Of the relationship between the company, its shareholders and the general public.
Practice Adopted

A

The Board of Directors has implemented a formal procedure in practice so that the company's shareholders can inform themselves about:

i. With at least 3 months prior to the shareholders' meeting in which Board Members will be elected, information concerning the diversity of skills, conditions, experiences and visions that in the opinion of the Board of Directors it is advisable to form part of the same so that it is in the best conditions to ensure the business interest.

Explanation: The Company does not adopt this practice, given that the shareholders' exercise their political rights should be conducted without the participation or influence of those who are subject to the exercising of such right.
NO
ii. Before the corresponding vote, that maximum number of Boards which, in the opinion of the Board of Directors, is advisable for Board Members to hold who may be elected by the shareholders.

Explanation: The Company does not adopt this practice, given that it is the individual responsibility of each Board member to fulfill their functions with the degree of diligence and care that the law requires.

In any event, the Company expects its Board Members to dedicate the care and time necessary to fulfill their fiduciary duties and the best business interest.
NO
iii. Before the corresponding vote, the experience, profession or position of the Board member candidate.

Explanation: The Company adopts this practice by making the curriculum vitae of the respective Board member candidate available to the Meeting before the vote, in the event that the candidates have included their CV.
YES
iv. Before the corresponding vote, if the Board member candidate maintains or has maintained in the last 18 months contractual, commercial or other relations with the controller of the company, or its major competitors or suppliers.

Explanation: The Company does adopt this practice, by making available to the Meeting this background information, if any, along with that indicated in the preceding paragraph.
YES

B

The Board of Directors has implemented a mechanism, system or procedure that permits:

The shareholders to participate and exercise their right to vote remotely, in the same opportunity that the rest of the shareholders are physically present in the meeting.

Explanation: The Company does not adopt this practice, however it engages in ongoing analysis of the technical needs to do so.
NO
ii. The shareholders to observe, in a remote manner and in real time, what takes place during the shareholders' meetings.

Explanation: The Company does not adopt this practice, however it engages in ongoing analysis of the technical needs to do so.
NO
iii. The general public to become informed in real time of the agreements adopted in the shareholders meetings.

Explanation: The Company does not adopt this practice, however it engages in ongoing analysis of the technical needs to do so.
NO
iv. The general public to become informed of the agreements adopted at the shareholders meetings, with less than a 5-minute time lag between voting on the respective agreement.

Explanation: The Company does not adopt this practice, however it engages in ongoing analysis of the technical needs to do so.
NO

C

The Board of Directors has approved a policy and established formal procedures with the goal of annually providing information to the public regarding:

i. The policies adopted by the company concerning social responsibility and sustainable development.

Explanation: The Company does not adopt this practice, being a holding company whose only assets are the shares of its subsidiary Aguas Andinas S.A. In any case, said subsidiary does have a Sustainability Report that specifically addresses these issues.
NO
ii. The stakeholders identified by the company as relevant, as well as the reasons why such groups posses this quality.

Explanation: The Company does not adopt this practice, being a holding company whose only assets are the shares of its subsidiary Aguas Andinas S.A. In any case, said subsidiary informs the public of the Company's relevant stakeholders in its annual Sustainability Report (See Ch. 1.4 “Sustainability Strategy” in the 2014 Aguas Andinas S.A. Sustainability Report).
NO
iii. The relevant risks of the company, including sustainability risks, as well as the primary sources of those risks.

Explanation: The Company does not adopt this practice, being a holding company whose only assets are the shares of its subsidiary Aguas Andinas S.A. In any case, said subsidiary annually approves its Sustainability Report that specifically deals with these issues and the risk matrix presented by its upper management.
NO
iv. The indicators measured by the company in terms of social responsibility and sustainable development.

Explanation: The Company does not adopt this practice, being a holding company whose only assets are the shares of its subsidiary Aguas Andinas S.A. In any case, said subsidiary annually makes this information available to the public, with the Board's approval of the Sustainability Report.
NO
v. The existence of goals and developments made by sustainability indicators.

Explanation: The Company does not adopt this practice, being a holding company whose only assets are the shares of its subsidiary Aguas Andinas S.A.
NO

D

For the purposes of defining the policies, indicators and reporting format referred to in paragraph c) above, have followed international standards such as, for example, the guidelines contained in ISO 26000: 2010, or the Reporting and Dissemination Principles and Standards of the "Global Reporting Initiative" or of the "International Integrated Reported Council."

For the purposes of defining the policies, indicators and reporting format referred to in paragraph c) above, have followed international standards such as, for example, the guidelines contained in ISO 26000: 2010, or the Reporting and Dissemination Principles and Standards of the "Global Reporting Initiative" or of the "International Integrated Reported Council."

Explanation: Although it does not comply with the indicated practices in their entirety- due to being a holding company whose only assets are the shares in its subsidiary Aguas Andinas S.A.- said company manages its indicators according to GRI G4, with the elaboration of Aguas Andinas S.A.' Sustainability Report followed according to this standard.
NO

E

The company has a unit for relations with shareholders, investors and press that:

i. Allows them to resolve doubts about the company, its businesses, primary risks, financial, economic or legal status, and the entity's publicly known businesses.

Explanation: The Company has an Investor Relations that complies with these roles, attending to shareholders, investors, and press, which is duly noted on the Company’s website.
YES
ii. Has people who, at a minimum, are fluent in English to respond to questions from non-Spanish speakers.

Explanation: The Company has an Investor Relations that complies with these roles, that complies with this practice, having staff trained for communicating in English in the envisioned manner.
YES
iii. Is the only entity authorized by the Board of Directors to respond to such questions from shareholders, investors and press.

Explanation: The Company does not adopt this as questions from shareholders, investors and the press are responded to also by the CEO.
NO

F

The Board of Directors has a formal procedure in place for continuous improvement:

i. To detect and implement future improvements in the procedures for elaborating and diffusing the company's disclosures to the market so that these are easy to understand by the public.

Explanation: The Company complies with this policy, having a procedure through which it reviews the form in which such communications have been made to the public.
YES
ii. To detect and implement possible improvements in the procedures for elaborating and disseminating the company's disclosures to the market, with the goal that such communications are provided to the market in a timely manner.

Explanation: The Company complies with this policy, having a procedure through which it reviews the opportunities in which such communications have been made to the market.
YES
iii. That contemplates the advice of an external expert for detecting and implementing these future improvements.

Explanation: The Company does not adopt this practice, given that it has not detected the existence of conflicts of interest between the generation and delivery of information to the public. In any event, upon such need the company could consider the contracting of a third party.
NO
iv. In which the detection referenced in numbers i and ii above is conducted at least on an annual basis.

Explanation: The Company complies with this policy, carrying out such analysis on an annual basis.
YES

G

The company has an updated website through which shareholders can access all public information, in a simple and easy-to-access manner.

The company has an updated website through which shareholders can access all public information, in a simple and easy-to-access manner.

Explanation: The Company complies with this policy, for which all public information can be accessed through its website at www.iam.cl
YES
On risk management and control.
Practice Adopted

A

The Board of Directors has implemented a formal Risk Management and Control process which is currently in place and which:

i. Has as general guidelines the risk management policies approved by the Board of Directors.

Explanation: Being an investment company whose only relevant assets are its shares in the subsidiary Aguas Andinas S.A., determined it is not necessary to establish a special policy for the administration concerning its risks. As these are limited and intertwined with those of Aguas Andinas S.A., a company that has a policy in this regard, which has been duly noted and adequately considered by the Company's Board of Directors.
NO
ii. Has a Risk Management Unit or equivalent, in charge of the detection, quantification, monitoring and communication of risks, and which reports directly to the Board of Directors.

Explanation: The Company does not have a Risk Management unit that complies with these roles, due to being a holding company with 4 employees whose only assets are the shares in its subsidiary Aguas Andinas S.A.
NO
iii. Has an Internal Auditing Unit or equivalent, responsible for verifying the effectiveness and compliance with the policies, procedures, controls and codes approved by the Board of Directors, and which reports directly to the Board.

Explanation: The Company does not have an Auditing unit that complies with these roles, due to being a holding company with 4 employees whose only assets are the shares in its subsidiary Aguas Andinas S.A., a company that does have such a unit.
NO
iv. Incorporate within the process of quantifying, monitoring and communicating both direct risks to the entity and indirect risks that may arise from the different companies of the business group to which the entity belongs.

Explanation: Being an investment company whose only relevant assets are its shares in the subsidiary Aguas Andinas S.A., the Company determined it is not necessary to establish a special policy for the administration of its risks, as these are limited and intertwined with those of Aguas Andinas S.A., a company that does have a policy in this regard, which has been duly noted and adequately considered by the Company's Board of Directors.
NO
v. Considers the potential impact from risks of economic, social and environmental sustainability to which the Company is exposed.

Explanation: The Company is an investment company whose only relevant assets are its shares in the subsidiary Aguas Andinas S.A., a company that for its part has placed an emphasis on risk analysis at the economic and operational levels.
NO
vi. Uses as a guide the principles, guidelines and national and international guidelines such as, for example, those developed by “The Committee of Sponsorship Organizations” (COSO) or contained in the “Control Objectives for Information and Related Technology” (COBIT) created by ISACA or the ISO 31000:2009 and ISO 31004:2013.

Explanation: The Company does not adopt this practice due to being an investment company whose only relevant assets are its shares in the subsidiary Aguas Andinas S.A., which does not have a formal risk management and control procedure; not withstanding, its subsidiary Aguas Andinas uses COSO as a guide.
NO
vii. Includes a Code of Conduct or equivalent document approved by the Board of Directors and reviewed annually, which defines the principles and guidelines that should guide the action of the company's staff and Board.

Explanation: The Company adopts this practice in part, given that it has a Code of Ethics that defines the principles and guidelines that should guide the actions of the Company's staff and Board of Directors, a code that is not reviewed annually by the Board of Directors. This Code of Ethics is available at the following address: https://www.iam.cl/en/corporate-governance/documents/code-ethics
NO
viii. Includes the information and ongoing training of all staff, regardless of the contractual relationship with the company, regarding the policies, procedures, controls and codes implemented for risk management.

Explanation: The Company does not adopt this practice due to being an investment company con 4 employees, and whose only relevant assets are its shares in the subsidiary Aguas Andinas S.A.
NO
ix. Is reviewed and updated at least annually.

Explanation: The Company does not adopt this practice for the reasons indicated in the numbers above.
NO

B

The Board of Directors has implemented a formal procedure that is in effect:

i. To channel complaints on behalf of staff, whatever the contractual tie, shareholders, clients, suppliers or third parties external to the company, of any irregularities or illegal acts.

Explanation: The Company adopts this practice in part, by having a complaint channel following the terms indicated in the Crime Prevention Model, published at https://www.iam.cl/en/corporate-governance/documents/crime-prevention-model, except that it has been necessary for this investment company to have access to this by internet.
NO
ii. That guarantees the anonymity of the complainant.

Explanation: The Company does not adopt this practice given that the procedure provides that the complainant should identify themselves in a confidential matter. In any event, complaints can be made anonymously for complaints of crimes covered by the Prevention Model.
NO
iii. That allows the complainant to know the status of their complaint.

Explanation: The Company adopts this practice by allowing complainants to enter the complaints channel to verify the status of their complaint with the Prevention Officer.
YES
iv. That it is brought to the attention of its staff, shareholders, clients, suppliers and third parties, both through trainings and through the company's website.

Explanation: The Company adopts this practice in part by making the indicated people aware of the complaints procedure through the internet, without having deemed it necessary for this investment company to have a training and publicity expressly directed at third parties or to people external to the Company.
NO

C

The Board of Directors has implemented a formal procedure that is in effect:

i. To detect and reduce organizational, social or culture barriers that could be inhibiting the skills, conditions, experiences and visions that, without those barriers, would have occurred naturally in the organization.

Explanation: The Company does not adopt this practice due to being an investment company with only 4 employees.
NO
ii. To identify the diversity of skills, conditions, experiences and visions that its senior executives should possess.

Explanation: The Company does not adopt this practice. In any event, to be clear the contracting and/or internal promotion of such senior executives is based on merit and competence, without procedures that give preference to the contracting of one over the other.
NO
iii. To identify among the company's employees, potential replacements of the CEO and other senior executives, in carrying out the identification process described in number ii above.

Explanation: The Company does not adopt this practice due to being an investment company with only 4 employees. In any case, it does have a replacement process for upper management.
NO
iv. To replace the CEO and other senior executives in a timely manner, and transfer their functions and relevant information in the face of their pending absence, minimizing the impact it would have on the organization.

Explanation: The Company adopts this practice, given that in the event of a permanent or imminent absence of the CEO, the Board of Directors may contract the services of a head hunter or other firm that offers similar services, or opt to directly contract the replacement, having to consider in a special manner the technical suitability, educational level, experience and/or any other relevant factor regarding the person who will supply the vacancy.

In the event of the permanent or imminent absence of a senior executive, the CEO should seek the prompt hiring of a replacement according to the same criteria established for the replacement of the CEO.

In both cases it shall be ensured that the outgoing executive submits a report of all pending matters that were under its care, indicating the status of each one, the associated risks, the people that are working on the matter and the recommended steps to follow. In the case of the CEO, they shall deliver to the president of the Board of Directors, while in the case of other senior executives delivery shall be to the CEO.
YES
v. In that the detection referred to in numbers i and ii above is performed at least annually.

Explanation: The Company does not adopt this practice due to being an investment company with only 4 employees. In any event, on an ongoing basis the Company identifies the diversity of skills, knowledge, conditions, experiences and visions its senior executives should possess.
NO

D

The Board of Directors has implemented a formal procedure that is in effect:

i. To review, at least annually, salary structures and compensation policies and indemnification of the CEO and other senior executives, in order to detect and correct any incentives that these executives expose the company to risks that are not consistent with defined policies on the subject or the commission of any crimes.

Explanation: The Company adopts this practice by establishing that the compensation policies for managers and senior executives should include not only the goals achieved, considering EBITDA and the Company's net profits, but also other elements including compliance with individual objectives defined by upper management, related for example to compliance with the assigned budget, accident indicators, prevention of workplace accidents and client service indicators, among others.
YES
ii. That includes the advice of a third party external to the company that supports the Board of Directors, and the committee of Board Members when appropriate, in the review of that referred to in number i. above.

Explanation: The Company does not adopt this practice, given that they are functions which the Board of Directors deems itself capable of assuming directly, which does not limit the Board of Directors from contracting the advise of a third party if it is necessary.
NO
iii. That includes the dissemination of the salary structures and compensation policies and indemnification to the CEO and other senior executives, on the website of the company.

Explanation: The Company does not adopt this practice with the goal of not impacting the labor rights and the confidentiality that the Company adheres to in its executive plan.
NO
iv. That includes submitting such salary structures and policies to the shareholder approval.

Explanation: The Company does not adopt this practice because it is an attribute reserved by law for the Board of Directors as an entity.
NO
Evaluation by a third party.
Practice Adopted

A

Self-assessment of the Board of Directors regarding the adoption of practices contained in current regulations:

i. Has been reviewed and validated by a third party external to the company.

Explanation: The Company does not adopt this practice, given that the company directly analyzes, deliberates upon and adopts agreements regarding the adoption of the practices contained in the current regulations. In any event, if needed the Company can contract external advisors for related matters, with the goal of adopting decisions based on the same.
NO
ii. The person or team of people that conducted the review and validation possess the verified experience of at least 5 years in evaluating control processes and effectiveness, or in the provision of professional advisory or consulting services in the design and implementation of processes, risk management or continuous improvement.

Explanation: The Company does not adopt this practice for the reasons indicated in letter i. above.
NO
iii. The entity or people who conducted the review and validation are supervised by the Superintendency or foreign public or private entity with similar competency.

Explanation: The Company does not adopt this practice for the reasons indicated in letter i. above.
NO
iv. The group or people who conducted the review and validation belong to an list established by the national stock exchange of entities that meet the conditions defined by the exchange to certify the self-assessment referred to in the current regulations.

Explanation: The Company does not adopt this practice for the reasons indicated in letter i. above.
NO
Powered by Sitecore