Iberia’s Inclusion to be Formalised on Monday, September 18
Recognition of best business, social and environmental practices of all types of companies throughout the world.
Iberia earned the most “sustainability” points of any airline in several categories, such as relations with suppliers, risk and crisis management, and several environmental areas.
Analysts and investors in 14 countries heed these findings in buying stock.
Iberia is to be listed in the prestigious Dow Jones Sustainability Index (DJSI), in recognition of its excellent business, social, and environmental practices, determined in an exhaustive comparative analysis. Of the 2,500 companies considered, only 318 made the grade, and the Spanish airline was one of only three airlines among them. The listing becomes effective on Monday, September 18, when 45 companies will be added to the index.
Inclusion in the index is not only a matter of prestige, since it is taken into account by stock market analysts and investors in 14 countries. The value of investments according to DSJI criteria is now about $5 billion, up 30% from a year ago.
Iberia earned the maximum points in several categories, such as relations with suppliers, risk and crisis management, ants annual environmental report, air quality, and strategy for address climate change.
The Business Aspects of the Dow Jones Sustainability World Index
Of the airlines analysed, Iberia eared the most points for risk and crisis management, and also scored high for adherence to its code of conduct, management of customer relations, and corporate governance, all priority concerns in the day-to-day operations of the company. Under its risk-management model, Iberia identifies and tracks all risks, and implements control systems and contingency plans. The company also has a detailed and exhaustive emergency plan which undergoes continual review and updating, in coordination with other companies and official agencies. Emergency drills are conducted on a regular basis.
Iberia has high standards of corporate governance and ethical conduct, and a policy of full transparency. For one thing, this means that the company web site contains much more information than it is legally required to divulge.
In 2003 Iberia implemented a Customer Relations Management programme (CRM) regarded as one of the most advanced in Europe, in order to optimise customer care and to get to know the customers better –especially the nearly three million members of the Iberia Plus loyalty programme– to give them more personalised treatment based on their known needs and preferences. The program also helps Iberia resolve incidents more efficiently and satisfactorily.
Cleaner Air and More Modern Aircraft
Iberia is as concerned as anyone about sustainable development and the impact of human activities on the environment, and this is recognised by the Dow Jones Sustainability World Index, which gave the company the highest ratings for air quality and strategy for dealing with climate change. It also won points for its company-wide environmental protection policies, which have earned Iberia quality certification for environmental management in the airports and maintenance areas. Iberia’s fleet, with an average age of seven years, is one of the most modern in the airline industry. About one hundred older aircraft have been replaced with new ones in the past six years.
Suppliers, Customers, Society at Large
In its relations with stakeholders the company also ranks among the best. Of all the airlines analysed, Iberia scored the highest marks for relations with suppliers. It also scored high for corporate responsibility, partly because of the environmental report it has published annually for the past four years, and for noise reduction thanks to the new aircraft. Iberia also earned recognition for its philanthropic work such as its support for the handicapped, its in-house international relief organisation “Mano a Mano”, its cooperation with organ transplant organisations, and other contributions to the community, as well as its labour policies.
The Dow Jones Sustainability World Index (DJSI World) includes 10% of the most important companies in each industry in terms of sustainability, among the 2,500 listed in the Dow Jones World Index. The selection is based on a procedure defined in the DJSI Guidebooks and involving an exhaustive analysis tailored to each type of industry.
