ESG Global Vision

Environmental, Social and Corporate Governance policy

To be in force upon the fulfillment of certain conditions

Subject to the conditions referred below, this regulation is mandatory for banks, insurance companies, stockbrokers, public limited companies, special public limited companies registered in the Security Registry maintained by the CMF, or that according to NCG N°431 or Circular N°991 must submit its Annual Memorial in accordance with the provisions of NCG N°30.

Issuers are able to voluntarily comply with its regulations as of fiscal year 2022 (report to be delivered in 2023). Mandatory as of December 31, 2022 for those open corporations that exceed the equivalent of UF 20 million (app. USD750 million) in total consolidated assets calculated as of the beginning date of the fiscal year to which the report refers; as of December 31, 2023 for those open stock corporations that exceed the equivalent of UF 1 million (app. USD37.5 million); and as of December 31, 2024 for special corporations registered in the Securities Registry of the Commission for the Financial Market (“CMF”), or that in accordance with General Rule (“NCG”) N° 431 or Circular 991 must submit their annual report in accordance with the provisions of NCG 30, and other issuers of securities not contemplated in the two preceding points.

Created by the Commission for the Financial Market, this regulation incorporates the duty to report on ESG factors in all sections of the annual report to help companies to establish their corporate governance, in order to promote institutionalization, generate value and confidence for shareholders and stakeholders, including information requirements on the entity's profile, corporate governance, risk management system, relationship with stakeholders and the public, strategy, policies and indicators related to the entity's employees, business model, supplier management, legal and regulatory compliance information and indicators, and sustainability indicators.

Corporate Governance policy

In force

Private companies

Following Chile's joining the Organization for Economic Cooperation and Development (OECD), Law No. 20,382 was enacted to raise the standards of corporate governance of private companies, improve their efficiency and increase market confidence.

This law amends Law No. 18,045, on Securities Market, which regulates securities transactions arising from public offerings of securities or transactions brokered by brokers or securities agents.

Corporate Governance policy

In force

Public and private companies

The law aims to prevent and discourage the use of the financial system, and other sectors of Chilean economic activity, for the commission of money laundering and terrorist financing offenses.

In order to fulfill this purpose, the Financial Analysis Unit was created, which carries out financial intelligence, issues regulations, monitors compliance, imposes administrative sanctions, provides training and disseminates information of a public nature.

Regulation

In force

Pension Funds Managers

The General Standard No. 276/2020 seeks to integrate ESG factors, and the information related to them to the investment process of the Pension Funds Managers (AFPs).

According to it, AFPs shall publish an annual report addressed to its affiliates and other stakeholders, containing the relevant financial factors considered in its investment decisions and risk analysis, expressly mentioning the treatment of credit and market risks and, within these, ESG factors.

In addition, this regulation mandates AFPs to integrate ESG factors in the management of credit risk, market risk, fiduciary risk, strategic risk, and reputational risk.

Business and human rights

In force

Public and private companies

This Law aims to promote an effective labour inclusion of people with disabilities, both in the public and private sectors. Among others, it establishes the obligation for public and private organizations with 100 or more employees to hire at least 1% of people with disabilities.

Legislation

In force

Private companies

In order to secure equal health and safety conditions in the workplace for all workers, regardless of their employment status, this law regulates subcontracting and temporary work.

In addition to improving the health and safety regulation in situations of subcontracting and in cases of employee supply, it improves the auditing action to make companies' responsibility more effective, regulates the intervention of the auditing entities in cases of fatal and serious accidents, and extends to the main companies (those that use workers under the subcontracting system) and users (those that use temporary workers) the direct responsibility in health and safety matters.

Environmental law

In force

All individuals and entities

This Law establishes the general framework for the protection of the environment, the preservation of nature and the conservation of the environmental heritage. It also regulates environmental management instruments such as the Strategic Environmental Assessment and the Environmental Impact Assessment System, as well as regulating the environmental liability framework applicable to all individuals and entities that have caused environmental damage.

Environmental regulation

In force

All individuals and entities

This Regulation establishes the provisions governing the Environmental Impact Assessment System and Community Participation in the environmental impact assessment process, in accordance with Law No. 19,300, on General Bases of the Environment.

Legislation

In force

All individuals and entities 

This Law seeks to reduce the generation of waste and encourage its reuse, recycling and other types of recovery. To this end, it establishes the Extended Liability of the Producer, making the producer liable for the waste generated by its products, from its production until its recovery or elimination.

The collection and recovery goals for each category of priority product (lubricant oils, electric and electronic devices, batteries, containers and packaging, tires and small batteries) are set through supreme decree).

Up to this date, regulations setting forth collection and recovery goals regarding tires (SD No. 8/2019) and containers and packing (SD No. 12/2020)) have been published in the Official Gazzette, while regulations that will set forth recovery goals for lubricating oils and for batteries and electrical and electronic equipment are being drafted.

Environmental regulation

In force

Public agencies 

The purpose of the regulation is to enforce the exercise of indigenous peoples' right to consultation, who may be directly affected by the issuance of legislative or administrative measures, as set forth in Article 6 of Convention No. 169 of the International Labor Organization.

To this effect, this regulation regulates the applicability of the Prior Consultation (measures that are likely to directly affect Indigenous Peoples) and the procedure to carry out an Indigenous Consultation process.

Legislation

In force

All individuals and entities

This law governs the relationship between suppliers and consumers by establishing a series of rights and obligations. Also, it regulates the infractions against consumers and establishes the applicable procedure in these matters.

To this effect, the Consumer Protection Law establishes the rules for the marketing and advertising that any company advertising goods and services in Chilean territory shall follow.