Spanish multinational energy company Iberdrola has been named as the most sustainable Spanish company in the Global 100 Most Sustainable Corporations in the World index, which is compiled by Corporate Knights.
The naming was made during the World Economic Forum.
The 17th edition of the index has also ranked Iberdrola in the top 20 of the most sustainable companies in the world.
The publication highlights Iberdrola as one of the so-called “green energy majors” in a global context of a commitment to the green recovery and increasingly ambitious climate commitments
Despite the challenging impacts of COVID-19 to business operations, sustainable investments made by Iberdrola improved the company’s resilience to disruptions and helped the firm to preserve its commitment to sustainability goals.
To come up with the 100 most sustainable companies in the world, Corporate Knights analysed more than 8,000 listed companies with revenue of more than $1 billion.
Companies that generate energy from coal, hinder climate policies and cause extreme deforestation through their activities were excluded.
Some 24 indicators including revenue generated from ‘green’ areas, investment in sustainable business, carbon levels, tax payments, gender diversity on the board of directors and racial diversity were used to rank companies.
Iberdrola performed well in all the indicators.
The company has even set aside €75 billion (90.5 billion) to accelerate the energy transition through projects including renewable energy, smart grids and energy storage, in its 2020-2025 plan.
In terms of carbon levels, with CO2/kWh two thirds below the European average, an investment strategy focused on clean energy and networks will make Iberdrola a carbon neutral company in Europe in 2030, enabling it to reduce its CO2 emissions globally by 86%, to 50g/kWh, at the end of the decade (70g/kWh by the end of 2025).
The company already generates 100% of its energy with no emissions in countries including the United Kingdom, Germany and Portugal.
In terms of tax payments, Iberdrola’s tax contribution worldwide amounted to €8.156 billion ($9.8 billion) in 2019. In its Fiscal Transparency Report 2019: Our Commitment to Society, it states that 43% of its profit before tax was used to pay taxes.
In terms of its commitment to diversity and equal opportunities, Iberdrola has also been a pioneer in drawing up its first Diversity and Inclusion Report. It details the initiatives developed by the company in these areas, which are considered a strategic priority for its sustainable growth.
Iberdrola scored 72.8% points on the index.
Ranked in first position on the index is energy firm Schneider Electric, scorring 83.2% followed by Orsted with 82.7%.
American Water Works Company Inc has been ranked at number 9 with 77.1% .
Read more about the index.