Governance and Sustainability System
The Board of Directors of Avangrid, Inc. (“Avangrid”) oversees the management of Avangrid and its business with a view to enhance the long-term value of Avangrid. Avangrid is a wholly-owned subsidiary of Iberdrola. S.A. and a member of the group of companies controlled by Iberdrola, S.A. (the “Iberdrola Group”). The Board of Directors of Avangrid has approved a governance and sustainability system to assist in exercising its responsibilities to Avangrid and its stakeholders. The governance and sustainability system is subject to periodic review and modification by the Board of Directors from time to time. Avangrid’s certificate of incorporation, by-laws, corporate governance guidelines and other policies pertaining to corporate governance and regulatory compliance, risk, and social responsibility form the framework of governance of Avangrid and its subsidiaries.
Avangrid’s governance and sustainability system is inspired by and based on a commitment to ethical principles, transparency and leadership in the application of best practices in good governance and is designed to be a working structure for principled actions, effective decision-making and appropriate monitoring of both compliance and performance. The governance and sustainability system aligns with and further develops the principles contained in the Purpose and Values of the Iberdrola Group, the Foundations for the Definition and Coordination of the Iberdrola Gorup, and the Ethical and Basic Principles of Governance and Sustainability of the Iberdrola Group approved by the Board of Directors of Iberdrola, S.A. from time to time.
Avangrid Governance and Sustainability System [pdf], adopted April 9, 2025.
The Governance and Sustainability System of Avangrid, Inc. is formally structured into three books:
Book One – Corporate Organization
The corporate organizational documents are the fundamental components of Avangrid’s Governance and Sustainability System by which the Board of Directors governs and directs the affairs of Avangrid.
The following links provide access to the full text of the organizational documents in effect:
- Avangrid Restated Articles of Incorporation
- Avangrid Amended and Restated By-Laws
- Corporate Governance Guidelines
- Audit and Compliance Committee Charter
- Foundations for the Definitions and Coordination of the Iberdrola Group
Book Two – Corporate Policies
The policies outlined in book two serve the purpose of connecting ideas and values into modes, patterns, and standards of conduct. They provide a basis for management decisions in different areas and address issues as required by their specific characteristics.
Part I. Transparency and Good Governance
The transparency and good governance policies, developed in line with leading best practices, are applicable to the company's structure, organization and its overall character and scale.
Part II. Human and Social Credit
Avangrid, Inc.'s human and social credit policies are key to its sustainable development strategy. These include respecting human rights, ensuring equal opportunities, preventing harassment, promoting talent, supporting knowledge management, encouraging professional growth, and helping employees balance work and personal life.
- Human Rights Policy
- Sustainable Human Capital Management and Anti-Harassment Policy
- Equal Opportunity Policy
- Environmental, Health and Safety Policy
Part III. Natural Capital
Avangrid, Inc.'s natural capital policies showcase its leadership in sustainable energy through renewable sources, smart grids, electrification, efficiency, emission reduction, and digital transformation, all guided by a commitment to nature.
Part IV. Sustainable Value Chain
The policies related to the sustainable value chain include the fundamental pillars for the value chain to continue creating competitive advantages in the long-term that result in a greater contribution to society.
- Competition Policy
- Purchasing Policy
- Operational Resiliency Policy
- Iberdrola Brand Policy
- Corporate Reputation Policy
- Security Policy
- Personal Data Privacy Policy
- Policy on the Responsible Development and Use of Artificial Intelligence Tools
- Innovation Policy
- Quality Policy
- Digital Technology Policy
Book Three – Internal Audit, Risks and Compliance
As an essential element of the sustainable development strategy of Avangrid, Inc., the Governance and Sustainability System contains a robust regulatory framework relating to internal audit, the management of risks and corporate control and compliance, which responds to the most advanced requirements in these areas.
Part I. Corporate Risks and Control
The General Risk Control and Management Foundations of the Iberdrola Group establish a system to identify, prevent, and mitigate risks affecting Iberdrola, S.A. and its affiliates.
Avangrid, Inc.'s Basic Internal Audit Regulations, part of its Governance and Sustainability System, define the structure and responsibilities of the Internal Audit and Risk Division.
For consolidated financial and non-financial reporting, Iberdrola, S.A. follows subsidiarity and decentralized management principles. The Audit and Risk Supervision Committee's policy ensures auditor independence through clear rules on selection and qualifications.
- General Risk Control and Management Foundations of the Iberdrola Group
- Basic Internal Audit Regulations
- Iberdrola Group Financial and Non-Financial Information Preparation Policy
Part II. Compliance
Avangrid, Inc. has a solid and innovative track record in compliance, which it develops on the basis of regulatory requirements and best practices.
