The most ESG-mature market in Latin America

Chile enters 2026 with one of the most advanced ESG landscapes in Latin America positioned as a country setting the pace in governance formalisation, climate prioritisation, and disclosure maturity.

Chile is the regional leader, with 66% of companies reporting a formal ESG policy the highest rate in Latin America. For comparison, only 46% of companies across the region have one at all.

93.6% of Chilean companies now prioritise climate change and GHG emissions reduction, compared to 75.5% regionally. This is not aspirational language. It’s procurement policy, supplier requirements, and board-level mandates.

A government that put sustainability into law

Chile has backed its green commitments with binding legislation:

• Carbon neutrality by 2050 enshrined in the Framework Law on Climate Change
• Energy Transition Law (December 2024) accelerating renewable grid integration and transmission investment
• Chile’s Taxonomy of Environmentally Sustainable Economic Activities (T-MAS) launched in May 2025, defining what qualifies as a sustainable economic activity and guiding investment and financing decisions
• Mandatory ESG disclosure from 2026, reporting entities must adopt IFRS S1 and S2 sustainability disclosure standards

The world’s first sustainability-linked sovereign bond

Chile issued the world’s first sovereign sustainability-linked bonds, significantly broadening its investor base and mobilising resources for climate adaptation and social initiatives. When a country’s government ties its own borrowing costs to hitting sustainability targets, the message is clear: this is not performative.

In global ESG rankings, Chile sits in the same tier as Spain, Italy, Singapore, and Costa Rica — well ahead of Brazil, Mexico, Colombia, and Peru within Latin America.

What this means for suppliers entering Chile

Sustainability credentials are no longer a differentiator in Chile they are a threshold requirement.

Large mining companies, energy developers, and infrastructure contractors operating in Chile increasingly require their supply chains to meet environmental and quality standards aligned with OECD norms. Products that carry certifications, demonstrate low environmental impact, or are manufactured under verified sustainability practices move faster through procurement.

This is a structural advantage for Turkish manufacturers who have already invested in:

• ISO certifications and quality management systems
• Reduced-emission or energy-efficient production
• Traceable and certified supply chains

In a market where 93% of buyers are asking sustainability questions, being able to answer them confidently wins contracts.

The bottom line

Chile is not asking its trading partners to consider sustainability. It is building a regulatory and commercial environment where sustainability-aligned suppliers are simply preferred and eventually, required.

For companies entering Chile with the right credentials, this is not a barrier. It’s a competitive moat.

BridgeTurco helps Turkish manufacturers position their sustainability credentials for the Chilean market. Start the conversation.