For IBERDROLA, the environmental dimension of its activities is a necessary baseline for the formulation of its Strategic Plan and the operational planning of its businesses, fostering innovation, eco-efficiency, and a progressive reduction in the environmental impacts of its activities, which are supported by three basic pillars:

1. The determination and implementation of appropriate Policies approved by the Board of Directors in order to ensure the compatibility of economic performance with environmental protection.
2. The development and implementation of appropriate management tools that contribute to reducing environmental risk, taking into account compliance with applicable law and various international commitments, as well as internal regulations.
3. Appropriate coordination led by the Corporate Innovation, Quality and Environment Division, using the environmental coordinators and specific committees for this purpose within the various Businesses, which handle risk management, operating procedures, legal/regulatory compliance, and monitoring of their environmental objectives.

The management tools available to the Group in order to advance towards these goals are the following:

• The Company’s comprehensive risk system, which is certified in accordance with the UNE-EN-ISO 9001:2000 standard, and which takes into account the principal environmental risks at the Group level. It covers all of the Company’s activities and business units, including affiliates over which the Company has effective control.
• The Environmental Management Systems, based on the UNE-EN-ISO 14001:2004 standard, which have been implemented throughout much of its organization, thereby making it possible to reduce environmental risks, improve resource management, and optimize investments and costs.
• Specific training of employees on environmental aspects helps management.
• The Group’s Environmental Management Model: in December 2008, as a result of its strong international expansion, IBERDROLA approved its new Environmental Management Model in order to create a common and homogeneous environmental framework for the entire Group that would allow for coordination and alignment of certain minimum common elements, while respecting the autonomy and individualities at the regional level.