CHILE Trends and Developments Contributed by: Joaquin Schafër, VGC Abogados
The third bill is No 17.520-17 and was presented in May 2025. This bill has four titles and seeks to establish a comprehensive and general regula - tory framework to promote HRDD for compa - nies operating in Chile. As in previous drafts, the regulation seeks to be applicable to corporations according to their size. In its first title, it estab - lishes the bases and objectives of the regulation, which is framed in the UNGPs and in the interna - tional treaties signed and ratified by Chile on the matter. Its second title refers to the obligations of companies and is divided into obligations com - mon to all corporations subject to the law and obligations only applicable to large ones. The third title focuses on the mechanisms for public complaints against non-compliant companies. Finally, the fourth title establishes the sanction - ing regime, including fines for offending com - panies. Despite the differences and similarities between the bills, as well as the fact that they are in the early stages of legislative discussion in the National Congress, the truth is that HRDD is a discussion from international and comparative sources that has come to Chile to stay. Compa - nies are increasingly exposed to these require - ments, and their successful implementation is key to developing a business model that is sensitive to the demands of the market and the public. The recommendation: look to the future, with a preventative approach Corporate sustainability is part of an interna - tional debate that has been echoed in Chile. In order for national companies to successfully insert themselves in a globalised world, it is essential that they remain attentive to internal and external regulatory changes. In this sense, HRDD has positioned itself as an essential tool for a business to be sustainable and comply
with economic development, protection of the environment and respect for human rights. Con - sidering the regulatory risks identified, one may consider that the best way forward for business is to adopt a preventative approach to the mat - ter. • First, get informed. It is key for corporations to keep up to date on regulatory develop - ments and legislative discussions that are taking place, both with the bills in the Nation - al Congress and with the elaboration of the third NAP on Business and Human Rights. Participating in the debate is essential for companies, as industries have different con - cerns, and collaborative work on this issue is key. Also, any regulatory change implies an implementation cost for the company, so early identification can be very helpful. • Second, understand. Human rights obliga - tions are traditionally understood as obliga - tions for states, not for corporations. While this is true, it is important for companies to realise that human rights are not a foreign language to them: they are obligations and requirements with which they are already familiar. Complying with the environmental obligations set out in a permit or licence is also a way of complying with stakeholders’ human rights. It is key to train and understand the dynamism of what is meant by respecting and promoting human rights. • Third, optimise. Do not start from scratch. The successful implementation of HRDD will depend on the organisational characteristics of each company and the challenges that different industries face. In this sense, the risk matrices that companies have as a starting point for planning and implementing human rights obligations in the company are essen - tial.
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