María Paz Alvear – GC Powerlist
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Chile 2024

Energy and utilities

María Paz Alvear

General counsel | Gasvalpo

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Chile 2024

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María Paz Alvear

General counsel | Gasvalpo

How do you approach managing legal aspects during periods of instability or crises, and how does your legal strategy align with the broader business strategy to ensure the organisation’s resilience?

My approach to the crisis will depend on whether it is an external or an internal crisis. In an internal crisis there will probably be plenty of issues that you will have the opportunity to address, whereas in an external crisis, most of the issues will probably fall beyond your control, so your options are limited.

However, every crisis represents an opportunity to revisit, reassess, look outside the box and search and seek for different ways and alternatives of doing things, innovate, rebuild procedures, KPIs, etc. It provides you with the chance to dive deep into the organisation and question yourself if the goals are aligned with the business plan and with the purpose of the company, understanding by it what ultimately gives sense to our work and make us feel committed, inspired and motivated to move on.

Moreover, the last couple of years have been quite unstable and we have jumped from one external crisis to another. The pandemic, social protests, the drafting of a new Constitution (that was not approved), etc., have forced us to navigate in a world with less legal certainty and more need to have a proper and profound understanding of the whole landscape. The ability to respond in time, being flexible, incorporating new opportunities, share them with staff members while, at the same time, complying with the law, has been an interesting challenge.

In summary, the role of the general counsel in a crisis is crucial. Having developed such a strategic general view, combined with the profound knowledge of the business, provides the general counsel with a privileged position needed to adapt the legal strategy as well as the business strategy to the changing circumstances.

What measures has your company taken to embed sustainability practices into its core business operations, and how does the role of the general counsel contribute to driving and ensuring sustainable practices within the company?

We are convinced that we need to be sustainable if we want to project our company into the future and that is why we incorporated sustainability as part of our purpose. We are facing an energy transition period, and to be part of that transition we must be sustainable and develop different alternatives “beyond distributing natural gas”.

In the last couple of years, we have been exploring different energy sources, including new technologies, to embrace sustainability as one of our main drivers. We have already launched different projects such as the Green Hydrogen project in Coquimbo, whereby we supply a blend of Hydrogen and natural gas to our clients; the installation of solar panels enabling us to sell renewable energy to our clients, produced at their site, etc.

In these developments, the role of the GC is fundamental to assist in identifying the legal requirements of the new initiatives, making sure that the ones who will enter these projects are fully aware of the risks and regulation, and ensuring that by embracing these new alternatives, we are complying with the corresponding regulatory requirements. In addition to that, moving to a sustainable way of doing things involves transforming the culture of the organisation to incorporate sustainability as part of the DNA and I am confident that GCs are compelled to develop a role as a leader in the cultural transformation of their organisations.

In your opinion, what are the main trends that are salient in your country currently (these can be legal, political, economy or business-based)?

After the failure in drafting a new Constitution that had the whole country on hold for the last 4 years, the focus returned to drafting new laws. In that respect, the current main legal trends are related with the implementation of labor laws, especially in respect to anti-harassment (law N° 21.643, also called “Karin Law”) and anti-corruption and bribery (Law N° 21.595, also called “New law of economic crimes”), that have forced the employers to develop a robust system to avoid and prevent the conducts indicated in those laws.

In my view, the implementation of both laws represents an opportunity to foster a sound legal risk management system, that can identify the risks and establish controls, procedures and documentation needed to comply with the new requirements.

However, the main challenge in both cases is to effectively embed these topics into the employees, and thereby reinforce the culture, integrity, values and ethical standards of the company. If we are successful in creating an ethical and compliance culture inside the company, the implementation of these laws and the ones that may come should not represent a major problem.

María Paz Alvear - Chile 2019

General counsel | GasValpo

Having been the general counsel for 17 years at GasValpo, the Chilean distributor of natural gas, María Paz Alvear has an almost unparalleled understanding of the company’s operations and legal...

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