SQM

Los Militares 4290 Piso 6,

Las Condes, Santiago, Chile

Tel: (56 2) 2425 2485

Fax: (56 2) 2425 2493

www.sqm.com

Explanation: Corporate Governance Policy (CGP) Section 6

All new members of the Board will receive an orientation to the Company upon joining the Board regarding the Company, its business, risks, policies, procedures, principal accounting criteria, sustainability and the legal framework applicable to the Company and its Directors. Within 60 days of the new board being elected, the board will be provided with pertinent information related to the Company, including, but not limited to the Company’s by-laws http://ir.sqm.com/English/investor-relation/corporate-governance/default.aspx, Code of Ethics http://ir.sqm.com/English/investor-relation/corporate-governance/default.aspx, Manual for the Management of Information http://ir.sqm.com/English/investor-relation/corporate-governance/default.aspx, Monthly Management Report, Sustainability Report http://ir.sqm.com/English/investor-relation/Annual-information/default.aspx, most recent 20-F http://ir.sqm.com/English/investor-relation/Annual-information/default.aspx and annual report http://ir.sqm.com/English/investor-relation/Annual-information/default.aspx. Through receipt of the 20-F, the Board will receive a list of all material contracts, and a full copy of the previous year’s financial statements. The Board has access to the Company website, through which it can access pertinent information about the Company, including but not limited to all recent financial statements and press releases issued by the Company and important Company policies. The Company will coordinate meetings with relevant management to discuss the business issues and risks, including those related to sustainability, site visits and other briefings as appropriate. The Board has access to an information sharing system, which allows each Board member safe, secure, remote and permanent access to all of the documents mentioned above.

Explanation: CGP Section 8

The Company publishes a Sustainability Report to provide further information on its social and environmental performance. As part of the Sustainability Report, the Company identifies the relevant interest groups as well as the reason why said groups are identified as such. It also identifies indicators measured by the Company in matters related to social responsibility and sustainable development. Annually, the Board reviews and approves a copy of the Sustainability report, and also new Board members receive a copy as part for the orientation for new Board members.

Explanation: CGP Section 6

All new members of the Board will receive an orientation to the Company upon joining the Board regarding the Company, its business, risks, policies, procedures, principal accounting criteria, sustainability and the legal framework applicable to the Company and its Directors. Within 60 days of the new board being elected, the board will be provided with pertinent information related to the Company, including, but not limited to the Company’s by-laws, Code of Ethics, Manual for the Management of Information, Monthly Management Report, Sustainability Report, most recent 20-F and annual report. Through receipt of the 20-F, the Board will receive a list of all material contracts, and a full copy of the previous year’s financial statements. The Board has access to the Company website, through which it can access pertinent information about the Company, including but not limited to all recent financial statements and press releases issued by the Company and important Company policies.

Explanation: CGP Section 6

All new members of the Board will receive an orientation to the Company upon joining the Board regarding the legal framework applicable to the Company and its Directors. As part of the new Board orientation the new members can meet with the Company’s General Counsel or senior management at any time to discuss any aspect of the Company’s business.

Explanation:

The Board orientation procedure or mechanism in place aims to facilitate the duties of safekeeping, reservation, loyalty, diligence and information that falls on each Board member according to the current law, though it doesn’t consider examples of the most relevant verdicts, sanctions or pronouncements regarding those duties that occurred locally in the previous year. This conforms with Section 6 of the CGP which states that, if necessary, the Board will request a meeting with internal or external counsel to explain the most relevant verdicts, sanctions or pronouncements relating to the duties of safekeeping, reservation, loyalty, diligence and information that have occurred both locally and international markets that could have an impact on the Company. The Board does not require the Board orientation have a procedure or mechanism in place that aims to facilitate the duties of safekeeping, reservation, loyalty, diligence and information that falls on each Board member according to the current law because the Board may request a meeting with internal or external counsel as it feels necessary.

Explanation:

The Board orientation procedure or mechanism in place aims to facilitate the comprehension and knowledge process of the main agreements adopted in the last two years prior to the beginning of its term. However, the Board does not receive a copy of all the main agreements adopted, nor reasons considered to adopt such agreements or discard other options because the Board has made management responsible for main agreements signed within the Company with the exception of contracts with a value over US$20 million, which the Board is required to review and approve. The Board has access to an information sharing system, which allows each Board member safe, secure, remote and permanent access to all of the documents which are included in the Board orientation.

Explanation: CGP Section 6

All new members of the Board will receive an orientation to the Company upon joining the Board regarding the Company and its principal accounting criteria. Within 60 days of the new board being elected, the board will be provided with pertinent information related to the Company, including, but not limited to the most recent 20-F and annual report. Through receipt of the 20-F, the Board will receive a full copy of the previous year’s financial statements. The Board has access to the Company website, through which it can access pertinent information about the Company, including but not limited to all recent financial statements, the monthly management report, and press releases issued by the Company.

Explanation: CGP Section 6

Within 60 days of the new board being elected, the board will be provided with pertinent information related to the Company, including, but not limited to the Company’s Code of Ethics.

The Code of Ethics describes, among other things: i) the expected behavior of Company Directors and employees, ii) what is understood as conflict of interest, iii) the main situations that constitute a conflict of interest, iv) the procedure that a director must follow to declare and resolve a possible conflict of interest and v) policies and procedures relating to anti-corruption. The Code of Ethics shall be reviewed by the Board and updated, if necessary, annually.

Explanation: CGP Section 6

Professional development of the Board is encouraged through a formal training procedure. Notwithstanding, each year the Board will evaluate its own processes and performance through a Board Assessment designed to promote the Board’s on-going effectiveness and continuous improvement. This evaluation may be performed by a third party. As a part of this evaluation, the Board will review itself, its Chairman, and its CEO, including but not be limited to evaluating the following items:

Ø  Any areas that it feels should be examined further to increase the effectiveness of the Board and the Company;

Ø  Any areas in which its members can strengthen and continue improving his or her personal performance on the Board;

Ø  Any organization, social or cultural barriers that could be inhibiting the natural diversity of capabilities, visions, characteristics and conditions that could have taken place at the Board level had these barriers not existed;

Ø  The considerations of any change to the organization and the functions of the Board in crisis situations; and

Ø  Any areas of possible improvement related to the Company’s disclosure policies and procedures, ensuring that disclosure are easily understood by the public and that it is released in a timely manner.

At the conclusion of this evaluation the Board will define any specific training measures that it feels should be carried out, and will consider advisory services from third-party experts to aid in the detection and implementation of possible improvements.

Explanation: CGP Section 6

On an annual basis, the Board, through a Corporate Governance Committee will review its Corporate Governance Policy. As part of this process, the Board will review best corporate governance practices adopted by other entities, both locally and internationally.

Explanation: CGP Section 6

As part of its ongoing training the Board must remain informed of any relevant regulatory changes, both locally and internationally, related to inclusion, diversity and sustainability. This was not implemented in 2017. This was not implemented in 2017.

Explanation: CGP Section 6

As part of its ongoing training, the Board must remain informed of any relevant regulatory changes, both locally and internationally, related to sustainability and risk management. This was not implemented in 2017.

Explanation: CGP Section 6

As part of its ongoing training, the Board must remain informed of any relevant regulatory changes, both locally and internationally, related to inclusion, diversity, sustainability, and risk management. If necessary, the Board will request a meeting with internal or external counsel to explain the most relevant verdicts, sanctions or pronouncements relating to the duties of safekeeping, reservation, loyalty, diligence and information that have occurred both locally and international markets that could have an impact on the Company. This was not implemented in 2017.

Explanation: CGP Section 1-1.a

The Board approves a Code of Ethics which describes, among other things, i) the expected behavior of Company Directors and employees, ii) what is understood as conflict of interest, iii) the main situations that constitute a conflict of interest, iv) the procedure that a director must follow to declare and resolve a possible conflict of interest and v) policies and procedures relating to anti-corruption. The Code of Ethics shall be reviewed by the Board and updated, if necessary, annually. This was not implemented in 2017.

Explanation: CGP Section 3

The Board does not have a policy in which it can hire experts to advise them in matters related to accounting, tax, financial, legal or other issues. However, in performing its functions, the Board is entitled to rely on the advice, reports and opinions of management, counsel, accountants, auditors and other expert advisors, and shall have the authority to retain and approve the fees and retention terms of its outside advisors except to the extent that sole authority to retain certain advisors has been delegated by the Audit and Financial Risk Committee. The Board does not believe that the possibility of veto by one or more Directors for the hiring of a particular advisor would be in the best interest of the Board as it could significantly delay the hiring of relevant and necessary advisors; the Board uses its efforts to make these decisions unanimously.

Explanation:

The Board does not have a policy in which it discloses at least once a year the advisories requested and not hired. It does not explain the reasons why the Board makes a particular decision, and does not necessarily state these reason in the minute of that session

As necessary, meeting minutes include requests made by Board members, but the Board does not feel it necessary to disclose all advisors requested by all Board members.

Explanation: CGP Section 1.b.

Although the Board does not meet quarterly with the external auditor in charge of auditing the Company’s financial statements in order analyze the audit plan or annual program, the Audit and Financial Risk Committee meets as necessary, but at least twice per year, with the external auditing firm. The Board believes it is sufficient and more efficient to have two mandatory meetings with the external auditor per year, in which the above material will be discussed. Nevertheless, the Board can request an additional meeting with the external auditor as it feels necessary.

Explanation: CGP Section 1.b.

Although the Board does not meet quarterly with the external auditor in charge of auditing the Company’s financial statements in order to analyze the possible differences detected in the audit in regard to accounting practices, administrative systems, and internal auditing, The Audit and Financial Risk Committee meets at least twice a year. The Board believes it is sufficient and more efficient to have two mandatory meetings with the external auditor per year, in which the above material will be discussed. Nevertheless, the Board can request an additional meeting with the external auditor as it feels necessary.

Explanation: CGP Section 1.b.

Although the Board does not meet at least quarterly with the external auditor in charge of auditing the Company’s financial statements in order to analyze possible serious deficiencies that may have been detected and those irregular situations which due to their nature must be informed to the competent regulatory agencies. The Audit and Financial Risk Committee meets as necessary, but at least twice per year with the external auditing firm. The Board believes it is sufficient and more efficient to have two mandatory meetings with the external auditor per year, in which the above material will be discussed. Nevertheless, the Board can request an additional meeting with the external auditor as it feels necessary.

Explanation: CGP 1.B

Although the Board does not meet at least quarterly with the external auditor in charge of auditing the Company’s financial statements in order to analyze results of the annual audit program, the Audit and Financial Risk Committee meets as necessary, but at least twice per year with the external auditing firm. The Board believes it is sufficient and more efficient to have two mandatory meetings with the external auditor per year, in which the above material will be discussed. Nevertheless, the Board can request an additional meeting with the external auditor as it feels necessary.

Explanation: CGP 1.B

Although the Board does not meet at least quarterly with the external auditor in charge of auditing the Company’s financial statements in order to analyze possible conflicts of interest that could exist in regard to the external auditing firm or its personnel, due to the provision of other services to the company or to the companies of the corporate group, and due to situations The Audit and Financial Risk Committee shall meet as necessary, but at least twice per year, with the external auditing firm. The Board believes it is sufficient and more efficient to have two mandatory meetings with the external auditor per year, in which the above material will be discussed. Nevertheless, the Board can request an additional meeting with the external auditor as it feels necessary.

Explanation: CGP Section 1.B

Although the Board does not meet at least quarterly with the Company’s risk management unit to analyze the correct function of the risk management process, the Audit and Financial Risk Committee and the Board meet as necessary, but not less than twice per year with the Company’s Risk Management and Compliance Officer. The Board believes it is sufficient and more efficient to have two mandatory meetings with the Company’s risk management unit per year, in which the above material will be discussed. Nevertheless, the Board can request an additional meeting with the Company’s risk management unit as it feels necessary.

Explanation: CGP 1.B

Although the Board does not meet at least quarterly with the Company’s risk management unit to review the Company’s risk matrix used by the Board, as well as the main sources of risks and the methodology for the detection of new risks, and of those, the probability and impact of them happening, the Audit and Financial Risk Committee and the Board meet as necessary, but not less than twice per year with the Company’s Risk Management and Compliance Officer. The Board believes it is sufficient and more efficient to have two mandatory meetings with the Company’s risk management unit per year, in which the above material will be discussed. Nevertheless, the Board can request an additional meeting with the Company’s risk management unit as it feels necessary.

Explanation: CGP Section 1.B

Although the Board does not meet at least quarterly with the Company’s risk management unit to analyze the recommendations and improvements that, according to the Risk Management and Compliance Officer, would make the Company’s risk management more effective, the Audit and Financial Risk Committee and the Board meet as necessary, but not less than twice per year with the Company’s Risk Management and Compliance. The Board believes it is sufficient and more efficient to have two mandatory meetings with the Company’s risk management unit per year, in which the above material will be discussed. Nevertheless, the Board can request an additional meeting with the Company’s risk management unit as it feels necessary.

Explanation: CGP Section 1.B

Although the Board does not meet at least quarterly with the Company’s risk management unit to review the contingency plans designed to react to the occurrence of critical events, including the continuity of the Board in crisis situations, the Audit and Financial Risk Committee and the Board meet as necessary, but not less than twice per year with the Company’s Risk Management and Compliance Officer. The Board believes it is sufficient and more efficient to have two mandatory meetings with the Company’s risk management unit per year, in which the above material will be discussed. Nevertheless, the Board can request an additional meeting with the Company’s risk management unit as it feels necessary.

Explanation: CGP Section 1.B

Although the Board does not meet at least quarterly with the Company’s Internal Audit unit to analyze the audit program or annual plan, the Audit and Financial Risk Committee and the Board meet as necessary, but not less than twice per year with the Company’s Internal Audit Manager. The Board believes it is sufficient and more efficient to have two mandatory meetings with the Company’s Internal Audit unit per year, in which the above material will be discussed. Nevertheless, the Board can request an additional meeting with the Company’s Internal Audit unit as it feels necessary.

Explanation:

The Board does not meet at least quarterly with the Company’s Internal Audit unit to analyze possible serious deficiencies detected and any irregular situation that due to its nature must be communicated to the appropriate regulators or to the Public Prosecutor. Notwithstanding, the Board has access to the internal whistle blower system, and will make decisions on a cases by case basis. In the event of a serious deficiency, the Board will be informed as soon as possible. The Audit and Financial Risk Committee and the Board meet as necessary, but not less than twice per year with the Company’s Internal Audit Manager. The Board believes it is sufficient and more efficient to have two mandatory meetings with the Company’s Internal Audit unit per year, in which the above material will be discussed. Nevertheless, the Board can request an additional meeting with the Company’s Internal Audit unit as it feels necessary.

Explanation: CGP 1.B

Although the Board does not meet at least quarterly with the Company’s Internal Audit unit to analyze the recommendation and improvements from the Internal Audit unit in an effort to minimize the occurrence of irregularities or fraud, the Audit and Financial Risk Committee meet as necessary, but not less than twice per year, with the Company’s Internal Audit Manager. The Audit and Financial Risk Committee and the Board meet as necessary, but not less than twice per year, with the Company’s Internal Audit Manager. The Board believes it is sufficient and more efficient to have two mandatory meetings with the Company’s Internal Audit unit per year, in which the above material will be discussed. Nevertheless, the Board can request an additional meeting with the Company’s Internal Audit unit as it feels necessary.

Explanation: CGP Section 1.B

Although the Board does not meet at least quarterly with the Company’s Internal Audit unit to review the effectiveness of the crime prevention models implemented by the Company, the Audit and Financial Risk Committee meet as necessary, but not less than twice per year, with the Company’s Internal Audit Manager and the Risk Management and Compliance Officer. The Audit and Financial Risk Committee and the Board meet as necessary, but not less than twice per year with the Company’s Internal Audit Manager. The Board believes it is sufficient and more efficient to have two mandatory meetings with the Company’s Internal Audit unit per year, in which the above material will be discussed. Nevertheless, the Board can request an additional meeting with the Company’s Internal Audit unit as it feels necessary.

Explanation: CGP Section 9

Although the Board does not meet at least quarterly with the Company’s social responsibility and sustainable development unit to analyze the effectiveness of the policies approved by the Board, the Board has created a Safety, Health, and Environment Committee (the “SHEC”) to assist the Board in its review of the Company’s policies and changes or improvements to policies with respect to safety, health, environmental, sustainability, and social matters affecting the Company. The SHE Committee meets at least twice a year with the Company’s social responsibility and sustainable development unit. The SHEC presents its key findings to the entire Board. The Board believes it current policy is sufficient where the SHEC is required to meet with the with the Company’ social responsibility and sustainable development unit twice per year. The Board can request additional meetings as it sees fit or necessary.

Explanation: CGP Section 9

Although the Board does not meet at least quarterly with the Company’s social responsibility and sustainable development unit to analyze detected organizational, social or cultural barriers that could be inhibiting the natural diversity that would have taken place without those barriers, the SHE Committee meets at least twice a year with the Company’s social responsibility and sustainable development unit. The SHEC presents its key findings to the entire Board.

The Board believes it current policy is sufficient where the SHEC is required to meet with the with the Company’ social responsibility and sustainable development unit twice per year. The Board can request additional meetings as it sees fit or necessary.

Explanation: CGP Section 9

The Board does not meet at least quarterly with the Company’s social responsibility and sustainable development unit to review the usefulness and acceptance of the sustainability reports disclosed to the relevant interest groups of the Company. However, the Company annually publishes a Sustainability Report that is reviewed by the Board, and the usefulness and acceptance of the Sustainability Report as received by relevant interest groups is received by the Board.

The SHE Committee meets at least twice a year with the Company’s social responsibility and sustainable development unit. The SHEC presents its key findings to the entire Board.

The Board believes it current policy is sufficient where the SHEC is required to meet with the with the Company’ social responsibility and sustainable development unit twice per year. The Board can request additional meetings as it sees fit or necessary.

Explanation: CGP Section 6

The Company has more than twenty commercial offices, and over ten joint ventures around the world. It is not feasible to visit all offices and facilities every year. However, Board members will use his or her best efforts to visit at least two facilities each year During 2017, the Board visited the Salar de Atacama, where the company maintains several relevant facilities.

Explanation: CGP Section 6

The Company has more than twenty commercial offices, and over ten joint ventures around the world. It is not feasible to visit all offices and facilities every year. However, Board members will use his or her best efforts to visit at least two facilities each year During 2017, the Board visited the Salar de Atacama, where the company maintains several relevant facilities.

Explanation: CGP Section 6

The Company has more than twenty commercial offices, and over ten joint ventures around the world. It is not feasible to visit all offices and facilities every year. However, Board members will use his or her best efforts to visit at least two facilities each year During 2017, the Board visited the Salar de Atacama, where the company maintains several relevant facilities.

Explanation: CGP Section 1.b

During every meeting with the Risk Management and Compliance Officer, the Internal Audit Manager, and the External Auditor, the Board will have an opportunity to meet with him or her without the presence of management. During 2017, the Board has always had an opportunity to meet with each of these executives without management presence, but meetings without the presence were not deemed necessary and didn’t take place.

Explanation: CGP Section 6

The Board has a formal continual improvement procedure in place to detect and implement possible improvements in its organization and its functions. Each year the Board will evaluate its own processes and performance through a Board Assessment designed to promote the Board’s on-going effectiveness and continuous improvement.

Explanation: CGP Section 6

The Board has a formal continual improvement procedure in place to detect the areas in which its members can strengthen and continue improving their skills. Each year the Board will evaluate its own processes and performance through a Board Assessment to evaluate any areas in which its members can strengthen and continue improving his or her personal performance on the Board.

Explanation: CGP Section 6

The Board has a formal continual improvement procedure in place to detect and reduce the organization, social or cultural barriers within the Board that could be inhibiting the natural diversity capabilities, visions, characteristics and conditions that could have taken place within the Board if those barriers did not exist. Each year the Board will evaluate its own processes and performance through a Board Assessment designed to promote the Board’s on-going effectiveness and continuous improvement. As part of this evaluation, the Board will review itself, its Chairman, its and CEO evaluating, among other things, the social or cultural barriers that could be inhibiting the natural diversity, capabilities, visions, characteristics and conditions that could have taken place within the Board without these barriers.

Explanation: CGP Section 2

As discussed in article 15 of the Company’s By-laws, the Board will meet or be in session at least once a month. Directors are expected to attend Board meetings in person or via telephone conference, in which proper means are in place. Members of the Board and the Committees, upon which they serve, are expected to attend meetings fully prepared and to remain in attendance for the duration of the meeting. Board meeting attendance will be disclosed annually in the Board Report Card, which is published on the Company website.

According to article 13 of the Company By-laws, a Director who does not attend 3 consecutive meetings due to reasons not considered reasonable by the Board, will as a matter of fact stop performing his or her functions, and must be replaced without delay and formalities. In this case, and in the event of conflict of duties, resignation, dismissal, death, bankruptcy, or any other inability disabling a director to perform his duties, the Board will proceed to appoint the replacement Director(s) pursuant to the Law who will stay in office and perform his or her duties until the next shareholder’s meeting to be held by the Company and at which all Directors are to be re-elected.

Explanation: CGP Section 6

The Board has a formal continual improvement procedure in place that specifically considers any change, if necessary, in the organization and functions of the Board in contingency or crisis situations. Each year the Board will evaluate its own processes and performance through a Board Assessment designed to promote the Board’s on-going effectiveness and continuous improvement. As part of this evaluation, the Board will review itself, its Chairman, and its CEO, evaluating, among other things, the considerations of any change to the organization and the functions of the Board in crisis situations.

At the conclusion of this evaluation, the Board will define any specific training measures that it believes should be carried out, and will consider advisory services from third-party experts to aid in the detection and implementation of possible improvements.

Explanation: CGP Section 6

The Board has a formal continual improvement procedure in place that considers the advice of an outside expert for the detection and implementation of these possible improvements or strengthening areas. Each year the Board will evaluate its own processes and performance through a Board Assessment designed to promote the Board’s on-going effectiveness and continuous improvement. This evaluation may be performed by a third party. As a part of this evaluation, the Board will review itself, its Chairman, and its CEO.

At the conclusion of this evaluation the Board will define any specific training measures that it believes should be carried out, and will consider advisory services from third-party experts to aid in the detection and implementation of possible improvements.

Explanation: CGP Section 6

The Board has a formal continual improvement procedure in place that reviews point i to iii listed above on an annual basis.

ii) Allows him to access safely and remotely, and notwithstanding the legal obligations regarding summoning submission deadlines and contents, to the agenda and presentation materials that summarize all the matters to be discussed in said session, and every piece of information that will be presented in that session or additional information necessary to prepare for it.

Explanation: CGP Section 6

The Board has a system in place that allows every Board Member safe, remote and permanent access, (notwithstanding any legal deadlines to summon a meeting) to the agenda and presentation materials that summarize all the matters to be discussed in Board meetings, and every piece of information that will be presented in a Board meeting, or additional information necessary to prepare for said meeting. The Board may also ask or receive regular reports which include analysis of key metrics in respect to operational and financial information. The Board secretary is responsible for ensuring that information is sent to the Board in a timely manner.

The meeting minutes will be provided to the Board as quickly as possible in Spanish, with a translation to English, before being executed by all required parties. Board members will have time to review Board meeting minutes in either language before executing them.

Explanation:

The Board currently does have an information technology system in place which allows every Board member safe, remote and permanent access to the material listed in point ii, above, at least five days prior to Board meetings. Meeting materials and information shall be distributed in advance of each meeting. Any necessary meeting materials can be provided in either English or Spanish upon the request of any Board member.

However, as Board materials are subject to change until the moment of the meeting, the Company cannot guarantee that all board materials will be accessible five days prior to the session.

The Company will use its best effort to send them as soon as possible.

Explanation: CGP Section 3

The Board has a system in place in which Board members are allowed to review the final text of meeting minutes. The meeting minutes will be provided to the Board as quickly as possible in Spanish, with a translation in English before being executed by all required parties.

Explanation: CGP Section 3

The Board does not currently have the information technology system in place that allows every Board Member to review the information referred to in point v above, to no more than five days following the session. However, the meeting minutes will be provided to the Board as quickly as possible in Spanish, with a translation in English. The Board members will have time to review the meeting minutes in either language before executing them. There is no guarantee that translations will be complete within five days.

Explanation: CGP Section 5

The Board has not implemented a formal procedure as specific as the requirement outlined above, in which shareholders will be informed at least three months before Board elections, regarding the diverse capabilities, conditions, experience and visions that according to the Board are appropriate for a Board Member to possess in an effort to protect social interest.

The Board will be elected by the shareholders, and it is expected that Board members will possess the following qualifications: integrity, time available to perform the responsibilities necessary, the ability to critically and strategically assess challenges and opportunities presented to the Company, and a willingness to understand and commit to the highest standards of ethics.

In the event of Board elections, the Company will make available to shareholders, as soon as possible, a document that contains the professional experience and profile of the candidates for Director, who has provided said information to the Company.

Explanation:

The Board has not implemented a procedure in which before the Board election, the maximum number of Board memberships that, according to the Board is appropriate for the Directors elected by the shareholders to hold. The Board does not implement a procedure because it believes that each Board member should be responsible for guaranteeing that he or she has the time available to successfully perform his or her Board duties.

Explanation: CGP Section 5

The Board has implemented a formal procedure in which shareholders will be informed before Board elections of the experience, occupation or trade of each Board member candidate. In the event of Board elections, the Company will make available to shareholders, as soon as possible, a document that contains the professional experience and profile of the candidates for Director, who have provided said information to the Company. The Company cannot guarantee that each candidate will provide this information in a timely manner.

Explanation: CGP Section 5

The Board has implemented a formal procedure in which shareholders will be informed before Board elections if a Board member candidate has had a contractual, commercial or other relationship with the Company’s controlling group, main competitors or suppliers in the past eighteen months. The Company will request that each candidate disclose if he or she has had a contractual, commercial or other relationship with the Company’s controlling group, main competitors or suppliers in the past eighteen months. Information responsive to points iii and iv above information apply to candidates who are nominated with enough advance notice necessary to prepare and disclose the above information. The Company cannot guarantee that each candidate will provide this information in a timely manner.

Explanation:

The Board has not implemented a formal working procedure that allows the shareholders to participate and exercise their right to vote at shareholders’ meetings remotely in the same manner as the shareholders that are physically present at the meeting. The ADR shareholders vote via proxy card through the Bank of New York, which does not allow for real time voting.

Explanation:

The Board has implemented a formal working procedure that allows shareholders to observe remotely and in real time, what happens in the shareholders meeting. At the 2016 and 2017 Annual General Shareholder Meeting, shareholders were given the opportunity to listen to the meeting live via a link on the Company’s website. The Company will use its best efforts to allow shareholders to observe remotely what happens in real time in future shareholder meetings.

Explanation:

The Board has implemented a formal working procedure that allows the general public to be informed in real time of the agreements adopted at the shareholder meetings. At the 2016 ad 2017Annual General Shareholders’ Meeting, shareholders were given the opportunity to listen to the meeting live via a link on the Company’s website. Any announcements will be made in both Spanish and English and will be made available on the Company’s website, as well as filed with the appropriate regulatory agency, as required.

Explanation:

The Board of Directors has implemented a formal working procedure in which the general public will be informed of the agreements adopted at the shareholder meetings, with a delay of no more than five minutes after the agreements are voted on. At the 2016 and 2017 Annual General Shareholders’ Meeting, shareholders were given the opportunity to listen to the meeting live via a link on the Company’s website. Following the shareholder meeting, the Company will make public as soon as possible any relevant resolutions that were adopted in the shareholder meeting. These announcements will be made in both Spanish and English and will be made available on the Company’s website, as well as filed with the appropriate regulatory agency, as required.

Explanation: CGP Section 8

The Board has approved a policy and established formal procedures in order to annually provide the public information regarding the policies adopted by the Company related to matters of social responsibility and sustainable development. The Company has a website where shareholders may access all available public information regarding the Company. Specifically, the Company’s website shall include the policies adopted related to social responsibility and sustainable development.

Explanation: CGP Section 8

The Board has approved a policy and established formal procedures in order to annually provide the public information regarding the relevant interest groups as identified by the Company, as well as the reasons why said groups are defined as such. The Company publishes a separate Sustainability Report to provide further information on its social and environmental performance. As part of the Sustainability Report, the Company identifies the relevant interest groups as well as the reason why said groups are identified as such, and indicators measured by the Company in matters related to social responsibility and sustainable development.

Explanation: CGP Section 1.a

The Board has approved a policy and established formal procedures in order to annually provide the public information regarding the major risks of the Company, including those related to sustainability, as well as the main sources of those risks. The Company annually informs its shareholders about the principal risks faced by the Company. These main risks are published annually in the 20-F filing (Item 3.D Risk Factors) and in the annual report.

Explanation: CGP Section 8

The Board has approved a policy and established formal procedures in order to annually provide the public information regarding the indicators measured by the Company in matters related to social responsibility and sustainable development. The Company annually publishes a Sustainability Report to provide further information on its social and environmental performance. As part of the Sustainability Report, the Company identifies the indicators measured by the Company in matters related to social responsibility and sustainable development.

Explanation: CGP Section 8

Although the Board has not approved a policy and established formal procedures in order to annually provide the public information regarding the existence of goals and the evolution of the sustainability indicators, the Company annually publishes a Sustainability Report to provide further information on its social and environmental performance. As part of the Sustainability Report, the Company identifies the indicators measured by the Company in matters related to social responsibility and sustainable development.

Explanation: CGP Section 9

The Company issues the following reports: i) a 20-F based on SEC guidelines, ii) a Sustainability Report base on international standards such as the directives of ISO 26000:2010, or the Principles and Standards of Reports and Disclosures of the Global Reporting lnitiative or the lnternational lntegrated Reporting Council, iii) an annual report based on SVS guidelines, and iv) financial statements based on both SEC and SVS guidelines.

Also, according to CGP Section 9, the SHEC Committee shall periodically review the safety, health, environmental and sustainability policies of the Company and, as appropriate, recommend changes in such policies to the Board of Directors or management. Regarding the definition of policies indicators and reports, the Board will ensure that international standards such as Global Reporting Initiative or equivalent have been followed.

Explanation: CGP Section 8

The company has an investor, shareholders and press relations unit, and allows them to clarify any doubt about the Company, its business, main risks, financial, economic or legal situation, and its publically known businesses. The Company maintains a dialogue with institutional shareholders and sell-side analysts as well as potential shareholders. The Company’s official spokespersons to the market, in general, and especially to the media, are its CEO and its CFO. Notwithstanding the above, the “Investor Relations” and “Communications” Departments facilitate the delivery of information which the Company must provide to certain persons and to the communities where they develop their activities. More specifically, the Investor Relations team manages a formal program of presentations to update institutional shareholders and analysts on developments in the Company, its business, main risks, and financial, economic or legal situation. The Company also issues quarterly financial results. Copies of these results, presentations and other press releases issued by the Company are available on its website. The Company has members of the Investor Relations team who are fluent in English, in an effort to answer questions from individuals who do not speak Spanish.

The Board receives regular summaries and feedback in respect to the meetings held as part of the investor relations program as well as receiving analyst reports on the Company.

The Company holds regular non-deal meetings with institutional investors and sell-side analysts throughout the year which include international investor non-deal roadshow programs, presenting at industry conferences, hosting sell-side analyst events, and conducting individual investor meetings. These shall be attended by various members of the senior management team.

The Company has a website by means of which the shareholder may access all available public information regarding the Company. The Company ensures that it will provide to shareholders and the general public the information required by law in regard to economic, legal, and financial situations, in line with the rights and duties inherent to the position as shareholder, in both Spanish and English. Specifically, the Company’s website shall include the policies adopted by the Company in relation to social responsibility and sustainable development.

Explanation: CGP Section 8

The Company has members of the Investor Relations team who are fluent in English, in an effort to answer questions from individuals who do not speak Spanish.

Explanation: CGP Section 8

The investor relations unit in not the only unit authorized by the Board to answer such questions from shareholder, investors and the press. The Company’s official spokespersons to the market, in general, and especially to the media, are its CEO and its CFO. Notwithstanding the above, the “Investor Relations” and “Communications” Departments and other executives in the Company facilitate the delivery of information which SQM must provide to certain persons and to the communities where they develop their activities.

Explanation: CGP Section 6

The Board has a formal procedure for continual professional development in place to detect and implement possible improvements in the generation processes of the company’s disclosure to the market in order for them to be easily understood by the public. The Board has delegated this to the Corporate Governance Committee.

Explanation: CGP Section 6

The Board has a formal procedure for continual professional development in place to detect and implement possible improvements in the generation processes and disclosure processes of the company’s disclosures to the market in order for them to be provided to the market in a timely way. The Board has delegated this to the Corporate Governance Committee. During 2017, this was not implemented.

Explanation: CGP Section 6

The Board has a formal procedure for continual professional development in place to detect and implement possible improvements, and will consider the advisory of an outside expert for the detection and implementation of such improvements. The Board has delegated this to the Corporate Governance Committee, and not necessarily considering the advisory of an outside expert for the detection and implementation of such improvements

Explanation: CGP Section 6

The Board has a formal procedure for continual professional development in place to detect and implement possible improvements in The Board has delegated this to the Corporate Governance Committee. It is done annually, but given that it does not consider the advisory of an outside expert, we must respond no.

Explanation: CGP Section 8

The Company has an updated website by means of which the shareholder may easily access all available public information regarding the Company.

Explanation: CGP Section 1.b

The Board has implemented a formal risk management and control process, which is operating and includes risk management guidelines approved by the Board. The Audit and Financial Risk Committee will review the Company’s policies relating to financial risk assessment and financial risk management, including a review of the Company’s key financial risks and related mitigations

Explanation: CGP Section 1.b

The Board has a formal risk management procedure in which a Risk Management unit or equivalent is responsible for the detection, quantification, monitoring and communication of risks. This entity reports directly to the Audit and Financial Risk Committee. The Audit and Financial Risk Committee and the Board meet as necessary, but not less than twice per year with the Company’s Risk Management and Compliance Officer.

During every meeting with the Risk Management and Compliance Officer, the Board will have an opportunity to meet with him or her without the presence of managers or senior management.

The Head of the Risk Management Unit reports directly to the CEO, but has direct access to the Audit and Financial Risk Committee and the Board.

Explanation: CGP Section 1.b

The Board has a formal risk management procedure in which an Internal Audit unit or equivalent is responsible for verifying the effectiveness and fulfillment of the policies, procedures, control and codes approved by the Board. The Internal Audit Manager reports directly to the Audit and Financial Risk Committee. The Board and the Audit and Financial Risk Committee meet as necessary, but not less than twice per year with the Company’s Internal Audit Manager to:

a)       Review the audit program or annual plan;

b)       Review the recommendations and improvements from the Head of Internal Audit in an effort to minimize the occurrence of irregularities or fraud;

c)       Review the effectiveness of the crime prevention models implemented by the Company; and

d)       Ensure that the Company’s internal policies, procedures, and controls are being effectively complied with by the entire organization and learn the Internal Audit Manager’s opinion in regard to the effectiveness, suitability or possible improvements of said policies, procedures and controls.

During every meeting with the Internal Audit Manager, the Board will have an opportunity to meet with him or her without the presence of managers or senior management.

The Company maintains an Internal Audit Unit, or equivalent, and a Risk Management Unit, or equivalent, and both report directly to the Audit and Financial Risk Committee.

Explanation: CGP Section 1.a

The Board has a formal risk management procedure which includes the quantification, monitoring and commination of risk, both the direct company risks and the indirect risks that can arise from other companies in the holding to which the company belongs. The Company will annually inform its shareholders about the principal risks faced by the Company. These main risks are published annually in the 20-F filing (Item 3.D Risk Factors) and in the annual report.

Explanation: CGP Section 1.a

The Board has a formal risk management procedure which considers the potential impact of sustainability, economic, social and environmental risk to which the Company is exposed. The Company will annually inform its shareholders about the principal risks faced by the Company. These main risks are published annually in the 20-F filing (Item 3.D Risk Factors) and in the annual report.

vi) It has as guidelines national and international principles, directives and recommendations such as, for example, those developed by "The Committee of Sponsoring Organizations" (COSO) or those contained in "Control Objectives for information and Related Technology"(COBIT) created by ISACA or ISO 31000:2009 and ISO 31004:2013.

Explanation: CGP Section 1.b

The Board has a formal review which has as guidelines the national and international principles, directives and recommendations such as, for example, those developed by "The Committee of Sponsoring Organizations" (COSO) or those contained in "Control Objectives for information and Related Technology" (COBIT) created by ISACA or ISO 31000:2009 and ISO 31004:2013.The Audit and Financial Risk Committee will meet as necessary, but not less than twice per year with the Company’s Head of Risk Management.

Explanation: CGP Section 1.a

The Board has a formal review procedure which includes a Code of Conduct or equivalent document, approved by the Board and reviewed annually, which defines the principles and guidelines that must guide the behavior of the company’s personnel and Board. i) the expected behavior of Company Directors and employees, ii) what is understood as conflict of interest, iii) the main situations that constitute a conflict of interest, iv) the procedure that a director must follow to declare and resolve a possible conflict of interest and v) policies and procedures relating to anti-corruption. The Code of Ethics shall be reviewed by the Board and updated, if necessary, annually.

Explanation: CGP Section 1.a

The Board has a formal review procedure which includes a Code of Conduct or equivalent document, approved by the Board and reviewed annually, which includes the information and permanent training of all the related personnel, regardless of the contractual bond that ties them to the company, regarding the policies, procedures, controls and codes implemented for the risk management. The Board will ensure that the Company has an established procedure known by everyone who works for the Company, which is especially designed to identify possible issues that goes against the current laws, standards, regulations, or Code of Ethics or Policies of the Company, and which provides confidentiality of the identity of the whistleblower through the Code of Ethics and through the whistleblower form which is available on the Company’s website.

Explanation: CGP Section 1.a

The Board has a formal risk management procedure in place, which is reviewed and updated at least annually.

Explanation: CGP Section 1.a

The Board has implemented a formal review procedure in place that channels whistleblower reports from its personnel, regardless of their contractual bond, shareholders, clients, suppliers, or outside third parties, regarding possible irregularities or illegal acts. The Company has an established procedure known by everyone who works for the Company, which is especially designed to identify possible issues that go against the current laws, standards, regulations, or Code of Ethics or Policies of the Company, and which provides confidentiality of the identity of the whistleblower through the Code of Ethics and through the whistleblower form which is available on the Company’s website.

Explanation:

The Board has not implemented a formal procedure that allows the whistleblower to know the status of his or her claim. If the claim is filed unanimously, it is impossible for the Company to inform the whistle blower of the status of his or her claim.

Explanation: CGP Section 9

The Board has implemented a formal process to detect and reduce organizational, social or cultural barriers that could be inhibiting the diversity of capabilities, conditions, experiences and visions that would have taken place without those barriers. The SHEC shall receive and review, not less than annually, the detected organizational, social or cultural barriers that could be inhibiting the natural diversity that would have taken place without these barriers.

Explanation: CGP Section 1

The Board has implemented a formal procedure to identify the diversity of capabilities, knowledge, conditions, experiences and visions that their main executives should possess.

The Board will annually identify potential replacements for the CEO and the senior management of the Company, who possess diverse capabilities, knowledge, conditions, experiences and visions that are required for each position, and to ensure a plan is in place to implement a timely replacement of the CEO and other members of the senior management team in the event of their unexpected absence, minimizing the impact on the Company.

Explanation: CGP Section 1

The Board has implemented a formal procedure to identify potential replacements for the CEO and other main executives of the company within the personnel, through the identification process described in the previous point ii.

The Board will annually identify potential replacements for the CEO and the senior management of the Company, who possess diverse capabilities, knowledge, conditions, experiences and visions that are required for each position, and to ensure a plan is in place to implement a timely replacement of the CEO and other members of the senior management team in the event of their unexpected absence, minimizing the impact on the Company.

Explanation: CGP Section 1

The Board has implemented a formal procedure in place to replace the CEO and other main executives of the company in a timely manner, and to pass their functions and relevant information, in case of their unexpected absence, minimizing the impact in the company.

The Board will annually identify potential replacements for the CEO and the senior management of the Company, who possess diverse capabilities, knowledge, conditions, experiences and visions that are required for each position, and to ensure a plan is in place to implement a timely replacement of the CEO and other members of the senior management team in the event of their unexpected absence, minimizing the impact on the Company.

Explanation: CGP Section 1

The Board has implemented a formal procedure in the detection of the matters referenced in I and ii above, which will be done at least annually.

The Board will annually identify potential replacements for the CEO and the senior management of the Company, who possess diverse capabilities, knowledge, conditions, experiences and visions that are required for each position, and to ensure a plan is in place to implement a timely replacement of the CEO and other members of the senior management team in the event of their unexpected absence, minimizing the impact on the Company.

Explanation: CGP Section 1.b

The Board has implemented a formal procedure to review, at least annually, the salary and policies of compensation of the CEO and other main executives, in order to detect and correct possible incentives to expose the company to risks that are not in line with the policies defined on the matter or to the execution of possible illegal acts. The Audit and Financial Risk Committee shall examine the remuneration and compensation plans of the senior management and Company employees.

Explanation: CGP Section 3

The Board has implemented a formal procedure which includes the advice of an external third party that supports the Board, and the Board committee if necessary, in the review referred to by previous point i. In performing its functions, the Board is entitled to rely on the advice, reports and opinions of management, counsel, accountants, auditors and other expert advisors. The Board shall have the authority to retain and approve the fees and retention terms of its outside advisors except to the extent that sole authority to retain certain advisors has been delegated to committees in accordance with their respective charters.

Explanation: CGP Section 6

The Board completed a self-evaluation of the Board regarding the adoption of the practices contained in this standard that was reviewed and validated by an external third party. Each year the Board will evaluate its own processes and performance through a Board Assessment designed to promote the Board’s on-going effectiveness and continuous improvement. This year, this evaluation was performed by a third party.

Explanation:

The person or group of people that did the review in 2017 has at least 5 years of proven experience in processes and controls effectiveness evaluation, or providing professional advisory or consulting services in the design and implementation of processes, risk management, or continual improvement.

In 2017, Uwe Hasseldieck completed the review.

Explanation: The entity or people that did the review is regulated by the Superintendence or foreign public or private organization of similar competence. The Board will hire the advisor whom they feel is best fit for the job.

In 2017, Uwe Hasseldieck completed the review.

Explanation: The entity or people that did the review did belong to a list established by the national stock exchanges of entities that fulfill the defined conditions to certify the self-evaluation to which this standard refers to. The Board will hire the advisor who they feel is best fit for the job.

In 2017, Uwe Hasseldieck completed the review. He is registered with the Santiago Stock Exchange.