As a newly certified B Corp (as of September 2024), we’re excited to share insights into this growing movement and help those wondering if they should pursue B Corp certification.

You may have noticed the B Corp logo on products and shop fronts, but what does it mean? B Corp certification recognises companies that meet high standards of social and environmental performance, transparency, and accountability. 

What is a B Corp? 

B Corps are businesses that balance purpose and profit, legally committing to consider the impact of their decisions on workers, customers, suppliers, community, and the environment. It’s a holistic certification that recognises everything a business does, not just focusing on one element, such as environmental impact.  

However, it’s important to note that getting the certification doesn’t mean you’ve passed and that’s that, as a B Corp we commit to continually improving across all areas and you are required to recertify every three years. 

The B Corp certification process 

Becoming a B Corp involves a rigorous assessment and verification process (and requires a lot of data about your business). Here’s an overview of what companies can expect during the application process: 

1. B Impact Assessment: Companies start by completing the B Impact Assessment (BIA), a free online tool that evaluates a company’s impact on workers, community, environment, and customers. 
2. Meet performance requirements: When we applied, you had to score at least 80 out of 200 points on the BIA. The average score for ordinary businesses is around 50. However, these standards are changing. The new standards structure shifts away from the flexible scoring system and requires companies to meet explicit criteria tailored to their size, sector, and location across all Impact Topics. 
3. Legal requirement: Companies must amend their governing documents to state that their board of directors will balance profit and purpose and consider its company’s impact on its stakeholders, now and in the future. 
4. Transparency: Once certified, you are expected to release an Impact Report within 12 months of and every year going forward. The Impact Report enables you to be open and honest about your current impact, what you are doing well, what you need to improve and how you’ll improve over the next 12 months. 
5. Recertification: B Corps must recertify every three years to maintain their status, encouraging continuous improvement. 

The process typically takes six-ten months, depending on a company’s size and complexity. While rigorous, we found the journey itself valuable, as it provides a framework for assessing and improving your social and environmental impact.  

The BIA is a free tool that enables you to see how your business is performing now across the core impact areas and identify any weaknesses. Regardless of whether businesses pursue B Corp Certification, having the data on your performance we found invaluable. 

Why it matters 

We play a crucial role in helping businesses measure and report on their financial performance. The B Corp framework extends this concept to social and environmental impact, aligning with growing stakeholder demands for responsible business practices. 

To us, the benefits we hope to achieve include: 

1. Enhanced credibility: B Corp status serves as a guarantee to stakeholders that a company is genuinely committed to doing good, not just claiming it. 
2. Talent attraction and retention: B Corps often see increased employee engagement and are better positioned to attract top talent who value purpose-driven work. 
3. Innovation and market leadership: B Corps often demonstrate higher levels of innovation and market leadership.  
4. Community and collaboration: Certification provides access to a global community of like-minded businesses, fostering collaboration and shared learning. Through accessing B Hive (which is essentially a LinkedIn for B Corps), we’ve already been able to connect with other B Corps to learn and grow with them. 

Interesting in becoming a B Corp?  

As we embark on our own B Corp journey, we’re excited to share our experiences and help our clients explore how they too can use business as a force for good.  

If you require any further information or advice on B Corp or ESG generally, please contact lkelly@geraldedelman.com