In recent years, we have seen significant growth in the number of B Corp Certified companies. Stakeholders’ demands for sustainable development are increasing, and companies cannot help but take notice and take action. The visibility of major B Corp certified brands, such as Patagonia, also attracts the attention of companies who wish to have their sustainability initiative recognised. If you wish to learn more about the B Corp requirements, here is an explanation…
What is a B Corp?
If you would like more information about B Corp certification, we invite you to read one of our articles that discusses the topic in more detail. Just to recap, B Corp certification is issued by B Lab, a nonprofit organisation made up of companies worldwide whose aim is to be a force for good. B Corp certification recognises a company’s sustainable strategy, not the sustainability of a particular product or service.
B Corp is also a movement. The B Corp community is committed and believes in responsible business. It understands the climate emergency and wants to make a positive impact.
To achieve this shared goal, B Corp companies do not hesitate to create partnerships among the community and to innovate by pushing boundaries.
What are the B Corp requirements ?
Profit vs Non-Profit
Business as a force for good, as the B Corp slogan reminds us, meaning certification targets profit-making companies with the aim of making money, responsibly. Although it accepts alternative business models, certification does not apply to public or nonprofit organisations. However, these types of organisations can still use the B Impact Assessment (BIA) to assess their impact and build a roadmap for improvement.
As for alternative business models, those generally eligible are partnerships, mutual companies and cooperatives.
Companies must also have been in operation for a full fiscal year. If not, there is a “Pending B Corp” status that allows startups to demonstrate their commitment to measuring and improving their impact.
Size, location, industry,…
Companies of all sizes are eligible, ranging from companies with no employees to very large companies employing thousands. The geographical location of companies is also taken into account. Whether they have single head office or are active in several markets, B Corp certification is still possible.
Companies with complex structures (parent, subsidiary companies, etc.), in one or more industries are also eligible, although they must undergo a preliminary analysis by B Lab to determine the certification process that will best reflect the company’s context.
It is also important to note that not all profit-making enterprises are automatically eligible. Companies active in controversial industries or high-impact companies must first undergo eligibility analysis by B Lab. The industries in question are listed on the B Corp website.
True commitment
Certification is more than a recognition of a company’s sustainable approach. It also requires companies to add specific language to their governing documents, or change their legal status, to demonstrate their commitment to integrating impact reduction and improvement targets.
Getting started with B Corp certification
You may be wondering how the B Corp certification process works. Depending on how far you have progressed in your sustainable approach, the process can take differing amounts of time. The aim is to reach a minimum score of 80 points. Of course the more points you have, the better.
The time it takes to attain 80 points, or to improve as much as possible, can therefore vary from one company to another. However, there are three mandatory phases to completing the process.
The BIA
Firstly, the BIA (B Impact Assessment) must be completed. The BIA is an assessment tool created by B Lab. It is very instinctive and provides several features in addition to the questionnaire. You can compare your company with “ordinary” industry and with “sustainable” industry. Also available on the platform is the “SDG Action Manager” which you can use to analyse your practices based on the UN’s Sustainable Development Goals.
After filling in the questionnaire, you can see just how far you have come in your sustainable journey. Either you have not yet attained 80 points and you must set up a roadmap to improve your CSR approach, or you have already reached the 80-point mark but decide to implement new actions because the BIA has helped you identify potential areas for improvement.
The legal requirements
Secondly, you must ensure that you meet the legal requirements requested by B Lab. Each company wishing to be certified must change or add specific language to its governing documents in order to demonstrate its commitment to creating a positive impact. This approach allows the company to confirm its commitment to all its stakeholders. Don’t panic! Changes to be integrated are already prepared by B Lab, adapted to each national context, and are available on their website.
The verification
Verification and transparency is the final phase of the process. Once you have passed the first two phases, you must wait for B Lab to assign you an analyst. This person will take the time to do an initial screening of your BIA and look closely at your structure. The analyst may ask you for additional information or redirect you if the information provided is incorrect.
There is then a further waiting period during which B Lab assigns you to a new analyst. The assessment can then begin. You will have one or more online meetings with the analyst, who may ask you again for clarification on some of your answers. This person will also need to ensure they have gained a thorough understanding of the day-to-day running of your business and your mission.
If you achieve B Corp Certified status, a profile will be created for your company on the B Corp site in your region. Transparency is an important element for B Lab so your score and the scores for each area of impact will be available online. Sharing your sustainable practices and engaging all your stakeholders in your sustainable approach is essential in the transition from an “ordinary” company to a responsible one.
If you are interested and want to know more about the support we offer for B Corp certification, take a look at our service offer… especially our success stories!
Conclusion
We hope to have answered your questions about the B Corp certification process and its prerequisites. If you think you are eligible for certification and would like to start the process, please get in touch. We will start by discussing your project, your business context and your additional objectives.