Social responsibility as a key objective among IPOS

Abstract

The financial community, investors and other stakeholders no longer rely purely on financial performance and market potential to determine the viability of a potential IPO. Integrating environmental, social and governance (ESG) considerations into financial performance is a key topic that is becoming increasingly important in financial markets. Socially conscious investors are expected to use ESG criteria to screen potential investments. Increasing evidence that a company's ESG profile is linked to financial performance is partly motivating this interest. The article analyses the main reasons for the popularity of the ESG in IPOs, the extensiveness of the use of such a referencing, the regulator's behaviour in relation to social responsibility and the effectiveness of ESG in IPOs