Governance and Sustainability System SP Energy Networks operates as part of the ScottishPower Group in the UK and as part of the Iberdrola Group world-wide. As such, we maintain a continuously updated Corporate Governance System, which you can learn more about here. The corporate governance system of Scottish Power Energy Networks Holdings Limited is known as the SP Energy Networks Governance and Sustainability System, the latest edition of which was adopted by the company’s Board of Directors on 31 March 2021. The following is a general explanation as to how the Governance and Sustainability System of Scottish Power Energy Networks Holdings Limited and its principal subsidiaries, as with any developed corporate governance system, is structured in practice. Please read our Introduction to the Governance and Sustainability System (approved by the Board of Directors of Scottish Power Energy Networks Holdings Limited on 31 March 2021) for further information regarding the origin and driving ideas behind the SP Energy Networks Governance and Sustainability System, which are principally based on that of Scottish Power Limited’s ultimate shareholder Iberdrola, S.A., as well as its five composite chapters, being: (i) By-Laws, (ii) Purpose, (iii) Environment and Climate Change, (iv) Social Commitment, and (v) Corporate Governance. Scottish Power Energy Networks Holdings Limited, as head of business companies of the Iberdrola Group that engages in the activities of transmission and distribution of electricity, holds the corresponding executive responsibilities, taking charge of the day-to-day management and effective administration of the business, as well as its ordinary control, through its Board of Directors and its management bodies. In discharging these responsibilities and in the exercise of its decision-making powers, Scottish Power Energy Networks Holdings Limited has approved its own bylaws and internal corporate governance rules, and its competent bodies have adopted the corporate policies and other internal codes and procedures that make up the corporate governance system of IBERDROLA, S.A., as well as the specific rules or regulations to implement or supplement it.