Welcome to our 2007 Corporate Responsibility Report

2007 was a landmark year for our business with the successful integration of ScottishPower and IBERDROLA.  The new enlarged IBERDROLA Group ended 2007 as one of the world’s largest electricity companies by market capitalisation.

Through the friendly integration, now successfully completed, we have reinforced our shared commitment to Corporate Responsibility.  Our reporting year has been aligned to IBERDROLA so going forward we will be working on a calendar year basis.

Achieving Scottish Business in the Community Large Company of the Year in 2007 was an important endorsement for ScottishPower’s work and to our commitment to environmental and social issues.

During 2007, we have announced significant investments in sustainable generation projects and environmental technologies; increased our 2010 target for delivery of wind energy projects in the UK to 1,200 MW and established partnerships that will help secure Scotland’s place as the world leader in marine energy. In addition, we announced the UK’s largest energy crop project and embarked on a major study into cleaner coal generation.

Corporate responsibility is about developing the strength of our business, while respecting the needs of our stakeholders. It involves managing the potentially negative impacts of our business on society, while leveraging our activities to create benefits for communities, customers, employees and the environment. We remain committed to being a socially responsible company with best practice in corporate governance, business topics and respect for the environment. This commitment creates a sense of belonging and trust amongst stakeholders.

The ScottishPower senior management team continue to report on the 12 UK impact areas, whilst also now globally report our enhanced CSR credentials to the wider IBERDROLA Group.  We as a fully integrated Group, are committed to a “multi local” approach ensuring ScottishPower continue its dialogue and relationships with key stakeholders. The establishment of the ScottishPower Advisory Board with membership from leaders in business, finance, public policy and academic research is an important link in ensuring our activities are globally coordinated and implemented in the most appropriate way within the UK and Scotland. Our community and sponsorship spend at £4.9 million for last year has increased year on year.

The integration with IBERDROLA provides a global platform for our combined Corporate Social Responsibility activities which together with a real and ongoing commitment to the local communities in which we operate, creates real and long lasting benefits for all our stakeholders and society.

I hope you find this report useful and engaging, and I would be to hear your opinions and thoughts on any of the matters raised within the report, or indeed any other aspect of our operations.

José Luis del Valle
Vice Chairman
April 2008