CHILE Trends and Developments Contributed by: Juan Pablo Halpern, Arturo Pino, Francisca Zuccone and Carolina Schiele, Clyde & Co Chile
guidelines, specifying whether they align with international criteria. Examples of such criteria include the recommendations of the Commit - tee of Sponsoring Organizations of the Treadway Commission (COSO), the Control Objectives for Information and Related Technology (COBIT), and the standards set by the International Organization for Standardization (ISO). Also, under the new rule, companies must report on their IFRS Section 1 and IFRS Sec - tion 2 financial and climate-related sustainability information, in compliance with the Internation - al Sustainability Standards Board (ISSB) of the IFRS Foundation. Regarding gender equality, the regulations now mandate reporting on the company’s personnel by sex, distinguishing the number of employees working regular or part-time hours, specifying whether they are working remotely, and identify - ing any special work arrangements for employ - ees responsible for caring for children under 12 years old or carrying other family obligations. Additionally, companies must now report on the procedure for electing their board of directors, regarding gender issues. Specifically, they must disclose whether the process ensures diversity among nominees, including whether it requires that no more than 60% of the candidates on the list belong to the same sex. Companies must also report on the implemen - tation of sexual harassment prevention training and disclose the number of complaints received, specifying the sex of the complainant. Finally, regarding sanctions for non-compliance with annual report publication requirements - including the latest requirements mentioned above - it is worth noting that at the end of
2023, Law No. 21,595 on Economic Crimes was enacted. This law introduced criminal penalties for directors, managers, or main executives who improperly disclose company information on their annual reports, with punishments rang - ing from medium to maximum degrees of minor imprisonment, equivalent to 541 days to five years. As noted, Chile has significantly strengthened its sustainability regulations, implementing more rigorous requirements for companies to enhance transparency, accountability, and adherence to international standards. These measures reflect Chile’s commitment to fostering a more sustainable corporate land - scape, aligning with global Environmental, Social, and Governance (ESG) trends. By integrating sustainability into corporate governance, Chile positions itself as a forward-thinking market, not only keeping pace with leading economies but also enhancing its appeal to institutional inves - tors who increasingly prioritise ESG-conscious business practices. In recent years, investors have seen a notable shift, favouring companies that demonstrate strong sustainability credentials, as they recog - nise the long-term value of responsible corpo - rate conduct. In line with the above, sustainabil - ity-driven investment is no longer just an ethical or reputational concern; it has become a strate - gic advantage. By implementing these measures, Chile enhanc - es its position in the global economy, ensuring that its businesses remain attractive to inves - tors seeking stable and responsible investment opportunities.
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