Sustainability diligence now key to pre-IPO process

Author: Amélie Labbé | Published: 11 Aug 2016

Sustainability due diligence on IPOs is gaining ground on the traditional disclosure of financial, legal, tax and accounting information.

The assessment of environmental, social and governance (ESG) risks and opportunities is now an integral part of the IPO process, according to PwC.

A recent report from the firm states that rather than waiting for ESG issues to surface in the press, from SEC comment letters, arise in an external financial statement audit, or through some catalyst, companies should be anticipating those well in advance of the IPO being finalised.

As such, companies need to up their transparency game by carrying out their own sustainability due diligence well ahead of their life as a public company in the public eye.

Companies need to present investors with a complete risk profile Taking into account sustainability issues reflects a broader trend in regulation towards trying to focus on types of corporate behaviour, and...