With publicly traded companies increasing their focus on environmental, social and governance (ESG) performance, it would only make sense that investors and stakeholders would have similar expectations of private companies planning to go public. Setting off early on the ESG journey can emphasize your company’s commitment to sustainability and demonstrate its awareness of the impact these factors have on business operations. As companies prepare to list on a stock exchange, acquiring a third-party ESG assessment can provide credibility to your sustainability initiatives and generate more interest about your initial public offering (IPO).
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Benefits of the IPO ESG Assessment
Showcase your company’s ESG performance in the IPO prospectus.
Meet investor expectations for ESG reporting and transparency.
Demonstrate your commitment to ESG and generate interest in your public offering.
Identify gaps in ESG disclosures and set improvement objectives.
Being rated by Sustainalytics can help your company be considered for sustainable/ESG indices.
Attract a broader set of investors
The IPO ESG Assessment includes
An ESG Risk Rating score and assessment summary that can be used in the prospectus, IPO roadshow, and marketing materials.
Complete assessment of the company’s shareholder policies, its board/executives and their remuneration against set standards.
Six-pillar assessment of the company’s corporate governance to accurately reflect its post-IPO state.
An ESG insight presentation at the end of the research process to facilitate better understanding of the research.
Opportunity to provide feedback on the draft assessment and meet directly with our research analysts.
Full control over privacy and disclosure of the assessment.
Examples of our IPO ESG Assessment
Allbirds
"In 2021, we engaged Sustainalytics, a globally recognized independent ESG assessment provider, to perform a broad-based Corporate ESG Assessment of Allbirds. Sustainalytics assessed us as having an overall indicative Corporate ESG Assessment score of 14.7, which places Allbirds in the “low risk” category as of August 2021."
Source: Allbirds
Var Energi
"Vår Energi, a leading oil and gas producer on the Norwegian continental shelf, is pleased to announce that it has received an indicative Corporate Environmental, Social and Governance (ESG) Assessment from Sustainalytics, a globally recognized ESG research, ratings and data firm. The indicative Corporate ESG Assessment score recognizes Vår Energi’s integration of ESG factors in risk management and strategy for long- term value creation.
Sustainalytics assessed Vår Energi as having an overall indicative Corporate ESG Assessment score of 30.1 as of December 2021. The indicative score would place Vår Energi 14 out of 155, or in the 9th percentile, among Oil and Gas Exploration and Production companies assessed by Sustainalytics."
Source: Var Energi
Why Sustainalytics?
A Single Market Standard
Consistent approach to ESG assessments across the investment spectrum.
Award-Winning Research and Data
Firm recognized as Best ESG Research and Data Provider by Environmental Finance and Investment Week.
End-to-End ESG Solutions
ESG products and services that serve the entire investment value chain.
30 Years of ESG Expertise
500+ ESG research analysts across our global offices.
A Leading SPO Provider
As recognized by Environmental Finance and the Climate Bonds Initiative.
Related Insights and Resources
Does ESG Impact Valuation? Answering the Most Common Questions About IPO ESG Assessments
Companies working toward an IPO increasingly understand that having an effective ESG strategy is an important strategic consideration for investors and regulators alike. This FAQ answers the most common questions about what an ESG assessment involves.
Preparing for an IPO: How an ESG Assessment Can Make a Difference
For pre-IPO companies, having a plan to manage ESG issues and disclosures can make a difference in pre-IPO fundraising, valuation, building credibility in the market, and contributing to the overall success of an IPO. This blog post explains why.
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