What are B Corp standards and why are they about to get tougher?
B Corporation standards could get tougher as B Lab Global launches its second public consultation at a “vital juncture” for purpose-led businesses.
The proposed change to standards cracks down on the “flexibility” companies currently have in becoming B Corp certified, emphasising must-have criteria for a range of impact topics.
A B Corp is a company which voluntarily signs up to the highest standards for social and environmental governance.
Currently, businesses that wish to become B Corp certified must undergo a rigorous impact assessment process to prove their dedication to governance, community, environment, and people – achieving a score of at least 80.
However, any potential changes to standards do not “automatically” remove existing B Corp companies, a B Lab spokesperson told City PM, as re-evaluations on compliance would happen through phases.
The revisions are meant to ensure the commitments of businesses continue and remain up-to-date.
Clay Brown, head of Standards, Certification, and Product Delivery at B Lab Global, said: “Right now, we have reached a vital juncture.
“Evolving the standards is not just about redefining business norms; it’s about scripting a new narrative for the future of our planet and society.”
It comes after the first consultation was launched in 2022 – with over 1,000 responses – to dive into the details of compliance criteria, implementation guidance and a new section for eligibility assessments.
The standards are labelled “ambitious yet attainable” as a new goal for businesses.
“The biggest change to the new standards for most B Corps is a move from the current framework where companies have flexibility in how to achieve a verified 80-point score, to instead ensuring they meet specific requirements across different impact topics,” a spokesperson added.
Impact topics range from purpose and stakeholder governance to workplace culture and fair wages, among many more “complementary” subjects.
The standards have been revised a total of six times in the past 17 years, in line with changing economic circumstances. Members of the public have until 26 March to submit their feedback.