CHILE Law and Practice Contributed by: Alvaro Moraga Fritz and Sebastián Moraga Nazar, Moraga & Cía.
tions. This includes explaining how the entity incorporates environmental matters (particu - larly climate change), social considerations and respect for human rights into various evaluation processes and strategic definitions, as well as identifying the units or individuals responsible for these matters. Additionally, banks are required to describe how, and with what frequency, the board of directors is informed about environmental and social issues – especially climate change – and whether these matters are considered when debating and mak - ing strategic, business or budgetary decisions (among others). The entity must outline how it incorporates a risk management and internal control framework into its activities, particularly by detailing the general guidelines established by the board of directors or governing body regarding risk management policies. This includes addressing: • operational risks; • financial risks; • labour risks; • environmental risks (notably climate-related physical and transition risks); and • social and human rights risks. The entity should specify whether these efforts are guided by national or international principles, guidelines or recommendations, and should name such references. Banks must disclose whether they have proce - dures in place to prevent and detect regulatory non-compliance related to the rights of their cli - ents, especially under Law No 19,496 on Con - sumer Rights Protection or equivalent legislation in foreign jurisdictions where the bank operates. Furthermore, they must report the number of
finalised sanctions in this area and their mon - etary value in local currency. Regarding employees, banks must disclose whether they have procedures to prevent and detect regulatory non-compliance related to workers’ rights. They must also report the num - ber of finalised sanctions in this regard, their monetary value and whether they have faced labour-protection actions. Banks must report compliance models or pro - grammes including details about: • the definition of their environmental obliga - tions; • the chosen compliance methods; • implementation timelines; • responsible units; • environmental risk matrices; and • any other relevant information concerning the understanding and fulfilment of these obliga - tions. If such models or programmes are not in place, this fact must be clearly specified, along with the reasons therefor. Additionally, banks must report: • the number of finalised sanctions registered in the Public Sanctions Registry of the Environ - mental Superintendence (or equivalent bodies in foreign jurisdictions); • the total amount of fines; • the number of approved compliance pro - grammes; • the compliance programmes executed suc - cessfully; and • the environmental damage repair plans sub - mitted and executed satisfactorily.
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