Salmon Evolution’s IPO (B): Leveraging ESG for Sustainable Growth and Market Success

The case study focuses on the strategic use of environmental, social, and governance (ESG) principles by Salmon Evolution during its initial public offering (IPO) and subsequent growth phase. A Norwegian company founded in 2017, Salmon Evolution has made significant strides in sustainable aquaculture by adopting on-land salmon farming technologies that address the environmental and production challenges of traditional salmon farming. Leveraging its strong ESG proposition, it successfully went public with an IPO on the Euronext Oslo Stock Exchange in July 2021, after securing substantial funding through private placements and government grants. Salmon Evolution’s strategic focus not only facilitated its IPO but also positioned it as a potential global leader in sustainable salmon production, with plans to expand its market reach particularly in Asia and the United States, while maintaining a commitment to reducing carbon emissions and enhancing fish welfare through its innovative Hybrid Flow-Through System (HFS) technology.

The case study is designed to facilitate class discussion on the integration of environmental, social, and governance (ESG) principles into business strategy, particularly in the context of an initial public offering (IPO). The objectives are to explore the strategic use of ESG in capital raising and investor relations, understand the challenges of pre-revenue IPOs, discuss the role of ESG reporting and stakeholder communication, and examine the risks and opportunities associated with sustainable business practices in the aquaculture industry. The case study provides a comprehensive view of how Salmon Evolution, a Norwegian company specializing in sustainable salmon farming, successfully navigated the IPO process by emphasizing its ESG credentials to attract investment and position itself for global expansion while maintaining a commitment to sustainability and innovation in aquaculture.