explicitly manage the risks associated 
with the economic, environmental, and social dimensions and the impact that the materialisation of 
any of them may have on the public perception of the Company. The Company has a Reputational Risk 
Framework Policy in place for this purpose to manage and control reputational risk from both the ethical 
perspective of the Group’s corporate activities as well as in its activities relating to the quality of electric 
supply and customer service. 
A more detailed description of this system can be found in section “E” of the Annual Corporate 
Governance Report 2014 and in the “Main Risk Factors Associated with the Activities of the Iberdrola 
Group” section of the Consolidated Management Report that is part of the Annual Financial Report 2014, 
all of which are available at www.iberdrola.com.
These documents describe in detail the review conducted by the Company to identify the risks faced by 
the Group, i.e. risks inherent in the various countries, industries, and markets in which it operates and 
in the activities that it performs that might prevent it from accomplishing its objectives or successfully 
implementing its strategies. Such risks are identified in the Risk Management System, which also 
reviews the Company’s exposure to risks of various kinds, which are managed and mitigated through 
individual monitoring and decision-making: business risk, credit risk, country risk, financial, regulatory, 
and operational risks, environmental risks, risks relating to new investments, and reputational risks.

/   Sustainability Report 2014 
20   /   Part i. General standard disclosures
2. 
Organisational 
profile

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Sustainability Report 2014     /
G4-3 Name 
Iberdrola, S.A. 
G4-4 Primary brands, products, and services
Iberdrola is a global operator, with the brand names listed in the table below at year-end 2014.
The “Iberdrola” brand reflects the corporate vision and values and is based on the Company’s strategy, 
which gives it credibility and strength, fulfilling its commitment to leadership in the development of clean 
energy in Spain and of wind energy worldwide.
Iberdrola’s brand architecture
Energy business
Non-energy business
Europe/Asia
United Kingdom
United States of 
America
    
Latin America
Mexico	
Brazil	
 	
Exploitation and development of 
Company’s natural gas storage assets, 
purchase/sale, and brokering

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/   Sustainability Report 2014 
The table above only shows the most important brands having the largest presence; the Company has 
other brands at the local and business level.
The main products that Iberdrola makes available to its customers are electricity and natural gas. It also 
offers a broad array of products, services, and solutions in the areas of:
  Improvement in the consumer’s quality of life, peace of mind, and safety.
  Energy efficiency and services.
  Protection of the environment: renewable energy and sustainable mobility.
  Quality of electricity supply and safety of facilities.
  Assembly of electricity infrastructure.
  Comprehensive management of energy facilities and supplies.
It also provides the following services through its subsidiaries: engineering and construction of 
electricity generation, distribution, and control facilities; operation and maintenance of electricity 
generation facilities; land management and development; and the sale and lease of housing, offices, and 
retail premises. More detailed information in this regard can be found at www.iberdrola.com. 
G4-5 Headquarters
The registered office of Iberdrola is:
Plaza Euskadi número 5 
48009 Bilbao, Biscay
Spain
G4-6 Countries where there are significant operations 
Iberdrola and its subsidiaries and affiliates carry out their activities in almost thirty countries, eighteen of 
which are considered significant with respect to sustainability issues.
The countries in which they operate, the activities performed in each of them, and the criteria used to 
define their significance are set forth in section G4-17 of this report. 
G4-7 Nature of ownership and legal form
Iberdrola is a sociedad anónima (public limited company) organised under Spanish law.
At 31 December 2014, its share capital totalled 4,791,362,250 euros, represented by 6,388,483,000 shares 
of the same class and series, each having a nominal value of 0.75 euro. All shares give the holders 
thereof the same rights. The approximate distribution of equity interests is as follows:
  Foreign entities	 60%
  Domestic entities 16%
  Retail investors	 24%

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Sustainability Report 2014     /
G4-8 Markets served
In the countries of operation, described in section G4-17, the Iberdrola Group provides the products and 
services described in section G4-4 to many different types of customers in the residential, commercial, 
and corporate spheres as reflected in indicator EU3. The same types of products and services will be 
provided in other countries should legal, economic, and social circumstances be appropriate, in line with 
the Company’s strategic approach.
G4-9 Main Indicators 
The following sections include the principal figures for Iberdrola, the corporate structure of which is set 
forth in indicator G4-42 of this report.
Employees
Employees4
2014
2013
Spain
10,838
11,198
United Kingdom
6,856
7,380
United States 
5,057
5,041
Mexico
736
672
Brazil
3,745
3,722
Other countries
155
244
Basic boundary
27,387
28,257
Expanded boundary
29,597
30,532
Operations (centres of activity)
The Iberdrola Group has identified more than 1,200 sites at which the Company operates. In order 
to adequately manage a large number of them from the viewpoint of the issues dealt with in the 
GRI Guidelines, rationalisation criteria have been used to address them; accordingly, the number of 
Iberdrola’s locations of operation at year-end 2014 is deemed to be 127 for the purposes of this report. 
4  The figures in the table reflect the number of employees at year-end 2014, without distinguishing between full-time/part-time 
employees. To perform statistical analysis regarding labour costs, it is recommended to use the number of employees in terms of 
Full Time Equivalents (FTEs): 27,463 in 2014 and 28,189 in 2013.

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Detailed information on these locations and on the criteria used to define them can be found in the 
document Information Supplementary to the Sustainability Report 2014 available at www.iberdrola.com.
Net sales (net revenue)
Net sales (€ millions)
2014
2013
Iberdrola consolidated total
30,032
31,077
Total capitalisation, broken down in terms of debt and equity
Total market capitalisation (€ millions)
2014
2013
Share capital
4,971
4,680
Equity of controlling company
35,040
34,585
Bank borrowings
28,349
28,452
Gross property, plant, and equipment in use
89,474
82,173
Accumulated amortisation and depreciation
(37,861)
(34,204)
Products or services provided
Products or services provided
2014
2013
Iberdrola total
Net electricity production (GWh)
138,892
136,435
Electricity distributed (GWh)
214,613
214,873
Gas supplies to users (GWh)
85,092
80,303
Total assets
Total assets (€ millions)
2014
2013
Iberdrola consolidated total
93,771
89,787

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Sustainability Report 2014     /
Beneficial ownership  
No shareholder holds a controlling interest in the Company’s equity structure. Below is a table showing 
those shareholders who hold a significant interest in the share capital of, or voting rights in, Iberdrola as 
of 31 December 2013 and 2014. 
Significant shareholders and percentage 
of direct and indirect voting rights (%)
31/12/2014
31/12/2013
Qatar Investment Authority
9.647 
9.524 
ACS, Actividades de Construcción y 
Servicios, S.A.
3.965 
5.645 
Banco Financiero y de Ahorros, S.A.
N/A 
5.069 
Kutxabank, S.A.
3.601 
4.006 
BlackRock, Inc. 
3.023 
3.043
Société Générale, S.A.
N/A 
4.111
Sales and costs by geographic area
Sales (net amount in € millions)
2014
2013
Spain
14,364
15,286
United Kingdom
8,803
9,655
United States 
3,286
3,176
Mexico
1,657
1,419
Brazil
1,641
1,282
Other
281
259
Iberdrola consolidated total
30,032
31,077

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Costs (€ millions)
2014
2013
Spain
9,318
10,227
United Kingdom
6,522
7,642
United States 
1,471
1,444
Mexico
1,228
1,013
Brazil
1,228
955
Other
176
160
Iberdrola consolidated total
19,943
21,441
G4-10 Workforce 
Employees5
2014
2013
Men
Women
Men
Women
By type of employment
Full-time
Part-time
 
20,846
199
 
5,415
927
 
21,342
224
 
5,496
1,195
By type of contract
Permanent
Temporary
 
20,714
331
 
6,244
98
 
21,231
335
 
6,578
113
Basic boundary
21,045
6,342
21,566
6,691
The policies followed with subcontracted personnel are described in indicator EU17.  
A breakdown by geographic area can be found in the Information Supplementary to the Sustainability 
Report 2014, available at www.iberdrola.com. 
5  The total number of employees and the definitions of the boundaries are in indicators G4-9 and G4-17 of this report.

Part i. General standard disclosures   /   27
Sustainability Report 2014     /
G4-11 Employees covered by collective bargaining agreements
Generally speaking, collective bargaining agreements of the Iberdrola Group apply to all employees 
working under an employment relationship and for the account of the companies of the Group, 
regardless of the type of contract entered into, the professional group to which they are assigned, their 
occupation, or the job performed. 
However, issues relating to the corporate organisation, the law of each country, or even usage and 
custom in each country lead to certain groups being expressly excluded from the scope of collective 
bargaining agreements (for example, executives in Spain are not covered by the agreement). This is why 
there is not 100% coverage, as indicated in the table below:
Employees covered by a collective 
bargaining agreement
2014
2013
Basic Boundary
Number of employees
21,221
22,042
Percentage of employees
77.49
78.00
A breakdown by geographic area can be found in the Information Supplementary to the Sustainability 
Report 2014, available at www.iberdrola.com. 
G4-12 Description of supply chain 
Introduction
The Iberdrola Group’s supply chain consists of two different processes:
  the acquisition of material and equipment and the procurement of works and services, handled by the 
Group’s Procurement Division, which is within the Finance and Resources Division.
  the acquisition of fuel, handled by the Wholesale and Retail Business.
Both processes have their own specific characteristics in their various phases: registration and 
classification of suppliers, bidding process, execution of contracts, monitoring of contractual terms, 
and quality control, but both are guided by the same principles emanating from the corporate policies 
and the Code of Ethics, which are approved by the Company’s Board of Directors and are available at     
www.iberdrola.com.

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Acquisition of material and equipment and procurement of works and services
Iberdrola placed orders with more than 18,300 suppliers during 2014. The following table shows the 
economic volume of purchases by Iberdrola for these types of supplies, as well as a geographic 
breakdown thereof:
General supply of equipment, works, and 
services (€ millions) 
2014
2013
Spain
1,316
1,364
United Kingdom
1,610
1,572
United States 
1,057
840
Mexico
332
217
Brazil
165
180
Other
119
186
Basic boundary
4,599(1)
4,359
(1) Volume of supplies billed during the year. Supplies in the amount of 5,400 million euros were 
awarded during the same year.
These high purchase volumes boost growth in those countries in which the Company engages in 
procurement, favouring the business, industrial, and social development thereof through the creation of 
employment at service providers and their auxiliary industries.
Acquisition of fuel
Iberdrola dedicated approximately 4,220 million euros to the acquisition of coal, natural gas, and uranium 
in 2014. Except for uranium, which is acquired in Spain exclusively through the Empresa Nacional 
de Uranio (Enusa), acquisitions of coal and natural gas are made on the international market, mainly 
through long-term commercial relationships with approximately 33 large domestic and international 
suppliers and traders.
Management of supply chain
The Procurement Division, within its area of responsibility, has a Global Supplier Management Model that 
is applicable to the Iberdrola Group, the purpose of which is the creation of long-term value through the 
management of opportunities and of the risks stemming from relevant economic, environmental, and 
social variables.
The rapid and comprehensive transformation carried out by Iberdrola in recent years has also multiplied 
its responsibility as a global Company to thousands of suppliers that place orders during the year and 
are located in different parts of the world.
The chart below shows the main mechanisms of the supplier management model:

Part i. General standard disclosures   /   29
Sustainability Report 2014     /
Environmental
Risks
Equipment Purchases
Improvement Goals
Surveys (AA100)
Communication System
Procedure (ISO 9001)
Transparent Closing
Audits
Procurement Policy
Internal Control Process
Code of Ethics
Suppliers
“Global Compact”
BSR-SME Initiative
Disadvantaged Groups
Specific CSR T&C
Anti-corruption Analysis
Suppliers’ Code of Ethics
CSR Scoring and Classification
Credit Risk
GHG Measurement
ISO 14001 and OHSAS 18001
Social
Labour
Corruption and Bad 
Practices
Incentivising
Dissuasive
Levers
Preventive
The Procurement Division develops various initiatives designed to ensure sustainability in the supply 
chain, including ethical commitments and commitments of respect for human rights and the fight 
against corruption, taking as a starting point the principles established in the Policy on Respect for 
Human Rights, in the Procurement Policy, and particularly in the Suppliers’ Code of Ethics. Below is a 
list of such initiatives:
- Registration, classification, and evaluation of suppliers: 
Suppliers (both new and existing) are reviewed, classified, and evaluated internally within the context of 
the proposed purchase transaction, according to their specialisation, the criticality of supply, the total 
amount of the purchase, or the low possibility of substitution, inasmuch as the foregoing may negatively 
and significantly affect the achievement of the company’s strategic objectives in the event of non-
performance or defective performance. In this connection, priority will be given to suppliers that have 
advanced management systems certified by a third party and, in particular:
  An environmental management system that fosters the use and development of environmentally friendly 
technology.
  Quality management system.
  Occupational risk prevention system.
  Corporate social responsibility action plan.
In evaluating the supplier, sustainability has a weight of 40% in the total score, with the other 60% being 
credit risk and technical solvency.

30   /   Part i. General standard disclosures
/   Sustainability Report 2014 
– Evaluation of risks of supplier corruption. The procurement process carried out by the Group’s 
Procurement Division includes an evaluation of the risk of supplier corruption and the performance of 
due diligence reviews on suppliers considered to present the greatest risk.
  Credit risk review at suppliers. In order to prevent the potential negative consequences for Iberdrola of 
suppliers failing to honour their commitments, the Procurement Division has a credit risk management 
system for the main suppliers of the Group.
– Policies and procedures. The policies and procedures established by the Group in this connection 
include the following:
  Procurement Policy and procurement procedures: these establish the global framework for the control 
and management of procurement processes, with particular emphasis on fulfilment of the ethical 
commitments of the professionals of the Group and of its suppliers.
  Suppliers’ Code of Ethics: considering that suppliers are strategic stakeholders, the Company has 
established specific action principles for them in their area of activity, aligned in any case with the 
principles and values of the Group, which are set forth in the Suppliers’ Code of Ethics, and which must 
be accepted by the Group’s suppliers and is attached to the respective agreements.
– Specific clauses in the contracting conditions of the Iberdrola Group. These conditions include 
contractual provisions requiring the parties to act within the most stringent levels of safety, occupational 
risk prevention, environmental protection, and respect for and protection of human rights, as well as 
to eliminate all forms of forced and compulsory labour, prevent any form of child labour, eliminate all 
discrimination practices, fight against corruption, etc.
- In-house and external training and communication. Training courses for all personnel working in the 
Procurement Division on the principles laid down in the Procurement Policy and on CSR in the supply 
chain were completed during the financial year. All suppliers are notified of the Suppliers’ Code of Ethics 
during the bidding stage, and such Code is part of the documentation both in the request for bids and 
in the final contractual documents executed with the awardee supplier. Some specific supplier training 
actions were conducted at the Group during the financial year and will also be carried out in coming 
financial years.
- Supplier involvement campaigns: To improve the status of suppliers with lower performance in the area 
of sustainability, improvement and awareness-raising activities are conducted throughout the year in 
order for suppliers to achieve certification. The results achieved with these actions are reflected in the 
following table:

Part i. General standard disclosures   /   31
Sustainability Report 2014     /
Amount awarded to suppliers with 
management systems (%)6
2014
2013
Basic boundary
Amount awarded to qualified suppliers 
92.3
86.8
Certified quality management system 
(ISO 9001 or equivalent)
83.7
84.4
Certified environmental management 
system (ISO 14001 or equivalent)
76.9
75.0
Certified risk prevention management 
system (OHSAS 18001 or equivalent)
71.5
69.1
Fuel purchases are also subject to the general principles stemming from Iberdrola’s social responsibility 
policies in order to foster socially responsible actions, respect for the environment, and the prevention of 
occupational risks at supplier companies.
Iberdrola carries out an internal evaluation of its main fuel suppliers in accordance with economic, 
logistics, environmental, and social standards. Aspects assessed are: the existence of an environmental 
policy, information regarding CO2 emissions, emission reduction initiatives, energy efficiency, 
biodiversity conservation, occupational health and safety, equal opportunity, human rights, and ethical 
behaviour (anti-bribery and anti-corruption practices). 
When establishing supply contracts, apart from agreeing on contractual elements that respect the law 
applicable in the countries involved in the transaction, Iberdrola negotiates the inclusion of clauses 
regarding social responsibility. Currently, all contracts for imported coal and for uranium have these 
types of clauses. These clauses are being included in new natural gas contracts.
Iberdrola has recently adhered to the international BetterCoal initiative, which includes the leading 
European coal-purchasing energy companies. Its aim is to set a standard for ethical, environmental, and 
social conduct, evaluate the conduct of producers through audits, create a database with the results of 
such evaluations, and improve producers’ actions.
Iberdrola is not aware of any external complaints during 2014 with respect to the supply chain, and has 
not cancelled any supply contract or order upon grounds relating to human rights, corruption, labour 
practices, or environmental practices.
In 2014, the main suppliers of general supplies of the Group were: ABB, Alstom, Babcock, Balfour Beatty, 
Elecnor, Gamesa, General Electric, IBM, Quanta Services, and Siemens.
6  Scope: Suppliers of materials, equipment, works, and services with orders for amounts equal to or greater than €400,000 during 
the year, which represents more than 90% of the total amount contracted (information as at the end of November 2014).

32   /   Part i. General standard disclosures
/   Sustainability Report 2014 
G4-13 Significant changes during the financial year 
Changes in activities and/or in operations
In the course of their business, the various subsidiaries and affiliates of Iberdrola have carried out 
transactions that change the composition of their assets. 
  On 10 February 2014, Iberdrola reported that its wholly-owned subsidiary Iberdrola Energía, S.A. had 
sold part of its equity interest in EDP - Energias de Portugal, S.A. in successive transactions.
On 11 February, the CNMV was notified that Iberdrola Energía, S.A. had entrusted UBS Limited with the 
sale of shares representing 1.979% of the share capital of EDP - Energias de Portugal, S.A. This sale was 
completed on 12 February and was made through an accelerated bookbuilding targeting only qualified 
and institutional investors.
Subsequently, on 8 May, the Company announced the expiration of the last derivatives contract on 
shares of EDP - Energias de Portugal, S.A., such that the entire interest of Iberdrola Energia, S.A. in EDP 
- Energías de Portugal, S.A. was sold on that date.
  On 12 February, Iberdrola notified the CNMV of the transfer by Iberdrola Energía, S.A. of its 
entire direct equity interest (22.6%) in the Brazilian company Itapebi Geração de Energia, S.A. to 
Termopernambuco, S.A., a wholly-owned subsidiary of Neoenergia, S.A. As a result of such process, 
Iberdrola now has an indirect stake in Itapebi Geração de Energia, S.A. equal to 39% of its share capital.
  On 18 February, the CNMV was notified of the resolution to implement a programme for the 
repurchase of the Company’s own shares, in reliance on the authorisation granted by the shareholders 
at the General Shareholders’ Meeting held on 26 March 2010 under item eight on the agenda. From 
that date, Iberdrola regularly sent information to the CNMV on the share repurchase programme until 
28 April 2014, the date on which it ended. Accordingly, the Company acquired a total of 42,161,696 own 
shares (0.662%) of the share capital of IBERDROLA by way of implementation of the share repurchase 
programme.
  Subsequently, the execution of the notarised instrument recording the reduction in share capital 
through the retirement of own shares was reported on 8 May.
  On 30 May, the Company notified the CNMV of the execution by Iberdrola and the US company 
Corpus Christi Liquefaction, LLC, a subsidiary of Cheniere Energy Inc., of a liquefied natural gas supply 
agreement.
  On 30 July 2014, notice was given of the execution of an agreement between Iberdrola Generación, 
S.A. and BP Global Investments Ltd. transferring 25% of the share capital of Bahía Bizkaia Electricidad, 
S.L.
Changes in capital structure
In January 2014, the second increase in capital approved at the General Shareholders’ Meeting held on 
22 March 2013 was implemented, on occasion of what would have been the traditional payment of the 
interim dividend for financial year 2013.

Part i. General standard disclosures   /   33
Sustainability Report 2014     /
In addition, the shareholders acting at the General Shareholders’ Meeting of Iberdrola held on 28 March 
2014 approved two increases in capital by means of a scrip issue in order to again implement the 
Iberdrola Flexible Dividend system, implementing the first increase in capital in July 2014. The second of 
the increases in capital approved in 2013 was implemented in December 2014.
Participation in external initiatives
G4-14 Precautionary principle
The precautionary principle is included in Iberdrola’s Environmental Policy approved by its Board of 
Directors, and its application is reflected by its wager on more environmentally efficient production 
technologies, particularly renewable energy, which is more effective in the fight against climate change 
and less harmful to biodiversity.
The precautionary approach also materialises through the consideration of environmental risk within 
the comprehensive risk management system, the prevention and mitigation instruments contemplated 
therein, and the widespread use of environmental impact assessments as a preventive tool in the 
development of infrastructure projects.
The implementation of the Environmental Management System (the core function of which is to analyse, 
prevent, and mitigate risks) is also key in the application of the precautionary principle within the 
organisation. Within the framework of these management systems, emergency drills are conducted at 
facilities, and the causes of incidents are analysed in order to prevent any possible future accidents. 
Another key component of these management systems is training, which allows the principles 
underpinning such systems to be disseminated across the organisation.
Following the guidelines established in the Group’s environmental policies approved by the Board of 
Directors, in 2014 Iberdrola implemented a corporate model for the management of the environmental 
risks of all the group’s businesses. Such model is supported by a methodology and a reporting system 
that are unique for the corporation and its businesses.

34   /   Part i. General standard disclosures
/   Sustainability Report 2014 
G4-15 Externally developed principles or initiatives to which the organisation subscribes or which it endorses
The Company has subscribed to or endorsed external initiatives aligned with sustainable development 
and encouraged its affiliated companies to adhere to them. Iberdrola supports or subscribes to:
  The Global Compact since 2002. It has also committed to other initiatives of the Global Compact in 
connection with human rights and has a wide range of policies governing respect for human rights, 
a Code of Ethics that applies to all employees, and a Declaration of the Chairman acknowledging the 
importance of such rights in the conduct of the Company’s business activities.
  The BetterCoal initiative, which promotes corporate social responsibility standards in the international 
coal supply chain as well as transparency in information on the transactions of the main producers.
  The international organisation Carbon Disclosure Project (CDP), through its Road to Paris 2015 
project, which is encouraging the adoption by states of binding and ambitious measures at the Climate 
Summit to be held in the French capital. And it has reaffirmed its commitment to the fight against climate 
change within the framework of the Climate Summit organised by the United Nations Organization (UNO) 
in New York in September.
ScottishPower supported the Scotland Lights Up Malawi action, which promotes climate justice by 
investing in solar energy through research and education.
Iberdrola Renovables has endorsed various initiatives, such as the Offshore Wind Accelerator, the 
Radar Working Group, and the Technology Innovation Centre, as well as the Oregon Business Climate 
Declaration, all of them in the area of renewable energy.
Elektro, in addition to being committed to the Global Compact since 2007, in 2014 carried out the 
Promoção da Economia Verde e Inclusiva (Promotion of Green and Inclusive Economy) as part of the 
initiatives of the United Nations Conference on Sustainable Development (Rio+20), which adds to its 
ongoing commitments such as Empresa Amiga da Criança (Child Friendly Company) to protect children 
and adolescents from labour abuse.
In Spain, the Company participated with Universidad Politécnica de Valencia in seminars and workshops 
on hydroelectric facilities and production, and continued with the Mini-REIS Project (Hydroelectric 
Generation) Project, which seeks to establish a methodology for the measurement and economic 
valuation of the ecosystemic services provided by the construction of new infrastructure.
Iberdrola has provided support to the communities affected by Hurricane Odile in the state of Baja 
California Sur, along with the Mexican Red Cross.
Initiatives to promote electric vehicles were carried out in the United States of America, where Iberdrola, 
as a member of the National Edison Electrical Institute, developed the Fleet Electrification Initiative; 
Scottish Power has continued its involvement with the Ultra Low Carbon Vehicle Demonstrator Glasgow 
programme, managed by The Strategy Board and the Department for Transport, and the Plugged-In 
Places programme together with the Office of Low Emission Vehicles.

Part i. General standard disclosures   /   35
Sustainability Report 2014     /
G4-16 Principal associations to which the organisation belongs
Iberdrola is a member of numerous organisations related to its activities. In order to understand the 
Company’s commitment thereto, as well its participation in committees, the contributions made by 
the Company, and its strategic involvement in such organisations, the reader should refer to the public 
information or websites of such organisations. The most significant organisations are listed in the 
following table: 
International
World Association Nuclear Operator (WANO)
European Wind Energy Association (EWEA)
Institute for Nuclear Power Operations (INPO)
Global Wind Energy Council (GWEC)
Scotland Europa
European Ocean Energy Association (EOEA)
International Electrotechnical Commission/European 
Committee for Electrotechnical Standardisation (IEC/
Cenelec)
International Council on Large Electricity Systems (Cigre)
International Conference on Large Power Networks (Cired)
European Ocean Energy Association
BetterCoal 
Nuclear Industry Association
The G9 Offshore Wind Health and Safety Association
Smart Life
Electric Power Research Institute (EPRI)
International Emissions Trading Association (IETA)
Global Sustainable Electricity Partnership
Alliance For Rural Electrification (ARE)

36   /   Part i. General standard disclosures
/   Sustainability Report 2014 
Spain
Sociedad Nuclear Española
Asociación Empresarial Eólica (AEE)
Sociedad Española de Protección Radiológica
Club Español de la Energía
Foro de la Industria Nuclear Española
Unión Española Fotovoltaica (UNEF)
Asociación Española del Gas (SEDIGAS)
Red Española del Pacto Mundial
Asociación Española de Profesionales de Compras, 
Contratación y Aprovisionamiento (Aerce)
Asociación Española para la Calidad (AEC)
Asociación Española de la Industria Eléctrica (UNESA)
Círculo de Empresarios
Confederación Española de Organizaciones  
Empresariales (CEOE/CEPYME)
Cámara de Comercio de España
Subcomité Técnico de Normalización SC1.  
(Aenor: AEN/CTN 207/SC 10)
Club de Excelencia en Sostenibilidad
United Kingdom
The Confederation of British Industry
Joint Environment Programme
The Scottish Council for Development and Industry
Generators Safety and Integrity Programme
Energy UK - Energy Efficiency Group & ECO Group
Institute of Asset Management
Energy Networks Association
Industrial & Power Association
Fuel Poverty Advisory Group for England
Ministerial EV Strategy Group
Scottish Fuel Poverty Forum & ECO Sub-Group
Scottish Parliament & Business Exchange
Department for Energy and Climate Change - Energy 
Company Obligation Steering Group & Green Deal 
Advisory Group
All Party Parliamentary Group for Energy Studies, 
Parliamentary Renewable & Sustainable Energy Group & All 
Party Parliamentary Corporate Responsibility Group 
Energy & Efficiency Industrial Partnership, Energy &  
Utility Skills & National Skills Academy for Power
Scottish Environment Link
2020 Climate Group
Green Alliance
Renewable UK
Scottish Renewables

Part i. General standard disclosures   /   37
Sustainability Report 2014     /
United States of America
Business Council of New York State
American Wind Energy Association (AWEA)
Maine State Chamber of Commerce (MSCC)
Renewable Energy New England (New England States)
Maine & Company
Mid-Atlantic Renewable Energy Coalition (PJM States)
Northeast Gas Association (NGA)
Renewable Northwest Project
American Gas Association (AGA)
The Wind Coalition
Gas Technology Institute
American Wind Energy Association
Edison Electric Institute (EEI)
Mexico
Empre-Bask México, A.C.
Cámara Española de Comercio, A.C.
Asociación Mexicana de Energía A.C
Consejo Empresarial Mexicano de Comercio Exterior 
Inversión y Tecnología, A.C.
Confederación Patronal  
de la República Mexicana (Coparmex)
Asociación Mexicana de Energía Eólica
Brazil
Associação Brasileira de Distribuidoras  
de Energia Elétrica (Abradee)
Câmara Americana de Comèrcio (Amcham)
Associação Brasileira das Relações Empresa Cliente 
(Abrarec)
Associação Brasileira de Comunicação Empresarial (Aberje)
Fundação Nacional da Qualidade (FNQ)
Associação Brasileira de Energia Eólica (Abeeólica)

38   /   Part i. General standard disclosures
/   Sustainability Report 2014 
2.1. Organisational profile 
GRI Sector Supplement Indicators
EU1 Installed capacity
Installed capacity by energy source (MW)
2014
2013
Hydroelectric
9,869
9,869
Renewable7
14,652
14,306
Thermal coal-fuel
3,178
3,178
Combined cycle
12,742
12,995
Cogeneration
1,238
1,233
Nuclear
3,410
3,410
Iberdrola total
45,089
44,992
The information by geographic area is available in the Information Supplemental to the Sustainability 
Report 2014, available at www.iberdrola.com. 
EU2 Energy output
Net energy output by source of energy 
(GWh)
2014
2013
Hydroelectric
20,636
17,678
Renewable7
33,863
33,983
Thermal coal-fuel
12,102
12,589
Combined cycle
42,126
42,454
Cogeneration
5,734
6,843
Nuclear
24,431
22,888
Iberdrola total
138,892
136,435
7  Renewable: wind, solar, mini-hydro.

Part i. General standard disclosures   /   39
Sustainability Report 2014     /
The information by geographic area is available in the Information Supplemental to the Sustainability 
Report 2014, available at www.iberdrola.com. 
EU3 Electricity users and producers
Electricity users (%)
2014
2013
Iberdrola total
Residential
90.3
90.3
Industrial
1.0
0.9
Institutional
0.9
0.9
Retail 
5.6
5.8
Other
2.2
2.1
Users who are producers (no.)
2014
2013
Iberdrola total
Users that are also producers of 
electricity
69,587
41,630
The Group managed 29 million supply points at year-end 2014. 
The information by geographic area is available in the Information Supplemental to the Sustainability 
Report 2014, available at www.iberdrola.com.

40   /   Part i. General standard disclosures
/   Sustainability Report 2014 
EU4 Transmission and distribution lines 
Power lines8 (Km) 
2014
2013
Transmission
Overhead
29,446
35,240
Underground
960
1,165
Iberdrola total
30,406
36,406
Distribution
Overhead
846,281
829,885
Underground
187,868
186,248
Iberdrola total
1,034,149
1,016,134
Due to the nature of the respective electric systems, the voltage levels used for the transmission and 
distribution of power are not the same in all countries. In Latin America, transmission lines are deemed to 
be those with a nominal voltage equal to or greater than 69 kV; in the United States of America and in the 
United Kingdom, transmission lines are deemed to be those with a nominal voltage equal to or greater than 
132 kV; in Spain, transmission lines are deemed to be those with a nominal voltage greater than 220 kV.
The information by geographic area is available in the Information Supplemental to the Sustainability 
Report 2014, available at www.iberdrola.com. 
EU5 Allocation of CO2 emissions allowances or equivalent
Of Iberdrola’s facilities, only the European facilities are subject to trading in emissions rights, which does 
not affect the thermal generation facilities in Mexico, Brazil, or the United States of America. 
The European facilities have not received free trading rights since 2013, for which reason they have 
had to obtain them at auction to offset the emissions produced by the facilities in Spain and the United 
Kingdom. Only the Tarragona Power combined cycle plant, with emissions of 213 kt CO2, received an 
allotment of 26,253 rights. 
Total emissions of the European facilities in 2014 were 15.4 million tonnes, 9% less than the prior year, 
and which were covered by purchases on the market and surpluses from prior years.
8  Lengths of lines are calculated by circuit, regardless of the number of circuits for each power line. A double-circuit 5 km line is 
considered to be 10 km.

Part i. General standard disclosures     /   41
Sustainability Report 2014   /
3. 
Material 
aspects and 
boundaries

42   /   Part i. General standard disclosures
/   Sustainability Report 2014 
G4-17 Entities included in the organisation’s consolidated financial statements and in the boundary of this report 
A.  Introduction
Iberdrola, with a presence in almost thirty countries, has followed the GRI recommendations in defining 
the boundary of this report, taking into account the entities in which it has control, those in which 
it has significant influence, and the activities that are significant for the Group from the economic, 
environmental, and social standpoint.
For purposes of this report, the following terms have the meanings set forth below:
  “Iberdrola” or the “Company”: the Spanish company Iberdrola, S.A., parent company of the Iberdrola 
Group.
  “Iberdrola Group” or the “Group”: Iberdrola (as parent company) and the group of subsidiaries over 
which Iberdrola has the power of control or joint control. 
  “Affiliated companies” or “Affiliates”: the group of companies in which Iberdrola has a percentage 
interest but not the power to exercise control. Some of these companies, identified below, are included 
in this report because they are deemed to be companies over which significant influence is exercised for 
purposes hereof.
The companies in which Iberdrola owns a direct or indirect equity interest are listed in the document 
Annual Consolidated Financial Statements and Consolidated Management Report for the Financial Year 
ended 31 December 2014. 
The Group is subject to industry regulations on the separation of activities, which seek to avoid any 
interference by companies conducting liberalised activities in the management of companies carrying 
out regulated activities, in order to ensure transparent, non-discriminatory, and efficient management of 
the electricity and gas systems. As a general rule, such regulations allow for the performance of certain 
activities, such as production and sale (liberalised activities), under the free competition system, in 
comparison with others that, due to their nature, must be carried out as a monopoly, including electricity 
and gas distribution and transmission/transportation (regulated activities). Iberdrola has the power to 
financially supervise the management of regulated companies, but may under no circumstances instruct 
them regarding day-to-day management. For their part, regulated companies must not share non-public 
commercially sensitive information with liberalised companies when knowledge thereof might entail 
a competitive advantage. In particular, as regards the energy businesses of the Group in Spain, on 10 
December 2014, the Board of Directors of Iberdrola España, S.A.U. approved the Code for the Separation 
of Activities of the Companies of the Iberdrola Spain Group Carrying out Regulated Activities in Spain.

Part i. General standard disclosures   /   43
Sustainability Report 2014     /
B.  Information boundaries of this report
The presentation of the Company’s public information is subject to the following external determining 
conditions:
  The scope and basis of presentation of financial information must comply with established statutory 
requirements.
  The environmental and social information, on the other hand, is presented voluntarily; there are no 
statutory requirements that define it, and it is based on the consideration of “significant impacts”, such 
that it refers to those activities of the Group that are deemed to be significant for sustainability purposes.
To reconcile these determining conditions, Iberdrola has established three quantitative information 
boundaries: basic boundary, expanded boundary, and global boundary.
B1. Basic boundary
This boundary is formed by Iberdrola, S.A., its significant subsidiaries for sustainability purposes, and its 
fully or proportionately consolidated affiliates that are significant for sustainability purposes.
The subsidiaries or affiliates within this boundary are all those that operate in the countries listed in table 
B.1.1. and that carry out the activities described therein.

44   /   Part i. General standard disclosures
/   Sustainability Report 2014 
B.1.1 Significant countries and activities for the Iberdrola Group in terms of sustainability and included in the 2014 
reporting boundary.
Group 
Office
Electricity production
Transmission 
and/or 
Distribution 
of electricity 
or gas
Supply of electricity 
and/or gas (1)
Gas storage
Engineering and Construction (2)
Real 
estate
Conventional
Renewable 
(3)
Wholesale 
market
Retail 
market
Construction and/
or operation of large 
facilities 
Other 
projects
Spain(4)
X
X
X
X
LIB
 LIB 
 
X
X
X
UK
X
X
 X(5)
X
LIB
 LIB
X
X
X
 
USA
X
 
X
X
LIB
REG
X
X
X
 
Mexico
X
X
X
 
 
 
 
X
X
Brazil
X
 
X
X
 
REG
 
X
 
Portugal
X
X(6)
X
 
LIB
LIB(6)
 
X
Romania
X
X
X
Algeria
X
 
 
 
 
 
 
X
 
 
Greece
X
X(5)
 
 
 
 
 
 
Germany
X
 
LIB 
LIB
 
X
 
South 
Africa
X
X
France
X
 
LIB 
LIB 
 
 
 
 
Hungary
X
X
Russia
X
 
 
 
 
 
X
 
 
Kenya
X
X
Italy
X
X
 
LIB
 
 
 
X
 
Canada 
X
 
 
 
 LIB 
 
X(7)
 X(7)
 
 
Honduras
X
1) Types of sales activities:
LIB: activities in liberalised markets, independent of distribution activities.
REG: activities in regulated markets, together with distribution activities. The supply to these markets has not been considered as an activity in 
the wholesale market.
2) These activities are described in detail at www.iberdrolaingenieria.com. 
3) Environmental information regarding renewables activities in Brazil and Portugal is not consolidated because it is not integrated into the 
corporate systems as of the date of preparation of this report. Furthermore, no social or environmental information is included on facilities in 
Italy, Spain, the United Kingdom, and the United States of America in which the company has an interest of less than 50%.
4) Any reference to the 5th Collective Bargaining Agreement includes the following companies at 31 December 2014: Iberdrola S.A., Iberdrola 
España S.A.U., Iberdrola Generación, S.A.U. Iberdrola Generación España, S.A.U., Iberdrola Operación y Mantenimiento S.A.U., Iberdrola 
Generación Nuclear S.A.U., Iberdrola Clientes S.A.U., Iberdrola Distribución Eléctrica S.A.U. and Iberdrola Renovables Energía, S.A.U. 
5) Renewables activities from the Republic of Ireland are included in the United Kingdom and renewables activities from Cyprus are included in 
Greece.
6) Electricity and/or gas conventional production and sales from Portugal are included in Spain.
7) These activities are not significant from the environmental standpoint. In the labour area, the respective information is included in the 
information for the United States of America.

Part i. General standard disclosures   /   45
Sustainability Report 2014     /
At affiliate nuclear plants, the percentage interest held by Iberdrola in each of them is used to 
consolidate environmental performance data: Vandellós (28%), Almaraz (52.69%); Trillo (49%), and Ascó 
(15%). For social information, on the other hand, because of the structure of the available information 
systems, nuclear plants are consolidated according to the percentage interest held by Iberdrola in the 
economic interest grouping (agrupación de interés económico) created for that purpose; such interest is 
51.41% in the case of Trillo-Almaraz and 14.59% in the case of Ascó-Vandellós.
Cogeneration companies that are subsidiaries of Iberdrola Cogeneración, in which the interest held is 
99%, consolidate their environmental and social information applying a percentage of 100%.
The subsidiaries or affiliates operating in the countries shown in table B.1.2. below are excluded from the 
basic boundary because their activities are considered to be non-significant for the Group.
B.1.2. Non-significant countries and activities for the Iberdrola Group in terms of sustainability, excluded from the 
2014 basic reporting boundary.
 
Group Office Electricity or gas supply 
and/or gas storage
Engineering and 
Construction
Real estate
Belgium, France, and Poland.
 X
 
 
 
Belgium, Holland, and Switzerland.
X
 
Bulgaria, Qatar, Egypt, Slovakia, France, Lithuania, 
Montenegro, Poland, Ukraine, and Venezuela.
 
X
 
Portugal, Bulgaria, and Mexico.
 
X 
Despite the fact that they are not included in the charts and tables of the basic boundary, these activities 
are managed by Iberdrola in the same manner as significant activities, and the following standards are 
applied:
  The qualitative aspects set forth in this report, such as the principles and corporate policies that 
the Iberdrola Group adopts and publishes, as well as business strategies, apply to all activities of the 
subsidiaries of the Group, in all countries in which they operate, without prejudice to the effective 
decision-making capacity of regulated companies, in accordance with laws and regulations governing 
the separation of activities. This includes the information on management focus, objectives, and 
performance set forth in this report.
  In the countries and activities that are not included in the quantitative basic boundary, the application 
is ensured of the same procedures and processes as those applied within the Group, thus ensuring the 
guarantees as to work, basic rights, and environmental protection that derive therefrom.

46   /   Part i. General standard disclosures
/   Sustainability Report 2014 
B.2. Expanded boundary
Applying the changes in laws and regulations that affect the presentation of the Group’s financial 
information, some affiliated companies have modified their consolidation procedure, as explained in 
sections G4-22 and G4-23 of this report. Despite the fact that such change has been made, for the 
purposes of this report, Iberdrola considers the activities carried out by such companies as described 
below to be significant:
  The electricity production activities of Nuclenor, S.A.
  The most significant activities carried out by the Brazilian group Neoenergia, in the area of generation, 
distribution, and supply of energy, which activities are conducted through Neoenergia, S.A. and its 
subsidiaries (the electricity distribution companies Celpe, Coelba, and Cosern, the hydroelectric and 
thermal power generation companies Itapebi, Termopernambuco, Afluente, NC Energía, Rio, Bahia, 
Goias Sul, Corumba, and the cogeneration companies Energyworks Brasil, Ltda. and Capuava Energy, 
Ltda.). Also included in the environmental information are the Baguari and Dardanelos plants, which 
are not significant in labour matters, while NC Energia is not included therein as it is not significant for 
environmental purposes.
The information regarding these activities will only be included in those indicators that Iberdrola 
considers necessary to provide an appropriate global view of the Company.
Equity share and integration applied
Financial consolidation
Share of integration in information (%)
Method
Equity share 
(%)
Financial
Environmental 
and Social
Electricity 
users
Coelba
E
42.76
42.76
42.76
100
Cosern
E
39.95
39.95
39.95
100
Celpe
E
34.96
34.96
34.96
100
Rest of Neoenergia
E
39.00
39.00
39.00
N/A
Nuclenor
E
50.00
50.00
50.00
N/A
E: Integration by equity method

Part i. General standard disclosures   /   47
Sustainability Report 2014     /
Accordingly, the “expanded boundary” includes the activities carried out in the “basic boundary” plus 
the activities of Nuclenor, S.A. and those of the Brazilian Neoenergia Group.
In terms of sustainability, at these affiliated companies Iberdrola promotes the policies approved within 
the Group through the decision-making bodies of such companies, and includes significant information 
thereon in this report.
As a supplement and to the extent deemed relevant, the information on this expanded boundary may 
include significant events concerning other affiliated companies.
B3. Global boundary (Iberdrola Total)
This includes all of the activities carried out by the Group, its subsidiaries, and its affiliates.
The financial information included in this Sustainability Report 2014 is taken from the document entitled 
Annual Financial Statements, Management Report, and Audit Report for Financial Year 2014.
Other non-financial information, such as operating information of the Group, results from adding to 
the “expanded boundary” the information of affiliates consolidated by the equity method that are not 
considered significant for purposes of this report, as well as the information on the activities included in 
table B.1.2., which is included under the heading “Other”.
B4. Summary of the information boundaries by country
Following the GRI recommendation, the information in this report is structured by country. The table 
below shows the structure of information by country applied to the boundaries described above:
Structure of information by country in this report
Basic boundary = Iberdrola, S.A., subsidiaries, and affiliates 
consolidated in whole or in part.
Spain
United Kingdom
United States
Mexico 
Brazil
Other countries
Basic boundary 
Expanded boundary = basic boundary plus the affiliates 
considered significant for sustainability purposes, 
consolidated by the equity method in accordance with 
applicable laws and regulations.
Significant affiliates(1)
Basic boundary   
Global boundary = expanded boundary plus the “Other” not 
included in other boundaries.
Other 
Iberdrola Total 
(1) Nuclenor, S.A. activities and Neoenergia Group activities.

48   /   Part i. General standard disclosures
/   Sustainability Report 2014 
C. Limitations on scope of information
Based on the standards set forth above, Iberdrola believes that this report reflects the economic, 
environmental, and social performance of the Company in a reasonable and balanced manner. Existing 
limitations and differences, described in the preceding sections, have a limited influence on aggregate 
overall data, which, in the opinion of Iberdrola, would not affect a reader’s assessment of the Company’s 
performance.
In the future, quantitative information may be included with respect to other activities of subsidiaries or 
affiliates to the extent that such information contributes to an understanding of the activities carried out 
by Iberdrola.
D. Additional information
Iberdrola holds indirect interests in the following companies located in jurisdictions regarded as tax 
havens under the provisions of Royal Decree 1080/1991 of 5 July:
Registered name
Nationality
Activities
Damhead Creek  
Finance Limited
Cayman Islands
This wholly-owned subsidiary of ScottishPower (DCL) Limited was 
created to finance the Damhead Creek independent power project in 
England.
The winding-up of the company has been completed and it is currently 
being dissolved by the Cayman Islands Commercial Registry.
ScottishPower 
Insurance Limited
Isle of Man
This wholly-owned subsidiary of ScottishPower Investments Ltd. 
was created as an insurer of the ScottishPower Group. As of the 
date hereof, this company no longer insures the assets of the Group 
but is maintained with the expectation of potential claims regarding 
past insured activities which are being discontinued. The insurance 
department of ScottishPower is reviewing possible options for the 
disposal thereof.
The standards previously defined in this section regarding the application of corporate principles and 
policies also apply to the above entities, specifically, the Good Tax Practices Policy. Operations at these 
companies are carried out pursuant to applicable regulations, and in no event do such companies 
engage in tax evasion, money laundering, or the financing of unlawful activities. The same standard 
applies to other companies of the Group that may operate in other countries and which, though not 
covered by the above-mentioned Royal Decree, may be considered as tax havens by certain social 
organisations using different standards in this regard.

Part i. General standard disclosures   /   49
Sustainability Report 2014     /
G4-18 Process for defining the report content and the Aspect Boundaries and implementation of the GRI principles  
G4-19 Material Aspects identified 
G4-20 Aspect Boundary within the organisation 
G4-21 Aspect Boundary outside the organisation 
Iberdrola has been using GRI’s Sustainability Reporting Guidelines as a model for preparing its annual 
sustainability report since 2003.
According to GRI, these guidelines are the result of a process in which various stakeholders throughout 
the world have participated, with representatives from business, unions, civil society, the financial 
markets, auditors, and specialists from various disciplines in the business area, regulators, and 
governmental bodies from various countries.
Iberdrola is, in turn, a multinational company with a presence in countries on various continents and 
with diverse economic and social models, and in recent years it has developed systems and processes 
to obtain the information needed to meet requests in this regard both by GRI, with its recommendations, 
and by other areas with heightened awareness on sustainability issues, such as the Dow Jones 
Sustainability Index and the Carbon Disclosure Project.
Iberdrola therefore believes that the issues identified in the GRI guidelines and in the Electric Utilities 
Sector Supplement are based on the broad participation of corporate stakeholders and sufficiently meet 
the requirements of materiality to be included in its sustainability report, with no exclusions.
The report for financial year 2014 also maintains the information on the issues identified in the 
GRI guidelines, providing continuity to the information from prior financial years. These issues are 
specifically identified in Annex 1 to this report.
Iberdrola has also performed its own Materiality Analysis in order to identify specific issues of interest 
relating to the Company’s activities, which analysis was performed with the advice of an independent 
external firm.
In this analysis, carried out in financial year 2013 and considered valid for all purposes for financial year 
2014, nine issues have been identified as “necessary” based on the levels of maturity and significance of 
the issues of interest relating to the activities carried out by the Group, as shown in the table below:

50   /   Part i. General standard disclosures
/   Sustainability Report 2014 
Materiality Analysis of the IBERDROLA Group
Most significant material issues 
 
Electricity generation 
Renewable energy development
Price risk management
Climate change strategy
Business opportunities
Government relations / public policy / lobbying
Customer relations management
Local community impacts and benefits
Transmission and distribution
High 
IV
I
III
II
High 
Low
Low
Maturity    
Emerging
Urgent
Generalised    
Necessary
Significance

Part i. General standard disclosures   /   51
Sustainability Report 2014     /
The various sections of this report where a more specific response is given to these issues is indicated 
in the following table:
Most significant issues
Special interest topics
Iberdrola’s response
Electricity generation
Energy mix, energy efficiency, thermal 
efficiency, and nuclear energy.
Management Approach: “Demand-side 
Management” and “Decommissioning of 
Nuclear Plants”.
G4-2, G4-EU1, G4-EN5 through G4-EN7.
Renewable energy development
Investment in new energy generation 
sources. Integration within the energy 
mix. CO2 avoided and projected MW of 
renewable energy.
Management Approach: “ Availability and 
Reliability” and “System Efficiency”
G4-14, EU10, and G4-EN6.
Climate change strategy
Emissions reductions; emissions trading; 
carbon capture and storage; carbon 
footprint, etc.
Specific Management Approach to the 
Environmental Dimension
G4-EC2, G4-EN15 through G4-EN21. 
Business opportunities
Innovation and development; products 
favouring efficiency and energy savings; 
certified energy from renewable sources; 
development of electric vehicles; etc.
Management Approach: “Demand-
side Management” and “Research and 
Development”.
G4-EN6.
Price risk management
Energy and fossil fuels prices and taxes. 
Management Approach: “Costs of Supply”
Customer relations management
Management of customer satisfaction 
and improvements in billing systems. 
Programmes for improved access to 
electricity by vulnerable groups.
Management Approaches: “Product and 
Service Labelling”, “Customer Privacy”, 
“Access” and “Provision of Information”.
G4-PR3 and G4-PR5.
Relations with governments and 
activities with an influence on 
public policies
Constructive and transparent dialogue with 
local and national governments. Need for a 
stable regulatory framework. 
Management Approach: “Public Policy”
Impacts on and benefits for local 
communities
Social impact of Company’s operations. 
Dialogue with stakeholders on 
infrastructure development. Guarantee of 
universal access to energy.
Management Approaches: “Local 
Communities”, “Access” and “Iberdrola’s 
Contribution to the Community”
Transmission and distribution
Reliability of supply systems, energy 
efficiency, and development of smart grids. 
Management Approach: “Research and 
Development”
EU4 and EU12

52   /   Part i. General standard disclosures
/   Sustainability Report 2014 
Together with the global processes to identify and respond to material aspects, which Iberdrola 
strengthens in its public information, the Company has developed a methodology for direct dialogue 
with its stakeholders based on the AA1000 Assurance Standard, through the consultation and response 
processes described in indicator G4-27.
G4-22 Restatements of information provided in previous reports
Owing to legal requirements, Iberdrola has applied international financial reporting standard IFRS-11 to 
its financial information for financial years 2013 and 2014. It has been necessary to adopt the following 
decisions to give consistency both to the financial and the environmental and social information included 
in this report:
  To restate financial year 2013 applying the same standards applied to financial year 2014, to make the 
information of such financial years consistent and comparable. Along the same lines, it has not been 
deemed appropriate to restate financial year 2012, due to the little value it contributes to the public 
information process.
  To limit the information set forth in all the tables of this report to financial years 2013 and 2014. 
Continuing to show information on three financial years in the charts and tables, as has been Iberdrola’s 
customary practice, would have resulted in lack of consistency between the information for financial 
year 2012 and that for subsequent years. This limitation will be corrected in the next annual report.
  To adjust the information boundaries of this report to the aforementioned circumstances, so as to 
make it possible for the reader to cross-check the financial, environmental, and social information 
reliably. The process for definition of such boundaries is described in section G4-17 of this report.
G4-23 Significant changes in the report’s scope or aspect boundaries
During financial year 2014, there were no significant changes in the scope, boundary, or measurement 
methods applied in the report, such that the Group’s main indicators can still be compared to those from 
previous financial years, subject to the limitations described in the preceding section.

Part i. General standard disclosures     /   53
Sustainability Report 2014   /
4. 
Stakeholder 
engagement

54   /   Part i. General standard disclosures
/   Sustainability Report 2014 
G4-24 Stakeholder groups engaged by the organisation
Iberdrola’s strategic approach attaches significance to the Company’s relations with the groups that 
are affected by its activities (stakeholders) from a twofold standpoint: from the social responsibility 
standpoint, by responding to their expectations and needs, and from the reputational standpoint, by 
managing these stakeholders’ perceptions of the Company.
There are many stakeholders within a corporate group such as that of Iberdrola. For practical purposes, 
in order to provide information about them in a concise manner and considering their significance to the 
Company’s activities, eight large categories of stakeholders have been established:
  Workforce	
  Suppliers	
  Shareholders and financial community	   Media
  Regulatory entities	
  Society
  Customers	
  Environment
In order to properly manage the different issues that can arise with each stakeholder group, the 
businesses and corporate areas of the Group also identify such subgroups as they deem relevant for 
specific attention thereto.
G4-25 Basis for selection of stakeholders 
The identification and selection of Iberdrola Group stakeholders is carried out through processes 
of internal reflection conducted by the management team, and relationships are established with 
strategic stakeholders with a view to satisfying both their expectations and the needs of the Company. 
The various CSR and Reputation Committees within the Group review the significance of specific 
stakeholders, based on the characteristics of their own activities and on the impact that meeting or not 
meeting their expectations may have on the Company’s results.

Part i. General standard disclosures   /   55
Sustainability Report 2014     /
G4-26 Approaches to stakeholder engagement, including frequency of engagement  
by type and by stakeholder group 
The commitment to stakeholders is one of the significant components of corporate sustainability. At 
Iberdrola, policies, general strategies, and global CSR lines of action are defined at the corporate level 
and applied at all businesses and in all geographical areas where the Company operates. In particular, 
the Board of Directors approved a Stakeholder Relations Policy on 17 February 2015. The global lines 
of action of this policy conform to local needs by means of the required CSR programmes and projects, 
which are applied at the local level. This enables the Company to manage the impacts of Company 
actions on society as a whole more effectively, such that the balance is positive for communities, 
customers, employees, and other stakeholders.
Iberdrola has been applying the AA1000 Assurance Standard since 2006 in order to systematically and 
rigorously manage engagement with its stakeholders in accordance with the principles of inclusiveness, 
materiality, and responsiveness established in such standard, through a process that is subject to 
independent external assurance. The Company has been adjusting application of the AA1000 standard, 
both to the successive versions of the standard and to the expansion and organisational changes at 
Iberdrola.
The application of the AA1000 standard has a twofold approach at the Company:
  Global approach: applied at corporate areas.
  Local approach: applied at the businesses (Networks, Wholesale and Retail, Renewables, Engineering 
and Construction).
Iberdrola structures the process of relations with its stakeholders through the following stages:
  Establishment of communication channels with each stakeholder group.
  Appointment of persons responsible for the organisation of the channels.
  Identification of the most significant matters detected in each channel.
  Drafting a Company response to the significant matters detected.
The communication channels established have their own specific characteristics as to format, 
responsibilities, depth of the relationship, and frequency of use, from the channels that are continuously 
available, such as mailboxes and portals, to those used on an annual or multi-annual basis, such as 
surveys, to other non-periodic channels, all of which, as a whole, help make up what the Company 
considers to be a close relationship with its stakeholders.
Iberdrola’s most significant pathways for dialogue with these groups are summarised in the following 
table:

56   /   Part i. General standard disclosures
/   Sustainability Report 2014 
Stakeholder
Significant pathways for dialogue and 
communication
Other pathways for dialogue
Workforce
Mixed subcommittees or committees with 
the participation of workers; employee 
surveys; Global Employee Office; worker 
suggestion boxes.
Meetings with the chairman; specific 
meetings; internal magazines; intranet.
Shareholders and financial 
community
Personal contact with investors in fixed-
income securities and equities, contact with 
shareholders, and office of the shareholder.
Periodic bulletins; corporate website; 
specific phone and e-mail service; 
information micro site and specific channel 
for shareholders on the website (OLS); 
Shareholders’ Club; IPhone, IPad, and 
Android apps for investors.
Regulatory entities
Consultation, official formalities, and 
meetings with various EC regulatory bodies, 
national, regional, and local levels.
Relationship through industry organisations 
and direct contact.
Customers
Onsite and remote channels for direct 
customer relations; systems for complaints 
and claims; customer satisfaction surveys 
at the engineering and construction 
subsidiary.
Relationship channels with consumers’ 
associations, consumer institutions, and 
municipal consumer information offices 
(OMICs); various types of customer 
sales contacts at the engineering and 
construction subsidiary.
Suppliers
Supplier portal on the corporate website, 
Supplier Service Centre, and supplier 
satisfaction surveys.
Supplier registration and classification 
processes; conferences with business 
organisations; meetings with suppliers; web 
mailbox; supplier improvement campaigns.
Media
Press releases; individual and group 
meetings; query mailbox on the website; 
communication channels on social 
networks.
Multimedia channel on the corporate 
website.
Society
Direct relationships with national, regional, 
and local government authorities; 
participation in business confederations 
and chambers of commerce; relationships 
with social organisations.
Projects of collaboration with social 
organisations; participation in forums, 
seminars, and conferences; direct relations 
with environmental and social groups in the 
areas of power plants and wind farms.
Environment
Specific mailbox on the corporate website; 
climate change website; social networks 
providing environmental information; 
supplier survey.
Environmental impact assessment 
processes; European Commission 
consultations and other public 
consultations; collaboration projects; 
various types of meetings and contacts.

Part i. General standard disclosures   /   57
Sustainability Report 2014     /
G4-27 Key topics and concerns that have been raised through stakeholder engagement 
The process of managing the pathways for dialogue described in the preceding section means that, 
following the assessment of the information received, the issues that are most important for the various 
stakeholders are identified. Such issues are reviewed by the internal organisations involved, and a 
response is generated by the Company that seeks to improve the satisfaction of such stakeholders in 
connection with the matters in question. Iberdrola believes that its responses, as a whole, provide a 
proper and acceptable balance for its stakeholders. 
The table below presents the most significant issues raised during financial year 2014 and a summary of 
the Company’s responses:

58   /   Part i. General standard disclosures
/   Sustainability Report 2014 
Stakeholder
Main issues raised by each group
Iberdrola’s response
Workforce
Labour conditions generally
Health and safety conditions
Training offered to employees
Management approaches set forth in 
the “Labour practices and work ethics” 
chapter, G4-LA5 through G4-LA11. G4-
LA13, G4-LA16. 
Shareholders and financial 
community
Financial and economic situation of the 
Company
Dividends of the Company
Participation at the General 
Shareholders’ Meeting
Management approach: “Economic 
performance”, G4-1, G4-2, G4-9, G4-
EC1, “Corporate governance model” 
chapter of the Integrated Report.
Regulatory entities
Safety of supply
Economic aspects of supply
Environmental sustainability
Management approach: “Public 
policies”. G4-1, G4-2. “Regulatory 
environment” chapter of the Integrated 
Report.
Customers
Issues relating to collection and billing 
process
Process for handling customer 
suggestions and complaints
Issues relating to rates
Management approach: “Access (to 
electric power)”, G4-PR4, G4-PR7 
through G4-PR9. “Customers” specific 
web page on the corporate website.
Suppliers
Responsible management of 
procurement
Relationship of Procurement Area with 
suppliers
Promotion of CSR and Reputation 
issues at the Group level
G4-12, G4-EC9, G4-EN32 and 33, G4-
LA14 and 15, G4-HR10 and 11, G4-SO9 
and 10. Procurement Portal on the 
corporate website.
Media
Issues relating to regulation
Company strategy and positioning
Issues relating to consumption and  
social action
Management approaches: “Public 
policies”, “Iberdrola’s contribution to the 
community”, and “Customer health and 
safety”. G4-1, G4-2.
Society
Regulatory, innovation, and environment 
issues
Compliance with, and handling of, 
environmental requirements
Iberdrola’s contribution to the 
community
Management approaches: “Research 
and development”, “Public policies”, 
“Iberdrola’s contribution to the 
community”, and those relating to the 
Environmental Dimension.
Environment
Climate change
Biodiversity
Energy efficiency
Management approaches: “System 
efficiency” and “Biodiversity”. G4-14, 
G4-EC2, EU11, EU12, EU13, G4-EN11 
through G4-EN14.

Part i. General standard disclosures   /   59
Sustainability Report 2014     /
Iberdrola prepares an annual AA1000 Compliance Report, which summarises the results obtained 
through the aforementioned channels with respect to the issues raised by each stakeholder and the type 
of response provided by the Company.
The methodology described in the preceding sections (G4-24 through G4-27) enables the Company 
to identify material issues through direct sources. Such review is completed with that made through 
indirect sources, such as the Dow Jones Sustainability Index, the Carbon Disclosure Project, the 
Materiality Analysis, etc., described in indicators G4-18 through G4-21.
Considering all the methods described above, Iberdrola believes it has a robust stakeholder 
management system, which allows it to respond both directly through the channels of dialogue with 
its stakeholders, and indirectly through various public information formats, such as this report, the 
Integrated Report, or the corporate website.

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/   Sustainability Report 2014 
5. 
Report 
profile

Part i. General standard disclosures   /   61
Sustainability Report 2014     /
G4-28 Reporting period
2014
G4-29 Date of previous report 
2013
G4-30 Reporting cycle
Annual
G4-31 Contact point for questions regarding the report 
General questions regarding this report may be addressed to Iberdrola’s Communication Division at C/ 
Tomás Redondo, 1 - 28033 Madrid – Spain, or via comunicacion@Iberdrola.es.
Specific questions relating to the environment may be addressed to Iberdrola’s Innovation, Quality, and 
Environment Division at C/ Tomás Redondo, 1 - 28033 Madrid – Spain, or via medioambiente@Iberdrola.
es.
The addresses and telephone numbers of the various Iberdrola centres worldwide can be found under 
“Contact” at www.iberdrola.com. 
GRI Content Index 
G4-32 GRI Index with respect to the ‘in accordance’ option chosen
This report has been prepared in accordance with the GRI “comprehensive” option. Due to its length, the 
GRI content index is located in Annex 1 to this Report.
G4-33 External assurance for the report 
Iberdrola subjects its annual information, including the annual accounts and management reports (both 
individual and consolidated with those of its subsidiaries), to external independent assurance by Ernst & 
Young, and likewise has the sustainability report verified by KPMG. Annex 4 hereto includes the external 
independent assurance report

62   /   Parte 1. Contenidos generales
/   Sustainability Report 2014 
6. 
Governance

Part i. General standard disclosures   /   63
Sustainability Report 2014     /
Structure and composition of governance
G4-34 Governance structure
Board of Directors
Position
Director
Status
Date of Last 
Appointment
Ending Date
Chairman & CEO
Mr José Ignacio Sánchez Galán
Executive
26-03-2010
26-03-2015
Director
Mr Xabier de Irala Estévez
Proprietary(1)
22-06-2012
22-06-2016
Director
Mr Íñigo Víctor de Oriol Ibarra
Independent
22-06-2012
22-06-2016
Director
Ms Inés Macho Stadler
Independent(2)
22-06-2012
22-06-2016
Director
Mr Braulio Medel Cámara
Independent
22-06-2012
22-06-2016
Director
Ms Samantha Barber
Independent
22-06-2012
22-06-2016
Director
Ms María Helena Antolín Raybaud
Independent
26-03-2010
26-03-2015
Director
Mr Santiago Martínez Lage
Independent
26-03-2010
26-03-2015
Director
Mr José Luis San Pedro 
Guerenabarrena
Other external
22-06-2012
26-03-2015
Director
Mr Ángel Jesús Acebes Paniagua
Independent
22-06-2012
26-03-2015
Director
Ms Georgina Kessel Martínez
Independent
28-03-2014
28-03-2018
Director
Ms Denise Mary Holt
Independent
24-06-2014
27-03-2015
Director
Mr José W. Fernández
Independent
17-02-2015
27-03-2015
Director
Mr Manuel Moreu Munaiz
Other external
17-02-2015
27-03-2015
Secretary (non-member): Mr Julián Martínez-Simancas Sánchez.
Counsel (non-member): Mr Rafael Mateu de Ros Cerezo. 
(1) Mr Xabier de Irala Estévez was appointed at the proposal of Bilbao Bizkaia Kutxa (BBK) (now, Kutxabank, S.A.).
(2) Ms Inés Macho Stadler is lead independent director (consejera coordinadora).

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Executive Committee
The Executive Committee has all the powers inherent to the Board of Directors, except for those powers 
that may not be delegated pursuant to legal or by-law restrictions.
The core activities of this Committee consist of submitting proposals and reports to the Board of 
Directors regarding all those strategic decisions, investments, and divestitures that are significant for 
the Company or its Group, assessing their alignment with the budget and the strategic plans of the 
Company, and analysing and monitoring business risks, taking into consideration the environmental and 
social aspects thereof. 
Executive Committee
Position
Director
Status
Chair
Mr José Ignacio Sánchez Galán
Executive
Member
Mr Xabier de Irala Estévez
Proprietary
Member
Ms Inés Macho Stadler
Independent
Member
Mr José Luis San Pedro Guerenabarrena
External
Member
Mr Ángel Jesús Acebes Paniagua
Independent
Secretary (non-member): Mr Julián Martínez-Simancas Sánchez.
Audit and Risk Supervision Committee
This is a permanent internal informational and consultative body within the Board of Directors, without 
executive powers, with informational, advisory, and proposal-making powers within its scope of 
activity. It carries out duties relating to the supervision of the internal audit function, namely, review of 
the internal control and risk monitoring systems, the process of preparing the economic and financial 
information, auditing of accounts, and compliance, all upon the terms established in its regulations, 
available at www.iberdrola.com.
Audit and Risk Supervision Committee
Position
Director
Status
Chair
Ms Georgina Kessel Martínez
Independent
Member
Mr José W. Fernández
Independent
Member
Ms Denise Mary Holt
Independent
Secretary (non-member): Mr Rafael Sebastián Quetglas.

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Appointments and Remuneration Committee
This is a permanent internal informational and consultative body within the Board of Directors, without 
executive powers, with informational, advisory, and proposal-making powers in connection with the 
selection, appointment, re-election, removal, and remuneration of the Company’s directors and senior 
officers upon the terms established in its regulations, available at www.iberdrola.com. 
Appointments and Remuneration Committee
Position
Director
Status
Chair
Ms Inés Macho Stadler
Independent
Member
Mr Iñigo Víctor de Oriol Ibarra
Independent
Member
Mr Santiago Martínez Lage 
Independent
Secretary (non-member): Mr Rafael Mateu de Ros Cerezo
Corporate Social Responsibility Committee
This is a permanent informational and consultative body created by the Board of Directors, without 
executive duties, with powers in the areas of revision and update of the Corporate Governance System 
and supervision of the social responsibility, sustainability, and reputation policies, upon the terms 
established in its regulations, available at www.iberdrola.com.
Corporate Social Responsibility Committee
Position
Director
Status
Chair
Ms Samantha Barber
Independent
Member
Mr Braulio Medel Cámara
Independent
Member
Ms María Helena Antolín Raybaud
Independent
Secretary (non-member): Mr Fernando Bautista Sagüés

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G4-35 Delegation of authority from highest governance body to senior executives and other employees
The Executive Committee and the chairman & chief executive officer have all the powers of the Board of 
Directors, except for those powers that may not be delegated pursuant to legal or by-law restrictions. In 
addition, the Company has a structure of executives and authorised employees to implement its strategy 
and basic management guidelines, with powers provided under two operating principles: one, the 
principle of joint action, which governs all powers that are of a decision-making or organisational nature, 
and the other, the principle of severability, which governs the exercise of powers of mere representation.
G4-36 Executive-level positions with responsibility for economic, social, and environmental topics
The Company’s organisation has various divisions, the responsibilities of which are as follows: the 
Finance and Resources Area is responsible for financial matters; both the aforementioned area and 
the Office of the General Secretary and Secretary of the Board of Directors are responsible for social 
matters, and the Chairman’s Office is responsible for environmental matters. 
The heads of these divisions form part of the Operating Committee, which is chaired by the chairman & 
chief executive officer, thus assuring that information is provided directly to the Board of Directors. Apart 
from the foregoing, the highest-level persons responsible for these divisions appear before the Board of 
Directors when it so requests.
G4-37 Processes for consultation between stakeholders and the Board of Directors
Iberdrola has published a Shareholder Engagement Policy in order to establish a permanent dialogue 
with its shareholders.
As provided by article 3 of the General Corporate Governance Policy, in order to encourage the 
informed and responsible participation of the shareholders at the General Shareholders’ Meeting, 
the shareholders are provided access to a Shareholder’s Guide, a disclosure document intended to 
encourage participation at the General Shareholders’ Meeting, and Rules of Implementation for the 
Management of the General Shareholders’ Meeting that standardise, further develop, adapt, and make 
more specific the provisions of the Company’s Corporate Governance System concerning the exercise 
of shareholders’ rights in connection with the holding of the General Shareholders’ Meeting.
As provided by applicable law, an Electronic Shareholders’ Forum is made available on the corporate 
website at the time of the call to the General Shareholders’ Meeting. 
Iberdrola also asks a specialised external firm to review the procedures followed with respect to the 
holding of the General Shareholders’ Meeting, including the processing of absentee votes and of proxy-
voting and the counting of votes on proposed resolutions, in order to safeguard shareholders’ rights and 
guarantee transparency. The firm Deloitte Advisory, S.L. was in charge of this review at the 2014 General 
Shareholders’ Meeting.

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As from the date of publication of the call to the General Shareholders’ Meeting, such information as is 
deemed necessary for the informed attendance of the shareholders at the meeting is made available to 
them at www.iberdrola.com, both in Spanish and in English.
From the date of publication of the call to the General Shareholders’ Meeting through and including the 
fifth day prior to the date set for the meeting to be held on first call, the shareholders may request in 
writing the information or clarifications that they deem are required, or ask the written questions they 
deem relevant, regarding the matters contained in the agenda for the meeting. In addition, upon the 
same prior notice and in the same manner, the shareholders may request information or clarifications 
or ask written questions regarding the information accessible to the public that has been provided 
by the Company to the National Securities Market Commission since the holding of the last General 
Shareholders’ Meeting, as well as the auditor’s reports on the annual financial statements and individual 
management reports of the Company and those consolidated with its subsidiaries as of the last financial 
year-end. 
The Company also has several specific channels of communication for providing information to 
shareholders and investors, including the following:
a) The Shareholders’ Office (Oficina del Accionista). From the call to the General Shareholders’ Meeting 
through the end thereof, the shareholders can rely on the support of the Shareholders’ Office, which 
has a specific site for such purpose at the premises of the meeting in order to resolve any issues that 
the attendees may raise prior to the commencement of the meeting, as well as to serve and provide 
information to the shareholders who wish to use the floor.
Furthermore, the Shareholders’ Office is in contact with those shareholders who have voluntarily entered 
their names in its database, and provides a specific service to minority shareholders for the organisation 
of presentations and events prior to the General Shareholders’ Meeting.
b) The Shareholders’ Club (Club del Accionista). This is an open and permanent communication channel 
of the Company with the financial community and shareholders who voluntarily join such Club and are 
interested in monitoring the evolution of the Company on an ongoing basis.
c) The Investor Relations Office (Oficina de Relaciones con Inversores). This responds on a regular and 
personalised basis to the questions of analysts and institutional and qualified investors in equities, fixed-
income securities, and socially responsible investments.
The corporate website has activated an interactive system (OLS - On Line Shareholders) that allows 
shareholders (who may access the system with their user name and password) to ask questions either 
publicly or confidentially, access frequently asked questions regarding various issues, and, with respect 
to the General Shareholders’ Meeting, solicit information or clarifications or ask questions regarding the 
items on the agenda, as well as to watch the live proceedings.
Moreover, various channels and tools are available to Iberdrola’s employees in order for them to contact 
and communicate with corporate governance bodies of the Company. These include the meetings that 
Iberdrola’s chairman & CEO holds with employees throughout the world, whether face-to-face or via the 
internet, at which all employees are able to ask their questions and/or make suggestions, and to which 
an immediate response is provided. Additionally, the employees hold meetings with their superiors in 
order to address all kinds of matters relating to the Iberdrola Group.

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As a supplement to the foregoing, there is a direct channel by which the workers’ representatives, 
through the committees specified in the collective bargaining agreements, can bring their petitions, 
suggestions, and needs to the attention of the managing bodies in connection with various issues 
relating to the Group’s labour relations.
In line with the recommendations set out in the Unified Good Governance Code and with leading 
international best practices, Iberdrola provides its employees a channel of communication with the Audit 
and Risk Supervision Committee allowing for the confidential reporting of possible irregular conduct in 
the financial and accounting areas that might that be significant, as well as an Employee Ethics Mailbox 
(Buzón ético) to communicate conduct that may entail a violation of the Code of Ethics.
The Board of Directors has a Corporate Social Responsibility Committee, the composition and 
duties of which are described in section G4-34. Its powers include the power to “Review and analyse 
the expectations of stakeholders and ensure that they are taken into account in formulating Social 
Responsibility Policies”.
This Committee has various tools to carry out its duties to review, analyse, and advise on this issue, 
including the power to access any information or documents of the Company relating to this matter and 
the power to access the cooperation or advice of outside professionals.
The Integrated Activities Report of the Committees of the Board of Directors 2014, available at www.
iberdrola.com, identifies the reports prepared by these committees and the appearances requested 
thereby during the financial year: 
  through internal appearances, the committee reviews the relations of the various organisations with 
their stakeholders through the implementation of the AA1000 Assurance Standard, described in indicator 
G4-26 of this report.
  through external appearances, the committee has the opportunity to understand the viewpoints of 
outside organisations and experts with respect to the Company’s economic, environmental, social, and 
corporate governance performance.
G4-38 Composition of the highest governance body
As stated in section G4-34, the Board of Directors has fourteen members, one of whom is executive, 
one proprietary, two assigned to the category of other external, and the other ten independent. Within 
this last category, five are women, one of whom, Ms Inés Macho Stadler, is lead independent director 
(consejera coordinadora) and chair of the Appointments and Remuneration Committee. In addition, Ms 
Samantha Barber and Ms Georgina Kessel Martínez are the chairs of the Corporate Social Responsibility 
Committee and the Audit and Risk Supervision Committee, respectively.
This section also breaks down the composition of the consultative committees of the Board of Directors: 
the Audit and Risk Supervision Committee, the Appointments and Remuneration Committee, and the 
Corporate Social Responsibility Committee.

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G4-39 State whether the chair of the highest governance body is also an executive officer and the reasons for this 
arrangement
The chairman of the Board of Directors is also the chief executive of Iberdrola. He has been granted by 
delegation all the powers of the Board of Directors, except for those powers that may not be delegated 
pursuant to legal or by-law restrictions. Item seven of the agenda for the General Shareholders’ Meeting 
to be held on 27 March 2015 sets forth the proposal for his re-election. Such proposal is supported by a 
specific report prepared by the Board of Directors in support thereof, as well as by a report prepared by 
an independent expert of international renown.
Iberdrola has a decentralised management model as provided in the General Corporate Governance 
Policy (available at www.iberdrola.com), which clearly defines the duties of supervision and management 
within the Group.
At Iberdrola, the chairman of the Board of Directors has executive status, which circumstance is 
specifically assessed by the Appointments and Remuneration Committee and by the Board of Directors 
when evaluating his performance. While not a sine qua non requirement, this is of unquestionable benefit 
to the Company, as has been amply demonstrated by the good performance of the Iberdrola Group and 
its achievements in recent years, and as shown in the annual assessment of the chairman’s performance 
of his duties by an independent external firm since 2010.
Moreover, the Company has implemented a system of checks and balances to ensure that the bodies 
delegated with executive powers are under the effective supervision of the Board of Directors, as 
described in section C.1.22 of the Annual Corporate Governance Report 2014. 
In particular, it should be noted that the Regulations of the Board of Directors significantly strengthen 
the powers of the lead independent director (consejero coordinador), beyond those provided by law.
In this regard, on 17 February 2015, at the proposal of the Appointments and Remuneration Committee, 
the Board of Directors resolved to ratify the appointment of Ms Inés Macho Stadler as lead independent 
director. Ms Inés Macho Stadler is also a member of the Executive Committee.
G4-40 Selection and nomination of the members of the highest governance body 
The appointment, re-election, and separation of directors is the purview of the shareholders at the 
General Shareholders’ Meeting.
Vacancies that occur may be filled by the Board of Directors on an interim basis until the next General 
Shareholders’ Meeting, whereat the shareholders shall confirm the appointments or elect the persons 
who should replace directors who are not ratified, or it shall withdraw the vacant positions.
The Appointments and Remuneration Committee advises the Board of Directors regarding the most 
appropriate configuration thereof and of its committees as regards size and balance among the various 
classes of directors existing at any time. For such purpose, the Committee will review the structure of 
the Board of Directors and of its committees on a regular basis, particularly when vacancies occur within 
such bodies.

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In any event, the Board of Directors, and the Appointments and Remuneration Committee within the 
scope of its powers, shall endeavour to ensure that the candidates submitted to the shareholders at 
a General Shareholders’ Meeting for appointment or re-election as directors, as well as the directors 
appointed directly to fill vacancies in the exercise of the power of the Board of Directors to make interim 
appointments, are respectable and qualified persons, widely recognised for their expertise, competence, 
experience, qualifications, training, availability, and commitment to their duties, while at the same time 
endeavouring to ensure gender diversity in the composition of the Board of Directors. 
When the Board of Directors deviates from the proposals and reports of the Appointments and 
Remuneration Committee, it shall give reasons for so acting and shall record such reasons in the 
minutes.
G4-41 Processes for avoiding conflicts of interest within the highest governance body
The Regulations of the Board of Directors provide that having interests in any way opposed to those 
of the Company constitutes a ground of incompatibility for appointment as director and, if applicable, 
triggers the director’s obligation to resign. They also provide that competence to hold office is a 
requirement to be appointed as director of the Company, and expressly prescribe that directors must 
resign when their continuance in office may, due to their lack of competence, jeopardise, directly, 
indirectly, or through their related persons, the faithful and diligent performance of their duties in 
furtherance of the corporate interest, which is understood as the common interest of all shareholders 
of an independent company, oriented towards the accomplishment of its object, in accordance with 
the provisions of applicable law and the Corporate Governance System of Iberdrola. The Board of 
Directors may request a director subject to any circumstance of incompatibility to resign from office 
and, if applicable, may propose the director’s removal from office to the shareholders at a General 
Shareholders’ Meeting. 
For such purposes, the aforementioned Regulations provide that it shall be deemed that a director 
lacks or, if applicable, has ceased to possess, the competence required to hold office when there is 
a structural and permanent situation of conflict between the director (or a person related thereto or, 
in the case of a proprietary director, between the shareholder or shareholders that proposed or made 
the director’s appointment, or persons directly or indirectly related thereto) and the Company or the 
companies forming part of the Group.
Independently of the foregoing, the Regulations of the Board of Directors also regulate the specific 
conflict of interest situations that might affect the directors and persons related thereto that involve 
a direct or indirect conflict of their personal interest or that of their related person with that of the 
Company or the companies within its Group. As provided therein, the directors must give notice of 
conflicts of interest in which they are involved and must abstain during the deliberations and voting 
on the matter in question. Section D.6 of the Annual Corporate Governance Report 2014 describes the 
mechanisms used to detect, determine, and resolve potential conflicts of interest between Iberdrola and 
its directors, officers, and significant shareholders.

Part i. General standard disclosures   /   71
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For its part, the first section of article 42 of the Regulations of the Board of Directors provides that “any 
transaction by the Company or the companies forming part of its Group with directors, with shareholders 
that own a shareholding interest that is equal to or greater than that legally regarded as significant at 
any time or that have proposed the appointment of any of the directors of the Company, or with the 
respective related persons, shall be subject to the approval of the Board of Directors, or in urgent cases, 
of the Executive Committee, following a report from the Appointments and Remuneration Committee. 
In the event that authorisation has been granted by the Executive Committee due to the urgency of the 
matter, the Executive Committee shall give notice thereof to the Board of Directors at its next meeting in 
order for it to be ratified.”
In addition, the second section of such article provides that “the Board of Directors, through the 
Appointments and Remuneration Committee, shall ensure that transactions between the Company or 
the companies forming part of its Group and the directors, the shareholders mentioned in the preceding 
section, or the respective related persons are carried out under arm’s length conditions and with due 
observance of the principle of equal treatment of shareholders in the same situation.”
Highest governance body’s role in implementing the vision, values, and strategy 
G4-42 Highest governance body’s and senior executives’ roles in the development, approval, and updating of the 
organisation’s vision, mission, values, strategies, policies, and goals 
The corporate and governance structure of the Company and of the Group, which form an essential part 
of the Company’s Corporate Governance System, is defined on the grounds described below, which duly 
differentiate between the duties of day-to-day administration and effective management, on the one 
hand, and those of supervision and control, on the other:
a) Attribution to Iberdrola, S.A. and, in particular, to its Board of Directors, of the duties relating to 
establishing the Group’s policies and strategies and the basic guidelines for the management thereof, 
as well as general supervision of the development of such policies, strategies, and guidelines, and of 
decisions on matters of strategic importance at the Group level.
b) Assumption by the chairman of the Board of Directors & chief executive officer, with the technical 
support of the Operating Committee, and by the rest of the management team of the duty of organisation 
and strategic coordination within the Group through the dissemination, implementation, and monitoring 
of the general strategy and basic management guidelines established by the Board of Directors.
c) The function of organisation and strategic coordination is also articulated through country subholding 
companies. Such entities group together equity stakes in the head of business companies carrying out 
their activities within the various countries in which the Group operates, and centralise the provision 
of services common to such companies, always in accordance with the provisions of applicable law 
and especially the legal provisions regarding the separation of regulated activities. Country subholding 
companies have boards of directors that include independent directors and their own audit committees, 
internal audit areas, and compliance units or divisions.

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Country subholding companies are responsible for disseminating, implementing, and ensuring 
compliance with the policies, strategies, and general guidelines of the Group in each of the countries in 
which it operates, taking into account the characteristics and unique aspects of such countries. In this 
regard, country subholding companies facilitate the coordination of the companies in which they hold 
interests, while observing the laws and regulations concerning the separation of regulated activities.
d) Assumption of decentralised executive responsibilities by the head of business companies of the 
Group. Such companies are in charge of the day-to-day and effective management of each business, as 
well as of day-to-day control. The head of business companies are organised through their respective 
boards of directors, which include independent directors, where appropriate, and their own management 
bodies; they may also have their own audit committees, internal audit areas, and compliance units or 
divisions.
This corporate and governance structure of the Group operates jointly with the Group’s business model, 
which entails a global integration of the businesses and is focused on maximising the operational 
efficiency of the various business units and assures the dissemination, implementation, and monitoring 
of the general strategy and basic management guidelines for each of the businesses, mainly through 
the exchange of best practices among the various companies of the Group and without reducing the 
decision-making autonomy of each of them.
The Operating Committee is an internal committee of the Company within the Group’s corporate and 
governance structure, which provides a level of technical, information, and management support for 
the definition, supervision, organisation, and monitoring of general management guidelines as well as 
for the strategic planning of the businesses managed by the Group’s head of business companies, in 
accordance with the Group’s business model.
The organisational model is structured into the decentralised business units and the centralised 
corporate governance and control functions, which can be viewed at www.iberdrola.com.

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Powers of the highest governance body and evaluation of its performance
G4-43 Highest governance body’s knowledge of economic, environmental, and social topics 
 
Section 14 of the General Corporate Governance Policy provides that “The Company has a programme 
to provide directors with information and updates in response to the need for professionalisation, 
diversification, and qualification of the Board of Directors. 
Furthermore, in order to improve their knowledge of the Group, presentations are made to the directors 
regarding the businesses of the Group. In addition, a portion of each meeting of the Board of Directors 
tends to be dedicated to a presentation on financial, legal, or socio-political issues of significance to the 
Group.
The directors have access to a specific application, the directors’ website, which facilitates the 
performance of their duties and the exercise of their right to receive information. Such information as 
is deemed appropriate for the preparation of meetings of the Board of Directors and the committees 
thereof in accordance with the agenda, as well as materials relating to the director training programmes 
and the presentations made to the Board of Directors, is posted on such website.
In addition, once approved, the minutes of meetings of the Board of Directors and of the committees 
thereof, or an abstract or summary thereof, are posted on the directors’ website.
On an annual basis, the Board of Directors evaluates its operation and the quality of its work, the 
performance by the chairman of the Board of Directors & chief executive officer of his work, and the 
operation of the committees. The Board of Directors is assisted by a prestigious independent firm for 
these purposes.”
In order to facilitate the directors’ discharge of their duties, the following initiatives have been 
implemented: 
  The approval by the Board of Directors of the Directors’ Code of Ethics of Iberdrola, which provides 
the directors with an overall view of the rights and duties inherent in their position and is continuously 
updated.
  The directors’ website, on which the call to, and the documents for preparation of, each meeting of the 
Board of Directors are published.
  The development of an information programme for the directors of Iberdrola pursuant to the provisions 
of the Regulations of the Board of Directors, which seeks to achieve the ongoing update of directors 
and consists of presentations, informational notes, and posts that are included in the directors’ website 
regarding matters of interest to the directors of the Company, issues of general interest, and specific 
information on corporate governance and corporate social responsibility.
  The holding of informational meetings led by officers and employees of the Group, at which 
information is provided regarding activities related to the various business and corporate areas of the 
Company, as well as training presentations delivered by well-known professionals from outside the 
Company, at which the directors receive information on matters of topical interest.

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G4-44 Highest governance body’s performance 
The Regulations of the Board of Directors provide that the Board shall annually evaluate: its operation 
and the quality of its work; the performance of duties by the chairman of the Board of Directors 
and by the chief executive officer, based on the report submitted thereto by the Appointments and 
Remuneration Committee; and the operation of its committees, in view of the report submitted thereto 
by such committees. For such purpose, the chairman of the Board of Directors shall organise and 
coordinate the aforementioned evaluation process with the chair of each committee.
The Company has drawn on the cooperation of PricewaterhouseCoopers Asesores de Negocio, S.L. to 
perform the evaluation of financial year 2014. The evaluation process is structured in two phases: a first 
phase during which information is obtained from the directors; and a second phase during which such 
information is analysed and conclusions are drawn, in order to identify potential areas for improvement 
and implement specific measures that may help to further improve Iberdrola’s Corporate Governance 
System.
The Board of Directors completed this evaluation process for financial year 2014 through the adoption of 
the corresponding resolution at its meeting of 17 February 2015.
Highest governance body’s role in risk management
G4-45 Procedures of the highest governance body to supervise the identification and management of economic, 
environmental, and social performance, as well as its role in the implementation of due diligence processes and in 
stakeholder consultations
The Board of Directors of Iberdrola is structured as described in section G4-34 of this report, with 
monitoring duties being carried out by the consultative committees thereof that supervise the economic, 
social, and environmental performance of the Company. Such duties include both the supervision of 
the risks and opportunities associated with the Group’s activities and compliance with international 
principles, codes, and standards applicable to high-responsibility tasks. The Board of Directors and its 
consultative committees perform periodic evaluations of the aforementioned aspects of performance, 
drawing for such purpose on external information of interest thereto, with the assistance of external 
independent advisers, and on information provided to them by the rest of the organisation itself, 
primarily through periodic appearances of the Group’s executives at committee meetings.
The Audit and Risk Supervision Committee, the Appointments and Remuneration Committee, and the 
Corporate Social Responsibility Committee have prepared an Integrated Activities Report for financial 
year 2014, available at www.iberdrola.com.

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G4-46 Highest governance body’s role in reviewing the effectiveness of the management of economic, 
environmental, and social risks and opportunities 
G4-47 Frequency of the highest governance body’s review of economic, environmental, and social impacts, risks, 
and opportunities 
These roles are described in Section E - “Risk Control and Management Systems” of the Corporate 
Governance Report 2014, and risks are reviewed at least quarterly.
Highest governance body’s role in preparing the Sustainability Report
G4-48 Highest body that reviews and approves the report
The Board of Directors of Iberdrola is the body responsible for reviewing the Sustainability Report 
2014, which was approved by the Board of Directors on 17 February 2015, the date of preparation of the 
Company’s annual accounts. 
Highest governance body’s role in evaluating economic, environmental and social performance
G4-49 Process for communicating critical concerns to the highest governance body  
G4-50 Critical concerns communicated to the highest governance body
The highest-level persons in charge of the various business divisions and corporate divisions have a 
presence on the Operating Committee referred to in section G4-42 of this report. It is chaired by the 
chairman & chief executive officer, who reports in turn to the Board of Directors. 
The critical concerns reported to and considered by the Board of Directors are principally:
  Preparation of accounts and proposed allocation of profits/losses.
  Periodic public information.
  Budgets and definition of objectives.
  Significant investments and divestments.
  Grant of powers of attorney.
  Remuneration of the Board of Directors and senior management.
  Approval of various annual reports.
  Call to the General Shareholders’ Meeting, formulation of proposed resolutions, and the corresponding 
reports of the directors.
  Update of corporate policies.
  Evaluation of the Board of Directors.

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  Approval of risk limits and indicators.
  Implementation of increases and reductions in capital approved by the shareholders at the General 
Shareholders’ Meeting.
  Financial transactions (debt and equity).
  Interim appointment of directors.
  Hiring of the Auditor.
Remuneration and incentives
G4-51 Remuneration policies for the highest governance body and senior executives, as well as the relationship to 
economic, environmental, and social performance
The Annual Director Remuneration Report 2014, which includes an explanation of the Director 
Remuneration Policy, individually describes the remuneration received by each director. The current 
version of the Director Remuneration Policy approved by Iberdrola is available at www.iberdrola.com. 
This policy implements, among other things, the structure for the remuneration of the directors for their 
activities as such and the structure of the executive directors’ remuneration for the performance of their 
executive duties, based on a series of parameters that are in line with the standard remuneration for 
companies in the industry. This report was submitted to a consultative vote of the shareholders at the 
General Shareholders’ Meeting held on 28 March 2014, and was approved with only 1.37% of the shares 
represented in person and by proxy voting against.
The Director Remuneration Policy and the Senior Officer Remuneration Policy seek to comply with the 
good governance recommendations generally recognised in the international markets on remuneration 
issues. In particular, the remuneration policy for the executive directors and the senior officers includes 
a significant variable component linked mainly to the performance of the Company with respect to 
certain specific and pre-established economic/financial, industrial, and operational parameters that 
are quantifiable and aligned with the strategic goals of the Company and the Group for the purpose of 
retaining and motivating the executive directors and for the creation of long-term value. Weight is also to 
be given to goals in the areas of corporate governance and corporate social responsibility, as well as to 
the individual performance of the executive directors. 
As regards aspects relating to the Company’s economic, environmental, and social performance, 
variable remuneration for the management team of the Iberdrola Group takes into account variable 
parameters linked to financial as well as environmental and social aspects.

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G4-52 Process for determining the remuneration of the highest governance body and senior executives, stating 
whether independent consultants are involved
As provided in the By-Laws and the Regulations of the Board of Directors of Iberdrola, the Board of 
Directors, at the proposal of the Appointments and Remuneration Committee, is the body with power to 
set the remuneration of directors, except for such remuneration as consists of the delivery of shares of 
Iberdrola or of options thereon or which is indexed to the price of the shares of Iberdrola, which must be 
submitted for the approval of the shareholders at the General Shareholders’ Meeting. The Appointments 
and Remuneration Committee is a consultative committee chaired by and made up exclusively of 
independent directors.
Pursuant to article 52.1 of the By-Laws, the overall limit to the amounts allocated by Iberdrola to the 
directors each year as remuneration, including, in the case of executive directors, remuneration payable 
for performing executive duties, as well as the funding of a reserve to meet the liabilities assumed 
by the Company in connection with pensions, payment of life insurance premiums, and payment of 
severance to former and current directors, is 2% of the consolidated group’s profit for the financial year, 
after allocations to cover the legal and other mandatory reserves and after declaring a dividend to the 
shareholders of not less than 4% of the share capital.
Specifically, the by-law mandated allocation was 19 million euros in 2014 (it was 25.7 million euros in 
2013).
The price of the shares or options thereon, or any remuneration established by reference to the listing 
price, which in any event must be approved by the shareholders at the General Shareholders’ Meeting, 
shall not be included in the calculation for the purposes of such limit.
G4-53 Report how stakeholders’ views are sought and taken into account regarding remuneration
The Director Remuneration Report for financial year 2014 was submitted to a consultative vote of the 
shareholders at the General Shareholders’ Meeting held on 22 March 2013, which had a quorum of more 
than 82.2%, and only received 1.37% of the votes against.

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G4-54 Report the ratio of the annual total compensation for the organisation’s highest-paid individual in each 
country of significant operations to the median annual total compensation for all employees (excluding the 
highest-paid individual) in the same country
G4-55 Report the ratio of percentage increase in annual total compensation for the organisation’s highest-
paid individual in each country of significant operations to the median percentage increase in annual total 
compensation for all employees (excluding the highest-paid individual) in the same country
Iberdrola’s Corporate Governance Model provides for the existence of a holding company, Iberdrola 
S.A., and for country subholding companies in the main countries in which it does business, as shown in 
indicator G4-42 of this report and described on the Company’s website.
The main countries in which the Iberdrola Group does business are Spain, the United Kingdom, the 
United States of America, Mexico, and Brazil, and the remuneration ratios are set forth in the table 
below. The management structure has been adjusting to this corporate structure in Spain during 
financial year 2014, and the information provided corresponds to the highest-paid management position 
in that country during financial year 2014. 
Country (1)
Highest level  
of remuneration 
Indicator 
G4-54
Indicador 
G4-55
Spain (2)
Indicator 
17.67
N/A
United States
Director (CCO)
14.49
2.23
United Kingdom
Director (CCO)
9.53
1.27
Mexico
Corporate Director
8.48
0.17
Brazil
Director/Chair
33.61
2.74
(1) Country composition: Spain: Generation, Distribution, Retail, Renewables, and 
Engineering; United States of America: Networks, Renewables, Gas, and Engineering; 
United Kingdom: ScottishPower (including Renewables) and Engineering; Mexico: 
Generation, Renewables, and Engineering; Brazil: Elektro.
(2) Composition of total annual remuneration: fixed salary, fixed and variable salary 
supplements, and annual variable remuneration, excluding the long-term incentive plan 
which corresponds to the entire workforce, whether permanent or temporary and whether 
full-time or part-time, the latter calculated as salary equivalents to full-time.
The Annual Director Remuneration Report for financial year 2014, available at www.iberdrola.com, 
describes the remuneration of the Board of Directors of the holding company Iberdrola S.A.

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79   /   Part i. General standard disclosures
7. 
Ethics and 
integrity

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G4-56 Description of values, principles, standards, and norms of behaviour such as codes of conduct and codes 
of ethics
Ethics is at the core of the Iberdrola Group’s strategy, its business model, and its decision-making chain. 
Iberdrola works in order to ensure that its commitment to ethics and respect for the environment are the 
foundation for a sense of belonging and for the trust of all the people and the various stakeholders with 
whom the Company interacts.
As a reflection of this business culture that is respectful of the natural and social environment, Iberdrola 
has formulated the vision and values applicable to the entire Group, a detailed description of which can 
be found at www.iberdrola.com.
The basic commitments on which the Group’s vision is based include its firm commitment to ethics and 
corporate responsibility.
The vision and values of the Group, far from constituting a mere declaration of principles, are integrated 
into its day-to-day management, in all its areas of activity. The vision and values of the Group are 
included in the Company’s Code of Ethics, in existence since 2002, which establishes a set of principles 
and guidelines for conduct to ensure the ethical and responsible behaviour of the Group’s professionals 
in their activities. These principles and guidelines for conduct apply to all of the Group’s professionals, 
regardless of seniority, geographic or functional location, or the company of the Group to which they 
provide their services.
The body charged with ensuring that the Code of Ethics applied is the Compliance Unit (the Unit), 
which was set up by the Board of Directors in December 2012, following the highest corporate 
ethics standards, as an internal and permanent collective body connected to the Corporate Social 
Responsibility Committee and with duties in the regulatory compliance area. The Unit’s main duties 
include ensuring that the Code of Ethics is applied and the dissemination of a preventative culture based 
on “zero-tolerance” towards the commission of unlawful acts and fraud.
The Group also has policies, codes, and procedures to govern conduct in various areas relating to these 
matters, including the following, among others: Crime Prevention and Anti-Fraud Policy, Directors’ Code 
of Ethics, Procedure for Conflicts of Interest and Related-Party Transactions with Directors, Significant 
Shareholders and Senior Officers, Internal Regulations for Conduct in the Securities Market, and 
Internal Regulations for the Processing of Inside Information.
This ethical and good governance commitment is transmitted to third parties with which the group is 
connected through various initiatives, which include the Suppliers’ Code of Ethics, which sets forth the 
Group’s firm commitment to not allow any corrupt, fraudulent, or illegal practice, or practices contrary 
to the policies and principles of the Company in the area of corporate social responsibility in its supply 
chain.
In addition, the Wholesale and Retail Business has the Sales Code of Ethics, which has been reviewed by 
the Compliance Unit during the financial year, and the purpose of which is to establish the principles that 
are to govern the conduct of sales representatives and external sales teams with respect to customers.

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In addition, compliance divisions have been established at each country subholding company and/or 
head of business company of the Group, which are structured as internal independent areas linked to 
the respective Audit and Compliance Committee, with duties in the area of regulatory compliance and in 
the prevention and correction of unlawful or fraudulent conduct.
G4-57 Internal and external mechanisms for seeking advice on ethical and lawful behaviour
G4-58 Internal and external mechanisms for reporting concerns about unethical or unlawful behaviour, and 
matters related to organisational integrity 
Since its inception, the Compliance Unit has established a global operating framework through the 
definition and monitoring of a robust and traceable ethics and compliance system, designed on the basis 
of the parameters set forth in best international practices on control, compliance, fraud prevention, and 
the fight against corruption (Compliance System).
The Group’s reporting channels
One of the basic elements of the Compliance system is to establish detection and/or monitoring 
mechanisms to verify the effectiveness of the controls and prevention activities carried out at the Group. 
One of such mechanisms are the ethics channels. Such channels for reporting and asking questions are 
essential to foster a culture of integrity and compliance with the law within the Group. Ethics mailboxes 
give the employees of the Group a transparent tool to report conduct that could entail an irregularity 
or an act contrary to the law or to the rules of conduct set forth in our Code of Ethics. All information 
received through these channels is treated as confidential information.
In addition, ethics mailboxes coexist with other helpline reporting mechanisms available at some country 
subholding companies and/or head of business companies of the Group, such as, for example, Elektro 
and Iberdrola USA, where such mechanisms are anonymous and are also accessible to third parties.
In any event, there is an express commitment at the Group, reflected in the Code of Ethics, not to take 
reprisals against those using these channels.
All professionals who have reasonable indications that any irregularity or any act contrary to the 
law or to the rules of conduct of the Code of Ethics has been committed must report it through the 
aforementioned channels.
Furthermore, the Group also has a Shareholders’ Ethics Mailbox as a channel of communication 
through which shareholders can report conduct that may entail a breach of the Company’s Corporate 
Governance System or the commission by any professional of the Group of an act contrary to the law or 
to the rules of conduct of the Code of Ethics. This mailbox is available on the Group’s corporate website, 
specifically within the interactive system provided for the shareholders known as “OLS – On-Line 
Shareholders”.

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Processing and investigation
As laid down in the Code of Ethics, it falls upon the Compliance Unit to process the reports made 
through the reporting channels, except in cases where the report affects an employee assigned to a 
country subholding company or head of business company that has a Compliance Division.
The right to privacy, to a defence, and the presumption of innocence of the persons under investigation 
are guaranteed in all investigations.
In addition to the investigation work and the possible disciplinary action that may derive from it, the 
situations reported through these ethics channels are reviewed in detail by the Compliance Unit in 
order to identify possible corrective actions and suggest improvements in the control, prevention, and 
mitigation systems so as to try to prevent a future repetition of the irregular situations detected.
Communications received during financial year 2014
As regards the communications received through the ethics mailboxes and existing similar channels in 
the Group, a total of 327 communications were received in financial year 2014, of which 132 were queries 
and 195 reports. In addition, of the total complaints received, 94% were admitted for processing, and 
in only 12% of the cases was it shown that there had been irregular conduct or conduct contrary to the 
Code of Ethics leading to some type of disciplinary action.

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Part ii. 
Specific 
standard 
disclosures

/   Sustainability Report 2014
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This section provides a description of the material aspects affecting the Iberdrola Group, defined based 
on the standard described in indicator G4-19 of this report.
In each aspect, there is a description of the Company’s focus to properly manage and report on the 
results achieved, by means of the corresponding indicators. If several of these aspects are managed 
with a similar focus, the focus is described for one of them and a corresponding cross-reference is made 
in the others.
In managing the material aspects identified, there are also tools, processes, and procedures that are 
generalised throughout the Company and apply to all of them, and which are described below and 
should be taken into account in order to understand the manner in which Iberdrola carries out its 
activities and manages the economic, environmental, and social impacts thereof.

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Generic management approach, applicable to all aspects of this report
Policies and commitments
The Company’s Corporate Governance System is made up of the By-Laws, the Corporate Policies, the 
internal corporate governance rules, and other internal codes and procedures.
The Group thus has a set of Corporate Policies that develop the principles reflected in the Corporate 
Governance System and that contain the guidelines governing the actions of the Company and the 
companies of its Group, as well as the directors, officers, and employees thereof, within the framework 
of the vision and values of the Company.
The companies of the Group assume a set of principles and values that express their commitment 
to corporate governance, business ethics, and corporate social responsibility. The awareness, 
dissemination, and implementation thereof serve to guide the activities of the Board of Directors and 
its committees and of the decision-making bodies of the Company in its relations with shareholders, 
investors, customers, suppliers, and the general public.
These policies are grouped into three categories:
  Corporate governance and regulatory compliance policies. 
  Risk policies. 
  Social responsibility policies.
And can be viewed in full or in summary in the “Shareholders and Investors” tab at www.iberdrola.com.
Iberdrola has also assumed certain public commitments that guide the activities of the Group:
  By subscribing to various initiatives relating to the environmental and social dimensions of its 
activities, which are listed in indicator G4-15 of this report.
  By its membership within certain business and social organisations, such as those described in 
indicator G4-16 of this report, and which are identified by their objectives and purposes.
These policies and commitments serve to guide the Company and its workforce to manage their 
activities, and specifically the aspects dealt with in this document.
Responsibilities
Indicator G4-42 of this report describes the organisational model of the Iberdrola Group and its 
responsible persons. The responsibilities of the corporate functions or business units regarding the 
various aspects dealt with in this report are the following:
  Aspects relating to corporate governance and that affect the legal area are the responsibility of the 
Office of the General Secretary and Secretary of the Board of Directors.
  Aspects relating to labour practices are the responsibility of the Human Resources Division, within the 
Finance and Resources Division. 
  Aspects relating to the environment are the responsibility of the Innovation, Quality, and Environment 
Division.

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  Aspects relating to procurement are the responsibility of the Procurement and Insurance Division, 
within the Finance and Resources Division if referring to general supplies, and the responsibility of the 
Wholesale and Retail Business if referring to the procurement of fuel.
  Aspects relating to regulation and public policies are the responsibility of the General Businesses 
Division of the Group.
  Aspects relating to the products sold, demand, customers, and other related issues are the 
responsibility of the Wholesale and Retail Business if referring to liberalised markets like Spain or the 
United Kingdom and the responsibility of the Networks Business if referring to regulated markets like the 
United States of America or Brazil. 
  Aspects relating to production facilities are the responsibility of the Wholesale and Retail Business 
or the Renewables Business, each within their scope of activity, and those relating to transmission and 
distribution facilities are the responsibility of the Networks Business. These three businesses are within 
the General Businesses Division of the Group.
By way of complement:
  The Operating Committee, made up of the chairman, the Group’s business CEO, and directors of 
corporate functions and business units, is an internal committee providing technical support and 
information, both with respect to the duties of supervision, organisation, and monitoring of the general 
management guidelines, as well as strategic planning of the businesses managed by the head of 
business companies of the Group; and
  The Compliance Unit, as an internal permanent collective decision-making body, linked to the 
Company’s Corporate Social Responsibility Committee, which performs duties in the area of regulatory 
compliance and the Company’s Corporate Governance System, particularly in the area of crime 
prevention.
To exercise these responsibilities, the Iberdrola model provides that they are assumed in a decentralised 
manner by the country subholding companies and head of business companies in each country, which 
are organised through their respective boards of directors. The head of business companies occupy 
themselves with the effective management of each of the businesses, as well as the day-to-day 
management and control thereof.
Goals, resources, and results
Iberdrola periodically publicises its medium- and long-term goals using various formats: Investor Day, a 
description of which is available at www.iberdrola.com, is one of the most important events to externally 
communicate the future prospects of the Company. As additional information, Iberdrola annually 
publishes its Integrated Report, which is also available on the corporate website.
Internally, the various businesses and corporate organisations determine their annual goals in harmony 
with the strategic goals of the Company, both financial and non-financial, directed specifically towards 
the activities for which they are responsible. The results obtained with respect to the established goals 
are used to establish the annual variable remuneration of the Company’s management team by means of 
a procedure audited by the Company’s Internal Audit Division.

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To reach these goals, Iberdrola has an annual process for assigning resources, by establishing the 
corresponding income and expense budgets, which are approved by the Company’s Operating 
Committee. The achievements obtained by Iberdrola are reflected in the performance of the various 
quantitative indicators covered by the various aspects dealt with in this report.
By way of complement, the businesses and corporate areas have defined specific goals in the area of 
corporate social responsibility, which are contained in the 2013-2014 CSR Plan. The Group’s Corporate 
Social Responsibility and Reputation Committee is responsible for monitoring these goals, the results 
of which are presented to the Corporate Social Responsibility Committee of the Board of Directors. At 
year-end 2014, the results obtained at the close of such plan were obtained, reaching 96% of the goals 
established, and the preparation of a new 2015-2017 CSR Plan has commenced.

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A. Economic 
dimension

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The aspects dealt with in this chapter are the following:
Aspects of the GRI-G4 Guidelines
Economic performance
Market presence
Indirect economic impacts
Procurement practices
Specific Aspects of the GRI-G4 Electric Utilities Sector Supplement
Availability and reliability
System efficiency
Demand-side management
Research and development
Decommissioning of nuclear plants
Specific Aspects of the Iberdrola Group
Costs of Supply
“Green Bonds”
The information boundaries used in this chapter are defined in section G4-17 of this report.

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Aspect: Economic performance
Management Approach
The electricity sector is a significant driver of the economy, to which it contributes through major 
annual investments and the creation of jobs, both direct and indirect. Its function in the current energy 
environment is to provide safe, competitive, and sustainable supply, in which clean technologies are 
critical in combating climate change and reducing dependence on fossil fuels. 
Over the past decade, Iberdrola has engaged in a process of significant growth and internationalisation 
that has made it one of the leading electricity companies in the world. This strong position was achieved 
through a sound, long-term industrial plan that is both profitable and creates value, based on a business 
strategy of sustainable growth.
Energy is globally trending towards moderate growth in the medium and long term, supported by 
the economic recovery. Iberdrola’s strategy for the 2014-2016 period will be based on consolidating 
its financial strength, investing in regulated businesses, and continuing to implement efficiency 
improvements; thereby maintaining the same strategic pillars that enabled the successful navigation of 
the global economic and financial crisis. These strategic pillars are:
  Balanced risk profile
  Operational efficiency
  Financial strength
A summary of this strategy can be found in the document Outlook 2014-2016, which can be accessed 
through its corporate website in the Shareholders and Investors section. 
Iberdrola’s financial results for the year are summarised in the annual financial information for 2014, 
which is available online at www.iberdrola.com. Alongside these results, the company also requires 
its companies to explain how they are achieved and to evaluate them in terms of sustainability. In 
Iberdrola’s case, this comprehensive overview can be seen in the Sustainability Report 2014 along with 
the aforementioned financial information. In addition, the Integrated Report February 2015, the quarterly 
reports on results, and other economic information of interest can be found at www.iberdrola.com.

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G4-EC1 Direct economic value generated and distributed
Direct economic value generated, 
distributed, and retained (€ millions)
2014
2013
Iberdrola consolidated
Revenue (sales and other income)
31,434
32,241
Operating costs
19,916
21,441
Employee remuneration (excluding 
company social security costs)
2,086
1,998
Payments to providers of capital
2,753
2,554
Payments to government
2,441
2,680
Community investments
27
24
Economic value retained
4,211
3,545
Tax contribution (€ millions)(1) 
2014
2013
Iberdrola consolidated
Company contributions
2,441
2,680
Contributions due to third-party 
payments
3,064
2,933
Total 
5,505
5,613
(1) Analistas Financieros Internacionales (Afi) has estimated that the total annual tax contribution 
of the Company is approximately 10,500 million euros, based on Iberdrola’s activities during the 
2009-2013 period.
A breakdown by geographic area can be found in the Information Supplementary to the Sustainability 
Report 2014, available at www.iberdrola.com.

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G4-EC2 Financial implications and other risks and opportunities for the organisation’s activities due to climate 
change
Iberdrola includes climate change as a cross-cutting element in managing risks and opportunities in 
its business plans. The following risks of climate change have been identified: potential impact on 
hydroelectric energy production, projected renewable energy production, cooling needs of thermal 
plants, thermal efficiency of generating plants, levels of growth in energy demand, and soundness of 
the transmission and distribution infrastructure. The specific implications of each of these risks are 
constantly being reviewed, and are included in the Company’s operational planning. 
Iberdrola has a Policy against Climate Change, in which it commits to supporting international 
conventions to address this environmental problem, encouraging the development of efficient 
technologies from the standpoint of greenhouse gas emissions, boosting efficient energy use, and 
increasing its customers’ awareness of the importance of engaging in responsible energy consumption. 
In September 2014, at the Climate Summit in New York, Iberdrola endorsed the goals set by the Carbon 
Disclosure Project via its Road to Paris 2015 initiative, which aims to bring down emissions and promote 
responsible corporate policies on climate change:
1. Cutting GHG emissions to limit global warming to less than 2° Celsius. 
2. Providing information on climate change through the Group’s main channels. 
3. Promoting responsible corporate policies on climate change.
To that end, Iberdrola’s goal is to achieve a 30% reduction in emissions intensity by the year 2020, 
compared to 2007. 
In order to compile the Company’s efforts to adapt to the consequences of climate change, a special 
information section has been created on the corporate website: www.togetheragainstclimatechange.
com/en
Iberdrola has increased the transparency and communication of its climate change policies and is 
taking the steps needed to reduce emissions. These actions to combat climate change are part of the 
Company’s global strategy, and range from the production of low-carbon energy, to the development of 
high-efficiency products and services.
Once these types of factors are identified and managed, they have a lower impact in the short and 
medium term than other risks and opportunities.

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G4-EC3 Coverage of the organisation’s defined benefit plan obligations 
In Spain, the companies signing the 5th Collective Bargaining Agreement jointly sponsor a voluntary 
employee pension plan in which 98% of the workforce participates.
The periodic contributions made under this system and under the current Collective Bargaining 
Agreement is determined as a percentage of each employee’s annual pensionable salary. Iberdrola does 
not have any unmet financial commitments pending under this plan.
In the United Kingdom, 95% of the workforce participate in the pension plans in one form or another: 
  The defined-benefit plan has two pension plan schemes, based on company and seniority. They have 
been closed to new members since 1 April 2006.
  The defined-contribution plan has a pension scheme that is based on a percentage of each employee’s 
annual pensionable salary. This scheme is optional for employees and is co-funded by the company and 
employees.
Iberdrola Networks USA has five defined-benefit plans, covering union and non-union employees, for 
which the company makes the contribution, with benefits being based on salary and years of service. As 
of 1 January 2014, all defined-benefit plans were closed to new members.
It also has defined-contribution plans with distinct and separate operations covering employees who 
are both subject and not subject to the collective agreement. Employees can make contributions as a 
percentage of their pre-tax salary (generally up to 50%). Almost 100% of the workforce is eligible to join 
these defined-contribution plans, with some 89% having signed up. 
The Renewables USA Business has a corporate defined-benefit plan, with contributions assumed by 
the company and benefits determined based on salary and years of service. Vesting in this plan was 
frozen as at 30 April 2011. It also has a defined-contribution plan with three different types of company 
contributions. Employees can make contributions as a percentage of their pre-tax salary. 100% of the 
workforce belongs to these defined-contribution plans.
Elektro has a defined-benefits plan for employees who joined before 31 December 1997, and a mixed 
plan (70% of salary as defined benefit and 30% as defined contribution) for those who joined after 
1 January 1998. 80% of the workforce belongs to these defined-contribution plans. The rest of the 
affiliates in Brazil have pension plans for all their employees, with contributions made by the company 
and by employees based on previously-agreed percentages, except for employees of the following 
companies: Iberdrola Brasil, Iberdrola Operação e Manutenção (operator of the Termopernambuco 
plant), Iberdrola Renovaveis do Brasil, Iberdrola Construção e Serviços, and Enerbrasil. 
Commitments to unionised employees in Iberdrola Mexico, consisting of agreed benefits in the event of 
death, disability or retirement, and which are included in Combined Cycle tenders, are funded out from 
internal funds. A defined-contribution pension plan is being implemented in 2015.

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G4-EC4 Financial assistance received from governments
Assistance received
Financial assistance received by the Iberdrola Group is shown in the following table on a consolidated 
basis:
Financial assistance (€ millions)
2014
2013
Capital subsidies
0
12
Investment tax credits9
0
20
Emissions rights
0
0
Assistance for other items included in the 
GRI Protocol
0
0
Iberdrola consolidated total
0
32
A breakdown by geographic area can be found in the Information Supplementary to the Sustainability 
Report 2014, available at www.iberdrola.com.
Government participation in shareholding structure
The Iberdrola Group is not aware of government participation in the shareholding structure.
9  Créditos fiscales a la inversión.

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Aspect: Market Presence
Management Approach
The Iberdrola Group has hiring procedures that comply with the principles of non-discrimination and 
equal opportunity, and has selection processes based on candidate merits, ensuring the application of 
such principles.
The management approaches described in the “Labour Practices and Decent Work” chapter of this 
report are applied to both remuneration as well as the selection of professionals.
G4-EC5 Ratios of entry level wage to local minimum wage
Iberdrola’s hiring terms, which are contained in the various collective bargaining agreements of the 
Group, guarantee that the entry level salaries applied at the Company are the same for men and women. 
However, due to the specific nature of the workforces of certain companies and the weighting of the 
calculations made, the statistical treatment of information at the Group level gives the figures in the 
following table and in the Information Supplementary to the Sustainability Report 2014, but should not 
be interpreted to show a difference in hiring terms between both groups.
Basic entry level wage compared to local 
minimum wage (%)
2014
2013
Men 
163.43
158.67
Women 
149.41
134.41
Basic boundary 
160.87
152.25

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G4-EC6 Senior management hired from the local community
The principles of non-discrimination and equal opportunity applied at the Iberdrola Group are contained 
in both the Code of Ethics and in various collective agreements, policies and procedures that have been 
approved and implemented, such as: 
  The 5th Collective Bargaining Agreement and the Recruitment and Selection Policy, applied in Spain.
  The Collective Bargaining Agreement and the policies on equal opportunity, anti-age discrimination, 
people with disabilities, equal pay, harassment, and flexible working policies, as applied in the United 
Kingdom.
  The Collective Bargaining Agreement and policies on sexual harassment, equal employment 
opportunity, harassment and discrimination, as applied in the United States.
The application of all these instruments ensure that selection processes are based on the candidate’s 
merits, enabling non-discriminatory participation in these processes.
In implementing these procedures, Iberdrola’s approach is to promote and favour the hiring of 
employees in the geographic boundaries in which it operates, also encouraging these individuals to 
reach executive positions in the corresponding companies. In 2014, for companies within the expanded 
boundary, 97.80% of management personnel was local, where management personnel is defined as 
anyone with management responsibilities at the Company.
Aspect: Indirect economic impacts
Management Approach
In addition to the direct economic impacts that occur as a consequence of the cash flows that are 
generated, the Iberdrola Group also brings about additional effects or indirect impacts such as those 
described in this aspect.
G4-EC7 Development and impact of infrastructure investments and services supported 
During the construction and operation of its facilities, Iberdrola carries out certain infrastructure 
activities that are unrelated to its facilities and without a specific commercial purpose, but rather that 
are intended to meet the needs of the social environment, resolving existing shortcomings in the local 
communities. A summary of these projects with strong social impact during 2014 is provided below:
Infrastructure
In Mexico it has participated in the improvement of various educational centres, the electrification of 
public areas, street paving, and expansions of potable water and sewage networks.
In Brazil, work has been performed for the recovery, maintenance, and conservation of gardens and 
urban street furniture. In the field of street lighting, an initiative was launched to replace over 2,000 
existing sodium vapour lamps with 1,098 new LED-type lamps, yielding estimated energy savings of in 
excess of 2,600 MWh/year.

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It also built a bridge in Hungary and cooperated on the refurbishment and maintenance of schools in 
Greece and Romania.
Services
Significant service activities include support for professional formation and training in areas near 
Iberdrola’s facilities. Energy Classrooms near the wind farms in Spain were visited by more than 14,000 
people in 2014. 
Brazil is the site of major energy efficiency programmes for public buildings, such as municipal 
governments, schools, assistance centres, etc.; in total, 83 public buildings have been renovated in 23 
different municipalities, yielding energy savings of close to 1,700 MWh/year.
Also worthy of note is the collaboration with Hydrographic Confederations and other bodies in Spain 
to enable various activities near the hydroelectric reservoirs (sports events, reproduction of certain 
species, etc.), by adjusting flows at certain times. 
G4-EC8 Significant indirect economic impacts
Indirect impacts of the businesses and facilities
From an economic standpoint, the expansion of electricity systems drives the regional economy in the 
region where it occurs and creates employment opportunities, contributing to economic and social 
improvement. 
Positive effects include:
  Facilities for the production, transmission, and distribution of electrical energy are built in dispersed 
geographic locations. This contributes to the generation of economic activity and jobs in urban and rural 
environments. 
  These same facilities create significant indirect employment in the region in the form of local 
contracting companies, creating demand for lodging, security, health, mechanical, and transport 
services, etc. 
  Professional training is promoted and skilled labour boosted in local communities, such as services for 
maintaining wind farms.
  Local communities are supported through the sponsorship of the initiatives of social and 
environmental institutions and organisations.
  Due to their geographic reach, electricity activities generate fees, taxes, and duties at the local, 
regional, and national levels.
Negative effects can be considered to include the following: 
  The landscape impact of the facilities, especially large ones, and the possible negative effects 
(during construction or operation) on traditional activities, particularly in the rural environment, such as 
ranching, hunting, or fishing.

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  Environmental risks, which may give rise to undesirable consequences for the environment, such 
as spills and improper emissions, or waste management; these situations might occur despite the 
demanding operational practices developed by the Group.
Indirect impacts of the supply chain
The high volumes of Iberdrola’s purchases (described in the G4-12 indicator) of equipment, works, 
and services, as well as fuel, becomes an engine for growth in the countries in which the Company is 
present.
Entrepreneurial support
Iberdrola supports the creation and strengthening of new business products through a number of 
significant initiatives, including the following during 2014:
  In 2014, Iberdrola procured a volume equivalent to 41.7 million euros from companies in Spain that 
have been operating for less than 4 years, which is clear support for entrepreneurs.
  Iberdrola’s venture capital program, Iberdrola Ventures - Perseo, funded with 70 million euros, is an 
opportunity for companies dedicated to sustainable energy-related technologies.
  In both Spain and in the United Kingdom, United States of America, and Brazil, there has been 
technical, human, and financial support for various initiatives aimed at supporting entrepreneurs and 
creating new companies.

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Aspect: Procurement practices 
Management Approach  
G4-EC9 Spending on local suppliers
Iberdrola maintains a strategy of creating value in the regions in which it operates.
The volume of purchases made by the Company each year spurs indirect employment in auxiliary 
industries and at service providers. 
But aside from purely economic benefits, Iberdrola acts as a market driver on sustainability and 
responsibility, encouraging suppliers to improve their environmental, ethical, and social record through 
actions that foster excellence in their management, beyond mere technical quality, thereby helping 
suppliers become more competitive. 
The following table shows the volume of procurement from local suppliers.
Acquisition or contracting of materials, 
equipment, works, and services from 
local suppliers (%)
2014
2013
Spain
84
87
United Kingdom
91
83
United States
99
99
Mexico
60
64
Brazil
100
100
Other
40
67
Basic boundary
87
86

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Electric utilities sector specific aspects
Aspect: Availability and reliability
Aspect: System efficiency
Management Approach 
Spain
The planning of generation in Spain is a government function and is indicative in nature, as participants 
make investment decisions within a free-market environment. 
Analysing the reliability of the short-term electricity supply is a task assumed by the System Operator, to 
which Iberdrola contributes significantly through a cutting-edge renewable energy control centre. 
The Networks Business also contributes to guaranteeing reliability, performing studies to identify the 
short- and long-term investments needed to meet new demand and to renew older facilities by adopting 
more modern technologies, with a view to guaranteeing a more operational and reliable network.
United Kingdom
A large part of the United Kingdom’s generating facilities is reaching the end of its use life, and the 
government is determining energy policy and regulation to enable renewal without endangering the 
safety of supply. There will be auctions of capacity in which the government will calculate the amount 
of capacity required, depending upon its system reliability target, and industry players will offer their 
facilities until need is met. December 2014 saw the first of these auctions, in which both existing plants 
and new projects took part. Iberdrola is developing new projects in the technologies promoted by 
government policy over the next decade: offshore wind and combined cycle.
In the field of electricity transmission networks, in the United Kingdom the business is governed by the 
RIIO-T1 plan over the 2013-2021 period. Significant investments are being considered during this period 
with a dual purpose: first, to increase the transmission capacity of interconnections between Scotland 
and England, and second, to enable the evacuation of energy from all renewable facilities expected 
in the short to medium term. Both objectives will make it possible to guarantee reliable, high-quality 
service in the coming years.
United States of America
Iberdrola is among the leading producers of wind energy in the United States of America. The 
construction of a new electricity transmission corridor from Canada to the United States of America 
through the state of Maine is an element that will allow for the integration of growing wind production, 
improving grid stability and the reliability of both systems.
The Group’s North American companies act in accordance with the laws and regulations of the states 
in which they operate. In the state of New York, the companies participate in planning activities through 
official bodies, ensuring that they can meet short- and long-term demand under proper conditions of 
reliability and safety.

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The System Operator (ISO) operates within the reliability margins set by the North American Electric 
Reliability Council, the Northeast Power Coordinating Council, and the New York State Reliability Council 
(NYSRC). NYSRC sets the installed capacity reserve margin, as well as the required level generating 
capacity, such that the loss of load in the New York control region is no more than one day per ten years. 
In New England, ISO-NE sets installed capacity requirements (ICR) using similar criteria. 
In the state of Maine, transmission and distribution companies have no authority over energy planning, 
and cooperate with official bodies on operational matters that may be required by such bodies. Maine’s 
Electricity Restructuring Act provides that the subsidiary CMP has no obligation to supply electricity. 
All retail supply is contributed by competitive electricity providers and suppliers of standard electricity 
service selected by the Main Public Utilities Commission.
Mexico and Brazil
The Group’s subsidiaries and affiliates in these countries manage production plants and large electricity 
distribution areas in close cooperation with governments to develop systems to help them attain their 
energy planning goals, achieving the desired balance between available resources and the quality and 
reliability of the electricity supply.
The Group’s subsidiaries and affiliates in this region participate in developing generating facilities 
(thermal, hydraulic, and wind power) and electricity networks.
Fuel
A key element in managing the availability of electricity service is the supply of the necessary fuel. 
Iberdrola ensures it has a global portfolio for gas and coal supplies that is flexible and geographically 
diverse. This is in addition to a stable, long-term, and low-risk supply of nuclear fuel.
The risk of fuel cost is managed using financial contracts that fix the price of the fuel at a particular time. 
They are primarily used to fix the costs of coal and gas under long-term contracts. Derivatives must also 
be used to cover fuel costs in euros, as physical purchases are always made in U.S. dollars.
EU10 Programmed capacity to address projected long-term electricity demand 
The companies of the Iberdrola Group have no direct responsibility for long-term planning processes for 
the corresponding electricity systems in the countries in which they operate.
Public authorities conduct the studies needed to anticipate the long-term needs of the respective 
electricity system, and Iberdrola’s companies act as market agents, making investment decisions that 
are consistent with their business plans.

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EU11 Average efficiency of thermal plants 
The efficiency of Iberdrola’s generating facilities is shown in the following table:
Average thermal efficiency10 at 
generating facilities (%)
2014
2013
Combined cycles
53.09
52.23
Conventional thermal
34.29
34.15
Cogeneration
55.46
57.62
Expanded boundary
49.05
49.02
Detailed information on thermal efficiency in the various countries can be found in the Information 
Supplementary to the Sustainability Report 2014, available at www.iberdrola.com.
EU12 Transmission and distribution losses 
Transmission and distribution network 
losses (%)
2014
2013
Expanded boundary
Transmission
United Kingdom
1.29
1.30
United States
3.94
3.98
Brazil
0.60
0.60
Distribution
Spain
7.63
8.45
United Kingdom
N/Av.11
N/Av.11
United States
4.65
4.66
Brazil
11.02
10.71
10  Average of efficiencies weighted by the annual production of each thermal power plant.  
11  The procedure for calculating losses is under review by the regulatory agency Ofgem.

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Loss reduction programmes have been implemented in all regions to improve the reliability and 
availability of the supply network, which has made it possible to reduce, or at least maintain, the level of 
losses. These programmes are the following: 
  Implementation of remote management and development of smart grids.
  Maintenance work on networks and substations: installation of new substations, inspection and 
replacement of equipment; cleaning and clearing of vegetation in line corridors, fire risk analysis, 
thermal imaging, increased helicopter inspections, etc.
  Acquisition of new transformers providing an average 20% reduction in losses.
  Inspection of supply points and improved contract management; inspection of facilities and 
regularisation of customers, regularisation of illegal connections, replacement of electromechanical 
meters with electronic ones, inspection processes, incentivising the detection of fraud, development of 
information technology systems for prompt follow-up on inspections, etc.
  The following activities are noteworthy in Brazil: reduction of losses in public lighting systems, 
improved access to meters, increase in inspections (reduction in illegal connections and connections 
of market stands and street vendors), increase in number of condenser batteries, installation of remote 
measurement systems, improvement in billing process and cutoffs for non-payment, and shielding of low 
voltage grids. Most of these activities are focused on reducing non-technical losses.
  In the United States of America, CMP is developing the Maine Power Reliability Program in order 
to improve the reliability of the system and reduce losses as well as other improvements in the 
transmission grid.
Aspect: Demand-side management
Management Approach 
As part of its demand-side management programmes, Iberdrola’s main objective is to improve energy 
efficiency and the smart use of active electrical grids to contribute to the more efficient use of energy 
by consumers. The types of actions taken include those relating to information, training, and the supply 
of solutions and technologies that help them improve energy efficiency and reduce the environmental 
impact of their energy habits and consumption. Iberdrola engages in demand-side management in all 
areas of electricity distribution for its various types of customers.
The most significant specific features of this type of programme in each market are as follows:
Spain and Portugal
Iberdrola sells a wide range of products and services that promote efficiency, energy saving, and 
environmental protection:
  Energy efficiency: capacitor banks, energy audits, efficient air conditioning and lighting, 
microgeneration, home automation systems and other solutions.
  Renewable energy facilities: solar thermal and photovoltaic energy.

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  Comprehensive management of energy supplies.
  Electromobility.
In 2014 close to 800,000 customers benefited from products and services that improve energy efficiency. 
Iberdrola also participated in the Plan to promote efficiency in energy consumption (PPEC 2013-2014) in 
Portugal, led by the Portuguese regulator ERSE. 
Other activities to promote energy efficiency were also carried out through the website, campaigns, 
customer invoices, etc.
United Kingdom
In the residential customer market, ScottishPower is participating in the Warmth Without the 
Worry Programme and the Energy Company Obligation (ECO) Programme, promoted by the British 
government, the purpose of which is to reduce CO2 emissions and heating costs.
The Company’s projects in the area of commercial and industrial customers are focused primarily on 
efficient lighting, monitoring of energy consumption by users, air conditioning and heating system 
optimisation, variable-speed engine mechanisms, and global energy management systems in third-party 
buildings, among others.
United States of America
In Maine, residential demand-side management programmes are developed by the Efficiency Maine 
Trust, rather than by electricity companies directly. There are currently two pilot programmes: the first, 
in a coastal community to develop and monitor the effectiveness of energy efficiency measures, demand 
responsiveness, and distributed generation; and the second, with the Maine Public Utilities Commission 
to develop flexible tariffs for residential customers, based on smart meters.
The Group’s distribution companies in New York currently have three demand-side management 
programmes for residential customers, and another three programmes for commercial as well as 
industrial and institutional customers. 
Brazil
Elektro is developing two energy efficiency programmes for residential customers, alongside the 
National Electrical Energy Agency (Agencia Nacional de Energía Eléctrica) (Anneal). The first, which is 
aimed at low-income customers, focuses on light replacement, refrigerators, and solar heating, and 
has worked with over 49,000 users. The second is aimed at education for efficient use of energy, and 
has worked with 305 schools and taught over 1,500 teachers and 37,000 students. In the commercial, 
industrial, and institutional segments, programmes focus on the training of electrical energy managers 
and the holding of seminars on energy efficiency for industrial customers. 
Affiliates in Brazil also run demand-side management programmes. In the residential segment, Celpe, 
Coelba, and Cosern focus on lighting replacement, refrigerators, and other low-performing household 
appliances, as well as on training teachers, students, and the general population in rational energy use. 
In the commercial sector, Coelba has a programme to donate efficient fridges and lighting systems to 
non-profit institutions. In the institutional segment, Celpe, Coelba, and Cosern have carried out a range 
of projects relating to energy efficiency and solar energy.

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Aspect: Research and development
Management Approach
As part of a solid strategy. which is set out in the Innovation Plan 2012-2014, innovation is Iberdrola’s 
primary tool for ensuring the Company’s sustainability, efficiency, and competitiveness, based on three 
principles:
  Efficiency: focused on the continuous optimisation of operations, management of the lifecycle of 
facilities and equipment, reducing operating and maintenance costs, and reducing environmental 
impact.
  New products and services: respond to the needs of customers in an increasingly global and 
competitive market. These are projects that create business models designed to offer ever more 
efficient and environmentally-friendly supply of energy, equipment, and technology, including energy 
efficiency, electrical vehicles, smart networks, and distributed energy resources.
  Disruptive technology and business models, which allow the Company to face the energy challenges 
of the future. Through Perseo, Iberdrola’s corporate venture capital programme, there is investment in 
technologies and new disruptive businesses that ensure the sustainability of the energy model. 
Thanks to human and financial efforts (170 million euros in 2014) allocated to R&D+i, Iberdrola is in the 
vanguard of developing new products, services, and business models that are transforming the energy 
sector.
Some of the innovative initiatives are set out below, classified by major category:
Renewable energy
In 2014, work continued on R&D+i projects specifically designed to develop solutions to reduce the 
cost of offshore wind energy, in which Iberdrola is a leading player: projects such as Sedar, Innpacto 
Openfoam and FP7 Eera Dtoc, in the energy resource field, the Low-Impact gravity foundations project, 
the Leanwind offshore technology project, and the various lines of action within the ambitious OWA 
(Offshore Wind Accelerator) programme, promoted by the Carbon Trust in the United Kingdom.
In Scotland, a study has begun into fatigue in offshore pilings for chalky soils, the TLPWind project, 
which aims to develop a next generation floating wind turbine model and a related innovative installation 
system, to boost the installation of offshore wind farms in areas around the United Kingdom where it 
isn’t currently viable because of the water depth.
The European Best Path project has been launched, with a view to demonstrating new technologies that 
enable the incorporation of renewable energy sources into European networks. The SmartWind project 
is working on storage technology models and simulations relating to wind farms. 
In terms of improving wind farm operations, work has continued on the gradual improvement of major 
operational systems such as Core, Domina, Meteoflow, and the recent expansion of Meteoflow Offshore. 
This is on top of new systems allowing better analysis of component reliability, such as the Darwind, 
Oleo, and Mineroil projects.

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Clean generation technologies
In 2014, efforts in the generation area centred on operational flexibility and efficiency, respect for the 
environment, and improved safety at facilities:
Flexibility, operational efficiency, and safety of facilities: The Filtraciones project is underway, with the 
goal of developing a new methodology for carrying out efficient inspections of water channels. With 
respect to facility safety, there has been a successful completion of the Insroca, Siro, and Ecrigen 
projects, which developed experimental prototypes and new methodologies to help ensure the structural 
integrity of generation assets and maximise their life cycle.
In the nuclear segment, the Migres and Resonuc projects are of note. The goal of the former is to 
research and develop a new process for the comprehensive management of the control rods and 
channels used, enabling them to be managed in a more sustainable manner. The goal of the Resonuc 
project is to research and develop a technological solution to mitigate resonance in critical nuclear plant 
systems, ensuring their optimal operation as a key factor in the safety and reliability of such plants.
Environment: Iberdrola is firmly committed to reducing the environmental impact of its generating plants, 
undertaking an ambitious project called Co2Formare, focused on cooling systems at plants and reducing 
their environmental impact. The Desox and Coeben-II projects were successfully concluded in 2014. 
The latter, which was undertaken at the Velilla del Rio Carrión thermal plant, generated the necessary 
technical know-how to also be transferred to the Longannet and Lada thermal plants. The Desox project, 
undertaken at the Lada thermal plant, increased the yield of the plant’s desulfurisation facility.
Retail – New projects and services
Innovation is essential in retail activities, in order to be able to offer customers the products and services 
best suited to their needs. Iberdrola is continuously working on the development of new products and 
services, including the launch in 2014 of new products like the 100% online Conect@ energy offer, and 
new services like the launch of Electricity Protection (Protección Eléctrica).
Smart grids 
The Group’s R&D+i activities in electric energy distribution focus on optimising the distribution grid, with 
an emphasis on worker safety, environmental issues, as well as improved quality of supply. Iberdrola is 
blazing a path in smart grid development through various projects in all countries where it distributes 
electricity. 
In Europe, Iberdrola leads the UpGrid project, where it seeks to enhance its ability to integrate active 
demand and distributed generation under low voltage. Work continues on the Grid4eu and iGreenGrid 
projects in developing specific methods for integrating renewable energy into the electricity distribution 
networks, and on Discern, for comparing various smart grid solutions to find the most optimal set of 
architectures. In Spain, Iberdrola continues to work on the Price project, the goal of which is to meet the 
needs identified for the development of a smart grid within an efficient, safe, and sustainable framework.

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In the field of the standardisation and maintenance of overhead lines, the following projects were 
completed: Tabon, to develop technology to verify and inspect lines, Matusalen, to develop a system for 
determining the ageing of medium voltage cables in underground lines, and Silectric, on new insulators 
for overhead lines and high-voltage switch gear.
Projects are being carried out along this line in Scotland to strengthen smart grids. Noteworthy is 
the ARC project, the goal of which is to accelerate the process of connecting renewables within 
the distribution grid, and Flexnet, to develop solutions and technologies allowing for improving and 
increasing the capacity of the grid. In Brazil, there are innovative projects like Vants and Robô to inspect 
distribution grids; projects to install underground grids in the cities to reduce the impact of overhead 
lines, and projects to improve electrical enclosures. Also noteworthy is the Elektrobus project, which is 
intended to develop a prototype of a vehicle with an electrical propulsion system using ultra-condensers. 
In the United States of America, there is the Integrated Aerial Damage Assesment System project, the 
purpose of which is to develop an aerial system to assess damages to the electrical grid after heavy 
storms.
Iberdrola has an R&D+i technology centre in Qatar. Together with the state-owned Qatari company 
Kahramaa, it continues a process to define and launch a pilot smart grid project. Within the framework 
of the Iberdrola Chair of Universidad de Salamanca, an agreement has been signed for the exchange 
of professors from Qatari institutions and to jointly collaborate on R&D+i projects in the region. An 
agreement has also been reached between Qatar University and Universidad de Salamanca to jointly 
present an R&D project to the Qatar National Research Funds (QNRF).
Iberdrola Ventures - Perseo
Iberdrola Ventures - Perseo is Iberdrola’s €70 million corporate venture capital programme, dedicated 
to investment in innovative technologies and business models to ensure the sustainability of the 
energy model. Since it was established in 2008, more than €48 million has been invested through the 
programme in start-ups developing technology and new businesses in the energy sector worldwide. The 
main activities in 2014 included:
  An investment in the Californian company QBotix, which develops tracking systems using robotics, 
designed to significantly reduce the cost of developing and operating photovoltaic solar plants. 
  The launch of the Open Innovation Ventures programme, to boost cooperation with technology 
partners in order to accelerate the development of new products of interest to Iberdrola. The first activity 
under this programme was the creation of the Gdes Tech4Services venture, owned by Iberdrola and 
Grupo Dominguis, to develop and market technologies and new products for use in the operation and 
maintenance of assets in the electric sector.

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Aspect: Decommissioning of nuclear plants
Management Approach
Empresa Nacional de Residuos Radiactivos S.A. (Enresa) has been responsible for decommissioning 
nuclear power plants since 1984. This company is also in charge of managing radioactive waste and 
spent fuel.
Enresa prepares the General Radioactive Waste Plan (Plan General de Residuos Radiactivos) (PGRR), 
which is the basic document setting forth the strategies to be followed and activities to be carried out in 
Spain in the fields of decommissioning nuclear power plants and managing radioactive waste and spent 
fuel. The plan also includes a financial/economic study of such activities, which is submitted for approval 
every 4 years to, or upon the request of the Ministry of Industry, Energy and Tourism (MINETUR).
A fund managed by Enresa has been set up to finance the activities contained in the PGRR. The 
fund includes provisions for the decommissioning of nuclear power plants, with a cost representing 
approximately 22% of the total cost of Enresa’s past, present, and future activities.
In addition, Iberdrola allocates funds to cover the pre-decommissioning stage of its nuclear power 
plants. Pre-decommissioning means the period between the definitive shutdown of the plant and the 
moment when the ownership of the plant passes to Enresa for it to commence decommissioning. This is 
an estimated period of 3 years, during which all spent fuel - from both the reactor and the pool - must be 
removed, treated, and stored in containers.
As a company that owns part or all of 8 nuclear reactors, Iberdrola makes contributions to the fund 
for the decommissioning of nuclear plants, as mentioned in the management approach, through a 
fee, which is calculated to cover all management expenses for radioactive waste, spent fuel, and the 
decommissioning of such plants.
Nuclenor, S.A., a company 50%-owned by Iberdrola, allocated funds for the pre-decommissioning of the 
Garoña nuclear plant to pay the expenses that will arise once the plant ceases commercial operation.
Specific aspects of the Iberdrola Group
Aspect: Supply costs 
Management Approach
The cost of electricity supply is taking on a greater role in the political and social agenda. The principal 
challenge is to reconcile secure and environmentally friendly supply with the use of renewable energy at 
prices that are competitive and can be afforded by society as a whole.
The electricity sector, which by nature is a basic service for society, is broadly regulated in the various 
countries in which Iberdrola operates, with varying levels of liberalisation in each. The most significant 
issues being debated and regulatory developments currently occurring in these countries are described 
below:

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European Union 
  Within the current context, the impact of high energy costs on the competitiveness of European 
industry and the well-being of citizens is one of the issues of greatest concern in the European 
Union. The accords on the 2030 framework for climate and energy propose measures for meeting 
environmental targets whilst allowing energy prices to remain competitive. 
  Various initiatives are being adopted to improve this situation. In January 2014 the European 
Commission released an analysis of the components of final energy prices, making it possible to identify 
the measures required to reduce them. 
  There are measures to support industrial sectors at risk of being pushed off-shore because of carbon 
emission costs within Europe, and to protect vulnerable customers.
Spain 
  Rates paid by electricity consumers incorporate costs derived from the pursuit of strategic energy 
goals: environmental (aid for renewable energy and the costs of reducing CO2 emissions), industrial 
(interruptibility of large consumers and aid for co-generation), social (subsidies for domestic coal mining 
and for electricity in non-mainland territories), economic (recovery of tariff deficits from previous years), 
and public finance.
  Less than half the costs of electricity supply are directly related to providing the service, and the 
remainder to subsidies and taxes. With some supply costs below the European average, the end prices 
of electrical energy for Spanish consumers are higher than the Community average.
United Kingdom
  There is intense public debate on electricity and gas prices, with the involvement of political leaders 
and wide media coverage. This will be on the agenda in the run-up to the general election in May, with 
the government championing more competition and the opposition championing more regulation. 
  The recent decline in international gas prices partly offset the rising costs of the energy policy. There 
is pressure to cut prices, but the position is complicated by hedging and by the opposition’s promise to 
freeze prices. 
  The required future investment in networks and cleaner generation will also entail greater price 
pressure.
United States of America
  Tariff revisions currently under discussion or preparation reflect pressure by regulators to limit 
returns on capital, while at the same time maintaining the investments required to improve the network 
infrastructure. 
  The closure of coal plants, following the appearance of unconventional gas and new regulations being 
drawn up by the Environmental Protection Agency (EPA), may increase pressure on gas and electricity 
prices.
  Restrictions on transporting natural gas by pipeline in the Northeast may lead to volatility in electricity 
market prices during periods of extreme weather.

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  The development of smart grids, the rapid replenishment of supplies in the face of extreme weather 
conditions, and the integration of new energy sources into the system require major investment, which 
sometimes conflicts with the goal of limiting compensation to the companies.
Mexico
  Energy reforms were launched in 2014, with one of the key goals being to reduce system costs in order 
to lower electricity prices for end users. The reform is ongoing at the corresponding regulatory bodies. 
Brazil
  The unfavourable water situation is driving the use of more expensive thermal generation and an 
increase in energy price rises on the spot market.
  In early 2015, the ceiling price on the energy spot market was cut from €263.4/MWh (822 Brazilian 
reais/MWh) to €124.3/MWh (388 Brazilian reais/MWh), as a mitigation measure. 
  The unintended exposure of distributors to the short-term market led to a cash flow imbalance 
throughout 2014. This was recognised and alleviated by the government, earmarking specific funds that 
will be covered by upcoming tariff adjustments.
As an electricity operator in these countries, Iberdrola will maintain a spirit of cooperation with 
regulators of the electricity supply systems to help to define their growth and to operate within 
the established regulations, supporting frameworks that expand free-market activities and market 
transparency and incentivise required investments and efficient operations and that send efficient 
signals to consumers such that they are not penalised with costs unrelated to the supply of electricity.
Aspect: “Green bonds”
Management Approach
Iberdrola is the first Spanish company to issue “green bonds” in order to diversify its sources of 
financing. The difference with such bonds is that the issuer undertakes to invest the proceeds in 
sustainability projects such as: renewable energy, research into more efficient energy sources, cleaner 
cars, etc. There is also a commitment to regularly report on the return on investment in terms of the 
sustainability of such projects. 
On 24 April 2014, the Company issued a “Green Bond” targeted at SRI (Socially Responsible Investing) 
investors. The definition of the types of eligible projects for the proceeds can be found in the “Second 
Party Opinion on Iberdrola’s Green Bond”, prepared by Vigeo and available on the corporate website. 
It is important to note that before companies can issue such financial assets they must have a strong 
track record on sustainability, as recognised by Vigeo in the case of Iberdrola, as can be seen in the 
aforementioned document.
The Report on Green Bond Returns can be found in Annex 3 of this report.

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B.-
Environmental 
dimension

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The aspects dealt with in this chapter are the following:
Aspects of the GRI-G4 Guidelines
(Those indicators that require additional information per the electric utilities sector supplement are identified with (*))
Materials (*)
Energy 
Water (*)
Biodiversity (*)
Emissions (*)
Effluents and waste (*)
Products and services
Compliance
Transport of persons and products
Expenditures and investments
Supplier environmental assessment
Environmental grievance mechanisms
The information boundaries used in this chapter are defined in section G4-17 of this report.

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Introduction
In the environmental area, Iberdrola first applies the management elements described in the “General 
Management Approach” section of this report. It also applies other management elements as described 
below.
Specific Management Approach to the Environmental Dimension
Policies
Iberdrola has four specific corporate policies for environmental management:
  Sustainability Policy,
  Environmental Policy,
  Policy against Climate Change,
  Biodiversity Policy,
all approved by the Board of Directors and available at www.iberdrola.com.
Organisation
Reporting to the senior management of the Group, the organisations responsible for the environment 
adopt a decentralised structure, based on the subsidiarity principle, such that with the appropriate 
corporate coordination, all environmental matters are dealt with and resolved by the affected business in 
each geographic region. The following are available for this purpose:
  The Innovation, Environment, and Quality Division, which proposes the management policies, 
models, and systems, sets environmental guidelines and the targets associated therewith, publicises 
environmental performance, and coordinates all environmental action of the Company. This Division 
reports directly to the Office of the Chairman.
  Environmental Divisions at the businesses are responsible for maintaining the environmental 
management systems, mainly based on the ISO 14,000 standard, including compliance with legal 
obligations, setting environmental goals, making plans for improvement, and generally performing all 
operational duties relating to the environment within the scope of the business in each region.
Management systems
Iberdrola develops its environmental dimension in accordance with an Environmental Management 
System, the purpose of which is to create a common framework that allows for the coordination of the 
different environmental management systems of each of the businesses. The main elements making up 
this model are:
  Corporate environmental policies described above.
  Five environmental directives around which the performance indicators are evaluated: 
  Preserve biodiversity
  Prevent pollution
  Achieve operational excellence

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  Optimise waste management
  Collaborate with stakeholders
  Environmental performance indicators, based on GRI methodology and set forth in an environmental 
scorecard, which allows for an analysis of the environmental performance of the Company and each of 
its businesses.
  Environmental goals and action plans of the Group.
  Management of environmental risks through identification and preventive management thereof 
through mitigation and control measures.
  Management of the public information-reporting needs of the Company (sustainability report, 
participation in sustainability roadshows, etc.).
  Specific environmental management systems (EMS) of the businesses, based on the UNE-EN ISO 
14001:2004 and EMAS standards. 
The application of this management model is reinforced with a series of complementary activities, 
such as: monitoring of environmental regulation at the regional level; specific training of employees on 
environmental aspects, dedicating more than 15,800 hours to this type of training in 2014; the supplier 
tracking and information model; the consideration of the environment in the Company’s Comprehensive 
Risk System; the Incident and Anomaly Information System; and a long-standing relationship with the 
various stakeholders involved, through various means of communication, such as environmental forums.
Furthermore, it should be pointed out that to calculate the indicators of this report, the data are based 
on direct measurements, in accordance with the corresponding protocols. In those cases in which it is 
not possible to perform these measurements, widely recognised international normalisation standards 
are followed to estimate and calculate the data. It is also important to consider that 84.1% of the Group’s 
installed capacity is subject to management systems under the UNE-EN ISO 14001 and UNE-EN ISO 
9001 standards.
Certifications
All annual certifications were renewed in 2014, including the audit monitoring the certification of the 
Global Environmental Management System, which was implemented in accordance with the UNE-EN ISO 
14001:2004 standard in Spain, and the renewal of the greenhouse gas inventory certificate in accordance 
with the UNE ISO 14064-1:2006 standard. 
With these activities, 85% of the Group’s energy was produced under certified environmental 
management systems in 2014. More information is available at www.iberdrola.com.

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Aspect: Materials
Management Approach 
The consumption of fuel (natural gas, coal, etc.) in the production of electricity is deemed significant, 
and lesser quantities of chemical products, lubricating oils, refrigerants, and other products are also 
consumed. 
Iberdrola’s strategy, based on the use of production technologies with lower emissions, is achieving a 
reduction in the consumption ratios for fuel, energy, water, and other materials per GWh produced (i.e. 
eco-efficiency). 
Chemical products are managed in accordance with good management practices, avoiding the risks of 
damage to the natural environment.
Polychlorinated biphenyls (PCBs), potentially harmful substances used by the manufacturers of electric 
equipment for their optimal characteristics such as dielectric insulation, have a residual presence in the 
activities of Iberdrola. As specified by international treaties on the management of chemical products 
that are damaging to the ozone layer, the use thereof has been restricted in most countries since 2010, 
for which reason Iberdrola’s policy has been to eliminate their presence at its facilities.
G4-EN1 Materials used by weight or volume
Use of materials
The basic materials that Iberdrola uses to produce energy are fuels, the consumption of which is set 
forth in the following table: 
Basic materials
2014
2013
Expanded boundary
Coal (t)
5,292,521
5,504,487
Fuel (t)
34,705
35,188
Natural gas (Nm3)
9,819,978,549
8,504,282,590
Gas-oil (m3)
54,480
15,221
Uranium (Tep)
6,653,787
6,239,144
Biomass and WDF12  (t)
3,357
2,134
12  Waste Derived Fuel (WDF): the Tarragona Power combined cycle plant and some cogeneration plants in Spain can operate with 
this fuel.

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Distribution of fuels 
consumed (%)
Coal
Fuel-oil
Natural Gas
Gas-oil
Uranium
Biomass and 
WDF
Expanded boundary
Spain 
21.4
100
8.2
8.2
100
98.4
United Kingdom
78.6
0
13.1
1.8
0
1.6
United States 
0
0
4.7
0
0
0
Mexico
0
0
70.3
89.4
0
0
Brazil
0
0
3.7
0.5
0
0
Other countries
0
0
0
0
0
0
Generation by technology 
and country (GWh)
Spain
United 
Kingdom
United States
Mexico
Brazil
Other 
countries
Expanded boundary
Combined cycles
1,189
5,459
1
34,557
921
0
Wind
12,263
3,110
14,869
671
550
1,454
Nuclear
24,431
0
0
0
0
0
Coal
2,472
9,630
0
0
0
0
Hydroelectric
17,742
716
392
0
1,786
0
Cogeneration
2,010
6
2,287
1,224
207
0
Other technologies
945
0
0
0
0
0
Biomass and WDF
0
0
0
0
0
0

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As shown in the following table, 80% of the expanded boundary is achieved using local sources of 
energy, available in the country where the electricity is generated.
Production with 
local sources of energy
(%)
Expanded boundary
80
Spain13
92
United Kingdom
59
United States
87
Mexico
63
Brazil
100
Other countries
100
There is also consumption of chemical products, which are used (to a much lesser extent) in the 
generation processes, basically in tasks consisting of the purification of gases and effluents and the 
reconditioning of equipment. The consumption of these types of products and others such as oil and 
grease for maintenance can be viewed at www.iberdrola.com.
Elimination of PCBs
Polychlorinated biphenyls (PCBs) are substances that are not produced by the Company’s activity, but 
rather were sold during the last century by manufacturers of electrical equipment and used mainly 
in transformers and condensers due to their optimal characteristics as a dielectric insulation. There 
are PCBs at the Group’s facilities in Brazil, with a residual presence in Spain and the United States of 
America, mainly within transformers with pure pyralene oil, condenser batteries, and auxiliary service 
transformers. 
In Spain, the process that commenced in 1999 to eliminate all equipment manufactured with PCB fluids 
or contaminated with a concentration exceeding 500 ppm of PCB has concluded. There is currently 
no pyralene transformer or transformer contaminated with more than 500 ppm of PCBs. Although 
the period set by law for the elimination thereof ended in 2010, Iberdrola maintains a service for the 
analysis, withdrawal, and elimination of equipment containing PCBs, including the performance of a free 
diagnosis with no commitment. 
There are also no transformers in the United States of America that contain PCBs. The use of equipment 
with PCBs must be eliminated in the other countries by the year 2025, pursuant to the Stockholm Treaty.
13  Nuclear fuel acquired from the Spanish company Enusa is considered local.

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At the Elektro subsidiary in Brazil, 46 t of pyralene and PCB-contaminated equipment was managed 
during 2014, and there are 611 t to be eliminated in the coming years. Only 1.13% of the transformers in 
operation contain these substances.
At the affiliate Celpe in Brazil, there are 9 transformers with a PCB content of between 50 and 200 mg/
kg, which is only 1% of all transformers.
G4-EN2 Percentage of materials used that are recycled input materials
There is no substitute in the market for the principal materials used by Iberdrola, for which reason 
management focuses on the efficient use of energy, water, and chemical products, through the best 
available technologies and optimising the current systems. 
At some Mexican plants and at the Klamath plant in the United States of America, treated waste water is 
reused in the cooling systems, avoiding the use of river or dam water, while at the same time engaging in 
activities to improve the efficient use of energy, as described in indicator G4-EN6.
Biomass and waste derived fuel (WDF) are included as recovered material, representing 0.01% of this 
type of fuel consumed during the year, as reflected in indicator G4-EN3. 
Aspect: Energy
Management Approach 
Iberdrola takes action and works throughout the entire energy chain in order to optimise the use of 
energy:
  Efficiency in production: introducing the newest and most advanced equipment and technology.
  Efficiency in transmission and distribution: making substantial investments to reduce losses from 
grids. 
  Efficiency at the final point of use: adopting measures to reduce consumption within the Company’s 
own facilities and promoting the rational use of energy by users, who are also offered a wide range of 
products and services linked to energy conservation. 
This information is expanded upon in indicators G4-EN3 to G4-EN7.
Iberdrola is subject to applicable regulations in all of the countries or regions in which it has a presence, 
with the most significant being legislation regarding environmental assessment, trading in emissions 
rights, water management, and air quality.
G4-EN3 Energy consumption within the organisation 
Internal energy consumption, which includes all of the Iberdrola Group’s facilities, buildings and offices, 
is calculated by adding together the following items:
  Consumption of fuels from non-renewable and renewable (biofuel and biomass) sources.
  Total consumption of electricity and other fuels for heating purchased from third parties at buildings/
offices.

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  Consumption of electricity purchased from third parties at generating facilities. 
and subtracting:
  Steam sold to third parties.
The following table shows the evolution of Iberdrola’s internal energy consumption in recent years:
Internal energy consumption (GJ)
2014
2013
Spain
347,816,948
347,277,870
United Kingdom
150,175,505
164,069,056
United States 
18,455,787
22,753,513
Mexico
269,059,484
252,754,800
Brazil
43,729
39,518
Other countries
18,004
20,319
Basic boundary
785,570,456
786,915,076
Expanded boundary
797,810,770
798,411,786
The largest part of Iberdrola’s energy consumption is fuel consumption. The following table shows this 
consumption in recent years:
Fuel consumption (GJ)
2014
2013
Expanded boundary
Generating plants
735,649,366
726,388,577 
Cogeneration
56,051,306
64,146,582 
Non-generating
1,527,726
3,471,219
Total
793,228,398
794,006,378 
The non-generating facilities are: Daldowie (thermal drying) and Hatfield (gas storage) in the United 
Kingdom, and the Enstor plants (gas storage and distribution) in the United States of America.

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Fuel consumption by primary source (%)
Fuel consumption by primary source (%)
2014
2013
Expanded boundary
Natural Gas
47.17
48.54
Uranium
35.88
34.40
Coal
16.74
16.84
Fuel-oil
0.17
0.18
Gas-oil
0.03
0.03
Biomass/WDF
0.01
0.01
Fuel consumption at the generation plants (combined cycle, conventional thermal, nuclear, cogeneration, 
and biomass) and at the non-generation plants indicated above is taken into account.
Internal consumption for generation (GJ) 
The electricity used for internal consumption (total consumption of energy generated internally and 
imported from the grid) at the production facilities (conventional thermal, combined cycle, cogeneration, 
nuclear, renewable, and biomass, together with the energy used for pumping at the hydroelectric 
stations) is reflected in the following table: 
Internal consumption for generation (GJ)
2014
2013
Expanded boundary
Generating plants
10,644,748
 9,119,792
Cogeneration
1,378,411
 839,846
Hydroelectric generation
13,591,463
16,547,527
Renewables
295,049
8,207,344
Non-generating plants
86,112
86,908
Total
25,995,783
27,261,511

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Energy consumption in buildings
Energy consumption in buildings (MWh)
2014
2013
Expanded boundary
176,310
182,604
The systems for monitoring and managing the consumption of energy in buildings improved during 2014, 
especially in Spain, the United Kingdom, and the United States of America, as described in indicator G4-
EN6.
G4-EN4 Energy consumption outside of the organisation
The most significant consumption of energy outside of the organisation is consumption associated 
with the transportation of fuel, the transportation of products by suppliers, and the transportation 
of employees both for business as well as from their home to their workplace, for which there is 
information regarding the distances covered and the amounts of fuel transported. Work is currently 
being performed to obtain appropriate conversion factors to determine the energy consumption 
corresponding to this indicator in units of energy. The data on CO2 emissions caused by these activities 
are reflected in indicator G4-EN17.
G4-EN5 Energy intensity 
Fossil fuel consumption (tep/GWh) 
The following table shows fuel consumption at the thermal generation plants over the net production of 
such plants. 
Fossil fuel consumption (tep/GWh)14
2014
2013
Expanded boundary
202
200
Internal Energy Consumption (GJ/GWh)
The following table represents total internal energy consumption within the total net production of the 
Group.
Intensity of internal 
energy consumption (GJ/MWh)
2014
2013
Expanded boundary
5.74
5.85
14  Conversion factor used: 1GJ= 0.023888889 Tep.

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G4-EN6 Reduction of energy consumption
The generation of hydroelectric energy and other renewables, together with the supply of steam to the 
industrial client at the cogeneration facilities, avoided an equivalent consumption in non-renewable 
primary energy of 208,289,268 GJ/year.
Areas
Actions and initiatives
Energy (GJ/year)
2014
2013
Expanded boundary
Renewables
Primary energy savings through the production of 
renewable energy
121,902,948
122,035,536
Hydroelectric
Primary energy savings through hydroelectric 
generation
74,818,080
65,843,402
Cogeneration
Savings through the supply of heat energy (steam) 
within the Group
11,568,240
13,784,634
Network efficiency
Savings from network efficiency in Spain, United 
States, and Brazil
1,888,426
2,300,423
Retail
Spain
Green energy supplied
1,416,306
1,736,472
USA
Green energy supplied
235,055
246,005
Efficiency of the energy power grid
Indicator EU12 of this report shows the electricity losses of the transmission and distribution networks 
of the Iberdrola Group. All companies of the group take action to control or reduce such losses, 
including:
  Reduction in the length of lines through construction of new substations and increase in power of 
existing substations, increase in voltage and improvement of power factor, implementation of remote 
management, and maintenance of grids and substations.
  Supply points inspections and contract management improvements, customer monitoring, regulation 
of clandestine hookups, replacement of electromechanical meters with electronic meters, etc.
  Strengthening of field activities with supply point inspections and first-level reviews to reduce 
administrative and non-technical losses.
Efficiency in thermal generation
Various actions have been taken at various plants to avoid leaks, reduce internal consumption, optimise 
start-up time and procedure, and install recirculation systems, among others.

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It should be pointed out that approximately 7,300 GJ were saved due to actions in Spain, such as at 
the Escombreras Combined Cycle plant, and as a result of the redesign of the processes; 18,709 GJ 
were saved at the Aceca Combined Cycle plant due to changes in the start-up procedure; and a saving 
of 6,184 GJ was achieved at the Garoña Nuclear Plant due to the optimisation of the systems required 
for the implementation of requirements and tests for monitoring and control of the heating and air 
conditioning. 
Efficiency at buildings 
The implementation of efficiency measures has continued at the buildings and offices of the Company 
throughout the world. Work is continuing to improve acclimatisation (heating and air conditioning) 
performance, thermal insulation and lighting of buildings, as well as automation of the facilities 
associated therewith. 
In Spain, there have been renovations of acclimatisation units and interior lighting at several buildings 
with an energy saving of 956 GJ. At Iberdrola Renewables US, a saving of 1,877 GJ was achieved due to 
monitoring the turning on and off of lights at night.
G4-EN7 Reductions in energy requirements of products and services 
Efficient products and services 
Fostering eco-efficiency (reduction of environmental impact per production unit) forms part of the 
Group’s strategy. Its goal is to encourage the responsible consumption of energy and to foster the use of 
renewable generation sources in order to help to reduce emissions of CO2 into the atmosphere.
In addition to electricity and gas, Iberdrola sells a wide range of products and services that favour 
efficiency, energy savings, and care for the environment.
Energy savings of green products and 
services (GJ)
2014
2013
Expanded boundary
Solar photovoltaic energy
662,400
668
Energy audits and plans 
48,870
103,068
Energy management systems
0
25,448
Other savings and efficiency activities
4,193,492
252,286
Total 
4,904,762
381,470
The increase in solar photovoltaic power production is mainly due to Mexico, with production of 14,400 
GJ, and South Africa, with a 96 MW photovoltaic plant with annual production of 648,000 GJ.

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The increase in other savings and efficiency activities is mainly due to 3,415,946 GJ corresponding to 
wind farms at external customers. A total of 349.8 MW has been installed, with 18 MW corresponding to 
Poland, 80 MW to Romania, 101 MW to South Africa, 76.8 to Kenya, and 74 NW to Honduras. 
To encourage and promote energy efficiency, Iberdrola uses various means, such as advertising 
campaigns and collaboration agreements with consumer associations, businesses, and governments. It 
also contributes to the care of the environment with:
  Management of internal waste and customer waste.
  Requiring suppliers to comply with environmental laws.
  Promoting electronic billing as an ecological alternative to the use of paper, through awareness-raising 
campaigns, mailings, promotions, APP for customers, etc.
Spain: www.iberdrola.es/clientes/index
Brazil:  www.elektro.com.br
United Kingdom:  www.scottishpower.co.uk/energy-efficiency/ 
United States:
NYSEG:  www.nyseg.com/Energyefficiencyprograms/default.html
RG&E: www.rge.com/Energyefficiencyprograms/default.html
CMP: www.cmpco.com
Sustainable mobility
Iberdrola continued working in 2014 on the development and implementation of the electric mobility 
concept, in harmony with its strategy of environmental protection, fostering of clean sources and 
sustainable development, and its commitment to innovation and to its customers, including:
  The Green Mobility solution with Iberdrola’s Green Charge and eElectric Vehicle, as well as the Green 
Energy solution.
  Agreements and alliances reached with auto manufacturers (Peugeot, BMW, Seat, etc.).
  Active participation in standardisation groups and in R&D+i projects for electric mobility.

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Aspect: Water
Management Approach
Water requires energy and energy requires water; which makes it a necessary resource for the 
activities of the Group. Iberdrola’s awareness regarding the sustainable use of water is a reality; it is 
included in one of the 5 pillars of activity within the commitment made by the Group, as reflected in the 
Sustainability Policy.
To avoid significant impacts, the maximum limits of inland water collection and consumption, and the 
permits associated therewith, are established and controlled by the government of each country. The 
government also establishes and controls surface level limits and ecological flows at the hydroelectric 
generation reservoirs. 
In Spain and the United Kingdom the operation of the hydroelectric plants conforms to the requirements 
of the Water Framework Directive, while the thermal generation plants operate under the Integrated 
Pollution Prevention and Control Directive. In order to comply with this regulation, water is included as 
an important natural resource within the environmental management systems.
Within the Group’s activities, the largest volume of water collection occurs at the thermal plant cooling 
systems, of which a small part is consumed in the process (by evaporation) the majority is returned to 
the natural environment, following advanced treatment to ensure its quality, whilst the remainder is used 
for internal services and other processes.
Continuous improvement is sought for processes of the facilities (indicator G4-EN10), so that the 
extraction and consumption of water is the minimum possible and has minimal impact on the 
environment. In addition, extraction of water is avoided in areas with water stress, and attempts are 
made to recycle and reuse water to the maximum extent possible.
In addition to seeking improvement in processes, there is significant concern for the efficient and 
responsible use of running water by employees at offices and control buildings. For this purpose, there 
are awareness-raising campaigns and the installation of efficient systems to reduce the consumption of 
water, such as taps with photoelectric cells.
In recent years, the replacement of less efficient production technologies such as conventional thermal 
generation (coal and fuel-oil) by renewables and combined cycles has led to a reduction in water 
consumption per GWh produced. The intensity of water consumption at the Group by 2014 sales was 
61% less than the other utilities.15
15  https://www.cdp.net/Documents/Consultation/2014/CDP-priority-sectors-water-2015.pdf

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G4-EN8 Total water withdrawal by source
In this indicator, tables will be used to show the use made of water in each of the processes of the 
various technologies and facilities, and the sources thereof. 
Water use in thermal generation
Cooling, process and auxiliary service systems at thermal plants are the Group’s systems that require 
the largest use of water for their operation. This resource is obtained mainly from surface water, 
seawater or estuaries, and it is partially returned to the environment as steam and the rest included in 
discharges from the facilities.
The following shows the extraction and total discharge of water at the thermal generation facilities (coal, 
combined cycle, nuclear, and cogeneration) in 2014, and the volume used in each part of the system.
Water use (hm3)
Total withdrawal
Evaporation in 
cooling
Withdrawal process 
and auxiliary
 services
Discharge 16
Expanded boundary
Generating plants
2,729.34
79.75
1,490.65
1,181.38
Cogeneration
7.44
2.18
6.62
2.16
Total17-18
2,736.78
81.93
1,497.27
1,183.54
16    The total discharge figure includes the return from cooling, the return of water from processes used, and rainwater collected 
at some thermal facilities without an independent storm sewer system. 
17     Cooling systems in the UK are open circuits or aero-condensers, for which reason it is estimated that the evaporated water 
volume is practically nil, except for steam from cogeneration. Figures include the Daldowie thermal drying facility and the Hatfield 
gas storage unit. 
18     Data is not provided for the Energyworks Brazil or Capuava Energy cogeneration plants because water and steam are provided 
by the industrial user and there is no water treatment at the facilities.

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The water extracted for cooling thermal plants may be inland water or seawater. In turn, cooling can be 
performed in a closed circuit, by a cooling tower where part of the withdrawn water is evaporated, or in 
an open circuit, fully returning the withdrawn water to the environment without any process that could 
modify the physical chemical nature of the water other than a slight temperature increase due to its use 
in the cooling process. As can be seen in the following table, most of the withdrawn water is seawater or 
salt water.
Source of withdrawal of cooling water
Gross water with-
drawal (hm3)19
Net water with-
drawal (hm3)20
Expanded boundary
 Sea and salt water
2,003.73
11.27
Rivers and groundwater
291.18
17.23
Lakes and reservoirs
382.54
45.27
Purification of waste water
8.21
8.16
Total
2,685.66
81.93
Water consumption at offices and control facilities
Water consumption at offices and 
facilities (m3)
2014
2013
Expanded boundary21
365,932
445,022
19  Gross water withdrawal: total volume of gross water withdrawal for cooling. 
20    Net water withdrawal: volume of water evaporated in cooling. 
21    In Spain, includes offices, substations and control buildings of wind farms.

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Water consumption has decreased in 2014 by the amounts shown in the Information Supplementary to 
the Sustainability Report.
Water use
In addition to the withdrawal of water in the thermal generation and cogeneration facilities, water is used 
in wind generation systems and at offices, although to a lesser extent. The following table provides a 
breakdown of the withdrawn volume per withdrawal source.
Source of gross water withdrawal (m3)
2014
2013
Expanded boundary
Surface water (sea, river, lakes, 
reservoirs, wetlands)
2,725,254,208
3,044,885,843
Groundwater
957,770
1,395,523
Rainwater directly withdrawn and stored
1,047
0
Purified waste water 
12,294,178
12,737,246
Municipal water supply or supply from 
other water companies
6,036,976
6,857,370
Total
2,744,544,180
3,065,875,982
Use of water is defined as water withdrawn minus water discharged (G4-EN22) into the environment (salt 
water is included in water discharged). 
Water use22
2014
2013
Expanded boundary
Total water use (hm3)
70.69
133.12
Water use/overall production (m3/GWh)
508.98
976.00
Water use/overall sales (m3/ $)
1.95
3.11
Water use/overall sales (m3/ €)
2.35
4.28
22  Does not include thermal generation in the United Kingdom.

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Water cycle in hydraulic generation23
Water used in hydraulic generation is not considered withdrawn and thus it is shown in a separate table. 
The table below shows net water used in hydraulic generation, defined as turbined water less pumped 
water, in Spain, the United Kingdom, and Brazil. 
Water use in hydraulic generation (hm3)
2014
2013
Expanded boundary
Net water use 
88,222.92
96,816
Volume of pumped water 
3,519.66
4,350
Annual increase of reservoir water 
1,031.20
2,395
 
Net hydraulic production (GWh)
2014
2013
Basic boundary
18,850.15
15,494.80
Expanded boundary
20,635.71
17,284.00
Additional information, such as withdrawal locations and discharges from the thermal facilities, can be 
found at www.iberdrola.com.
G4-EN9 Water sources significantly affected by withdrawal of water
No incidents were recorded during financial year 2014 that significantly affect water resources or the 
habitats associated with the water-collection points, which are for the most part significant masses of 
fresh water or salt-water. As can be seen in indicator G4-EN8, 74.61% of the water withdrawn is salt-
water or brackish water and does not occur in protected areas.
At the La Laguna and Monterrey combined cycle plants in Mexico and at the Klamath cogeneration 
plant in the United States of America, the water collected for cooling comes from municipal wastewater 
treatment stations and is treated at the Company’s plants, producing a positive impact by returning 
water to the environment that is of higher quality than that withdrawn. 
All water collection is strictly regulated by government authorities, which assign permits and determine 
the maximum allowed volumes of collection to ensure that there are no significant impacts. 
23  Hydraulic generation in the United States, which is 1.15% of installed hydraulic capacity, is not included because the 
information is not available. Hydraulic generation in Brazil in which the Company has an interest is included for 2014.

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The Iberdrola Group does not have any plants located in areas considered to have water stress. These 
areas can be seen on the following websites:
www.fao.org/nr/water/aquastat/data/query/results.html	
www.grida.no/publications/other/ipcc_tar/?src=/climate/ipcc_tar/wg2/180.htm
G4-EN10 Percentage and total volume of water recycled and reused
94% of the water collected at thermal generation and cogeneration facilities was returned to the 
receptor environment in a physicochemical condition that allows it to be utilised by other users without 
affecting the natural environment. 3% of the collected water was consumed and/or retained in the 
various processes and 3% was returned to the environment in the form of steam generated at the 
cooling systems of the thermal power plants.
In the case of cogeneration and the Tarragona Power combined cycle plant, part of the withdrawn water 
is reused as steam, supplying thermal energy equal to 3,213.4 GWh, which is used in industrial processes 
or heating systems.
The reuse of wastewater for the cooling systems of some plants in Mexico (Monterrey, La Laguna) and in 
the United States of America (Klamath) is also noteworthy. At the La Laguna plant, all water withdrawn 
is wastewater, which is filtered at the facility. And at the Klamath plant in the United States of America, 
93.9% of treated wastewater was used for all of its processes. 
At the thermal plants with closed or semi-open systems, water withdrawn is reused at the cooling 
towers an average of approximately three cycles per m3 before being purged. It is therefore estimated 
that reuse was 2,045.80 hm3.
At some of ScottishPower’s wind farms, the control buildings have rooftop rainwater collectors and 
storage tanks to re-use the water. 
Aspect: Biodiversity
Management Approach 
The biological resources of the earth are fundamental for humanity’s economic and social development. 
Iberdrola’s activities require certain natural resources (water, fossil fuels, wind, solar energy) to 
obtain electrical energy, which is subsequently distributed and sold over a broad geographic area. 
The development of these activities causes interactions with various ecosystems, landscapes, and 
species, mainly during the phases of construction and operation of facilities, as shown in the document 
Environmental Effects of the Electric Energy Production and Distribution available at www.iberdrola.
com.

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The aim is to carry out the Company’s activities and establish new projects in a sustainable manner, 
which allows for balanced coexistence, conserving and protecting natural resources. Biodiversity and 
ecosystems have a leading role in the business strategy, reflected in various instruments: 
  Biodiversity Policy, applicable to Iberdrola’s entire geographical area, and policies specific to some 
subsidiaries, such as ScottishPower, Iberdrola Renewables USA, and Elektro.
  Environmental monitoring and control plans, and implementation of management systems, most of 
them homologated to ISO 14001 or EMAS standards, in order to prevent and control environmental risks.
  Operation of existing facilities in compliance with the permits granted by the environmental regulatory 
authorities of each region, and subject to restrictions and obligations that ensure the protection of the 
local environment.
  Management focus on new infrastructure projects, not only to comply with laws applicable to the 
handling of projects, but also taking one step further, by consulting various stakeholders regarding 
the projects prior to commencing work and incorporating good construction practices. Environmental 
Impact Studies (through mechanisms for the identification and mitigation of impacts that take into 
account various alternatives and establish corrective measures to avoid, mitigate or offset possible 
harm) are prepared and implemented prior to beginning construction. Promotion of species and 
habitats by managing positive conservation and research of the sites is also undertaken within a wide 
environment. Activities are both regulatory as well as voluntary, with the goal of obtaining a positive net 
balance with respect to the environment.
Aspects relating to biodiversity are managed through four priority lines of action:
1. Mediation, for the protection, conservation, and sustainable use of the environment (air, water, soil, 
fauna, flora, and landscape).
2. Information, through impact assessment and the development and application of guidelines on 
biodiversity for new projects.
3. Relations with stakeholders.
4. Commitment to form, make aware of, and communicate both internally and externally.
These lines of action group together the basic principles of action defined in the Sustainability Policy, 
and are put into practice with specific activities that are classified in the following categories:
a) To avoid and/or mitigate the impact and restore natural assets: includes preventive, palliative and 
compensatory actions.
b) Impact assessment: includes pre-construction studies, monitoring during and after construction, as 
well as studies of specific species.
c) Networking: includes cooperation, sponsoring and financing activities.
d) Awareness-raising and communication: includes internal and external training and education, awards, 
publications, etc.
Iberdrola has worked many years with biodiversity programmes and plans, with a permanent 
management and attending the following action lines:
  Fauna and flora management at electricity distribution lines.

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  Biodiversity plans: Biodiversity Action Plans (BAPs) in the United Kingdom. (www.scottishpower.com/
pages/generation.asp)
  Habitat management plans at ScottishPower Renewables.
  Avian and Bat Protection Plan (ABPP) at Iberdrola Renewables USA.
  Environmental Programme in the Generation Business. Gathers numerous activities to reduce the risk 
of environmental impact (emissions, noise, discharges, etc.) at thermal generation facilities. 
  Bird Migration Programme, sponsored by Fundación Iberdrola www.fundacióniberdrola.org  // www.
migraciondeaves.org. 
  Habitat Compensation Programme at the Maine Power Reliability Program project, of the subsidiary 
CMP – www.mainpower.com/environmental-steward.htm.
For more information, go to the website and see the 2011-2013 Biodiversity Report, which sets forth the 
management approach, strategies, and progress in the activities implemented by the various businesses 
and in regions in which Iberdrola has a presence.
G4-EN11 Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high 
biodiversity value outside protected areas 
Within the activities of the Group, the infrastructure occupying the largest part of the territory are dams, 
electrical power lines, and wind farms.
In all, the presence of the Group’s dams in protected areas represents 1.66% (18,972 ha) of the total 
surface area thereof. Regarding power lines, in Spain they have increased compared to 2013, since 
they include more protection figures than in previous years. Within the Renewables Business, there is 
an insignificant presence of wind farms in protected areas such as the Nature 2000 Network, and the 
facilities pre-date the declarations of protected space. There are also some wind farms near these areas.

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Facility
Location with 
respect to 
protected area
Affected surface area/
length
Type of protection 24
Expanded boundary
Spain
Reservoirs
Interior
18,972 ha
Biosphere reserves, Ramsar wetlands, Nature 2000 
Network, national parks, and nature parks. 
Electric lines 
Interior
18,229 km 
(16.05 %)
Nature 2000 Network, Ramsar wetlands, national parks, 
and Biosphere reserves.
Substations
Interior
83 facilities 
(8.76% of the total)
Nature 2000 Network.
Transformer 
centres
Interior
4,973 centres (5.25% of 
total centres
Nature 2000 Network.
Wind farms 
Interior
139.14 ha
Nature 2000 Network (insignificant presence compared to 
total. There are also some min-hydro plants.)
United Kingdom
Thermal 
and hydro 
generating 
facilities
Interior or nearby
3,264 ha (12 production 
centres)
Ramsar wetlands, SPA, SAC, and SSSI.
Electric lines 
Interior
2,891 km (8%)
NSA, SPA, SAC, Ramsar, NNR, SSSI.
Substations
Interior
 8,799 centres (8.14% of 
the centres)
NSA, SPA, SAC, Ramsar, NNR, SSSI.
Wind farms
Adjacent
4 wind farms
Nature 2000 Network and SAC, SSSI.
Wind farms
Partially interior
 12 wind farms
11 wind farms located partially within covered peat bogs, 
habitat included in the UK Priority Biodiversity Action Plan 
and in Annex 1 of the EU Habitats Directive. One wind farm 
located in a wintering area for swans and geese.
Wind farms
Nearby
283 ha
The planting of 283 ha of native woodland habitat included 
in the UK Priority Biodiversity Plan is under development at 
9 wind farms.
24  Names of principal protected areas: 
SPA: Special Protection Area for birds, pursuant to the EC Birds Directive. 
SCI: Site of Community importance, pursuant to the EC Habitats Directive. 
SAC: Special Area of Conservation, pursuant to the EC Habitats Directive. 
Ramsar: Wetlands of international importance, pursuant to the treaty signed in Ramsar. 
SSSI: Site of Special Scientific Interest (UK). 
NSA: National Scenic Areas (UK).  
NNR: National Nature Reserve (UK).

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Facility
Location with 
respect to 
protected area
Affected surface area/
length
Type of protection 24
United States 
Electric lines
Partially interior
445.1 km
(7.63%)
Protected areas designated by each state, which may be 
Biosphere Reserves, forests, national parks, or national 
wildlife refuges, and those with high ecological value even 
though they may not have the same level of protection. 
Brazil
Electric lines
Interior
119.9 km
Environmental protection areas.
Hydro plants 
Interior or nearby
6,876.14 ha
Areas protected by Brazilian law.
Greece
Wind farms
Interior
15.64 ha
Nature 2000 Network (represents 0.0004% in Greece).
Hungary
Wind farms
Interior or nearby
2 wind farms
Near Nature 2000 Network areas, one included in a national 
park.
Italy
Wind farms
Interior or nearby
3 wind farms
SAC and SEPA.
Iberdrola provides additional information by geographic area at www.iberdrola.com. Information is also 
provided in the Biodiversity Report 2011-2013.
G4-EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas 
and areas of high biodiversity value
The document entitled Environmental Effects of Electric Power Production and Distribution, which is 
available at www.iberdrola.com, reflects the most significant potential impacts on biodiversity arising 
from the Group’s activities, products, and services. The interactions are produced during the different 
phases of the life of the facilities:
24  Names of principal protected areas: 
SPA: Special Protection Area for birds, pursuant to the EC Birds Directive. 
SCI: Site of Community importance, pursuant to the EC Habitats Directive. 
SAC: Special Area of Conservation, pursuant to the EC Habitats Directive. 
Ramsar: Wetlands of international importance, pursuant to the treaty signed in Ramsar. 
SSSI: Site of Special Scientific Interest (UK). 
NSA: National Scenic Areas (UK).  
NNR: National Nature Reserve (UK).

136   /   Part ii. Specific standard disclosures 
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Construction phase:
  Insertion of vehicles and machinery.
  Opening of pathways and changes in vegetation.
  Prolonged human presence (which temporarily affects the behaviour of species of fauna, and is 
generally reversible).
  Changes in landscape.
Operation phase 
  Emissions
  Changes in the natural system of rivers and barrier effect of hydroelectric developments (affecting the 
ecosystems and habitat of certain species).
  Animal mortality due to collisions and electrocution.
  Changes in vegetation to maintain power line corridors, etc.
  Discharges and spills.
Decommissioning Phase
  Use of machinery and vehicles to remove and demolish existing facilities.
  Reforestation and reinsertion of indigenous species.
  Recovery of environment.
Prior to the construction of a facility, the possible environmental impact is analysed, with a forecast and 
assessment. Once the risks of causing an environmental impact are known, the customary practice 
within the Group is to avoid locating new infrastructure either within protected areas or within areas 
having a high biodiversity value even though not protected. If the impact is significant, the project 
is modified to the greatest extent possible, with the adoption of the best techniques available and 
measures identified as necessary to correct and minimise the impact. If full mitigation is not possible, 
remedial measures are implemented.
100% of the projects so requiring them are subject to environmental impact assessment and public 
consultations. In all cases, work is carried out jointly with stakeholders in order for the environmental 
impact to be as low as possible. Some examples can be seen at the following links:
www.iberdroladistribucionelectrica.com 
www.spenergynetworks.com/pages/community_consultation.asp
www.scottishpowerrenewables.com/pages/developing_renewable_energy_responsibly.asp
www.mainepower.com/community-relations.htm
Control of environmental impacts does not end upon completion of the facility, but rather continues 
during the operation and decommissioning phases thereof.

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EU13 Biodiversity of offset habitats compared to the biodiversity of the affected areas
Prior to the construction of new facilities, environmental studies are conducted to collect environment 
characteristics and possible impacts thereon, with the subsequent implementation of the required 
corrective measures identified in the various environmental studies. Offset areas are intended to improve 
conservation status and the biodiversity of species and habitats with respect to the areas affected by the 
presence of the Group’s facilities. In addition, various activities are performed to improve biodiversity, as 
described in the Biodiversity Report and in indicator G4-EN13. 
Below are some of the habitats that are being offset, the majority of the projects already commenced 
and being continued during 2014: 
  Damhead Creek, in the United Kingdom, manages a 32 ha mitigation area for its biodiversity 
communities, including wetlands, coastal grasslands, and woodland and bush areas. It also has 
protective measures to improve the conditions of the principal species, such as the water rat. 
  In the United Kingdom, the Company is studying the movement of the icthyofauna in rivers where 
it has installed hydroelectric plants, in order help the passage thereof by avoiding the placement of 
obstacles in the way of, for example, the migration of Atlantic salmon at the Galloway hydroelectric 
plant. Measures are also being taken to favour the presence of the native eel to fight the invasive species 
that is displacing it, the signal crayfish (Pacifastacus leniusculus).
  In 2014, ScottishPower also implemented a habitat improvement under a new 132 kV line construction 
project in Northern Wales, with the creation of wetlands in the Marches Nature Improvement Area.
  CMP, an Iberdrola USA subsidiary, is reconditioning power lines to minimize the impact on the nesting 
and reproduction process of the fishing eagle. It is also collaborating with the US Fish and Wildlife 
Service in the identification of the New England rabbit (Sylvilagus transitionalis), whose population is 
decreasing, under the power line corridors.
  Habitat Management Plans (HMPs) are being implemented in the areas adjacent to wind farms in the 
United Kingdom, giving rise to an offset area of 8,000 ha. 
  Offset areas at fifteen wind farms in the United States of America, with a total surface area of 348 
ha, are maintained and monitored in order to preserve the original habitats in which the wind farms are 
located, such as pastures, forests, wetlands, deserts, etc. 
  Plans for the reforestation of native species are continuing with respect to the construction of the 
Goias Sul hydroelectric plant in Brazil. 1,300 ha of surface area was treated during 2014. For the Bahia 
PCH I plant a financial offset was made for the protection of a conservation unit, through the recovery of 
26 ha with the planting of 32,000 seedlings. At the Pedra do Garrafão PCH plant, 30 ha were restored in 
2014 with the planting of 40,000 indigenous seedlings.
  The subsidiary Elektro and the distribution affiliates of Neoenergia undertake reforestation offsets 
associated with environmental licenses for the construction of lines and substations. Reforestation 
with native species having the same ecological characteristics as the affected areas is performed in 
areas determined by the government. Elektro planted approximately 44,000 plants of 90 different native 
species in three large reforestations during 2014.

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G4-EN13 Habitats protected or restored
Iberdrola’s awareness of the importance of biodiversity means activities are not limited only to 
restoration work in the areas affected by the facilities; great importance is also given to plans for 
prevention, habitat protection, mitigation of damages. Based on the needs of each project, Iberdrola 
performs tasks during the lifecycle of the project such as:
  Flora and fauna monitoring (especially of protected or vulnerable species).
  Forest treatments. 
  Forestry restoration with indigenous plants. 
  Landscape integration and accommodation, etc. 
By way of example, included below are some of the actions taken by Iberdrola companies throughout 
the world in this area: 
  In 2014, 63 environmental actions were implemented in Spain before and during the construction of 
electrical substations and lines. The advance studies consider the effect on the Nature 2000 Network, 
flora and vegetation, nesting by birds of prey, landscape integration and accommodation, etc. During 
construction, land was restored and prepared, vegetation, birds and the landscape were protected, 
invasive species were controlled, there was training regarding fires and discharges, etc.
  ScottishPower continues with Biodiversity Action Plans (BAPs) at each facility to recover and 
promote the regeneration of the natural habitats, fauna, and flora characteristic of the environment 
surrounding the facilities. More information is available in downloadable files for each BAP at www.
spenergywholesale.com and at www.iberdrola.com.
  Iberdrola USA’s subsidiary CMP has continued working with landowners at two watersheds to improve 
water quality as well as to make improvements in the aquatic habitat and the riverbank. The activities 
include prior treatment of water runoff from impermeable areas of the basin prior to their entry into the 
riverbed. 
  At the affiliated Brazilian hydroelectric plants, there has been a continuation of programmes for the 
recovery and offset of Permanent Conservation Areas (APPs) and degraded areas (quarries, dumps), 
mainly through reforestation. Various environmental programmes for conserving biodiversity are also 
performed annually based on the impacts caused by their operation: monitoring fauna (icthyofauna, 
herpetofauna, mastofauna, avifauna, entomofauna, etc.), monitoring flora in reforested areas, monitoring 
water quality, monitoring erosive processes, etc.
  At the Group’s wind farms, land affected by construction activities has been recovered where 
necessary, performing re-vegetation and forest treatments, among other activities. For example: 
  ScottishPower Renewables continues with the work of restoring the habitats included in the Habitat 
Management Plans implemented at the wind farms. For example, the planting of 283 ha of native 
woodland habitat included in the UK Priority Biodiversity Action Plan is under way at 9 wind farms.
  Iberdrola Renewables USA continued developing plans for managing and monitoring habitat at the 
Leaning Juniper IIA/IIB and Klondike III/IIIa wind farms in 2014, with good results. In addition, there is 
work underway to eliminate an invasive herbaceous species at Klondike II and work is continuing on 
the restoration of wetlands near the Hoosack wind farm.

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  In Mexico, noteworthy activities include the monitoring of the reforestation performed during the 
construction of the La Ventosa wind farm, as well as the procedures that have been commenced for 
the reforestation of an area of approximately 19 ha at the La Venta III wind farm. Arrangements are 
also underway at the La Venta III Line for the reforestation of approximately 25.56 ha.
  Fundación Iberdrola continues to participate in the Life (2010-2014) project for the preservation and 
recovery of the Cantabrian capercaillie and its habitat in the Cantabrian mountain range, in cooperation 
with Fundación Biodiversidad (Biodiversity Foundation) and the Sociedad Española de Ornitología 
(Spanish Ornithological Society) (SEO/BirdLife): www.fundacióniberdrola.org. The Foundation has 
collaborated in 2014 with SEO/BirdLife in the NIGRA project, the goal of the project being the study of 
the migratory movements of bird species in Spain, financing the start-up of this programme from the 
2011 season to the present.
More information is available at www.iberdrola.com and in the 2011-2013 Biodiversity Report.
G4-EN14 Number of IUCN Red List species and national conservation list species with habitats in areas affected 
by operations.
The Group is active in certain areas that are or may be inhabited by threatened species included in 
the IUCN Red List25, the UK BAP, and by the USFW, and other national lists such the Sao Paolo list of 
threatened species, without such activities entailing a negative impact or threat.
IUCN Red List Classification
No. of species
Critically endangered (CR)
21
Endangered (EN)
57
Vulnerable (VU)
79
Near threatened (NT)
80
Least concern (LC)
576
No evaluation (NE)
201
Species appearing as not evaluated by the IUCN appear as threatened in the specific lists of each 
country. The list of classified species is available at www.iberdrola.com. 
25  International Union for the Conservation of Nature (IUCN) (www.uicn.es), UK Biodiversity Action Plan (UK BAP) (www.ukbap.org.
uk/newprioritylist.aspx), US Fish & Wildlife Service (USFW) (www.fws.gov).

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Aspect: Emissions
Management Approach
The main greenhouse gas generated by the Company’s activities is CO2, which is produced by 
combustion during thermal generation. Iberdrola is publicly committed to maintaining its position as 
one of the leading European companies with fewer CO2 emissions per kWh produced. The Company’s 
strategy is focused on gradually reducing its intensity of GHG emissions by continuing along the line of 
electricity generation based on renewable sources and progressively introducing more efficient and less 
carbon-intensive technologies at existing facilities. The goal for 2020 is a 30% reduction in the intensity 
of emissions per kWh generated compared to the year 2007. 
Other emissions such as the emissions of sulphur dioxide (SO2), oxides of nitrogen (NOx), and particulate 
matter are also created by the burning of fossil fuels. These emissions are being reduced due to the 
Company’s energy generation mix, with the incorporation of emission free energy and support of 
modern technologies for control of thermal plants. This management focus on lower emissions per GWh 
produced is supplemented with a plan to invest in conventional power plants through the installation 
of desulphurisation units, other improvements in the combustion process, and the dismantling of less 
environmentally-efficient units.
In September 2014, Iberdrola endorsed goals proposed by the Carbon Disclosed Project through its 
Road to Paris 2015 project, based on emissions reduction and the promotion of responsible corporate 
policies relating to the climate.
G4-EN15 Direct greenhouse gas emissions. Scope 1 (per GHG Protocol)
Iberdrola’s Greenhouse Gas (GHG) emissions are consolidated from the viewpoint of percentage equity 
interest: the Company reports GHG emissions in accordance with the proportion it holds in the share 
structure. Direct emissions occur at sources that are owned or controlled by the Company. They include:
  Direct emissions from energy generation facilities.
  Direct emissions from non-generation facilities.
  Emissions from releases of methane (CH4) in the transportation of natural gas.
  Emissions from releases of hexafluoride (SF6) in the distribution networks.
  Emissions from combustion at buildings.
  Emissions of gas oil from nuclear facilities.
It should be noted that the emission factors used in calculating each of these emissions are obtained 
from official sources as described in the methodologies section available in the GHG report, which is 
audited annually under the ISO 14064 standard available in (www.iberdrola.com).
Emissions of CO2 from production facilities for 2014 reflect a significant decrease compared to prior 
years. The change is presented in the following table:

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CO2 emissions (t)
2014
2013
Expanded boundary
Generating plants
27,028,231
28,249,133
Cogeneration
3,037,420
3,519,637 
Total
30,065,651
31,768,770
The emission free installed capacity within the Group totals 62%, with of the rest 31% is medium-
emission generation (combined cycles and cogeneration), with only 7% corresponding to high emissions 
(coal).
In addition to these emissions from production facilities, 47.23 kt of CO2 have been recorded during 
this financial year at the Daldowie thermal drying plant in Scotland, and 48.55 kt of CO2 at the Enstor 
underground storage facilities in the United States. 
Other direct emissions recorded for the year include 7.44 kt of CO2 equivalents in methane releases from 
Iberdrola USA’s network of distribution companies and 0.025 kt of CO2 equivalents in methane releases 
from United Kingdom plants. 
Releases of SF6 totalling 23.66 kt of CO2 equivalents occurred at the distribution networks in Spain, the 
United Kingdom, Brazil, and the United States of America.
Emissions from gas-oil combustion at nuclear facilities involve 4 kt of CO2 equivalents.
Emissions from the combustion of fuel (gas-oil, natural gas, and LPG) at buildings involve 6 kt of CO2 
equivalents.
All of these direct emissions, not included in the emissions in the table above, entail less than 0.5% of 
the direct emissions of the Group and its affiliates.
G4-EN16 Indirect greenhouse gas emissions. Scope 2 (per GHG Protocol)
Indirect emissions are those deriving from its activity but generated by other entities, including 
emissions from the generation of electricity acquired and consumed by the Company. These emissions 
are: 
  Emissions associated with the consumption of electricity in buildings.
  Emissions associated with the consumption of suspended standby energy at the renewable, thermal, 
and nuclear plants and pumping at the hydroelectric plants. 
To calculate CO2, the emission factor of the generation mix for the respective country is applied. Source: 
CO2 Emissions per kWh from Electricity and Heat Generation from the report CO2 Emissions from fuel 
combustion 2014 Edition of the International Energy Agency. More information on methodologies is 
available in the GHG report, which is audited annually under the ISO 14064 standard (www.iberdrola.com).

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Emissions associated with the consumption of electricity in buildings
Emissions associated with the 
consumption of energy at offices CO2 (t)
2014
2013
Expanded boundary
56,374
64,122
Emissions from consumption during shutdowns and pumping
Emissions associated with consumption by the power plants during shutdowns (energy imported from 
the grid) and during pumping at the hydroelectric plants and those associated with internal consumption 
by wind farms this year involved 1,492 kt of CO2 equivalents, of which 1,043 kt corresponded to the 
plants in Spain, 440 kt to those in the United Kingdom, 4 kt to those in Mexico, 2 kt to those in the United 
States of America, 2 kt to those in Brazil, and 2.5 kt to the wind farms in other countries.
G4-EN17 Other indirect greenhouse gas emissions. Scope 3 (per GHG Protocol)
The rest of the indirect emissions include those that are a result of the Company’s activities, but occur at 
sources that are not owned or controlled by it. The other emissions are:
  Emissions associated with the importation of electricity.
  Emissions associated with the transportation of employees for work purposes.
  Emissions associated with the transportation of fuel.
  Emissions associated with the distribution of energy from other generators. 
  Emissions from suppliers that receive and respond to GHG questionnaires.
  Emissions associated with the transportation of employees from their home to their place of work.
More information on methodologies is available in the GHG report, which is audited annually under the 
ISO 14064 standard (www.iberdrola.com).
Emissions associated with the importation of electricity
During 2014, only 349 GWh of electricity was imported, entailing indirect emissions of 29 kt26 of CO2 
equivalents.
Emissions associated with the transportation of employees for work purposes
This category includes emissions associated with the movement of vehicles and other means of 
transportation in work-related travel by employees. The method for calculating these emissions is based 
on the application of emission factors extracted from Defra27, which assigns a numeric value to the 
emissions based on various entry parameters. The results are set forth in the following table.
26  Source: CO2 emissions from fuel combustion 2014 Edition of the International Energy Agency.  
27  Defra: Department for Environment, Food and Rural Affairs, UK.

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CO2 (kt) emissions associated with 
employee travel
2014
2013
Expanded boundary
Air
8,798
2,200
Vehicle
57,227
91,737
Train
204
305
There were more than 35,737 videoconferences in Spain in 2014 that avoided employee travel in 2014, 
entailing a reduction of approximately 22,142 t of CO2, reaching the goal of reducing CO2 emissions 
compared to the previous year, thanks to the installation of new videoconferencing facilities and 
improvements in equipment. 
Emissions associated with the transportation of fuel (Spain and United Kingdom)
The fuel supply chain was analysed in accordance with the various means of transportation employed, 
their emission factor was determined, and the emissions from this activity were calculated. In 2014, there 
were 89 kt of CO2 emissions in Spain and 295 kt of CO2 emissions in the United Kingdom. 
The emissions by type of transportation are shown below:
CO2 emissions (t) associated with the 
transportation of fuel in Spain and the 
United Kingdom
2014
2013
Expanded boundary
Roadway 
14,307
9,757
Train 
34,723
37,033
Ship
334,206
369,532
Emissions associated with energy distribution purchased from other generators
In countries in which the energy supplied is greater than the energy generated, an estimate has been 
made of the emissions associated with this difference, which involves estimated emissions of 30,471 kt 
of CO2 during the year. 
Emissions associated with the supply chain
The Supplier Awareness and Greenhouse Gas Measurement Campaign V was carried out during 
financial year 2014, for which purpose surveys were sent to the Group’s suppliers in Spain, the United 
Kingdom, the United States of America, Mexico, and Brazil. A specific survey and helpful information

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and support regarding this matter were sent to approximately 1,000 suppliers. Of the 43% of surveys 
received, 41% provided a calculation of emissions. Based on the responses obtained from the surveys, 
emissions proportional to the volume of the supplier’s billing to the Company of total billing are deemed 
to correspond to Iberdrola. In order to expand awareness of the Group’s carbon footprint, the inventory 
includes indirect emissions of 666 kt CO2 for Spain, 466 kt CO2 for the United Kingdom, 246 kt CO2 for 
the United States of America, 454 kt for Mexico and 0.1 kt CO2 for Brazil. The emissions collected in this 
survey correspond to 2013.
Emissions associated with the transportation of employees from their home to their work place
Surveys were sent to the employees of the Iberdrola Group to record their emissions through an 
emissions calculation tool. Responses were obtained from 5% of the Iberdrola Group’s employees. The 
data collected from the survey are entered directly into a database used to calculate emissions (in kg 
CO2eq/year). Emissions increased to 3,916 t CO2.
Iberdrola’s inventory of emissions results from the emissions set forth in indicators G4-EN15, G4-EN16 
and G4-EN17. In March 2014, for the fourth consecutive year, Aenor certified Iberdrola’s greenhouse gas 
emissions inventory, covering the direct and indirect emissions from all activities, pursuant to the UNE 
ISO 14064-1:2006 standard. 
Set forth below is the inventory (as of the date of publication of this report) to be submitted for 
verification in 2015 pursuant to the Greenhouse Gas Protocol of the World Business Council for 
Sustainable Development (WBCSD) and the World Resources Institute (WRI). Updated information is 
available at www.iberdrola.com.
Emissions of CO2 equivalents to be 
verified in 2015 (kt)
Spain
United 
Kingdom
United 
States 
Brazil
Mexico
Scope 1: Direct emissions
4,112
11,380
985
675
13,052
Scope 2: Indirect emissions
1,055
455
28
2
4
Scope 3: Other indirect emissions
9,863
9,536
7,988
4,943
454

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G4-EN18 Greenhouse gas emissions intensity
Intensity of CO2 28 emissions
2014
2013
Expanded boundary
Specific emissions from 
global mix (kg/MWh)
212
226
Specific emissions from global mix (kg/€)
1.001
1.021
In 2014, CO2 emissions per MWh generated remained among the lowest among domestic and 
international energy companies. As a reference, the specific emissions of European electric companies 
are approximately 326 Kg/MWh29. This low intensity of emissions is justified by Iberdrola’s production 
mix, with the emission-free production percentage increasing from 55% in 2013 to 57% in 2014.
The chart below shows the Company’s emission intensity.
Specific 
emissions
325
300
275
250
225
200
2005
2006
319
301
278
270
250
236
252
226
212
2007
2008
2009
2010
2011
2012
2013
2014
2015
Intensity of CO2 Emissions (kg/MWh)
The average emissions intensity per MWh produced during the last 4 years is 231 kg/MWh.
28  kg/MWh: Direct emissions from energy generation facilities included in section EN/15/net production of the Group including 
steam generation. kg/€: Direct emissions from energy generation facilities included in indicator EN15/Net sales €. 2013 intensity 
has been corrected due to a change in steam production. 
29    Source: CO2 Emissions From Fuel Combustion 2014 International Energy Agency.

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G4-EN19 Reduction of greenhouse gas emissions 
Initiatives to reduce emissions are realised through a broad range of products and services promoting 
energy efficiency and savings, such as:
Areas
Actions and initiatives
CO2 avoided (t) 
Expanded boundary
Renewables
Primary energy savings through the production of renewable energy
14,070,178
Hydroelectric
Primary energy savings through hydroelectric generation
6,150,953
Cogeneration
Savings through the supply of heat energy (steam) within the Group
917,934
Network efficiency
Savings from distribution network efficiency in Spain, United States, 
and Brazil
153,951
Retail
Spain
Energy savings and efficiency from green products and services 
120,386
United States 
Energy savings and efficiency from green products and services
23,387
Group
Use of videoconferencing
22,142
The operating regimen of the Group’s production facilities led to the level of CO2 emissions described in 
indicator G4-EN15. Indicators G4-EN630 and G4-EN16 provide additional information in this regard. 
Despite its excellent position in this regard, Iberdrola has committed to reducing the intensity 
of its emissions to 30% below its 2007 level by 2020 (more information is available at www.
contraelcambioclimatico.com). Iberdrola has signed a commitment to join the CDP Roadmap to 
Paris publicising the goal of reducing emissions. The strategy to achieve this is focused on gradually 
reducing its intensity of GHG emissions by continuing along the line of electricity generation based on 
renewable sources and progressively introducing more efficient and less carbon-intensive technologies 
at existing facilities. 
G4-EN20 Emissions of ozone-depleting substances
The chlorofluorocarbon (CFC) and halon substances long used as coolants and propellants affect the 
ozone layer if they are released into the atmosphere. Ozone layer reducing substances have a very 
limited presence at the Group’s facilities, and are located primarily in fire-extinguishing equipment and 
30  In addition to the reductions described in G4-EN5, the Group’s nuclear production prevented emissions of 7,475,785 tonnes of 
CO2, taking into account the emission mix. Source: CO2 emissions from fuel combustion 2014 Edition of the International Energy 
Agency. 2012 Factors.

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cooling systems. These systems and equipment are maintained in accordance with the provisions of 
applicable laws and regulations. The only atmospheric emissions originating from these products would 
be those arising from potential losses, which are practically negligible. As specified by international 
treaties on the management of chemical products that are damaging to the ozone layer, the use thereof 
has been restricted in most countries since 2010, for which reason Iberdrola’s policy has been to 
eliminate their presence at its facilities. Nevertheless, these substances continue to be used at those 
facilities where a better market substitute has not been found, with the use thereof still being authorised. 
Thus, 137 kg of CFC-11 equivalent was replaced in 2014, of which: 55 kg of CFC-11 equivalents was in 
Spain, 10 kg in United States, and 72 kg in Mexico. 
G4-EN21 NOx, SOx and other significant air emissions 
The emissions of sulphur dioxide (SO2), oxides of nitrogen (NOx), and particulate matter are also 
created by the burning of fossil fuels. These emissions are being reduced due to the Company’s 
energy generation mix, discussed in the emissions section, with the incorporation of renewable 
energy and support of modern technologies for monitoring combined cycles. This management 
focus is supplemented with a plan to invest in conventional power plants through the installation of 
desulphurisation units, other improvements in the combustion process, and the dismantling of less 
environmentally-efficient units. 
Emissions of oxides of nitrogen (NOx)
Emissions of oxides of nitrogen NOx (t)
2014
2013
Expanded boundary
Generating plants
28,031
29,350 
Cogeneration
5,533
7,362 
Total
33,564
36,712
Emissions of NOx (kg/MWh)
2014
2013
Expanded boundary
Specific emissions from global mix 
0.236
0.262
NOx emissions, both in absolute values as well as in intensity by MWh produced, decreased during 
the year due to the change in production technologies explained in indicator G4EN15. To comply with 
Directive 2001/80/CE, which limits the atmospheric emissions of SO2, NOx, and particulates from large 
combustion facilities, investments have been made in combustion control systems at the thermal plants, 
both in Spain and the United Kingdom.

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SO2 emissions
Emissions of sulphur dioxide (SO2) (t)
2014
2013
Expanded boundary
Generating plants
21,782
30,462
Cogeneration
140
265
Total
21,922
30,727
SO2 emissions (kg/MWh)
2014
2013
Expanded boundary
Specific emissions from global mix 
0.154
0.219
The intensity of SO2 emissions in 2014 was 0.154 kg/MWh, 29% less than in the prior year due to 
increased production from emissions-free sources and the operation of desulphurisation plants in the 
thermal plants of the Group. 
Particulate emissions
Particulate emissions (t)
2014
2013
Expanded boundary
Generating plants
1,528
1,708
Cogeneration
92
97
Total
1,620
1,805
Particulate emissions (kg/MWh)
2014
2013
Expanded boundary
Specific emissions from global mix 
0.011
0.013

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Particulate emissions in 2014 were significantly reduced due to increased production from emissions-
free sources, and measures to control the electrostatic precipitator. 
Emissions of mercury (Hg) and other compounds 
The emission of mercury (Hg) during 2014 was 95 kg, of which 70 kg corresponded to the thermal power 
plants in the United Kingdom and 25 kg to those in Spain, a 14% reduction compared to the prior year.
Furthermore, 498 t of volatile organic compounds (VOCs) were emitted in Spain, the United Kingdom, 
Mexico, and the United States of America; and 10.5 kg of hazardous air pollutants (HAPs) were emitted in 
the United Kingdom.
Aspect: Effluents and waste 
Management Approach 
Effluents 
Various processes require the collection and use of water in their activities (see Aspect: Water in this 
report) and its later return to the environment as effluent.
Thermal generation plants, and particularly those plants with open cooling circuits, return to the 
environment the collected water without significant physical chemical changes, the most noticeable 
being an increase in temperature. For each facility, this aspect is rigorously controlled by each plant (to 
comply with established limits and to take appropriate measurements in case said limits are exceeded) 
and by the government, which establishes certain maximum allowable values based on the nature of the 
collection point and the discharge point (sea, dam or river) and performs monitoring. 
The generation plants have treatment plants and systems that allow for monitoring and the improvement 
of quality of the effluent before its discharge into the receptor medium (sea, dam, river, or purification 
plants) thus reducing the risk of polluting discharges.
However, there is a risk of accidental discharges of fuel and chemical products, or spills of polluted 
water, which is contemplated for or controlled by:
  Obtaining the environmental permit under applicable law and imposing strict environmental 
requirements on the design of the facility.
  Monitoring of the quality and quantity parameters for the water collected and discharged, always in 
compliance with applicable local environmental law. 
  Use of systems for reporting anomalies and incidents and the establishment of plans to minimise 
spillage risks, by implementing predictive, preventive, and corrective actions that ensure the proper 
condition of the water. 
  The application of ISO 14001 and EMAS certifications; as well as other in-house and external audits by 
insurance and certifying entities, whose observations or recommendations will each lead to a preventive 
or corrective initiative within the Environmental Management System.
These initiatives also apply to distribution substations and wind farms to manage the risk of oil spills.

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In the event that a discharge or spill occurs at the Company’s facilities having negative effects on the 
surrounding environment, the Company provides the information required and cooperates with the 
competent bodies until resolution of the incident. The reason for the discharge is subsequently analysed, 
and the appropriate measures are taken in order to minimise the probability of reoccurrence.
Waste
At Iberdrola, waste is managed in an environmentally responsible and cost-effective manner, giving 
priority to reutilisation and maximising recycling whenever possible, maintaining the basic concept of 
generating the minimum possible amount of waste.
All waste is managed through environmental management systems that set objectives and goals with 
respect to reduction, good practices, use of recycled materials, etc.
As a quantitative example of how waste material is treated as a resource to be exploited, ash and slag 
from coal-fired plants in Spain and the United Kingdom are noteworthy, as they are reused based on 
demand from cement and construction companies. The part not reused is deposited in landfills in Spain 
and in ash lakes in the United Kingdom. 
The prevention, treatment and final disposal of hazardous waste is performed pursuant to the applicable 
legislation of each country, with preparation of the corresponding annual declarations. 
Radioactive waste from nuclear power plants in Spain are the most typical of the generation process, 
which is managed in accordance with the General Radioactive Waste Plan approved by the government 
and implemented by the Spanish state-owned company Enresa.31 Most of this waste is of medium and 
low radioactivity and is temporarily stored at the nuclear plant to be later brought to a plant used only 
for this purpose managed by Enresa. Spent fuel, which is no longer useful for electric energy production, 
is regarded as highly radioactive waste and is temporarily deposited within the pool of the plant itself, 
to ultimately be brought to the Centralised Temporary Storage Facility (Almacén Temporal Centralizado) 
(ATC), which is located in Villar de Cañas in Cuenca. 
Iberdrola’s nuclear power plants are included within the Environmental Radiological Monitoring 
Programme of the Nuclear Safety Council, the purpose of which consists of monitoring the dispersion in 
the environment of discharges from the facilities in a controlled manner and of knowing and monitoring 
radiological quality throughout the territory of the country.32  
G4-EN22 Total water discharge by quality and destination
The thermal power-generation plants in Spain have treatment systems that treat residual water before 
discharging it into the natural receptor environment. Water from the process undergoes physicochemical 
treatment, which includes the separation of hydrocarbons. Wastewater is treated in compact treatment 
systems with biological aerobic processes. Coal plants have a treatment system for slag from the plant, 
and a decantation/coagulation process that prevents the entry of particulate coal or coal in suspension 
31  Enresa: Empresa nacional de residuos radioactivos, S.A. 
32   For more information, see the technical report issued by the Nuclear Safety Council “Programas de vigilancia radiológica 
ambiental. Resultados 2009” (“Environmental radiological monitoring programmes. 2009 results”) available at www.csn.es.

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into the receptor water. After being treated, the process water and the sanitation wastewater are diluted 
with the return water from the cooling system and are discharged with continuous monitoring of various 
parameters (temperature, turbidity, conductivity, etc.). Once a month or once a quarter, an accredited 
organisation performs an analysis and reports to the government. 
An exhaustive inspection was performed of the water used in the direct production process at the 
Cofrentes nuclear power plant. All of the effluents from the water-steam cycle, from the reactor coolants, 
and from the standby systems are processed in the liquid waste treatment system and are returned 
to the cycle for reuse. On an exceptional basis, during maintenance shutdowns, liquid discharges are 
produced that are mixed with purified wastewater effluents and with the effluents from the collected-
water treatment plant. It is stored in pools and discharged periodically under the supervision of a 
representative of the Water Board.
In Mexico, the combined cycles have separate and independent networks for industrial and sanitary 
water. The latter receive final treatment in biodigestors whereas industrial water is discharged into 
the environment or sent to municipal treatment plants. In Mexico, the La Laguna power plant captures 
sanitation wastewater for all processes, for which reason the water discharged by this facility is of better 
quality in some parameters than the water that is collected.
Data regarding this indicator is shown below, and more information is available at www.iberdrola.com. 
Total water discharged (m3)
2014
2013
Spain
1,149,439,558
1,194,937,158
United Kingdom
1,608,849,086
1,698,537,453
United States
1,589,287
1,559,353
Mexico
29,975,826
28,160,228
Brazil33
41,378
42,493
Other countries
4,304
3,372
Basic boundary
2,789,899,439
2,923,240,057
Expanded boundary 
2,797,114,146
2,932,752,529
Most of the water discharged is water returning from the cooling systems, the temperature of which 
is controlled so as not to exceed the established discharge limits. The other main component of 
the discharge is water from processes and sanitary water that is filtered prior to discharge. In 2014, 
248,256,124 m3 of water was filtered at the thermal generating plants.
33  Only the offices of Elektro are considered in 2014.

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G4-EN23 Total weight of waste by type and disposal method
The waste generated can be included in the group of waste generated by the process itself or in the 
group of waste originating from facilities and offices indirectly linked to the power generation process 
(maintenance, operation, management, or other activities). At the Iberdrola Group, waste follows an 
identification, classification and management process within the framework of applicable law in each 
country. In addition, waste collection is performed in order to separate reusable materials contained 
therein. There are also training activities to raise the awareness among the Group and subcontracted 
personnel. Almost all facilities have a waste minimisation plan.
Waste from the production process
1. Fly ash and slag
In the thermal power plant generation process, fly ash and slag are the most typical types of waste. 
650,101 t of fly ash were produced in 2014, 207,130 t in Spain, and 442,971 t in the United Kingdom; of the 
total, 78% was reused to produce cement as filling in infrastructure work and to produce compost. Also 
produced were 54,316 t of boiler slag and non-fly ash, of which 68% was reused and the rest was sent to 
landfills.
Production and reuse of fly ash at thermal plants 
Production and reuse of ash at 
Iberdrola’s thermal power plants in Spain 
and the United Kingdom
2014
2013
Ash produced (t)
650,101
653,341
Ash reused (t)
510,231
534,458
Percentage of product reused (%)
78
82
The production of ash and slag decreased in Spain and the United Kingdom compared to the prior year, 
due mainly to a decrease in thermal generation with coal.
As an example of waste exploitation and reutilisation, ash is mainly used to produce cement and 
as filling in infrastructure works, and to produce compost naturally in the lagoons created near the 
Longannet coal plant in the United Kingdom. Over the years, the lagoons have created habitats useful for 
the local fauna.
2. Nuclear waste
During 2014, 79 m3 of radioactive waste were produced in the low-level / low-activity category at the 
Cofrentes plant in Spain, and 75 m3 were sent to be deposited at the El Cabril temporary storage facility. 
The rest of the nuclear power plants in which Iberdrola holds an interest produced 68.8 m3 of low-level / 
low-activity nuclear waste (a figure corresponding to the attributable percentage), and 2.3 m3 were sent 
to El Cabril.

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The same year, 185 m3 of intermediate- and low-level radioactive waste were produced at the Cofrentes 
plant, and 233 m3 were sent to be deposited at the El Cabril temporary storage facility. The rest of the 
nuclear power plants in which Iberdrola holds an interest produced 81.7 m3 of low-level / low-activity 
nuclear waste (a figure corresponding to the attributable percentage), and 57.2 m3 were sent to El Cabril. 
The fuel assemblies no longer useful for electric energy production are considered high-activity waste 
and are stored as spent assemblies within the pools of the nuclear reactors. At the Cofrentes plant, 
no assemblies were replaced, with a resulting total of 3,980 fuel assemblies stored in the pool. At the 
other plants in which an interest is held, 164 assemblies were replaced, 61 of which are attributable to 
Iberdrola. There is a total amount of 3,595 assemblies attributable to the Company.
Other waste 
Hazardous waste
Within the framework of the environmental management systems, the various businesses of the Group 
carry out activities designed to minimise and improve the management of the hazardous waste that 
is produced (PCB-contaminated equipment and oil, lubricants, resins, emulsions, etc.). The waste is 
periodically delivered to authorised handlers for proper processing. Not all of the waste generated is 
deposited or recycled immediately given that there are temporary warehouses for hazardous waste at 
the facilities.
Hazardous waste generation (t) 
Hazardous waste generation34
2014
2013
Expanded boundary
Produced
29,607
19,765
Deposited and/or incinerated
15,229
8,318
Recovered, recycled, reused
14,433
7,768
Noteworthy is the decommissioning of the Santurce and Escombreras thermal plants as waste 
generating sources. In Spain Networks Business, waste has increased due to the management of power 
transformers that have been eliminated to avoid the risk of theft. At ScottishPower Networks, cabling 
has been removed, and at Rokas Group (Greece) there has been some waste from renovations and 
scheduled maintenance activities.
34  Liquid waste has been converted into kg using a density of 1.3 kg/m3.

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Non-hazardous waste (t) 
Hazardous waste generation
2014
2013
Expanded boundary
Produced
637,365
541,607
Deposited and/or incinerated
425,872
407,696
Recovered, recycled, reused
153,487
128,281
The non-hazardous waste produced is quite diverse: electronic equipment, metals, tubing, wood, 
plastics, paper, etc., and the Company has minimisation, reutilisation, and recycling plans and 
awareness-raising campaigns to promote the adoption of good environmental practices by its 
employees.
During 2014, there was an income of 6,980,440 euros derived from the sale of non-hazardous waste.
G4-EN24 Total number and volume of significant spills
Accidental spills are prevented and controlled by incident reporting systems and plans to minimise 
the risk of spills, which have been implemented at the generation and distribution facilities in various 
regions. These plans include emergency guidelines and procedures, periodic simulations, etc. Safety and 
containment measures are also adopted to minimise the damage. In Spain, for example, 428 preventive 
measures were taken in 2014 to prevent and mitigate the impact of potential spills, including the 
construction of 5 oil collection reservoirs in case of a major discharge at the substations or transformer 
stations. There is a system available in the United Kingdom for the reporting and management of 
environmental incidents called “Cintellate”, which allows for a more efficient response to possible spills 
and other environmental incidents.
The Iberdrola Group recorded 31 incidents of significant spills during the year35 with a spill volume of 
22.55 m3. 
There have also been minor accidents or incidents at other companies belonging to the Iberdrola Group 
that have not had permanent environmental impacts on the surroundings, for which reason it was not 
necessary to adopt corrective or compensatory measures. All cases were resolved in a satisfactory 
manner thanks to the emergency response team, and the contaminated area was cleaned with the 
 
35  The term “significant spill” means a spill that causes damage to the external surroundings of the facility or a significant risk 
thereof and that must be reported to the governmental authorities. Small spills may occur within the facilities during the operation 
and maintenance thereof, which are properly handled and reported as required.

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management of any waste. For example, at the UK networks facilities, there were a total of 56 leaks or 
spills of transformer oil, insulating liquid from cables, hydraulic oils, etc. Of these spills, only one of them 
had to be reported to either to the Environment Agency (EA) or to the Scottish Environmental Protection 
Agency (SEPA). 
G4-EN25 Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the 
Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally
Iberdrola does not directly transport, import, or export hazardous waste covered by the Basel 
Convention in any of the countries in which it engages in its activities.
G4-EN26 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly 
affected by the organisation’s discharges of water and runoff
Collection and discharges by the facilities during 2014 were within the limits indicated by the relevant 
comprehensive environmental permit, and no anomalies were detected outside of the limits that could 
materially affect water resources or related habitats. 
The Company’s activities can even be beneficial for the ecosystem. This is the case of the Altamira III 
and IV plant in Mexico, which discharges into the Garrapatas estuary, allowing it to recover its salinity 
and thus the specific characteristics of this habitat and the species of fauna and flora adapted thereto. 
This estuary was losing its brackish nature due to salt-water entry being blocked, with the resulting 
desalination of the ecosystem. 
Aspect: Products and services
Management Approach
The consumption of products and services other than fuel (natural gas, coal, etc.) and of the chemical 
products, oils, lubricants, and refrigerants included in indicator G4-EN6 in the production of electricity is 
not deemed to be significant.
G4-EN27 Extent of impact mitigation of environmental impacts of products and services
These initiatives are described in indicator G4-EN6 of this report.
G4-EN28 Percentage of products sold and their packaging materials that are reclaimed by category
This indicator is not applicable to the Iberdrola Group, because electricity does not directly generate any 
waste upon being used.

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Aspect: Compliance
Management Approach
The legal requirements applicable to the activities carried out by the Group, together with the evaluation 
of its compliance therewith, are identified by certified environmental management systems. Compliance 
reports are prepared for those cases in which the environmental management system has not yet been 
fully implemented. In indicator G4-EN29 of this report, supplemental information is provided regarding 
environmental legal proceedings that have been commenced against companies managed directly by 
Iberdrola.
G4-EN29 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with 
environmental laws and regulations
Incidents relating to the environment during 2014 involved the following fines and monetary sanctions:
Fines relating to 
the environment (€)
2014
2013
Expanded boundary
2,212,768
119,385
Of the fines imposed during the year, 1,969,429 euros were in Spain, and 243,340 euros in Brazil. In 
Spain, significant fines are the 1,694,700 euros that correspond to two sanctions cases in the pleadings 
stage due to the death of three Iberian imperial eagles (two in Ossa de Montiel and one in La Roda) 
and 100,000 euros also in the pleadings stage corresponding to a sanctions case in a case involving 
the opening of an unauthorised road. In Brazil, significant fines include 156,195 euros corresponding 
to Neoenergia for two cases, in which pleadings have been filed, one for impacting the icthyofauna in 
Pedra do Garrafao plant and the other for a fire in the area of a dam.
Non-monetary sanctions, sanction 
proceedings, and arbitrations (nº)
2014
2013
Expanded boundary
Non-monetary sanctions 
7
1
Sanction proceedings 
31
21
Cases being resolved through arbitration 
or similar mechanisms 
0
0

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Aspect: Transmission
Management Approach
Information is provided about emissions associated with the import of electricity, when such imports 
occur, and the transportation of employees and fuel. It should be pointed out that these emissions 
are not significant compared to the emission arising from the energy production process, but work is 
nevertheless continuing to reduce the impact through the application of various mobility plans.
G4-EN30 Significant environmental impacts of transporting products and other goods and materials used for the 
organisation’s operations, and transporting members of the workforce
Iberdrola provides information on the emission of greenhouse gases generated by the transport of fuels 
and of employee travel. In indicator G4-EN17, CO2 emission data is collected together with the measures 
and plans adopted for the reduction thereof.
Aspect: Overall. Expenses and investments
Management Approach 
Iberdrola has a procedure for the management of environmental investments and expenses according to 
the environmental standards defined by the Company. 
As a general standard, expenses or investments of an environmental nature are considered to be all 
those made in activities or projects that have a manifest environmental impact, whether direct or 
indirect, which are concentrated in the following categories:
  Treatment of emissions, which includes expenses or investments relating to emissions treatment 
equipment or systems. 
  Treatment of waste, which includes investments and expenses relating to the management and 
treatment of waste, both hazardous and non-hazardous.
  Remediation of environmental impacts, which encompasses the remediation of damage from existing 
or probable environmental impact, and mainly applies to land, underground water, sediment, or surface 
water.
  Environmental prevention, which considers investments in new renewable and hydroelectric facilities.
  Environmental management, which encompasses investments and expenses relating to the 
management of the environment and which are not included in the above categories.
All this in order to showcase environmental activities and initiatives, which are undertaken in order to 
move towards a more sustainable energy model.

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G4-EN31 Environmental expenditures and investments
The expenses and investments of an environmental nature made by Iberdrola during 2014 to preserve the 
environment of the area in which it operates are set forth in the following tables:
Environmental expenses
(€ thousands) 
2014
2013
Expanded boundary
Emissions treatment
114,913 
177,332
Waste treatment
180,598
171,175
Environmental impact remediation
21,143
30,652
Environmental prevention
197,757
235,208
Environmental management
121,308
72,050
Total
635,720
686,416
Environmental investments (€ thousands)
2014
2013
Expanded boundary
Emissions treatment
27,478
21,859
Waste treatment
2,731
3,488
Environmental impact remediation
3,166
23,938
Environmental prevention
1,059,840
955,777
Environmental management
7,768
10,684
Total
1,100,984
1,015,746
The “green cent” and the net balance of CO2 have been included as environmental expenses.

Part ii. Specific standard disclosures   /   159
Sustainability Report 2014     /
Aspect: Environmental assessment of suppliers
Management Approach   
G4-EN32 Percentage of new suppliers that were screened using environmental criteria 
G4-EN33 Significant (actual and potential) negative environmental impacts in the supply chain and actions taken
The management approach regarding the Iberdrola Group’s supply practices is described in the “G4-
12 Description of supply chain” indicator of this report and the environmental risks of such chain are 
managed through quality processes and periodic audits.
The Supplier Awareness and Greenhouse Gas Measurement Campaign V was carried out during 
financial year 2014, using specific surveys sent to more than 1,000 of the Group’s suppliers of material, 
equipment, works, and services in Spain, the United Kingdom, Brazil, Mexico, and the United States of 
America.
Of the 43% of surveys received, 41% provided a calculation of emissions, and of these approximately 
40% have verified the inventory by a third party, a higher percentage than in prior campaigns, which thus 
shows its level of effectiveness in raising the awareness of suppliers. 
Greenhouse Gas 
Measurement Campaign V
Spain 
United 
Kingdom
United 
States
Brazil
Mexico
Total
Surveys sent
no.
492
244
117
112
44
1,009
Surveys received
no.
273
71
53
25
11
433
%
55
29
45
22
25
43
Emissions calculations provided
no.
117
39
11
5
4
176
%
43
55
21
20
36
41
Established goal(s) to reduce emissions
no.
96
38
7
5
4
150
%
35
54
13
20
36
35
Emissions inventory prepared
no.
105
40
11
5
3
164
%
38
56
21
20
27
38
Emissions inventory has been verified by 
third parties
no.
41
26
3
0
1
71
%
39
65
27
0
33
43

160   /   Part ii. Specific standard disclosures 
/   Sustainability Report 2014 
The procurement terms of the Group establish certain environmental requirements to meet this 
commitment, and the Company performs various tracking and reporting activities on an ongoing basis. 
In 2014, procurement from suppliers with a certified Environmental Management System entailed 77% of 
the amount in the case of suppliers of general supplies. For fuel suppliers, those with an Environmental 
Management System represent 75% of the suppliers evaluated. New suppliers are evaluated in 
accordance with environmental and sustainability standards.
Those providers with orders during the year that do not have the certification are sent environmental 
engagement and awareness-raising communications to move forward in this area and commence 
implementation/certification of the system.
The Procurement Division ensures equal opportunity, applying standards of objectivity and impartiality 
in relations with suppliers, promoting publicity of and competition for selection processes, using 
management efficiency standards.
Fuel purchasing is subject to the general principles of Iberdrola’s Social Responsibility Policies principles 
that require the encouragement of suppliers to engage in activities that are socially responsible, 
respectful of the environment, and prevent occupational risks.
The principal environmental risks are considered to be managed through the current management 
systems and the periodic audits that are performed. 
In the management of suppliers and during the procurement process, the measures adopted to 
promote proper environmental behaviour of the suppliers are based on the Procurement Policy, the 
Suppliers’ Code of Ethics, and the specific environmental clauses in the contracting terms of the Group. 
Subsequently, during the supply stage, the business units monitor the environmental performance of the 
supplier during the term of the contract.
No supplier with a negative environmental impact has been detected. Furthermore, Iberdrola does not 
have major suppliers located in countries with water stress.
Aspect: Environmental grievance mechanisms
Management Approach
The grievance procedures and tools that Iberdrola makes available to its stakeholders, as well as 
the management processes with respect thereto, are described in the management approach to the 
“Grievance mechanisms for social impact” aspect of the “Society” section of this report.
Focused specifically on the environmental aspects of its activities, Iberdrola has an email mailbox, 
medioambiente@iberdrola.es, which is a channel of communication with stakeholders accessible at 
www.iberdrola.com, on the “Contact” page, under the “Environment” section, offering the ability to 
ask questions, provide questions, place concerns, make complaints, etc. This mailbox, included in the 
Environmental Management System of the Company, is certified under the ISO 14001 standard, and the 
management processes and handling of complaints received are audited annually.

Part ii. Specific standard disclosures   /   161
Sustainability Report 2014     /
By way of supplement, Iberdrola may receive messages relating to the environment through various 
channels that it maintains in social media, described on the corporate website in the Press Room / Social 
Media section, for which there is monthly monitoring in coordination with the Communication Division, 
resolving the environmental issues that are raised.
G4-EN34 Environmental grievances 
The channel established to receive environmental grievances is the corporate mailbox indicated above. 
During the last financial year, 1,496 messages. In July 2014 an environmental complaint regarding the 
death of birds colliding with a building of the Company was resolved with the interested party.

162   /   Part ii. Specific standard disclosures 
/   Sustainability Report 2014 
C. 
Social 
dimension

Part ii. Specific standard disclosures   /   163
Sustainability Report 2014     /
C1.  
Labour practices and decent work
The aspects analysed and reported on in this chapter are the following:
Aspects of the GRI-G4 Guidelines 
(Those indicators that require additional information per the electric utilities sector supplement are identified with (*))
Employment (*)
Labour/management relations 
Occupational health and safety (*)
Training and education
Diversity and equal opportunity
Equal remuneration for women and men
Supplier assessment for labour practices
Labour practices grievance mechanisms
The information boundaries used in this chapter are defined in section G4-17 of this report.

164   /   Part ii. Specific standard disclosures 
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Specific Management Focus on Labour Practices and Decent Work
Iberdrola’s primary objective with respect to labour is to have in place an appropriate framework for 
labour relations, with agreed mechanisms for the alignment of the organisation with corporate and 
social requirements, furthering the achievement of the goals of competitiveness and corporate efficiency 
within a climate of social peace.
To properly manage its human resources and the multiple facets thereof, Iberdrola applies the policies, 
elements, and tools described in the “General Management Approach” section of this report, fostering 
behaviour and attitudes among its workforce in accordance with the principles described in the “Ethics 
and Integrity” section of this report.
The policies defined in this regard contain the guidelines governing labour relations among the various 
companies of the Group and serve as a reference to define the Company’s goals in the management 
of its human resources: guarantees in employment, stable relationship with employees, quality in the 
aspects of occupational health and safety, training, and principles to guarantee diversity and equal 
opportunity in access to employment and in professional development.
Aspect: Employment  
Aspect: Labour/management relations
Management Approach
Policies and commitments
Iberdrola has a Human Resources Framework Policy and four specific policies in the area of labour 
relations to supplement the general approaches described above:
  Recruitment and Selection Policy,
  Equal Opportunity and Reconciliation Policy,
  Occupational Risk Prevention Policy, 
  Knowledge Management Policy,
supplemented by a Senior Officer Remuneration Policy and a Code of Ethics that together establish the 
principles for managing these disciplines. Both the policies and the code are available at www.iberdrola.
com.
To properly frame labour relations, the companies within the basic and expanded boundaries of the 
Iberdrola Group have collective bargaining agreements or specific equivalent agreements to govern 
aspects relating to the management of people.
In Spain, the companies of the Group are governed by three different collective bargaining agreements, 
with five agreements in force in the United Kingdom and four in the United States of America. In addition, 
the various facilities of Iberdrola Mexico and the Brazilian companies Elektro, Coelba, Cosern, and 
Celpe have a collective bargaining agreement and the subsidiaries controlled by Iberdrola Cogeneración 
and the plants of EnergyWorks are governed by other industry agreements or other types of labour 
agreements.

Part ii. Specific standard disclosures   /   165
Sustainability Report 2014     /
These agreements may have specific monitoring mechanisms, such as the committees and sub-
committees of the Collective Bargaining Agreement in Spain, the ScottishPower Company Consultative 
and Negotiating Machinery Constitution in the United Kingdom, and Elektro’s Safety Committee in 
Brazil, which serve to regulate labour issues, consult with employees on Company matters, and ensure 
compliance with commitments made. 
Goals
Iberdrola has identified especially significant issues with respect to its employees, including:
  Define terms and conditions of employment.
  Regulate work rules, shift categories, working hours, etc.
  Define salary structure, supplementary pay, other expenses, and form of payment.
  Specify benefits offered and conditions for obtaining them.
  Establish general principles in connection with the Equality Plan.
  Recognise the right to reconciliation of personal, family, and working life.
Specific actions during the financial year
International assignments were made under the International Mobility (Global) programmes affecting 221 
persons through the exchange of experiences in various channels.
In its support for reconciliation and equality, Iberdrola has the Family-Responsible Company Certificate 
in Spain and Mexico, and Elektro has a Well-being programme, the goal of which is to improve the 
quality of life and well-being of employees. 
Under the new homogeneity objectives in the Human Resources model, at the close of 2014 the 
management team of Iberdola and its subsidiary companies comprised 830 people, with a voluntary 
turnover rate of 0.02; there are 871 executives within the Group’s basic boundary, as shown in indicator 
G4-LA12.
Programmes and processes to ensure the availability of a skilled workforce
Iberdrola, as a company operating in the electricity industry, needs to have a qualified workforce in 
keeping with the specific needs of such industry, with the technical competencies necessary to carry 
out the specialised work required by these types of activities in terms of both technical aspects and 
safety. Indicator G4-LA10 of this chapter provides information in connection with the skills and training 
management programmes that foster the employability of workers at the Company.

166   /   Part ii. Specific standard disclosures 
/   Sustainability Report 2014 
G4-LA1 New employee hires and employee turnover
New hires 
2014
2013
Men
Women
Men
Women
Basic boundary
By age, in numbers
Up to 30 years old
Between 31 and 50 years old
Over 50 years old
629
456
38
192
179
16
704
560
84
194
179
16
By age, in %
Up to 30 years old
Between 31 and 50 years old
Over 50 years old
23.01
4.13
0.52
24.19
4.49
1.03
23.69
4.93
1.15
21.86
4.31
0.97
Total number
1,123
387
1,348
389
Total %
5.34
6.10
6.25
5.82
Expanded boundary
Total number
1,309
442
1,464
443
Total %
5.75
6.44
6.27
6.16

Part ii. Specific standard disclosures   /   167
Sustainability Report 2014     /
Personnel leaving the Company 
2014
2013
Men
Women
Men
Women
Basic boundary
By age, in numbers
Up to 30 years old
Between 31 and 50 years old
Over 50 years old
329
606
682
121
321
284
352
592
454
116
207
103
By age, in %36
Up to 30 years old
Between 31 and 50 years old
Over 50 years old
12.01
5.50
9.36
15.22
8.04
18.21
11.84
5.22
6.26
13.06
4.98
6.25
By seniority, in numbers 
Up to 10 years
Between 11 and 20 years
Over 20 years
849
172
596
360
181
185
901
116
381
306
56
64
By seniority, in %36 
Up to 10 years
Between 11 and 20 years
Over 20 years
8.80
5.05
7.46
11.38
12.13
10.93
8.83
3.63
4.67
8.85
3.64
3.78
Total number
1,617
726
1,398
426
Total %
7.68
11.44
6.48
6.37
Expanded boundary
Total number
1,780
762
1,552
468
Total %
7.82
11.13
6.65
6.49
A breakdown by geographic area can be found in the Information Supplementary to the Sustainability 
Report 2014, available at www.iberdrola.com.
G4-LA2 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by 
significant locations of operation 
For employees of companies party to the 5th Collective Bargaining Agreement (Iberdrola Engineering 
and Construction, ScottishPower, Iberdrola Mexico, and Elektro), which represent 74.62% of the 
workforce within the basic boundary, there is no difference between benefits provided to part-time 
employees and benefits provided to full-time employees. 
36  Of the headcount of this group at year-end.

168   /   Part ii. Specific standard disclosures 
/   Sustainability Report 2014 
G4-LA3 Return to work and retention rates after parental leave, by gender
Leave and return to work due to paternity/maternity 
2014
2013
Men
Women
Men
Women
Basic boundary
Number of employees entitled to parental leave
21,045
6,342
21,566
6,691
Number of employees taking parental leave
422
458
147
406
Expanded boundary
Number of employees entitled to parental leave
22,752
6,845
23,329
7,203
Number of employees taking parental leave
452
484
158
427
G4-LA4 Minimum notice period(s) regarding operational changes, including whether these are specified in 
collective agreements
The minimum period for giving formal notice of organisational changes within the companies of the 
Group is not currently regulated. However, when any significant event occurs, it is customary to notify 
the affected groups sufficiently in advance to allow them to act with the due process and thus comply 
with any applicable statutory deadlines.
EU15 Employees eligible to retire in the next 5 and 10 years
Employees eligible to retire
In the next 5 years (%)
In the next 10 years (%)
2014
2013
2014
2013
Basic boundary
15.39
14.62
29.05
28.57
Expanded boundary
15.14
14.83
29.40
28.93
A breakdown by job category and region can be found in the Information Supplementary to the 
Sustainability Report 2014, available at www.iberdrola.com.

Part ii. Specific standard disclosures   /   169
Sustainability Report 2014     /
EU17 Days worked by contractor and subcontractor employees involved in construction, operation and 
maintenance activities
To perform those activities that the Company deems necessary to carry out at its facilities using 
subcontracted personnel, Iberdrola follows a procedure of executing services agreements defining the 
type of activities to be performed, and contractors are responsible for allocating and managing the 
resources required for the proper performance thereof.
To ensure that the subcontracted activities are performed in alignment with the values of the Group, the 
subcontracted companies:
  Must be approved in accordance with the process described in the “Supplier Contracting and 
Relationship” section of the “Human Rights” chapter of this report, which takes into account both their 
technical performance and their labour, environmental, and social practices.
  Must meet the requirements set forth in the Group’s contracting conditions, available at www.
iberdrola.com which take into account financial and quality aspects as well as environmental, labour, 
health and safety, and social responsibility performance.
Under these terms and conditions, subcontractors manage their technical and human resources and 
Iberdrola supervises the subcontracted activities performed, and does not deem it necessary to keep 
statistics regarding subcontracted personnel, except as regards health and safety given the importance 
of these issues in the social area as a material aspect. Accordingly, this document does not include 
the information on subcontracted personnel required by the GRI protocols in indicators G4-11, G4-LA1, 
EU17 and G4-LA4.
EU18 Contractor and subcontractor employees that have undergone relevant health and safety training
Subcontractors of the Group companies must meet all requirements established in the Iberdrola 
Group’s contracting conditions, which are available at www.iberdrola.com. For that reason, Iberdrola 
believes that 100% of the employees of such companies, regardless of their category, have received 
appropriate health and safety training.
Aspect: Occupational health and safety 
Management Approach 
Policies and commitments
The Occupational Risk Prevention Policy approved by the Company’s Board of Directors describes the 
principles that should guide the behaviour of the Group’s companies in this area.
By way of supplement, the Group’s companies have occupational risk prevention plans and specific 
procedures that make up a management system for the prevention of occupational risks, which is 
implemented at such companies and externally audited. This system develops the principles that the

170   /   Part ii. Specific standard disclosures 
/   Sustainability Report 2014 
Company has adopted to ensure compliance with legal requirements and to comply with expectations 
for the ongoing improvement of activities in this area. 
The commitments assumed as regards prevention are the following:
  Implement the Occupational Risk Prevention Policy.
  Integrate risk prevention within the Company’s overall management system through the 
implementation and application of the Risk Prevention Plan.
  Measure and monitor health and safety results through key indicators, which are periodically reported 
to the businesses. 
  Investigate all accidents, especially significant accidents and incidents, formulating appropriate 
conclusions and recommendations for improvement.
Goals 
For financial year 2014, health and safety goals have been established at the Group level based on the 
monitoring of indicators, a continuation of annual planning, and the implementation of systems for 
ongoing improvement.
Particular goals have also been established for the businesses, such as obtaining or maintaining 
OHSAS 18001 certification, the creation of safe behaviour improvement plans, as well as the 
quantification of risk detection and of monitoring measures implemented. 
Responsibilities
The main responsibility of the preventive action lies with the company, and therefore its organisational 
hierarchy, which is required to introduce prevention standards, guidelines, and policies into all of its 
activities and decisions, and across all levels of the organisation with executive or decision-making 
abilities.
In order to assist the Company in achieving this end, there is a health and safety organisational 
structure made up of an Iberdrola Prevention Area within the Human Resources Division. 
Due to the importance given to the prevention of occupational risks, preventive principles must be 
applied by each of the companies adhering to the 5th Collective Bargaining Agreement, as set forth in 
their Occupational Risk Prevention Plan.
In accordance with the principle of integration of occupational risk prevention, the hierarchical/
functional organisation of each company is entrusted with giving effect thereto and is responsible for 
complying with and enforcing health and safety rules within its area of activity.
All of the companies of the Iberdrola Group have occupational health and safety committees, 
under different names, to establish channels for consultation and participation with the employee 
representatives in this area, to monitor indicators, and to plan and take measures to correct 
deficiencies and to improve the Health and Safety System.

Part ii. Specific standard disclosures   /   171
Sustainability Report 2014     /
Policies and Requirements regarding Health and Safety of Employees and Employees of Contractors and 
Subcontractors
The health and safety requirements established for the workforce are set forth in the collective 
bargaining agreement of each company, in the procedures making up the Occupational Risk Prevention 
Management System, and in the internal regulations of each of the Group’s companies in Spain.
As regards contractors and subcontractors, the Group’s contracting conditions, which are available 
at www.iberdrola.com, specify the requirements to be met by firms wishing to participate in a 
procurement process. In addition, the particular conditions regarding occupational risk prevention are 
set forth in the Business Activities Coordination Plan, which is also a contractual document.
By way of example, the following are some of the specified health and safety requirements:
  Subcontracted employees who have specific duties to monitor and control occupational risk 
prevention must provide evidence of having received the training established for such purpose under the 
law applicable thereto.
  Subcontracted employees shall have the necessary training to deal with the risks of the facilities 
and of the work to be performed. In the case of Spain, when performing work involving electrical risk 
at electrical installations or in the vicinity thereof, they must have the training mandated under Royal 
Decree 614/2001. 
  In submitting an offer, contractors must provide a report on their accident rate for the last three years, 
specifying the accident rate of the contractor’s group or section engaged in the work bid for or in similar 
work.
  During the performance of the work or service, the contractor must adopt such measures as are 
necessary to comply with its obligations and those of the companies to which the contractor has 
subcontracted such work or services.
  The contractor shall be responsible for safety conditions during the period of execution of the works 
or performance of the service, as well as for any supplementary measures that are required for the 
proper performance of the subject matter of the contract.
G4-LA5 Employees represented on formal health and safety committees (management/employees) 
In Spain, the companies that are signatories of the 5th Collective Bargaining Agreement have a central 
committee that coordinates the activities of the thirty-eight local health and safety committees to which 
all work centres and administrative units are assigned. At Iberdrola Ingeniería y Construcción, there is 
a Central Health and Safety Committee and three local committees that meet on a quarterly basis and 
where all matters relating to the health and safety of the employees of the company are examined with 
workers’ representatives. 
At ScottishPower, a Health and Safety Governance Committee is responsible for the overall strategy 
and guidelines in this area. It is made up of members of the management team and by occupational 
health and safety specialists. It receives support from the Health and Safety Board and from the Health 
and Safety Council. In addition, each business has its own Health and Safety Committee.

172   /   Part ii. Specific standard disclosures 
/   Sustainability Report 2014 
At Iberdrola USA, there are committees at all businesses to review work involving greater risk. Unions 
and executives are involved in occupational health and safety through their participation in such 
committees and regular safety meetings.
In the Renewables Business in the United States of America, there are regular meetings of the local 
health and safety committee and of the Central Committee to review the activities of all regions, health 
status, and the achievement of safety objectives.
Iberdrola Mexico has a mixed health and safety committee at each facility, governed by the Mexican 
NOM-029-STPS standard and by the collective bargaining agreement. There is also a Safety Committee 
(COSE) made up of the heads of safety and environment at each facility and coordinated by the 
Generation Division.
At Elektro, there is a Safety Committee made up of members of the management team and by the 
businesses’ occupational health and safety specialists.
In the area of occupational risk prevention, the Group has the following evaluation and monitoring 
mechanisms, which go beyond the legal requirements in each of the countries in which the Group has a 
presence.
  The occupational health and safety management systems of the Group in Spain, the United Kingdom, 
Mexico, and Brazil37, in addition to those of the Renewables Business in Portugal, Hungary, Romania, 
and Italy, have OHSAS 18001:2007 certification. 
  In the United States of America, Iberdrola USA has specific procedures and programmes, while work 
is also under way to develop an occupational risk prevention management system based on the OHSAS 
18001 standard. Also, within the Renewables Business, the Klamath thermal plant has achieved the 
highest certification available in that country, the OSHA VPP Star by the OSHA of the State of Oregon. 
Employees represented on 
health and safety committees (%)
2014
2013
Basic boundary
95.52
96.81
Expanded boundary
94.58
96.83
A breakdown by geographical area and a description of the various committees of the Iberdrola Group 
can be found in the Information Supplementary to the Sustainability Report 2014, available at www.
iberdrola.com.
37  The Brazilian subsidiary Elektro has obtained such certification for 50% of its employees.

Part ii. Specific standard disclosures   /   173
Sustainability Report 2014     /
G4-LA6 Type of injury and rates of injury, occupational diseases, lost days, absenteeism, and total number of 
work-related fatalities, by region and by gender
Accident rate among Group personnel38
2014
2013
Basic boundary
Number of accidents
With fatality
With leave
Without leave
483
1
74
408
435
0
 88
347
Number of fatalities 
1
0
Number of lost days
4,700
3,587
Injury with leave rate (IR)
0.31
0.36
Occupational disease rate (ODR)
0.00
0.00
Lost day rate (LDR)
19.28
14.76
Expanded boundary
Number of accidents
521
486
Number of fatalities 
1
0
Number of lost days
7,375
4,223
Injury with leave rate (IR)
0.39
0.46
Occupational disease rate (ODR)
0.01
0.02
Lost day rate (LDR)
27.98
15.85
38  Methodology for calculating the indicators (per GRI standard): 
- Injury rate (IR) = (number of injuries with missed (absentee) days*200,000)/hours worked 
- Occupational disease rate (ODR) = (number of occupational diseases cases/hours worked)*200,000 
- Lost day rate (LDR) = (days lost per accident/hours worked)*200,000 
- Absenteeism rate (AR) = (missed (absentee) days/days worked)*200,000

174   /   Part ii. Specific standard disclosures 
/   Sustainability Report 2014 
Absenteeism among Group personnel38
2014
2013
Basic boundary
Number of missed days per year
18,777
27,640
Men
10,956
18,471
Women
7,821
9,169
Number of lost days
192,520
180,726
Men
131,310
125,104
Women
61,210
56,622
Number of person equivalents
527.45
495.14
Men
359.75
342.75
Women
167.70
152.39
Absenteeism rate (AR)
6,319.76
5,807.57
Expanded boundary
Number of missed days per year
21,189
31,280
Number of lost days
204,786
192,830
Number of person equivalents
561.06
528.30
Absenteeism rate (AR)
6,211.45
5,930.94
In addition to the indicators mentioned above, the following indicators are considered to be relevant 
in Spain: frequency rate, severity rate, and incidence rate. The information corresponding to these 
indicators, as well as the information by geographic area, is provided in the Information Supplementary 
to the Sustainability Report 2014, available at www.iberdrola.com.
38  Methodology for calculating the indicators (per GRI standard): 
- Injury rate (IR) = (number of injuries with missed (absentee) days*200,000)/hours worked 
- Occupational disease rate (ODR) = (number of occupational diseases cases/hours worked)*200,000 
- Lost day rate (LDR) = (days lost per accident/hours worked)*200,000 
- Absenteeism rate (AR) = (missed (absentee) days/days worked)*200,000

Part ii. Specific standard disclosures   /   175
Sustainability Report 2014     /
The table below shows the accident and absenteeism rates of subcontracted employees:
Injuries and absenteeism 
among subcontracted personnel
2014
2013
Basic boundary
Number of accidents
With fatality
With leave
Without leave
515
1
144
370
458
1
186
271
Number of fatalities 
1
1
Number of lost days
4,304
5,109
Expanded boundary
Number of accidents
595
558
Number of fatalities 
4
2
Number of lost days
7,773
11,374
G4-LA7 Workers with high incidence or high risk of diseases related to their occupation
The majority of the Iberdrola Group’s companies monitor the health of their employees for prevention 
purposes, using in-house or outsourced medical services that are responsible for monitoring the health 
of employees through regular medical check-ups.
In general terms, the Company considers that employees are not exposed to specific occupational 
or work-related diseases in the course of their work that may be considered to have a high level of 
incidence or to carry a high risk.
At the companies of the Group in Spain, in addition to periodic monitoring, work has continued 
during 2014 with the study of psychosocial risks and other pathologies among its workers, such as 
cardiovascular diseases and cancer.
The incidence of HIV/AIDS is very low and it is treated on a case-by-case basis in total confidence.
In 2014, a campaign was completed to prevent cardiovascular disease among the employees of 
Iberdrola and their families, which included on-site courses regarding this particular risk. In addition, the 
company’s medical services in Spain carried out a prevention campaign for the most common types of 
cancer. There was a continuation of the road safety campaign commenced in 2011, with more than 2,100 
assessments performed through year-end 2014.
To supplement Social Security protection, Iberdrola has procured health care for its employees through 
one or more private insurance companies.

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Currently, some companies of the Group provide training programmes for social interest organisations 
outside of the Company. For example, in Spain courses were held for civil defence teams and firefighters 
from various communities and for associations with students at risk of social exclusion. Courses in 
occupational health and safety have been provided in collaboration with official bodies.
ScottishPower has developed policies and procedures as part of its occupational health and safety 
activities geared towards ensuring not only compliance with the law, but also the promotion of best 
prevention practices at all operational levels.
In order to strengthen a culture of prevention, ScottishPower publishes the Wellbeing News magazine, 
with content aimed at the prevention of risks to the health of employees and their families; in 2014, it 
focused mainly on the risks related with cardiovascular diseases, muscle injuries and mental health. In 
the same year, there has been work in cooperation with Cancer Research UK to provide information to 
employees on the possible causes of cancer and the importance of early detection.
Iberdrola USA offers its employees personal medical insurance as part of their benefits. In the 
operational sphere, an action plan in case of generalised epidemics has been expanded to include 
all infectious diseases, with the formation of a Pandemics Supervisory Team and the updating of 
procedures, while seasonal flu prevention plans and health information plans for all employees continue 
in effect. The Networks Business in the United States of America has identified significant opportunities 
for improvement with the implementation of safe driving programmes. 
The Renewables Business in the United States of America offers medical insurance to all personnel as 
part of their benefits, as well as flu vaccinations, and health fairs at offices and major facilities.
In Mexico, the Safety, Health, and Environment Week campaign continued in 2014 in order to strengthen 
care for the safety of people and the environment. This event took place at each facility, fostering the 
adoption of healthy eating habits and sports and leisure activities, among other things.
At Elektro, there were advertising campaigns and training materials on the safe use of electricity. 
Elektro’s health service carries out training activities with regular lectures on first aid, a balanced diet, 
ergonomics, etc. It also conducts preventive health monitoring through regular medical check-ups of 
100% of employees. 
G4-LA8 Health and safety topics covered in formal agreements with trade unions
The bodies responsible for coordinating and monitoring the implementation of preventive standards 
and procedures are the Prevention Coordinating Committees, working closely with the Joint Prevention 
Service of the companies of the 5th Collective Bargaining Agreement.
All work centres and administrative units of the companies that are signatories of the 5th Collective 
Bargaining Agreement are assigned to local health and safety committees. Overall, there are thirty-

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eight committees that coordinate their activities through a central committee, all of which were created 
in accordance with the Occupational Risk Prevention Act. Such committees are formed with equal 
representation between the company and the workers. In 2014, the committees met on a quarterly basis 
and were the most important consultation, participation, and control bodies of the Occupational Risk 
Prevention Management System, as well as the forum where formal agreements on the matter were 
reached with the trade unions.
At ScottishPower, an Occupational Health and Safety Policy sets forth the Company’s principles to 
ensure compliance with statutory requirements and to comply with the expected ongoing improvement 
in this matter. The company also has a Health and Safety Governance Committee made up of members 
of the management team and key occupational health and safety specialists of the business, and is 
responsible for designing the overall strategy and the lines of action in this area. In addition, there is a 
Health and Safety Board that provides technical support and advice, and a Health and Safety Council 
that acts as a forum for consultation with workers’ representatives on these matters.
The health and safety results are measured and monitored through key indicators, which are analysed 
and periodically reported to the Executive Committee of the Business.
In the United States of America, the Networks Business has improved the safety management structure, 
communication methods, and commitment to supervision during 2014. The strategic safety plans 
for all of the businesses in New York and Maine use a safety improvement platform, which includes 
procedures, rules, and systems for the management thereof. 
Within the Renewables Business, the process to develop both occupational health and safety regulations 
and training is carried out by a committee made up of executives and field personnel.
Iberdrola Mexico has a mixed health and safety committee at each facility, governed by the Mexican 
NOM-029-STPS standard and by the collective bargaining agreement. There is also a Safety Committee 
(COSE) made up of the heads of safety and environment at each facility and coordinated by the 
Generation Division.
Elektro has a Health and Safety Management System that defines work procedures and instructions, 
which is available on its intranet. The company also has a Mixed Health and Safety Committee that 
ensures the effectiveness of activities and communication on risk prevention actions as a value that 
informs all of its activities and is part of the company’s culture.
As regards other companies in which Iberdrola has an interest in Brazil, 81.84 % of employees have 
mixed health and safety committees that meet regularly to deal with matters of mutual interest in 
connection with prevention activities.
Aspect: Training and education
Management Approach
Policies and commitments
The policies applied by Iberdrola in the area of labour relations are identified in the introduction to 
this chapter. To specifically implement them, the training plans of the Group’s companies establish

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a conceptual framework integrating all the training areas, designed to facilitate culture change in 
the Company, contribute to expansion of the corporate culture, create value for the Company, and 
encourage the sustainable development of the Company. Specific programmes described in the specific 
indicators of this section are developed to supplement these plans.
In addition to that which is necessary to comply with legal requirements, the training offered includes 
that which enables all employees to carry out the duties of their job while meeting their personal goals. 
The plans are validated by the heads of the businesses and by the Human Resources Division.
The commitments assumed with the start-up of these plans and programmes are summarised below:
  Professional improvement for job performance.
  Adjustment of human resources to technological and organisational changes. 
  Adaptation of new employees to the Company.
  Better professional development, creating expectations of promotion. 
Specific Goals and Activities
Significant activities were carried out in the training area during 2014:
  Continued with providing and promoting the training needed for the STAR Project on smart grids and 
Project 2020, both within the Networks Business.
  Continued with implementation of the OneHR project to include the management of professional 
training and development at the international level, unifying the model and processes applied. 
  Strengthened professional development resources aimed at persons with management potential. 
These include an international MBA programme on the energy industry. 
  Continued with the project to develop the Iberdrola Campus. 
During 2013, Iberdrola joined in the Youth Entrepreneurship and Employment Strategy 2013-2016 of the 
Government of Spain, through an agreement signed by the Minister for Employment and Social Security 
and the chairman of the Iberdrola Group. Within the framework of this agreement, and with a view 
toward fostering the hiring of youth for their first professional experience and facilitating the integration 
of disadvantaged groups into the workforce with an emphasis on full-time hiring, in 2014 Iberdrola 
included two of its courses from the Academic Specialities catalogue so they could be officially offered 
to persons without specific qualifications.
Iberdrola’s Knowledge Management Policy recognises the importance that intellectual capital represents 
for the Company. In implementing this policy, which is intended to disseminate and share the knowledge 
existing within the company by fostering ongoing learning and cultural exchange, Iberdrola reaffirms that 
the company’s intellectual capital depends on its people, its operational and organisational structures, 
and its internal and external relationships with all stakeholder groups. At Iberdrola, learning is thus 
permanent, ongoing, and aligned with the strategy of the Group. 
The Knowledge Management Policy is founded on a number of basic principles of action, a description 
of which can be viewed at www.iberdrola.com.

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G4-LA9 Hours of training 
Employees and hours of training by professional category
2014
2013
Men
Women
Men 
Women
Basic boundary
Number of employees 
Management team
Middle managers and skilled technicians
Skilled workers and support personnel
732
8,237
12,076
140
3,441
2,761
729
7,827
13,010
140
2,860
3,691
Hours of training 
Management team
Middle managers and skilled technicians
Skilled workers and support personnel
20,172
277,142
470,098
3,519
75,291
45,528
28,884
305,216
603,803
4,788
79,744
72,817
Average hours of training by employee
Management team
Middle managers and skilled technicians
Skilled workers and support personnel
30.95
37.00
39.83
30.76
27.21
25.20
49.15
44.42
48.11
45.49
37.54
25.84
Expanded boundary
Number of employees 
22,752
6,845
23,329
7,023
Hours of training 
877,106
148,777
1,019,774
174,935
Average hours of training by employee 
40.92
29.27
47.83
32.44
A breakdown by geographic area can be found in the Information Supplementary to the Sustainability 
Report 2014, available at www.iberdrola.com. 
 G4-LA10 Programmes for skills management and lifelong learning
The third cycle of the Savia programme (a professional development model based on general and 
technical competencies directed towards technicians) commenced in February 2014. On this occasion, 
a new software tool supported by SAP has been introduced and developed within the framework of the 
OneHR project, which is intended to unify all of the Human Resources management processes at the 
international level.
As regards training for professionals with the potential for management development, the second 
academic year of the Global Energy Industry MBA programme, which is an in-company programme with 
participants from Spain, the United Kingdom, the United States of America, Mexico, and Brazil, was

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provided in 2014. The programme, which lasts for two and a half years, combines the materials of an 
MBA with specific content for the energy sector, and is accredited by Universidad Pontificia Comillas 
and the University of Strathclyde. Various business management training modules have also been 
launched for the group of persons with management potential. 
The virtual global welcome module, available in English, Spanish, and Portuguese, continues to be 
accessible for all employees of the Iberdrola Group.
In the international arena, work has continued with various companies of the Group to share resources 
and training and development programmes, seeking synergies. The catalogue of skills has been 
standardised and systematised, and this model has been extended to the United States of America and 
to ScottishPower using the same shared tool within the OneHR programme.
These channels of international cooperation and exchange have also extended to certain contents 
relating to technical training, hand-in-hand with the integration processes that are being carried out at 
the various businesses of Iberdrola. 
Several working sessions were held with ScottishPower, Iberdrola USA, Iberdrola Mexico, and Elektro 
during 2014, primarily in order to exchange knowledge, information, and experience in the training and 
development areas. 
ScottishPower has specific training programmes to improve the skills of all its employees. The company 
has an employee development review (EDR) process, which assesses talent in order to identify persons 
with high potential, define succession plans, and establish the development needs of the entire 
workforce. 
Training programmes at ScottishPower include the following: Into Leadership, Performance 
Management, Leading Change: making change work, High Performance Coaching, Positive Influencing 
and Building Resilience: Stress Management, and technical training programmes.
Iberdrola USA also has training plans to enable its employees to improve their capabilities and to gain 
access to higher-level positions. Along these lines and following the success of its DRIVE programme, it 
has launched a corresponding version for supervisors. 
Iberdrola México has continued with its programme directed at persons with potential, to foster skills 
development, outcomes achievement and ongoing improvement, innovation and creativity, initiative, and 
communication and influence. 
Elektro has specific programmes in place to train its employees. The most significant initiatives in 2014 
were: training in assertive communication, leadership development, the Future Generation Programme 
(Programa Generación Futura) for professionals with potential, and Focus on Management (Gestión en 
Foco) to develop the necessary skills for team management.
Specific Training for Executives
The Executive Development Unit worked on the coordination and supervision of a global talent review 
process in the various countries and businesses in 2014.

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Continuation of the Leadership Development Project (LDR) which, with the help of an outside partner, is 
intended to evaluate management abilities against the Group’s leadership model.
Executive training and development at the global level have been administered through the Management 
School, whose most significant activities in 2014 were:
  Energising Leadership Program, taught by ESADE Business School and geared towards those 
executives who are less firmly established in their responsibilities and/or trainee managers with high 
potential. 
  The Global Leadership Program taught by IMD Business School. This programme is directed towards 
established executives that have a track record with the Group.
  The second year of the MBA in the Global Energy Industry, accredited by Universidad Pontificia de 
Comillas and the University of Strathclyde, was provided in 2014.
  Iberdrola Ingeniería y Construcción continued throughout 2014 with its internal mentoring programme 
directed towards key personnel, in which the members of the management team act as mentors. It has 
also instituted an innovation and leadership workshop.
  Various executives from Elektro and from ScottishPower participated in their local coaching 
programmes. ScottishPower continued with the Transition Coaching, Coaching for Leaders and Talent 
Dinners programmes.
  In Spain, a Spanish version of the business strategy simulator was developed, with the presence of 
local executives.
  Iberdrola USA has continued providing the DRIVE programme, and ScottishPower has continued with 
the Leadership Excellence programme. Both programmes are based on the elements of Iberdrola’s 
leadership model.
Other actions carried out with the management team in 2014 included the holding of seminars, 
conferences, workshops, etc.

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Training programmes
2014
2013
Basic boundary
Participants at in-house courses
6,712
1,974
Participants at outside courses
1,420
1,523
Sabbaticals
0
0
Expanded boundary
Participants at in-house courses
6,925
1,974
Participants at outside courses
1,701
1,523
Sabbaticals
0
0
A quantitative breakdown by geographical area can be found in the Information Supplementary to the 
Sustainability Report 2014, available at www.iberdrola.com.
G4-LA11 Employees receiving regular performance and career development reviews
Performance and development reviews
2014
2013
Basic boundary
Number of employees 
27,387
28,257
Men
21,045
21,566
Women
6,342
6,691
Employees with performance 
reviews (%)
80.56
80.00
Men (%)
81.99
81.19
Women (%)
75.79
76.17
Expanded boundary
Number of employees 
29,597
30,532
Employees with performance 
reviews (%)
81.61
80.87

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A breakdown by geographical area can be found in the Information Supplementary to the Sustainability 
Report 2014, available at www.iberdrola.com. 
Aspect: Diversity and equal opportunity 
Aspect: Equal remuneration for women and men
Management Approach 
Policies and commitments
The policies applied by Iberdrola in the area of labour relations are identified in the introduction to this 
chapter, and include the Equal Opportunity and Reconciliation Policy, which promotes the commitments 
of equal treatment between men and women and support for workers with disabilities, ensuring their 
effective employment.
The Iberdrola Group has procedures in place to prevent any discrimination for reasons of race, colour, 
gender, language, religion, political opinion, national origin, social status, status as a member of an 
indigenous community, disability, health, marital status, pregnancy, sexual orientation, or other personal 
condition that is unrelated to job-performance requirements.
The Group’s companies, in the various countries in which they operate, promote equal opportunity 
without discrimination, respect diversity by promoting effective equality between men and women in 
access to employment, training, promotion, and working conditions, and provide support to disabled 
workers, promoting the labour integration thereof. ScottishPower has defined eight specific internal 
policies in this area, and Iberdrola USA has five similar policies.
In order to give effect to the principle of non-discrimination, the 5th Collective Bargaining Agreement in 
Spain provides that workers with disabilities will work in conditions that ensure the application of equal 
treatment and assure their professional progress through access to the training scheduled for other 
workers. To achieve the integration of these workers, appropriate measures will be adopted for the 
adjustment and accessibility of the job, based on the requirements and characteristics thereof and on 
the needs in each specific situation.
The Equal Opportunity and Reconciliation Policy includes, among other things, a principle of not 
establishing salary differentials based on gender in the hiring of personnel, and Iberdrola will continue to 
promote effective equality between men and women in all areas of working life.
More information regarding equal opportunity policies implemented by the Company is provided on the 
corporate website. 
Goals
The main goals in this area during 2014 have focused on: 
  Continued work on the project implemented in 2012, called São Paulo Volunteer Vacations 2.0, to 
help young persons between 12 and 14 years old to realise their potential and make social and labour 
integration a reality, through training.

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  Participation in the Companies for a Society free of Gender Violence initiative, in collaboration with the 
Ministry of Health, Social Services and Equality.
  In Spain, preparation and dissemination among the workforce of a gender violence detection and 
prevention handbook, and a dependency assistance handbook.
  Collaboration agreement between the Ministry of Health, Social Services, and Equality and Iberdrola 
on the adoption of measures to increase the presence of women in Executive and Management 
Committee positions. 
  Holding of domestic and international volunteer days, and in particular International Volunteer Day, 
conducted jointly in Spain, the United Kingdom, the United States of America, Mexico, and Brazil.
  In Spain, the development of cultural exchange programmes for the children of employees; practical 
workshops on IT security for youth; No-School Days and urban and residential camps. 
  International cultural exchange programmes between children of employees, under the Hello/Hola and 
My Guest (Mi invitado) programmes.
  In the United Kingdom, ScottishPower has joined initiatives such as Women In Renewable Energy 
Scotland (WiRES), the Think, Act, Report Initiative to promote the career path of women employees, and 
the Business Disability Forum to support functional diversity.
  In the United States of America, the activities performed include collaboration with the Troops to 
Energy project, or alliances with pro-ethnic minority organisations.
Specific activities
  Principle of non-discrimination: in order to give effect to the principle of non-discrimination, the 5th 
Collective Bargaining Agreement provides that when there are employees with disabilities, appropriate 
measures will be adopted for adaptation and accessibility of job positions. 176 persons had been 
relocated in Spain for these reasons through year-end 2014. 
  Family Plan: this plan, initiated in 2008, is intended to facilitate the integration into the labour and 
social world of family members of employees of the companies party to the 5th Collective Bargaining 
Agreement with some kind of disability. 90 families have benefited from this initiative through 2014.
  Donation agreements: in Spain, Iberdrola has established agreements that provide for donations to 
entities or foundations whose purpose is professional training, entry into the job market, or the creation 
of employment for persons with disabilities. In addition, agreements have been made with special 
employment centres that exceed the amount required by law to be invested in alternative measures.
  ComunicA service: this video-interpretation service was commenced in 2013 to provide consultation 
and offer personalised advice to users with hearing disabilities, as a result of the renewal of the 
agreement with the National Confederation of the Deaf (Confederación Nacional de Sordos de España); 
this collaboration continued throughout 2014.
  Elektro Inclusive School: this project, which was commenced in 2009 in collaboration with social 
institutions, prepares persons with disabilities or difficulties for their integration into the labour market. 
Some of the participants in this project are hired by the company upon completion of their training 
period.

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G4-LA12 Composition of governance bodies and employees
Employees in the workforce
2014
2013
Basic boundary
By gender
Men
Women
 
21,045
6,342
21,566
6,691
By age group
Up to 30 years old
Between 31 and 50 years old
Over 50 years old
 
3,526
15,019
8,842
3,862
15,500
8,895
By professional category
Management team 
Middle managers and skilled 
technicians 
Skilled workers and support 
personnel
 
872
 
11,678
 
14,837
 
868
 
10,687
 
16,702
Number of employees39
27,387
28,257
Expanded boundary
Number of employees
29,597
30,532
A breakdown by geographical area can be found in the Information Supplementary to the Sustainability 
Report 2014, available at www.iberdrola.com. 
Board of Directors
2014
2013
By gender
Men
Women
9
5
10 
4
By age group
Up to 30 years old
Between 31 and 50 years old
Over 50 years old
0
2
12
0
3
11
Number of members 
14
14
39  The total number of workers and the definition of the corresponding boundaries are located in sections G4-9, G4-10, and G4-17 
of this report.

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For reasons of confidentiality, in order to comply with the requirement established by the personal data 
protection laws in effect in each country, the information systems of the companies making up the 
Iberdrola Group do not record their membership by ethnic group, religious group, or any other diversity 
indicator. 
G4-LA13 Ratio of basic salary and remuneration of women to men
The table below shows the salary ratio of men to women within the basic and expanded boundaries 
and, although the data set forth therein might suggest inconsistency with the management approach 
described above, the differences between the salaries of men and women are a consequence of 
changes in the structure of the workforce rather than the result of a discriminatory policy, given that 
each professional category includes:
  different professional levels, with different proportions between men and women, and
  groups from different geographical areas, in different currencies and salary bands.
Salary ratio of men to women (%)
2014
2013
Basic boundary
By professional category
Middle managers and skilled 
technicians
Skilled workers and support 
personnel
108.97
98.87
109.07
94.30
Expanded boundary
By professional category
Middle managers and skilled 
technicians
Skilled workers and support 
personnel
106.81
99.11
107.36
93.73
A breakdown by geographical area can be found in the Information Supplementary to the Sustainability 
Report 2014, available at www.iberdrola.com.

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Aspect: Supplier assessment for labour practices
Management Approach  
G4-LA14 Percentage of new suppliers that were screened using labour practices criteria 
G4-LA15 Significant negative impacts in the Supply Chain
The management approach regarding the Iberdrola Group’s supply practices is described in the G4-12 
“Description of supply chain” indicator of this report.
New suppliers are evaluated according to such management approach and their significant risks 
regarding labour practices are managed through quality procedures and periodic audits.
Aspect: Labour practices grievance mechanisms
Management Approach
The grievance procedures and tools that Iberdrola makes available to its stakeholders, as well as the 
management processes with respect thereto, are described in the management approach for the aspect 
“Grievance mechanisms for impacts on Society” in section G4-SO11 of the “Society” section of this 
report.
G4-LA16 Grievances about labour practices
Using the standard that class actions on the same matter are deemed to be a single grievance, the 
companies within the basic boundary received 110 grievances about labour practices in 2014; of these, 
87 were resolved in that same year. In addition, 14 other grievances pending from previous years have 
been resolved.

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C2. 
Human rights
The aspects analysed and reported on in this chapter are the following:
Aspects of the GRI-G4 Guidelines
(Those indicators that require additional information per the electric utilities sector supplement are identified with (*))
Investment
Non-discrimination
Freedom of association and collective bargaining (*)
Child labour
Forced labour
Security practices
Indigenous rights
Assessment of impact on human rights
Supplier human rights assessment
Human rights grievance mechanisms	
Specific Aspect of the Iberdrola Group
Iberdrola and the Global Compact
The information boundaries used in this chapter are defined in section G4-17 of this report.

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Specific Management Focus on Human Rights
The Company is explicitly committed to the defence of human rights, and it has a set of instruments 
that ensures and promotes respect for human rights, hindering or preventing the violation thereof. 
To that end, the Company’s practices are in line with the principles of the UN Global Compact, the 
OECD Guidelines for Multinational Enterprises, and the International Labour Organization’s Tripartite 
Declaration of Principles Concerning Multinational Enterprises and Social Policy. 
Iberdrola has a General Corporate Social Responsibility Policy for this purpose, the principles of which 
must be observed by all professionals of the Group, regardless of the place in which they carry out their 
activities. The Board of Directors has also approved other policies complementary thereto in the defence 
of human rights, such as the Respect for Human Rights Policy, which contains the Group’s commitment 
to human rights, and the Procurement Policy and the Suppliers’ Code of Ethics, which promote 
compliance by suppliers with applicable law and with the United Nations Global Compact.
To put this culture into practice and along with the aforementioned instruments, Iberdrola also has a 
Code of Ethics that governs the conduct generally of all Group professionals and, in particular, conduct 
relating to the defence of human rights, and also establishes control mechanisms and disciplinary 
sanctions in the event of non-compliance with the provisions of such code.
In the management of human rights, Iberdrola applies the management elements described in the 
“General management approach” section of this report.
It is the responsibility of each of the companies in the Group to follow approved policies and to apply 
the principles for the protection of human rights. These policies, along with others also approved by 
Iberdrola’s Board of Directors, may be viewed at www.iberdrola.com.
Aspect: Investments
Management Approach
The policies, codes, and procedures governing the operation of the Company are applied in all 
Iberdrola’s activities, including investments. For that reason, Iberdrola is confident that investments are 
made in accordance with strict standards of respect for human rights, and has no evidence through the 
ethics channels established for such purpose of any kind of activity, whether internal or external, of any 
actions contrary to such rights. Accordingly, although the investment agreements put into practice do 
not specifically include this type of provision, they are all protected by the procedures applied at the 
Company.

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G4-HR1 Investment agreements and contracts that include human rights clauses 
There were 17 particularly significant projects during financial year 2014: three in Mexico, namely, the 
combined cycle unit of Monterrey, the Ramos Arizpe Cogeneration Plant, and the Baja California III 
combined-cycle unit; six wind farms in Brazil that will come on stream in 2016; two wind farms in the 
United Kingdom; and four agreements relating to offshore wind farms of the Wikinger project. In Spain, 
work continued on the Madrid Plan project for reducing the size of substations and dismantling high 
voltage overhead lines, and on the STAR project for installing smart grids.
G4-HR2 Employee training on human rights
Iberdrola’s employees have been informed of the existence of the various policies approved by the 
Board of Directors and of the Code of Ethics, and all newly-hired employees receive a copy of such code 
together with their contract. This code is available at the Employee Portal and at www.iberdrola.com, 
both to employees and to any person wishing to become acquainted with such matters.
This year, employees participated in specific training on human rights and equality, and more than 13,000 
hours of training on aspects relating to human rights were carried out at the Iberdrola Group as a whole 
(expanded boundary). As part of this training, Iberdrola has made available to employees of the Group a 
specific online course on human rights training, which more than 9,100 employees successfully passed 
during 2014.
Aspect: Non-discrimination
Management Approach
Iberdrola believes that non-discrimination is a concept that can be managed in a coordinated fashion 
with the concepts of diversity and equal opportunity, for which reason the management approach is 
dealt with in the chapter “Labour practices and decent work” in the “Diversity and equal opportunity” 
aspect.
G4-HR3 Incidents of discrimination
Reported incidents of discrimination (no.)
2014
2013
Expanded boundary
4
13

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In the United States of America four complaints for incidents of discrimination were received and 
reviewed; two were resolved and the other two are pending resolution. There is no evidence of any 
complaint or incident on these grounds at the rest of the companies.
Aspects: Freedom of association and collective bargaining, child labour and forced labour
Management Approach
In applying the policies and commitments described at the beginning of this chapter, Iberdrola takes 
the measures it has believed are necessary to ensure that workers may exercise their rights to freedom 
of association and collective bargaining in all countries in which it operates. It also has the necessary 
measures in place to prevent child labour, forced or compulsory labour, or the assignment of hazardous 
work to young people. 
G4-HR4 Operations and suppliers identified in which the right to exercise freedom of association and collective 
bargaining may be violated or at significant risk
G4-HR5 Operations and suppliers identified as having significant risk for incidents of child labour
G4-HR6 Operations and suppliers identified as having significant risk for incidents of forced or compulsory labour
The Company performed a study to identify the significant locations of operation at which there might 
be some risk of violation of such rights. The 2014 report of the International Labour Organization entitled 
Report of the Committee of Experts on the Application of Conventions and Recommendations was 
referred to for that purpose. 
Those countries that have not ratified the conventions on forced labour (C029, C105), trade union 
freedom and collective bargaining (C087, C098), and child labour (C138, C182) were deemed to be 
countries at risk, as were countries where, while they had ratified such conventions, findings were made 
that show weak points in the application of any of such conventions. 
According to this standard, 38 locations of operation in countries where some of these risks may exist 
have been identified, representing 30% of the total number of locations of operation of the Group. In 
addition, there are 25 other locations in the United States of America, a country that has not yet ratified 
several of such conventions, but given the socio-political characteristics of that country, Iberdrola does 
not believe there are risks of violation of these rights for the Group’s workers. 
Information regarding suppliers can be viewed in the “Supplier Human Rights Assessment” aspect in 
this chapter.

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Aspect: Security practices
Management Approach
The Corporate Security Policy approved by Iberdrola’s Board of Directors and the procedures adopted by 
the Corporate Security Division are compatible with international human rights provisions and with the 
laws of the countries in which the Company is present. Protocols are clearly defined and implemented 
in line with the certification issued by Aenor in 1999 based on the ISO 9001:2008 standard, which is still 
in effect. The hiring of suppliers in the security area is carried out through the Procurement Division 
pursuant to contracting procedures at the corporate level. The Corporate Security Division is responsible 
for setting the requirements and standards to be met by suppliers and for the evaluation thereof 
during the performance of their contract. Evaluations of suppliers are carried out periodically and are 
intended to identify points for improvement, which are dealt with by the suppliers themselves. Both the 
Company’s and subcontracted personnel are qualified for their duties and enhance their knowledge 
with a strict training plan, which entails the continuous evaluation and monitoring thereof. Internal and 
external audits conducted for such purpose provide information on the status of security and personnel 
involvement at each work centre, detecting strong points and strengthening weaker ones. In addition, 
in order to have an objective viewpoint, a satisfaction survey is carried out each year to help determine 
perception of the security status.
Security-related actions at Iberdrola relate to the provision of both preventive and reactive services, 
which seek to ensure the protection of its assets and the normal conduct of the Company’s activities, 
without interfering with the mission of government authorities. Security personnel working at Iberdrola, 
whether Iberdrola’s own employees or subcontracted personnel, avoid the use of force, employing it 
only and exclusively where strictly necessary and always in proportion to the threat received, in order to 
protect life.
By implementing specific security procedures for each situation, Iberdrola’s Corporate Security Policy 
facilitates adjustment to the realities and characteristics of the countries in which it operates, exercising 
direct responsibility in those cases where it is a majority equity holder, as well as in those where 
management has been entrusted to it. Iberdrola’s security management system is continuously reviewed 
and updated in order to comply with international human rights rules and regulations in each new 
activity that it plans to undertake.

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Sustainability Report 2014     /
G4-HR7 Percentage of security personnel trained in human rights policies or procedures that are relevant to 
operations
Persons carrying out security  
activities (no.)
2014
2013
Basic boundary
Company personnel 
90
90
Subcontracted personnel
1,091
1,350
At the end of financial year 2014, Iberdrola has 90 persons in its workforce to carry out security activities; 
88 of them, i.e. 97.78%, have received human rights training.
Iberdrola also draws on the services of specialised firms, which are responsible for providing the specific 
training required by its professionals to carry out the work entrusted to them. In financial year 2014, 
1,091 subcontracted persons did this type of work, of which 779 (71.40%) received human rights training. 
Aspect: Indigenous rights
Management Approach
In applying the Code of Ethics and its corporate policies, Iberdrola and its employees undertake to 
respect the rights of ethnic minorities and indigenous peoples in the places in which they carry out 
their activities. To this end, the management approaches described at the beginning of this chapter are 
applied. 
G4-HR8 Total number of incidents of violations involving rights of indigenous people.
There is no evidence of actions of Iberdrola entailing a violation of the rights of indigenous communities 
in 2014. There have been or there may be indirect incidents involving these types of communities at 
some of the Company’s facilities, for which the Company is pursuing appropriate solutions. 
In the United States of America, the operation of wind farms might affect various Indian communities, 
with which cooperation agreements are reached to adopt the most appropriate solutions, as in the case 
of the Yakama Indian community in the State of Washington, the Kumeyaay Indian tribe of the Tule Wind 
Project, or the Umatilla reserve, which might be affected by the Montague construction project.

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In Brazil, indigenous and quilombolas (a local ethnic group) communities such as the Tapi-i and Takuary-
ty, or the indigenous community of Ilha de Boa Vista, which have no access to distribution networks, 
have been the beneficiaries of photovoltaic facilities, installed based on agreements executed by Elektro 
with the Brazilian entity Funai and with Eletrobas. A social reforestation project has also been carried 
out with an indigenous community located in Eldorado. Celpe has a substation and transmission lines 
installed on indigenous land within the municipality of Aguas Belas in Pernambuco, with no evidence 
of incidents relating thereto, and Coelba has four productive mini-farms requested by the indigenous 
populations that they affect. 
Also in Brazil, at the UHE Teles Pires plant, a water quality risk has been identified and, as a prevention 
measure, the Limnological and Water Quality Monitoring Programme (Programa de Monitoramento 
Limnológico e da Qualidade da Agua) was implemented, in order to record any alteration in water 
quality, together with other control and mitigation measures. Such programme is part of the plant’s 
Basic Environmental Programme (Programa Básico Ambiental) (PBA), which also has twelve limnological 
monitoring stations.
In May, an incident was recorded at the Belo Monte plant in which there was a demonstration by 
indigenous persons against the tardiness of the consortium in implementing the Basic Environmental 
Plan monitored by FUNAI and by a committee made up of members of the indigenous communities to 
perform activities for the benefit of 11 villages in the region.
Aspect: Assessment of impact on human rights
Management Approach
G4-HR9 Total number and percentage of operations that have been subject to human rights reviews or impact 
assessments
Information regarding locations of operations analysed for human rights issues can be viewed in the G4-
HR4 /G4-HR5 /G4-HR6 indicators of this chapter.
Aspect: Supplier human rights assessment
Management Approach 
G4-HR10 New suppliers that were screened using human rights criteria
G4-HR11 Human rights impacts in the supply chain
The management approach regarding the Iberdrola Group’s supply practices is described in the G4-12 
“Description of supply chain” indicator of this report.
New suppliers are evaluated according to such management approach and their significant risks 
regarding human rights are managed through quality procedures and periodic audits.

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Sustainability Report 2014     /
The Group’s contracting terms for procuring equipment, material, works, and services, available at 
www.iberdrola.com, and the contracts currently used for procuring fuel, include specific corporate 
social responsibility clauses based on the UN Universal Declaration of Human Rights, the treaties of the 
International Labour Organization, and the principles of the Global Compact.
Suppliers thus commit to the principles of social responsibility. During the term of the contract, the 
supplier must allow Iberdrola to review the level of compliance with the principles established in the 
contracts, and if non-compliance is detected and corrective plans are not adopted, the Company 
reserves the right to cancel the contracts. Iberdrola has not recorded through its ethics channels 
violations of this kind in its supply chain during financial year 2014.
Approximately 10.7% of general procurement and approximately 48% of fuel purchases have been made 
in countries in which Iberdrola believes there might be a risk of human rights violations. The standards 
used to identify countries at risk are the same as those described in the G4-HR4/G4-HR5/G4-HR6 
indicators of this report.
In the most recent analysis, as at the end of 2014, the breakdown of general procurement by countries 
considered to be at risk for the reasons described above would be as follows:
Countries considered to be at risk where purchases 
have been made
% of total purchases
Mexico
4.35
Brazil
3.60
China (*)
0.88
Honduras (*)
0.41
Canada (*)
0.36
Russia (*)
0.28
Kenya (*)
0.24
(*) Primarily projects and supplies of Iberdrola Ingeniería y Construcción for third parties. 
In the management of suppliers and during the procurement process, the measures adopted by the 
Company to protect such rights are based on the Procurement Policy, the Suppliers’ Code of Ethics, and the 
specific clauses of the contracting conditions attached to the orders made.
In 2014, Iberdrola also adhered to the BetterCoal initiative, which seeks to promote corporate social 
responsibility standards in the international coal supply chain and to publish transparent information in that 
regard on the operations of the main producers.

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Aspect: Human rights grievance mechanisms
Management Approach
The grievance procedures and tools that Iberdrola makes available to its stakeholders, as well as the 
management processes with respect thereto, are described in the management approach of the “Grievances 
about impacts on society” aspect of the “Society” section of this report.
G4-HR12 Human rights grievances 
Indicator G4-HR3 of this chapter sets forth incidents relating to discrimination in 2014. Iberdrola’s 
Compliance Unit has not received any claim regarding other aspects relating to human rights through the 
ethics channels established for this purpose.
Specific aspect of the Iberdrola Group
Aspect: Iberdrola and the Global Compact
Management Approach
Iberdrola has been a member of the Global Compact since 2002, undertaking to support, promote, and 
disseminate its ten principles regarding human rights, labour practices, the environment, and the fight 
against corruption, both internally and within its area of influence. During these years, the Company has 
continued to further develop the policies and practices proposed by the Compact, which it has made public 
through its annual sustainability report and its corporate website.
Since 2004, as a founding member, the Company has belonged to the Spanish Global Compact Association 
(Asociación Española del Pacto Mundial) (Asepam), now re-named the Spanish Global Compact Network 
(Red Española del Pacto Mundial) and has prepared progress reports on compliance with the principles of 
the Pact, which are publicly available on the website of the Red Española del Pacto Mundial.
During 2014, Iberdrola participated in the following actions in connection with the Global Compact:
  Submission of the Progress Report 2013 on compliance with the principles of the Compact.
  Attendance at the 2014 General Assembly of the Red Española.
  Member of the Executive Committee of the Red Española.
  Participation in Executive Committee working groups.
In 2015, Iberdrola plans to actively participate in the activities of the Red Española del Pacto Mundial in a 
manner similar to the past financial year.

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Sustainability Report 2014     /
C3. 
Society
The indicators analysed and reported on in this chapter are the following:
Aspects of the GRI-G4 Guidelines
(those indicators that require additional information per the electric utilities sector supplement are identified with (*))
Local communities (*)
Anti-corruption
Public policy
Anti-competitive practices
Compliance
Supplier assessment for impacts on society
Grievance mechanisms for impacts on Society
Specific Aspect of the GRI-G4 Electric Utilities Sector Supplement
Disaster/emergency planning and response
Specific Aspect of the Iberdrola Group
Iberdrola’s contribution to the community
The information boundaries used in this chapter are defined in indicator G4-17 of this report.

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Aspect: Local communities
Management Approach
Local communities
Iberdrola maintains a policy of strong involvement in the communities in which it operates, making 
a contribution to society that is based on the main features of its own business activities: the supply 
of an essential product, such as energy, significant investments in basic infrastructure, promotion of 
local supplier networks, creation of qualified job positions, etc., with the intention of being a long-term 
investor in the economies in which it has a presence, in order to generate sustainable economic and 
social value.
Iberdrola’s commitment to the countries in which it operates is actualised both through social actions 
in cooperation with governments, institutions, and civil society organisations, as well as through 
sponsorships and patronage. The Company is involved in the local communities where it operates, 
through action programmes aimed at the socioeconomic development of the environment, energy 
sustainability, art, culture, education, training, development cooperation, and community service.
Social actions to benefit local communities take place in various complementary ways:
  Directly by Iberdrola, through the International Institutional Relations Division, which is part of the 
Office of the Chairman Area.
  Directly by subsidiaries or affiliates (i.e. investee companies - those in which the Company has an 
equity interest) in their respective areas of activity.
  Sponsorship and patronage activities, primarily through Fundación Iberdrola in Spain, The 
ScottishPower Foundation in the United Kingdom, The Iberdrola USA Foundation in the United States of 
America, and Instituto Elektro in Brazil. 
  There are also two other organisations in the United Kingdom with a philanthropic purpose: The 
ScottishPower Energy People Trust and The ScottishPower Green Energy Trust, which carry out 
activities in their particular areas of competence. 
Stakeholder participation in the decision-making process
Within Iberdrola’s field of activity, energy planning (energy sources, technology and long-term needs) is 
carried out by governmental authorities; this is the institutional area in which the various stakeholders 
can participate in accordance with the mechanisms established in each country. Iberdrola plays an 
active role in these processes, expressing its points of view and making its knowledge and experience 
available to governments.
Once the most appropriate infrastructure is selected, the viewpoints of the affected communities are 
taken into account through consultation processes, which vary depending on the country and the type 
of facility. All these processes, which are included in the facilities’ impact assessment studies, are 
regulated and they are determining factors in order to secure the construction and operating permits 
for the power plants, and they are frequently completed with processes voluntarily performed by the 
Company.

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Thus, during the planning and development of assets, prior consultations are held and an active dialogue 
is maintained with the affected communities and interested parties in order to identify and to address 
any concerns or areas of interest. In every project, relations are established with local authorities, 
communities, and any other groups that may be relevant to the project. Information concerning the 
planned development is presented through newsletters, exhibitions, presentations, meetings, the 
Company website, etc. There are also e-mail addresses to allow local communities to communicate with 
the Company during the process and, in some cases, public information days are held for such purpose.
By way of illustration, set out below are some of the activities conducted by Iberdrola in this field:
  In the Wholesale and Retail Business, from the commencement of the Támega river hydroelectric 
project in Portugal, the activities making up a project dissemination and communication plan were 
established and implemented involving both the government and universities and other entities of 
local and regional interest; public exposure events were held, information was posted on the corporate 
website and there has even been an express request for interested parties to send in their opinion by 
mail; in the United Kingdom, communication strategies have been established for the development of 
the new Damhead Creek and Cockenzie combined cycle gas turbine plants, which include newsletters, 
exhibitions, meetings and information through the ScottishPower website.
  In the Networks Business, various actions, above and beyond the statutory obligations established in 
each country, are established for large-scale projects in order to provide information to affected social 
groups. In Spain, for example, informational meetings are held at the request of various social groups, 
at which the main features of the planned facility are described; in the United Kingdom, ScottishPower 
has a consultation forum, “The Stakeholder Liaison Group” in the Dumfries and Galloway communities 
(where a sizeable investment is currently being made to upgrade and expand the transmission 
network), which ensures an open and constructive approach for the identification and review of issues 
to be resolved in the determination of the line; in the Mid Galloway project, an extensive community 
participation programme has been developed, taking into account the possibility that vulnerable 
customers, such as elderly people, may be affected, ensuring that their services are covered during 
interruptions of supply; in the United States, where work continues on the large-scale project to upgrade 
and expand the distribution infrastructure in the state of Maine (“Maine Power Reliability Program”), 
most incidents have been successfully resolved thanks to the establishment of a conflict resolution 
process.
  In the Renewables Business, from the commencement of the award of a new project, the various 
stakeholders are informed of the progress thereof and of the benefits of the new infrastructure and its 
operation. These activities include personal visits in the United Kingdom to local residents affected by 
a project, the dissemination of a plain language and easily accessible summary describing the project, 
as well as consultations with federal environmental agencies in the United States of America and the 
implementation of their recommendations. 
  The same kind of consultation procedures are carried out in the construction of affiliated hydroelectric 
plants in Brazil, including at the Belo Monte plant, where consultations and public hearings were held 
since the inception of the project, with over 8,000 attendees; there were also 33 social participation 
workshops for community leaders and opinion-makers, several thousand social mobilisation visits, over 
500 meetings, and round-the-clock telephone communication channels.

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Management of the impacts of displacement
In the development of electricity infrastructure, there may be certain projects that involve displacing 
individuals living nearby or affecting their economic activities. In such cases, Iberdrola and the relevant 
government administrations review the economic, environmental, and social consequences of such 
projects, and jointly adopt suitable corrective measures. Iberdrola believes that such processes ensure 
the protection of general interests in the countries where these impacts occur.
G4-SO1 Local community engagement, impact assessments, and development programmes 
G4-SO2 Significant negative impacts on local communities
Assessment of impact 
Iberdrola believes that the impacts of the start-up of electric power generation plants are relevant 
with respect to this aspect. In the countries in which the Company develops these types of facilities, 
applicable laws require the performance of studies assessing the impact on the environment and the 
community, and such studies must be approved by the competent public authorities. Iberdrola believes 
that these studies are appropriate to safeguard the rights of communities, as they include the most 
significant issues for the affected areas.
These studies include an evaluation of the environment, as part of which environmental impacts 
such as emissions, effluent, waste, changes in land use, changes in landscape aesthetics quality, 
etc., are reviewed, and an evaluation of the socioeconomic environment is performed, which reviews 
demographic aspects such as changes in population in neighbouring municipalities, economic sectors 
that are present in the region, basic infrastructure such as railway and road networks and historic and 
cultural heritage, along with the growth in job demand in certain sectors, which is seen as a positive 
impact. The impacts detected at the various types of facilities developed by Iberdrola are similar at the 
various sites at which they are implemented, and none of them are noteworthy for significant negative 
impacts. Consultation with and participation of both the affected government administrations and 
interested parties are undertaken during the preparation of these studies, and part of the documentation 
of the project is subject to public review for a period of time that varies according to the law applicable 
in each country. The viewpoints of the stakeholders consulted are thus taken into account in defining the 
future project.
These studies also contemplate the preventive and corrective measures required to mitigate the impacts 
identified, and if necessary, the appropriate budgetary allocations to comply with the commitments 
assumed are included. 
To conclude the process, programmes are implemented to monitor the various aspects identified. The 
effectiveness of the programmes is reviewed by means of internal and external audits, as well as by the 
management team. For example, in the case of nuclear plants, an Environmental Radiological Monitoring 
Plan is prepared to control and monitor the impacts of the facility during the operation thereof.

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Most facilities have an integrated quality and environmental management system, the principal goal of 
which is to foster continual improvement in the results of the organisation’s activities with respect to the 
environment, in addition to compliance with environmental laws. 
Iberdrola prepares information and plans for the closure and decommissioning of facilities in accordance 
with law and informs the workers’ representatives thereof. 
Development programmes for local communities 
Iberdrola takes various types of actions to minimise, mitigate, and offset unfavourable socioeconomic 
and environmental impacts that might be caused by its facilities. Local communities benefit from 
these measures, which are usually established and agreed on with local authorities. They include: 
improvements in communication infrastructure, water supply, or roadways; public lighting; creation 
of direct and indirect employment; professional training courses; activities to support entrepreneurs; 
opening of communication processes with various stakeholders; protection of biodiversity and the 
restoration of areas; etc.
Particularly worth noting is the development of offshore wind farms, during which socioeconomic 
aspects are taken into account so as not to affect other economic activities, particularly fishing 
activities. To that end, regular meetings are held with fishermen, involving them in decision-making 
concerning safety conditions for fishing within the wind farm, as well as regarding other technical 
aspects of the construction thereof. Joint work is also carried out during the preparation of 
environmental impact assessments on fish stocks and the establishment of measures to offset such 
impact. In addition, the Company contributes financially to the development of sustainable fishing 
projects.
Similarly during the construction of affiliated hydroelectric plants in Brazil, actions to support 
municipalities are planned in accordance with the provisions of the Basic Environmental Plan (Plan 
Básico Ambiental) in different areas such as health, education, safety, tourism, etc. For example, at 
the Teles Pires plant, a Socioeconomic Monitoring Subprogramme has been carried out since 2011 in 
order to monitor those indicators that are sensitive to changes in the demand for public services and 
infrastructure as a result of the implementation of the plant; this enables the Company to assess the 
effectiveness of the mitigation actions taken and to resolve any deficiency. Social monitoring campaigns 
have also been carried out at the Belo Monte plant since 2011, covering more than 6,000 families, which 
have found significant growth in the family development index, particularly as regards the size of homes, 
access to knowledge, and work.
A more detailed description of these activities can be found in the “Indirect Economic Impacts” aspect 
of the “Economic Performance” chapter of this report, as well as in the last section of this “Iberdrola’s 
Contribution to the Community” chapter.

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EU22 People physically or economically displaced and compensation
Iberdrola is currently developing various plants in Portugal and Brazil that involve displacements of 
population: 
  In the construction of the Támega hydroelectric complex, in Portugal, it is expected that there will be 
displacement of some families and the occupation of pathways and farmland, the determination and 
quantification of which is at the stage of evaluation and approval by the Portuguese government. The 
compensation required will be provided in accordance with a Socioeconomic and Cultural Action Plan 
and the methodology implemented relating to the management and definition of displacements and 
economic damage to the affected population and in accordance with the Portuguese Expropriations Act 
and the corresponding Declaration of Public Interest.
  In Brazil, some of the new projects, both for hydroelectric development and for wind farms, may cause 
population displacements or interfere with their economic activities. This social and environmental 
impact is assessed during the preparation of the environmental impact assessments, and compensation 
measures are proposed, which are then presented to the interested parties and negotiated with them.
The Teles Pires hydroelectric plant currently under construction is carrying out a Basic Environmental 
Plan that provides for the relocation of the affected population and indemnification alternatives 
by means of financial compensation or resettlement. During financial year 2014, one family was 
compensated for displacement and 125 properties affected by the creation of the reservoir were 
compensated on an amicable basis. Cases that were not amicable or where there was insufficient 
documentation went to trial and the respective compensation was deposited with the courts. Impact 
mitigation activities from prior years continue to be carried out, such as specific programmes to 
rehabilitate and develop local economic activities, the promotion of tourism around the reservoir, and 
programmes to monitor fishing and mining activities.
Similarly, in the case of the Belo Monte plant, the socioeconomic compensation contemplated in the 
respective studies and in the Assistance Plan for the Affected Population (Plan de Ayuda a la Población 
Afectada) is being implemented.  Approximately 3,600 families were relocated between urban and rural 
areas in 2014, and plans are in place for the relocation of approximately 2,000 more families. Family and 
neighbourhood ties are respected in the relocation process, and the option of a related move (mudanza 
vinculada) is made available. Vulnerable families are offered social and psychological assistance and 
training for employment. The new neighbourhoods are being provided with social health, education, 
leisure, and social service equipment to serve the population. As regards commercial activities, 327 
businesses were compensated in 2014, and over 1,500 persons received training.
In the case of the Baixo Iguaçu plant, 26 persons whose agricultural production land was affected by the 
construction of the plant received economic compensation or were relocated to new production areas, 
and approximately 500 more families are expected to be compensated or relocated over the next two 
years. In order to gradually provide the most appropriate solutions for each case, there is a commission 
formed by the affected municipalities, rural syndicates, the affected parties, and the company.

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In the development of the Calango 6 wind farm, plans are in place for the relocation and compensation 
of five families whose houses will be affected, and agreements have already been reached with four of 
them.
Aspect: Anti-corruption 
Management Approach
The Group’s firm commitment to fight corruption, and to establish mechanisms to ensure the existence 
of a culture for preventing irregularities is reflected in, among other things, the Group’s Code of Ethics 
and in the Crime Prevention and Anti-Fraud Policy, both of which were approved by the Board of 
Directors. 
Within the framework of the compliance system, various programmes are implemented to encourage 
the organisation to act in accordance with the most stringent ethical standards and in accordance with 
applicable laws and regulations. These programmes, promoted by the Compliance Unit, in the exercise 
of the powers assigned to it in its Regulations, are included in the Crime Prevention Programme and the 
Global Action Framework for Compliance with the Code of Ethics in the Group.
In order to develop the Crime Prevention and Anti-Fraud Policy, the Company, through the Compliance 
Unit and other appropriate bodies, has implemented a specific and effective programme for preventing 
the commission of crimes (a set of measures focused on the prevention, detection, and reaction against 
possible crimes), which will also extend to the prevention and control of other frauds, administrative 
infractions, and serious irregularities, all within the framework of the process of review and adjustment 
to the new duties imposed by the Spanish Penal Code, following its amendment by Organic Law 5/2010 
of 22 June, without prejudice to the laws and regulations applicable in any other jurisdiction in which the 
Company does business.
In addition to the foregoing, the Compliance Unit promotes the development and maintenance of a 
global action framework for compliance with the Code of Ethics, the main goal of which is to foster 
a culture of corporate ethics and transparency, disseminating the principle of “zero tolerance” with 
respect to fraud and promoting mechanisms and actions to prevent corruption and fraud.
This Action Framework is part of the Compliance System, is articulated on the same basis, and contains 
the same elements as those set forth in Iberdrola’s Protocol against Corruption and for the Prevention 
and Correction of Illegal or Fraudulent Conduct, which was approved by the Compliance Unit in financial 
year 2013.

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The Code of Ethics is the “cornerstone” on which the Action Framework is developed and constantly 
acts as an “inspiring” element for the other elements thereof, which are reflected in the following chart:
1
Risk 
assessment
2
Policies and 
protocols
3
Communication
4
Training
5
Monitoring
6
Response and 
remediation 
plan
Code of 
Ethics
These elements include: i) the regular assessment of risks, ii) the development and maintenance of 
rules and guidelines on activities of the professionals of the Group regarding expected, appropriate, and 
proper conduct, iii) the preparation of communication, dissemination, and training plans for employees 
and third parties with which we have relationships, and iv) control and detection mechanisms, as well as 
mechanisms for responding to situations that deviate from tolerable conduct guidelines.
All activities conducted in the Group within this framework are monitored by the Unit on a quarterly basis 
through the “Global Compliance Scorecard” in which each country subholding company and/or head of 
business company of the Group reports to the Unit each quarter on a number of monitoring indicators 
established with respect to the main items that make up the compliance programme of the respective 
companies.
G4-SO3 Business units assessed for risks related to corruption
One of the main elements of the Iberdrola Group’s Global Action Framework for compliance with the 
Code of Ethics is the performance of periodic and continuous risk assessments. Therefore, based on the 
nature of the businesses, processes and countries in which the Group operates, it identifies and reviews 
areas that could potentially entail a departure from the rules of conduct established in the Code of 
Ethics, or factors that could be exposed to irregular acts or to situations of corruption or fraud.

Part ii. Specific standard disclosures   /   205
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Within this context, the Compliance Unit has drawn up global guidelines for the assessment of risks 
of fraud and corruption within the Group which, translated into the three main languages, have been 
used as a methodological benchmark in the evaluation process across the Group. The evaluation is 
performed by the Unit and by the Group’s compliance divisions within their respective companies and 
areas of activity and in accordance with their specific object and business. Professionals representing 
the corporate and business areas in which the Group operates, who hold key positions within the 
organisation and who have experience in and knowledge of business processes, were involved in the 
conduct of the surveys.
This evaluation is used as a starting point to determine the most effective prevention and control 
measures and to allow for the appropriate allocation of resources and efforts to those areas or factors 
identified as potentially at risk. Accordingly, the aforementioned risk assessment constitutes a tool 
upon which various are based and which are included within the other elements of the Global Action 
Framework for compliance with the Code of Ethics.
Review of the provision of general supplies in countries presenting a risk of corruption
Purchases by Iberdrola in countries presenting a risk of corruption were reviewed following the 
publication of Transparency International’s Corruption Perception Index (TI CPI 2014); the results are 
shown in the table below:
Corruption risk
% of purchases in countries on the CPI 
Index 2014
Low
88.9
Medium
0.2
High
10.9
The countries with a high risk of corruption in which purchases were made from local suppliers are 
mainly Mexico and Brazil.
Iberdrola has not made any purchase of general supplies in countries sanctioned by OFAC (Office of 
Foreign Assets Control).
In supplier management and during the procurement process, the measures adopted by the Company to 
protect against this risk are based either on the Procurement Policy or the Supplier’s Code of Ethics and 
on the specific clauses included in the contract terms attached to the orders issued.
G4-SO4 Training and communication on anti-corruption policies and procedures
The development of effective communication and training plans is one of the key elements of Iberdrola’s 
Compliance System to achieve its main goal, which is to promote a culture of corporate ethics and 
transparency and to prevent irregular or fraudulent conduct.

206   /   Part ii. Specific standard disclosures 
/   Sustainability Report 2014 
Within this context, the Company has several tools and procedures to promote staff training and raise 
awareness on anti-corruption issues. Of particular note are the corporate policies approved by the Board 
of Directors and communicated to the employees, as well as the Code of Ethics, which is delivered 
to newly-hired employees upon the signing of their contract, all of which are available on both the 
corporate website and the Group’s intranet.
Along these lines, the principal powers of the Compliance Unit include those of promoting the 
preparation and implementation of appropriate training programmes, both in-person and online or by 
any other appropriate method, for the professionals of the Group regarding the duties imposed by the 
Code of Ethics and the Crime Prevention and Anti-Fraud Policy.
Thus, the annual activity plans of the Compliance Unit and Divisions, through which the Global 
Action Framework for compliance with the Code of Ethics materialises, include specific training and 
dissemination plans.
In late 2013, in coordination with the country subholding companies and head of business companies, 
the Unit developed and disseminated an online course regarding the text of the Code of Ethics and the 
Crime Prevention and Anti-Fraud Policy. This course, which is permanently available in three languages 
(English, Portuguese and Spanish) to all employees through the Group’s Global e-Learning Platform, is 
mainly intended to promote ethical values and the principle of “zero tolerance” towards the commission 
of unlawful acts and situations of corruption and fraud among professionals. 
During financial year 2014, the Group continued to carry out various training and communication 
activities, with both global and local impact, the main purpose of which is to foster a culture of integrity, 
transparency, and ethics across the organisation. These include: specific training in the Code of Ethics 
as part of the onsite training given at the Group’s training centres, specific training of certain groups of 
professionals such as those of the Procurement Division, and training and dissemination activities for 
the management group on its key role in the development of a culture of integrity in the organisation.
Finally, the various companies of the Group have also undertaken different training and communication 
activities related to the specific compliance programmes that they develop and maintain under the law 
applicable in each country.
G4-SO5 Incidents of corruption
The Compliance Unit has no evidence of any court decisions relating to cases of corruption during the 
reporting period. There were also no incidents resulting in the cancellation of orders or of contracts with 
Group suppliers.
During the financial year, proceedings by the World Bank continued with respect to the stake of one 
of the Company’s subsidiaries (Iberdrola Engineering and Construction) in projects in Albania during 
2003 and 2004. These proceedings are at the point of conclusion by means of a settlement with this 
institution.

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Sustainability Report 2014     /
The criminal proceedings pending in Latvia for actions relating to a former employee of this Company 
ended by means of an injunction from the prosecutor and thus with no judicial ruling, with a former 
employee of Iberdrola Engineering and Construction acknowledging his sole liability for the events 
under investigation; Iberdrola Engineering and Construction, for its part, acknowledged that the criminal 
conduct of the former employee, categorised as influence peddling, may have provided it with a benefit 
to the extent that it was awarded a particular project, although the ex-employee acted without its 
knowledge.
Aspect: Public policy
Management Approach
Iberdrola has two kinds of relationships with regulatory entities:
  Relationships geared to the enactment of efficient regulatory provisions allowing for the development 
of a competitive market in activities that are not subject to a natural monopoly, and sufficient 
remuneration for regulated businesses. To that end, there is a continuous and constructive dialogue 
where information, knowledge, and opinions are exchanged. Iberdrola is thus acquainted with the 
concerns and proposals of regulatory entities and provides them with its own opinions in the legitimate 
defence of its interests and those of its shareholders, customers, and users. It also actively participates 
both in “public hearings” held by regulatory entities in order to ascertain the opinions of the players 
involved in the processes prior to the revision of regulations or the determination of domestic energy 
policies, and in the official processes of enactment of the laws and regulations and the monitoring of the 
application thereof.
As a general rule, Iberdrola works for the approval of and respect for the principles of good regulation: 
proportionality, effectiveness and efficiency, responsibility and independence, consistency, and 
credibility, and, finally, transparency and clarity. As regards specific matters of energy regulation, it 
champions, among other things:
  Adequate rates for regulated activities. 
  Full liberalisation of activities involving generation and end supply, including the elimination of 
comprehensive rates.
  Introduction of measures to protect vulnerable customers. 
  Internalisation of all costs, including environmental costs.
  Promotion of renewable energy and energy efficiency, in a manner consistent with market principles.
  Ensuring the security of supply.
  Creation of a single European market.
  A CO2 price that provides a signal incentivising investment in both low-emission generation and in 
energy efficiency measures, which will allow for progress in the decarbonisation of the European 
economy.
  Provision of all information required by regulatory entities, whether in connection with the normal 
conduct of its business or as a result of any transitory issue.

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/   Sustainability Report 2014 
In addition to its direct relationships with regulatory entities, Iberdrola and the companies in its Group 
participate in the regulatory process through the domestic and international trade associations of which 
they are members. 
As regards lobbying activities, Iberdrola is registered with the Transparency Register, created by 
European institutions to give adequate transparency to the relations of such institutions with companies, 
NGOs, citizens’ associations, think tanks, etc. The register was created by the European Parliament and 
the European Commission, and the Council of the European Union supports the initiative. Iberdrola’s 
record in such register can be found at http://ec.europa.eu/transparencyregister/public/consultation/
displaylobbyist.do?id=41816938101-07.
In its activities to influence public policies, Iberdrola USA has made the financial contributions shown in 
the US register http://soprweb.senate.gov/index.cfm?event=selectfields.
G4-SO6 Contributions to political parties or to related institutions
Iberdrola has a neutral position from a political standpoint. In financial year 2014, none of the Group’s 
companies, except in the United Kingdom and the United States of America, contributed to the financing 
of political parties or organisations controlled by them.
Contributions to political parties (€)
2014
2013
Expanded boundary
United Kingdom
26,032
23,554
United States
131,327
28,057
      National level 
75,566
6,779
      State level 
55,761
21,278
Other countries
0
0
Total
157,358
51,611
In the United Kingdom, ScottishPower contributed a total of 26,032 euros, distributed among various 
parties across the political spectrum in the United Kingdom, to sponsor lectures and events, pursuant 
to the Political Parties, Elections and Referendums Act (2000). These occasions are an important 
opportunity for the Group to present its viewpoints to the entire political spectrum on a non-partisan 
basis. The contribution does not involve the support of any particular party.
In the United States of America, Iberdrola USA and its subsidiaries CMP, NYSEG, and RG&E made 
contributions to candidates and political parties in the total amount of 97,717 euros, and reported 
such contributions in accordance with applicable laws. Similarly, the Renewables Business made

Part ii. Specific standard disclosures   /   209
Sustainability Report 2014     /
contributions totalling 33,610 euros. In both cases, the contributions are those of the Company and do 
not include additional voluntary contributions made by employees. 
Aspect: Anti-competitive practices 
Management Approach
Pursuant to the Code of Ethics, the Group undertakes to compete fairly in the market and not to engage 
in advertising that is misleading or denigrates its competitors or third parties. Furthermore the Group 
undertakes to obtain information lawfully, to promote free competition for the benefit of consumers and 
users, and to promote transparency and free market rules, as provided in the Group’s General Corporate 
Social Responsibility Policy. 
In the practical application of applicable law, the complexity thereof might give rise to interpretations 
that are not shared by other market players or by the regulatory authority itself, giving rise to situations 
such as those described in G4-SO7 requiring the intervention of the competent courts.
G4-SO7 Legal actions for anti-competitive behaviour, anti-trust, and monopoly practices 
In March 2007, the National Competition Commission (Comisión Nacional de la Competencia) (CNC) 
issued a resolution imposing a fine of 38,710,349 euros against Iberdrola Generación, S.A.U. for the 
alleged offence of abuse of dominant position stemming from the operation under the technical 
restriction system of group 3 of the Castellón Power Plant and of groups 4 and 5 at Escombreras. A 
contentious-administrative appeal against this resolution was lodged with the National High Court 
(Audiencia Nacional). An appeal in cassation (recurso de casación) was filed against the rejection of the 
appeal by the National High Court, which was also rejected. The appeal in cassation filed against this 
rejection was declined by the Constitutional Court. Iberdrola Generación, S.A.U. filed an appeal with 
the European Court of Human Rights on 4 April 2013, but Company was not notified of any decision in 
connection with such appeal in 2014. 
A decision was handed down in 2009 in the disciplinary proceedings commenced in 2007 by the National 
Competition Commission against Iberdrola Distribución Eléctrica, S.A.U., as a result of a complaint filed 
by the retail energy supply company Céntrica Energía, S.A. (concurrently with the complaint filed by such 
company against the other distributors belonging to vertically integrated groups) for an alleged abuse of 
dominant position in connection with widespread access to its points-of-supply database. The decision, 
imposing a 15,000,000 euro penalty, was challenged before the National High Court, which dismissed the 
contentious-administrative appeal that was filed. A constitutional application for relief was filed against 
such decision with the Supreme Court on 18 June 2012, which has been opposed by the government and 
Céntrica Energía, S.L.U., with the actions pending instruction for voting and decision.
In 2010, Céntrica Energía, S.L. filed a claim with the Mercantile Court No 1, in Bilbao, claiming 11,900,000 
euros in purported damages, precisely on the basis of the aforementioned penalty imposed by the CNC

210   /   Part ii. Specific standard disclosures 
/   Sustainability Report 2014 
for alleged abuse of dominant position for having failed to allow widespread access to the points-of-
supply database. Iberdrola Distribución Eléctrica, S.A.U. filed a defence opposing this claim, basically 
on the grounds that the case was time-barred and, in any event, because it had strictly complied 
with applicable laws and regulations governing the industry and with the standards established by 
the National Energy Commission (Comisión Nacional de Energía) (CNE) on this matter since 2002. 
Judgment was rendered for Iberdrola Distribución Eléctrica, S.A.U. on 16 July 2010, holding that the 
action was time-barred. This judgment was appealed by the opposing party to the Provincial Court of 
Biscay (Audiencia Provincial de Vizcaya), and a new judgment confirming the previous judgment was 
handed down on 27 July 2011, also holding that the action is time-barred. However, Céntrica Energía 
has filed a constitutional application for relief with the Civil Chamber of the Supreme Court that issued 
the Judgment of 4 September 2013 approving the appeal, rejecting the finding that the action was time-
barred, and providing for a return of the proceedings to the Provincial Court of Biscay for a resolution 
on the merits. As a result of the foregoing, the Provincial Criminal and Administrative Court rendered 
Judgment on 28 March 2014 dismissing the complaint filed by Céntrica Energía, S.L. in its entirety 
and deciding on the merits of the case, holding, among other things, that the causal link between the 
conduct followed by the distribution company and the damages claimed has not been established. On 
21 May 2014, Céntrica filed a post-judgment motion for cassation against the aforementioned Judgment 
with the Third Division of the Supreme Court.
On 5 and 6 November 2009, the Investigation Directorate of the National Competition Commission 
carried out an inspection of the headquarters of Unesa because a confidential case had been opened to 
investigate purported restrictive practices (concerted action) of the companies associated within Unesa. 
Unesa challenged the order of the CNC authorising the inspection, and on 22 December 2014 Unesa 
was notified of the decision of the Supreme Court dated 10 December 2014 nullifying the CNC’s Order of 
Inspection and declaring the evidence obtained from such inspection to be invalid.
Furthermore, on 24 June 2009 the National Competition Commission commenced disciplinary 
proceedings under number S/0159/09, against a number of electricity distribution companies (including 
Iberdrola Distribución Eléctrica, S.A.U.) for conduct consisting of preventing, restricting, or distorting 
competition in the domestic electricity supply market. As a result of the inspection mentioned in the 
preceding paragraph, Unesa was charged in the disciplinary proceedings. In addition, on 30 April 2010, 
the Investigation Division of the National Competition Commission resolved to extend the scope of 
the proceedings to Iberdrola, S.A., among others, for the existence of a strategy of coordination in 
the electricity industry calculated, among other things, to obstruct a change in retail electricity supply 
company.
On 13 March 2011, the Company was notified of the decision in this case, which imposed a penalty of 
21,612,000 euros against Iberdrola, S.A. This decision was appealed to the contentious-administrative 
courts and the appeal is suspended due to a potential bis in idem (re-trial for the same offence) regarding 
the penalties also imposed on the distributors on such grounds. Upon learning of the 10 December 
2014 decision of the Supreme Court referred to above, Iberdrola, S.A. submitted this appeal, requesting 
approval thereof and a declaration of the invalidity of the sanction order due to a lack of evidence.
In 2013, there was a continuation of the proceeding provided for in article 88(2) of the EC Treaty by 
the European Commission against Spain (State Aid C3/2007) in connection with the possibility of the 
regulated electricity tariff system being considered as state aid, which is forbidden under the Treaty, the

Part ii. Specific standard disclosures   /   211
Sustainability Report 2014     /
beneficiaries of which would be end consumer companies, on the one hand, and electricity distribution 
companies, on the other hand. In these proceedings, which were commenced following a complaint 
filed by Céntrica, P.L.C. and Céntrica Energía, S.L., written comments of both Unesa and Iberdrola 
Distribución Eléctrica, S.A.U. were filed, with the defence focusing on the absolutely regulated nature 
of electricity distribution in Spain and the absence of any advantage for distributors, compared with 
liberalised retail electricity supply companies, and considering, in short, that there was no forbidden 
state aid in favour of the former. In this case, which is limited to financial year 2005, a favourable 
outcome is expected with a declaration that there is no unlawful assistance as regards electricity 
distribution companies.
In addition to the complaints filed with the EC, Céntrica has also filed various appeals applying for the 
annulment of national tariff provisions recognising deficits in regulated activities, to the extent that no 
similar deficits are recognised for retail supply activities. Both the Supreme Court and the National High 
Court have resolved to postpone the dates for voting and rendering a decision on such appeals until the 
issuance of a European Commission resolution putting an end to the proceedings concerning State Aid 
C 3/2007, commenced as a result of Céntrica’s complaint.
On 24 February 2012, the Company was served notice of the disciplinary resolution under file S/0213/10 
of the National Competition Commission, which imposes on Iberdrola, S.A., Iberdrola Generación, 
S.A.U., and Iberdrola Comercialización de Último Recurso, S.A.U., jointly and severally, a penalty of 
10,685,000 euros for the serious infringement of distortion of competition through unfair acts consisting 
of the transfer of contracts from the last-resort retail supplier to the liberalised retail supplier, without 
securing the express consent of the consumer required under industry regulations. In December 2013, 
notice was provided of the decision dismissing the contentious-administrative complaint filed by the 
three companies against the penalty. An appeal against the dismissal was filed on 26 December, and the 
Company did not receive notice of any judgment deciding on the motion for cassation in 2014.
No cases related to monopoly practices or anti-competitive behaviour have been recorded at the other 
companies of the Iberdrola Group.

212   /   Part ii. Specific standard disclosures 
/   Sustainability Report 2014 
Aspect: Compliance
G4-SO8 Significant fines and non-monetary sanctions
Pursuant to the technical protocol for this indicator, this includes the fines and sanctions received 
in addition to those set forth in indicators G4-EN29 and G4-PR9, with the amounts indicated in the 
following table:
Significant fines and non-monetary 
sanctions40
2014
2013
Fines imposed (€)
17,022,140
15,345,304
Non-monetary sanctions (no.)
8
12
Cases being resolved through arbitration 
or similar mechanisms (no.)
1
1,724
Of the total amount, fines have been imposed in Spain in the amount of 14,992,125 euros, the most 
significant of which correspond to affiliated (minority-owned) nuclear plants, 13,436,163 euros for 
an alleged reduction in production capacity, for failure to comply with the Quality Assurance Manual 
(Manual de garantía de calidad) and the Single Transitory Provision of Law 24/1964 of 29 April on Nuclear 
Energy, and for the loss of traceability in the control of radioactive sources in disuse.
In Brazil, fines were imposed in the amount of 2,005,099 euros, with the most significant being 1,876,538 
euros corresponding to Elektro for tax fines.
A fine of 24,916 euros was received in in the United Kingdom, mainly for failing to achieve the 
established targets in infrastructure works.
There were no fines during financial year 2014 in the other countries in which the Company operates. 
Eight non-monetary sanctions were also received relating to labour and administrative matters, and are 
not considered by the Company to be significant.
Aspect: Supplier assessments for impacts on society
Management Approach  
G4-SO9 Suppliers that were screened using criteria for impacts on society 
G4-SO10 Impacts on society in the supply chain
The management approach regarding the Iberdrola Group’s supply practices is described in the “G4-12 
Description of supply chain” indicator of this report.
40  Includes fines, sanctions, and arbitrations corresponding to the expanded boundary of the report, except for those relating to 
labour matters, which are within the basic boundary, as no corresponding supplementary information is available.

Part ii. Specific standard disclosures   /   213
Sustainability Report 2014     /
New suppliers are evaluated according to such management approach and their significant risks 
regarding their impacts on society are managed through quality procedures and periodic audits.
Transparency in the general procurement process
In applying the Company’s policies, the Procurement Division, within its area of responsibility, 
encourages equality of opportunity, applying standards of objectivity and impartiality in supplier 
relations, promoting publicity of and participation in selection processes, within management efficiency 
criteria.
The procurement process is periodically audited both internally and by external entities, with no “non-
conformities” during the financial year. Recommendations and opportunities for improvement that arise 
during these reviews are analysed and put into place in order to maintain continuous improvement in the 
processes.
Dialogue with suppliers 
The Procurement Division periodically surveys the suppliers of the Iberdrola Group in all countries in 
which these processes are carried out. In the 2014 edition, the survey was sent to a representative group 
of suppliers of the Group: 2,516 suppliers; the participation percentage was 49.6%. An overall rating from 
such survey is set forth in the following table:
Supplier satisfaction survey
4th Edition
3rd Edition
2nd Edition
1st Edition
Rating (out of 10)
8.00
7.74
7.57
7.56
Main initiatives with suppliers of materials, equipment, works, and services during 2014
Iberdrola has a CSR Scoring model to evaluate its suppliers with respect to social responsibility, 
quantifying their relative position based on the suppliers’ management in terms of social responsibility, 
so that there is a standard to differentiate them in tenders or contracting. In 2014, the Procurement 
Division extended the CSR Scoring to all geographic areas (previously, the model was only available for 
suppliers in Spain), with the following result:

214   /   Part ii. Specific standard disclosures 
/   Sustainability Report 2014 
Supplier CSR Scoring Model41
Classification levels
2014
%
2013
%
A+
360
27
324
27
A
757
57
710
59
B
209
16
168
14
Basic boundary
1,326
100
1,202
100
Of the suppliers studied, 323 (as opposed to 312 in 2013) adhere to various international corporate social 
responsibility initiatives or follow codes of good practices for their industry.
During the financial year, there were 77 social audits of suppliers with an order during the year. Suppliers 
with “non-conformities” in the process had a certain period to rectify the deficiencies found.
During 2014, the contracting volume at Special Employment Centres (in order to assist and work with 
persons with disabilities) totalled 3.1 million euros.
More than 220 letters were sent to suppliers in 2014 urging them to obtain certification in the quality, 
environmental, and occupational risk prevention areas.
Iberdrola USA has a Supplier Diversity Program that gives priority to supplies managed by minorities 
(companies owned by women or veterans, businesses located in run-down areas, businesses owned by 
marginalised persons, etc.). In 2014, additional emphasis was placed on this line of work with the main 
suppliers to apply the program in the subcontracting chain. 
In May 2014, Elektro held the tenth annual Supplier Awards, an event that has already become a tradition 
and a benchmark in the Brazilian electricity industry, and the purpose of which is to improve cooperation 
among the parties, disseminate best practices, and enhance competitiveness. More than 200 of the 
subsidiary’s suppliers participated in this edition. Elektro also developed the Small Supplier Development 
Programme, designed to develop new qualifications and skills at small supplier companies to boost their 
potential and capabilities.
Further information on Iberdrola’s relations with and management of its suppliers can be found on the 
corporate website, in the Periodic Report on Procurement and Supplier Management, a new initiative 
that was part of the Group’s Corporate Social Responsibility Plan 2013-2014 in the supply chain 
management area.
41  Suppliers with an order during the year. A+: above average suppliers, A: average suppliers, and B: below average suppliers.

Part ii. Specific standard disclosures   /   215
Sustainability Report 2014     /
Aspect: Grievance mechanisms for impacts on society 
Management Approach
The development of plans for the Company’s relationships with its stakeholders and the maintenance of 
fluid channels of communication are significant goals, to which Iberdrola dedicates numerous resources, 
as described in more detail in sections G4-18 through G4-27 of this report.
Attention to claims that might arise from various social players that might be affected by the Company’s 
activities is a part of the relationship plans developed with stakeholders, which is managed as described 
below:
  The “Companies of the Group” and “Content” sections of the home page of www.iberdrola.com 
provide an orderly system of navigation to arrive at the different methods of contact that the various 
companies of the Group maintain in the countries in which they operate, the companies in question 
being directly responsible for the service and management thereof. In the case of the parent company 
Iberdrola, various channels are identified, both postal as well as telephonic and electronic, that provide 
multiple ways of contacting the Company, managed directly by the organisations responsible for 
maintaining such contact methods.
  The Company’s stakeholders have channels described in the preceding paragraph to send their 
complaints regarding business activities with a specific impact on the environment, labour relations, 
human rights, local communities, competition, or market power, and such complaints will be attended to 
following established internal procedures.
  There are various specific mechanisms for dealing with unethical behaviour or behaviour that might 
lead to situations of fraud or corruption in any form: the Ethics Mailbox, the Shareholders’ Ethics 
Mailbox, and the Channel of Communication with the Audit and Risk Supervision Committee, through 
which employees and shareholders can make accusations or complaints with the assurances of 
resolution and confidentiality that such channels require to be effective.
G4-SO11 Grievances about impacts on society
The Compliance Unit is not aware of any court decisions regarding social impacts in the anti-corruption 
area.

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Electric Utilities Sector Specific Aspect 
Aspect: Disaster/emergency planning and response
Management Approach
As in any industrial activity, situations of risk to the facilities or the public at large may occur at power 
generation plants and in electricity grids, either because of an accident or due to loss of electricity 
supply.
Where this occurs, the subsidiaries of the Iberdrola Group and the companies in which the Company 
has an interest have put mechanisms, procedures, and plans in place in order to try to minimise the 
consequences. Such measures include preventive measures that have been jointly established with 
local authorities, as well as training both for its own and subcontracted staff and ongoing education, and 
regular safety drills with in situ audits.
The Wholesale and Retail Business has various documented emergency management procedures in 
place at its facilities, which include an Emergency Response Organisation (Organización de respuesta 
ante emergencias) (ORE) procedure, which involves personnel of all levels and is put into operation in 
the event of emergencies that jeopardise the assets of the Company or its employees. In the United 
Kingdom, there is also a Business Continuity Management System for the management and minimisation 
of emergency situations, which is certified to the ISO 22301 standard and externally audited.
For its part, nuclear power plants have specific emergency plans in order to ensure that emergency 
systems are operational and to guarantee the safety of employees and the public, which include both an 
External Emergency Plan (Plan de emergencia exterior) (PEN), for which the governmental authorities 
are responsible, and an Internal Emergency Plan (Plan de emergencia interior) (PEI), compliance with 
which is the responsibility of the companies that own the power plant. The PEI is known by the public 
authorities and municipalities of the region, which participate in its adoption, and verify its effectiveness 
through annual emergency drills supervised by the Nuclear Safety Council (Consejo de Seguridad 
Nuclear) (CSN). It also has a Basic Nuclear Emergency Plan (Plan básico de emergencia nuclear) 
(PLABEN), which provides an interface as an instrument for coordination between both plans. 
Another example of emergency management is the cooperation of the Company with the authorities 
responsible for the operation of the national electricity grids and of connections with other countries 
in order to deal with the possibility of a global supply failure. System operators are responsible for 
guaranteeing the reliable and safe operation thereof and for restoring service following severe incidents 
in a controlled manner and within the shortest possible time. To that end, they draw up detailed plans 
and procedures that determine the responsibilities and guidelines for action by geographic areas. 
Concurrently therewith, the Company conducts tests at its facilities to ensure that the main generation 
centres can resume production in the event of a power grid failure.

Part ii. Specific standard disclosures   /   217
Sustainability Report 2014     /
The Networks Business also has various management plans and procedures to deal with these 
situations, such as the Electric Emergency Plan of Iberdrola USA’s subsidiary NYSEG or the Operations 
Centre Emergency Plan of Elektro in Brazil. Worth noting is ScottishPower’s active communication 
with vulnerable groups during power outages to ensure that they are properly cared for and to provide 
any assistance that may be required. The company has its own generator fleet, as well as a portfolio of 
suppliers to support consumers during long-lasting emergencies if necessary.
The following activities to restore electric service during 2014 were especially significant as regards 
meteorological phenomena and their effect on Iberdrola’s networks:
  In the United Kingdom, in February, ScottishPower experienced one of the worst storms to have ever 
affected the company’s operational area. As a result, over a period of 24 hours there were 469 incidents 
in high-voltage lines and 189,226 customers were affected by interruptions in supply. Despite the 
difficulties posed by strong winds, ScottishPower was able to restore service to 94% of those affected 
within the first 36 hours.
  In the United States, 219,000 customers of the CMP, NYSEG and RGE subsidiaries lost power on 
Thanksgiving. With the support of 1,000 professionals, service to most customers was restored within 
less than 72 hours. 
Specific Aspect of the Iberdrola Group
Aspect: Iberdrola’s contribution to the community
Social actions, in cooperation with governmental and civil society organisations, constitute a significant 
part of Iberdrola’s commitment to the community. Detailed information on such actions can be obtained 
both from the published reports and from the corporate websites of Iberdrola’s subsidiaries and affiliates 
in Spain, United Kingdom, the United States of America, and Latin America.
Rural electrification programmes in Brazil are also particularly worthy of note. The Brazilian companies 
of the Group and their affiliates have continued to develop such programmes, undertaken jointly with 
government entities, with the goal of extending the electricity infrastructures to the entire population 
of the country in order to facilitate economic and social development, minimising inequalities among 
the various regions and between rural and urban areas. These programmes represent a fundamental 
component for development of the most disadvantaged sectors of Brazil’s population.
1. - Dedicated resources
Iberdrola has selected the London Benchmarking Group (LBG) model to measure and assess business 
contributions to the community due to its wide international recognition. It is regarded as the most 
highly-valued standard for measuring the results and impacts of social programmes, both for the 
company and for the community.

218   /   Part ii. Specific standard disclosures 
/   Sustainability Report 2014 
A detailed description of the LBG model can be found at the www.lbg.es.
Iberdrola has used the LBG model to report its contributions to society in this Sustainability Report 2014.
Contribution to the community 2014
(€ thousands)
By category
Charitable gifts
Community investment
Socioeconomic development of the community
Energy sustainability
Art and culture
Education and training
Cooperation and community service
Commercial initiatives in the community
Management costs   
1,551
26,076
3,732
2,624
By type of contribution
Cash contributions
Staff time
In-kind contributions
Management costs
30,767
388
203
2,625
Expanded boundary
33,983

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Sustainability Report 2014     /
Iberdrola’s contribution by region (Expanded boundary)
Spain
39 %
United 
Kingdom 
25 %
Mexico and 
Brazil
29 %
United States of 
America
7 %
Iberdrola’s contribution by programme (Expanded boundary)
Socioeconomic 
development
20 %
Art and Culture
26 %
Education and 
Training 
16 %
Cooperation 
and Community  
Service 
21 %
Energy 
Sustainability 
7 %
Other 
10 %
In addition, the aggregate funds allocated to rural electrification programmes in Brazil represented a 
total of 31 million euros on a consolidated basis for the Group.

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Electrification programmes 2014
(€ thousands)
Elektro, Coelba, Celpe, and Cosern
31,116
2.- Outputs and impacts
Benefits for society
Iberdrola has been measuring the results achieved by its community support programmes using various 
parameters. Fundación Iberdrola is applying the specific LBG methodology to measure outputs and 
impacts for the various programmes for which it is responsible, and expects to continue extending the 
application of this methodology to all of its higher community impact programmes. 
The first to use it was the Atlantic Romanesque Restoration Project; the application of this methodology 
to a significant art and heritage project is new in Spain. The results have been measured from its start 
date, in September 2010, through financial year 2014.
The total investment of the Foundation in the programme has reached 987,500 euros, with an additional 
multiplier effect of 1,828,417 euros. The programme brings the obvious benefits of improving the 
condition of the historic and artistic buildings and increased promotion and awareness of these 
buildings among the general population. Concerning output measurements, the following figures can be 
put forward: 8,406 direct beneficiaries and 48,801 indirect ones, considering as beneficiaries the citizens 
of the rural municipalities where the restoration work has been carried out. One should also take into 
account 38 beneficiary organisations that have been supported in various manners: training for their 
staff, energy savings due to energy efficiency and maintenance, etc. Of particular note in this regard is 
the significant benefit obtained by the application of advanced technologies to the temple monitoring 
systems, as well as the use of LED technologies for lighting. This technological innovation has so far 
achieved a 70%-reduction in total installed capacity at the restored temples, and thus a reduction of 
more than 4,000 kg of CO2 emissions into the atmosphere. The socioeconomic impact in the region 
through job creation in the area and strengthening commercial activity is also worth mentioning. Detailed 
information on the project is available at www.romanicoatlantico.org and www.fundacioniberdrola.org.
Another initiative using the LBG methodology to measure outputs and impacts is the Social Assistance 
Programme announced for the 2014-2015 period. There are many types of beneficiaries: disabled 
persons, unemployed adults, immigrants, youth at risk of social exclusion, long-term unemployed, 
etc. A total of 45 social projects have been approved for this financial year, managed by non-profit 
organisations, with a total investment of 845,348 euros. There are a total of 15,664 direct beneficiaries, 
and 62,656 indirect beneficiaries, such as relatives.

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Benefits for the company
Iberdrola believes that the main benefits that it obtains from its commitment to society are:
  Building and reinforcing relationships of trust with communities, through the support of social 
organisations and national, regional, and local governments.
  Achieving higher brand recognition and improving its corporate reputation.
  Improving employee satisfaction, by belonging to a socially valued and recognised Company.
3.- Corporate volunteering programme
In 2014, the Iberdrola Group offered its workforce a total of 6,100 volunteering opportunities within 
the framework of its Corporate Volunteering Programme, either through activities proposed and 
organised by Iberdrola itself or in cooperation with leading organisations. The activities promoted by the 
Group alone benefited more than 493,000 persons directly or indirectly. Among the initiatives offered, 
approximately 42% were designed to help communities, some of which consisted of fundraising; 25% 
were designed to support underprivileged groups through recreational activities, teaching, or support; 
community services accounted for 22% of the activities, while the remaining 11% were addressed to the 
protection and improvement of the environment.
Some of the more noteworthy developments were the following:
  The third edition of the volunteer vacations: Iberdrola - São Paulo 2.0, continued to provide IT training 
to Brazilian youths at risk of social exclusion, with a three-week stay in Brazil of a team of volunteer 
employees from Spain, the United Kingdom, and the United States of America.
  The fifth edition of the Group’s International Volunteerism Day was held simultaneously in Spain, the 
United Kingdom, the United States of America, Mexico, and Brazil. This edition allowed 850 volunteers to 
channel their social service spirit by participating in one of the 50 activities organised.
  Volunteering days were organised in the Autonomous Communities in Spain, with games and sports 
days to encourage the normalisation and integration of persons with disabilities. 350 volunteers 
participated and 2,600 people with different abilities benefited from these days.
  The Iberdrola Operation Kilo campaign allowed for the collection of 5.5 tons of basic foodstuffs and 
children’s products at approximately thirty work centres in Spain, which were given to families in need, 
with the cooperation of social organisations such as Cáritas, Casa Salud, and Red Acoge, among 
others. At the same time, Iberdrola cooperated with several entities such as UNICEF, Aldeas Infantiles, 
Federación Española de Bancos de Alimentos, and Asociación Valdeperales to provide support to 
groups at risk of exclusion or living in poverty.
  Professional volunteerism continued to wager on cooperation for development initiatives in African 
countries, within the framework of the Electricity for Everyone Programme (Programa electricidad para 
todos), with a new public-private cooperation project to improve electric power supply at several refugee 
camps in Ethiopia, where two volunteer experts in electricity infrastructure travelled.
  Environmental volunteering activities included the holding of Tree Day in the Biscay town of Bermeo, 
and a reforestation day in Madrid.
The Volunteer Portal has been the meeting point for all professionals of the Iberdrola Group interested in 
social and community service actions, which inaugurated a more modern and accessible design in 2014.

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4.- Fundación Iberdrola
The country subholding companies are linked to various institutions in the nature of foundations, 
separated from the corporate structure of the Group, the mission of which is to engage in initiatives that 
efficiently contribute to the improvement in the quality of life of the people in the territories and countries 
in which the Group operates, especially in the areas of energy sustainability, art, and culture, as well as 
community service and social action, and which have the independence to achieve their goals and full 
functions and autonomy.
Within their respective countries, these institutions implement a corporate social responsibility 
strategy designed by the Company’s Board of Directors, to the extent that they are appropriate to the 
foundational purposes thereof and entrusted thereto by the board of directors of the country subholding 
company to which they are connected. They receive financial assistance from the Group on an annual 
basis to engage in their functions.
In particular, a suitable framework for collaboration among the various foundational institutions 
connected to the Group is established through the Foundations Committee of the Iberdrola Group 
in order to coordinate the activities of general interest and corporate social responsibility that are 
entrusted thereto.
The Board of Trustees of Fundación Iberdrola, which is linked to Iberdrola España, S.A.U., the country 
subholding company grouping the energy businesses in Spain, approved its new Master Plan for the 
2015-2019 period, the purpose of which is to promote various initiatives aimed at contributing to the 
improvement of the quality of life of individuals in the countries in which the Iberdrola Group is active. 
This Plan includes major continuing programmes and initiatives that were carried out in 2014 in the four 
areas of the Foundation:
a) Training and research area:
Fundación Iberdrola’s Scholarship and Research Aid Programme in Energy and Environmental Research 
each year grants Master’s scholarships in energy and environmental research in Spain, the United 
Kingdom, and the United States of America, as well as research grants in Spain. This programme seeks 
to achieve excellence in applied higher training, in order to train high-level professionals capable of 
contributing to the search for solutions consistent with meeting the energy demands of the population 
and the protection of the environment, through close cooperation with prestigious professionals from 
the academic and research world.
In 2014, the Programme granted 64 Master’s scholarships at universities in Spain, the United Kingdom, 
and the United States of America and research grants in Spain. In addition, 4 scholarships were granted 
for training and research at the Restoration Workshop of the Prado Museum and the Fine Arts Museum 
in Bilbao. The Prince of Asturias Chair in Information Science and Related Technologies at the University 
of New Mexico, focusing primarily on research in the area of smart grids, has become firmly established 
this school year. This Chair grants scholarships to Spanish students for doctoral studies in this area. 
The total of 80 scholarships and grants in 2014 entailed an investment of 1.6 million euros.

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Fundación Iberdrola also collaborates with other entities in granting scholarships, including the 
following:
  Fundación Carolina, through its Training Programme, the aim of which is to promote improvement 
in higher education within the American continent and to foster the internationalisation of Spanish 
universities.
  The Fulbright Foundation, which promotes the further education of university graduates through 
master’s or doctorate programmes in the United States of America.
  The Spanish Paralympics Committee to facilitate the university education of 7 Paralympic athletes.
b) Sustainability and biodiversity area
Collaboration on the Bird Migration Scheme in 2014 resulted in the banding of 20 new specimens of 
birds with GPS transmitters. Detailed information regarding the migration of these birds in real time is 
available at www.migraciondeaves.org. 167 birds have been banded since 2011.
The Foundation has continued to collaborate in the LIFE+ Cantabrian Capercaillie Protection Scheme, 
funded by the European Union and coordinated by Fundación Biodiversidad. In 2014, five specimens 
survived at its Breeding Centre in 2014 (3 females were radiolabelled and set free in Picos de Europa, in 
Castile-León). 
In cooperation with Fundación Patrimonio Natural de Castilla La Mancha, the “Bonelli’s eagle 
Conservation Plan in Arribes del Duero” was developed to improve habitats in the hunting preserves in 
“Bonelli’s eagle territories” to provide for the maintenance and recovery of the species. The plan allows 
for the provision of food resources to guarantee reproductive success and the monitoring of the nesting 
population. 6 chickens were marked in 2014 to monitor reproductive success.
Through the ScottishPower Foundation, there has been collaboration on various projects in the United 
Kingdom, including ‘A Walk in the Park’ run by Loch Lomond and the Trossachs Countryside Trust to 
encourage those suffering from long term ill health to get active and to make walking accessible for all. 
Through the Iberdrola USA Foundation, there is collaboration in the United States of America with the 
Royal River Conservation Trust, which has engaged in conservation of the land around the Royal River, in 
the State of Maine.
c) Art and culture area
Of note is the Atlantic Romanesque Project (www.romanicoatlantico.org), which completed 10 of the 11 
restoration projects in Castile-León. Worthy of mention in 2014 is the completion of the work on the San 
Pedro de la Nave church in El Campillo. An interpretation centre was also built near the church, with an 
information point, an exhibition area, and a cafeteria.
In the Illumination Programme, new projects for the lighting of historical/artistic heritage have begun, 
such as the Cristo de la Luz Mosque in Toledo, and the Royal Collegiate Church of Santa María la Mayor 
in Toro, Zamor, among others. The “Lighting the Prado” project replaces existing halogen lamps with 
LED technology in all the halls of the Prado Museum. The main facade of the Congress of Deputies has 
also been illuminated.

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Restoration work continues on “Titian’s Poesie” at the Prado Museum Restoration Workshop and on 
several works by Basque artists at the Bilbao Fine Arts Museum. Also worthy of note is the collection of 
six Flemish tapestries of the Royal Seminary College of Corpus Christi, in Valencia.
Exhibitions includes a showing of “Antoni Tàpies. From object to sculpture (1964-2009)” at the 
Guggenheim Museum in Bilbao, “The return of the snake. Mathias Goeritz and the invention of emotional 
architecture” at the Reina Sofía Museum, and the “Fuendetodos Follies” showing the etching “Priest 
flying with luggage” by the artist Cristóbal Toral. 
d) Cooperation and solidarity area
The purpose of Fundación Iberdrola’s Call for Social Assistance is to contribute to the improvement of 
the quality of life of the most vulnerable groups, through initiatives that will make it possible to cover 
basic needs and access to basic services.
In 2014, priority was given to initiatives that promote education and training to favour social and 
workplace integration. Not-for-profit organisations that develop projects to fight against poverty and 
social exclusion and to improve the quality of life of sick people and their dependents may elect to 
participate in this social assistance programme.
In 2014, social initiatives in collaboration with civil society organisations represented an investment 
of more than one million euros, carried out through 32 projects throughout Spain. Collaborating 
organisations include: Proyecto Hombre, Asociación Española Contra el Cáncer, Cáritas, Mensajeros de 
la Paz, Fundación Síndrome de Down, Menudos Corazones, etc.
Distribution of funds by sector: €1 million
Fight against 
poverty 37% 
Functional 
Diversity 45%
Sick People 
18%

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Sustainability Report 2014     /
Cooperation for Development Project “Accessible and efficient power for access to water and 
sanitation.”
Fundación Iberdrola collaborates with the NGO Alianza por la Solidaridad Development in a project 
included in the Water and Sanitation Fund of the Spanish Agency for International Development 
Cooperation (Agencia Española de Cooperación Internacional para el Desarrollo) (AECID). The aim 
of this initiative is to improve drinking water and sanitation conditions through the development of 
accessible power systems. The project is carried out in 6 municipalities of the Chinandega Norte region 
in Nicaragua, inhabited by isolated rural communities, with a highly vulnerable population living in a 
state of structural poverty. Nicaragua is the Central American country with the lowest percentage of 
population having access to electricity. It also has a high level of isolation of rural communities, for 
which access to the national electricity grid is difficult and very expensive. This project is aimed at the 
women and girls of these communities, since they are responsible for getting water from hand-dug 
wells, small springs, and streams that are generally contaminated, far from inhabited areas, and difficult 
to access. The project lasts for three years and an annual investment of 45,000 euros is required to help 
develop more than 740 sanitation activities with energy components that will improve the quality of life of 
these women and girls, as well as of their 3,228 families.
In the United Kingdom, the ScottishPower Foundation has celebrated the “Duke of Edinburgh’s Award” 
programme, which promotes personal and professional development among young people. In the United 
States of America, the Iberdrola USA Foundation has supported Camp Sunshine, which organises 
summer camps for children with chronic illnesses. In Brazil, the Electricians School has allowed for 
the training of young people on issues of electricity. In Mexico, various primary schools have been 
rehabilitated.
Details on the projects supported by Fundación Iberdrola can be found on its website www.
fundacioniberdrola.es. Additional information about the foundations linked to other country subholding 
companies can be found on the following websites:
  United Kingdom: ScottishPower Foundation www.scottishpower.com.
  United States: Iberdrola USA Foundation www.iberdrolausa.com.
  Brazil:  Instituto Elektro www.elektro.com.br.
5.- Electricity for everyone programme
The Electricity for Everyone Programme (Programa electricidad para todos) was launched in January 
2014, considered to be an appropriate time to strengthen and expand the Company’s activities in 
promoting access to electricity in emerging and developing countries.
This programme has three main lines of action:
  Line 1. Financing of projects through capital investment: search for projects are already in progress 
that Iberdrola can join in with a percentage stake using the PERSEO investment fund. It is actively 
seeking and reviewing several projects to invest in.
  Line 2. Activities conducted by the businesses: Investments promoted in countries in which Iberdrola 
has a presence, such as the Light for Everyone (Luz para todos) programme of the distributors of north-
eastern Brazil, and the activities carried out by Iberdrola Ingeniería y Construcción.

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  Line 3. Development of projects with a high social component, such as the development of its own 
projects in the areas it serves, with the support of NGOs and corporate volunteers. A cooperation 
agreement with the NGO Energía sin Fronteras for the study of a rural electrification model in remote 
areas through micronetworks in Brazil was signed in February. There is also a pilot project for the 
electrification of a village in Rwanda, using the school as a benchmark, carried out by Iberdrola and the 
Massachusetts Institute of Technology (MIT) in collaboration with Energía sin Fronteras and Instituto de 
Investigación Tecnológica (IIT) of Universidad de Comillas in Madrid.
As this activity cuts across three lines of action, a Chair for the Universalisation of Basic Energy Services 
was created with the Centre for Innovation in Technology for Human Development (Centro de Innovación 
en Tecnología para el Desarrollo Humano) of Universidad Politécnica de Madrid (ITD-UPM). Training and 
dissemination activities are underway within this framework, as are actions to identify possible R&D+i 
activities in the area of universal power services.

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C4.- 
Product responsibility
The aspects analysed and reported on in this chapter are the following:
Aspects of the GRI-G4 Guidelines
(those indicators that require additional information per the electric utilities sector supplement are identified with (*))
Customer health and safety (*)
Products and service labelling
Marketing communications
Customer privacy
Compliance
Specific Aspects of the GRI-G4 Electric Utilities Sector Supplement
Access to electricity
Access to adequate information
The information boundaries used in this chapter are defined in indicator G4-17 of this report.

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Specific Management Approach to Product Responsibility
The most significant products that Iberdrola makes available to consumers are electricity and natural 
gas, which it sells on the retail markets. Although it engages in various activities through its Group, due 
to the nature and scope thereof, they are not significant in connection with customers for the purposes 
of this report.
Accordingly, the information set forth in this chapter refers to the activities of distribution and supply of 
electric power and gas in the retail markets in Spain, the United Kingdom, the United States of America, 
and Brazil, except for the specific EU30 indicator which refers to the availability factors of the production 
plants.
Indicator G4-17 of this report also specifies the countries in which such products are sold. The impact 
on the Company’s customers of the activities conducted in Portugal, Germany, and France is not 
considered to be significant.
As a whole, the companies and affiliates of the Group covered by this report (expanded boundary) handle 
a total of 32.6 million energy supply points, of which 29 million correspond to electric power and 3.6 
million to gas supply. This information is described by type of user in indicator EU3 of this report.
The Iberdrola Group operates with an organisational structure in which the Networks Business manages 
the activities of energy transmission and distribution and any other regulated activity that the Group 
carries out in Spain, the United Kingdom, the United States of America, and Brazil, and the Wholesale 
and Retail Business manages non-regulated activities in Spain, Portugal, the United Kingdom, Mexico, 
and continental Europe. Due to their significance, this chapter of the report includes information 
corresponding to the distributor companies of the Neoenergia Group in Brazil, in which Iberdrola holds a 
significant percentage but over which it does not have the capacity for control. 
In managing these issues, Iberdrola acts in accordance with the principles described in the “General 
Management Approach” section of this report.
Aspect: Customer health and safety
Management Approach 
Health and safety during the life cycle
All stages of the life cycles of electricity and gas are subject to a high degree of regulation because they 
are basic products for the development of a country’s economy and because of the improvement they 
entail in the well-being of its citizens. 
In the planning stage, the community participates through its social and political representatives in 
broad discussions concerning the energy model to be adopted in the country, taking into consideration 
economic, environmental, and health and safety aspects, as well as the reliability of supply. This 
generates public policies that lay the groundwork for the companies within the Iberdrola Group to adopt 
investment strategies that are consistent with such policies.

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In the area of electricity production, the countries in which Iberdrola engages in activities have extensive 
environmental and labour regulations aimed at ensuring that existing risks to human health and safety 
remain within the regulated limits. The companies provide the information required to verify that the 
operating conditions established in the regulations and in the technical specifications for generation 
plants are observed in their construction, operation, and maintenance.
Likewise, the electricity and gas transmission and distribution stages are subject to extensive 
regulations governing the construction, operation, and maintenance of facilities, and therefore the 
companies provide the human, physical, and financial resources needed to minimise electricity risks and 
those associated with the handling of natural gas.
It is believed that the most effective measures to protect public health and safety in the use of electricity 
and gas are education and the provision of information to consumers. For that reason, Iberdrola’s 
subsidiaries and affiliates have implemented mechanisms to inform and educate the public. These 
programmes and activities are described in detail in the “Provision of information” aspect in this chapter.
During all stages of the life cycles of the products it sells, Iberdrola abides by applicable law in all 
matters relating to the health and safety of its customers, and also voluntarily adopts various measures 
to improve aspects relating to product safety. In Spain, specific internal regulations are developed, such 
as those applicable to low voltage condenser batteries, and there are also gas maintenance operating 
procedures that ensure safety. In Brazil, Celpe has adopted a procedure to investigate and review 
electrical accidents suffered both by employees and by third parties.
Electric and magnetic fields
The influence of electric and magnetic fields on human beings has historically been a matter of public 
debate and the studies carried out show that, with the safety distances currently adopted in the 
construction of these facilities, there has been no identification of detrimental effects on human health. 
In this case, Iberdrola applies the precautionary principle and is willing to collaborate with the public 
authorities in adopting such preventive or mitigating measures as may be deemed appropriate to avoid 
risks or harm to health.
There are different practices relating to this issue in the various countries in which Iberdrola operates: in 
the United Kingdom and the United States of America, the facilities comply with applicable regulations 
and measurements are not taken at the facilities unless requested by the customer; during 2014, the 
company responded to 86 such requests in the United Kingdom.
In Spain, two reports are prepared regarding electric and magnetic fields at facilities, which are audited 
by Aenor. In 2014, all facilities emitted electric and magnetic fields below the maximum limits established 
by law.
In Brazil, there is a legal resolution that requires electromagnetic field measurements and simulations to 
check compliance with the established reference values. Elektro complies with this regulation and takes 
measurements at all its 138 kV facilities to ensure compliance with such limits. The affiliated companies 
Coelba, Cosern, and Celpe also take the respective measurements and no nonconformity was detected 
in 2014.

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G4-PR1 Products and services for which health and safety impacts are assessed 
The processes required for the supply of electricity and gas described in the management approach 
above ensure that such products arrive at the consumer with an appropriate level of assurance for their 
health and safety.
G4-PR2 Incidents of non-compliance with regulations and voluntary codes concerning the health and safety 
impacts of products and services
The table below sets forth the incidents that occurred during financial year 2014, both of them in Brazil:
Incidents stemming from non-
compliance with regulations or voluntary 
codes (no.)
2014
2013
Expanded boundary
Resulting in a fine
2
2
Resulting in a warning
0
2
Relating to voluntary codes
0
0
Total incidents
2
4

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EU25 Injuries and fatalities to the public involving company assets
Electricity is an essential service, and to facilitate citizens’ access thereto, the construction, operation, 
and maintenance of various infrastructure is required, which creates certain risks. These risks may at 
times give rise to incidents affecting citizens such as, for example, coming into unintentional contact 
with electricity lines or their supports, injuries due to contact with electrical wiring, etc.
The following table shows the accidents of this kind that occurred during financial year 2014: 5 of the 
persons who suffered accidents were in Spain, 16 in the United Kingdom, 23 in the United States of 
America, and 129 in Brazil. Of the fatalities recorded, 5 occurred in Spain, 2 in the United States of 
America, and 62 in Brazil.
Accidents of persons not belonging to 
the Company (no.)
2014
2013
Expanded boundary
Accident victims
173
217
Fatalities
69
79
The claims listed in the table below have been filed against companies of the Group on these and other 
similar grounds not resulting in injuries and are following the relevant legal procedures applicable in 
each jurisdiction. At year-end 2014, there were 130 claims pending in Spain, 2 in the United Kingdom, 27 
in the United States of America, and 69 in Brazil:
Legal proceedings (no.)
2014
2013
Expanded boundary
Settled and pending, stemming from 
those accidents
228
254
Aspect: Product and service labelling
Management Approach  
G4-PR3 Product and service information and labelling required by procedures in force and by regulations
Electricity and gas are not products that can be labelled, for which reason this aspect is not relevant 
for Iberdrola. The additional information that it is believed may help consumers make a more rational, 
efficient and safe use of these products is set forth at the end of this chapter in the “Provision of 
information” aspect.

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G4-PR4 Incidents of non-compliance with regulations and voluntary codes concerning product and service 
information and labelling
The following table sets forth only one incident of this kind, which occurred in Spain during financial year 
2014.
Incidents relating to information and 
labelling (no.)
2014
2013
Expanded boundary
Resulting in a fine
1
2
Resulting in a warning
0
0
Relating to voluntary codes
0
0
Total incidents
1
2
G4-PR5 Surveys measuring customer satisfaction
Customer satisfaction may be considered a goal for any company, on which its very survival depends. 
Iberdrola is aware of this, and has various mechanisms to measure customer satisfaction levels and 
collect the opinions of its customers, as well as to verify compliance with quality standards within 
the customer service and sales channels. Thus, an annual satisfaction survey known as Voice of the 
Customer (La Voz del Cliente) was conducted in Spain and Portugal, in which the company received 
scores of 6.6 out of 10 in Spain and 6.88 out of 10 in Portugal with respect to the service the customer 
receives. The methodology used is the same as the one used for telephone interviews by a research 
institute on a representative sample of our customers, such that reliability levels and margins of error 
make the study statistically valid.
Specifically, there are satisfaction surveys in Spain for the customer service and sales channels, and 
for products, conducted both by third parties and internally. Generally speaking, these surveys make 
it possible to identify how customers assess the different stages of the service and management 
processes, in order to identify the areas of service that require priority action to improve customer 
satisfaction.
Other mechanisms are used to assess compliance with procedures and the quality of service and sale in 
our channels, such as the “mystery shopper” and random reviews of customer service recordings.
In the United Kingdom, ScottishPower engages in the following activities to learn the opinion of its 
customers: VoC-Voice of the Customer and Tell the Energy People (TTEP). In addition, five external 
reviews are carried out in that regard: Which?, CSI-UK, USwitch, Nunwood Customer Experience, and 
UKCSI, all of them on an annual basis except the last, which is semi-annual, to measure various aspects 
relating to customer satisfaction.

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In the United States of America, CMP, NYSEG and RGE perform two types of measurements, the first 
of customer satisfaction in recent transactions and the second of the consumers’ perception of the 
companies’ performance. The results of the first are compared with the regulator’s objectives and with 
the results of other companies in the industry. The second is conducted on an annual basis, through 600 
telephone interviews. Its result shows that the companies are among the 5 leading companies of the 
Northeast in the 3 indices derived from the 20 questions asked: customer satisfaction index, distributed 
energy index, and customer interaction index.
In Brazil, Elektro carries out an annual satisfaction survey for medium and high voltage customers, using 
the methodology established by Abradee, which assesses the quality and continuity of energy supply and 
customer communication. In addition, at affiliates in this country, two other surveys are conducted by 
Abradee and Aneel, which review various customer satisfaction attributes, in which Coelba received 76.4 
and 67.63 out of 100; Celpe received 74.7 and 57.36; and Cosern received 79.2 and 66.27, respectively.
Aspect: Marketing communications 
Management Approach 
Iberdrola observes and abides by the laws that govern its advertising or marketing communications, 
and adopts mechanisms and voluntary codes that make such communications transparent and truthful. 
Thus, for example, in Spain Iberdrola is a member of the Association for Commercial Self-Regulation 
(Asociación para la Autorregulación Comercial) (Autocontrol), the Spanish Electronic Commerce and 
Relational Marketing Association (Asociación Española de Comercio Electrónico y Marketing Relational) 
(Aecem), the Spanish Advertisers’ Association (Asociación Española de Anunciantes) (AEA) and the 
Marketing Association of Spain (Asociación de Marketing de España) (mkt), and has subscribed to 
their respective codes of ethical conduct, which entails a commitment to offer responsible advertising 
to society that complies with the codes of conduct, and accepts the decisions of an Advertising Jury 
(Jurado de la Publicidad) regarding complaints that may be filed by consumers or competitors with such 
body. 
It has also subscribed to the Ethical Code for Electronic Commerce and Internet Advertising (Código 
ético de comercio electrónico y publicidad en internet), which is communicated through the inclusion 
of the Online Trust Mark on the Company’s website, and the Code on Self-Regulation of Environmental 
Claims in Marketing Communications (Código de autorregulación sobre argumentos ambientales en 
comunicaciones comerciales) has also been signed with the Ministry of Environment and Rural and 
Marine Affairs. Iberdrola reviews its commitment to these codes on an annual basis.
ScottishPower complies with all the laws applicable to it on these terms, and also complies with 
condition SLC 25 of the supply licence which requires clarity, simplicity, and justice for customers, and 
has voluntarily subscribed to the Green Supply Guidelines, which establish the transparent and specific 
promotion of products affecting the environment, and also complies with the codes of advertising 
practice of the Advertising Standards Authority, ensuring that each advertisement published is approved 
by teams that verify compliance with good practices.

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Elektro has a formal communication policy called COE-P-003, which means that marketing materials are 
consistent with the ethical values and principles governing Iberdrola. There are also internal rules for 
the preparation of marketing communications and advertising activities at the affiliates in Brazil, and the 
responsible advertising rules of the National Council on Advertising Self-Regulation (Consejo Nacional 
de Autorregulación Publicitaria) (Conar Statute) are followed.
G4-PR6 Sale of banned or disputed products
The products and services sold by Iberdrola are not banned in any of the markets in which it operates. 
As regards electricity, two aspects can be identified that have traditionally generated certain social 
debate: electromagnetic fields and nuclear generation. Iberdrola’s management of the first is set forth 
in the indicator G4-PR1 of this chapter, and the second is fully covered in the “Environment” section of 
www.iberdrola.com. 
G4-PR7 Incidents of non-compliance with regulations and voluntary codes concerning marketing communications
The incidents that occurred during financial year 2014 are set forth in the table below. Of the incidents 
resulting in a fine, 18 occurred in Spain and 1 in the United Kingdom.
Incidents of non-compliances concerning 
marketing, advertising, promotion and 
sponsorship (no.)
2014
2013
Expanded boundary
Resulting in a fine
19
1
Resulting in a warning
0
0
Relating to voluntary codes
0
0
Total incidents
19
1
Aspect: Customer Privacy
Management Approach 
In the countries in which the Group has a presence, the privacy of customers’ personal information 
is protected by the mandatory application of the Code of Ethics, which provides that the Group shall 
ensure the confidentiality of its customers’ data and that the acquisition, use, and processing of 
customers’ personal data must be conducted in a manner that guarantees their right to privacy. 
The Corporate Security Division is the body of the Company responsible for applying these principles, 
for which purpose it has engaged in a process of regularising the processing of the personal data held

Part ii. Specific standard disclosures   /   235
Sustainability Report 2014     /
by the Group: customers, employees, suppliers, and other groups, identifying the types of data and types 
of processing for such purpose, as well as the areas using them.
With a view to ensuring compliance with applicable requirements, the Iberdrola Group has established 
an internal strategy for its companies that rests on the following principles: publication of internal 
compliance regulations and assignment of roles and responsibilities at each organisation, in order 
to identify new forms of processing or changes in existing forms and to ensure compliance with 
established requirements.
The Corporate Security Division has also developed an awareness-raising and training plan over the 
years, supported by a number of specific actions integrated within the Company’s training programmes, 
and performs monitoring activities. 
In Spain, the United Kingdom, the United States of America, and Brazil, there are certain laws on this 
subject that the professionals of the Group must comply with, and there are appropriate processes in 
place for such purpose.
G4-PR8 Substantiated complaints regarding breaches of customer privacy and losses of customer data
Incidents relating to privacy (no.)
2014
2013
Expanded boundary
From regulatory bodies
396
418
From other sources, substantiated
54 
50
Total substantiated complaints
450
468
Of the claims from regulatory bodies, 18 were received in Spain, 352 in the United Kingdom, and 26 in 
Brazil, and of those from other sources, 12 were received in Spain, 35 in the United Kingdom, and 7 in 
Brazil.
During 2014, there were also 23 cases of loss of, or damage to customer data, of which 2 were in Spain 
and 21 in the United Kingdom.

236   /   Part ii. Specific standard disclosures 
/   Sustainability Report 2014 
Aspect: Compliance
G4-PR9 Significant fines for non-compliance with laws and regulations concerning the provision and use of 
products and services 
During financial year 2014, incidents relating to indicators G4-PR2, G4-PR4, and G4-PR7, as well as other 
incidents relating to the distribution and retail sale of electricity, involved the following fines: 
Fines imposed for distribution and retail 
sale of electricity and gas (€)
2014
2013
Expanded boundary
Total fines imposed
5,680,930
7,910,693
A breakdown by geographic area of the total amount of fines imposed is as follows: Spain: 340,800 
euros; United Kingdom: 3.72 euros42; and Brazil: 5,340,126 euros.
Electric Utilities Sector Specific Aspects
Aspect: Access
Management Approach 
To facilitate access to electricity by certain groups which do not have access to power either because of 
their vulnerable status or because of various specific difficulties, the Company establishes programmes 
through its subsidiaries and affiliates that sell electric power, and determines in each case which 
persons are at risk or may be in a situation of vulnerability.
Programmes, including those in partnership with government, to improve or maintain access to electricity and 
customer support services
The Company establishes two types of programmes, depending on whether the situation in question is 
a situation of risk of exclusion or vulnerability or because there is no access to distribution networks. In 
the first case, the Company and its subsidiaries and affiliates establish special rates to facilitate access 
by persons with low income.
In the United Kingdom customers are identified who may be vulnerable due to age, health, disability, 
or other serious reasons, with procedures adopted by the company to avoid disconnections due to 
payment failures such as: the No Winter disconnections, which provides that no customer will be 
disconnected between November 2014 and February 2015, i.e. the months with the lowest temperatures; 
42  ScottishPower reached an agreement with the regulator Ofgem for the payment of € 3.72 (£ 3) as a nominal fine, plus a 
payment of € 929,714 to Energy Best Deal (a citizen awareness-raising advertising campaign by Citizen’s Advice) and € 2,975,084 to 
ScottishPower Energy Trust (which will be distributed to various foundations helping those people who cannot afford to pay gas and 
electricity bills).

Part ii. Specific standard disclosures   /   237
Sustainability Report 2014     /
the Debt repayment programme which provides that no bills will be issued to the most vulnerable 
customers from December until the end of February, and the Electric Heating programme that 
establishes an information protocol concerning electric power and control of expenses.
In the United States of America, there are agreements with the government to help customers at risk of 
exclusion and vulnerable customers, and there are specific programmes for these groups, such as the 
Home Energy Assistance Program (HEAP), the CMP’s Electricity Lifeline Program (ELP), and the Energy 
Assistance Program (EAP).
In Brazil, Elektro provides access to hospitals and health centres with discounted prices from thirty to 
seventy percent on energy billing. They also have programmes to procure universal access to electricity 
distribution. Coelba, Cosern, and Celpe have special prices and terms for persons in difficulty, and have 
developed projects such as Green Energy (Energía verde) and Light for everyone (Luz para todos) aimed 
at groups at risk of exclusion.
In Spain, there are subsidised rates (known as Bono Social) that are financed through the regulated 
costs of the electricity industry and managed by the electricity companies, which allows lower 
electricity prices to be applied to electricity consumers considered as vulnerable on the basis of certain 
determined social, consumption, and purchasing power characteristics. At the end of 2014, there were 
approximately 900,000 supplies with these characteristics.
In addition, Iberdrola has established various bill payment facilities for its customers, such as smoothing 
costs with fixed annual payments, instalment payments, advice on the best contracts depending on 
customers’ needs, payment protection insurance, and notices in the event that non-payment is detected.
EU26 Population unserved in distribution areas
For the companies of the Iberdrola Group in Spain, the United Kingdom, and the United States of 
America, the electrification level covers practically the entire population. In Brazil, in the Elektro and 
Neoenergia distribution area (slightly over 835,000 km2, with a resident population of slightly more than 
32.2 million persons), approximately 176,000 persons do not have electricity, representing less than 1% 
of the population.

238   /   Part ii. Specific standard disclosures 
/   Sustainability Report 2014 
EU27 Residential disconnections for non-payment
The information regarding disconnections for non-payment and subsequent reconnections in 
accordance with the GRI structure is shown in the following table:
Residential disconnections for non-
payment (no.)
2014
2013
Paid up to 48 h after disconnection
1,254,197
1,312,255
Paid between 48 h and one week after 
disconnection
232,862
256,729
Paid between one week and one month 
after disconnection
205,104
255,564
Paid between one month and one year
157,751
254,128
Paid after more than one year
24
5
Outstanding and unclassified
19,529
852,458
Total
1,869,467
2,931,139
Residential reconnections following 
payment of unpaid bills (no.)
2014
2013
Less than 24 h after payment
1,547,230
1,892,374
Between 24 h and one week after 
payment
173,820
167,803
More than one week after payment
112,929
84,770
Unclassified
70,512
767,143
Iberdrola total
1,904,491
2,912,090
 
Detailed information on cut-offs and reconnections in the various countries can be found in the 
Information Supplementary to the Sustainability Report 2014, available at www.iberdrola.com.

Part ii. Specific standard disclosures   /   239
Sustainability Report 2014     /
EU28 Power outage frequency
Iberdrola supplies electricity and monitors service quality in various countries. However, the measures 
in each company are taken according to different rules, following the respective legal requirements or 
customs, for which reason the Company does not currently have a homogeneous measure of service 
quality in the various countries in which it operates.
  Installed Capacity Equivalent Interrupt Number (Spanish acronym “NIEPI”) is used in Spain.
  Customer interruptions per 100 connected customers (“CI”) is used in the United Kingdom.
  System average interruptions frequency index (“SAIFI”) is used in the United States.
  Equivalent frequency of interruption by consumer unit (Portuguese acronym “FEC”) is used in Brazil.
The figures are as follows:
Year
Spain
United 
Kingdom
United States
Brazil43
NIEPI
CI44
SAIFI
FEC
2014
1.07
48.0
1.23
7.62
2013
1.20
44.0
1.24
7.64
EU29 Average power outage duration
Similarly to the preceding section:
  Installed Capacity Equivalent Interrupt Time (Spanish acronym “TIEPI”) is used in Spain.
  Customer minutes lost per connected customers (“CML”) is used in the United Kingdom.
  Customer average interruption duration index (“CAIDI”) is used in the United States.
  Equivalent duration of interruption by consumer unit (Portuguese acronym “DEC”) is used in Brazil.
The figures are as follows:
Year
Spain
United 
Kingdom
United States
Brazil43
TIEPI
CML44
CAIDI
DEC
2014
55.7 min 
44.0 min
1.89 h
19.93 h
2013
62.4 min
44.0 min
2.47 h
18.61 h
43  Elektro and Neoenergia. 
44  Measurement period from April to March.

240   /   Part ii. Specific standard disclosures 
/   Sustainability Report 2014 
EU30 Average plant availability
The following table shows the average availability of the Company’s various production technologies 
during financial year 2014.
Average availability factor
2014
2013
Expanded boundary
Conventional thermal
80.91
85.53
Combined cycles
91.89
90.67
Cogeneration
95.51
91.24
Nuclear
92.69
88.96
Hydroelectric
84.91
86.78
Mini-hydro
94.36
96.69
Wind
96.70
97.29
Biomass
0.00
0.00
Total
88.70
91.49
Information on the availability factors in the various countries is described in the Information 
Supplementary to the Sustainability Report 2014, available at www.iberdrola.com.
Aspect: Provision of information
Management Approach
The Iberdrola Group’s distribution and supply companies develop various initiatives to make 
communication with customers having specific difficulties, whether idiomatic or sensory, simpler and 
more agile.
Apart from commercial information, the safety of users of the electricity grid, or the promotion of the 
efficient use of energy, whether by customers, employees, contractors, schools, etc., is an ongoing 
concern at the subsidiaries and affiliates of the Group. To progress in these areas, information and 
training plans, programmes, and activities are developed in each geographic area.

Part ii. Specific standard disclosures   /   241
Sustainability Report 2014     /
Accessibility of information
In Spain, to facilitate customer access to the information they need, they are allowed to choose the 
language in which they would like to be addressed by customer service and in which they would like to 
receive their bill, and the customer area of the website is accessible in Spanish, Basque, and English, 
with other languages expected to be added in the future. Documents are currently issued in nine 
languages in addition to Spanish; four Autonomous Community languages: Basque, Galician, Valencian, 
and Catalan, as well as the five main European languages: German, French, English, Portuguese, and 
Italian.
Iberdrola is the only company in the energy industry that offers sign language video-interpreting in 
the customer service area. This initiative arises from the collaboration agreement signed between 
Iberdrola and Fundación CNSE in 2012, and renewed in 2014. In this way, persons who are deaf or hard 
of hearing can contact the Company through sign language interpreters. The corporate website has a 
Double-A Technosite + Euracert WCAG 1.0 certificate for compliance with the W3C-WAI’s web content 
accessibility guidelines 1.0, and complies with the guidelines required to satisfy the UNE 139803:2004 
Standard established by Royal Decree 1494/2007 governing the degree of accessibility applicable to the 
websites of public utilities. To ensure that the website meets the relevant accessibility requirements, 
audits are performed on a half-yearly basis. 
During this year, the Iberdrola Clientes application for iPhone and Android was developed which includes 
product information and functions of the virtual Office developed for residential customers and SMEs, in 
addition to contact channels.
In the United Kingdom, ScottishPower provides the necessary mechanisms to communicate effectively 
with customers who choose Welsh as the language in which they wish to receive service. There is 
a translation service to facilitate communications in cases where customers find it difficult to make 
themselves understood in English. In addition, the Carefree Scheme continued in effect during 2014, 
offering a variety of services to customers who are visually or hearing impaired, suffer from chronic 
illness, or are over sixty years old. This service includes the provision of bills in Braille, large print, 
compact disc, and audio cassette format. 
The North American company NYSEG has a special “Customer Advocates” service to help people with 
special needs, which helps them to choose services that might be useful, and this company and RG&E 
make interpreters available for persons who request information in a language other than English. 
In Brazil, Elektro, Celpe, Coelba, and Cosern develop improvements in physical accessibility at customer 
service locations and preferential treatment for persons with different abilities. They also implement 
programmes to provide service, information, and access to billing to persons with visual and hearing 
impairments, which include: accessible websites, bills in Braille, a dedicated phone line for service to the 
hard of hearing, special documentation and signage, and employees trained in sign language are also 
available.

242   /   Part ii. Specific standard disclosures 
/   Sustainability Report 2014 
Education in the safe use of electricity
The corporate website, as well as the websites of the companies of the Iberdrola Group, make available 
to consumers recommendations and information regarding the most significant aspects relating to 
safety and offer advice for the safe use of electricity, as well as guidelines to follow in case of an 
electrical accident. They also publish informational booklets regarding the potential risks of electricity 
impacting the proper use thereof.
In Spain, Iberdrola promotes informational and educational campaigns on safety measures and energy 
saving directed towards the general public, such as the Iberdrola Bus, which received 113,206 visits in 
2014. It also collaborates with consumer associations and special groups such as those for disabled or 
disadvantaged persons or persons at risk of social exclusion, in order to contribute to equality, removing 
communication barriers on matters relating to safety, training, and education. Through its customer 
profile on Twitter (@TuIberdrola), Iberdrola also spreads information messages regarding safety and 
energy savings, prepared in an accessible manner to ensure that they may also be read by persons who 
are visually impaired. 
In the United States of America, a great deal of information and recommendations are provided both 
through the website as well as on the back of bills regarding how to act in an emergency, such as 
severely adverse weather, poisoning, and health risks, as well as safety advice in case of storms or 
outages causing lines or equipment to fall, both through the Internet and through other publications. 
In 2014 ScottishPower carried out extensive campaigns to promote electrical safety in the United 
Kingdom, developing programmes such as the PowerWise Classroom Education Programme and 
explanatory visits on the safe use of facilities: DangerPoint and The Risk Factor in Wales and Scotland, 
respectively, which reached more than 39,000 children; in addition, 204 safety “packs” were delivered 
to schools. Participation was also considerable and higher than last year at the Royal Highland Show, 
attended by 178,000 people, where presentations were made that focused on improving safety in the use 
of electricity. 
User safety is also an ongoing concern in Brazil. At Elektro, this information is provided on the bill, on 
the company’s website, to new customers, and messages on safe use are even used while on hold with 
the call centre, so as to reach all customers. At the affiliated companies Coelba, Cosern and Celpe, 
numerous programmes were implemented throughout the year to achieve improved use of electricity, 
such as the National Electric Power Safety Week (Semana Nacional de Segurança com Energia Elétrica), 
the Celpe Safety Week (Semana de Segurança Celpe), with 2,400 participants, and numerous training 
actions and dissemination and education campaigns on the safe use of electricity.
In addition to relations with customers and information on the safe use of electricity, the Company also 
carries out initiatives to promote energy efficiency.
During 2014 Iberdrola and the Basque government developed a new website within the framework of 
Bidelek Sareak, to raise awareness on the importance of optimising energy consumption; this project 
entails a joint investment of 60 million euros, as well as the adjustment of 1,300 transformer centres, 
where cutting-edge technology equipment will be introduced and more than 250,000 meters will be 
installed.

Part ii. Specific standard disclosures   /   243
Sustainability Report 2014     /
Iberdrola in Spain and CMP, NYSEG, and RG&E in the United States of America have developed various 
tools that they have made available to their customers through the websites so that they can compare 
prices and consumption and efficiently use energy management. 
Elektro, through various efficiency programmes with the Brazilian regulator Aneel, has directed 
its efficiency initiatives to educational projects for training teachers and energy managers and to 
replacement with more efficient household appliances and light bulbs. Also in Brazil, Coelba, Cosern, 
and Celp engage in initiatives directed towards more than two million potential customers that involve 
assistance in acquiring equipment for homes, including actions to provide ten thousand educational 
primers in the Cosem Circuit for the safe and efficient use of energy (Circuito Cosern de uso seguro e 
eficiente de energía) and the development of the two Celpe Spaces (Espaços Celpe) for guidance and 
education on energy efficiency.

/   Sustainability Report 2014
244   /   Anexos
Annex   /   244
Annex

Part ii. Specific standard disclosures   /   245
Sustainability Report 2014     /
Sustainability Report 2014     /
Anexos   /   245
245   /   Annex

246   /  Annex
/   Sustainability Report 2014 
Annex 1
GRI Content Index
External assurance: The contents of this index have been externally assured by an independent entity. The 
corresponding assurance report can be found in Annex 3 of this document.
Electric Utilities Sector Supplement This index incorporates the aspects and indicators of such supplement, 
published by GRI in 2014 and adapted to G4. The symbol * indicates those general basic contents and aspects of GRI-G4 
where specific sector information is requested. 
Part I. General Standard Disclosures
Description
Page
External 
assurance
1.- Strategy and Analysis
G4-1
Statement from the most senior decision-maker
13
✓
G4-2
Key impacts, risks, and opportunities
17
✓
2.- Organisational Profile*
G4-3
Name
21
✓
G4-4
Primary brands, products, and services
21
✓
G4-5
Headquarters
22
✓
G4-6
Countries where there are relevant operations
22
✓
G4-7
Nature of ownership and legal form
22
✓
G4-8
Markets served
23
✓
G4-9
Main Indicators
23
✓
G4-10* Workforce
26
✓
G4-11*
Employees covered by collective bargaining agreements
27
✓
G4-12
Description of supply chain
27
✓
G4-13
Significant changes during the financial year
32
✓
G4-14
Precautionary principle
33
✓
G4-15
Externally developed principles or initiatives to which the organisation subscribes or 
which it endorses
34
✓
G4-16
Principal associations to which the organisation belongs
35
✓
EU1*
Installed capacity
38
✓
EU2*
Energy output
38
✓

Annex      /   247
Sustainability Report 2014     /
Part I. General Standard Disclosures
Description
Page
External 
assurance
EU3*
Electricity users and producers
39
✓
EU4*
Transmission and distribution lines
40
✓
EU5*
Allocation of CO2 emissions allowances or equivalent
40
✓
3.- Material Aspects and Boundaries
G4-17
Entities included in the organisation’s consolidated financial statements and in the 
boundary of this report
42
✓
G4-18
Process for defining the report content and the Aspect Boundaries and implementation 
of the GRI principles
49
✓
G4-19
Material Aspects Identified
49
✓
G4-20
Aspect Boundary within the organisation
49
✓
G4-21
Aspect Boundary outside the organisation
49
✓
G4-22
Restatements of information provided in previous reports
52
✓
G4-23
Significant changes in the Scope and Aspect boundaries
52
✓
4.- Stakeholder Engagement
G4-24
Stakeholder groups engaged by the organisation
54
✓
G4-25
Basis for selection of stakeholders
54
✓
G4-26
Approaches to stakeholder engagement, including frequency of engagement by type and 
by stakeholder group
55
✓
G4-27
Key topics and concerns that have been raised through stakeholder engagement
57
✓
5.- Report Profile
G4-28
Reporting period
61
✓
G4-29
Date of previous report
61
✓
G4-30
Reporting cycle
61
✓
G4-31
Contact point for questions regarding the report
61
✓
G4-32
GRI Index with respect to the ‘in accordance’ option chosen
61
✓
G4-33
External assurance for the report
61 
✓
6.- Governance
G4-34
Governance structure
63
✓
G4-35
Delegation of authority from highest governance body to senior executives and other 
employees
66
✓

248   /  Annex
/   Sustainability Report 2014 
Part I. General Standard Disclosures
Description
Page
External 
assurance
G4-36
Executive-level positions with responsibility for economic, social, and environmental 
topics
66
✓
G4-37
Processes for consultation between stakeholders and the Board of Directors
66
✓
G4-38
Composition of the highest governance body
68
✓
G4-39
State whether the chair of the highest governance body is also an executive officer and 
the reasons for this arrangement
69
✓
G4-40
Selection and nomination of the members of the highest governance body
69
✓
G4-41
Processes for the highest governance body to ensure conflicts are avoided
70
✓
G4-42
Highest governance body’s and senior executives’ roles in the development, approval, 
and updating of the organisation’s vision, mission, values, strategies, policies, and goals
71
✓
G4-43
Highest governance body’s knowledge of economic, environmental, and social topics
73
✓
G4-44
Highest governance body’s performance
74
✓
G4-45
Processes of the highest governance body to supervise the identification and 
management of economic, environmental, and social performance, as well as its role in 
the implementation of due diligence processes and in stakeholder consultations
74
✓
G4-46
Highest governance body’s role in reviewing the effectiveness of the management of 
economic, environmental, and social risks and opportunities
75
✓
G4-47
Frequency of the highest governance body’s review of economic, environmental, and 
social impacts, risks, and opportunities
75
✓
G4-48
Highest body that reviews and approves the report
75
✓
G4-49
Process for communicating critical concerns to the highest governance body
75
✓
G4-50
Critical concerns communicated to the highest governance body
75
✓
G4-51
Remuneration policies for the highest governance body and senior executives, as well as 
the relationship to economic, environmental, and social performance
76
✓
G4-52
Process for determining remuneration of the highest governance body and senior 
executives, stating whether independent consultants are involved
77
✓
G4-53
Report how stakeholders’ views are sought and taken into account regarding 
remuneration
77
✓
G4-54
Ratio of compensation at the organisation
78
✓
G4-55
Increase in compensation at the organisation
78
✓

Annex      /   249
Sustainability Report 2014     /
Part I. General Standard Disclosures
Description
Page
External 
assurance
7.-Ethics and Integrity
G4-56
Description of values, principles, standards, and norms of behaviour such as codes of 
conduct and codes of ethics
80
✓
G4-57
Internal and external mechanisms for seeking advice on ethical and lawful behaviour
81
✓
G4-58
Internal and external mechanisms for reporting concerns about unethical or unlawful 
behaviour, and matters related to organisational integrity
81
✓

250   /  Annex
/   Sustainability Report 2014 
Part II. Specific Standard Disclosures
General management approach, applicable to all aspects of this report
86
✓
Economic dimension
Material aspects identified
Disclosures on management 
approach and corresponding 
indicators
Page
Omissions
External 
assurance
Aspects of the GRI-G4 Guidelines 
Economic Performance
From G4-EC1 through G4-EC4
91
✓
Market Presence
From G4-EC5 through G4-EC6
96
✓
Indirect Economic Impacts
G4-EC7 and G4-EC8
97
✓
Procurement Practices
G4-EC9
100
✓
Specific Aspects of the GRI-G4 Electric Utilities Sector Supplement
Availability and Reliability
EU10
101
✓
Efficiency 
EU11 and EU12
101
✓
Demand-Side Management
No specific indicators
104
✓
Research and Development
No specific indicators
106
✓
Decommissioning of Nuclear Plants
No specific indicators
109
✓
Specific Aspect of the Iberdrola Group
Supply Costs
110
✓
Green Bonds
112
✓

Annex      /   251
Sustainability Report 2014     /
Environmental dimension
Material aspects identified
Disclosures on management 
approach and corresponding 
indicators
Page
Omissions
External 
assurance
Specific Management Approach to the Environmental Dimension
115
✓
Aspects of the GRI-G4 Guidelines
Materials *
G4-EN1 and G4-EN2
116
✓
Energy 
From G4-EN3 through G4-EN7
120
✓
Water *
From G4-EN8 through G4-EN10
127
✓
Biodiversity *
From G4-EN11 through G4-EN14 
EU13
132
✓
Emissions *
From G4-EN15 through G4-EN21
141
✓
Effluents and Waste *
From G4-EN22 through G4-EN26
150
✓
Products and Services
G4-EN27 and G4-EN28
156
✓
Compliance
G4-EN29
157
✓
Transport of Persons and Products
G4-EN30
158
✓
Expenditures and Investments
G4-EN31
158
✓
Supplier Environmental Assessment
G4-EN32 and G4-EN33
160
✓
Environmental Grievance Mechanisms
G4-EN34
161
✓

252   /  Annex
/   Sustainability Report 2014 
Social dimension
Labour practices and decent work
Material aspects identified
Disclosures on management 
approach and corresponding 
indicators
Page
Omissions
External 
assurance
Specific Management Approach to Labour Practices and Decent Work
165
✓
Aspects of the GRI-G4 Guidelines
Employment *
From G4-LA 1 through G4-LA3 
EU15, EU17 and EU18
165
✓
Labour/management relations
G4-LA4
165
✓
Occupational Health and Safety *
From G4-LA5 through G4-LA8
170
✓
Training and education
From G4-LA9 through G4-LA11
179
✓
Diversity and equal opportunity
G4-LA12
184
✓
Equal remuneration for women and men G4-LA13
184
✓
Supplier assessment for labour 
practices 
G4-LA14 and G4-LA15
188
✓
Labour Practices Grievance 
Mechanisms
G4-LA16
188
✓
Human rights
Material aspects identified
Disclosures on management 
approach and corresponding 
indicators
Page
Omissions
External 
assurance
Specific Management Approach to Human Rights
190
✓
Aspects of the GRI-G4 Guidelines
Investment
G4-HR1 and G4-HR2
190
✓
Non-discrimination
G4-HR3
191
✓
Freedom of Association and Collective 
Bargaining *
G4-HR4
192
✓

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Child labour
G4-HR5
192
✓
Forced labour
G4-HR6
192
✓
Security practices
G4-HR7
193
✓
Indigenous rights
G4-HR8
194
✓
Assessment of impact on human rights
G4-HR9
195
✓
Supplier human rights assessment
G4-HR10 and G4-HR11
195
✓
Human Rights Grievance Mechanisms
G4-HR12
197
✓
Specific Aspects of the Iberdrola Group
Iberdrola and the Global Compact
197
✓
Society
Material aspects identified
Disclosures on management 
approach and corresponding 
indicators
Page
Omissions
External 
assurance
Aspects of the GRI-G4 Guidelines
Local Communities *
G4-SO1 and G4-SO2 
EU22
199
✓
Anti-corruption
From G4-SO3 through G4-SO5
204
✓
Public policy
G4-SO6
208
✓
Anti-competitive practices
G4-SO7
210
✓
Compliance
G4-SO8
213
✓
Supplier assessment for impacts on 
society
G4-SO9 and G4-SO10
213
✓
Grievance Mechanisms for impacts on 
Society
G4-SO11
216
✓

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Specific Aspects of the GRI-G4 Electric Utilities Sector Supplement
Disaster/emergency planning and 
response
No specific indicators
217
✓
Specific Aspect of the Iberdrola Group
Iberdrola’s contribution to the community
218
✓
Product responsibility
Material aspects identified
Disclosures on management 
approach and corresponding 
indicators
Page
Omissions
External 
assurance
Specific Management Approach to Product Responsibility
229
✓
Aspects of the GRI-G4 Guidelines
Customer Health and Safety *
G4-PR1 and G4-PR2 
EU25
229
✓
Products and service labelling
From G4-PR3 through G4-PR5
232
✓
Marketing communications
G4-PR6 and G4-PR7
234
✓
Customer privacy
G4-PR8
235
✓
Compliance
G4-PR9
237
✓
Specific Aspects of the GRI-G4 Electric Utilities Sector Supplement
Access to electricity
From EU26 through EU30
237
✓
Access to adequate information
No specific indicators
241
✓

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Annex 2
Content Index in relation to the  
Principles of the Global Compact
The table below shows the GRI indicators of this report that offer more relevant information on compliance with the 10 
Principles of the Global Compact, as well as the content of the management approaches to each GRI aspect. Using the 
table’s index, each stakeholder can assess the level of Iberdrola’s advancement with respect to each of such principles:
Issue
Global Compact Principles
Most relevant 
GRI-G4 Indicators
Human Rights
Principle 1. Businesses should support and respect the 
protection of internationally proclaimed human rights.
G4-HR2, G4-HR7 through G4-HR9,
G4-HR12
G4-SO1, G4-SO2
Principle 2. Businesses should make sure they are not complicit 
in human rights abuses.
G4-HR1, G4-HR10, G4-HR11
Labour Rules
Principle 3. Businesses should uphold the freedom of 
association and the effective recognition of the right to collective 
bargaining.
G4-11 
G4-HR4 
G4-LA4
Principle 4. Businesses should uphold the elimination of all forms 
of forced and compulsory labour.
G4-HR6
Principle 5. Businesses should uphold the effective abolition of 
child labour.
G4-HR5
Principle 6. Businesses should uphold the elimination of 
discrimination in respect of employment and occupation.
G4-10
G4-EC5, G4-EC6
G4-LA1, G4-LA3, G4-LA9,
G4-LA11 through  G4-LA13
G4-HR3
Environment
Principle 7. Businesses should support a precautionary approach 
to environmental challenges.
G4-EC2
G4-EN1, G4-EN3, G4-EN8,
G4-EN15 through G4-EN17, 
G4-EN20, G4-EN21, G4-EN27
G4-EN31
Principle 8. Businesses should undertake initiatives to promote 
greater environmental responsibility.
G4-EN1 through  G4-EN34
Principle 9. Businesses should encourage the development and 
diffusion of environmentally friendly technologies.
G4-EN6, G4-EN7, G4-EN19, 
G4-EN27, G4-EN31
Anti-corruption
Principle 10. Businesses should work against corruption in all its 
forms, including extortion and bribery.
G4-56 through  G4-58 
G4-SO3 through  G4-SO6

256   /  Annex
/   Sustainability Report 2014 
Annex 3
Green Bond Returns Report 
Iberdrola issued its first Green Bond on 24 April 2014.
The Green Bond proceeds were used to refinance previous investments in projects which meet a set 
of environmental and social criteria approved both by Iberdrola and Vigeo (an independent party) in 
Renewable energy, Transmission, Distribution and Smartgrids.
The characteristics of the Green Bond were as follows:
Green Bond
ISIN
XS1057055060
Nominal
EUR 750 million
Maturity
October 2022
Coupon
2.50 %
 
The refinancing was executed through a liability management exercise whereby the Green Bond 
was exchanged by bonds issued in 2005, 2010 and 2011 (the “Old Bonds”), for amounts of €320.2mn, 
€277.4mn and €152.2mn, respectively. Those funds had been invested in projects in 2006, 2011 and 2012.
Iberdrola commissioned Vigeo to advise on the Green Bond framework, i.e. the definition of eligible 
projects and the setting up of the environmental and social criteria to be met, and to provide an 
independent second party opinion on the Green Bond, including an opinion both on the issuer and on the 
environmental purpose and responsible management for endorsed projects, i.e. for previous investments 
since 2005 and for future projects.
Vigeo’s conclusions, including the eligibility criteria, are described at the “Second Party Opinion”, which 
is available at www.iIberdrola.es/webibd/gc/prod/es/doc/bono_verde.pdf.

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The following charts show the funds allocation:
Funds allocation (€ mn)
Year
2006
2011
2012
Total
Renewables
320.9
170.80
86.2
577.9
Distribution
0
94.8
0
94.8
Smartgrids
0
23
54.3
77.3
Total
320.9
288.6
140.5
750.0
Investments in distribution and smartgrids
Year
Type of project
Name of the project
Location
2011
Distribution
Conexión de generación Renovable en 
Escocia
United Kingdom
2011
Distribution
Refuerzo conexión internacional en Escocia
United Kingdom
2011
Distribution
Conexión Plan Fotovoltaico Castilla - La 
Mancha
Spain
2011
Distribution-smartgrids
Proyecto STAR
Spain
2012
Distribution-smartgrids
Proyecto STAR
Spain
Investments in renewables
Year
Technology
Name of the project
Location
Installed capacity (MW)
2006
Wind onshore
Pico Collalbas
Spain
30
2006
Wind onshore
Carrascosa
Spain
38
2006
Wind onshore
Sierra Menera
Spain
40
2006
Wind onshore
Clares
Spain
32
2006
Wind onshore
Escalón
Spain
30
2006
Wind onshore
Tarayuela
Spain
30
2006
Wind onshore
Morón de Almazán
Spain
50

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Investments in renewables
Year
Technology
Name of the project
Location
Installed capacity (MW)
2006
Wind onshore
Los Campillos
Spain
34
2006
Wind onshore
Dólar I
Spain
49.5
2006
Wind onshore
Dólar III
Spain
49.5
2006
Wind onshore
Doña Benita
Spain
32
2006
Wind onshore
Ferreira II
Spain
49.5
2006
Wind onshore
Hueneja
Spain
49.5
2006
Wind onshore
Sil Ampliación 
Spain
40
2006
Wind onshore
O Vieiro
Spain
19.6
2006
Wind onshore
Luzón-Norte
Spain
38
2006
Wind onshore
Bordecorex Norte
Spain
44
2006
Wind onshore
Cerro Blanco
Spain
42
2006
Wind onshore
Grijota
Spain
5
2006
Wind onshore
Cabezuelo
Spain
30
2011
Wind onshore
Mark Hill
United Kingdom
56
2011
Wind onshore
Collados
Spain
11
2011
Wind onshore
Fuentesalada
Spain
46.4
2011
Wind onshore
Cruz de Carrutero
Spain
40
2012
Wind onshore
Cabras
Spain
22
2012
Wind onshore
Ventosa del Ducado
Spain
44
2012
Wind onshore
Layna
Spain
50
Previous elegible projects were reviewed by Vigeo through the analysis of a sample, representing around 
50% of the nominal value of the Old Bonds so exchanged and amortized together with Vigeo Rating’s 
analysis of Iberdrola’s sustainability policies and practices since 2005. Vigeo considered Iberdrola to 
have achieved a satisfactory level of assurance.

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Additionally to the disclosure of the funds allocation, Iberdrola committed to:
i.  inform about the fulfilment of the eligibility criteria in case of new investments; and
ii. report annually about the ESG impact of the invested portfolio of eligible assets. This report would be 
included as an annex in the Sustainability Report, which is subject to third party verification.
The following charts describe some of the ESG benefits obtained by the mentioned investments.
Investments in renewables
Name of the project
Capacity additions for the investment plan period (MW)
Conexión Plan Fotovoltaico Castilla - La Mancha
604
Conexión de generación Renovable en Escocia
2,167
Refuerzo conexión internacional en Escocia
6,640
Sustainability indicators for smartgrids
Proyecto Star
2011 situation
2012 situation
Installed smartmeters (no.)
154,428
449,441
Installed smartmeters (%)
1.44
4.16
Secondary Substations adapted to 
smartmetering (no.)
583
2,692
Secondary Substations adapted to 
smartmetering (%)
0.88
4.01
Sustainability indicators as per the investments in renewables financed by the Green Bond
Technology
Installed capacity (MW)
2014 output (GWH)
CO2 avoided45 (t)
Wind onshore
1,002
2,169
681,953
45  The CO2 avoided has been calculated with the Emission Factor of the country where the windfarms are located. Source: CO2 
Report, emissions from fuel combustion 2014 edition by the Energy International Agency. 2012 Factors.

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Green Bond Independent External Verification Report

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262   /  Annex
/   Sustainability Report 2014 
Annex 4
Independent External Verification of the Sustainability Report

Annex      /   263
Sustainability Report 2014     /

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