TheCorporateCounsel.net

Allbirds, a footwear maker, recently filed a Form S-1 with the SEC for its IPO, and announced that it was hoping to pioneer the SPO Framework. The Form S-1 includes extensive disclosure about the Issuer Criteria for the SPO Framework, and notes that Allbirds worked with ISS ESG to assess and evaluate the company’s performance against the Issuer Criteria. The Form S-1 notest that “ISS ESG completed a review of Allbirds’ ESG commitments, processes, and practices and concluded in an External Review issued on August 30, 2021 that Allbirds has met all of the Issuer Criteria.” Allbirds states in the Form S-1:

We hope that Allbirds’ initial public offering will be the first step in establishing a framework for future SPOs. It is our expectation that an issuer who has conducted an SPO according to the SPO framework and continues to maintain all applicable requirements of the SPO framework will be viewed as a Sustainable Public Company, or an SPC. We will encourage the Advisory Council to continue to refine the SPO framework so that more issuers take into consideration positive ESG outcomes. We believe the establishment and public disclosure of the Sustainable Public Equity Offering framework will help investors better identify public companies that are committed to sustainability and positive outcomes for all stakeholders.

We will see whether the new SPO Framework catches on, as more issuers look for ways to differentiate themselves based on their ESG approach.

– Dave Lynn