Banco de Chile

The financial institution entrusts decision-making and oversight of its sustainability strategy to the highest governance body, while the responsibility for implementation is delegated to specific functions, teams, or committees within the institution. Additionally, it provides a list of its trade association memberships and monitors its Scope 1-3 emissions. The institution also reports the amount and/or share of products, services, and capital allocated to small and medium-sized enterprises and engages in third-party assurance or verification of its target reporting.

The financial institution identifies and prioritises material topics but could provide more detail on the objective criteria and evidence used in this process. It is recommended that the financial institution links senior executive remuneration to specific sustainability targets. While it discloses involvement with certain organisations for policy advocacy, further details on actions taken and alignment with sustainability strategy are needed.

Although it has exclusionary criteria for fossil fuels in sustainability financing, there is no overarching explicit commitment against providing products or capital to new or existing fossil fuel projects. The financial institution has an opportunity to monitor and disclose emissions from financing activities (Scope 3 category 15), along with including this in its comprehensive methodology for carbon footprint calculation. Furthermore, it could disclose that it has established a transition plan for its own operations, supply chain, and portfolio as well as report that its emissions reduction is in line with interim targets.

A breakdown of clients by income group and processes to avoid divestment from low-income countries should be disclosed. While there is a commitment to human rights, a risk assessment process explicitly covering ILO fundamental rights is recommended. Additionally, a process for mitigating risks related to ILO rights and identifying social risks in the net zero transition should be disclosed, along with examples of actions taken on salient human rights issues in the past three years. The financial institution has the opportunity to disclose its methodology for determining a living wage in its operational regions.

This scorecard refers to information in English which was publicly available by July 15 2024. AuM and Total assets are stated in USD for comparability and have been calculated based on reported local currency values multiplied by applicable IMF currency converter values.