What is a B Corp?
Released On 26th Mar 2024
The overarching goal of B Corp certification is equitable, inclusive and regenerative business. This changes focus from being solely profit and to also include people, the planet and communities; B Corp redefines the role of business such that business is used as a force for good.
There are currently over 8,100 B Corps across 95 countries and 161 global industries, 1,800 of which being in the UK.
How to become a B Corp?
1. An impact assessment is carried out across key areas of business: governance, workers, environment, customers and community. A score of 80+ is required to certify.
2. There is a legal requirement to change the articles of association to demonstrate the commitment to having a positive impact on society and the environment.
3. There is a review carried out by B Lab who will evaluate and provide verification.
4. Once verified, an annual impact assessment will need to be carried out along with a 3 yearly verification process.
Why become a B Corp?
There are vast benefits to becoming B Corp certified. An overview of some of the key points is below:
- Regulation – the rate of change of regulations surrounding sustainability in recent years is vast. The standards that need to be met to become B Corp certified put B Corps in a strong position to start to meet the targets set out in sustainability legislations.
- Suppliers – while current regulations only require large businesses to report on their carbon footprint in their financial statements, SME’s will be affected indirectly. This will result in large businesses working to reduce their carbon outputs, having a preference to work with suppliers who are already managing their own carbon impact regardless of their size meaning that small businesses may also get requests from larger businesses to demonstrate their sustainability plans..
- Lenders – the focus of lenders is increasingly moving towards green finance initiatives which reward those who are already able to demonstrate that they are hitting sustainability targets as well as the lenders themselves considering whether their clients and their projects are sustainable enough for them to support.
- Business value – when stripped back sustainability is about effective use of resources. Focusing on this will reduce business costs and therefore increase profitability. If a business is sustainable it is also more future ready which will also increase its value in to the future.
- Employees – increasing focus on the well-being, diversity and inclusion and the fair recognition and reward of our people could open your business up to a wider pool of potential recruits which may not have considered you as being aligned to their own values in the past as well as helping the longevity of your relationship with that employee. This can also pay dividends to the business through increased productivity and engagement from your people.
- Customers – consumers are becoming more conscious about their purchase choices resulting in businesses who have considered the sustainability of their services or products or those who are driving wider purpose and social value seeing increased levels of growth and loyalty.
If you believe in purpose as well as profits and wish to provide value through your products and services then starting the B Corp journey could be the right sustainability step for you, with its ultimate achievement enabling you to attract new segments of business and people, setting your business apart.
