In Chile, the ESG (Environmental, Social and Corporate Governance) approach is gaining more and more importance as investors and organizations seek to invest in companies that meet ethical and sustainable standards.In Chile, the ESG (Environmental, Social and Corporate Governance) approach is gaining increasing importance as investors and organizations seek to invest in companies that comply with ethical and sustainable standards.

In environmental terms, Chile is the fifth most vulnerable country to climate change in Latin America, so Chilean companies are facing increasing pressure to reduce their carbon footprint and act sustainably.

With regard to the social dimensionIn the social dimension, they must adopt ethical practices in areas such as labor welfare, gender equality and the right to privacy.

Regarding corporate governanceChilean companies are expected to act transparently and responsibly in terms of decision-making and resource management.

In Chile there are several initiatives that promote the ESG approach, such as the Corporate Sustainability Index (ISE) of the Santiago Stock Exchange and the Sustainability Index of the Santiago Stock Exchange.. There are also investment funds and pension funds that focus on investing in companies with good performance in ESG areas.

Among the Chilean companies that are adopting sustainable practices are Codelcothe world's largest copper producer, which has implemented a renewable energy plan that has reduced its carbon footprint; and Latam Airlineswhich has adopted a carbon offset plan, reducing the same metric.

The ESG approach is gaining importance in Chile, and more and more investors and organizations are looking to invest in companies that comply with ethical and sustainable standards.. Therefore, Chilean companies must adopt sustainable environmental, social and corporate governance practices to attract investors and protect their reputation.

In addition to being an increasingly important trend in the market, the ESG approach is a necessary tool for building a more sustainable and fairer future for all.

Cristóbal Martínez, Fynsa AGF Team