CHILE Trends and Developments Contributed by: Juan Pablo Halpern, Arturo Pino, Francisca Zuccone and Carolina Schiele, Clyde & Co Chile
Chile’s Progressive Push for Sustainability, Greenwashing Regulation, and Gender Diversity in Corporate Leadership Various institutions and market participants have adopted measures to mitigate the impact of business activities within the framework of sustainability strategies (ESG). In this context, sustainability refers to the effective management and reduction of risks and impacts arising from corporate operations, taking into account envi - ronmental, social, and governance factors. Its ultimate objective is to generate long-term value - not only for partners and shareholders but for all stakeholders involved. Against this backdrop, the aim is to provide a brief overview of recent developments in Chile’s national sustainability landscape. Chile has introduced new regulations and amended existing ones as part of its commit - ment to the United Nations 2030 Agenda for Sustainable Development. Further regulatory developments are expected to support the adoption of sustainability standards. Through this evolving legislative framework, Chile seeks to strengthen its commitment to sustainability and position itself as a credible actor aligned with global ESG trends. In the sections that follow, local developments in sustainability, with a focus on recent and proposed legislation concerning sustainability reporting, greenwashing regulations, and the promotion of women’s participation on corpo -
Currently, open companies and securities issuers - as well as certain special legal enti - ties - are required to publish annual reports in accordance with General Rule No. 461 of 2021, which amended General Rule No. 30 of 1989, both issued by the Financial Market Commis - sion (CMF). Annual reports must include information such as ownership, controllers, corporate govern - ance structure, board operations, key execu - tives, business models, assets, and overall strategy, among other key details. Additionally, companies are required to disclose sustainabil - ity-related information, such as their “mission” and “vision” , risk management approach, stake - holder relationships, labour, and gender policies, and whether they have whistle-blower channels, among other aspects. However, at the end of 2024, General Rule No. 519 amended the existing regulation to expand the scope of sustainability reporting, particularly regarding adherence to international standards and gender equality. From now on, companies must report on their adherence to international principles and crite - ria, including corporate governance practices (such as the S&P Dow Jones policies, the Global Reporting Initiative Standard (GRI), or the OECD Principles of Corporate Governance). Addition - ally, they must disclose sustainability-related information based on metrics developed by the Sustainability Accounting Standards Board (SASB) and indicate whether they have an inde - pendent sustainability verification system, which could be fulfilled through certifications (such as ISO, BCorp, Zero Waste, or others). In the same spirit, the new rule also mandates disclosure of the company’s risk management
rate boards are examined. Sustainability reporting
Chile has long required open companies to pub - lish annual reports, but has recently strength - ened regulations mandating broader disclosures on sustainability issues, as detailed below.
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