The evolution of B Corp
The evolution of B Corp – proposed new standards raise the bar
As experts in supporting purpose-driven businesses on their B Corp journey, we know gaining certification is rewarding but never easy. B Corp’s exacting standards - for social and environmental performance, transparency and accountability – are the reason the B Corp logo is widely respected, adding credibility and value to a brand.
To retain trust in the B Corp movement, B Lab is reviewing these standards. It recognises that B Corp certification needs to evolve to stay relevant and continue to have maximum impact as a force for good. A consultation on the proposed new B Corp standards is open until Tuesday 26 March 2024. Here at The Good Crowd, we absolutely support the strengthening of the standards. We can see the proposed changes would bring significant benefits for the brands we work with and the wider world. That’s why we’d encourage everyone with an interest in sustainability and ethical business to have their say.
What you need to know
Whether you’re already a B Corp, have begun the certification process or are thinking about working towards it, you need to be aware of the proposed changes. So we’ve pulled together a brief summary of what may be coming down the line, and what we think about it:
B Corps will have to meet performance requirements across Impact Topics
The current standards require a business to achieve an 80-point score across five impact areas, measured in the B Impact Assessment (Workers, Customers, Community, Environment and Governance). The proposed new standards will ask B Corps to meet specific measures focused on social, environmental and governance performance, known as Impact Topics. These requirements will be tailored to a company’s context, considering factors like size, sector, industry and geography of operation.
We like this approach which will move away from a combined, single score to requiring a business to achieve a minimum standard in each of the Impact Topics. This will address the current criticism that B Corps may not always be acting on the most pressing social and environmental issues. For example, as it stands, a company can become a B Corp without a robust Net Zero strategy if they perform highly enough in other key areas. The new ‘Meets/Exceeds/Does Not Meet' visual scale for each Impact Topic will make it clearer to consumers where each B Corp is focusing its efforts.
It’s also great to see that each company’s individual context will be considered. We work with lots of businesses and no two companies are the same. They each face different challenges and can have a positive impact in different ways. This proposed change recognises that important fact.
Impact Business Models will be reviewed as part of the Foundation requirements
We think reviewing this information at the beginning of a company’s B Corp journey will be a real improvement on the current system. Some businesses find they are not clear on whether they have secured an IBM until the verification stage. This proposed change will address this issue, saving businesses valuable time.
Businesses will need to demonstrate clear, concrete performance improvement at recertification
A continuous improvement mindset is at the heart of the B Corp community. However, as it stands businesses can remain certified by maintaining, rather than improving, their 80-point score. Under the proposed new standards, companies recertifying must provide evidence of continuous improvement, demonstrate ongoing compliance and share their progress on specific plans and goals.
We like that this will strengthen the credibility of B Corp accreditation and keep businesses focused on always doing better for people and the planet. This proposed change will recognise businesses that go above and beyond, and challenge those who have slipped into a culture of complacency. It may be more demanding for B Corps, but there’s no doubt this is a ‘win-win’ for everyone.
How does this affect your business?
If you’re on, or about to embark on, your B Corp journey, please don’t worry too much about these changes. Muc one-to-one callh of the work companies have done on the existing impact areas will remain relevant. Though there may be some additional effort and investment needed to meet the performance requirements for the new Impact Topics. B Corp’s enabling tools and processes will also evolve along with the standards, so support will be available.
This is a large, complex project, with a lot of interdependencies. This means there is no concrete timeline for implementation of the new standards yet. However, B Lab has confirmed that B Corps due to recertify in 2025, and companies planning to apply for B Corp certification during 2024, will do so using the existing standards.
The proposed changes are all about making sure B Corp certification is relevant for the social and environmental challenges facing businesses today and tomorrow. They will help companies focus on what really matters. And that can only be a good thing for people, communities and the planet.
If you are looking for support and advice on becoming a B Corp or recertifying, we’re here to help. You can set up a one-to-one call, sign up for our free Intro to B Corp webinar or apply for our next 12-week B Corp Group Programme which starts in April.