Following the global trend and taking advantage of the impulse of the recently held COP 26, the Financial Market Commission (CMF) has issued General Rule No. 461, which incorporates sustainability and corporate governance issues in the Annual Report of supervised entities.

Thus, banks, insurance companies, issuers of publicly offered securities, general fund managers and stock exchanges operating in Chile must report the policies, practices and goals adopted in environmental, social and governance matters, better known as criteria. ESG or ESG for its acronym in English.

In this way, investors and the general public will be able to evaluate and select those alternatives in which their interests would be best safeguarded and can distinguish those that are best prepared to identify, quantify and manage their risks.

Starting in 2023, in a progressive manner according to some particular characteristics of each entity, the new Annual Report must be structured to include information on the following aspects:

– Entity profile: mission, vision and corporate purpose.

– Corporate governance: governance and risk management framework. This section includes the composition and role of the board of directors or equivalent, corporate governance practices, and makes reference to sustainability risks, particularly climate change.

– Strategy: strategic objectives, time horizons and investment plans.

– People: indicators and policies related to the entity’s personnel, including, among other aspects, diversity, gender pay gap, job security, labor and sexual harassment, training and benefits.

– Business model: industry sector, stakeholders, properties, subsidiaries and associates.

– Supplier management: payment policies and indicators and supplier evaluation.

– Indicators of regulatory compliance in matters related to customers, workers, environment, free competition and others.

– Sustainability indicators according to the type of industry that corresponds to the entity, in accordance with international standards.

In this sense, As we have mentioned on other occasions, once again we see how efforts are aimed at strengthening the capacity for measure, effectively monitor and manage ESG factors of companies and projects, to separate the wheat from the chaff and put investment where there is a positive environmental impact measurable and this is the specialty of SIGEA and its Standards module .

 

For further information, we invite you to review the Regulatory section of the cmfchile.cl website where you will find the Regulatory Report.

If you need to comply with Standard 461 or need a sustainable solution for your project or company, write to us:

 

Sources:

https://www.cmfchile.cl/portal/prensa/615/w3-article-49804.html