IAG

The Board is responsible for overall leadership, strategy, governance and oversight of the Company and promotion of its long-term sustainable success for the benefit of shareholders and other stakeholders. The Board considers whether the decisions it makes, and the actions it takes, will maintain or create value for shareholders and other stakeholders, including customers, employees, suppliers and wider society.

To assist the Board in carrying out its duties, a number of Board committees have been established: the Nominations Committee, the Safety, Environment and Corporate Responsibility Committee, the Audit and Compliance Committee and the Remuneration Committee. Each committee has written terms of reference setting out its authority and the duties delegated to it by the Board.

Board composition The Board comprised ten directors as at 31 December 2024, of which nine are non-executive directors. The Board is chaired by Javier Ferrán and the Chief Executive Officer is Luis Gallego.

Board responsibilities The Board's role is to provide leadership and direction for the Company and is responsible for setting the Group's strategy and ensuring the necessary financial and human resources are in place to deliver this strategy.

The Board receives regular updates on sustainability matters through the Safety, Environment and Corporate Responsibility Committee. The Committee assists the Board in overseeing the Group's safety, environment, sustainability and corporate responsibility policies and practices.

In 2024, the Board dedicated more time to visiting our frontline colleagues to gain valuable insights from those directly involved in the day-to-day operation. Board members conduct workforce engagement visits with operating companies to better understand the challenges and opportunities employees are facing.

The Board considers sustainability matters as part of its strategic oversight, including climate change initiatives, SAF mandates, and the Group's commitment to net zero by 2050. The Board received detailed briefings on the Group's sustainability roadmap and progress towards environmental targets.

Integration of sustainability-related performance in incentive schemes

Covered roles

Over 7,500 senior executives and managers across the Group have sustainability-linked annual incentives.

Sustainability KPIs tied to remuneration

IAG-specific carbon efficiency measure: Group grammes of CO2 per passenger kilometre (gCO2/pkm)

• Covers up to 10% of the annual bonus for senior executives
• This measure reflects progress towards IAG's sustainability target
• Measures the fuel efficiency of flight operations, taking account of network, aircraft mix and passenger and cargo load factors
• This KPI is selected as it drives fuel efficiency related to IAG's most material source of emissions (Scope 1 emissions from jet fuel use)
• In selected operating companies, the carbon efficiency measure is combined with other KPIs relevant to operations (e.g. waste reduction initiatives in IAG Cargo)

Type of incentive

• Short-term incentive (STI): Annual bonus
• Up to 10% of annual bonus for senior executives linked to annual carbon intensity targets

Performance period and target structure

• Annual targets linked to carbon intensity (gCO2/pkm)
• The incentives are reviewed and developed annually by the IAG Sustainability team, before being submitted as part of the IAG financial incentives which are approved by the Board of Directors
• Targets are set annually to support IAG's ambition to reduce the carbon intensity of its operations

Reference to additional information

Refer to the Remuneration Committee Report for more information.

Strategy and Business Model

Our purpose At IAG, our purpose is to connect people, businesses and countries using aviation as a force for good. We believe in the transformative power of flight: enabling personal and professional connections, supporting global trade and fostering the discovery of new places, ideas and experiences.

Our business model Our business model is centred on our purpose: to connect people, businesses and countries. We are an active parent company that invests in our airlines, with a culture of being stronger together.

As the parent company, IAG is responsible for managing and allocating capital, driving overall Group performance and setting the agenda for sustainability and innovation.

Our operating model The Group's structure maximises total returns for our shareholders through:

• Drive portfolio and financial strategy: IAG allocates capital where it can get the most sustainable returns for shareholders
• Manage performance: IAG performance-manages the operating companies
• Facilitate value capture and share best practices: The operating model brings different companies together to share ideas and expertise

Our strategic imperatives

1. Strengthening our core airline brands
2. Growing our capital-light businesses and airline partnerships
3. Operating under a robust financial and sustainability framework

Value chain We bring together leading brands in our industry to form a group that makes everyone stronger, together. Our portfolio includes:

• Airlines: British Airways (293 aircraft), Iberia (112 aircraft), Vueling (131 aircraft), Aer Lingus (58 aircraft), LEVEL (7 aircraft)
• Complementary businesses: IAG Loyalty (including BA Holidays), IAG Cargo
• Airline partnerships: Atlantic Joint Business, Qatar Joint Business, Siberian Joint Business, Peru and Ecuador Joint Business, China Joint Business, oneworld

Global leadership positions IAG has leading networks and schedules in three of the world's most attractive aviation markets: North Atlantic (#1 long-haul market from Europe), Latin America (#1 revenue-growing market from Spain), and intra-Europe (Spain #1 in domestic market in Europe).

Stakeholder Engagement

Effective engagement with all of our stakeholders is fundamental to ensuring sound corporate governance and promoting long-term, sustainable success, creating value for our shareholders and contributing to society at large.

Key stakeholders identified:

Customers (122 million passengers)

• Why important: Customer propositions and portfolio of world-class brands targeting specific demand spaces. Passenger revenues are the most important source of revenue for IAG.
• How we engage: Daily 'Customer Voice' surveys, brand surveys, claims and complaints channels, contact centres, social media, chatbots, WhatsApp 24/7
• Key topics: Punctuality and operational resilience, process optimisation, digitalisation, personalisation, loyalty programmes, service quality

Employees (74,400 employees globally)

• Why important: Colleagues are the cornerstone of customer service delivery, business transformation and strategic priorities
• How we engage: Roadshows, town halls, pulse surveys, employee-led networks, unions, IAG European Works Council, designated Board member workforce engagement visits
• Key topics: Terms and conditions, career development, operational environment, safety and wellbeing, sustainability

Suppliers (17,500 individual suppliers)

• Why important: Fundamental to meeting high customer standards and avoiding operational/financial impacts
• How we engage: Supplier relationship management, industry conferences, technical meetings, EcoVadis scorecards covering 79% of spend
• Key topics: Supplier relationship management, fuel-efficient aircraft, ESG scoring, innovation programmes

Shareholders and financial stakeholders

• Why important: Main providers of capital enabling IAG to invest and grow
• How we engage: Quarterly results briefings, Capital Markets Day, roadshows, analyst conferences, dedicated investor mailbox
• Key topics: Performance metrics, strategic initiatives, funding, capital allocation, ESG performance, long-term targets

Government and regulators

• Why important: Government policies impact many aspects of IAG's business
• How we engage: Direct engagement with policymakers, trade associations, technical studies, institutional visits
• Key topics: Sustainability and climate policy, economic impacts, ATC issues, consumer rights, safety and security

Material Impacts, Risks and Opportunities

Strategic imperatives addressing material sustainability matters:

Climate Change and Environmental Impact

• Material impact: Aviation contributes to climate change through CO2 emissions
• Strategic response: Commitment to net zero by 2050, with clear roadmap including:
  • Investment in more fuel-efficient aircraft (19 new aircraft delivered in 2024)
  • SAF commitments totaling $3.5 billion in offtake agreements
  • Target of 10% SAF by 2030
  • Achieved 2025 carbon intensity target early (78.1gCO2/pkm, -3.0% vs 2023)

Supply Chain and Operational Resilience

• Material risks: Fleet delivery delays, supply chain disruptions, ATC issues in Europe
• Strategic response: Active supplier relationship management, engagement with manufacturers, resilience planning

Employee Wellbeing and Development

• Material opportunity: Our 74,400 employees drive transformation and customer experience
• Strategic response: Group-wide transformation programme, diversity and inclusion initiatives (36% women in senior leadership), training and development programmes

Customer Experience and Digitalisation

• Material opportunity: Enhanced customer propositions drive revenue growth and loyalty
• Strategic response: Investment in digital capabilities, AI innovation, improved operational efficiency

Integration with strategy and business model: Our sustainability commitments are embedded in our strategic framework, with sustainability being one of our three strategic imperatives alongside strengthening our core and driving capital-light growth. The Board oversees sustainability matters through the Safety, Environment and Corporate Responsibility Committee.

Description of the process to identify and assess material impacts, risks and opportunities

Overview

IAG performed a double materiality assessment in 2024, working with sustainability expert firm Transcendent, to determine the most prioritised topics for the Group from an impact and financial perspective, as required by the CSRD. The double materiality assessment was conducted with reference to European Sustainability Reporting Standard (ESRS) requirements and builds on the previous materiality assessment conducted by IAG in 2021.

Under the ESRS, materiality is determined through the identification and assessment of impacts, risks and opportunities (IROs), grouped at 'topic' level.

Methodologies and assumptions

Scope and consolidation

The double materiality assessment considered the vision of all IAG's operating companies. It identified IROs relevant to specific business activities at its hub locations and in its operations around the world. It also considered the goods and services provided by IAG's value chain.

IAG considers risks to the strategic business plan over the short term (up to three years), medium term (from three to five years) and in the longer term (beyond five years). Timescales considered by this assessment are consistent with those used under the ERM risk assessment, assessing the potential impact of principal risks over the next three years against our business plan.

The IAG Sustainability team appointed a third party sustainability consultant (Transcendent) to support the identification, categorisation and consultation processes involved in the double materiality assessment. Transcendent provided an independent review of the Group's sustainability reports and led a targeted consultation exercise with relevant expert stakeholders across IAG and its operating companies to assess the materiality of each IRO.

To consolidate the findings of the double materiality assessment at Group level, the IAG Sustainability team designed and adopted a weighted scoring system, related to the share of the Group's revenue by business line, to represent the influence of its airlines and non-airline businesses in its analysis.

Representatives from all operating companies participated in this assessment, including colleagues from Sustainability, People, Government Affairs, Finance, ERM, Customer and Legal.

Four-stage process

IAG's double materiality assessment followed a four-stage process:

Stage 1: Identification of sustainability topics

IAG commissioned Transcendent to review the Group's sustainability information and information disclosed by other aviation stakeholders to identify relevant sustainability topics for the business. Information sources included IAG's 2023 NFIS, operating company sustainability reports, third-party ESG rating information and OHI and employee engagement survey results.

Transcendent prepared a comparative analysis of material topics reported by IAG and 21 competitors to validate the topics identified. Transcendent also considered third-party standards with which IAG and its operating companies comply (e.g. IATA's Environmental Assessment (IEnvA)).

The IAG Sustainability team reviewed the findings and 23 sustainability topics were defined and aligned with the CSRD topics. This list was presented to the Safety, Environment and Corporate Responsibility Board committee.

Stage 2: Identification of impacts, risks and opportunities (IROs)

Specific IROs were identified using a bottom-up approach, drawing on input from workshops held with subject matter experts within IAG and its operating companies.

A comprehensive review identified 164 preliminary IROs, comprising 82 impacts, 58 risks and 24 opportunities. These were grouped into 21 different sustainability topics across the ten topical ESG standards as defined by the ESRS.

Stage 3: Assessment of IROs

Impact materiality

Transcendent led a consultation exercise by issuing a questionnaire to more than 60 subject matter experts across IAG and its operating companies, including representatives from the Sustainability, People, Government Affairs, Finance, ERM, Customer and Legal teams.

IAG utilised a points-based scoring system that aligned to its ERM risk assessment. Each impact was given specific criteria to inform the severity analysis, and the probability of occurrence was scored as a percentage likelihood.

Impacts scored against CSRD evaluation criteria, based on the assessment of the scale (the severity of the current or future impact), scope (number of individuals or perimeter affected), irremediability (limit in the capacity to restore the affected situation), and probability of occurrence of each impact. The impact materiality scores were calculated as an average, with topics being represented by their highest impact score.

Financial materiality

This assessment was performed top-down by the IAG Finance, ERM and Sustainability teams.

Risks and opportunities were scored according to the CSRD evaluation criteria for financial materiality. The financial materiality score comprised the magnitude of financial impact (through changes to revenue, capital expenditure or operating expenditure) and the probability of occurrence, using the scoring system provided for the impact materiality assessment, which aligned to IAG's ERM risk assessment.

The risk and opportunity materiality scores were calculated as an average, with topics being represented by their highest impact score.

For IROs not currently covered by IAG's ERM risk assessment, and opportunities (which require a quantification of the benefit of action), a subjective assessment was made using available financial information.

Stage 4: Determination and communication of material topics

A central group of IAG experts representing the IAG Finance, Risk and Sustainability teams, including the Chief Financial and Sustainability Officer, evaluated the results of the double materiality assessment.

This group selected 'critical' as the applicable threshold for material issues under this assessment as it aligns to IAG's classification of 'critical' in IAG's ERM risk assessment definitions. This meant any IROs, and their relevant CSRD topic which scored as 'critical' based on impact materiality, financial materiality or both, would be reported in this statement.

The final results of the double materiality assessment, including the threshold set, was approved by the IAG Sustainability, Environment and Corporate Responsibility Committee and Audit and Compliance Committee in November 2024. IAG met with its European Works Council on 27 November 2024 to present how this double materiality assessment was conducted and the material topics identified.

Inputs to the assessment

Inputs to the double materiality assessment included:

Sector benchmarks and peer review:

• Comparative analysis of material topics reported by IAG and 21 competitors
• Third-party standards with which IAG and its operating companies comply (e.g. IATA's Environmental Assessment (IEnvA))

ESRS guidance:

• European Sustainability Reporting Standard (ESRS) requirements
• CSRD evaluation criteria

Internal documentation:

• IAG's 2023 Non-Financial Information Statement
• Operating company sustainability reports
• OHI surveys for employees
• Customer satisfaction surveys
• TCFD assessment
• ERM risk assessment
• IAG Climate Disclosure Project submission
• 2023 Annual Report and Accounts
• IATA IEnvA submissions

External consultants:

• Transcendent (third party sustainability consultant) supported identification, categorisation and consultation processes
• Provided independent review of the Group's sustainability reports
• Led targeted consultation exercise with relevant expert stakeholders

Internal experts:

• More than 60 subject matter experts across IAG and its operating companies participated via questionnaire
• Representatives from Sustainability, People, Government Affairs, Finance, ERM, Customer and Legal teams
• IAG Sustainability Network (ISN) comprising more than 60 sustainability representatives across the Group
• Central group of IAG experts representing Finance, Risk and Sustainability teams, including the Chief Financial and Sustainability Officer

External literature:

• Academic literature investigating impacts of aviation operators on the environment (for environmental impacts identification)

Stakeholder consultation

IAG considered the interests and views of the following stakeholder groups:

Customers

• Commercial experts from across operating companies
• Customer satisfaction reviews
• Daily 'Customer Voice' survey sent to customers who have recently flown
• Contact centres, social media, feedback from customer-facing employees
• Brand surveys
• Claims and complaints monitoring

Employees

• OHI survey conducted in each of the operating companies and platform businesses every six months
• Company-specific engagement surveys
• Employee-led network groups and communities
• Local employee representatives and unions
• IAG's European Works Council (EWC)
• Designated IAG Board members conduct workforce engagement visits

Suppliers

• Procurement experts from operating companies
• Insights from EcoVadis scorecards
• Supplier Engagement Programme
• Engagement with aircraft and engine manufacturers

Shareholders, lenders and other financial stakeholders (report users)

• ESG ratings and feedback from investor conference events and mailbox
• Equity, credit and ESG research analysts
• Annual General Meeting and quarterly results briefings
• Capital Markets Days
• Investor conferences and roadshows

Environment (silent stakeholder)

• Sustainability experts across the Group's operating companies
• Scientific sources
• TCFD assessment
• ERM risk assessment
• IAG Climate Disclosure Project submission
• External academic literature

Public administration (government and regulators)

• IAG Legal and Compliance team
• Government Affairs team

Society

• OHI surveys for employees
• Customer satisfaction surveys
• Review of corporate community contributions
• Partnerships with charitable organisations

Scoring criteria

Impact materiality scoring criteria:

• Scale: The severity of the current or future impact
• Scope: Number of individuals or perimeter affected
• Irremediability: Limit in the capacity to restore the affected situation
• Probability of occurrence: Scored as a percentage likelihood

Impact materiality scores were calculated as an average, with topics being represented by their highest impact score.

Financial materiality scoring criteria:

• Magnitude of financial impact: Through changes to revenue, capital expenditure or operating expenditure
• Probability of occurrence: Using the scoring system aligned to IAG's ERM risk assessment

Risk and opportunity materiality scores were calculated as an average, with topics being represented by their highest impact score.

Threshold for materiality

The threshold selected for material issues was 'critical', which aligns to IAG's classification of 'critical' in IAG's ERM risk assessment definitions. Any IROs, and their relevant CSRD topic which scored as 'critical' based on impact materiality, financial materiality or both, would be reported in the Sustainability statement.

Frequency and review

IAG intends to review the findings of this double materiality assessment annually in line with CSRD reporting requirements.

The double materiality assessment was conducted in 2024 and builds on the previous materiality assessment conducted by IAG in 2021.

Use of value chain mapping

The assessment considered IAG's value chain, both upstream and downstream:

• The double materiality assessment identified IROs relevant to specific business activities and considered the goods and services provided by IAG's value chain
• Impacts were assessed across own operations, upstream (suppliers), and downstream (customers) locations in the value chain
• The assessment considered impacts of the business on people or the environment related to the Group's own processes, those of its value chain (upstream and downstream), its products and services and its commercial relations

Results

Five of the ten topical ESG standards as defined by the ESRS have been identified as material:

1. E1. Environment - Climate change and emissions management
2. S1. Own workforce - Equity, diversity and inclusion; Remuneration and working conditions; Employee attraction, retention and engagement; Employee health and safety
3. S2. Workers in the value chain - Responsible supply chain
4. S4. Consumers and end users - Customer experience
5. G1. Business conduct - Corporate governance; Ethical business and regulatory compliance; Modern slavery and human trafficking

A total of 164 preliminary IROs were identified, comprising 82 impacts, 58 risks and 24 opportunities, grouped into 21 different sustainability topics.

Transition plan for climate change mitigation

Scope of the plan

IAG's transition plan applies to its direct operations (Scope 1), indirect emissions from purchased electricity (Scope 2), and supply chain emissions (Scope 3). The plan covers all IAG operating companies (British Airways, Iberia, Vueling, Aer Lingus, and LEVEL) operating across 91 countries.

Target year(s) for net zero / carbon neutral

• Net zero by 2050: IAG committed to net zero emissions by 2050, becoming the first airline group globally to make this commitment.
• Carbon neutral: Not explicitly stated as distinct from net zero.

Scope 1, 2, 3 reduction milestones with baseline years

Baseline year: 2019

Scope 1 targets:

• 2025: 12% reduction in carbon intensity to 80.0gCO2/pkm (achieved in 2024 with 78.1gCO2/pkm)
• 2030: 20% reduction in net Scope 1 emissions to 21.6 million tonnes (equivalent to gross emissions of 24.8 million tonnes); 27% reduction in gross carbon intensity to 70gCO2/pkm
• 2035: 39% reduction in gross carbon intensity
• 2050: Net zero emissions; 83% reduction in gross carbon intensity to 8.4 million tonnes

Scope 2 targets:

• 2050: Net zero Scope 2 emissions (no near-term target set as Scope 2 represents less than 1% of total emissions)

Scope 3 targets:

• 2030: 20% reduction in net Scope 3 emissions to 8.7 million tonnes
• 2050: Net zero Scope 3 emissions

Alignment with 1.5°C / SBTi validation status

• IAG's net zero by 2050 target has been independently assessed by the Transition Pathway Initiative (TPI) as aligned to the 1.5°C ambition of the Paris Agreement
• The near-term 20% net emissions reduction target by 2030 has been assessed as well below 2°C
• SBTi status: IAG is engaging with the Science Based Targets initiative (SBTi) and International Organization for Standardization (ISO) to build understanding of aviation industry pathways to net zero
• Under TPI's new beta methodology, IAG has been assessed as having the highest level of management quality in 2024

Key levers / decarbonization pillars

IAG's Flightpath net zero strategy includes the following key levers:

Energy efficiency and fleet modernization:

• Fleet retirement: 62 older aircraft retired in 2024
• 19 new aircraft introduced in 2024
• 171 new fuel-efficient aircraft committed for delivery between 2025-2029
• Key partnerships: ZeroAvia (hydrogen aircraft), I6 (fuel management software), NAVflight services (flight planning)

Sustainable Aviation Fuels:

• 2024 achievement: >162,000 tonnes SAF used (203% increase vs 2023), saving >469,000tCO2
• Target: 10% SAF by 2030, 70% SAF by 2050
• Key producers: LanzaJet, Twelve, Infinium, BP, Neste, Phillips 66, Repsol, and others

Operational efficiency:

• Carbon Efficiency Working Group coordinates fuel efficiency initiatives
• Single-engine taxiing, delayed engine start-up, efficient flight planning
• Ground vehicle transitions to low-emission alternatives (>90% at British Airways Heathrow)

Supply chain:

• Supplier engagement programme launched in 2024
• 79% of suppliers by spend submitted ESG scorecards
• Sustainability contract clause embedded
• Comprehensive Scope 3 measurement tool developed with Watershed

Carbon removals:

• Partnership with CUR8, Standard Chartered, and UNDO for 33,000 tonnes of carbon removal credits
• Total £9 million purchase of carbon removals in 2024
• Technology partners: Heirloom (carbon capture), CUR8 (carbon removal platform)

CapEx / investment commitments

• €12.6 billion between 2025-2029 for 171 new efficient aircraft
• >$3.5 billion total expenditure including future commitments for SAF offtake (based on assumed jet fuel price of $800 per metric tonne and contracted margins)
• SAF commitments secure more than one-third of volume required to meet 10% SAF by 2030 target

Locked-in emissions and stranded asset analysis

IAG considers the typical timescales for aircraft operation (approximately 20+ years) as representing 'locked-in' emissions attributed to flying activity with these assets. The roadmap assumes:

• Zero-emission aircraft will enter the fleet from 2040, based on current assumptions made by aircraft manufacturers
• 5% emissions saving from airspace modernisation by 2050
• Introduction of hydrogen aircraft from 2040

No impairment has arisen in the current or prior year as a result of the Group's decarbonisation plans, as all aircraft in the fleet and those due to be delivered have the capability to utilise SAF without impediment.

Use of carbon credits / removals

IAG is committed to only using carbon removals to mitigate residual emissions from operations by 2050.

Carbon removals:

• Expected annual use: approximately 2MT by 2030
• Total expected use: approximately 100MT between 2022-2050
• Conditional on clear, globally agreed verification and quality standards and appropriate policy support (e.g. inclusion in ETS schemes)

Market-based measures:

• Participation in UK Emissions Trading Scheme, EU ETS, Swiss ETS
• CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) obligations
• IAG expects to use carbon removals for an increasing share of CORSIA obligations between 2025-2035
• Less than 10% of emissions reductions between 2019 and 2050 are expected to come from offsets
• Customer offerings: British Airways offers carbon removals to customers via partnership with CHOOOSE

Roadmap updates

IAG regularly reviews its transition plan. 2024 updates focused on:

• Delivering SAF against mandated requirements in the UK and EU in the short term
• Increasing investment in carbon removals before 2030
• Maintaining assumption of 5% emissions saving from airspace modernisation by 2050
• Maintaining assumption of hydrogen aircraft introduction from 2040

Governance and integration

• Sustainability aspects included in three-year business planning for operating companies
• Roadmap costs included in one-year and three-year business planning and to 2030 within sustainability risk assessments
• Over 7,500 senior executives and managers have 10% of their annual incentive linked to annual carbon intensity targets
• Board oversight via Safety, Environment and Corporate Responsibility (SECR) Committee
• Quarterly KPI monitoring through IAG Sustainability Network (ISN)

Scenario analysis

IAG conducts annual TCFD-aligned scenario analysis examining:

• Temperature scenarios: 1.5°C (orderly and disorderly), 2°C, 3°C, and 5°C for physical risks
• Timeframes: 2030 and 2050
• Resilience assessment: IAG remains resilient to most material climate-related impacts (industry-wide policy shifts), which have been quantified and embedded into financial and strategic planning

Policy engagement

IAG holds leadership roles in multiple trade associations and actively advocates for:

• Fair, global carbon pricing for the aviation sector
• Revenue certainty mechanism (RCM) to support SAF production
• EU ETS SAF allowances programme
• Inclusion of greenhouse gas removals in carbon markets
• Strengthening of CORSIA
• Support for 1.5°C ambition of Paris Agreement

IAG continues to work with SAF producers to secure our needs and, in 2024, we signed e-SAF agreements with US producers Twelve and Infinium. In Spain, we reached an agreement with energy company Repsol for the largest SAF purchase in Spain. The sector is focused on its sustainability commitments and is investing to ensure we are compliant with existing regulation and to prepare for SAF mandates coming into force in Europe and the UK in 2025.

In 2024, we continued to make progress in line with our sustainability roadmap. We took delivery of 19 new aircraft as part of our ongoing investment in our fleet, and Iberia was the global launch customer of the Airbus A321XLR. As well as our investments in more fuel-efficient aircraft, we are investing in lower-carbon fuels and technologies, prioritising sustainable aviation fuel (SAF). As at the end of the year, we have committed $3.5 billion in total in SAF offtake agreements which gets us closer to our target of 10% SAF by 2030.

We have a clear plan to achieve our targets. We achieved our 2025 carbon intensity target of 80.0g/pkm a year early. In 2024, our carbon intensity was 78.1gCO2/pkm, down 3.0% versus 2023. We target 10% SAF by 2030 and we are committed to net zero by 2050.

Energy consumption and mix

IAG's material energy consumption is from the use of jet fuel, which accounts for more than 99% of Scope 1 emissions.

Energy consumption and mix for 2024

Note: Values reported in millions of MWh. The energy consumption table excludes the jet fuel used by franchisees, cargo carried on other airlines, and engine testing. Fuel energy use is based on volumes of jet fuel, diesel, petrol, natural gas and gas oil, multiplied by the latest available UK Government conversion factors. UK factors are used across the Group as these are considered the most robust available.

Energy intensity per net revenue

Scope: The scope covers all IAG operating companies. Calculations use 2024 UK Government conversion factors aligned with IPCC Fourth Assessment Report. For Scope 2 emissions, market-based factors are used for Spanish locations where reliable data is available; otherwise, IEA national electricity emissions factors are applied.

Gross Scopes 1, 2, 3 and Total GHG emissions

Scope 1: Direct GHG emissions

IAG reports gross Scope 1 emissions from fuel combustion in aircraft operations. The Group also separately discloses biogenic CO₂ emissions from Sustainable Aviation Fuel (SAF).

Methodology notes:

• Scope 1 emissions are calculated from jet fuel consumption across all IAG airline operations (British Airways, Iberia, Aer Lingus, Vueling, LEVEL).
• Carbon intensity is measured as grammes of CO₂ per passenger kilometre (gCO₂/pkm).
• SAF lifecycle emissions savings are reported separately; SAF usage in 2024 exceeded 162,000 tonnes, resulting in a reduction of over 469,000 tonnes CO₂ on a lifecycle basis.
• The 2019 baseline reflects pre-pandemic operational levels and serves as the reference year for IAG's climate targets.

Scope 1 sub-breakdown: The report does not provide detailed disaggregation by stationary combustion, mobile combustion, process emissions, or fugitive emissions. Substantially all Scope 1 emissions arise from mobile combustion (aircraft jet fuel).

Scope 2: Indirect GHG emissions from purchased energy

IAG does not disclose Scope 2 emissions (location-based or market-based) in the excerpts provided. The sustainability statement references operational efficiency and facility upgrades but does not quantify purchased electricity or heat-related emissions.

Scope 3: Indirect GHG emissions from the value chain

IAG has committed to a 20% reduction in Scope 3 emissions by 2030 (versus 2019). The report references Scope 3 measurement activities, including a Watershed partnership for emission measurement and SEDEX membership for on-site audits, and mentions engagement with suppliers to share granular carbon data. However, no quantified Scope 3 emissions data by GHG Protocol category are disclosed in the provided excerpts.

The report notes:

• IAG Procurement's focus on ESG scoring and supplier sustainability ratings (EcoVadis scorecards covering 79% of total spend).
• Reference to "supply chain Scope 3 emissions from suppliers' manufacturing activities" as a key topic.
• Ongoing work to map and reduce supply chain emissions, but no breakdown by categories 1–15.

Total GHG emissions and intensity

Notes:

• The total GHG emissions figure combining all three scopes is not disclosed. Only Scope 1 is quantified.
• IAG uses carbon intensity (gCO₂ per passenger kilometre) as its primary performance metric, achieving 78.1 gCO₂/pkm in 2024, ahead of its 2025 target of 80.0 gCO₂/pkm.
• The 2024 carbon intensity represents a 3.0% improvement versus 2023 and a 3.7% improvement versus prior year on a per-passenger-kilometre basis.

Regulated emissions (EU ETS and UK ETS)

IAG participates in the EU Emissions Trading Scheme (ETS) and the UK ETS. The cost of compliance in 2024 was €301 million, up from €212 million in 2023, reflecting higher capacity flown, market prices, and the reduction in free allowances.

Methodology notes:

• ETS costs are reported as part of "fuel costs and emissions charges" in the income statement.
• IAG also participates in CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) for international flights.
• The report references SAF allowances under the EU ETS SAF programme, which rewards SAF utilisation by enabling airlines to claim emission allowances aligned to the cost difference between SAF and jet kerosene.

Biogenic CO₂ emissions

Biogenic CO₂ emissions from SAF are reported separately from Scope 1 fossil-fuel emissions, in line with GHG Protocol guidance.

Methodology:

• SAF lifecycle emissions reductions are calculated based on certified pathways (e.g. HEFA, e-SAF) and feedstock sustainability criteria.
• IAG requires SAF to comply with strict certification schemes (e.g. ISCC, RSB) ensuring feedstocks come from sustainable sources and that production processes conserve water and energy.

GHG intensity metric

IAG reports GHG intensity per revenue and per passenger kilometre:

Note: The emissions-per-revenue metric is not explicitly disclosed but can be approximated from Scope 1 emissions and total revenue. IAG's primary intensity metric is gCO₂ per passenger kilometre, which decreased 2.6% year-on-year and is used to track progress against the 2025 and 2030 targets.

Anticipated financial effects from material physical and transition risks and potential climate-related opportunities

Phase-in Exemption

IAG is using the phase-in exemption for ESRS E1-9. According to the appendix table on page 314:

Additional phase-in provisions noted in the appendix table on page 318:

The company states in the appendix: "Please refer to the appendix to this statement" regarding phase-in provisions.

Each operating company is focused on building and embedding the culture needed to be competitive, achieve our transformation agenda and provide a work environment in which colleagues can thrive. We believe diversity is key to innovation and the future growth and success of the Group, and we celebrate and benefit from the richness of backgrounds, experiences, cultures and ideas that we have. Our aim is that all colleagues feel their uniqueness is recognised and valued.

Each operating company and business has formal and informal channels in place to engage with employees, listen and act on employee feedback. These channels include:

• Roadshows, online employee forums, town hall meetings, internal social networks, newsletters, workshops, pulse surveys, social media, engagement groups, idea hubs
• Employee-led network and resource groups and communities, which provide valuable channels for feedback on plans and initiatives
• Local employee representatives and unions, which offer formal and informal channels for raising issues and concerns
• A Group-wide OHI survey, which is conducted every six months, plus operating-company specific engagement surveys
• The IAG European Works Council (EWC), which facilitates information sharing between employees and management on transnational European matters
• Designated IAG Board members who conduct workforce engagement visits with operating companies

Over the past year, the operating companies have implemented several initiatives as a result of engagement with our employees:

• British Airways has improved colleague experience through improved parental leave and time-off policies, workspace refurbishments, and improvements to staff travel offerings
• Aer Lingus enhanced internal communications with employee Idea Hub and 'Coffee n' Chats' with executive team, and expanded wellbeing offerings
• British Airways introduced better crew IT and communication systems and rolled out 'Mobile Maintenance' iPads to maintenance engineers
• Vueling introduced 'Make it Better' platform for employee ideas and collaboration
• IAG Cargo implemented regular communications and training programmes including 'Leading the Way' programme
• Iberia improved facilities including crew lounges, back offices, and maintenance areas
• IAG Loyalty launched 'Develop You' strategy and 'Recognise You' peer-to-peer recognition

We continue our focus on building and maintaining a diverse workforce. At the end of 2024, 36% of our senior leadership roles are held by women, so we recognise there is still work to do, and we remain committed to meeting our ambition of 40% by 2025.

Characteristics of the undertaking's employees

Total headcount and FTE

As at 31 December 2024, IAG had 74,378 employees (referred to as 74,400 employees in narrative text).

Average headcount for 2024 was 73,498, up 3,736 or 5.4% versus 2023 (average headcount 2023: 69,762).

Headcount by geographical location (31 December 2024)

European countries breakdown:

• United Kingdom: 39,318
• Spain: 24,030
• Ireland: 5,323
• Rest of Europe: 1,360

Headcount by function (31 December 2024)

Percentage breakdown by role:

• Airport operations: 33%
• Cabin crew: 23%
• Corporate: 10%
• Maintenance: 12%
• Pilots: 22%

Headcount by gender (31 December 2024)

Based on the Board composition disclosure, the Group has more than 40% women representation at Board level (6 female, 5 male directors). However, workforce-level gender breakdown is not explicitly disclosed in the extracted sections.

Headcount by employment contract type

Not disclosed in the extracted sections.

Headcount by employment type (full-time/part-time)

Not disclosed in the extracted sections.

New hires

British Airways: Welcomed more than 5,000 new colleagues in 2024.

Iberia: Throughout the year, more than 100 pilots, 450 cabin crew members and 180 maintenance colleagues joined Iberia.

Group-level total new hires: Recruited over (specific number not provided in extracted text).

Employee turnover

Not disclosed in the extracted sections.

Collective bargaining coverage

85% of employees are covered by collective bargaining agreements.

Additional context

• The Group uses average headcount for compensation cost metrics
• Headcount increased in 2024 to support business growth and operations
• Agreements were reached with substantially all employee groups by end of 2024

Our operating companies actively engage with trade unions to secure balanced agreements, ensuring fair and competitive remuneration. Collective bargaining arrangements are in place for circa 85% of the workforce across the Group.

Diversity metrics

Total number and distribution of senior leaders by gender

Definition: Senior leaders defined as IAG grades 0, 1 and 2 or equivalent across the Group, including senior executives (direct reports to IAG's CEO). Numbers as at 31 December 2024.

Total number and distribution of IAG Management Committee and direct reports by gender

Definition: IAG Management Committee members and their direct reports. All numbers as at 31 December 2024.

Total number and distribution of employees by age

¹Six employees are omitted due to missing date-of-birth information.

Definition: Share of headcount across the Group by age (under 30, 30-50 and over 50) on 31 December 2024.

Total number and distribution of employees by gender

Definition: Share of headcount across the Group by gender on 31 December 2024. Due to legal constraints in some of the countries where we operate, IAG is unable to collect and report data on other gender identities.

Commentary

Senior leader numbers at IAG grades 0-2 have remained stable in 2024, with balanced growth rates for both men and women. IAG remains committed to gender diversity ambition of 40% women in senior roles by 2025, having seen an increase of 6% since 2020.

In 2024, there was a slight reduction in representation of women in the IAG Management Committee and their direct reports. The numbers reflect diversity at a specific point in time, and each year approximately 20% change in composition occurs through promotions, role changes and new hires.

The workforce distribution by age group remained broadly consistent in 2024. There was a small increase in under 30 and over 50 populations, largely driven by restructuring of ground handling in Spain.

Adequate wages

IAG states it is committed to ensuring all employees receive an adequate wage in line with applicable regulations. Over 85% of colleagues are covered by collective agreements that ensure pay rates are competitive and sustainable.

Remuneration includes both fixed and variable elements, reflecting dynamic and varied working patterns. Colleagues are also eligible for a range of benefits, making calculations of remuneration complex.

Operating companies have controls in place to consolidate and review all elements of remuneration in the context of Minimum Wage legislation and take appropriate action as necessary.

Benchmark: Minimum Wage legislation (no living wage benchmark disclosed)

Coverage: Over 85% of colleagues covered by collective agreements

Methodology: Operating companies consolidate and review all remuneration elements in the context of Minimum Wage legislation. No living wage calculation methodology disclosed.

As part of British Airways' continued commitment to providing a seamless travel experience for customers with visible and non-visible disabilities, the airline launched its new Customer Access Advisory Panel. The panel is committed to identifying ways to improve the end-to-end customer experience for travellers who may require additional assistance.

We invested in the skills development of 82,796 employees (including temporary workers), with a total of 3,646,185 training hours and an average of 57.5 hours per employee.

We support early-stage careers through graduate and apprenticeship programmes, and our pilot training academies in Aer Lingus, British Airways and Iberia are offering funded training schemes to a new cohort each year. As part of British Airways' commitment to inspiring future talent and ensuring equal opportunities, the airline is expanding its Speedbird Pilot Academy. It will now fully fund training for up to 200 aspiring pilots annually, up from 60 places in 2023.

Health and safety metrics

Coverage of health and safety management system

All employees across IAG are covered by comprehensive health and safety management systems, ensuring their wellbeing and compliance with legal requirements and recognised standards.

Workplace fatalities

There was one recorded fatality in 2024, related to a road traffic incident in Spain during a commute to work. Under Spanish law, accidents that occur while travelling to or from the workplace are considered workplace accidents.

Lost time injuries (LTI)

By employee category:

By gender:

Occupational illness

Absenteeism

Methodology notes

In 2024, there were 8,196 workplace accidents (a rate of 77 workplace accidents per one million hours worked). This includes 2,113 workplace accidents that resulted in lost working time.

The LTI frequency rate is calculated as ((Number of LTIs)/(Hours worked)) x 200,000. The LTI severity rate measures working days lost per number of LTIs. The absenteeism rate is calculated as (Number of hours absent)/(Number of hours scheduled). For the absenteeism metric, only unplanned or unauthorised absences are included.

Compensation metrics

Pay gap

Gender pay gap (median): 5.1% (2024), 8.4% (2023), 13.0% (2022)

Gender pay gap (mean): 26.6% (2024), 32.6% (2023)

IAG reports both median and mean gender pay gaps. The following table shows average remuneration by gender, age and job category:

By age group:

Commentary: In 2024, as the Group continued to expand its workforce, particularly in customer service, airport supervisory and other corporate roles, the composition of the workforce evolved, resulting in changes to the median pay point for both men and women compared to 2023. The result is that at Group level, there has been a year-on-year reduction in the median salary gap from 8.4% in 2023 to 5.1% in 2024, and from 32.6% to 26.6% for the mean salary gap. Pilot pay remains the most significant driver of the gender pay gap, reflecting both the lower numbers of female pilots and the impact of seniority. The gender pay gap in the 'other management' category is driven by the inclusion of pilots at the captain seniority level within that group.

Remuneration ratio

Annual total remuneration ratio (CEO to median employee): 92:1 (2024), based on CEO single figure of €5,512,000 and median employee pay.

The following table shows IAG's CEO pay ratio for the UK:

UK employee remuneration used for calculation:

Methodology

Pay gap calculation: Remuneration data is presented at the median for gender, age and seniority population groupings. The reported components of remuneration include basic salary, shift pay, allowances, employer pension contributions, taxable benefits and annual incentives. All values are calculated on an hourly rate and shown on an annualised basis, on a full-time-equivalent basis, and only for time worked. The reported salary gap represents the difference between men's and women's median remuneration, expressed as a percentage of men's remuneration.

Remuneration ratio: The annual total remuneration ratio compares the highest-paid individual's total annual remuneration to the median total annual remuneration for all employees (excluding the highest-paid individual). The CSRD methodology figure (92:1) differs from the UK methodology figure (74:1 median) shown in the Remuneration Report. The ratio continues to be calculated on the most statistically accurate basis, Option A. UK employee pay is based on the payroll records of 42,066 employees who were in the Group for the whole of or some of 2024. Earnings data were collected directly from UK payroll on a month-by-month basis, with variable incentive elements modelled on an employee-by-employee basis.

Scope: Senior executives includes Group Management Committee members, operating company management committee members, directors and other senior/executive positions. Other management includes all other management roles, including pilots at the captain seniority level. All other employees includes all other roles across the group, including the majority of pilots and cabin crew.

Incidents, complaints and severe human rights impacts

Discrimination and human rights

At IAG, we are committed to promoting a discrimination-free work environment where all individuals are treated with dignity and respect, regardless of age, sex, disability, race, religion/belief, marital/civil partnership status, pregnancy and maternity, sexual orientation, gender or any other protected characteristics. Our core principles of fair and equal treatment, non-discrimination and respect for human rights are central to the IAG Code of Conduct, which applies to all employees and directors across the Group.

We closely monitor incidents and take appropriate action.

2024 Metrics

Discrimination complaints and incidents:

• 97 complaints of discrimination filed through formal channels for people employed across the Group, that are either under investigation or found to be unsubstantiated
• 23 incidents of discrimination that were found to be substantiated

Where applicable, we take appropriate action to address issues identified, which may include disciplinary action.

Fines, penalties and compensation:

• £45,000 paid in total fines, penalties, and/or compensation related to incidents of discrimination in 2024
• This amount pertains to a settlement for an incident that occurred in a previous reporting year
• No fines, penalties, or compensation costs were incurred for incidents that took place in 2024

Severe human rights impacts:

• No reported incidents of severe human rights breaches connected with IAG's own workforce
• No associated fines, penalties or compensation in 2024

IAG Procurement provides a supplier management framework to manage individual suppliers by ensuring consistent and compliant governance throughout the supply chain. Suppliers adhere to the IAG Supplier Code of Conduct which links to our commitment to sustainable growth.

As part of IAG's Supply Chain Sustainability Programme, our Watershed partnership for emission measurement and SEDEX membership for on-site audits have strengthened carbon accounting and responsible sourcing. ESG scoring evaluates companies on environmental, social, and governance factors to assess sustainability and ethical impact. Suppliers failing to meet expectations must submit a Corrective Action Plan (CAP) aligned with IAG's Sustainability Strategy and Vision.

IAG is dependent on the performance of key suppliers including aircraft, engines, maintenance, airport operations and catering suppliers. IAG has 17,500 individual suppliers managed through supplier relationship management principles that help classify and prioritise key suppliers and build relationships, as well as monitor and manage supplier and contract performance.

In 2024, IAG's focus was the quality of engagement with key suppliers through obtaining EcoVadis scorecards covering 79% of IAG's total spend. Collaboration brings strong reciprocal benefits – supporting long-term working relationships, centred on clear and proactive contract management, shared goals and mutual brand association.

Where necessary, mitigation plans are put in place for suppliers identified as having potentially higher levels of risk. Issues are flagged to the relevant risk owners within the Group to take appropriate action.

Due diligence regarding compliance risks such as anti-bribery, corruption and trade sanctions is part of our comprehensive supplier management approach. A new 360-degree risk management solution with risk-monitoring technologies will be implemented in 2025 to identify existing and future supplier risks, enabling a proactive, collaborative approach to anticipate and mitigate risks through targeted action plans.

Incidents of corruption or bribery

Confirmed incidents and legal cases

There were no legal cases regarding corruption brought against the Group and its operating companies in 2024, as in 2023. Management is not aware of any impending cases or underlying issues.

There were no relevant concerns or legal cases regarding corruption brought against the Group and its operating companies in 2024, as in 2023.

Convictions and fines

No fines, convictions, or other legal decisions related to corruption or bribery violations were reported for 2024.

Material compliance breaches

No material compliance breaches were identified in 2024, as in 2023.

Investigation procedures and speak-up mechanisms

IAG is committed to conducting its business ethically, responsibly and in full compliance with all applicable laws and regulations. The Group has robust whistleblowing and investigation procedures in place:

• Whistleblowing channel: IAG maintains a Group-wide 'Speak Up' platform provided by an independent third-party provider where concerns can be raised on an anonymous and confidential basis. This channel is available to employees and suppliers.

• Investigation process: In 2024, IAG received 399 whistleblowing reports through its 'Speak Up' platform. Each report was carefully assessed, and all relevant cases were investigated independently under the supervision of the Compliance Officers of each operating company, in line with IAG 'Speak Up' procedures.

• Oversight: The Audit and Compliance Committee plays a critical role in overseeing the Group Head of Ethics Compliance to lead the IAG 'Speak Up' programme. The Committee reviews the effectiveness of the whistleblowing channel annually.

• Protection: IAG does not tolerate any retaliation against individuals using the whistleblowing channel. The Code of Conduct and 'Speak Up' policy explicitly outline protections for whistleblowers.

Anti-bribery and anti-corruption programme

IAG has a Group-wide anti-bribery and corruption policy aligned with international anti-corruption standards, including the UN Convention Against Corruption. Each operating company has a Compliance Officer responsible for managing the anti-bribery programme.

The main compliance risks identified for 2024 (unchanged from the previous year) relate to:

• Use of third parties
• Operational and commercial decisions involving government agencies
• Inappropriate use of gifts and hospitality

Training

Anti-bribery and corruption training is mandatory for all relevant personnel. In 2024:

• 56,495 employees completed annual Code of Conduct training
• 12,088 employees completed anti-bribery training (over a 3-year period)

Political influence and lobbying activities

Political engagement approach

IAG engages with a wide range of government and regulatory stakeholders. These include members of national parliaments, ministers and officials of national governments across multiple departments (including transport, trade, finance, tourism and international affairs), MEPs and other representatives of the institutions of the European Union (including at DG MOVE, and other relevant directorates, as well as permanent representatives of individual member states in Brussels). This wide stakeholder body also encompasses civil aviation regulators in the countries in which our airlines are based and the countries of destination. We also engage with competition authorities, including the Competition and Markets Authority in the UK and, for aviation alliances, the Department of Transportation in the US.

How we engaged:

• The Government Affairs teams of IAG and its operating airlines engage directly with stakeholders in their respective countries and with EU institutions in Brussels. The IAG Government Affairs team coordinates these efforts for a consistent approach
• We engage directly with policy, market and regulatory stakeholders on questions of interest to convey IAG positions and contribute technical expertise to discussions. This has included arranging visits to our airlines' bases to enhance understanding of operations and the impacts of policy proposals
• As well as direct contact, we engage through various international, regional and local trade associations and general business organisations
• This engagement involves senior executives including the IAG CEO, Management Committee members and senior executives from airline operating companies where appropriate, mainly in the EU, Ireland, Spain and the UK
• IAG supports its policy positions with factual studies. In 2024, we participated in A4E studies on Jet Fuel Tax Impacts and intermediary sector practices. Also, Aer Lingus commissioned a report on SAF policies for Ireland, while Iberia and Vueling updated their SAF report for the Spanish market and jointly presented with energy producers Cepsa (now Moeve) and Biocirc
• In the international field, IAG joined air services talks wherever possible including the EU-US Joint Committee on aviation and the International Civil Aviation Organisation's (ICAO) Air Services Negotiation Event (ICAN) to support operating companies' access to market

Quantitative metrics in 2024:

• 90 contacts held with stakeholders in EU institutions
• 35 letters sent to new MEPs and Commissioners
• Direct engagement with almost 200 policymakers and institutions in Ireland, Spain and the UK
• 19 institutional visits to the headquarters of British Airways, Iberia and Vueling
• 'Fuelling the change' event at the European Parliament organised with Aer Lingus plus sponsorship of 10 events of Forum Europa in Brussels with high-level policymakers
• Participation in 40 government-to-government air services negotiations with UK and Spanish authorities

Focus areas and advocacy topics

Key topics:

• Supply chain pressures and impacts of the war in Ukraine and the Middle East, and associated sanctions regimes
• Sustainability, particularly climate and decarbonisation and all aspects of environmental policy affecting aviation, such as availability of and support for investment in SAF and noise impacts
• Economic impacts of aviation, including tax policy and economic regulation
• ATC issues and infrastructure regulation including airspace modernisation, airport charges and slot allocation policy
• Consumer rights including multimodality and accessibility
• Diversity and inclusion for employment as well as development of skills
• Safety, security and immigration rules
• International relations including air service agreements and wet leasing, and immigration policy

Ethical standards and guidelines

Tax is managed in accordance with the tax strategy, which can be found in the Corporate Policies section of the IAG website.

IAG has in place a Group-wide anti-bribery and corruption policy. This document sets out the minimum standards that are expected by the Group, its directors and employees, including definitions and guidance for bribery, gifts and hospitality guidance, political and charitable donations, public officials, facilitation payments among other things.

IAG and its operating companies do not tolerate any form of bribery or corruption. This is made clear in the Group Code of Conduct and supporting policies which are available to all employees and directors. An anti-bribery policy statement is also set out in the Third Party Code of Conduct.

Key principles of climate-related engagement: Aviation is a global industry and IAG remains committed to global policy approaches. IAG supports carbon pricing as a key instrument to determine both the pace of emissions reductions for the aviation industry and the balance of in-sector and out-of-sector reductions. We advocate for the use of greenhouse gas emission removal technologies in carbon markets, by both natural and engineered means.

IAG also prioritises policy advocacy on SAF, as this will be a key lifecycle emissions reduction driver in the next decade, and supports policies on operational efficiency, carbon offsets and removals. The Group seeks to ensure that policies delivered are effective and fair across multiple airlines.

Internal governance: Internal governance ensures that wider stakeholder engagement on climate change is consistent with addressing our material issues and environmental goals.

If the climate-related positions of trade associations are deemed to be substantially weaker than or inconsistent with IAG's internal stances, IAG representatives take roles on task forces and working groups and respond to consultations to communicate our position and constructively move to alignment.

Trade association memberships

EU Transparency Register: IAG and key trade associations are listed on the EU Transparency Register.

Trade associations - Global focus

Trade associations - Spain/Europe focus

Trade associations - UK focus

Alignment of positions: IAG is proud to have views on climate change that are consistent with all the organisations of which it is a member. IAG has positively influenced this outcome by contributing expertise and time to drive net zero commitments, and create and support roadmaps to net zero emissions across organisations such as SA, A4E, oneworld, and ATAG. IAG has also driven and encouraged higher SAF ambitions across JZT, oneworld and WEF.

Political contributions

No specific monetary amounts for political contributions are disclosed in the available extracts.

Lobbying expenditure

No specific amounts for lobbying expenditure are disclosed in the available extracts.

Payment practices

IAG's standard payment terms with suppliers are payment within net 30 days of receipt of the invoice meeting the requirements of applicable legislation. In 2024, the average time to pay invoices from the date of the invoice was 27 days. The percentage of payments aligned with standard payment terms was 89%. There are no legal proceedings concerning late payments due to suppliers.

Payment practices

Payment terms and performance

IAG's standard payment terms with suppliers are payment within net 30 days of receipt of the invoice meeting the requirements of applicable legislation.

2024 payment performance:

• Average time to pay invoices from the date of the invoice: 27 days
• Percentage of payments aligned with standard payment terms: 89%
• Legal proceedings concerning late payments: None

Payments to suppliers are actively monitored with a focus on ensuring payment terms are complied with suppliers who are small and medium businesses. A number of the operating companies have additional statutory and voluntary reporting obligations that they comply with.

Information on invoices paid in a period shorter than the maximum period established in late payment regulations – Spanish Group companies