This certification, which marks a milestone in the company’s climate change effort, covers all of the group’s activities in Spain, the United Kingdom, the United States and Latin America.

• The institution is offering scholarships in Spain and the United Kingdom to contribute towards excellence in training in the energy field 
• It is also offering research grants in Spain, and grants for training on restoration at the Prado Museum 

Following the success of earlier editions, the Fundación IBERDROLA has announced a new call of its different scholarship and research grants programmes to carry out energy and environmental studies for the 2012/2013 academic year.

The Foundation has launched the following programmes: III Call Scholarships for Master’s degree studies in energy and the environment in Spain; the II Call Scholarships for postgraduate studies in energy and environment in the United Kingdom; II Call Research Grants in energy and environment; and the II Call Scholarships to fund training and research in art restoration (the latter jointly run by the Fundación IBERDROLA and the Prado National Museum).

The enrolment process for each of the four calls opens today and will remain open until 29 February, 2012. Interested parties can access conditions and application forms on the Fundación IBERDROLA website: http://www.fundacioniberdrola.org.

By offering these scholarships and grants, the Foundation wishes to contribute towards excellence in training in the energy field, with a particular focus on the development of renewable energies, environmental protection, combating climate change, and the efficiency of the energy system.

- III Call for Scholarships to complete Master’s degree studies in energy and the environment in Spain

Under the auspices of its Energy and Environment Scholarship Scheme for Master’s degree studies at Spanish universities or institutes of technology, the Fundación IBERDROLA is offering a total of 25 new grants for the 2012/2013 academic year.

Eligibility for these scholarships is limited to graduates and students in their final year of an undergraduate degree, who are in possession of Spanish, U.K. or U.S. nationality and wish to complete a Master’s degree in the area of energy and climate change.

The Fundación IBERDROLA will pay the full academic registration fee and the amount of €10,800 (divided in nine monthly payments) to each student that qualifies for these scholarships.

- II Call for Scholarships for postgraduate studies in the United Kingdom

Following the success of the first edition, the Fundación IBERDROLA will also be granting 14 new scholarships to Spanish, U.K. and U.S. students wishing to complete postgraduate studies in the United Kingdom.

The recipients should focus their study on areas linked to energy; particularly the development of renewable energies, environmental protection, climate change and energy system efficiency.

They will be able to choose from four very prestigious British institutions: Imperial College London, The University of Edinburgh, The University of Strathclyde and The University of Liverpool.

The Fundación IBERDROLA will cover the full cost of the academic registration fee and pay each recipient the sum of £1,200 per month.

- II Call for Research Grants

The Fundación IBERDROLA will be awarding up to 10 grants as part of its second call for applications in the Energy for Research scheme, which is aimed at young researchers in areas linked to energy and environmental sustainability.

In order to qualify for these grants, applicants will have to carry out their studies at research institutions or universities located in Spain. They will also require the backing of their present research teams, or that of the teams where they plan to carry out their work on a full-time basis.

Recipients will be selected on the basis of criteria such as their academic record, applicant and the research team’s experience, project’s innovation and its scientific/technical prowess, as well as project feasibility.

Each grant will be worth a maximum of €20,000 per project and will last for one year.

- II Call for Grants for Training and Research in Art Restoration, jointly awarded by the Fundación IBERDROLA and the Prado Museum

Finally, the Foundation and the Prado Museum are jointly offering a new grant for Training and Research in Art Restoration. This new grant is in addition to the two grants awarded in the first edition, which have been extended for 2012.

This initiative aims at completing the training of future experts and promoting research in the field of art restoration. Each grant is worth €15,000.

Eligibility to this grant is limited to students in possession of a Diploma or Degree in Art Restoration from an official institution, with an expertise in Painting. The future expert may receive training in three divisions of the Restoration Department at the Prado Museum.

About the Fundación IBERDROLA

The Fundación IBERDROLA, with Ignacio Galán as its Founding Trustee and Manuel Marín in the role of Chairman, focuses its activity in three main spheres of action: progress towards a sustainable energy model, cultural development in the countries where IBERDROLA operates, and cooperation towards development and solidarity.

In addition to its scholarships and research grants schemes, the Fundación IBERDROLA is also involved in various projects for the conservation of historic-artistic heritage. Some of the highlights include the Atlantic Romanesque Heritage Restoration Programme, a joint initiative with the Portuguese Ministry of Culture and the Regional Government of Castile and León which aims to restore Romanesque temples located in the vicinity of the rivers Duero and Támega; as well as the sponsorship and design of lighting for unique Spanish heritage buildings, such as the interior of the Chapel at the Monastery of Yuso (La Rioja) or the Basilica at the Royal Monastery of El Escorial (Madrid).

The Fundación IBERDROLA also carries out initiatives involving cooperation and contribution towards development, such as the Energy for Solidarity community grants scheme.

<sub>IMPORTANT INFORMATION

This release does not constitute an offer of purchase, sale or exchange, nor a request for an offer of purchase, sale or exchange of securities. The shares of Iberdrola,S.A. may not be offered or sold in the United States of America except pursuant to an effective registration statement under the Securities Act or pursuant to a valid exemption from registration.</sub>

• IBERDROLA is one of the four Spanish companies on the list drawn up by the magazine that specialises in corporate social responsibility,Corporate Knights 

IBERDROLA is the only Spanish electric utility to be included in the Global 100 Most Sustainable Corporations in the World 2012 index, presented today in Davos (Switzerland) during the World Economic Forum meeting and attended once again by company chairman, Ignacio Galán.

The company, which has been included in the ranking for the seventh consecutive year, is classified at number 55, and is one of four Spanish companies in the index, along with others like Repsol and Inditex.

This prestigious international ranking, drawn up by the specialist corporate social responsibility publication Corporate Knights, assesses various aspects of the world’s leading companies, including transparency, the sustainable use of resources, innovation capacity and criteria relating to social responsibility and corporate governance.

To select the components of the Global 100 Most Sustainable Corporations in the World 2012, companies from every sector in 22 countries that show the greatest capacity to manage environmental and social risks and opportunities in addition to the risks and opportunities facing them in the area of corporate governance, were studied closely.

For the first time, a new indicator relating to company management of human resources was used in the drawing up of the rankings.

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For further details: http://www.global100.org/

• During the meeting, IBERDROLA staff members in charge of environmental management explained the structure of the Environmental Management System developed by the company with a view to contributing towards creating value for the Group and setting it apart from its competitors

IBERDROLA hosted the fourth edition of its Environmental Forum of Experts at its corporate headquarters in Madrid. The central theme was the company’s Environmental Management System, emphasising the fact that the environment is a strategic variable in carrying out its activity.

Issues addressed in previous years include energy efficiency, climate change or biodiversity conservation. This group was set up as part of the company’s commitment towards establishing ongoing constructive dialogue with its various stakeholders, with a view to learning how they perceive its efforts in this area and their expectations in this regard.

During this meeting, IBERDROLA staff members in charge of environmental management explained the structure of the Environmental Management System developed by the company with a view to contributing towards creating value for the Group and setting it apart from its competitors.

In this regard, the company highlighted that its environmental management aims to promote a model that is economically sustainable, profitable, and based on clean energy production, biodiversity conservation, combating climate change, promoting energy efficiency and maintaining excellent relations with stakeholders.

IBERDROLA also emphasised that respect for the environment has become a crucial element in meeting the current social and economic challenges, which call for a shift towards a more sustainable energy model, among other demands.

A pioneering initiative in Spain


This fourth meeting of the IBERDROLA Environmental Forum with external experts is another step forward in the company’s effort to keep apace with environmental awareness in society and reinforce its commitment to its surroundings.

Another of the aims pursued by this project, which aims to bring current concerns to the table on an annual basis, is to meet commitments undertaken towards the external members. Each meeting includes an assessment of the progress made in previous editions.

By carrying out this initiative, which is pioneering in Spain, the company intends to boost best practices in the area of the environment, optimise management and promote the search for solutions to problems linked to the natural surroundings.

This forum organised by IBERDROLA includes the participation of managers from the following divisions: networks, generation, environment, renewables, corporate reputation and engineering.

As regards the external experts, the Environmental Forum is attended by representatives from the company’s various stakeholders, such as non-governmental organisations, academic institutions, research centres or investment analysts.

IBERDROLA’s firm commitment to using the most environmentally friendly generation technologies has enabled the company to reduce its CO2 emissions by 3.2% globally, from 251 grammes de CO2 per kWh registered in September 2010 to 243 grammes of CO2 per kWh in the same month in 2011.

The group closed the first nine months of the year with 58% of its global installed capacity free of CO2, a figure that rises to 70% in Spain.

At the end of September, 26,546MW of the company’s worldwide capacity derived from clean energy sources, of which more than 17,840MW are sited in Spain.

IBERDROLA’s efforts to head the development of green energies is evidenced by, among other things, its leadership in the wind farm market. The company, that has renewable energy capacity of almost 13,450MW, owns some of the leading installations: Whitelee (Scotland), the largest wind farm in Europe; El Andévalo (Spain), the biggest on Continental Europe; and Peñascal (in the United States), the leading facility of its type that owned by the company in the world.

The group has one of the most sustainable and balanced generation businesses in the world, and also boasts 9,725 MW of hydro power capacity, 3,373MW of nuclear capacity, 13,189MW of CCGT and 1,174MW of co-generation capacity.

The company intends to keep a mix low in CO2 emissions, and is strengthening its commitment to green energy through developing the new generation of clean energies: marine energy. IBERDROLA is developing major offshore wind farm projects, as well as projects to obtain energy from waves and currents, that add up to another 12,000MW capacity.

IBERDROLA has published its Biodiversity Report for the years 2009-2010, describing the approach taken in management and the company’s main initiatives and projects in this area, one of the pillars in its environmental strategy.

IBERDROLA has pinpointed two priority challenges in managing biodiversity, in line with its ongoing commitment to sustainability: to have a balanced portfolio of electricity sources that can meet demand while leaving the smallest possible ecological footprint and to minimise the impact of its activity on regions and countries that are renowned for the wealth of their biological diversity.

This Report is published by IBERDROLA as part of the Biodiversity Policy passed in December 2007 by the Board of Management, which is applicable in all of the countries where the Group operates.

The document reaffirms the company’s effort to ensure the environmental sustainability of its activity and secure more sustainable growth, highlighting that IBERDROLA employs various tools to manage biodiversity: Biodiversity Policy, environmental impact assessments, management systems and plans of action geared towards biodiversity.

The Group manages biodiversity on the basis of the following priority lines of action: the protection, conservation and sustainable use of the environment, the development and implementation of guidelines on biodiversity for new projects, the communication of information at in-house and external levels, the provision of training & awareness and stakeholder relations.

Some of the initiatives carried out by IBERDROLA around the world as part of its Plans of Action on Habitat Management and Biodiversity include: drawing up inventories on former construction sites to ensure renewal, minimising and monitoring emissions and waste from generation plants, developing fire risk maps for electrical supports or altering the course of power lines to protect birds and allow for the recovery of habitats and endangered species.

This published report, which may be accessed via this website draws attention to several important and innovative projects, such as the Capercaillie Conservation Programme in Spain and North Scotland, the Habitat Management Plan at Whitelee Wind Farm (Scotland), the Bat Mortality Study at Casselman Wind Farm (U.S.) and Experiments with Ladder Snakes (Rhinechis scalaris) at Electricity Grid Infrastructure belonging to IBERDROLA in Spain.

• The company is the first to offer a comprehensive solution to foster the roll-out of electric vehicles
• The group, which has an electric car sharing scheme for its Supply unit, is marking ‘Green Transport Day’ today in Scotland

IBERDROLA has decided to celebrate European Mobility Week, which gets underway today, reaffirming its commitment to the electric vehicle. The company, which remains firmly committed to pioneering green mobility, is the first to launch a comprehensive solution to foster widespread use of the electric vehicle: the IBERDROLA Green Mobility Plan.

Under this programme, the group offers customers a wide range of electric vehicles (cars, motorbikes and bikes) and the possibility to handle the financing of the purchase. The company also manages the installation of recharging stations in car parks, guaranteeing at all times the safety of the equipment, and provides the user with a tailored advisory service to meet all their needs.

In line with its commitment to the electric vehicle, the company is also involved in the pan-European Green eMotion project, a European Commission initiative to swiftly enable a mass deployment of electromobility.

IBERDROLA has also become the first Spanish company to launch a car sharing scheme under which Supply division employees can use Think City vehicles to carry out their rounds in Madrid, Bilbao, Seville, Valencia, Valladolid and Barcelona.

In addition to developing these new services, IBERDROLA is also involved in a range of pilot projects with various Spanish public bodies that have expressed an interest in this type of transport. So far the company has negotiated agreements with the regional governments of Castilla y León, Valencia, the Basque Country, Murcia, Madrid, Andalusia, Extremadura and Catalonia and is working with other administrations at the national, regional, provincial and local level.

IBERDROLA has initiated a host of important and groundbreaking initiatives including an electric vehicle rental service in Guipúzcoa. It is the first public system of its kind and will also be rolled out in other locations.

Another example of the government’s firm commitment to promoting this type of transport is the Movele Plan, which will entail the installation of 280 electric vehicle recharging stations in Madrid, Barcelona and Seville. The first recharging stations are already in use in Barcelona and Madrid.

IBERDROLA has also signed agreements with private companies involved in the development of electric mobility including a partnership with FCC which covers three main areas: the promotion of electric fleets, the installation of recharging stations and involvement in electric mobility pilot projects in towns and cities. The company also has agreements in place with the carmakers General Motors, Peugeot and Opel.

Green Transport Day in Scotland

Also, as part of European Mobility Week, ScottishPower employees are participating today in ‘Green Transport Day’, the aim of which is to encourage the company’s workforce to travel to work in a more environmentally-friendly manner.

The staff who reduce their carbon footprint the most will receive £250 from the company to spend on outdoor recreational products.

• The company is awarded the highest score for the economic dimension and has improved significantly in the environmental dimension 
• In the social dimension, IBERDROLA achieves the highest score for its stakeholder engagement 

IBERDROLA has once again been included as a member of the utilities supersector of the prestigious Dow Jones Sustainability Index (DJSI) 2011, obtaining its highest score since it joined this ranking 12 years ago.

The company reinforced its leading position after easily beating the average score for the electricity sector and achieving the same score as EDP, the company leading this index, which has become the key reference point worldwide for assessing companies’ contributions to sustainable development.

In the latest edition of the Dow Jones Sustainability Index, IBERDROLA reclaimed the top spot in the economic dimension and improved considerably in the environmental dimension thanks especially to its strategy for tackling climate change, and its biodiversity and eco-efficiency policies.

The company, which is the only utility to achieve a place in all twelve editions of this benchmark index, boasts a higher score than the sector average in all sections.

In the social dimension, IBERDROLA achieved the maximum score for its stakeholder engagement, justifying its strategy of focusing on sustainable development.

Its inclusion in the Dow Jones Sustainability Index 2011 also highlights that the company is capable of meeting the main economic, environmental and social challenges facing energy policy in Spain and the European Union.

45% of the Group’s global output was free of CO2 emissions, a figure that rises to 75% in Spain. Meanwhile, 58% of its global installed capacity was clean, while in Spain this figure was 70%.

The Report describes the tools that IBERDROLA has implemented to manage biodiversity: Biodiversity Policy, environmental impact assessments, management systems and plans of action geared towards biodiversity