THE CHALLENGES OF ESG AND CORPORATE PURPOSE IN PORTUGUESE CORPORATE

Abstract

This article attempts to reflect on the challenges of environmental, social and corporate governance and corporate purpose, as they should be addressed in Portuguese corporate law. The extent and global impact of negative externalities caused by the activities of larger commercial companies are widely recognized. Alternatives for restructuring corporate activity are therefore necessary for a more sustainable and healthy way of functioning for the community and the planet, proposing, to this end, a different, more binding and harmonized approach. Among the solutions currently advanced, our analysis focuses, firstly, on understanding the meaning of corporate purpose and how it should be viewed in the Portuguese legal system. Secondly, we will investigate the usefulness and suitability of the solution presented in relation to the aforementioned emerging restructuring of corporate activity. To this end, the notion of corporate purpose will be studied in conjunction with the classic concepts of corporate activity, profitable scope and commercial company interest.