2. Evolution of KPIs

a. KPI 1: Greenhouse Gas (GHG) emissions per year, measured in ktCO2eq

National Greenhouse Gases trend

The information on emissions for the period 2021-2022 is still under preparation. Thus, the last available information corresponds to 2020, which was already contained in our last report.

In 2020, Chile’s GHG[2] balance accounted for 55,825 ktCO2e, increasing by 429% since 1990 and decreasing by 4% since 2018. The main drivers of the GHG balance trend are CO2 emissions generated by fossil fuel burning (accounted for in the Energy sector) and CO2 removals from forest land (accounted for in the LULUCF sector). The decrease in the 2020 balance compared to recent years is due to effects of health measures related to the COVID-19 pandemic and its effects on the economy and displacement across the country, as evidenced by the drop in emissions from the Energy sector which decreases by 5% since 2018, emissions associated with transportation.

Regarding the country’s total GHG emissions[3] in 2020, they accounted for 105,552 ktCO2e, increasing by 116% since 1990 and decreasing by 4% since 2018.

b. KPI 2: Non-Conventional Renewable Energy (NCRE) Generation, as the percentage generated in the National Electric System, measured in megawatt hours (MWh)

The percentage of NCRE is measured as the energy produced by NCRE sources in 2023, and transmitted to the Chilean matrix, divided by the total energy produced in the Chilean matrix during the same year. For these purposes, energy is considered as NCRE when coming from the following sources: wind, small run-of-river hydro (plants up to 20 MW of installed capacity), biomass[5], biogas, geothermal, solar[6] and ocean energy, and green hydrogen.

Thus, in 2023, the NCRE share reached 37.1% of the total energy produced, compared to the 33.4% observed in 2022.

The information published by the National Electric Coordinator[7] contains information by technology, as well as a separated file with NCRE produced by year. The KPI is calculated using this information.

c. KPI 3: Percentage of women in board member positions at companies that report to the CMF

Given the clear benefits of greater participation of women in board member positions, Chile decided to incorporate a KPI seeking to achieve a share at least 40% of women in boards of average companies that report to CMF (Comisión para el Mercado Financiero Chile’s Financial regulatory body) by 2031. By setting a target for all companies subject to the CMF, Chile is creating a strong and encouraging precedent for other companies in Chile to emulate the successfully achievements reached so far by State owned Companies.

The KPI is measured as the total number of women board members ratio of total number of members in boards of director across all companies that report to CMF. For avoidance of doubt, this is considering an average across all companies.

The scope of the companies included in KPI 3 are mainly companies that report to the CMF in accordance with Norma 386. This percentage is contained in the Gender Indicator of Chilean Companies Report (Reporte de Indicadores de Género de las Empresas en Chile), which includes the participation of the International Labour Organization and the NGO Chile Mujeres, to support the integrity of the data provided and to avoid errors through the collection and reporting process.

Thus, the consolidated evolution of KPIs is shown in Table 3.