Iberdrola United States once again included in the FTSE4Good sustainability index
- Avangrid, Iberdrola’s US subsidiary listed on the New York Stock Exchange, stands out among its peers for its ESG policies.
The market once again recognises the strong environmental, social and corporate governance (ESG) criteria of Avangrid, Iberdrola‘s US subsidiary. This is the fifth year that the NYSE-listed company has been selected for the FTSE4Good index. The index is designed to measure the performance of companies that demonstrate strong ESG practices. Avangrid is ranked ahead of its comparable utilities that are assessed by the index’s creator, FTSE Russell.
The FTSE4Good indices are used by a wide range of market participants to create and rate responsible investment funds and other financial products. The assessments of FTSE Russell, the index creator, are based on performance in areas such as corporate governance, health, safety, anti-corruption and climate change. As such, companies included in the FTSE4Good index series meet a range of environmental, social and governance criteria.
In its most recent assessment, Avangrid ranked in the top quartile of its peers in the FTSE Russell utilities subsector for ESG rating and scored highest for governance, which includes assessment of risk management, corporate governance and anti-corruption. In addition, Iberdrola’s US subsidiary scored more than 60% higher than its US peers for labour standards, human rights and community, pollution and resources.
A FORWARD-LOOKING STRATEGY
Avangrid has a forward-looking ESG strategy that focuses on managing the environment, society and its own governance and financial strength (ESG+F). This approach inspires the company’s business decisions, helps promote its sustainability commitments and creates long-term sustainable value for its shareholders.
Avangrid’s sustainability strategy is built around five key areas: reducing the company’s carbon footprint; acting consciously on social investment; creating a more sustainable and diverse supply chain; investing in its people; and operating to the highest ethical and governance standards.
In addition to being included in the FTSE4Good index series, Avangrid has won numerous accolades for its ESG efforts, including being named among the world’s most sustainable companies by S&P Global for two consecutive years, being recognised by JUST Capital in 2021 and 2022 as one of the JUST 100 companies, and being named among the world’s most ethical companies for four consecutive years.
HISTORY IN THE UNITED STATES
Iberdrola’s history in the United States is a success story. In less than two decades, the company chaired by Ignacio Galán has become one of the largest groups in the North American electricity sector, listed on the US stock exchange since 2015 with a capitalisation of around $20 billion.
Iberdrola’s US subsidiary, which aims to lead sustainable energy in the United States, is present in 25 states and manages more than 9,200 megawatts (MW) of generation capacity, of which more than 8,300 MW of renewables (mainly wind and solar photovoltaic), and more than 170,000 kilometres of power lines through eight distributors in New York, Connecticut, Maine and Massachusetts.
In addition, the Spanish company has a portfolio of high-quality renewable projects in the United States of more than 22,000 MW, which represent a stable platform for continued growth over the next few years as the country meets its decarbonisation targets.