- Itaú Chile’s new Sustainable Finance Framework supports green, social, and sustainability-linked instruments, with alignment rated “Strong” by S&P Global Ratings.
- Eligible project categories span renewable energy, clean transportation, financial inclusion, affordable housing, and more, aligned with key UN SDGs.
- The Framework commits to full transparency, third-party verification, and annual impact reporting using ICMA-aligned metrics.
Itaú Chile Launches Sustainable Finance Framework Backed by “Strong” S&P Global Rating
Banco Itaú Chile has announced the release of its inaugural Sustainable Finance Framework, designed to steer the bank’s capital toward green, social, and sustainability-linked investments. The Framework was favorably assessed by S&P Global Ratings, receiving a “Strong” score in its Second Party Opinion (SPO) for alignment with globally recognized standards.
These standards include the:
- ICMA Green Bond Principles (2021),
- ICMA Social Bond Principles (2023),
- ICMA Sustainability Bond Guidelines (2021),
- LMA/APLMA Green & Social Loan Principles (2023).
“With this Framework, we place sustainability at the core of our financing strategy, enabling investors to directly support Chile’s energy transition and social inclusion agenda,” said Claudia Labbé, Chief Sustainability Officer and Head of Corporate Affairs at Itaú Chile.
Financing for a Sustainable Future
The Framework outlines a robust structure for allocating proceeds from green, social, or sustainability-linked financial instruments—such as public bonds, loans, commercial papers, and deposits—to projects aligned with specific environmental or social goals. The categories include:
Green Categories:
- Renewable energy (solar, wind, small hydro, biomass)
- Energy efficiency upgrades
- Clean transportation (EVs, low-carbon infrastructure)
- Green buildings (LEED Gold or equivalent certification)
- Water and wastewater management
- Pollution prevention and control
- Sustainable land use and forestry
- Sustainable fisheries and aquaculture
Social Categories:
- Access to essential services (healthcare, education)
- Affordable housing
- MSME financing and financial literacy
Only companies with at least 90% of revenue aligned with these categories will qualify for financing.
Governance and Reporting Standards
Oversight will be conducted by a Sustainable Finance Working Group comprising senior representatives from key departments, including risk, legal, sustainability, and compliance. Eligible projects are selected using a decision-tree process and must adhere to rigorous risk management policies.
The bank has committed to allocating the full proceeds of each issuance within 24 months. Projects will be subject to regular re-evaluation, and disqualified projects will have their funding reallocated within 12 months.
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Annual reporting will cover:
- Allocation of proceeds
- Lists and descriptions of funded projects
- Key performance indicators such as GHG emissions avoided, MW of renewable energy added, and number of beneficiaries in financial inclusion programs
The bank will use ICMA’s Harmonized Framework for Impact Reporting and will obtain external assurance for post-issuance reviews.
Alignment with ESG Leadership
Itaú Chile’s sustainability strategy, updated in 2023, targets net-zero emissions by 2050 and aligns with multiple UN Sustainable Development Goals (SDGs). The bank has been recognized in the Dow Jones Sustainability Indices (DJSI) MILA and Chile, and scored in the 93rd percentile of S&P’s Corporate Sustainability Assessment.
Additionally, Itaú Chile is a signatory to:
- Task Force on Climate-related Financial Disclosures (TCFD)
- Principles for Responsible Investment
- Women’s Empowerment Principles
- UN Global Compact
24% of Itaú Chile’s wholesale loan portfolio already aligns with the SDGs, and the bank is scaling its ESG-focused products, including its own ESG ETF.
The Sustainable Finance Framework represents a binding commitment to further embedding ESG principles across Itaú Chile’s operations and financing activities.
Read the full Sustainable Finance Framework here.
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