Consolidated Statement of Non-financial information 2025

International Consolidated Airlines Group, S.A.

Consolidated Non-Financial Information and Sustainability information for the year ended 31 December 2025

IFt9ffiâtlOFâl Consolidat4d AltiIh9SGFOflb,S.A. anasussidiaries

Limited Assurance Report issued by an assurance provider on the Consolidated Non-Financial Information Statement (NFIS) and Sustainability Information

31 December 2025

KPMG Auditores, S.L.

Paseo de la Castellana, 259C 28046 Madrid

Limited Assurance Report issued bv an assurance provider on the Consolidated Non-Financial Information Statement and Sustainability Information of International Consolidated Airlines Group, S.A. and subsidiaries for 2025

To the Shareholders of International Consolidated Airlines Group, S.A.:

Limited Assurance Conclusion

Pursuant to article 49 of the Spanish Code of Commerce, we have performed a limited assurance review of the accompanying Consolidated Non-Financial Information Statement (hereinafter, NFIS) of International Consolidated Airlines Group, S.A. (hereinafter, the Entity) and its subsidiaries (hereinafter, the Group) for the year ended 31 December 2025, which forms part of the Group's consolidated management report.

The NFIS includes additional information to that required by prevailing mercantile legislation concerning non-financial information, namely the sustainability information prepared by the Group for the year ended 31 December 2025 (hereinafter, the Sustainability Information) in accordance with the provisions of Directive (EU) 2022/2464 of the European Parliament and of the Council of 14 December 2022 on Corporate Sustainability Reporting Directive (CSRD). This Sustainability Information has also been subject to a limited assurance review.

Based on the procedures performed and the evidence obtained, nothing has come to our attention that causes us to believe that:

1. the Group's Non-Financial Information Statement for the year ended 31 December 2025 has not been prepared, in all material respects, in accordance with prevailing mercantile legislation and selected criteria of the European Sustainability Reporting Standards (ESRS), as well as the other criteria described based on each subject area in section "Table of contents required by Spanish Law 11/2018" of the aforementioned Statement;

2. the Sustainability Information as a whole has not been prepared, in all material respects, in accordance with the sustainability reporting framework applied by the Group and identified in the accompanying note "BP-1 General basis for preparation", including:

   • That the description of the process for identifying the sustainability reporting information included in note "IRO-1 Description of the process to identify and assess material IROs and to assess which ones are material; IRO-2 - Disclosure requirements in ESRS covered by the undertaking's Sustainability statement" is consistent with the process carried out and that it identifies the material information to be disclosed in accordance with the requirements of the ESRS.

   • Compliance with ESRS.

   • Compliance of the disclosure requirements, included in subsection "EU Taxonomy Regulation" of the environment section of the Sustainability Information, with Article 8 of Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment.

Basis for Conclusion

We have performed our limited assurance engagement in accordance with generally accepted professional standards applicable in Spain and specifically with the guidelines contained in the Revised Guidelines 47 and 56 for assurance engagements on non-financial information issued by the Spanish Institute of Registered Auditors (ICJCE) and considering the contents of the note published by the Spanish Accounting and Audit Institute {ICAC) on 18 December 2024 (hereinafter, Generally Accepted Professional Standards).

The scope of the procedures applied in a limited assurance engagement is less than those required in a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is lower than the level of assurance that would have been obtained had a reasonable assurance engagement been performed.

Our responsibilities under this standard are further described in the Responsibility of the Assurance Provider section of our report.

We have complied with the independence and other ethical requirements of the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA), which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour.

Our firm applies the International Standard on Quality Management (ISQM) 1, which requires the firm to design, implement and operate a system of quality management including policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion.

Directors' Responsibility

The preparation of the NF1S included in the Group's consolidated management report, and the content thereof, is the responsibility of the Directors of International Consolidated Airlines Group,

S.A. The NFIS has been prepared in accordance with prevailing mercantile legislation and selected criteria of the ESRS, as well as the other criteria described based on each subject area in section "Table of contents required by Spanish Law 11/2018" of the aforementioned Statement.

This responsibility also encompasses the design, implementation and maintenance of internal control deemed necessary to ensure that the NFIS is free from material misstatement, whether due to fraud or error.

The Directors of International Consolidated Airlines Group, S.A. are also responsible for defining, implementing, adapting and maintaining the management systems from which the information required to prepare the NFIS was obtained.

In relation to the Sustainability Information, the entity's Directors are responsible for developing and implementing a process for identifying the information to be included in the Sustainability Information in accordance with the contents of the CSRD, the ESRS and Article 8 of Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 and for disclosing information about this process in the Sustainability Information in note "IRO-1 Description of the process to identify and assess material lROs and to assess which ones are material; IRO-2 - Disclosure requirements in ESRS covered by the undertaking's Sustainability statement". Tnis responsibility includes

understanding the context in which the Group's business activities and relationships are conducted, and its stakeholders, in relation to the Group's impact on people and the environment.

• identifying actual and potential impacts (both negative and positive), and any risks and opportunities that might affect, or could reasonably be expected to affect, the Group's financial OSftOn, financial performance, cash bows, access to financing and the cost of capital in fhe short, medium or long term

• evaluating the materiality of the impacts, risks and opportunities identified; and making assumptions and estimates that are reasonable in the circumstances.

  The Directors are also responsible for the preparation of the Sustainability Information, including the

  information identified by the process, in accordance with the sustainability reporting framework applied, including compliance of the CSRD, the ESRS and the disclosure requirements included in subsection "EU Taxonomy Regulation" of the environmental section of the Sustainability Information with Article 8 of Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment.

  This responsibility includes:

• Designing, implementing and maintaining such internal control as the Directors consider necessary to enable the preparation of sustainability information that is free from material misstatement, whether due to fraud or error.

  Selecting and applying appropriate methods for sustainability information and making assumptions and estimates that are reasonable in the circumstances for specific disclosures.

  Inherent Limitations in preparing the information

  In accordance with the ESRS, the Entity's Directors are required to prepare prospective information based on assumptions and hypotheses, which are to be included in the Sustainability Information, regarding events that may occur in the future, as well as any possible future actions that the Group may take. The actual outcome may differ significantly from the estimates, as future events often do not occur as expected.

  In determining sustainability disclosures, the Entity's Directors interpret legal and other terms that are not clearly defined and may be interpreted differently by others, including the legal conformity of such interpretations, and are therefore subject to uncertainty.

  Responsibility of the Assurance Provider

  Our objectives are to plan and perform the assurance engagement in order to obtain limited assurance about whether the NFIS and Sustainability Information are free from material misstatement, whether due to fraud or error, and to issue a limited assurance report that includes our conclusions thereon. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the decisions of users taken on the basis of this information.

  
  
  

  4

  As part of a limited assurance engagement, we exercise professional judgement and maintain professional scepticism throughout the engagement. We also:

• Design and implement procedures to assess whether the process for identifying the information to be included in both the NFIS and Sustainability Information is consistent with the description of the process followed by the Group and allows, where appropriate, for the identification of material information to be disclosed in accordanGe with the requirements of the ESRS.

• Apply risk-based procedures, including obtaining an understanding of internal controls relevant to the engagement in order to identify the disclosures where material misstatements are more likely to arise, whether due to fraud or error, but not for the purpose of providing a conclusion about the effectiveness of the Group's internal control.

• Design and implement procedures that respond to disclosures in both the NFIS and the Sustainability Information that are likely to contain material misstatements. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

  Summary of Work Performed

  A limited assurance engagement includes performing procedures to obtain evidence to support our conclusions. The nature, timing and scope of the procedures selected depend on professional judgement, including the identification of the disclosures in which material misstatements, whether due to fraud or error, are likely to arise in the NFIS and the Sustainability Information.

  Our work consisted of making inquiries of management, as well as of the different units and components of the Group that participated in the preparation of the NFIS and the Sustainabi1ig Information, reviewing the processes for compiling and validating the information presented in the NFIS and the Sustainability Information and applying certain analytical procedures and sample review tests, which are described below:

  In relation to the NFIS assurance process:

• Meetings with the Group's personnel to gain an understanding of the business model, policies and management approaches applied, the principal risks related to these matters and to obtain the Information necessary for the external review.

• Analysis of the scope, relevance and completeness of the content of the NFIS for 2025 based on the materiality analysis performed by the Group and described in the note "IRO-1 Description of the process to identify and assess material IROs and to assess which ones are material; IRO-2 -Disclosure requirements in ESRS covered by the undertaking's Sustainability statement", considering the content required by prevailing mercantile legislation.

• Analysis of the processes for compiling and validating the data presented in the NFIS for 2025.

  Review of the information relative to the risks, policies and management approaches applied in relation to the material aspects presented in the NFIS for 2025.

  Corroboration, through sample testing, of the information relative to the content of the NFIS for 2025 and whether it has been adequately compiled based on data provided by the information sources.

  
  
  

  In relation to the assurance work on the Sustainability Information:

• Making inquiries of Group personnel:

  • to gain an understanding of the business model, policies and management approaches applied, the principal risks related to these matters and to obtain information necessary for the external review.

  • to understand the source of information used by management (e.g. stakeholder interaction, business plans and strategy documents) and review the Group's internal documentation on its process.

• Through inquiries of Group personnel, gaining an understanding of the Group's processes for collecting, validating and reporting information relevant to the preparation of its sustainability information.

• Assessment of how consistent the evidence obtained from our procedures on the Group's process for determining the information to be included in the Sustainability Information is with the description of the process included in the Sustainability Information, and assessment of whether the Group's process duly identifies the material information to be disclosed in accordance with the requirements of the ESRS.

  Assessment of whether all the information identified in the Group's process for determining the information to be included in the Sustainability Information is effectively included.

• Assessment of how consistent the structure and presentation of the Sustainability Information is with the provisions of the ESRS and the rest of the sustainability reporting framework applied by the Group.

• Inquiries of relevant personnel and performance of analytical procedures on the information disclosed in the Sustainability Information considering where material misstatements are likely to arise, whether due to fraud or error.

  Performance, if applicable, of sample substantive procedures on information disclosed in the Sustainability Information considering where material misstatements are likely to arise, whether due to fraud or error.

• Procurement, if applicable, of any reports issued by accredited independent third parties included as an appendix to the consolidated management report in response to the requirements of European regulations and, in relation to the information to which they refer and in accordance with Generally Accepted Professional Standards, confirmation solely that the accreditation of the assurance provider and the scope of the report issued is in line with European regulations.

• Procurement, if applicable, of any documents containing the information included by reference, the reports issued by auditors or assurance providers on those documents and, in accordance with Generally Accepted Professional Standards, confirmation solely that the document referred to by such information included by reference meets the conditions described in the ESRS for incorporating information by reference in the Sustainability Information.

Procurement of a representation letter from the Directors and management regarding the NFIS and the Sustainability Information.

Other Information

The Directors of International Consolidated Airlines Group, S.A. are responsible for other information. Other information comprises the consolidated annual accounts and other information included in the consolidated management report but does not include either the auditor's report on the consolidated annual accounts or assurance reports issued by accredited independent third parties required by European Union law on specific disclosures contained in the Sustainability Information included as an appendix to the consolidated management report.

Our assurance report does not cover other information, and we do not express any assurance conclusions on said information.

In connection with our engagement to provide assurance on the Sustainability Information, our responsibility is to read the other information identified above and, in so doing, consider whether the other information is materially inconsistent with the Sustainability Information or with the knowledge we have acquired during the assurance engagement that could be indicative of material misstatements in the Sustainability Information.

KPMG Auditores, S.L.

a Contreras Hernand

3 March 2026

Consolidated Non-Financial Information Statement and Sustainability Information

General requirements

1. ESRS 2 General disclosures

1. BP-1 General basis for preparation

2. BP-2 Disclosures in relation to specific circumstances

3. Governance

6 Strategy

Environment (Planet)

11 ESRS E1 Climate change

Social (People and prosperity)

29 ESRS S1 Own workforce

42 ESRS S2 Workers in the value chain

45 ESRS S4 Consumers and end-users

Governance

47 ESRS G1 Business conduct

Appendix

52 Sustainability due diligence

52 Phase in reliefs taken

53 Calculation methodology and factors

57 Datapoints from other EU legislation

EU Taxonomy

62 EU Taxonomy

70 KPIs of non-financial undertakings

General requirements

‌ESRS 2 General disclosures

‌BP-1 General basis for preparation

International Consolidated Airlines Group (hereinafter referred to as 'International Airlines Group', 'IAG' or 'the Group') Consolidated Non-Financial Information Statement and Sustainability Information (together referred to as the 'Sustainability statement') complies with Spanish Law 11/2018, of 28 December 2018, amending the Commercial Code, the consolidated text of the Companies Law approved by Royal Legislative Decree 1/2010, of 2 July 2010, Law 22/2015, of 20 July 2015, on auditing, in matters of non-financial and diversity information, and Law 5/2021, of 12 April 2021, amending Article 49.6.II, fourth paragraph, of the Commercial Code.

This Sustainability statement is prepared in accordance with the EU CSRD on a voluntary basis and the scope of consolidation matches the consolidated financial statements of IAG.

The disclosure of transitional requirements comply with the joint communications by the CNMV and the ICAC released on 27 November 2024 and subsequent communication released on 19 November 2025. Selected GRI Standard (an international initiative for sustainability reporting) has been applied for these disclosure requirements.

IAG also complies with the 2018 UK Streamlined Energy and Carbon Reporting regulation, the TCFD recommendations and the EU Taxonomy Regulation (2020/852).

Information provided in this Sustainability statement is also relevant for the requirements of Royal Decree 214/2025, of 18 March 2025, in respect of emissions in relation to activities

located in Spain. Royal Decree 214/2025 creates the register of carbon footprint, compensation and carbon dioxide absorption projects and establishes the obligation to calculate the carbon footprint and to prepare and publish plans to reduce GHG emissions (for companies affected by article 49.5 of the Commercial Code, and article 262.5 of the consolidated text

of the Capital Companies Act).

Sections in IAG's Annual Report that are included within the scope of this Sustainability statement, due to their relevance for addressing the requirements of the CSRD, include Business model, Corporate Governance, Stakeholder engagement and Risk management and principal risk factors.

References to relevant regulations are provided in the appendix to this Sustainability statement.

External assurance

The full contents of this Sustainability statement are independently verified by a third party to limited assurance standards in line with ISAE3000 (Revised) standards.

Emissions data from intra-European flights is also independently verified to reasonable assurance standards within six months of the year end for compliance with the UK ETS and EU ETS and for all flights on eligible routes for the CORSIA.

Scope of this statement

IAG provides information about key environmental, social, employee-related and human-rights-related issues, where this is relevant to the Group and its activities. The scope of this Sustainability statement is aligned with the consolidated financial statement in this Annual Report. Material topics have been determined via a double materiality assessment initially completed in 2024 and reviewed in 2025, details of which follow in this Sustainability statement.

The scope of environmental performance data and targets relates to all IAG subsidiaries. The scope of workforce and ethics and integrity data includes all IAG operating companies. In both cases, a number of exceptions and assumptions have been applied and these are clearly stated with rationale provided.

The scope of human rights and modern slavery reporting relates to data from our airlines and key aspects of the IAG supply chain.

Total revenue per the consolidated financial statements is used to calculate revenue intensity data points as required under section E1 Climate change.

Scope of the value chain

This report covers sustainability impacts resulting from direct, upstream and downstream operations of IAG. Examples of these operations include, but are not limited to:

‌BP-2 Disclosures in relation to specific circumstances

Time horizon

Under the ERM framework, IAG assesses the potential impact of principal risks over the next three years against the strategic business plan ('the plan'). IAG considers risks to the plan over the (S) short term (up to three years), (M) medium term (from

three to five years) and in the (L) longer term (beyond five years).

This Sustainability statement is aligned to this risk assessment, where short term (S) is defined as one to three years, medium term

(M) is up to five years and long term (L) is more than five years.

To assess climate-change-related risks, IAG looks at a range of timescales including up to 2040 and 2050. Emerging risks across our business and regions are considered as they

are identified, in addition to key threats and trends faced by the industry over a timeframe beyond the plan period.

Longer-term considerations are assessed in parallel with the near-term priorities and adaptations required by the Group.

Refer to the Principal Risk and Uncertainties section of this Annual Report for more information.

Value chain emissions estimation

IAG has assessed all 15 categories of Scope 3 emissions as defined by the global GHG Protocol. Refer to section E1 Climate change and the appendix of this Sustainability statement for more information.

Standardised conversion factors are used where data from suppliers is not available, which means that as more data

from suppliers becomes available some values may be restated if they are considered material. Any restatements will be provided in future reports with explanations provided.

Sources of estimation and outcome uncertainty

For any specific cases where full-year data was not available for selected metrics, estimates have been applied based

on business forecasts and data from periods from which information was available. Internal processes, procedures and governance is in place to ensure that any estimations made are robust.

We have deemed the following metrics in the table below to have a high degree of uncertainty based on known omissions in the dataset:

Metric Key assumptions or omissions Remedial actions

Scope 3, Category 11: Activity relating to IAG Loyalty programme members redeeming Avios

Includes Avios redeemed through available IAG redemption channels and excludes Avios that are converted into award credits of other non-Group partners

Methodology is under development to assess the ability to broaden reporting scope beyond flight activity on IAG aircraft only

Changes in preparation or presentation of sustainability information

There have been no changes to the preparation of sustainability information in this Sustainability statement compared to 2024. This Sustainability statement is prepared within IAG's Management report in accordance with the CSRD on a voluntary basis.

It adheres to the ESRS and aligns to the example structure of the Sustainability statement presented by the European Financial Reporting Advisory Group. Information disclosed in this Sustainability statement complies with the requirements of Spanish Law 11/2018 and 214/2025.

Reporting errors in prior periods

The IAG Sustainability Director reviews all data including from prior periods. No material reporting errors were identified from prior periods in the preparation of this statement.

Disclosures stemming from other legislation or generally accepted sustainability reporting pronouncements

Please refer to BP-1 General basis for more information regarding the preparation of this Sustainability statement.

IAG's most material environmental metric - Scope 1 emissions - receives additional independent reasonable assurance verification each year as part of the legal requirements of the EU, Swiss and UK ETS and CORSIA, within six months of the issuance of this report. Any material changes are restated in future reports. More information is provided in the appendix to this Sustainability statement.

Phase-in provisions

Please refer to the appendix to this Sustainability statement.

‌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 a robust governance structure in place to deliver joined-up and progressive decisions on sustainability.

This governance 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 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.

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.

Sustainability network working groups

IAG sustainability network

IAGi Governance Committee

Sustainability

Steering Group

People Working Group

Management Committee

Sustainable Aviation Fuel (SAF)

Steering Group

Audit and Compliance

Committee

Environment and Corporate

Responsibility (ECR) Committee

Remuneration Committee

Board

IAG sustainability governance

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, refer to the Corporate Governance section of this Annual Report.

GOV-3 Integration of sustainability-related performance in incentive schemes

IAG has a number of sustainability-linked annual incentives for over 7,500 senior executives and managers across the Group, including 100% of IAG senior executives. These incentives are designed to support IAG's ambition to reduce the carbon intensity of its operations.

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.

Unit Incentive scope Explanation

IAG-specific carbon

efficiency measure

gCO2/pkm Covers up to 10%

of the annual bonus for senior executives

This measure reflects our progress towards our sustainability

target. It measures the fuel efficiency of our flight operations, accounting for our 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).

Refer to the Remuneration Committee report for more information.

GOV-4 Statement on due diligence

Refer to the appendix to the Sustainability statement.

GOV-5 Risk management and internal controls over sustainability reporting

Sustainable aviation risks and people, culture and employee relations risks are reported as principal risks to IAG.

These risks are reviewed under the Group ERM risk assessment process, which is presented biannually to the Audit and Compliance Committee and annually to the Board. More details on risk identification and assessment and risk management can be found in the Risk management and principal risk factors section of this Annual Report.

All principal risks are linked to the Group's strategic priorities.

Sustainability risks and opportunities, including climate-related risks and opportunities, are also identified and assessed by

the Group Sustainability team, in conjunction with the Group ERM team, and presented to the IAG Chief Financial and Sustainability Officer and IAG Management Committee.

Plans to mitigate risks are developed by relevant risk owners

in specific areas of the business, with agreed initiatives included in relevant operating company business plans. Where risk mitigation requires time to implement, short-term mitigations are assessed and the timeline to risk mitigation and consequent risk acceptance is discussed and agreed by stakeholders.

People, culture and employee-related risks are managed by the Group's operating companies and supervised by the

IAG Nominations Committee, the Remuneration Committee and the Board through periodic reports.

Impact on operations and strategy

Sustainability risk assessments inform specific decisions related to business operations and strategy, and IAG allocates resources to environmental risk management. IAG is committed to mitigating the impacts of hazards that could have negative outcomes

on the environment or people.

IAG adopts precautionary measures to mitigate these hazards, taking early, proactive steps to understand and mitigate climate-related risks before all impacts are fully certain, an approach known as the precautionary principle. For example, the precautionary principle is applied to the planning of operations and the launch of new services. IAG integrates

and aligns climate considerations into three-year business plans and one-year financial forecasts.

IAG also manages risks via the use of ISO-14001-aligned environmental management systems. IEnvA (IATA's Environmental Assessment) is the airline industry's version of ISO 14001, the international standard for environmental

management systems. IEnvA is tailored specifically for airlines and is fully compatible with the requirements of the ISO.

All Group airlines were certified under the IEnvA standard

in 2025. Iberia and British Airways renewed their certification in 2025 and British Airways incorporated the Illegal Wildlife Trafficking certification module, which has been developed in line with the 11 commitments of the Buckingham Palace Declaration and the 72nd IATA AGM Resolution to prevent the transportation of illegal wildlife products.

‌Strategy

SBM-1 Strategy, business model and value chain

IAG focuses its sustainability strategy on addressing material issues: those that are most important to key stakeholders and that have the biggest external impacts.

Refer to the Strategic review section of this Annual Report for more information on IAG's strategy, business model and value chain.

SBM-2 Interests and views of stakeholders

IAG regularly engages its stakeholders on sustainability issues. External stakeholders include investors, customers (including corporate customers), employee representative groups, policymakers, trade associations, fuel suppliers, airports and NGOs. Internal stakeholders include Board members, all Management Committee members and employees (including operating company sustainability representatives). The results inform ongoing disclosures and strategy. IAG considered the interests and views

of stakeholders in its double materiality assessment.

Please refer to the stakeholder section of the Management report for more details.

Customers

Affected stakeholders

Society

Affected stakeholders

Employees

Affected stakeholders

Suppliers

Affected stakeholders and report users

Shareholders, lenders and other financial stakeholders Report users

Environment

Affected stakeholders (silent stakeholder)

Public administration (government and regulators) Affected stakeholders and report users

The safety, satisfaction and overall experience of IAG customers are directly influenced by the Group's operations. Customer experience, encompassing service quality and comfort, shapes their perception and loyalty. Additionally, maintaining high standards of customer health and safety ensures a secure travel environment and builds and maintains confidence in choosing IAG for their travel needs. Customers also continue to show interest in the Group's approach towards reducing carbon emissions, including new opportunities to contribute towards the Group's activities. This is evidenced by customer participation in the IAG Loyalty scheme to earn tier points and Avios from SAF contributions which launched in 2025. In order to understand how customers may be impacted by IAG's operations, we consulted commercial and customer experts from across our operating companies and incorporated the insights from customer satisfaction reviews and airlines NPS scores.

Insights from internal documentation such as Organisation Health Index (OHI) surveys for employees, customer satisfaction surveys, and third party assessments helped inform key societal issues for IAG's double materiality assessment. The IAG Sustainability team also review the work IAG and its operating companies support through corporate community contributions and its partnerships with charitable organisations.

Employee attraction, retention and engagement is important for IAG to ensure a motivated and engaged workforce, critical for operational efficiency. Remuneration and working conditions are assessed to maintain fair compensation and a safe working environment, influencing both employee satisfaction and regulatory compliance.

Diversity and inclusion is reviewed to foster a diverse workplace, enhancing innovation and reflecting societal values. Employees are provided with regular formal and informal methods to express their views, ideas and concerns with management. Finally, corporate governance ensures transparent and accountable decision-making, which is crucial

for trust and credibility in the long term. In order to understand how employees may be impacted by IAG's operations, we consulted experts in the matter from different operating companies and incorporated insights from OHI.

To understand how suppliers may be impacted by IAG's operations, we consulted with procurement experts from our operating companies and incorporated insights from EcoVadis scorecards, a provider of business ESG ratings.

ESG ratings and feedback are received from stakeholder groups at investor conference events and through our mailbox. These have been used to identify IROs in our double materiality assessment. Shareholders, lenders and other financial stakeholders are classified as report users in the double materiality assessment, and the Group incorporates material IROs to keep them updated and informed.

The environment is considered a 'silent' stakeholder. During the double materiality assessment completed in 2024, the IAG sustainability team considered the environment and its influence on the materiality of IROs. To do this, the IAG Sustainability team incorporated insights from the Group's TCFD assessment, ERM risk assessment and IAG Climate Disclosure Project submission. IATA IEnvA submissions and operating company sustainability reports (where applicable) were also used.

Working with third-party experts (Transcendent), we identified environmental impacts and aligned these to a review of external academic literature (which investigated the impacts of aviation operators on the environment) and a peer review of other aviation company sustainability reports.

The IAG Legal and Compliance team oversees the IAG Code of Conduct to ensure colleagues adhere to laws and ethical standards, which is crucial for maintaining industry integrity and protecting consumers. Modern slavery and human trafficking is a significant concern, as regulators enforce strict measures to ensure that airlines' operations and supply chains are free from such abuses, protecting human rights and upholding legal obligations. Finally, political engagement is evaluated to ensure transparency and accountability in each airline's interactions with government bodies, preventing undue influence and promoting fair policymaking.

SBM-3 Material impacts, risks and opportunities and interaction with strategy and business model IRO-1 Description of the process to identify and assess material IROs and to assess which ones are material; IRO-2 -Disclosure requirements in ESRS covered by the undertaking's Sustainability statement

Under the ESRS, materiality is determined through the identification and assessment of IROs, grouped at 'topic' level. The results

from this exercise frame the reporting obligations within each of the ESRS chapters in this Sustainability statement.

IAG performed a review of its double materiality assessment in 2025, building on the assessment conducted in 2024. The IAG Sustainability team worked with sustainability expert firm Transcendent to determine the material topics for the Group from an impact and financial perspective, as required by the CSRD. The double materiality assessment was conducted with reference to ESRS requirements outlined below.

What is a double materiality

assessment?

CSRD uses the concept of double materiality as follows:

Financial materiality

Financial materiality

How sustainability matters affect Group performance and prospects.

Impact materiality

The impacts of the activities conducted by the Group on people and the environment. The impacts have been assessed under the following stakeholder categories:

Material issues

Impact on Group performance/prospects

Customers

Employees Suppliers

Financial materiality Impact materiality

Identification and assessment of risks Identification of impacts of the business and opportunities that may cause on people or the environment. significant financial impacts on the

Group and its operations, such as cash flows, access to financing or cost of capital in the short, medium or long term.

Shareholders, lenders and other

financial stakeholders

Environment

This includes impacts related to the

Group's own processes, those of its value chain (upstream and downstream), its products and services and its commercial relations.

Public administration

(government and regulators)

Society

Impact materiality

Company

Group's impact on stakeholders and society

Methodologies and assumptions

Scope and consolidation

The Group's 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 our operations around the world. It also considered the goods and services provided by IAG's value chain.

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 impact 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.

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.

Details of how IAG has engaged stakeholders such as customers and employees in the completion of its double materiality assessment are provided in the process description below and the Strategy section of this Sustainability statement.

Preparing the double materiality assessment

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

Identification of sustainability topics

IAG commissioned Transcendent to assist the Group's review of its sustainability information and information disclosed by other aviation stakeholders to identify relevant sustainability topics for the business. Information sources included OHI and employee-engagement survey results. Transcendent prepared a comparative analysis

of material topics reported by IAG and 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 Committee (now the Environment and Corporate Responsibility Committee).

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.

Negative impacts concern any negative compliance, reputational or value chain effects from a company's operations.

Positive impacts refer to the beneficial effects that a company's operations have on society and the

environment. Positive impacts can include environmental benefits such as the reduction of carbon emissions, improvement of biodiversity or enhancement of employee wellbeing, while social benefits include the creation

of high-quality jobs, support for disadvantaged regions or community engagement initiatives.

Identification of impacts, risks and opportunities

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.

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 for opportunities (which require a quantification of the benefit of action), a subjective assessment was made using available financial information.

Determination and communication of material topics

A central group of IAG experts representing the IAG Finance, ERM 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 that 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 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.

Annual review of the double materiality assessment findings

During 2025, the IAG sustainability team reviewed the findings of the 2024 double materiality assessment with the support of analysis provided by external expertise (Transcendent). The review involved the following three-step process:

Assessment of global trends in 2025 affecting the double materiality assessment, including updates to regulation and a peer benchmarking assessment

Our objective was to conduct a review of the 2024 double materiality assessment to validate its continued relevance and identify any new IROs, or IROs that require reassessment.

To do this the assessment comprised of three inputs:

Bottom-up internal workshop with sustainability experts to review IRO definitions: For the collection of insights from the different operating company representatives, Transcendent held a workshop with

sustainability experts from operating companies to identify current priority topics and the work completed by sustainability teams across the Group in the past 12 months.

Global trends and updates on regulation: As regulatory, global, and industry trends affect IAG's operations and sustainability efforts, Transcendent identified potential drivers of change that could affect the 2025 double materiality assessment results, combining analysis of public materials with interviews with IAG sustainability colleagues.

Global trends identified were related to geopolitical tensions, economic and financial fragility and technological disruptions.

An analysis of regulations affecting IAG and its operations considered the impacts of the EU Omnibus package, which proposes a two-phase simplification to corporate sustainability reporting requirements. Consideration was also given to the competitiveness of airlines in Europe from climate policy compliance costs, using studies published in 2025.

Peer benchmark on 2024 double materiality: Transcendent presented an analysis of the double materiality results between IAG and its peers to identify reporting differences.

Top-down review of findings and proposal development

Sustainability, Finance and ERM teams reviewed the evidence presented by Transcendent and the internal workshop with sustainability colleagues from the Group's operating companies. The results were presented to the IAG Audit and Compliance Committee.

One new impact was identified ('Biodiversity loss from SAF production', a negative environmental impact), along with two new risks ('Changes to SAF mandates', and 'Lack of policy support for carbon removals'), however these were not assessed as material. Refer to section 'E1 - Climate change and emissions management' of this Sustainability statement for more information.

Proposal of findings for board approval

The final results of the review proposed no changes to the material IROs identified in IAG's 2024 double materiality assessment. This scope was approved by the IAG Audit and Compliance Committee in November 2025. IAG met with its European Works Council on 19 November 2025 to present the results of the review of the double materiality assessment.

Results of the double materiality assessment

Five of the 10 topical ESG standards as defined by the ESRS have been identified as material by IAG. These topical standards form the basis for the disclosure requirements provided in this Sustainability statement.

• Climate change and emissions management

• Diversity and inclusion

• Remuneration and working conditions

• Employee attraction, retention and engagement

• Employee health and safety

• Responsible supply chain

  • Customer experience

    • Corporate governance

    • Ethical business and regulatory compliance

    • Modern slavery and human trafficking

Material sustainability-related IROs

Climate change and emissions management

Emissions of CO2(Scope 1 and 2) from air operations

Own operations

Emissions reduction through the use of SAF

Own operations and upstream

Emissions reduction through fleet renewal

Own operations

Emissions offset through participation in market-based measures

Own operations and upstream

Employee attraction,

Employee engagement and advocacy

Own operations

Social internal

Organisational culture and sense of belonging

engagement

Diversity

Own operations

Inclusive culture Own operations

retention and

Equal opportunities and equity for all

Own operations

Employee health Employee health and safety Own operations

and inclusion

and safety

Diverse workforce Own operations

Fair, sustainable and competitive terms and conditions

Own operations

Customer experience Connecting people, businesses and countries

Downstream

Social external

Social dialogue and collective bargaining

Remuneration and

Own operations

working conditions

Enhanced customer experience through investment in new products

Downstream Enhanced customer experience through loyalty programmes Downstream

Informed customer decisions

Downstream

Ethical business and

Protection of whistleblowers

Own operations

Business conduct

regulatory compliance and upstream

Modern slavery and human trafficking

Modern slavery and

Own operations

human trafficking and upstream

Assurance of ethical practices of suppliers

Responsible supply

Upstream

chain

Unfavourable working conditions in the supply chain

Upstream

Violation of human rights standards within supply chains

Upstream

Corporate governance Sustainability embedded into overall business strategy Own operations

Disparities in treatment and opportunities among supplier workers

Upstream

Provision of internal sustainability governance bodies Own operations

Financial management incentives linked to carbon efficiency

Own operations

Positive impact Negative impact Opportunity ! Risk

Environment (Planet)

Environment (Planet)

E

EU Taxonomy Regulation

Refer to the appendix to this Sustainability statement for disclosures under Regulation EU 2020/852 (the 'EU Taxonomy Regulation').

‌ESRS E1 Climate change

SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model

Own operations

UK ETS and the CORSIA, has resulted and will continue to result in a contribution and upstream of financial funds to support carbon reduction measures. CORSIA offsetting

requirements will also enable Group airlines to procure carbon credits from projects with additional social benefits. The Group's hedging strategy enables carbon credits to be purchased for future year's obligations, accelerating emission reductions. Carbon market compliance obligations apply to upstream fuel production as well as Group airlines. Refer to E1-6 for details of support provided to IAG through the EU Fuels Eligible for ETS Support (FEETS) programme.

Own operations

Emissions reduction through

fleet renewal

Own operations

and upstream

Own operations

The release of CO2 from combustion of fossil fuels and SAF from normal operation of aircraft engines generated during taxi, take-off, cruise and landing

as well as operation of the auxiliary power unit (APU) in-flight contributes to the increase of greenhouse emissions globally, which contribute to global warming and represents a negative impact on the environment.

SAF, derived from renewable sources such as biomass, waste oils or synthetic processes, offers a more sustainable alternative to conventional fossil-based jet fuels. By integrating SAF into its fuel supply chain, IAG can reduce its reliance on fossil fuels and lower its carbon footprint towards meeting targets set under its Flightpath Net Zero strategy.

By replacing older, less fuel-efficient aircraft with newer models, IAG intends to reduce its carbon emissions, as these newer aircraft typically feature advanced technologies and aerodynamic designs that result in improved fuel efficiency.

Participation of group airlines in market-based measures, such as the EU ETS,

Climate change Emissions of CO2 (Scope 1 and 2)

and emissions from air operations

management

Emissions reduction through the use of SAF

Emissions offset through participation in market-based measures

Environmental

Location

Impact, risk

or opportunity Description

Name

Topic

Positive impact Negative impact

Strategy

E1-1 - Transition plan for climate change mitigation

IAG is targeting net zero emissions by 2050 across its Scope 1, 2 and 3 emissions. 'Net zero' means any residual emissions from IAG's operations in 2050, and IAG's share of emissions from its value chain activities, will be mitigated by an equivalent amount of CO2removed from the atmosphere via carbon removals.

IAG's 2050 Scope 1 emissions net zero target was independently assessed by the Transition Pathway Initiative (TPI) in November 2025 as 1.5°C-aligned, and our medium-term target to achieve a 20% reduction in Scope 1 emissions by 2030 has been assessed as well-below 2°C aligned. The TPI assessment compared

the milestones in the 2021 IAG roadmap with an industry-wide pathway modelled by the International Energy Agency (IEA), taking removals commitments into account1.

IAG is working to deliver its annual, 2030 and 2050 climate targets by carrying out emission-reduction initiatives, working in collaboration with key stakeholders and proactively advocating for supportive government policy and technology development.

Key measures and assumptions modelled to reduce emissions include fleet modernisation and operational efficiency measures which fall within our operational control, the use of SAF, participation in market-based measures, and use of carbon removals which depend on available policy support and market conditions.

Roadmap to net zero

IAG has published updates to its roadmap to achieve its goal of net zero emissions by 2050 every year since 2019.

IAG maintains a 2019 baseline year for its transition plan modelling, as this represents the year of peak emissions by the Group and before activity levels were impacted by the COVID-19 pandemic.

IAG's roadmap to net zero and its associated costs are included in one-year and three-year business-planning for all operating companies and to 2030 within the Group's updates to sustainability risks (as reviewed under the Group-wide ERM process).

The roadmap also forms a key part of IAG's environmental sustainability commitments, as detailed in the environmental sustainability policy.

Progress towards delivering emission reductions in this roadmap are monitored through IAG's sustainability governance. Quarterly KPIs on our carbon reduction progress are shared with the ECR Committee. The Group's environmental sustainability policy and Flightpath Net Zero strategy are available on the IAG website.

1 TPI's methodology to assess net zero targets for the aviation sector involves converting emissions data into an equivalent emissions intensity metric (grams of CO2per revenue tonne kilometre). TPI recalculates targets set by IAG using their methodology, before comparing output against industry-wide pathways modelled by the IEA.

Scope 1 carbon emissions reduction roadmap

The Scope 1 emissions roadmap below is the latest core Group scenario.

2025 updates and assumptions

During 2025 we have made updates to reflect the recovery of passenger demand to pre-pandemic levels. Annual demand growth is aligned with the long-term growth forecasts disclosed in notes 4 and 17 of the consolidated financial statements. SAF projections

include a combination of IAG's share of mandates on fuel suppliers to supply SAF in the EU and the UK, with voluntary use to achieve our 2030 and 2050 goals. The volume of carbon removals used before 2035 is aligned to future expectations under carbon market compliance obligations in the UK ETS, EU ETS and the CORSIA. The role of airspace modernisation and introduction of zero-emission aircraft has been reduced to 2050, to reflect the latest regulatory updates and statements made by aircraft manufacturers.

Key sensitivities

In creating this roadmap, the Group has applied assumptions regarding market conditions and policy support for carbon reductions. These assumptions are outside of control of the Group and may impact the deliverability of emission reduction initiatives presented. The Group therefore re-evaluates its assumptions on an annual basis and updates these where appropriate. IAG advocates that climate regulation must uphold the global competitiveness of all airlines. This includes administering appropriate, fair obligations

to reduce carbon emissions, alongside incentives that support the delivery of each emission-reduction initiative.

The emissions modelled under our demand growth scenario reflect the typical timescales for the operation of aircraft and the associated 'locked-in' emissions attributed to flying activity with these assets (which for owned aircraft are approximately 23-25 years). This is connected to our assumptions on fleet renewal where a gradual continued incorporation of more fuel efficient aircraft is included (than the aircraft they replace). These assumptions are guided by the delivery timelines for new aircraft purchased by the Group

SAF

Net reductions: ETS allowances & CORSIA offsets Gross emissions

IAG net zero target 2025 net emissions

New aircraft and operational efficiency

Net reductions: ETS removals & CORSIA removals Net emissions

Demand growth 2025 gross emissions

2050

2045

2040

2035

2030

2025

2019

29%

14.0

23.7

28.0

42%

26.9

30.7

29%

IAG Scope 1 emissions roadmap to net zero

million tonnes CO2(MTCO2)

Percentage CO2reductions

(SAF is 70% of fuel in 2050)

and statements made by aircraft manufacturers.

Carbon reduction levers in IAG's transition plan include:

E1-3 Actions and resources in relation to climate change policies

Scope 3 carbon emissions reduction roadmap

IAG expanded its commitment to deliver net zero emissions by 2050 to include Scope 3 emissions from its supply chain in 2021, which represent approximately 30% of IAG's total emissions footprint. The majority of these emissions are attributed to upstream fuel production (Scope 3.3) and purchased goods and services (Scope 3.1) associated with aircraft maintenance and servicing.

2025 updates and assumptions

IAG's Scope 3 roadmap below is created using demand growth assumptions aligned to IAG's Scope 1 emissions.

Our view of carbon reductions in our supply chain is formed from a literary review of the decarbonisation plans of suppliers, focusing on the emission categories that represent the majority of Scope 3 emissions (listed above). Reductions in Scope 3.3 emissions are aligned to IAG's SAF expectations and correspond to a decreasing volume of emissions associated with the production of fossil fuel jet kerosene.

For residual Scope 3 emissions from share of supply chain emissions, we expect to use carbon removals in line with volumes IAG expects to use towards mitigating residual emissions from its direct operations (Scope 1).

Key sensitivities

Our modelling of carbon reductions in our supply chain is aligned to the policy support needed for the transition towards SAF. The use of carbon removals to mitigate residual emissions from our share of supply chain activities also relies on suitable market conditions and appropriate government policy support.

IAG Scope 3 emissions roadmap to net zero

million tonnes CO2(MTCO2)

11.5

10.9

2.8

2019

2025

2030

2035

2040

2045

2050

Carbon reductions in our supply chain

Net emissions Gross emissions

Carbon removals

Demand growth 2025 emissions

Impact, Risk and Opportunity Management

Climate-related financial disclosures

Climate-related analysis summary

IAG applies the TCFD guidance in accordance with Listing Rule 9.8, which defines the information to be included in a Group's Annual Report and Accounts. IAG has aligned its climate risk disclosures with the ESRS framework, which is aligned to the latest guidance and standards available under the International Financial Reporting Standards (IFRS) 1 and IFRS 2 sustainability standards (which adopted the TCFD recommendations in July 2023), as well as the UK's Listing Rules.

2025 climate-related scenario analysis

In 2025, IAG repeated a climate-related scenario analysis building from its previous TCFD-aligned scenario exercise.

The analysis comprises all business areas of the Group including its main operational hubs. For the Group's airlines, the operational network and its potential exposure to climate-related risks

are also taken into account. Likewise, our value chain is included in order to assess potential climate-related risks.

Key steps taken in this assessment include:

• The IAG Sustainability team and the ERM team reviewed all climate-related risks and opportunities and potential impacts to 2028 and 2040. The impacts of principal and other key risks are quantified as part of the Company-wide ERM process that receives Board oversight;

• Operating airlines modelled compliance-related costs, including from the UK and EU ETS and CORSIA, to 2050;

• A climate-related scenario analysis was conducted with 2040 as the main time reference;

• In 2025, we undertook impact analysis at a hub level, specific to each of our operating hubs, in relation to understanding climate-related risks and opportunities;

• Ongoing analysis was carried out on the Flightpath Net Zero strategy to 2050; and

• Ongoing alignment between the double materiality assessment and ERM findings.

This scenario work informs strategy, planning, risk management and financial management.

IAG takes a proactive approach to managing environment-related risks and opportunities and is committed to managing their regulatory, reputational, financial, market and technology aspects.

Our climate-related assessment in 2025 was a structured, qualitative discussion of potential climate-related impacts and business responses, using the latest evidence and analysis from reputable sources like the UN, EUROCONTROL, the European Environmental Agency, and Climate Action Tracker (CAT).

The 2025 analysis was conducted in line with the ESRS standard (ESRS 2), which is based on the TCFD guidance update published in 2021.

For this analysis, a Representative Concentration Pathway (RCP) temperature scenario was chosen for transitional risks, in recognition of IAG's climate targets and the governments in the countries where the Group operates, which are committed to upholding the aims of the Paris Agreement. Under the RCP

2.6 scenario, equivalent to limiting global warming to 2°C by 2100, a strong global cooperation for the development of mitigation measures is expected, which can lead to a rapid decarbonisation of the economy. An intermediate emissions scenario, RCP 6.0 warming scenario, was chosen for physical risks, based on the latest UN projections. In this scenario, moderate mitigation plans are expected but not strong enough to avoid the major impacts of climate change. Finally, an RCP

8.5 scenario was used to help us understand our capability to adapt to a world where our operations would change significantly due to very high temperatures and extreme volatility in daily weather conditions.

The year 2040 was chosen as the main timeframe in alignment with IAG's ERM sustainability risk assessment.

The climate-related assessment exercise involved representatives from the ISN, which includes colleagues from Strategy, Treasury, Flight Operations, Finance, Government Affairs, Commercial Planning, Investor Relations, People, ERM, IAG Transform

and IAG Loyalty, as well as sustainability representatives from all operating airlines.

The Group Sustainability team collated inputs, which were reviewed by the IAG Sustainability Steering Group and the Environment and Corporate Responsibility Committee.

The Group remains resilient to the most material climate-related impacts. These have been quantified and mitigation plans for each impact have been embedded into financial and strategic planning. Industry-wide changes also create opportunities

for the Group to become more resilient than its competitors. To address significant uncertainty around future policy, technology and market trends, IAG is repeating this climate-

related analysis annually. We will keep implementing action plans in coming years to further improve resilience to wider changes.

Risks and opportunities

Climate-related risks are assessed and managed within the ERM framework as described in the Risk management and principal risk factors section of this Annual Report, under the principal risk 'sustainable aviation'. Transitional risks primarily affect airline activity between European destinations, which are calculated based on flights covered by the EU ETS, UK ETS and Swiss ETS. This represented around 26% of IAG's Scope 1 emissions in 2025. Physical risks could affect IAG's operations across its global network, reflecting the global nature of climate change.

IAG considers the relevant risk factors that could impact each risk by region and timescale. Such variability may arise from fragmented policy definition, scope and implementation, changeable market perceptions, lack of infrastructure or

IAG considers its mitigation strategy for each risk accordingly. Please refer to the 'Climate-related risk impacts and mitigation opportunities' table for more information.

The carbon reduction targets in the Flightpath Net Zero strategy are the key measures for assessing the mitigation of or resilience to these risks, along with consideration of these risks in relevant governance processes. The external risk environment, materiality of risks, mitigation actions and the KPIs for these mitigating actions are reviewed regularly.

The table below lists risks assessed through the ERM and the double materiality assessment. The most material risks are policy risks. Risk timeframes align with corporate planning timelines.

Climate-related opportunities are identified as part of the double-materiality assessment conducted in 2024 and reviewed in 2025. These opportunities refer to the potential positive effects derived from the deployment of efforts

to mitigate and adapt to the effects of climate change, such as through resource and cost efficiency, the adoption and utilisation of low-emission technologies, the development

of new products and services, and reinforcing resilience along the supply chain. Opportunities are identified as potential actions to be taken at Group level to reduce our exposure to climate-related risks. The opportunities presented below align with those identified in IAG's double materiality assessment, and are managed within the operating companies per an ERM

Key: short term (S) is 1 to 3 years, medium term (M) is up to 5 years, long term (L) is more than 5 years.

1. Risks or opportunities might be increasing (up), decreasing (down) or stable from a business perspective. IAG calculates this based on central strategy modelling and economic forecasting, and the trend shown is based on an end-of-year assessment, relative to in-year review.

2. The scenario dependency describes whether the cost impact for each risk description relies on the temperature scenario or policy transition

Climate-related scenario analysis

IAG continues to analyse risk and transition scenarios to inform mitigation plans to 2030. Key parameters for defining scenarios are listed below, based on UN, Climate Action Tracker (CAT), the UK Climate Change Committee and internal analysis. These are kept under review.

1. Representative Concentration Pathway (RCP), a globally recognised scenario for physical changes under different temperature ranges

2. A 41% drop by 2030 represents an orderly transition. The IPCC also represents a disorderly transition ((27)%) because smaller global emissions reductions to 2030 require rapid carbon reductions after 2030 to return to 1.5°C by 2100

Climate-related risk impacts and mitigation opportunities

Risks identified from the Group's climate-related assessment are mapped to IROs identified through IAG's double materiality assessment and risks included in the ERM. No risks were identified as financially material for IAG under IAG's double materiality.

Related double materiality assessment topic

Climate change and emissions management

Responsible supply chain

Ethical business and regulatory compliance

Primary Group operating company activity exposed

Airlines

Loyalty businesses IAG Cargo

Waste management and

circular economy

Resilience to acute weather events

Days of lost revenue due to additional flight disruption and associated mitigation and passenger compensation costs

Existing operational resilience processes can minimise extra disruption (for example, disruption caused by turbulence during flights)

Review of the exposure of Group activities to temporary climatic impacts that may affect our ability to operate. Examples include severe weather events (turbulence, depressions, high precipitation) that alter flight schedules and lead to cancellations or diverted flights

Resilience of routes and assets to chronic climate changes

Revenue changes resulting from a different route network or a different frequency of flights to climate-affected destinations; changes in operational maintenance costs

Scale and flexibility in route network allows for adjustment without material impact to plan. Aircraft are mobile assets that can be moved to different locations to take into account, for example, a higher incidence of hurricanes in the Caribbean

Location-based assessment of high-risk destinations susceptible to the impacts of chronic climate and atmospheric changes.

Assessment of airports with greater exposure to rising sea levels that may affect our ability to operate there, or sell holidays to related destinations. Measured as revenue loss and increased operating cost to the business

Customer spend due to perceptions of ESG progress in IAG or the aviation sector

Customers change frequency

of flying, duration of trips or spend less relative to other carriers or other travel modes

Delivering emissions reductions, expanding customer communications, support

for global policies (CORSIA), working via trade associations to advance solutions

Assessed the impact of potential cost increases of sustainable services for customers and loyalty ratios due to the connection with the brand through shared values

Perceived quality of offset and removal projects

Exposure to sudden variability

in prices, cost of CORSIA credits, scale of growth in costs by 2050 due to available volume of removals to deliver net zero

Financial planning to manage price volatility, governance to ensure offset quality, a removals roadmap based on external evidence, advocacy for policy support and monitoring regimes

Measured as an increased operating cost based on forecast assessment of CORSIA market prices and IAG CORSIA obligations

Activism and direct action protests for climate inaction

Risk of shareholder activism, where NGOs or activists may legally challenge the Company for perceived climate inaction, potentially resulting in costly legal battles and reputational damage

Supply chain readiness

Sustainability compliance or technology change causes an unplanned change in the cost of goods and services provided to IAG

Implementation of industry best practices and regulatory requirements of the countries in which we operate. Increasing transparency of information

to our clients and stakeholders and maintaining active communication with them

Supply Chain Sustainability Programme, which includes ESG scorecards and supplier risk screening

Assessed the likelihood of

action against the aviation sector. IAG has been a key player in influencing the adoption of ambitious goals within the sector and maintains a very active relationship with its key stakeholders

Measured as an increased cost of goods and services purchased by IAG from its suppliers

SAF delivery against committed offtake agreements

SAF deliveries from agreed commitments fail to materialise due to weak market supply or failed project development, exposing IAG to market-priced SAF, buyout penalties or carbon costs

Securing SAF deals and taking equity in early-stage projects where relevant. Monitoring SAF project development and seeking volume above target levels

Measured the cost of SAF using market prices to achieve IAG's 2030 SAF target

Litigation against claimed carbon reductions from offsetting

Litigation for the use of credits towards voluntary or compliance offsetting that do not deliver claimed emission reductions

and lead to legal cost

Due diligence conducted

on carbon offsetting projects and internal guidance prepared for external communications

Assessed using analysis of the most recent litigation affecting the aviation sector and a view of risk to IAG

Demand impact of EU and UK climate policy

Pass-through of industry-wide costs affects ticket prices and, therefore, demand

Impacts of emerging policy assessed as part of longer-term financial planning and strategy

Measured carbon market and fuel costs as a percentage of IAG total ESG costs in 2030

Resilience to changes in CORSIA/ETS pricing

Exposure to long-term price increases affects compliance costs

Policy asymmetry across regions

Changing numbers of customers relative to other carriers who are under more favourable or more restrictive policy regimes

Hedging strategy to reduce the impact of price volatility; using carbon prices in fleet and financial planning

Advocacy for global solutions such as the ICAO Long-Term Aspirational Goal agreed in 2022 and CORSIA

Compared carbon market price forecasts on the Group's route network

Assessed by reviewing different regulatory obligations by country and determining their implications for IAG

Extra regulation on activity rather than emissions

Industry-wide taxes or levies increase operating costs and have potential demand impacts; demand management measures equate

to lost revenue. Noise restrictions are not included in this risk but are reviewed as a separate risk through the ERM framework

Advocacy in support

of emissions-reducing measures like SAF and against economically inefficient measures like taxes

Assessed the potential impact of regulatory requirements by policy and jurisdiction

Lack of supporting SAF infrastructure or policy

Higher prices of SAF in core markets due to lack of investment in SAF production or cost of inputs

Advocacy for SAF policy,

e.g. via UK Jet Zero Task Force, and a strategy to procure SAF in regions where supportive policy exists

Assessed our exposure to market-priced SAF relative to our ability to contribute to the development of appropriate SAF policy and the design of effective SAF incentive schemes

Lack of carbon removal policy support

Access to and readiness for lower-emission technologies

Higher ETS costs if technology access is restricted or technology development is slow

Delivery of contracted SAF supply

Exposure to changing unit prices of SAF in core markets

IAGi Ventures team aligns research and work with the Flightpath Net Zero strategy

Securing SAF deals and taking equity in early-stage projects where relevant

Assessed the marginal cost of different carbon removal

technologies and the role they may play in IAG's climate transition plan

Assessed the state of global SAF supply and supply chain logistics, with volumes required to deliver IAG's share of SAF mandates and IAG's 2030 SAF target

1 Sourced from: Teoh, R., Engberg, Z., Schumann, U., Voigt, C., Shapiro, M., Rohs, S., and Stettler, M. E. J.: Global aviation contrail climate effects from 2019 to 2021, Atmos. Chem. Phys., 24, 6071-6093, https://doi.org/10.5194/acp-24-6071-2024, 2024.

Climate-related opportunities and financial impacts

Below, we have detailed opportunities identified from the Group's climate-related assessment and their relationship to IROs identified through IAG's double materiality assessment

Climate-related assessment summary

Potential financial impacts

Strategic investment in SAF

Securing volumes of SAF to meet internal and regulatory targets not only reduces IAG's climate impact, but also offers significant potential operating cost reduction per year against the Group's carbon market obligations or potential SAF mandate penalties (passed through from fuel suppliers regulated under the EU and UK SAF mandates)

Incorporation of new and more efficient fleet

By introducing new, more fuel-efficient aircraft and engines to the fleet, Group airlines are able to mitigate compliance costs incurred under carbon markets, which regulate carbon emissions on the routes they operate

Screened the market to identify supportive policy incentives to enable a green transition, which will help IAG secure supply and avoid market price exposure

Updated internal carbon pricing modelling to assess the contribution of new, more fuel-efficient aircraft towards delivering IAG's climate objectives, and the reduction in associated operational costs

Climate-related assessment summary

Potential financial impacts

Investment in lower emissions technologies

Implementing new technologies, such as lighter on-board equipment or software to enable better

matching of fuel volumes to in-flight needs, presents an opportunity for higher fuel efficiency, which can help reduce operating costs

Analysed the positive contribution new technology brings to direct operations, reducing fuel consumption and waste generation, for example on cargo storage solutions such as straps and pallet design. Assessed the impact of investment in carbon removals for developing the market signal needed to scale up future supply

Strategic capital investment and startup engagement programmes

In its pursuit of net zero carbon emissions by 2050, IAG has a significant financial opportunity in investing in innovative solutions to address its emissions. This involves exploring partnerships and cutting-edge technologies to accelerate progress towards this goal

Assessed the contribution of different technologies in our operations towards achieving our climate objectives, such as IAG's collaboration with ZeroAvia to explore potential for hydrogen-powered aircraft technology

Investing in product innovation and sustainable materials transition

By developing new products, such as those focused on on-board waste reduction, IAG can capitalise

on consumer demand for sustainable alternatives and reduce operational costs in the long run

Assessed the impact of supporting product research and development for the transition towards more sustainable supply chains

E1-2 - Policies related to climate change mitigation and adaptation

Environmental sustainability policy

The environmental sustainability policy sets out IAG's commitment to recognise, manage and reduce our impact on the planet. This includes conducting our business in an environmentally responsible manner and complying with relevant environmental legal requirements and other obligations. This document is available to view on the IAG website.

We embed sustainability into our business strategy and decisions and are committed to:

• Using SAF and carbon market programmes to support reductions in our carbon emissions

• Regularly engaging with key stakeholders to assess our most material issues

• Minimising negative environmental impacts via the efficient use of resources and energy, and reducing emissions, noise and waste where possible

• Implementing environmental management systems aligned to ISO 14001 and robust environmental governance processes

• Monitoring, reporting and receiving external verification of our material environmental impacts

• Ensuring robustness and transparency in our nonfinancial disclosures

• Ensuring our external positions reflect our material issues and targets

• Working to ensure that our environmental strategy and targets are aligned with the latest scientific understanding of impacts

• Creating awareness of our environmental actions with our key stakeholders

• Taking action to drive change and create a more sustainable airline industry

• Supporting appropriate research programmes to develop understanding of non-CO2climate impacts and potential mitigation options

Proposed timescales for the delivery of the Group's climate ambitions are set out in the environmental sustainability policy and align to the transition plan detailed in this Sustainability statement. The environmental sustainability policy also details timescales for action to address the impacts of waste and noise from our operations.

IAG reviews its commitments under this policy against available policy support and market conditions on a regular basis. In 2026 IAG will perform an update of this policy as part of our sustainability governance.

Group instructions

IAG issues Group instructions to its operating companies to align actions towards delivering our climate change

mitigation and adaptation strategy. The Group Sustainability Director is responsible for setting this strategy, with the approval of the Chief Financial and Sustainability Officer and

the CEO, with oversight by the Environment and Corporate Responsibility Committee. The heads of sustainability for each operating company report to IAG quarterly on material KPIs used to measure IAG's progress. The Group instructions include guidance for the cost accounting of sustainability measures and impacts in the completion of business-planning, and how

to engage with suppliers on sustainability issues (detailed under the third party code of conduct since December 2024, and its predecessor the supplier code of conduct).

Under the IAG code of conduct, IAG and its operating companies are committed to immediately reporting any situation that could pose a risk to the environment. This underlines our commitment to ensuring the health, safety and security of our workforce and to complying with applicable environmental laws and regulations everywhere we operate to minimise our environmental impact.

E1-3 - Actions and resources in relation to climate change policies

IAG's environmental sustainability policy sets out our approach to monitoring compliance with environmental policies and how we approach associated risks and their management across Group businesses. Actions taken under this policy to address the impacts of climate change include:

• Our Audit and Compliance Committee oversees IAG nonfinancial disclosures;

• Sustainable aviation risks have been identified as a principal risk and are reviewed and assessed as part of our Group-wide ERM processes;

• The IAG Code of Conduct and third party code of conduct set out our commitment to doing business ethically, transparently and with integrity and to maintaining standards of sustainability. We want to work with suppliers who share our values and ways of working. Mandatory training informs our colleagues. IAG has embedded sustainability-specific governance into the Group;

• Our Board of Directors provides oversight and direction

  for environmental programmes through the ECR Committee.

• The IAG Management Committee provides the key forum for reviewing and challenging these programmes and setting strategy;

• The IAG Sustainability Steering Group of senior representatives from across the business provides oversight of sustainability strategy, targets, initiatives and programmes.

• The IAG sustainability strategy sets out policies

  and objectives, strategy, targets, performance metrics and our approach to risk management, compliance and stakeholder engagement; and

• The IAG Sustainability team annually reviews the Group's decarbonisation roadmap and updates the contribution of each decarbonisation lever, reflecting both the actions implemented and the initiatives approved throughout the year.

  As categorised under our transition plan, and detailed in our Flightpath Net Zero strategy, the actions taken to address the impacts of climate change are focused on the following areas:

  New aircraft and operational efficiency New aircraft

  IAG is investing around €19.0 billion between 2026 and 2033 for 217 new efficient aircraft. These aircraft will increase the fuel efficiency of IAG's operations compared to the aircraft they replace. IAG is also supporting the development of new aviation technologies, which includes investment in ZeroAvia since 2020, a leading developer of hydrogen-electric aircraft.

  2025 examples of emission reductions achieved from new aircraft include:

• Iberia and Aer Lingus advanced their fleet modernisation programme with the introduction of the Airbus A321XLR, a new-generation long range aircraft that delivers up to 30% higher fuel efficiency and reduced CO₂ emissions compared to previous models, based on the manufacturer's claims;

• British Airways received new aircraft including one 787-10 Dreamliner, which delivers up to 25% improved fuel efficiency than the aircraft it is designed to replace, plus 12 short-haul aircraft (seven A320neo and five A321neo); and

• IAG confirmed the allocation of 50 Boeing 737s to Vueling, which are scheduled to be delivered from late 2026.

Ground-based operational efficiencies are also being delivered through equipment upgrades to ground vehicles.

Fuel efficiency programme

Each airline has a fuel efficiency programme that supports flight planning and execution, which enables pilots to operate more efficient flights with high safety standards. Measures to improve operational efficiency employed by our airlines include the use of single-engine taxiing and delaying engine startup to save carbon emissions prior to take-off. IAG brings together sustainability colleagues, fuel management experts and pilots in the Carbon Efficiency Working Group to leverage this expertise and share best practice to develop fuel efficiency initiatives towards our carbon reduction objectives.

In 2025, IAG implemented a new fuel management tool (Open Airlines) to support our goal of strengthening the Group-wide fuel efficiency programme. The adoption of this tool is designed to enhance engagement with flight crews by providing detailed operational insights, while delivering fuel monitoring systems that support aligned reporting across operating companies.

This enables the Group's airlines to provide necessary fuel data to comply with carbon market requirements (under the UK ETS, EU ETS, CORSIA and ReFuelEU policies). Through this strengthened programme, we calculate that a 25% increase in total fuel saved could be achieved by 2030, compared to savings achieved in 2025.

As part of the efficiency programme, we also seek innovative solutions that help enhance the performance of our operations. In line with this ambition, in 2025 Vueling signed a partnership with MicroTau, a technology manufacturer that aims to deliver up to a 4% reduction in fuel consumption by decreasing aerodynamic drag on aircraft through the installation of a biomimetic film with micro-riblets that mimic shark skin texture.

Sustainable aviation fuels

SAF is the main term used by the aviation industry to describe a non-conventional (non-fossil derived) aviation fuel. SAF is the preferred IATA term for this type of fuel although when

other terms such as sustainable alternative fuel, sustainable alternative jet fuel, renewable jet fuel or biojet fuel are used, in general, the same intent is meant.

'Biofuels' typically refers to fuels produced from biological resources (plant or animal material). However, current technology allows fuel to be produced from other alternative sources, including non-biological resources; thus, the generic description of SAF is used.

The chemical and physical characteristics of SAF are almost identical to those of conventional jet fuel. They can be safely mixed with the latter to varying degrees, use the same supply infrastructure and do not require the adaptation of aircraft or engines. Fuels with these properties are called 'drop-in

fuels' (i.e. fuels that can be automatically incorporated into existing airport fuelling systems). This definition is available on the IATA website.

The feedstocks for these fuels, currently waste materials such as used cooking oil, absorb CO2in their growth cycle before this carbon is recycled into fuel and then emitted during the flight. SAF produces similar levels of carbon dioxide to conventional aviation fuels when burned, but the carbon dioxide generated is already part of the carbon cycle and is not extracted from the ground specifically for creating aviation fuel. This means that using SAF results in a reduction in carbon emissions compared to the traditional jet fuel it replaces over the lifecycle of the fuel.

There are currently eight certified pathways to making SAF based on use of specific technologies and feedstocks. These processes are certified to international standards to ensure the fuels are safe to use. IAG requires its SAF to comply with strict sustainability certification schemes.

Emission reductions from the use of SAF are measured as the reduction of carbon emissions on a GHG lifecycle basis, typically by 80% or more compared with the fossil jet fuels it replaces. SAF also contains fewer impurities (such as sulphur), which enables an even greater reduction in sulphur dioxide and particulate matter emissions than fossil-based fuels.

Supporting advanced SAF pathways

IAG continues to make direct investments in new and innovative SAF production capacity, catalysing the wider development of the SAF market. These investments are typically coupled with SAF purchase agreements, which are critical to the financial viability of the new SAF production capacity. In September 2025, IAG participated in the Series B funding round for OXCCU, a UK-based SAF innovator, and invested alongside oneworld alliance member airlines in BEV, to launch a new investment fund designed to address the limited availability and high cost of today's SAF.

IAG is working with technology developers to establish a range of SAF supply options, including the projects listed in this section.

Co-processed SAF involves renewable oils (HEFA), which are fed into a traditional petroleum refinery along with crude oil. The refinery uses its existing hydroprocessing units to convert both streams into jet fuel and other products. The result is a small percentage of SAF produced without building a separate biofuel plant, typically making it cheaper and faster to scale

Role of SAF in the IAG transition plan

SAF is an important part of IAG's transition plan to achieve net zero emissions by 2050. In 2021, the Group set a target of using 10% SAF a year by 2030, dependent on appropriate government policy support. IAG continues to monitor SAF projections and available policy support to deliver this target. This includes IAG's share of mandates on fuel suppliers to supply SAF in

the EU and the UK and the suitability of market conditions for voluntary SAF use above our share of these mandates.

IAG expects to use SAF for 70% of its total fuel in 2050, which will contribute to a 42% reduction in lifecycle CO2emissions in the same year.

Delivering on our commitment

In 2025, Group airlines used more than 291,000 tonnes of SAF, an increase of 79% versus 2024. This saved more than 796,000tCO2on a lifecycle basis compared to using conventional aviation fuel, accounting for 3.3% of IAG's total fuel.

SAF governance in IAG

The Group administers a SAF Management Group comprising of colleagues from IAG Sustainability, Group Finance and representatives from each operating company. The SAF Management Group meets monthly and reports to the SAF Steering Group. Refer to section 'ESRS 2 General Disclosures' of this Sustainability statement for more details.

Supporting emissions reductions for our customers

To support the scale-up of SAF production globally, IAG offers customers the opportunity to contribute towards SAF costs to support their own Scope 3 emission reductions. By partnering with its corporate customers, IAG is able to purchase more SAF and reduce its Scope 1 emissions (accounting for the emission reductions from SAF on a lifecycle basis). Corporate customers who purchase SAF Scope 3 emission certificates claim reductions towards their Scope 3 lifecycle emissions from the industry, commensurate to a proportion of their corporate flying. These are typically used to reduce emissions under Scope 3 category 4 (upstream transportation and distribution) or 6 (business travel).

In April 2025, IAG extended our co-funded purchase agreement for SAF with Microsoft by five years, increasing the volume of SAF by 39,000 tonnes (equating to a reduction in lifecycle carbon emissions by approximately 112,000tCO2). Iberia also launched a dedicated SAF initiative designed to promote collaboration among its corporate customers. Refer to section 'S4 Consumers and End-users' of this Sustainability statement for more information.