The public company readiness checklist for any business working toward an initial public offering (IPO) is long and complicated. And now, there are signs in the marketplace that for many companies aiming for an IPO, this checklist may need to include an analysis of environmental, social and governance (ESG) performance and reporting. Demonstrating meaningful effort and progress with ESG issues could potentially impact IPO valuation — and long-term market value.

This article outlines some of the dynamics that suggest ESG reporting could move over time to becoming a must-have for meeting the expectations of shareholders and other key stakeholders.