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B Corp Standards are changing - here's what you need to know



Certified B Corporation logo
Image courtesy of B Lab


Since it's inception, B Corp certification has been based on a scoring system whereby successful businesses need to get 80 points or more across 4 to 5 areas. This system has been in place for over a decade and B Labs has decided to update their standards to reflect our changing world and with it what it means to be a force for good in business.


For any businesses considering certification or are approaching recertification, it's crucial to understand the changes that on the horizon. This blog provides an overview of the changes and how they are tailored to meet the unique contexts of the diverse companies that certify. If after reading this you want to know more about these changes and how it impacts your business, reach out to us at Realise Change. We are a B Corp certification and sustainability consultancy supporting businesses on their B Corp and ESG journey. We specialize in providing tailored support to suit your business, no matter the size, timeline or resources. Find our more about how we help here


Overview of Key Changes


1. Foundation and Performance Requirements: The Starting Point of Certification


B Corp certification will be split into two areas: Foundation Requirements and Performance Requirements.


To embark on the B Corp journey, companies must first meet the Foundation Requirements, which focus on the governance aspects of the business - ensuring they comply with legal obligations and understand their business model which will be looked at under the Performance Requirements.


The Performance Requirements, in turn, revolve around Impact Topics, addressing a company's operations, value chain, and stakeholders. The new standards are applicable to all businesses and must be met to achieve or keep certification. The new standards will emphasize social and environmental focus which differentiates certified B Corps from 'standard' companies and is a cornerstone of being a force for good. This renewed focus aims to provide clarity, enabling companies to channel their efforts towards the most impactful actions.


2. Tailoring Standards to Context: A Balancing Act


Recognizing the diverse landscape of businesses worldwide, the latest draft emphasizes tailoring standards to a company's size, sector, location, and industry. They attempt to 'strike a balance' between universality and relevance, and introduce differentiated sub-requirements based on size and sector. An equity mechanism acknowledges the operational barriers faced by companies in different locations, ensuring the standards remain actionable and attainable across the globe.


3. Recognizing and Motivating Performance


The desire for continuous recognition and differentiation across companies has been heard. The latest draft proposes a shift from an 80-point threshold to specific requirements across Impact Topics. Two key elements that could define performance is being considered (but not finalized): how companies meet sub-requirements in each Impact Topic and their performance across Impact Business Models (IBMs). This dual approach, categorizing companies as "Developing," "Advanced," "Outstanding," or "Leader," brings a nuanced perspective to acknowledging and motivating performance. Companies would be able to publically share their 'level' adding gravitas to their efforts.


It is worth noting that this is still under consideration and not yet finalized.


4. Incentivizing Continuous Improvement


Driving impact requires a commitment to continuous improvement. The latest draft standards embody this by combining mandatory improvements with opportunities for companies to go 'above and beyond.' Companies are expected to set improvement goals and showcase progress within Complementary Impact Topics. While not mandatory, the standards encourage companies to exceed baseline requirements and develop Impact Business Models (IBMs), fostering growth and positive change over time.


As we navigate these changes, the evolving B Corp Standards underscore the collective commitment to using business as a force for good. The latest draft invites companies to not only meet but exceed expectations, contributing to a global movement towards a more sustainable and socially responsible economic system.



If you want to find out more or discuss your company's situation, reach out to us here



About the Author:

Kathryn Andrews

Kathryn is a highly regarded sustainability and human resources professional with nearly two decades of progressive experience within a Fortune 50 organization. Seen as a trusted adviser, she serves as a valuable resource for business leaders seeking to cultivate forward-thinking, resilient practices in alignment with the rigorous standards of environmental, social and governance standards set by local and global bodies. Contact her here

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