In Chile, sustainability and the application of ESG (Environmental, Social, and Governance) criteria have made significant progress in recent years, driven by local and international regulations, certifications, and performance metrics in each pillar.

Key Influencing Factors:

Sustainable Development Goals (SDGs), Sustainable Investments. Business prospects.

1. Regulatory Framework

• Sustainability Reporting

The Financial Market Commission (CMF) has implemented regulations requiring companies to disclose information on their sustainability and ESG risks in their annual reports. This includes the General Regulation (NCG) 461 issued by the CMF.

• Climate Commitments

Chile has committed to achieving carbon neutrality by 2050 through the Framework Law on Climate Change (Law 21.455), which sets targets for emissions reduction and climate adaptation. Additional sectoral environmental regulations include: Extended Producer Responsibility Law (REP Law). Energy Efficiency Law. Standards for Renewable Energy.

• Sustainable Finance

Growth of green and social bonds. Climate Finance Strategy promoted by the Ministry of Finance. Adoption of Principles for Responsible Investment (PRI) and Global Reporting Initiative (GRI) standards. Development of green taxonomy standards, defining economic activities considered sustainable.

2. Certifications

Environmental

• ISO 14001: Environmental management. LEED (Leadership in Energy and Environmental Design): Sustainable building certification. HuellaChile Certification: Carbon footprint reporting and reduction

Social

• SA8000: Corporate social responsibility Sello Empresa Mujer: Promotes gender equity in businesses. Sello Proveedores Sustentables (CChC): Social best practices in the construction sector.ISO 26000: Social responsibility

Governance

• ISO 37001: Anti-bribery management.B Corp Certification: Environmental, social, and governance impact.Dow Jones Sustainability Index Chile: Recognizes companies with outstanding ESG performance.

3.Kpi´s

Environmental (E)	Social (S)	Governance (G)
CO₂ emissions (tons of CO₂e).	Gender pay gap.	Board independence (% of independent members).
Water consumption (m³ per unit of production).	Workforce diversity (% of women and minorities in leadership positions).	Transparency in financial and ESG reporting.
Renewable energy usage (% of total energy consumption).	Workplace accident rate (Frequency and Severity Index).	Anti-corruption policies and compliance (ISO 37001).
Waste generation and recycling (% of reuse).	Employee training (training hours per worker).	Executive compensation linked to ESG criteria.
Impact on biodiversity and land use.	Community relations and % of purchases from local suppliers.	Shareholder rights and whistleblowing mechanisms (ethics hotlines).

Chile has made significant progress in integrating ESG criteria; however, challenges remain in the standardization of metrics and compliance, particularly in less regulated sectors.

At Auren Chile we are focused on providing our clients with value in compliance with these standards.

Jessica Carvajal Casanova from Auren Chile