CHILE Law and Practice Contributed by: Franco Acchiardo, Francisca Castro, Hugo Prieto and Manuel Diumenjo, Clyde & Co Chile
from the sixth year after the law’s enactment, using objective indicators to ensure that at least 80% of companies adopt the suggested quota and that less than 5% have no women on their boards. Chile is advancing key developments in cor - porate governance, with a particular focus on ESG reporting, compliance, board diversity, and cybersecurity. ESG and Sustainability Reporting The CMF continues to expand ESG disclosure requirements. Under General Rule No. 461, pub - licly traded companies must report on climate- related risks in line with international standards, such as those from the Task Force on Climate- Related Financial Disclosures (TCFD). As a result, companies are expected to embed car - bon neutrality goals, environmental risk manage - ment, and supply chain sustainability into their corporate governance frameworks. White-Collar Crime and Environmental Accountability The enactment of Law No. 21,595, fully effec - tive since 2024, significantly reformed Law No. 20,393 on the criminal liability of legal entities. The updated framework broadens the scope of crimes attributable to companies and their repre - sentatives, increases penalties, and emphasises environmental crimes and corporate responsi - bility in governance and compliance structures. Gender Diversity on Boards A bill entitled “More Women on Boards” has been approved by the Chamber of Deputies and is currently under discussion in the Senate. This bill proposes a suggested maximum quota of 60% for the gender with greater representation on company boards. The CMF will assess the adoption of this policy every four years, starting
from the sixth year after the law’s enactment, using objective indicators to ensure that at least 80% of companies adopt the suggested quota and that less than 5% have no women on their boards. Cybersecurity and Data Protection Boards are increasingly expected to address cybersecurity and data protection governance, as digital threats to the financial and corporate sectors intensify. Chile enacted Law No. 21.719, a new Personal Data Protection Law aligning with international standards (like the GDPR). It establishes a Personal Data Protection Agency, expands individual rights (eg, access, deletion, portability), mandates data protection officers, and requires breach notifications. It comes into force on 1 December 2026. Under Law No. 21.663, in effect since 1 January 2025, Chile cre - ated the National Cybersecurity Agency (ANCI) and established strict obligations for critical infrastructure operators (OVIs), including man - datory reporting and implementation of cyber - security management systems. Greenwashing Regulation A bill to prevent and punish greenwashing is cur - rently under discussion in the Chamber of Dep - uties. The proposed legislation mandates that companies advertising their products or services with a focus on sustainability must provide com - plete, truthful, verifiable and accurate informa - tion. Failure to do so would result in penalties. Additionally, practices carried out merely in com - pliance with legal and regulatory provisions or mitigation, repair, compensation or voluntary commitments may not be advertised as sus - tainable.
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