Your Chilean customer has sent you a sustainability questionnaire. Here is what the CMF and Chilean law require of them — and what they need from you.
Chile has one of Latin America's most advanced ESG regulatory frameworks, driven by the Financial Market Commission (CMF) mandatory sustainability reporting requirements, the Climate Change Framework Law, and Chile's significant role in global supply chains for copper, lithium, agriculture, and forestry. Chile is the world's largest copper producer and a major lithium supplier — both critical minerals for the global energy transition. EU and US buyers in these sectors face intense ESG scrutiny, and that pressure flows directly into Chilean supply chains.
Key regulations in Chile — ESG & Sustainability Supplier Guide
CMF — Financial Market Commission Sustainability Reporting (NCG 519, replacing NCG 461)
Chile's CMF updated its sustainability reporting framework through NCG 519, which mandates the adoption of ISSB S1 (General Sustainability Disclosures) and IFRS S2 (Climate-related Disclosures) for listed companies, with reporting starting in 2026. This replaces the previous NCG 461 framework that required GRI and TCFD alignment. The ISSB alignment makes Chilean company reports directly comparable with those of companies in the EU, UK, Australia, and Japan.
Chile Climate Change Framework Law (Law 21.455)
Chile's Climate Change Framework Law establishes binding emissions reduction targets and a national carbon neutrality goal by 2050. It creates obligations for large emitters and establishes a national emissions registry. Companies in energy-intensive sectors must develop and implement climate transition plans. The law creates a regulatory framework that will progressively affect supply chain requirements.
Chile Carbon Tax
Chile operates a carbon tax on stationary sources emitting more than 25,000 tonnes of CO2 equivalent per year. The tax applies to electricity generation and industrial facilities. The rate is planned to increase significantly — to $35 per tonne of CO2 by 2030 and up to $80 per tonne by 2040 — as part of Chile's climate legislation. Companies subject to the carbon tax must report emissions and pay the applicable rate. These planned increases create significant financial incentives for emissions reduction across Chilean industry.
EU CSRD and CSDDD — Supply Chain Reach into Chile
EU companies sourcing copper, lithium, and agricultural products from Chile are subject to CSRD supply chain reporting and CSDDD due diligence obligations. Chilean suppliers to EU buyers will receive increasingly structured ESG questionnaires as these obligations take effect. The EU Critical Raw Materials Act creates additional scrutiny on lithium and copper supply chains.
What this means for you as a supplier
You are not directly regulated by EU ESG laws unless you are a large company with EU operations. But your Chilean buyer may be subject to CMF reporting requirements — and if your buyer supplies EU companies, those buyers' CSRD and CSDDD obligations flow directly into your supply chain relationship. For Chilean companies in copper, lithium, and agriculture, the EU Critical Raw Materials Act and CSRD create specific and detailed supply chain requirements that are already being implemented.
Key dates
2022
CMF NCG 461 mandatory sustainability reporting for listed companies (GRI/TCFD aligned)
June 2022
Chile Climate Change Framework Law in force — carbon neutrality target 2050
FY2024
EU CSRD mandatory for large EU companies — Chilean suppliers begin receiving structured questionnaires
2026
CMF NCG 519 in force — ISSB S1 and S2 mandatory for listed companies, replacing NCG 461
2030
Chile carbon tax planned to reach $35/tonne CO2 — significant cost increase for industrial emitters
July 2029
EU CSDDD compliance required — EU buyers must assess Chilean suppliers for human rights and environmental risks
2040
Chile carbon tax planned to reach up to $80/tonne CO2
2050
Chile carbon neutrality target under Climate Change Framework Law
Chile's critical minerals — the highest-scrutiny supply chains
Chile produces approximately 27% of the world's copper and holds the world's largest lithium reserves. Both minerals are classified as critical raw materials under the EU Critical Raw Materials Act and are essential for the global energy transition. EU and US buyers of Chilean copper and lithium face intense ESG scrutiny from investors, regulators, and civil society — and that scrutiny flows directly into their supply chain requirements for Chilean suppliers.
The EU Critical Raw Materials Act requires EU companies to assess and diversify their critical mineral supply chains, with specific due diligence requirements. Chilean copper and lithium suppliers to EU buyers will face increasingly detailed questionnaires covering environmental impact, water use, community relations, and labour rights.
What your buyer's questionnaire will ask
Questionnaires from CMF-listed Chilean buyers and from EU and US buyers sourcing from Chile typically cover the following areas.
Climate and emissions
Greenhouse gas emissions data (Scope 1, 2, and increasingly Scope 3). Carbon tax compliance for covered facilities. Climate transition plan aligned with Chile's 2050 carbon neutrality target. TCFD-aligned climate risk assessment.
Water management
Water use and efficiency (critical in Chile's water-stressed mining regions). Water rights compliance. Impact on local water sources and communities. Water recycling and reduction targets.
Environmental management
Compliance with Chile's Environmental Framework Law and sector-specific regulations. Environmental impact assessment for mining and industrial operations. Tailings management for mining operations. ISO 14001 certification increasingly expected.
Labour rights and working conditions
Compliance with Chile's Labour Code, minimum wage, and ILO core conventions. Freedom of association and collective bargaining rights. Contractor and subcontractor labour standards.
Community and indigenous rights
Consultation with indigenous communities (ILO Convention 169 — Chile ratified). Impact on local communities. Community benefit sharing and grievance mechanisms. Particularly relevant for mining operations in indigenous territories.
Supply chain due diligence
Evidence that you assess your own suppliers for ESG risks. EU buyers subject to CSDDD require their suppliers to demonstrate that they manage their own supply chain risks — the Tier 2 question.
What happens if your response is inadequate
- →EU and US buyers may suspend or terminate supply relationships where ESG questionnaire responses are inadequate
- →From July 2029, CSDDD requires EU buyers to take action on identified supply chain risks — including supplier remediation or termination
- →CMF-listed Chilean buyers face domestic enforcement for inadequate sustainability disclosures, creating pressure on their supply chains
- →Carbon tax non-compliance results in financial penalties for covered facilities
Last reviewed: April 2026. This guide is for general information only and does not constitute legal advice. Regulations change — verify current requirements with a qualified adviser.
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