On October 4, 2022, the Financial Market Commission (“CMF”) announced the publication of the “Guidelines for Implementation and Supervision of Section 8.2 of General Rule No. 461” (the “Guidelines”).
The publication of the Guide is part of the issuance, in November 2021, of General Rule No. 461 (“NCG 461”), which incorporated numeral 2.1.C.8.2 to Section II of General Rule No. 30 (“NCG 30”).
The NCG 461 is a pioneer standard at international level, being the first of its kind to force audited entities to disclose information based on the Standards of the Sustainable Accounting Standards Board (“SASB Standards”), which aim to measure and report ESG factors (environmental, social and governance) for more than 75 industry sectors, in addition to establishing how they are measured and reported.
The Guide establishes general principles with which obligated entities must comply in order to implement the SASB Standards in their annual reports:
1. Reports should present relevant, specific and complete information.
2. The reports should be clear and easy to understand; and
3. Reports should be consistent over time.
Furthermore, the Guidelines indicate parameters and standardize specific criteria for better compliance with NCG 461.
In effect, the Guide provides guidance on the content of the annual report of the obligated entities and the way in which the board of directors of the obligated entity selects the economic or industrial sector under which it must report in accordance with the SASB Standards.
The Guide also explains the best practices in relation to the consideration that a disclosure parameter is not applicable or requires adaptation. In fact, it indicates how the information should be disclosed in the event that entities carry out activities in more than one industrial or economic sector.
The Guide is an informative and complementary document to Section II of GCN 30, which aims to provide guidance on the SASB Standards, and the best practices expected by the FMC for compliance with the aforementioned standard. In no case does the Guide condition the enforceability of GCGA 30, since the entities must fully comply with the requirements of said standard, including the obligation to disclose the SASB Standards. Therefore, the Guide provides guidance on how to comply with these obligations.