Why is Iberdrola the World's Most Sustainable Energy Firm?
For the fifth year running, Spanish energy giant and sustainable luminary Iberdrola has secured its place on CDP's prestigious A List, cementing its position amongst a select group of companies recognised for environmental transparency and climate action.
The recognition places Iberdrola within the top 4% of more than 22,100 companies assessed globally by the international organisation, which operates one of the world's leading independent environmental disclosure systems.
CDP, a global not-for-profit organisation, evaluates companies using a rigorous methodology that examines the quality of published information, risk management and the adoption of environmental and climate best practices.
Each year, the organisation assigns ratings from A to D-, with the A List representing the highest achievable score.
The system is used by businesses, capital markets, cities, states and regions to manage their environmental impact, making CDP's rankings a highly regarded reference for investors and markets.
Iberdrola's Brazilian subsidiary Neoenergia also received dual recognition on the A List for its climate and water management.
Iberdrola's investments in renewables
Iberdrola's sustainability credentials are underpinned by substantial investment in renewable energy infrastructure.
The company has invested more than US$105bn in renewable energy, resulting in an installed capacity of 45,263MW of operational renewable capacity by the end of the first nine months of 2025.
This represents a steady expansion from the 41,246MW recorded in 2023, demonstrating a 6.5% year-on-year increase.
The company aims to achieve carbon neutrality for Scope 1 and 2 emissions by 2030 and net zero emissions across all scopes before 2040.
Its renewable portfolio spans offshore and onshore wind, solar photovoltaic, hydroelectric power and emerging technologies including green hydrogen.
Through its subsidiary ScottishPower, Iberdrola became the UK's first integrated energy company to produce 100% green electricity, with more than 3,000MW of installed wind capacity.
A pioneer of green bonds
Iberdrola has established itself as the world's largest issuer of green bonds, using this financial instrument to fund environmentally sustainable projects.
In 2014, the company became the first Spanish firm to issue a green bond, and in early 2021 it completed the largest hybrid green bond issue in history, worth US$2.1bn.
Throughout 2024 alone, Iberdrola raised US$7.19bn through various green bond issuances across different currencies and markets, including a US$689m 12-year green bond that attracted more than 140 investors.
An US$864m hybrid green bond issued in late 2024 was oversubscribed 3.75 times, drawing US$3.17bn in demand from more than 200 international investors.
"As a leading green bond issuer and renewable developer, Iberdrola supports sustainable finance to accelerate the energy transition, as well as any initiative to tackle climate change," says Ignacio Galán, Executive Chairman of the Iberdrola Group.
The proceeds from these bonds are allocated to renewable energy projects, smart grid infrastructure and energy storage systems, with all allocations validated by independent entities.
Inside Iberdrola's world-leading R&D department
Iberdrola's commitment to sustainability extends to research and development, where it ranks as the world's leading private utility company in R&D investment according to the European Commission.
In 2024, the company invested more than US$420m in innovation, with a target to exceed US$7bn in cumulative investment by 2030.
The company operates multiple innovation hubs globally, including centres in Bilbao, Qatar, Curitiba and San Agustín de Guadalix, focusing on smart grid technology, renewable energy integration and digitalisation of the power system.
Iberdrola collaborates with more than 115 partner entities and companies through its Global Smart Grids Innovation Hub in Bilbao alone, involving 200 professionals and identifying 120 projects.
Research priorities include disruptive technologies for renewable generation, energy storage solutions, smart grid development and the electrification of transport, heating and industry sectors.
The company has also established partnerships with prestigious universities including Yale, MIT, the University of Strathclyde and the Tecnológico de Monterrey through its Iberdrola Universities Programme.
Iberdrola's reputation for sustainability
Beyond CDP's A List, Iberdrola features in major international sustainability indices including Dow Jones Best-in-Class World & Europe, MSCI, Sustainalytics, ISS-ESG, EcoVadis and FTSE4Good.
The company holds its position as the leading European electricity company by market capitalisation and the second worldwide.
Its strategic commitment reflects a broader push towards what the company describes as a safer, cleaner, more resilient and competitive economy through electrification.
The CDP recognition arrives as global scrutiny of corporate environmental performance intensifies, with investors increasingly directing capital towards companies demonstrating robust climate strategies and transparent reporting practices.
