International Consolidated Airlines Group SA

**SAF governance in IAG** SAF is a key solution in IAG's transition plan to net zero emissions. In 2023, IAG enhanced its governance framework suitable for accelerating our engagement with SAF investments and policy. This included establishing a SAF Management Group, comprised of colleagues from IAG sustainability, Group finance and each operating company. The SAF Management Group reports to the SAF Steering Group. Please refer to 'Principles of sustainability governance' for more information. [...] **Sustainability Governance** Forum Frequency of meetings Responsibility in relation to sustainability IAG Sustainability Steering Group At least quarterly Comprised of senior representatives from across the Group who provide oversight of environmental and social initiatives and reporting IAG Sustainability network Monthly Sharing sustainability updates and ideas across all business units and over 30 sustainability representatives. In 2023, the ISN Sustainability network met 12 times, including 4 workshops hosted in the UK, Spain, Ireland and Poland. Reports into the IAG Sustainability Steering Group (SSG) Hangar 51 Governance Committee At least bi-annually Reviews new potential investments to consider emerging climate technologies and partnerships with sustainability start-ups. Members include the Chief Commercial Strategy Officer, Chief Financial Officer, Chief Information, Procurement, Services and Innovation Officer [...] **SAF Governance** Forum Frequency of meetings Responsibility in relation to sustainability IAG SAF Steering Group At least quarterly Comprised of senior representatives from across the Group who provide oversight of SAF strategic direction and approval for new purchases and investments IAG SAF Management Group Monthly A cross-Group meeting focusing on SAF strategy, projects, and progress. Reports into IAG SAF Steering Group.

Active engagement on key policy challenges [...] 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 [...] 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."
"Policy advocacy and stakeholder engagement
The aviation industry will only reduce carbon emissions faster with stakeholder and policy support. The Group and its airlines regularly engage with key stakeholders – governments and regulators, shareholders, lenders and other financial stakeholders, trade associations, customers, suppliers, employees, communities, NGOs and academic institutions to advocate for support for emissions reductions and to share progress on Flightpath net zero.

Internal governance ensures that wider stakeholder engagement on climate change is consistent with material issues and environmental goals. Please see our Sustainability statement for more details on sustainability governance at IAG.

Policy advocacy
Aviation is a global industry, and IAG remains committed to supporting cost-effective approaches to work towards net zero emissions by 2050. The Group continues to advocate for carbon reduction policies for the sector that are effective and fair for all market participants.

IAG has positively influenced outcomes by contributing expertise and time to drive net zero targets and create and support roadmaps to net zero emissions across Sustainable Aviation (SA), Airlines4Europe, oneworld, UK Government's Jet Zero Taskforce (JZT), and Air Transport Action Group (ATAG). IAG and key trade associations are listed on the EU Transparency Register.

IAG believes that the industry has an essential part to play in tackling the causes and impact of climate change. If the climate-related positions of trade associations are deemed to be substantially weaker or inconsistent with this stance, IAG representatives take roles on task forces and working groups and respond to consultations to communicate our position and constructively move to alignment. For example, IAG has demonstrated this action through its work to encourage higher SAF ambitions across the JZT, oneworld and World Economic Forum.

In 2024, IAG supported policymakers to develop policy support mechanisms that will accelerate the scale-up of SAF production and enable cost-efficient deployment by airlines (see the Advancing SAF policy support section). IAG also welcomed the decision made by ICAO and its member states at the third ICAO Conference on Aviation Alternative Fuels (CAAF/3) in 2023, to strive to achieve a global aspirational vision to reduce CO2 emissions in international aviation by 5% by 2030 through the use of SAF, low-carbon alternative fuels (LCAF) and other aviation clean energies.

On carbon pricing, IAG supports fair, global carbon pricing for the aviation sector 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, and responded to the UK's consultation on inclusion of GGRs in the UK ETS in 2024."
"The aviation industry will reduce its lifecycle carbon emissions faster with stakeholder and policy support. The Group and its operating airlines regularly engage with key stakeholders, including governments and regulators, shareholders, lenders and other financial stakeholders, trade associations, customers, suppliers, employees, communities, NGOs and academic institutions. We advocate for support for emissions reductions and to share progress on our Flightpath net zero strategy. Internal governance ensures that wider stakeholder engagement on climate change is consistent with addressing our material issues and environmental goals. [...] Internal governance ensures that wider stakeholder engagement on climate change is consistent with addressing our material issues and environmental goals. [...] IAG is proud to have views on climate change that are consistent with all the organisations of which it is a member (see below). 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. IAG and key trade associations are listed on the EU Transparency Register. [...] Member of organisation IAG involvement in organisation and actions to ensure, or move to, consistent stances [...] Sustainable Aviation (SA) One of 13 members of SA Council, which governs activities for 44 members Drove development of SA's net zero roadmap in 2023, which for the first time included the demand impact of a net zero transition. IAG was also an active participant in workstreams to advance low-carbon solutions [...] Jet Zero Taskforce (JZT) Chairs SAF Delivery Group and supported creation of UK Jet Zero Strategy in 2022 to deliver net zero UK aviation by 2050. British Airways CEO is a member [...] Royal Aeronautical Society (RAeS) – Greener by Design group (GbD) Member of the Executive Committee of GbD, attended non-CO2 conferences in 2022 and 2023 to understand how best to mitigate these effects

Current activities

Board oversight via SECR Committee and Audit and Compliance Committee; multiple layers of robust governance; 2021 materiality assessment still relevant and so not updated [...] Actions across ten associations are listed below. If the climate-related positions of trade associations are deemed to be substantially weaker or inconsistent with these internal stances, IAG representatives take roles on task forces and working groups and respond to consultations to communicate our stances and constructively move to alignment. [...] Internal governance ensures that wider stakeholder engagement on climate change is consistent with material issues and environmental goals. [...] Board Safety, Environment and Corporate Responsibility (SECR) Committee At least quarterly Dedicated oversight of Group sustainability programme and alignment with strategic priorities, review of progress against environment and people plans. Provides a link between operating company management committees and the IAG Board [...] IAG Sustainability Steering Group (SSG) At least quarterly Comprised of senior representatives from across the Group who provide oversight of environmental and social initiatives and reporting [...] IAG SAF Steering Group At least quarterly A cross-Group meeting focusing on SAF projects and progress [...] IAG Sustainability network Monthly Sharing sustainability updates and ideas across all business units and over 30 sustainability representatives. In 2022, three Group workshops were also hosted: in Spain, Ireland and Poland [...] Hangar 51 Governance Committee At least bi-annually Reviews new potential investments to consider emerging climate technologies and partnerships with sustainability start-ups Members include the Chief Strategy Officer, Chief Financial Officer, Chief Information Officer and General Counsel [...] Individual Frequency of reporting Responsibility in relation to sustainability

IAG CEO At least quarterly Chairs the IAG Management Committee, updates the Board, and ensures Board-level decisions are directed into action across the Group [...] IAG Chief People, Corporate Affairs and Sustainability Officer (CPCASO) At least quarterly Reports into the IAG CEO. A member of IAG Management Committee. Chairs the SSG and provides approval and direction of Group programmes [...] IAG Group Head of Sustainability Regularly as relevant Reports into IAG CPCASO. Chairs the Sustainability network [...] IAG Group Head of People Regularly as relevant Reports into IAG CPCASO [...]

#### Governance

###### GOV-1 Role of administrative, management and supervisory bodies; GOV-2 Information provided to and sustainability matters addressed by the undertaking's administrative, management and supervisory bodies
IAG has robust governance in place to ensure joined-up and progressive decisions on sustainability.

This ensures that wider stakeholder engagement is consistent with addressing IAG's material issues, environmental priorities and sustainability goals. An annual meeting planner for the Board ensures sustainability governance processes fit within the reporting and disclosure framework of the Group.

The Group's unique structure means that each individual operating company has a distinct sustainability programme. These are regularly reviewed to ensure alignment with the Group's sustainability strategy and principles, which covers material issues, KPIs and engagement plans.

Please refer to the Corporate Governance section of this Annual Report for more information on IAG's administrative, management and supervisory bodies. Relevant forums and levels of responsibility for sustainability matters are indicated below.

|Managemen|t Committee|
|---|---|

|IAG sustainability governance Board Safety, Environment and Audit and Compliance Remuneration Committee Corporate Responsibility Committee (SECR) Committee Sustainable Aviation Fuel Management Committee Steering Group Sustainability People Working Group Steering Group|Col2|
|---|---|
|IAG sustainability network|||
|||

Sustainability network working groups

n Introduced in 2020

Board/management committee Frequency of meetings Responsibility in relation to sustainability

Board At least quarterly Approval of strategy, major investments, risk management and controls
and review of progress against environment and people plans including
climate-related goals and targets

Safety, Environment
and Corporate Responsibility
(SECR) Committee

IAG Audit and Compliance
Committee

At least quarterly Dedicated oversight of the Group's sustainability programme and
alignment with strategic priorities, environmental sustainability
approval, and review of progress against environment and people plans.
Receives an update on material sustainability issues including
environmental KPIs on a quarterly basis. Provides a link between
operating company management committees and the IAG Board.
Receives training as required on sustainability topics. In 2024, SECR
Committee members (alongside the IAG Audit and Compliance
Committee) received training on the CSRD prior to approving the
material topics as determined by the IAG double materiality assessment

At least quarterly Ensures appropriate processes and controls are in place to allow
compliance with relevant regulation and reporting requirements
and reviews the Annual Report and Accounts. In 2024, committee
members (alongside the IAG SECR) received training on the CSRD
prior to approving the material topics as determined by the IAG
double materiality assessment

IAG Management Committee At least quarterly Reviews and challenges Group programmes, the alignment of
operating-company-specific programmes with Group priorities
and strategy, and progress against plans

Operating companies'
management committees

At least quarterly Reviews and challenges operating-company-specific environment
and people programmes

--NEW-PAGE--

Sustainability governance

Forum Frequency of meetings Responsibility in relation to sustainability

IAG Sustainability Steering At least quarterly Comprises senior representatives from across the Group who provide
Group (SSG) oversight of environmental and social initiatives and reporting

IAG Sustainability Network (ISN) Monthly calls and
three in-person
workshops

The ISN comprises more than 60 sustainability representatives across
the Group. This group supported the Group's double materiality
assessment in 2024 by providing views on the impact materiality of
IROs identified, and meets monthly to provide updates on the work
to address material impacts, risks and opportunities (IROs). This forum
reports into the IAG Sustainability Steering Group (SSG). The IAG
Sustainability team also administers regular training to its operating
companies to support development of expertise across the Group
on key issues

Hangar 51 Governance
Committee

At least biannually Reviews potential investments to consider emerging climate
technologies and partnerships with sustainability start-ups. Members
include the Chief Commercial Strategy Officer, Chief Financial and
Sustainability Officer and Chief Information, Procurement, Services
and Innovation Officer

Sustainability network working groups (cross-Group)

Forum Frequency of meetings Responsibility in relation to sustainability

Reporting and Disclosures Monthly Designed to monitor IAG sustainability disclosures against our regulatory
Working Group requirements. Includes a subgroup focused on biodiversity issues

Waste Working Group Monthly This working group is focused on improving waste monitoring
processes from our operations and implementing waste reduction
and recycling projects to meet IAG's 2025 targets

Sustainability KPI Working Group Monthly Forum for sharing best practice and implementing internal audit
requirements for the accurate reporting of environmental metrics.
Alignment of reporting with developing standards is ensured. Tracks
key metrics towards IAG's Flightpath net zero strategy - for
presentation to the ISN, SSG and SECR

Carbon Efficiency Working Group Monthly Forum comprises sustainability and fuel management teams who share
best practice on fuel efficiency initiatives to accelerate carbon
reductions in line with IAG Flightpath net zero strategy

Social Impact Working Group Ad hoc Forum to develop initiatives and track the value of IAG for societies.

Climate Strategy Working Group At least quarterly Forum for sustainability colleagues to develop the IAG Flightpath net
zero strategy and sustainability initiatives

Non-CO2 Working Group Monthly Prepares Group airlines for reporting requirements related to non-CO2
emissions in the EU and shares best practices to better understand
its environmental impact and possible mitigation initiatives

Sustainable Aviation Fuel (SAF) Governance

Forum Frequency of meetings Responsibility in relation to sustainability

IAG SAF Steering Group At least quarterly Comprises senior representatives from across the Group who provide
oversight of SAF strategic direction and approval for new purchases
and investments

IAG SAF Management Group Monthly A cross-Group meeting focusing on SAF strategy, projects and
progress. Reports into the IAG SAF Steering Group

Governance responsibilities

Individual Frequency of reporting Responsibility in relation to sustainability

IAG CEO At least quarterly Chairs the IAG Management Committee, updates the Board and ensures
Board-level decisions are directed into action across the Group

IAG Chief Financial and
Sustainability Officer

At least quarterly Reports to the IAG CEO. A member of the IAG Management
Committee. Chairs the SSG and provides approval and direction of
Group programmes

IAG Group Sustainability Officer Regularly as relevant Reports to the IAG Chief Financial and Sustainability Officer. Chairs
the IAG Sustainability Network and is responsible for delivering IAG's
Flightpath net zero strategy

IAG Group Head of People Regularly as relevant Reports to the IAG CEO. Responsible for delivering initiatives that
address material social issues in the Group

Wider governance
Wider governance processes integrate sustainability aspects. As part of the Group-wide ERM process, sustainable aviation and
people, culture and employee relations risks are presented biannually to the Audit and Compliance Committee and annually to the
Board. One-year financial plans and three-year business plans are coordinated by Group Finance and include sustainability aspects.

For more information, please refer to the Corporate Governance section of this Annual Report.

Attach commitment or position statement(s)[…]IAG's stance on climate change, as communicated on page 70 in the 2021 Annual Report, is to aspire to align its efforts with the latest science on limiting global warming to 1.5°C . This applies both to the goal of achieving net zero by 2050 and to pathways aligned to the science, taking into account cross-sector mechanisms - like carbon pricing - that allocate emission reductions across sectors, and differences in decarbonisation costs and phasing between sectors.

IAG sees both gross and net reductions in emissions as crucial elements of aviation decarbonisation. We support the mechanisms of fleet modernisation, airspace and operational efficiency, sustainable aviation fuels, carbon pricing schemes and voluntary offsets and removals, and advocate for effective policies to promote those that are effective, and fair, and ideally global. IAG also supports the principle of carbon pricing, which is to drive emissions reductions across sectors where these cuts are most cost-effective. IAG does not support carbon taxes as it has been proven that these are environmentally inefficient.

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]IAG has internal governance, as mentioned in Section C1, to ensure that wider stakeholder engagement on sustainability is consistent with its material issues and environmental goals. This is coordinated through the IAG Sustainability team, Sustainability Steering Group and internal sustainability network, and through close working relationships with the Government Affairs team.

Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement?[…]Yes