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How to make sustainability reports in compliance with General Rule No. 461

Reporte de Sostenibilidad

For the market to function effectively, it is essential that economic agents have clear, objective and non-discriminatory rules. In this scenario, complying with the standard is not a simple task and requires that the information disclosed by the different bodies be consistent and aligned with the same objectives.   

To this end, the Chilean Financial Market Commission (CMF) announced at the end of 2021 its General Rule 461 (NCG 461); urging issuers of publicly offered securities to incorporate sustainability and corporate governance issues in a comprehensive manner in their annual report.  

Based on the fact that corporate practices in relation to sustainability can have material impacts on the performance of securities issuers and on investors' decisions, the new regulation seeks to provide this information for the evaluation and selection of those investment alternatives in which interests would be best safeguarded.    

This standard brought with it several new requirements. Here we tell you how to comply with them. 

How to comply with General Rule 461 

In order to respond to the current needs of investors in a uniform manner, the standard requires reporting on various topics, such as: 

  • How environmental and social issues are incorporated into the entity's corporate governance and strategic definitions.   
  • How robust is the entity's corporate governance?  
  • How environmental and social risks could impact the company and how the company impacts its social and environmental surroundings.   
  • What opportunities are presented to the company by the changes occurring in its environment   
  • What measures the company is planning to take, or has taken, to mitigate these risks and take advantage of these opportunities.  

Its structure should be based on an integrated report that includes requirements on the entity's profile, corporate governance, risk management system, strategy and business model, complemented by business performance indicators and metrics according to the organization's industry sector. 

Thus, the great challenge for organizations with reporting obligations is to have reliable data on business performance and to keep this information organized so that reporting is not a complicated task.   

The necessary tools 

The NCG 461 puts urgency on the transition to management based on digital platforms that help organizations to centralize, manage and trace non-financial data to achieve comprehensive ESG reporting and, consequently, comply with the requirements of the standard.   

M-Risk's Sustainability Reporting (ESG) application supports and facilitates the elaboration of the report under the guidelines promoted by the Global Reporting Initiative (GRI); allowing to register, organize and support all the necessary information for the analysis and drafting of the report in a centralized platform that allows collaborative work.   

With M-Risk's Sustainability Reporting application:  

  • Each area involved contributes information, which is recorded in a centralized space for the responsible team to manage the construction of the report in an efficient and collaborative manner. 
  • Each material topic is linked to a GRI thematic standard and/or one or more Sustainable Development Goals (SDGs) and Dow Jones.  
  • It is possible to record and support evidence for GRI Universal Standard indicators.  
  • Automatic calculations are obtained, linked to all GRI content, as well as consolidated annual information for reporting.  

As of 2023, NGC 461 will apply to corporations exceeding the equivalent of 20 million UF (unit of account used in Chile) in total assets, and by 2024 the standard will apply to all. More than meeting the demands of investors and complying with the new standards, the challenge lies in doing so in an efficient and error-free manner. Digital tools will be an ally of companies when generating reports and will support the proper use of their non-financial information. 


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