CHILE Trends and Developments Contributed by: Juan Pablo Halpern, Arturo Pino, Francisca Zuccone and Carolina Schiele, Clyde & Co Chile
In addition, the bill will prohibit companies con - victed of environmental damage or sanctioned by the Superintendence of the Environment from advertising on sustainability-related issues. The same will apply to companies whose partners, shareholders, directors, or managers have been convicted, among other offences, for anti-union practices or violations of fundamental workers’ rights. This initiative aligns with the standards set by the European Union, which has already enacted regulations to address greenwashing. In con - trast, other countries in Latin American - such as Mexico, Brazil, Argentina, and Colombia - have yet to implement specific legislation tar - geting greenwashing. These countries primarily address these claims through their consumer protection laws. If approved, Chile’s bill would position the coun - try as a regional leader in sustainability govern - ance, establishing a dedicated legal framework to combat greenwashing as part of broader cli - mate action efforts, ensuring stronger account - ability and transparency to consumers and the market. In this way, the country aims to demonstrate its commitment to sustainability and position itself as a player capable of adhering to the ESG prin - ciples that are currently setting the standard in the global market. Bill to increase the presence of women on boards of directors In 2022, a legislative proposal was introduced with the aim of establishing mandatory mini - mum quotas for women’s representation on the boards of directors of specific private organisa - tions. This initiative was designed as a concrete step toward achieving gender equality, recognis -
ing the need for greater female participation in senior leadership roles within private companies. The gender quota bill is set against the backdrop of persistently low female participation in senior management positions, a challenge that spans across all industries. In this regard, Chile falls below the average of OECD countries in terms of women’s representation in leadership roles, highlighting the need for systemic change. In this scenario, said project was inspired by successful policies implemented in various European countries, including Iceland, France and Norway, where similar gender quotas have significantly increased women’s presence in executive positions. By following these interna - tional examples, the proposed legislation seeks fostering more inclusive and diverse corporate governance. This approach seeks to adopt gender diversity in corporate leadership, promoting more inclusive decision-making while holding organisations accountable for their progress in achieving equi - table representation. In this sense, the gender quota bill recognises that organisations with more women in executive positions often achieve stronger financial per - formance, adopt a more inclusive and dynamic workforce, enhance their ability to navigate chal - lenges, and are better positioned to attract new business opportunities. If enacted, the law will establish minimum quo - tas for women’s representation on the boards of publicly traded companies - those listed on the stock exchange - as well as special stock com - panies, such as banks and insurance firms. This initiative aligns with the gender equality reporting requirements introduced in 2024 by the Finan -
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