Current and upcoming regulatory frameworks, existing sustainable finance tools, best practices related to ESG implementation policies, corporate sustainability reporting standards, and market trends define the core elements of “E” (ENVIRONMENTAL), “S” (SOCIAL), and “G” (GOVERNANCE) in a Sustainable IPO. This is based on principles of good governance, informational transparency, and use of proceeds also from an ESG perspective.

An IPO can be defined as "Sustainable" when the company has good governance in terms of board composition, can manage and prevent ESG risks, and pursues long-term Sustainable Development (or common benefit in the case of Benefit Corporations) through use of proceeds aimed at achieving or promoting sustainability objectives, ensuring transparency of ESG factors through comparable and measurable sustainability reporting.