{"id":2033,"date":"2022-04-14T09:15:11","date_gmt":"2022-04-14T01:15:11","guid":{"rendered":"https:\/\/www.praxonomy.com\/blog\/?p=2033"},"modified":"2022-05-26T15:03:55","modified_gmt":"2022-05-26T07:03:55","slug":"why-esg-is-important-pre-ipo","status":"publish","type":"post","link":"https:\/\/www.praxonomy.com\/blog\/why-esg-is-important-pre-ipo\/","title":{"rendered":"Why ESG is Important in the Pre-IPO Process"},"content":{"rendered":"\n<p>The path to an IPO is not simple. It requires significant time, cost, and effort. It\u2019s become even more complicated in recent years. This is because many investors no longer solely rely on financial metrics and market potential to assess investment viability. Companies need to commit to operate in a responsible and sustainable manner in order to deliver value over time.<\/p>\n\n\n<style>.wp-block-kadence-advancedheading.kt-adv-heading_4b4f23-7f, .wp-block-kadence-advancedheading.kt-adv-heading_4b4f23-7f[data-kb-block=\"kb-adv-heading_4b4f23-7f\"]{font-style:normal;}.wp-block-kadence-advancedheading.kt-adv-heading_4b4f23-7f mark, .wp-block-kadence-advancedheading.kt-adv-heading_4b4f23-7f[data-kb-block=\"kb-adv-heading_4b4f23-7f\"] mark{font-style:normal;color:#f76a0c;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;}<\/style>\n<h2 class=\"kt-adv-heading_4b4f23-7f wp-block-kadence-advancedheading\" data-kb-block=\"kb-adv-heading_4b4f23-7f\"><strong>But what is ESG?<\/strong><\/h2>\n\n\n\n<p>The acronym \u201cESG\u201d stands for Environmental, Social and Governance. It helps evaluate the impact an organisation has from an environmental, social, and governance perspective. Organisations who abide by ESG standards commit to ethical conduct in those three areas.<\/p>\n\n\n\n<p><a href=\"https:\/\/assets.ey.com\/content\/dam\/ey-sites\/ey-com\/en_in\/topics\/climate-change\/2022\/01\/ey-mainstreaming-esg-in-the-pre-ipo-process.pdf?download\" target=\"_blank\" rel=\"noreferrer noopener\">EY<\/a> lists a sample of issues associated with each letter in the acronym:<\/p>\n\n\n\n<p>Environmental Examples:<\/p>\n\n\n\n<ul><li>Climate change and emissions due to operations<\/li><li>Energy efficiency<\/li><li>Optimum utilisation of raw materials and water resources<\/li><li>Waste disposal<\/li><li>Biodiversity protection<\/li><\/ul>\n\n\n\n<p>Social Examples:<\/p>\n\n\n\n<ul><li>Data protection and cyber-security<\/li><li>Community relations<\/li><li>Social development<\/li><li>Employee well-being<\/li><li>Human rights<\/li><li>Community involvement<\/li><\/ul>\n\n\n\n<p>Governance Examples:<\/p>\n\n\n\n<ul><li>Company culture, structure, policies and processes<\/li><li>Ethical operations<\/li><\/ul>\n\n\n\n<p>It is important to note that ESG issues may differ across industries and businesses. A software company might be more strongly-focused on the social aspect of ESG, paying close attention to data privacy and security. While a company in the building materials industry might concentrate on environmental considerations.&nbsp;<\/p>\n\n\n<style>.wp-block-kadence-advancedheading.kt-adv-heading_7369d2-9d, .wp-block-kadence-advancedheading.kt-adv-heading_7369d2-9d[data-kb-block=\"kb-adv-heading_7369d2-9d\"]{font-style:normal;}.wp-block-kadence-advancedheading.kt-adv-heading_7369d2-9d mark, .wp-block-kadence-advancedheading.kt-adv-heading_7369d2-9d[data-kb-block=\"kb-adv-heading_7369d2-9d\"] mark{font-style:normal;color:#f76a0c;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;}<\/style>\n<h2 class=\"kt-adv-heading_7369d2-9d wp-block-kadence-advancedheading\" data-kb-block=\"kb-adv-heading_7369d2-9d\"><strong>6 Reasons Why ESG is Crucial Pre-IPO<\/strong><\/h2>\n\n\n\n<p>ESG consciousness is increasing.<\/p>\n\n\n\n<p>The organisations who choose to acknowledge this early on in their IPO journeys become more credible in the eyes of investors.<\/p>\n\n\n\n<p>Here are other reasons why ESG is critical for companies preparing for an IPO:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>1. Investor Expectations<\/strong><\/h3>\n\n\n\n<p>According to <a href=\"https:\/\/www.rbccm.com\/en\/insights\/story.page?dcr=templatedata\/article\/insights\/data\/2021\/11\/esg_integration_in_the_initial_public_offering_ipo_process\" target=\"_blank\" rel=\"noreferrer noopener\">RBC<\/a>, sustainable investment comprised 36% of total global assets under management (AUM), or more than US $35 trillion, in 2020. This figure is expected to grow.<\/p>\n\n\n\n<p>Sustainability-focused investors pursue investments that align with their values and drive positive change. They look at ESG metrics to support their investment decisions. There is the significant risk of leaving these investors on the sidelines if there is no early strategic approach to integrating ESG. It can play a critical role in the company\u2019s valuation process.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>2. &nbsp; Employee Engagement and Retention<\/strong><\/h3>\n\n\n\n<p>ESG can help attract and retain talent, the organisation\u2019s most valuable asset.<\/p>\n\n\n\n<p>The same EY paper referenced above states that millennials and Gen Z are among the largest generations that seek \u201cpurposeful\u201d job opportunities. They care about who they work for, and what their employers stand for.\u00a0<\/p>\n\n\n\n<p>Having a corporate mission that resonates with employees\u2019 personal values can foster better employee productivity and engagement, less attrition, and motivate teams to execute corporate strategy that meets investor and stakeholder expectations.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>3.&nbsp; Developing Regulatory Requirements<\/strong><\/h3>\n\n\n\n<p>Regulatory requirements that impact sustainability are expected to increase over the next couple of years. Some are already in place.&nbsp;<\/p>\n\n\n\n<p>For instance, the EU&#8217;s <a href=\"https:\/\/www.eurosif.org\/policies\/sfdr\/\" target=\"_blank\" rel=\"noreferrer noopener\">Sustainable Finance Disclosure Regulation<\/a>, which came into effect in March 2021, requires financial market participants operating in the EU to disclose sustainability-related information to ensure that investors have the data they need to make informed decisions.<\/p>\n\n\n\n<p>There is also the proposed EU <a href=\"https:\/\/plana.earth\/academy\/csrd-corporate-sustainability-reporting-directive\/\" target=\"_blank\" rel=\"noreferrer noopener\">Corporate Sustainability Reporting Directive <\/a>which will build on the Non-Financial Reporting Directive and extend reporting requirements to a wider set of public companies, including small and medium-size listed companies.<\/p>\n\n\n\n<p>All of this is to say that the sooner pre-IPO companies can start working towards a reporting and disclosure process, the more prepared they will be to meet these regulatory requirements once listed.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>4. Stronger Brand Equity and Market Reputation<\/strong><\/h3>\n\n\n\n<p>When ESG reporting is communicated effectively, it can serve as a powerful and convincing brand management tool for companies. Pre-IPO companies that engage in providing value for all stakeholders not only build trust, but also help create a positive market reputation when it comes to their approach towards sustainability. In other words, it helps firms leverage their reputation when going public.<\/p>\n\n\n<style>.wp-block-kadence-advancedheading.kt-adv-heading_67c416-5d, .wp-block-kadence-advancedheading.kt-adv-heading_67c416-5d[data-kb-block=\"kb-adv-heading_67c416-5d\"]{font-style:normal;}.wp-block-kadence-advancedheading.kt-adv-heading_67c416-5d mark, .wp-block-kadence-advancedheading.kt-adv-heading_67c416-5d[data-kb-block=\"kb-adv-heading_67c416-5d\"] mark{font-style:normal;color:#f76a0c;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;}<\/style>\n<h3 class=\"kt-adv-heading_67c416-5d wp-block-kadence-advancedheading\" data-kb-block=\"kb-adv-heading_67c416-5d\"><strong>5. Financial Impact<\/strong><\/h3>\n\n\n\n<p>The financial metrics attributed to ESG performance are not to be scoffed at:<\/p>\n\n\n\n<p>\u201cAccording to RBC CM research, S&amp;P 500 and S&amp;P Europe 350 companies with better ESG risk profiles have outperformed those with higher ESG risk over time on a sector-netural basis\u2026.Companies with the best ESG risk profiles tend to have <strong>lower<\/strong> <strong>total return volatility, higher ROEs, and higher P\/E valuations<\/strong>. Other studies have shown that companies with high ESG ratings have <strong>less systematic risk exposure, lowering investors\u2019 required rate of return and the company\u2019s cost of capital.<\/strong>\u201d<\/p>\n\n\n\n<p>Pre-IPO firms should realise the financial materiality of ESG reporting. The quality of ESG and sustainability disclosures can have a profound impact (financially) for the company.<\/p>\n\n\n<style>.wp-block-kadence-advancedheading.kt-adv-heading_35630f-8e, .wp-block-kadence-advancedheading.kt-adv-heading_35630f-8e[data-kb-block=\"kb-adv-heading_35630f-8e\"]{font-style:normal;}.wp-block-kadence-advancedheading.kt-adv-heading_35630f-8e mark, .wp-block-kadence-advancedheading.kt-adv-heading_35630f-8e[data-kb-block=\"kb-adv-heading_35630f-8e\"] mark{font-style:normal;color:#f76a0c;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;}<\/style>\n<h3 class=\"kt-adv-heading_35630f-8e wp-block-kadence-advancedheading\" data-kb-block=\"kb-adv-heading_35630f-8e\"><strong>6. Bolster Competitive Edge&nbsp;<\/strong><\/h3>\n\n\n\n<p>It\u2019s not only investors who are paying close attention to a company\u2019s ESG practices \u2014 consumers are taking notice as well. Consumers expect companies to contribute to the betterment of society and be held accountable for their practices. They continue to opt for brands that allow them to invest in \u201csustainable innovations\u201d that generate consistent returns long-term while resonating with their values and beliefs.&nbsp;<\/p>\n\n\n\n<p>It\u2019s important to note that consumers also penalise businesses whose operations are harmful to society.<\/p>\n\n\n\n<p>An EY global study showed that <strong>61% of respondents would be \u201cless likely to buy a product if the company was performing poorly on environmental practices<\/strong>\u2026.<strong>59% of the respondents are becoming more influenced by the environmental impact of the consumer products they buy<\/strong>, <strong>38% have boycotted food brands because of perceived bad environmental practices<\/strong> \u2014 a figure that reaches 48% among younger consumers.\u201d<\/p>\n\n\n\n<p>Private companies who are considering going public must take these into consideration for building a loyal customer base and managing profitability performance and expectations.<\/p>\n\n\n<style>.wp-block-kadence-advancedheading.kt-adv-heading_e60653-81, .wp-block-kadence-advancedheading.kt-adv-heading_e60653-81[data-kb-block=\"kb-adv-heading_e60653-81\"]{font-style:normal;}.wp-block-kadence-advancedheading.kt-adv-heading_e60653-81 mark, .wp-block-kadence-advancedheading.kt-adv-heading_e60653-81[data-kb-block=\"kb-adv-heading_e60653-81\"] mark{font-style:normal;color:#f76a0c;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;}<\/style>\n<h2 class=\"kt-adv-heading_e60653-81 wp-block-kadence-advancedheading\" data-kb-block=\"kb-adv-heading_e60653-81\"><strong>How to start the ESG journey pre-IPO<\/strong><\/h2>\n\n\n\n<p>It\u2019s not easy to jump head-first into implementing ESG principles in the pre-IPO journey. But the following steps might be a good place to begin.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>1. Align company purpose with sustainability objectives&nbsp;<\/strong><\/h3>\n\n\n\n<p>It\u2019s crucial to meet stakeholders\u2019 \u2014 not just shareholders\u2019 \u2014 expectations when it comes to integrating ESG principles into the DNA of the firm.<\/p>\n\n\n\n<p>One way of doing this is to embed these principles into the corporate purpose of the company. The difference between corporate purpose and a mission statement is that the purpose reflects what the company stands for, rather than what it provides or does from a functional standpoint.<\/p>\n\n\n\n<p>The purpose should address the ESG impact of products and services, as well as how it will respond to sustainability challenges (e.g. climate change, systemic social issues, leadership accountability, diversity and inclusion, employee well-being, etc.) It provides answers as to how the company will deliver holistic value for all stakeholders.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>2. Identify areas where ESG might intersect with business operations<\/strong><\/h3>\n\n\n\n<p>It\u2019s also important to understand where business operations impact ESG and vice versa. <a href=\"https:\/\/www.greenbiz.com\/article\/going-public-boards-should-take-lead-esg-planning\" target=\"_blank\" rel=\"noreferrer noopener\">Asking the following questions can be a start<\/a>:<\/p>\n\n\n\n<ul><li>Do you know everything you need to know about how and where your raw materials or product components are sourced?<\/li><li>Do you have diversity and inclusion objectives and processes for hiring\/retaining employees and vendor selection? Do you measure your progress over time?<\/li><li>Are you implementing sustainability enhancements across your operation?<\/li><li>Do you have a proper board structure, including board members with a diverse range of backgrounds and viewpoints?&nbsp;<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>3. Understand who your stakeholders are and consider the investor profile you\u2019d like to attract<\/strong><\/h3>\n\n\n\n<p>Firms can&#8217;t do everything all at once. Gaining a true understanding of who will be impacted by the company\u2019s practices, along with the investors the organisation wants, will help the pre-IPO company prioritise ESG initiatives.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>4. Adopt a framework for measuring ESG performance<\/strong><\/h3>\n\n\n\n<p>Pre-IPO companies should ensure accurate and quality ESG disclosures on its performance early on, so as to understand how to tell its ESG story and report its efforts.&nbsp;<\/p>\n\n\n\n<p>By sharing the company\u2019s sustainability strategy, companies aspiring to go public can attract the growing number of socially conscious investors.&nbsp; In addition, effective communication practices can add dimension to the value proposition of the company.<\/p>\n\n\n<style>.wp-block-kadence-advancedheading.kt-adv-heading_50f4d9-42, .wp-block-kadence-advancedheading.kt-adv-heading_50f4d9-42[data-kb-block=\"kb-adv-heading_50f4d9-42\"]{font-style:normal;}.wp-block-kadence-advancedheading.kt-adv-heading_50f4d9-42 mark, .wp-block-kadence-advancedheading.kt-adv-heading_50f4d9-42[data-kb-block=\"kb-adv-heading_50f4d9-42\"] mark{font-style:normal;color:#f76a0c;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;}<\/style>\n<h2 class=\"kt-adv-heading_50f4d9-42 wp-block-kadence-advancedheading\" data-kb-block=\"kb-adv-heading_50f4d9-42\"><strong>To Close<\/strong> \u2014<\/h2>\n\n\n\n<p>Early stage and growing companies who embark on the ESG journey reflect and signal their resilience, responsibility and readiness before going public.<\/p>\n\n\n\n<p>Levi\u2019s, the clothing apparel company, had one of the most successful IPOs of 2019. Their CEO, Chip Bergh, puts the ESG focus into perspective: there is \u201chearty investor appetite\u201d to support companies with a strong moral compass.<\/p>\n\n\n\n<p>ESG-oriented companies do not have to make sacrifices in this regard.<\/p>\n\n\n\n<p>Bergh seems to take this position as well:<\/p>\n\n\n\n<p><em>\u201cIt is false to say we or any company must choose between business performance or responsible social conduct. The most successful companies do both.\u201d<\/em><\/p>\n<!-- AddThis Advanced Settings generic via filter on the_content --><!-- AddThis Share Buttons generic via filter on the_content -->","protected":false},"excerpt":{"rendered":"<p>Investment viability is no longer simply about financial metrics and market potential. There is a growing trend for companies to commit to operate in a responsible and sustainable manner in order to deliver value over time. Here&#8217;s why ESG is important for companies aspiring to go public.<!-- AddThis Advanced Settings generic via filter on get_the_excerpt --><!-- AddThis Share Buttons generic via filter on get_the_excerpt --><\/p>\n","protected":false},"author":2,"featured_media":2035,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[5],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Why ESG is Important in the Pre-IPO Process - Praxonomy Blog<\/title>\n<meta name=\"description\" content=\"Companies are being called upon to operate in a responsible and sustainable manner. Here&#039;s why ESG is important for companies going public.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.praxonomy.com\/blog\/why-esg-is-important-pre-ipo\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Praxonomy Blog: Why ESG is Important in the Pre-IPO Process\" \/>\n<meta property=\"og:description\" content=\"Companies are being called upon to operate in a responsible and sustainable manner. Here&#039;s why ESG is important for companies going public.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.praxonomy.com\/blog\/why-esg-is-important-pre-ipo\/\" \/>\n<meta property=\"og:site_name\" content=\"The Boardlogic Blog | News, Updates, Industry Insights and Best Practices.\" \/>\n<meta property=\"article:published_time\" content=\"2022-04-14T01:15:11+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-05-26T07:03:55+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.praxonomy.com\/blog\/wp-content\/uploads\/2022\/04\/Why-ESG-is-Important-in-the-Pre-IPO-Process_social.png\" \/>\n\t<meta property=\"og:image:width\" content=\"2400\" \/>\n\t<meta property=\"og:image:height\" content=\"1254\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Carissa Duenas\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Praxonomy Blog: Why ESG is Important in the Pre-IPO Process\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/www.praxonomy.com\/blog\/wp-content\/uploads\/2022\/04\/Why-ESG-is-Important-in-the-Pre-IPO-Process_social.png\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Carissa Duenas\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"7 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.praxonomy.com\/blog\/why-esg-is-important-pre-ipo\/\",\"url\":\"https:\/\/www.praxonomy.com\/blog\/why-esg-is-important-pre-ipo\/\",\"name\":\"Why ESG is Important in the Pre-IPO Process - Praxonomy Blog\",\"isPartOf\":{\"@id\":\"https:\/\/www.praxonomy.com\/blog\/#website\"},\"datePublished\":\"2022-04-14T01:15:11+00:00\",\"dateModified\":\"2022-05-26T07:03:55+00:00\",\"author\":{\"@id\":\"https:\/\/www.praxonomy.com\/blog\/#\/schema\/person\/c7f1e6afbb97d79f23850d7938b6d748\"},\"description\":\"Companies are being called upon to operate in a responsible and sustainable manner. Here's why ESG is important for companies going public.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.praxonomy.com\/blog\/why-esg-is-important-pre-ipo\/#breadcrumb\"},\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.praxonomy.com\/blog\/why-esg-is-important-pre-ipo\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.praxonomy.com\/blog\/why-esg-is-important-pre-ipo\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.praxonomy.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Why ESG is Important in the Pre-IPO Process\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.praxonomy.com\/blog\/#website\",\"url\":\"https:\/\/www.praxonomy.com\/blog\/\",\"name\":\"The Boardlogic Blog | News, Updates, Industry Insights and Best Practices.\",\"description\":\"The official blog for news, updates, industry insights and best practices from Boardlogic by Formidium \u2014 board meeting management software\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.praxonomy.com\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-GB\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.praxonomy.com\/blog\/#\/schema\/person\/c7f1e6afbb97d79f23850d7938b6d748\",\"name\":\"Carissa Duenas\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/www.praxonomy.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.praxonomy.com\/blog\/wp-content\/uploads\/2020\/12\/carissa-dueanas-150x150.jpg\",\"contentUrl\":\"https:\/\/www.praxonomy.com\/blog\/wp-content\/uploads\/2020\/12\/carissa-dueanas-150x150.jpg\",\"caption\":\"Carissa Duenas\"},\"description\":\"Carissa is a marketing consultant and content contributor for Praxonomy. She began her management consulting career at Accenture and has since worked in a consultant capacity for leading organisations in the technology sector and communications space. She is a contributor to The Globe and Mail, Canada\u2019s leading national daily.\",\"url\":\"https:\/\/www.praxonomy.com\/blog\/author\/carissa\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Why ESG is Important in the Pre-IPO Process - Praxonomy Blog","description":"Companies are being called upon to operate in a responsible and sustainable manner. Here's why ESG is important for companies going public.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.praxonomy.com\/blog\/why-esg-is-important-pre-ipo\/","og_locale":"en_GB","og_type":"article","og_title":"Praxonomy Blog: Why ESG is Important in the Pre-IPO Process","og_description":"Companies are being called upon to operate in a responsible and sustainable manner. Here's why ESG is important for companies going public.","og_url":"https:\/\/www.praxonomy.com\/blog\/why-esg-is-important-pre-ipo\/","og_site_name":"The Boardlogic Blog | News, Updates, Industry Insights and Best Practices.","article_published_time":"2022-04-14T01:15:11+00:00","article_modified_time":"2022-05-26T07:03:55+00:00","og_image":[{"width":2400,"height":1254,"url":"https:\/\/www.praxonomy.com\/blog\/wp-content\/uploads\/2022\/04\/Why-ESG-is-Important-in-the-Pre-IPO-Process_social.png","type":"image\/png"}],"author":"Carissa Duenas","twitter_card":"summary_large_image","twitter_title":"Praxonomy Blog: Why ESG is Important in the Pre-IPO Process","twitter_image":"https:\/\/www.praxonomy.com\/blog\/wp-content\/uploads\/2022\/04\/Why-ESG-is-Important-in-the-Pre-IPO-Process_social.png","twitter_misc":{"Written by":"Carissa Duenas","Estimated reading time":"7 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.praxonomy.com\/blog\/why-esg-is-important-pre-ipo\/","url":"https:\/\/www.praxonomy.com\/blog\/why-esg-is-important-pre-ipo\/","name":"Why ESG is Important in the Pre-IPO Process - Praxonomy Blog","isPartOf":{"@id":"https:\/\/www.praxonomy.com\/blog\/#website"},"datePublished":"2022-04-14T01:15:11+00:00","dateModified":"2022-05-26T07:03:55+00:00","author":{"@id":"https:\/\/www.praxonomy.com\/blog\/#\/schema\/person\/c7f1e6afbb97d79f23850d7938b6d748"},"description":"Companies are being called upon to operate in a responsible and sustainable manner. Here's why ESG is important for companies going public.","breadcrumb":{"@id":"https:\/\/www.praxonomy.com\/blog\/why-esg-is-important-pre-ipo\/#breadcrumb"},"inLanguage":"en-GB","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.praxonomy.com\/blog\/why-esg-is-important-pre-ipo\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.praxonomy.com\/blog\/why-esg-is-important-pre-ipo\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.praxonomy.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Why ESG is Important in the Pre-IPO Process"}]},{"@type":"WebSite","@id":"https:\/\/www.praxonomy.com\/blog\/#website","url":"https:\/\/www.praxonomy.com\/blog\/","name":"The Boardlogic Blog | News, Updates, Industry Insights and Best Practices.","description":"The official blog for news, updates, industry insights and best practices from Boardlogic by Formidium \u2014 board meeting management software","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.praxonomy.com\/blog\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-GB"},{"@type":"Person","@id":"https:\/\/www.praxonomy.com\/blog\/#\/schema\/person\/c7f1e6afbb97d79f23850d7938b6d748","name":"Carissa Duenas","image":{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/www.praxonomy.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/www.praxonomy.com\/blog\/wp-content\/uploads\/2020\/12\/carissa-dueanas-150x150.jpg","contentUrl":"https:\/\/www.praxonomy.com\/blog\/wp-content\/uploads\/2020\/12\/carissa-dueanas-150x150.jpg","caption":"Carissa Duenas"},"description":"Carissa is a marketing consultant and content contributor for Praxonomy. She began her management consulting career at Accenture and has since worked in a consultant capacity for leading organisations in the technology sector and communications space. She is a contributor to The Globe and Mail, Canada\u2019s leading national daily.","url":"https:\/\/www.praxonomy.com\/blog\/author\/carissa\/"}]}},"modified_by":"Carissa Duenas","_links":{"self":[{"href":"https:\/\/www.praxonomy.com\/blog\/wp-json\/wp\/v2\/posts\/2033"}],"collection":[{"href":"https:\/\/www.praxonomy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.praxonomy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.praxonomy.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.praxonomy.com\/blog\/wp-json\/wp\/v2\/comments?post=2033"}],"version-history":[{"count":10,"href":"https:\/\/www.praxonomy.com\/blog\/wp-json\/wp\/v2\/posts\/2033\/revisions"}],"predecessor-version":[{"id":2090,"href":"https:\/\/www.praxonomy.com\/blog\/wp-json\/wp\/v2\/posts\/2033\/revisions\/2090"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.praxonomy.com\/blog\/wp-json\/wp\/v2\/media\/2035"}],"wp:attachment":[{"href":"https:\/\/www.praxonomy.com\/blog\/wp-json\/wp\/v2\/media?parent=2033"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.praxonomy.com\/blog\/wp-json\/wp\/v2\/categories?post=2033"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.praxonomy.com\/blog\/wp-json\/wp\/v2\/tags?post=2033"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}