Iberdrola S A : , a leader in Corporate Taxation Responsibility

29 November 2021

INFORMATIVE NOTE

Iberdrola Tower was the setting for a conference on taxation organised by the Association for Management Progress (APD) on Monday

Iberdrola, a leader in Corporate Taxation

Responsibility

• Heads of tax affairs from notable institutions such as the Organisation for Economic Co-operation and Development, the European Union, public administrations and Spanish multinationals attended the conference in Bilbao
• Iberdrola's model is a global benchmark, particularly in recent years when it has pioneered the inclusion of the social dividend in its governance system
• In the last three years, the company has contributed more than 23 billion euros to the public coffers, with 44 % of profits allocated to paying taxes

Iberdrola leads Corporate Tax Responsibility. This responsibility is based on compliance, transparency and a cooperative relationship based on the immediate future of good tax practices in the international context.

This was highlighted in the conference on Corporate Tax Responsibility: compliance, cooperation and corporate transparency, which was held on Monday at the Iberdrola Tower. The conference was organised by the Association for Management Progress (APD) and attended by the heads of tax affairs from important international institutions such as the OECD, the European Union, the regional tax administration, Spanish multinationals and prestigious international consultancy firms.

Armando Martínez, general manager of Iberdrola Businesses, talked about the role of Spanish multinational companies as "responsible companies, underlining the role of compliant companies that cooperate with the tax authorities and are transparent in the information they share with all their stakeholders".

The energy company's model has become a global benchmark, particularly in recent years, when its pioneering methodology included the social dividend in its governance system, as one of a set of activities that the company carries out to benefit its different stakeholders, and to measure these according to their contribution to each of the United Nations' 17 Sustainable Development Goals.

Begoña García-Rozado, global director of taxation at Iberdrola said that "Iberdrola is committed to this fiscal responsibility and prioritises responsible tax behaviour. Tax compliance, cooperation with the tax administrations and transparency as regards our fiscal information are the basis of what we do every day".

In tax matters, particularly significant milestones have been achieved in 2021, such as the G-20 agreement to support the taxation mechanism for multinationals agreed by countries and jurisdictions that form part of the so-called 'inclusive framework' of the OECD, which Spain joined last September.

This is also an excellent time for revising energy taxation. In this regard, many of these changes are imposed by the digitalisation of the economy and a strong environmental dimension in the industry, which is focused on decarbonisation and promoting renewable and clean energies, under the 'polluter pays' principle.

Iberdrola's tax contribution

29 November 2021

INFORMATIVE NOTE

Iberdrola's performance over the last 18 months clearly demonstrates its commitment through the adoption of several measures, such as advancing orders to its suppliers worth almost 20 billion euros, helping its 22,000 suppliers to keep the 400,000 jobs that depend on its projects.

Iberdrola's activity has had a very positive impact on the public coffers, to which it has contributed more than 23.5 billion euros in the last three years, representing 44 % of profits allocated to the paying taxes. In 2020 alone, it contributed almost 7.5 million euros globally throughout the group, of which 3.4 million were paid into nationally and 750,000 in the Basque Country.

About Iberdrola

Iberdrolais one of the world's principal energy companies, a leader in renewables, and is spearheading the energy transition towards a low-emission economy. The group supplies energy to around 100 million people in dozens of countries and has renewable, grid and commercial activities in Europe (Spain, the UK, Portugal, France, Germany, Italy and Greece), the US, Brazil, Mexico and Australia, while including markets including Japan, Ireland, Sweden and Poland among its platforms for development.

With a workforce of more than 40,000 and assets of over 134 billion euros, in 2020 it recorded a turnover in excess of 33 billion and net profit slightly exceeding 3.6 billion in 2020. The company helps maintain 400,000 jobs in its supply chain, with an annual procurement budget of 14 billion euros. A benchmark in the fight against climate change, it has allocated more than €120 billion over the last two decades to building a sustainable energy model, based on sound environmental, social and governance (ESG) principles.