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Project Details


Government of Chile Sustainability-Linked Bond Framework Second Party Opinion (2022)


Government of Chile

Project Type

Sustainability Linked Bond or Note

Industry Group


Use of Proceeds




Evaluation Date

Feb 2022

Evaluation Summary

Sustainalytics is of the opinion that the Government of Chile Sustainability-Linked Bond Framework aligns with the Sustainability-Linked Bond Principles 2020. This assessment is based on the following: 

Selection of Key Performance Indicators (KPIs)

Chile’s Sustainability-Linked Bond Framework includes two KPIs: Absolute GHG Emissions (KPI 1) and Share of Non-Conventional Renewable Energy Generation in the National Electric System (KPI2) (see Table 1). Sustainalytics considers KPI 1 to be very strong and KPI 2 to be strong. 

Calibration of Sustainability Performance Targets (SPTs)

Sustainalytics considers the SPTs to be aligned with Chile’s sustainability strategy. Sustainalytics considers SPT 1 to be ambitious based on its improvement over past performance and its alignment with a slightly below 2°C scenario, and SPT 2 to be highly ambitious based on it being consistent with efforts to limit global temperature increases to below 1.5°C. 

Bond Characteristics

Chile will link the bond’s financial characteristics to the achievement of the SPTs, namely a premium paid in case an SPT, including an intermediate SPT, is not met at the target observation date. In the event that more than one SPT is not met, the premium paid will be cumulative. 


Chile commits to report its performance on the KPIs on an annual basis via an SLB Report. Information regarding KPI 1 will be produced biennially,1 consistent with the UNFCCC’s requirements. While the Sustainability-Linked Bond Principles state that up-to-date information of the KPIs should be reported on an annual basis, Sustainalytics recognizes that Chile follows the guidance set by the UNFCCC for developing economies, and therefore finds it to be in alignment with the requirements of the SLBP. 


Chile commits to have external reasonable assurance conducted on its KPI performance at the communicated SPT deadline, which is aligned with market expectations.