Iberdrola, S.A. (IBE) Earnings Call Transcript & Summary

Hello, everyone. I would like to welcome you to this webinar about Just Transition. My name is Raquel Chamochin, ESG Investor Relations, and I will be your host today. The current context of the energy sector is very challenging, but it also offers good opportunities for Iberdrola. To reach energy independency, affordable prices and also meet the decarbonization targets, we need an acceleration of electrification with renewables. In Iberdrola, we believe that this transition to a carbon-neutral economy by 2050 will be delivered because the technology is already available. It makes sense in terms of economics, and it's also a social and environmental need. In addition to all of this, we must manage transition and social risks of this process. Let me introduce you our speakers today that are going to elaborate deeper, how Iberdrola is traveling this journey. On one hand, we have Mónica Oviedo, who is the Head of Sustainable Management and 2030 Agenda. And she's going to explain the context of the energy transition, Iberdrola track record about this process and also she is going deeper on the Citizens' innovation Platform, which is an initiative developed in alliance with universities and local bodies. Hello, Monica. On the other hand, we have Marta Martinez, who is the Head of Special Projects in Climate Change and Alliances area, and she's going to describe the contribution to socioeconomic development and biodiversity protection of renewable projects. Welcome, Marta. After my colleagues' presentations, we will move to a Q&A session. We are not taking any questions over the phone. So please, if you want to send any, use the link of the webcast that you can find on top of the screen, and we will collect them and answer them all at the end of the presentation. Also, I would like to remind you that this webinar will be available on our website, Iberdrola.com, to be watched on demand. Well, without further ado, Monica, the floor is yours.

Thank you, Raquel, and thank you all for being here to listen to this interesting concept, Just Transition. Just Transition was used for the first time in the COP21 in Paris. It was included in the preamble of the Paris Agreement, and it was said Just Transition and Decent Job. So I think this term is very relevant. And as you can see in this slide, environmental challenge is out of discussion. We have ahead in front of us, we have to decrease our emissions. We have to change the ways that we are producing energy. And that means that closing fossil facilities will have some impact in jobs. You have here some figures and numbers before the European Green Deal was signed. We have more than 200 coal power plants and -- meaning the job for more than 160,000 people working in 2030 in this sector. So these are the figures, the numbers, the environmental approach, but we see the Just Transition as an opportunity. So this closing of coal plants offers opportunity for growth for the local regions where they are settled. So that's the Just Transition concept, and that's why we are working very heavily on that. After 8 years since this Paris Agreement, the job -- the Decent Job has been embraced, has been opened. So the Just Transition concept includes more than the job creation. So in these 8 years, Just Transition has become the mechanism to join together this social challenge with the environmental climate challenge that we have in front of us. So this social driver is key and it's the mechanism that can join and that can help us to achieve the targets that we have in front of us. People and nature have to be dealt together. So we are working with the job creation. We have here some drivers, the workers. They are a very relevant part of this process. We have to involve them in the process. We have to train -- to increase the training of their skills, we have to anticipate their needs. But we also have to work with local suppliers and customers. We have to support them to -- because they have to also change their way of living. They are focused on an area that is no longer viable, economic viable. So we have to improve local consumption. We have to support these suppliers in the change, in the transformation, and we have, for sure, help customers in this transition. Communities. Communities are, as I mentioned, society and nature. So local communities are key in this process. They have to be taken into account. We have to manage directly with them. So we have to improve social innovation because there are new ways of working with them, and I will explain one initiative that we have launched regarding this social innovation that is focused on bottom-up approach, not going there with the solution from outside. We have to go there to check which have the solutions to be developed at a multilevel scheme. So that means that we have to share the benefits of the Just Transition and to minimize the risk. This is something very relevant for the Just Transition concept. So we look at as an opportunity. This is something that's a challenge, but for us, this is a huge opportunity because Iberdrola started this process more than 20 years ago. We have closed more than 17 coal and fuel oil thermal plants. It means more than 8.5 gigawatts of installed capacity that have been closed. So this closing of these fossil facilities, you have a picture here of -- one of our facilities in Asturias have been developed with accompanying plans. The closing of the facilities go together with a plan focused for the specific region. So we have specifically plans for training, plans for increasing the renewable capacity in the areas where it's possible. We want to develop local industries and we have included in this companion plans over the last of the -- 2 of them, this innovation platform that I would like to explain. Regarding employment, what we have done with this decent job area that was asked at the beginning. It was a very relevant issue for Iberdrola. So what we have done is try to offer the employees of these facilities, other jobs closely, nearby. So they have been offered that. We have the contractors of the -- of our own staff, we have relocated to other projects, other facilities here in the Spain, for example, they are working in the decommission labors. External staff has been hired for the commission. And also our own staff is also working in the decommission by now. So we have also launched training. It's very relevant to help these employees in the new scaling of this sector. So we have, for example, in the year 2021, more than 90 people were trained on smart solar solution, smart mobility or smart clima. So we are preparing another addition during this winter and reskilling opportunities. It's very important that we are doing and not only -- this is something that is done by Iberdrola alone. We are working together in partnership with public authorities and also with local actors because we are, for example, now in launching some initiatives in the reskilling program in training in photovoltaic panel installed more than 40 people in the region, and we are working together with the public authorities in order to do that. This is a very long-term process, and this is the initiative, the citizens innovation platform that we launched 3 years ago. This platform with the help of the 2 universities, the Polytechnic University of Madrid and [ Decarie Center from the vast country University. ] They have helped us to use this new methodology, this bottom up approach that I mentioned before in order to promote Just Transition in these 2 locations that you can see in the map, they are very close as Turia and Palencia in Spain, and we wanted to activate new economic growth in these regions. So we want to promote collaboration, and we want to take part here with the people of the 2 locations. It's very relevant to take into account that they would have to interconnect new projects, new initiatives in the region, taking into account people. So this result, this platform, these initiatives are tailormade, although they are very close, they are unique, and you cannot copy-paste and use the findings of one to other. It's very difficult, and you have to take into account really the local culture of the each initiative. So this is the methodology that we have been followed during these years. It's a 5-step process, but this is like circular because we are always listening mapping. So I will explain briefly what we have done because it's a multi-stakeholder platform and very innovative, and we want to explain which are the specialties of this process. We started with a listening process, making more than 400 interviews with the academic with our own employees took part in this interview sessions. So they were interviewing different actors at different levels in the region because they knew who were the main actors in the regions. We cannot go there and say, we have to go to speak with this person because they know who are the main actors in the session. So after listening, what we have is like 8 patterns. For example, these are the 8 icons that you have in the slide. We have 8 patterns of needs of different profiles of people in each region. So the needs are unique, and you have to fulfill their needs if you want to transform the region. Afterwards, after the listening, we do a mapping of different initiatives. Every initiative that they would like to have in the region or they can also started to launch, but they are in the middle of the process, for example. So it's very relevant. The third step of collective interpretation. We have to join together, sit together and check that what we understood in the 2 previous steps were okay. So it's part and they take part of the process. We have taken more than 20, 20 meetings for the co-creation because there are several initiatives, several projects, and it's important that they want to change them or they want to adapt them because we want to adapt them to the people of the region. And that means transformation. So this is a process that is ongoing process. We are working on that. And I think it's a very good idea to listen to [indiscernible]. He's the Director of the [indiscernible] Center, who wants to share with us some relevant findings of the process. Please... [Presentation]

So some platform learnings after the 2 years that I mentioned that it's an ongoing process. I would like to remark the effort, the long-term process that means working in a platform like this because it's a very long and complex process. You have seen us wearing a sanitary mask because we were in the middle of the COVID crisis, so that was another challenge also. Every process is unique and special. So I already mentioned about the not copy paste is that you cannot use no one size fits for everybody. So I think it's important to take the time to listen to the community to go beneath the surface because it's very relevant what is behind the surface in these processes. So you cannot leave anyone behind. You have to listen to everybody, and you have to respect this identity of its community. Collaboration is crucial. It's something that in this multi-stakeholder platform, it has been key. You need to establish very, very strong bonds in this process. You have seen -- you can see here in the slide, in the middle, we have like a summary of different lines of action because we have received so many initiatives, very different sector. I can tell you, for example, circular economy. We have also dealt with agro, with food, with tourists, with culture, with energy for sure. The ones that were debt were related to energy. We were working on that and studying, analyzing. And one example, this is [ Axiom. ] This is a result that we have had in Asturias because I would like to remark that thanks to this platform and only because this platform was working on the area, we have the opportunity to have one of the PV cells factory that is going to be installed in Europe in [ Langreo ] in the place that where we were closing our coal facility. It was an opportunity for Iberdrola and that's why we have taken a stake in the company and very relevant and joining with employee. Some of our employees that we are working on the dismantling process, they will be -- they have been interviewed, and they will be working in this platform, in this factory. So I think it's very relevant. But we are not happy for having this kind of super nice successful result. This is not enough. If we want to transform the region, we have to connect with other initiatives. We have, for example, another initiative focused on health -- services for health. And we have to join and work together with other initiatives with the training of the vulnerable people working there focus on PV installations, for example. So I would like to remark this idea. We have to include people and society in this process, and we have to give them a space safe for them to interact and to work together. So that would be a summary of the process.

Thank you very much, Monica, for this nice presentation. And I think now we can move, Marta, to your presentation, please.

Thank you, Raquel. So now I'd like to focus on the growth plans in renewables and how are we integrating communities and nature into these growth plans. And more specifically, I will speak about our [ Conviva ] program, which is the program that is running activities for this purpose. So at Iberdrola, we've been engaging the energy transition for the past 20 years, and that is our commitment going forward. But we have also had the commitment to make that a renewable deployment more aligned with biodiversity and local communities. So Conviva program does specifically that. It's based on this historical commitment. And it's taking it one step further, ensuring that the renewable energies generate benefits for all and it's looking for initiatives that multiply these positive impacts on a global level, since we're working towards -- for mitigation and emissions reduction also at the local level, having a contribution to socioeconomic development to biodiversity conservation. And it is also looking to generate impact internally but also externally working with others to have overall better acceptance or social acceptance of the energy transition and renewables. So it's structured around 3 areas of work. Its contribution to socioeconomic development, protection and enhancement of biodiversity and also working with others, with experts and with other stakeholders in alliances and collaborations to learn from each other and to make this progress -- process progress. So on socioeconomic development, we can look into these 5 areas. So it's first training and employment, also looking into relying on local suppliers. That taken one step further is an industrial plan that can go beyond the renewable value chain, integration of economic activities and making them compatible with our facilities and direct contribution to communities. I will then -- I will focus on later on some examples to give a face to these areas. Then on biodiversity -- well, this biodiversity is a key area. It's also another pillar and a value that's really at the foundation of our climate action plan. And also last year, November 2022, we revised these targets, launching the 2030 biodiversity plan, which has an overall target to achieve net positive impact on biodiversity by 2030. So all these activities will -- they feed into Conviva because they obviously impact the way we do things in our facilities. And more specifically, maybe we could focus on what is being done at the facility level for biodiversity integration and conservation and also richer studies which on, for instance, PV, they're quite meaningful, and there's a lot to learn there yet. On alliances, we have a wide range of collaborations, focusing on whether it's running expert dialogues and getting people together, whether it's awareness initiatives or collaborations more specifically to push or to move forward in specific areas. So just to give some examples of these things. On local socioeconomic development, we can see, for example, one of the latest is the energy community that we launched in [indiscernible] is a town in the southwest of Spain, and it's the first of its kind because it's been open for the whole town as well as its businesses. So it's been a long process, but it's been worthwhile. We also work on improving access and services in the areas, for instance, whether it's roads or also we've refurbished recently some of the villages around our facilities, which is also another economic inductor if it brings tourism to the area. Smart mobility, where we can and making that this rural towns, they can also enjoy the new sustainable mobility like with EV charging stations and so on. And we're also running other pilot projects or was experimenting, for instance, we're working now with -- on a repopulation project. It's running 3 towns where we already have renewables installed, really in very, very close collaboration with a municipality and the local council and also well, leveraging on the knowledge of experts on this field. So where we'll be getting results in the next months. On training and employment, well, obviously, we try to always staff with local resources, local people, employment opportunities, we run also specific trainings for this or -- whether it's facilities surveillance training or more specific, also reaching out to vocational schools and to -- well schools with younger people and have them come to our facilities. And we're also running with UNICEF. This is also a very important alliance. We've put together in Spain working with UNICEF, working with our suppliers and also with social entities to define a specific training program for young people in vulnerable situations. We've had already 150 young people being trained. We're taking also this program to the rural areas. We're now conducting our first program in the Southwest of Spain in [ Extremadura ] and it's very promising. So out of these young people, they've also -- most of them had also done some internships in our suppliers and ultimately, having access to the labor force or to the work -- to having a decent work there. And then industrial development, the way we like to do this is from our facilities and going outside, let's say, so -- and reaching out further out. So in our facilities, what we're trying to do, on the one hand, trying to make them more compatible with other economic activities, whether this is local grazing, which we already have this in place in 16 out of the 17 PV plants in Spain, whether it's introducing new activity, like in the case, for instance, of bee hives and producing ecological solar honey in our installations and because they actually -- they provide a very suitable condition for bee hives. There is no pesticides around. There is no chemicals, no -- there's also ring-fenced areas, so they're quite safe for that purpose, and this is working quite well. And we're also running on Agrivoltaics, still pilot projects being developed. And there's -- I think there's a way to go there, but we're having our first project [ Intalere, ] which is close to Madrid nearby here, and it's been -- it's optimizing a Vineyard facility with having a solar facility next to it, so -- and how the 2 of them can live together. The next step is working with our suppliers. So looking at the renewables value chain and trying to make the most of it at the local level. So we're working, for instance, with [ FatMax. ] FatMax is a -- they manufacture transformers, power transformers, and they're based in [indiscernible]. It's a 4,000 -- it's a town of 4,000 people. And so they are now -- they're running or they're under this expansion plan, they're trying to double their production capacity. And so whenever there's a possibility, we do try to engage local suppliers and contribute to their growth let's say, under engagement in this green economy. If we move that one step out upwards is working with industrial partners so that they can -- on their decarbonization pathway. What this means is that by having clean energy, this can be also a driver of further industrial opportunities. For instance, [ Fertiberia, ] this is the -- looking into [ Puertollano. ] So this is the first project to produce green hydrogen for fertilizer production line. Axiom Group as Monica was explaining, is also aware of coming together with other partners, help them decarbonize and help that bring more industry to the regions, to the local levels next to where these renewable energies are installed. And of course, startups, which can happen anyway in the process but also looking into new business areas, again, expanding those frontiers. So EnergyLOOP, for instance. This is a JV that's looking into opportunities in the recycling and the valorization of blades once they come to the end of their useful life. And now before we -- moving on to the biodiversity, I think it's good if we have a professor from the University of Salamanca, he's specialized in environmental economics to set the scene for the link between the energy transition and biodiversity. So we can have that video now. [Presentation]

Okay. So now we can focus on biodiversity. As was mentioned in the video, well, we do believe that renewables energies can be an ally, has to be an ally of biodiversity in order to tackle also this biodiversity crisis, which we are also facing. So -- as I mentioned, we launched the 2030 biodiversity plan with the target to be net positive on biodiversity by 2030. What this means and what this plan does is it set the framework so that we can measure our positive and negative impacts. And by applying the conservation hierarchy, which means avoiding first, reducing and restoring or regenerating, we want our facilities to be net positive across its asset life by 2030. When it comes to facilities, then we've been -- we try to integrate all these measures into them. And for instance, biodiversity enhancement and conservation, would run a consistent restoration and the reintroduction of species. In this case, this can mean -- well ring-fenced facilities. So this is a good thing because it allows animals in. It allows also the native species to flourish, and that will attract new animals, and they are really safe areas. They can act as a biodiversity heaven. And this is something we are also researching into, especially on PV plants. Looking at how is biodiversity evolving before we have the plant there and what's -- over time and then looking into what was there already. And we're really finding very promising results there. We have also reintroduced some native species in some areas, looking into applying best practices for protection, whether this is video surveillance with artificial intelligence, for birds near our wind farms and also installing specific devices to -- well, to protect them or to make sure they don't enter. Sustainability and Management and Certification. We -- this certification has been developed by UNEF. That's the Spanish solar Association, and we have 4 installations already certified. And they do cover only the environmental and biodiversity aspects but also the social aspects. And then reforestation initiatives as a complement, looking into nature-based solutions. We've launched our Trees program some years ago with the target to plant about 20 million trees by 2030. We've already accomplished over 10% of that in the past 2 years. And then I'll jump into -- here we are. The third area, which is Alliances and Collaboration with Key Stakeholders. As I said, before, I think the challenge is so big that there's no one can do it alone. So it's always collaboration and listening to each other and learning from each other is a way of also getting more impactful results and shortened time lines to get there. So just as I said, some examples here, CLEANAction is a coalition that was put together at COP26 in Glasgow. It's being led by some of the top conservationists organizations, BirdLife International, The Nature Conservancy, WWF. And it brings together also the private sector, policymakers and civil society to make that link between energy and nature. With BirdLife International. We just announced this partnership for the next 3 years, which we'll also look into common projects and trying to develop new initiatives to kind of work closer and more aligned into climate and nature and renewables. And then I'd like to spend a minute on the Conviva awards. This is very recent. We just launched them. We had a ceremony 2 weeks ago. And we wanted to look for initiatives and good cases that could be scaled and that could be replicable in other places of -- in Spain in this case, also to want to create awareness, to recognize the efforts that's behind all of these initiatives and also to start creating a network. So we did them in partnership with the Polytechnic University of Madrid, and it's really an initiative that we would like to keep on for the future since there's been a very good experience also trying to identify what others are doing. So I will wrap up with some conclusions. So Conviva program builds on Iberdrola's commitment to the energy transition, but to an energy transition that's aligned with biodiversity and with contributing to local communities. It takes that one step further, looking into initiatives that can multiply results and that can do these things better, structured around these 3 pillars that I mentioned. And overall, what we're trying to achieve is contributing globally to a better social acceptance of the energy transition and more awareness. So that's all from my side. Thank you, Raquel...

Thank you Marta. Thank you Monica for these meaningful presentations that has taken us through the diverse facets of the Just Transition and its risks and opportunities. I think that we already have received some questions. But remember, if you want to send yours, you can do it through the webcast, and we will try to answer them on. Okay. Let's go with the questions that have entered. Who proposed all those activities that you have explained, the company or stakeholders. I think Monica, this is for you for your side?

Yes. Thank you for the question. This is something that was internalized, and I think that's very relevant because the year behind our activity, we embraced the 2030 agenda. And in the year 2030, we changed and we modified our bylaws in order to include 2030 agenda within our governance system. So I think that makes us like really ready for working in these kind of actions. 2030 agenda is a challenge for all of us. And we have one of them, 7.1, the target #7 is focused on clean energy and affordable energy. So we have the purpose, the ethical commitment of working there and listening to the stakeholders, and this is a very relevant part of our stakeholder management process. We listen to the needs, to the material issues, and that's why we partner with the universities in order to launch these kinds of initiatives.

Marta, let me send you this next one. You have mentioned energy communities as one of the actions developed. Could you explain with more detail how do they work? And what are the benefits for those communities?

Sure. So I think [indiscernible] is a good example. [indiscernible] town in the southwest of Spain. It has 400 inhabitants over there. It's quite remote. So we've put together what actually they have in the town community energy, it's called [indiscernible] and that's a vehicle where all the neighbors in the town, they can join this association, and they can be part of this energy community. It has the benefits that it can bring -- it brings on energy savings on the bills. It's also open to other businesses and commercial activity in town, and it will be open for the next 5 years. So they also view it as a driver of new activity and new population in town. So this is a very good example and it's first of its kind because it reaches out to all the town there.

Okay. Coming back to Just Transition, Monica. Could you please detail disclosure of Just Transition indicators with an outcome focus such as evidence of outcomes from Iberdrola's open innovation platform or other collective work agreements or community engagement efforts? This should extend third-party contractors.

Thank you, yes. Thank you for the question. The outcome -- the input -- the impact analysis is really key. It's something very innovative, and we are working on that. So the idea is that we will be publishing by next month a report with the main findings of this innovative platform that I have been explaining. And we will deliver indicators focus on activities, number -- for example, number of employees created. For example, this Axiom factory will bring more than 100 employees. This other facility that I mentioned related to health services, another 100. So we will be measuring some indicators focus on activities, a number of initiatives, for example, interconnected, number of SDGs impacted. So that will be a set of indicators, focus on activity. Then we will have some indicators focused on results. It's very important to have a specific result. So we will work and explain the quantity and quality of collaboration opportunities that have been created. So the number, for example, of the different tools used in the process, the evolution of the platform in the media, for example. These are another example of indicator focused on results. And we will have another set of indicators focused on impact. So it's very relevant to check the type and number of prototypes that are being created, thanks to the platform that fulfills the needs of these 8 patterns of these concepts that we have to fulfill. This is, for example, Professor [indiscernible] was explaining before about the mental change, the difficulties about the mental change. So this is another outcome. The number of changing narratives in the social change. The number of change, narrative change regarding the platform because we are right there and we wanted to work there. And it's not an easy process, as I explained before. So I think it's important. It's important to have this kind of indicators that they are very relevant because this is a new process, and we have to work together and we will be -- it will be public. And I would like to share with all of you these results and co-creating and codesigning these indicators. I'm happy to include new ones if the investors community feel that we are missing some of them, for example.

Marta, do you think Agrivoltaics could play a meaningful role in Just Transition? Or would they remain a nice area.

Thank you for that question. Agrivoltaics is an area where I mentioned one of the projects we're experimenting and we're looking into it. It's not -- Agrivoltaics is a whole range of technologies and possibilities. We're running this with vineyards. We're looking into other areas or other -- whether it's tomatoes and some other harvesting there or with cattles and we're looking at different options, olive trees and so on, not only in Spain, also looking into opportunities in France, and it's promising. We'll see how it evolves and where in Agrivoltaics, there's more room for larger developments.

Okay. I think this is a good one. Will the energy transition be affordable? What about taking care of vulnerable customers? Marta, if you want to start?

Okay. Well, from a general perspective, we've been seeing how renewable energy has been becoming more competitive on how the technological revolution has been, well, providing meaningful and sustained cost reductions, and they now have lower generation costs and other conventional sources of energy. So on top of that, it's not just, let's say, the climate or environment is also -- this is economically viable and it's also -- it brings on energy security also to communities.

If I may -- I think it's very relevant and as you mentioned before, the clean and affordable energy is one target because they have to fulfill the 3 requirements of the sustainable energy. So it has to be like we have to take care of this vulnerable clients. So in Iberdrola, we launched in the year 2014 electricity for all program. It was focused on developing countries in order to give access to electricity, and it has reached more than 11 million -- 11 million people with access to energy since that year. So I think it's very relevant. But we have another line of action focused on developed countries where we have to give access to these vulnerable people. So we are coordinating all the initiatives that are being made in this field. For example, the facilities, the easy payment solutions that we are giving in countries like Spain, U.K., Portugal, United States. So we are going beyond what the law is asking for, and we are giving more detail because -- a more facility because I think it's very relevant to include this vulnerable clients in the equation. So I think it's a very good question. And for sure, it's a key priority for the company.

Okay. Monica. I think this one is yours, too. How do you bear benchmark utilities for the efforts on Just Transition? What KPIs would be the most suitable?

Okay. Regarding benchmarking, all of us are starting here are starting since the year 2015. We have been working on the Decent Job driver. And all of us are working now in the other areas. So I think that we took a step ahead the rest of the peers working and we are one example of best practice with this multi-stakeholder platform that we explained in every meeting that we have with colleagues that are working on this sphere, and they really like this kind of initiatives. So I think that it's very relevant to work together because we are all sharing our initiatives. So we work together with other utilities and energy companies from other countries. And we have been called by European Union in order to take part in this process of transformation in Europe because this coal facilities that have to close. This is something that we do not know how to transform. So we will be very happy to share our initiative in order to be shared. So we have some initiatives that are focused on the measuring, but there is no clear index for Just Transition. We -- this is a chapter for example, in CA 100, the Chapter 9. It's included there, but there is -- we do not have like a clear picture of everybody there. So we are showing the qualitative information. And this quantitative information that I mentioned before, these indicators focus on outcome results and activity will be shared, and we will be focused on that.

Marta, I think this one is yours. What lessons can we learn from past transition such as the shift away from coal to inform our approach the current Just Transition? Or -- yes or maybe Monica... Let me repeat it please. What lessons can be learned from past transition such as the shift way from coal, which Iberdrola has already done to inform our approach to the current Just Transition?

Yes. The previous approach, I think this is something that we have been closing facilities, focusing just on the job creation. So I think that the new context is much more complex because I think this is something that it will be replicated everywhere. So imagine that all coal suppliers or the suppliers linked to this coal sector will have to change. So this is a new challenge for all of us because it will be spread. So environmental and net zero is out of question. So now with this scenario, because some years ago, climate change and the Net Zero commitments were very clear. Now Iberdrola is in front of us saying we will be Net Zero before 2040 in the 3 scopes. So I think it's very relevant that all of us are working on the same path, and this is something that has to be shared by all of us. So we have some learning from this process for sure. It hasn't been easy. I mentioned at the beginning, we have to take into account that this process takes a long time. So there are a lot of initiatives that we have received that we weren't able to have investment on them, for example, because we got dismantling. So in the process of dismantling, we have to take into account that it took like 3 years to dismantle. So we wanted to do things, but we weren't able because the time-consuming process. So I think that we have some challenges in front of us and some lessons that we have learned in order to do and replicate in another processes.

I will add to this, looking into the other side of the coin, which is the growth and how do we have to move from this fossil energy sector to renewables one space -- and we are fully convinced of the opportunity in that transition. And the way this renewable energy is not just good for the environment, it's also good for the economy, it's good for people, and it has to also be good for nature and it will be good for nature. So with that commitment, that is also another way of approaching this transition and adding or contributing to materializing those opportunities, whether it's our own development or whether it's working with others, as I mentioned, some initiatives working with our suppliers, working with other industrial partners, making awareness at society level to -- well, to convey these messages and to convey these opportunities also working at training and making sure we have the skills available and so that all the pieces can fit in together, and we can have the resources needed to actually move into this transition we're now on.

Okay. And keeping a little bit on this discussion of KPI indicators. We have this one. How can we measure and track the progress of Just Transition to ensure that it is achieving its intended goals for both people and nature? So let's focus a little bit on how can we track the record....

Yes, we presented at the beginning, the 200 coal facilities that have to be closed, thanks to the green deal. So I think -- and this is only Europe. And the job challenge that we have with the direct and indirect job this standard sector. It has to really change and be transformed. So I think that a good approach could be that outcome that if we manage to have these indicators focus on environment. So we have to decrease the level of CO2 emissions. And we know that closing coal facilities, it will decrease really very rapidly. So we have some indicators focused on environment but we have to include at the same time, job creation, new opportunities, new jobs created, new prototypes that are innovative initiatives. So I think it's important to work together, and we will -- at the end, is what 2030 agenda is claiming. It's the matter of now leaving no one behind. So I think it's very relevant to work on this approach. We have a strategic plan worldwide for the year 2030. And if we try to achieve the 17 goals, we will be working on this Just Transition for sure.

Okay. And still speaking about indicators, I think people like to measure. How do you intend to measure your positive biodiversity impact? What KPIs will you be used?

Okay. So thank you for this question quite technical. As I said, on the new biodiversity plan, it does set the framework. So we've gone through a process of studying different methodologies. We deleverage and understand -- trying to understand what others were saying. So after analyzing different cases, we are implementing the biological diversity protocol and following their methodology to track and measure direct impacts across the different biodiversity area. So there will be several KPIs depending on the specific impact, and that will also allow us to then establish not only positive and negative, but also on a like-for-like basis, how to compensate those or account for those and how that balance biodiversity accountability.

Okay. Monica and Marta, I think we have covered quite well already all the topics involved in this Just Transition ecosystem. If your question has remained unanswered, please don't hesitate to contact Iberdrola Investor Relations team, and we will come back to you soon. Thank you very much for listening.