Allbirds walks back ‘sustainable IPO’ claims ahead of market debut

Allbirds is a self-proclaimed ethical shoe maker that recently announced plans to launch its first “sustainable initial public offering,” retreating some of its ESG commitments prior to its planned market debut.

San Francisco-based start-ups will comply with the August IPO Prospectus, a “Sustainability Principles and Objectives Framework” developed in collaboration with a group of consultants advised by scholars, rating agencies and charities. Stated.

However, in an update to the prospectus submitted to the Securities and Exchange Commission late Monday, the company removed some important references to the framework. The number of references to the “SPO framework” in the document has been halved from 65 to 33.

In the latest version of the documentation, Allbirds has removed the claim that “we are doing this offering according to the SPO framework” and also removed the warning that doing so could increase the cost of the IPO.

Producing wool and eucalyptus-based shoes that have proven to be particularly popular with Silicon Valley technicians, Allbirds was the first company to use the concept of “SPO” in an IPO.

In previous versions of the prospectus, Allbirds wanted other companies to use the SPO framework, with investors “public companies working on the sustainability and positive results of all stakeholders. He said it would help “identify more properly.”

However, the latest filing removes references to other companies and only states that the framework will help investors better understand Allbirds.

The company declined to comment.

Allbirds was valued at $ 1 billion in the latest private funding round last September.The company is one of the waves supported by venture capital Consumer companies planning to go public This fall, we will focus on ESG credentials.

Eyeglass maker Warby Parker After completing its direct listing last week, it was valued at as high as $ 6 billion. On Monday, clothing rental service Rent the Runway also released a prospectus for an upcoming IPO.

Allbirds is faced with questions about the true sustainability of its business. The company claims that the sneakers are made of naturally derived materials and that making each pair has about 30% less carbon impact than its rivals.

However, despite transporting the material several times around the world during the manufacturing process, the carbon footprint calculation does not include the impact of the transport.

Allbirds face A civil class action lawsuit in the Southern District Court of New York alleging that the brand misleads consumers with its sustainability claims. Filed a motion to dismiss the proceedings.

Allbirds is not the only company facing the growing scrutiny of green claims. Last month, the SEC wrote to a number of companies expressing concern about climate change-related disclosures.

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Allbirds walks back ‘sustainable IPO’ claims ahead of market debut Source link Allbirds walks back ‘sustainable IPO’ claims ahead of market debut

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