Portugal: Disclosure Of Non-Financial And Diversity Information

Last Updated: 23 October 2017
Article by Maria João Ribeiro Mata and Carolina Meireles

Most Read Contributor in Portugal, October 2017

Decree-Law 89/2017 was published on 28 July and enacts Directive 2014/95/EU of the European Parliament and of the Council of 22 October 2014 into Portuguese law. The Directive governs the disclosure of non-financial and diversity information by certain large companies and groups.


This new law requires certain companies to include a non-financial statement in their annual management report. This statement must contain sufficient information to understand the progress, performance, position and impact of its activities. It must also address environmental, social and employees matters, gender equality, non-discrimination, respect for human rights, and anti-corruption and bribery matters, including:

  • A brief description of the business model;
  • A description of the policies pursued by the company in relation to these matters, including due diligence processes applied;
  • The outcome of those policies;
  • The main risks associated with these policies, connected to the activities of the company, including, if relevant and proportionate, its business relationships, products or services capable of having a negative impact on those areas, and the way those risks are managed by the company;
  • Key performance indicators relevant to its specific activity.

As an alternative to including a non-financial statement in the management report, the decree-law also establishes the possibility for companies to prepare a separate report, corresponding to the same financial year, which includes the information required for the non-financial statement.

If the company chooses to prepare the separate report, this must be published together with the management report, or made available to the public on the company's website, no later than six months after the date of closing of the balance sheet, and it must be referred to in the management report.

Upon the legal certification of the accounts, the chartered accountant is now required to state that the annual management report includes the non-financial statement, or that it has been included in a separate report.

To the extent that the disclosure of certain information regarding imminent matters or matters under negotiation is capable of seriously prejudicing the commercial position of the company, that information may, exceptionally, be omitted from the non-financial statement, provided that the members of the management and supervisory bodies issue a duly justified opinion to that effect.

Companies are subject to the obligation of disclosing non-financial statement in case they fulfil all of the following conditions:

  • Are classified as large companies, i.e., companies that exceed two of the following three limits ("Large Companies"):
  1. Total balance sheet: EUR 20 million;
  2. Net turnover: EUR 40 million;
  3. Average number of employees during the period: 250.
  • Are classified as public-interest entities1 ("Public-Interest Entities"); and
  • Have an average number of 500 employees during the financial year.

This obligation also applies to parent companies of "large groups"2 that are Public- Interest Entities, provided that they have an average number of 500 employees during the financial year. These companies must also include a consolidated non-financial statement in their consolidated accounts.

In this case, and provided that the non-financial information of a certain company and its subsidiaries is included in the consolidated management report of the parent company, that company and its subsidiaries are exempt from the obligation to include the non-financial statement in their own individual management reports.


The new Decree-Law also requires companies whose shares are admitted to trading on a regulated market, which are also classified as Large Companies, to include in their annual report on corporate governance structure and practices – comprised in a chapter of the annual management report or in an annex thereto – a description of the diversity policy applied by the company regarding its management and supervisory bodies with regard to aspects such as, age, gender, or educational and professional backgrounds, the objectives of that diversity policy, how it has been implemented and the results achieved in the reporting period.

This measure will allow the market to be informed regarding corporate governance practices of Large Companies and, will naturally put some pressure on Large Companies to ensure greater diversity in their management and supervision boards.

The obligation to disclose non-financial information and information on diversity will apply to Large Companies in all sectors, with an equivalent level in all EU Member States, thus enhancing transparency and cohesion of the information disclosed throughout the European Union.

This Decree-Law came into force on 2 August and applies to all financial years that begun on or after 1 January 2017.


1 Under article 3 of the Legal Framework on Audit Supervision, approved under article 2 of Law 148/2015, of 9 September, the following entities are classified as public-interest entities: a) The issuers of transferable securities admitted to trading on a regulated market; b) Credit institutions; c) Investment companies; d) Contractual or corporate collective investment undertakings, provided for under the general rules on collective investment undertakings, approved by Law no. 16/2015 of 24 February; e) Venture capital companies, venture capital investment companies, and venture capital funds, provided for in the Legal Framework on Venture Capital, Social Entrepreneurship and Specialised Investment, approved by Law no. 18/2015 of 4 March; f) Specialised alternative investment companies and specialised alternative investment funds, provided for in the Legal Framework on Venture Capital, Social Entrepreneurship and Specialised Investment, approved by Law no. 18/2015 of 4 March; g) Securitisation companies and securitisation funds; h) Insurance and re-insurance companies; i) Holding companies, when their holdings, directly and indirectly, confer them the majority of the voting rights in the credit institutions referred to in b) above; j) Holding companies in the insurance sector and mixed insurance holding companies; k) Pension funds; l) Public companies which, for two consecutive years, have a turnover above EUR 50 million, or net assets above EUR 300 million.

2 Large Groups are groups in which the parent company and its subsidiaries exceed, on a consolidated basis, at least two of the following limits: (a) Total balance sheet: EUR 20 million; (b) Net turnover: EUR 40 million; and c) Average number of employees during the financial year: 250.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

In association with
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement

Mondaq.com (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of www.mondaq.com

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about Mondaq.com’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to unsubscribe@mondaq.com with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


From time to time Mondaq may send you emails promoting Mondaq services including new services. You may opt out of receiving such emails by clicking below.

*** If you do not wish to receive any future announcements of services offered by Mondaq you may opt out by clicking here .


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to webmaster@mondaq.com.

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to EditorialAdvisor@mondaq.com.

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at enquiries@mondaq.com.

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at problems@mondaq.com and we will use commercially reasonable efforts to determine and correct the problem promptly.