Overview of Chile’s sustainability reporting reform
Introduced: August 2024 (initial proposal by Comisión para el Mercado Financiero, or CMF)
Effective from: FY 2026 (first reports due in 2027)
Last modified: November 2024 final text release (Rule 519 updates Norma 461)
Region(s): Chile (nationwide for CMF-regulated entities)
About the Amendments to Norma 461
Chile is transitioning from a “comply-or-explain” sustainability framework to mandatory, standards-based ESG disclosure by amending Norma de Carácter General (NCG) No. 461. The updated regulation embeds the International Sustainability Standards Board (ISSB)’s IFRS S1 and S2, making Chile one of the first countries in Latin America to formally adopt these globally recognized frameworks.
This shift reflects Chile’s commitment to a net-zero emissions target by 2050 and seeks to align corporate transparency with both financial materiality and impact materiality—a hallmark of the double materiality approach. Under the new requirements, regulated entities must publish detailed, standardized climate and sustainability disclosures, including risk scenarios, Scope 1-3 emissions (as applicable), and transition plans tied to national decarbonization goals.
Criteria for compliance
Entities covered
- All publicly listed companies (sociedades anónimas abiertas) regulated by the CMF.
- Other public interest entities filing annual financial reports, including:
- Banks
- Insurance companies
- Pension administrators
- Large cooperatives
- Dual-listed companies must comply with Norma 461 in Chile even if they disclose abroad.
Compliance timelines
2024-2025
Transition period; early voluntary adoption encouraged.
2026
First mandatory report covering FY 2026 data (filed in 2027).
Smaller issuers
No formal grace period yet announced. CMF may accept qualitative or “immaterial” disclosures initially, pending market guidance.
Disclosure requirements
Aligned with IFRS S1 (General) and IFRS S2 (Climate):
Governance
Describe board and executive oversight of sustainability and climate-related issues.
Strategy
Disclose climate-related risks and opportunities, including impacts on strategy and business model. Include qualitative and quantitative scenario analysis (minimum one scenario aligned with a 1.5°C pathway).
Risk management
Explain processes to identify, assess, and manage climate-related risks.
Metrics & targets
- Mandatory reporting of Scope 1 and Scope 2 emissions.
- Scope 3 emissions disclosure required if material or included in climate targets.
- Disclose transition plan toward Chile’s 2050 carbon neutrality commitment.
- ESG metrics beyond climate (e.g., biodiversity, labor, communities) as material.
All disclosures must be provided in machine-readable format (e.g., XBRL) starting with 2025 infrastructure rollout.
Key obligations
- Publish a dedicated sustainability report alongside annual financial filings.
- Address both financial and impact materiality in climate and sustainability disclosures.
- Quantify emissions and report on progress toward any public sustainability targets.
- Incorporate ESG risks and opportunities into strategic and financial planning.
Third-party auditing
Not mandatory at launch, although voluntary limited assurance is encouraged and already common among large listed companies. CMF has indicated that mandatory assurance may be phased in by the late 2020s as Chile builds auditor capacity and local assurance standards.
Penalties for non-compliance
- Administrative fines imposed by CMF
- Corrective orders or suspension from the public securities registry
- Reputational damage through public publication of “explain” notices or non-compliance declarations
- Legal consequences for misleading or materially incomplete disclosures under Chile’s financial reporting laws
