Perspectives

ESG reporting journey and sustainability strategy pre-IPO

Corporate sustainability is not just about regulations.

Could your sustainability reporting impact the effectiveness of your initial public offering (IPO)? Whether your company is pre-IPO or has recently had an IPO, you’re likely thinking about increased environmental, social, and governance (ESG) reporting requirements. But regulations are just one part of corporate sustainability and stakeholder demands. In fact, many stakeholders are acting ahead of regulation. The largest institutional investors publicly disclose that ESG and sustainability considerations are integral to their business. They’ve typically made public commitments and are aiming to improve on these factors. In other words, your company’s access to capital could depend on your ESG goals and performance.

Explore how our unique one-team approach to IPO planning for ESG disclosures can advise you as you develop your ESG equity story. Learn ways you can increase your business value, gain investor buy-in, and build credibility.

According to insights garnered from our IPO SelfAssess™ tool, 75% of pre-IPO companies that responded had a low level of ESG readiness. As investors look at sustainability metrics to help support their investment decisions, this could have an impact on your company’s valuation and opportunities.

Your approach to ESG in pre-IPO planning

Our IPO Advisory Services team can provide end-to-end services to advise on your company’s ESG needs—as part of seven critical workstreams—throughout the IPO process. Our tools and methodologies can allow you to reduce transaction risk and compress execution timelines so you can focus on your company and investors.

Building a strong sustainability strategy is a key step toward meeting stakeholder requirements and sustaining your company long after your listing day. Deloitte’s multipronged approach to ESG advisory with emerging-growth and pre-IPO companies can provide four perspectives:

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Institutional investor

Discover ways to align your business strategy with your targeted investors.

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Industry

Examine your industry for disclosures, standards, and goals relevant to your sector.

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Peer benchmarking

Explore what competitors are disclosing and which key performance indicators (KPIs) they’re tracking.

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Regulatory

Learn what the different ESG reporting requirements are in your markets of operation to decrease the risk of noncompliance once you go public.

Set your ESG priorities to drive stakeholder engagement and value creation

It’s hard enough to keep up with evolving regulations in this fast-changing landscape. Now, pressure and activity from investors, rating agencies, proxy advisers, and consumers is generally shaping how the marketplace addresses ESG. The sooner you integrate sustainability into your equity story, the more likely you may be able to drive an effective, more accretive. IPO transaction. This can also help you better adapt to the increased requirements of public entities.

What can you do now to show your commitment to sustainability goals?

Assess your ESG readiness

Get customized insights for your IPO and ESG journeys using two free and easy-to-use tools: ESG SelfAssess™, which can allow you to understand your company’s ESG readiness and strategy, and IPO SelfAssess™, which provides insights into your company’s readiness to go public in nine key areas, one of which is ESG.

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