Under fire B Corp responds with new standards

Businesses seeking B Corp Certification will need to meet a series of standards spanning climate action and human rights under a major revamp of the scheme.

B Lab, the owner of B Corp, announced that it is moving away from a cumulative points scoring approach to one where companies will need to meet standards in each of seven topic areas – purpose and stakeholder governance; climate action; human rights; fair work; environmental stewardship and circularity; justice, equity, diversity and inclusion; and government affairs and collective action.

It said the move would require businesses to manage their impact holistically while increasing transparency and clarity for the public.

Almost 10,000 businesses are now B Corp certified, ranging from small start-ups to industry giants like Danone UK & Ireland and Innocent Drinks. However the scheme has faced growing criticism for a lack of rigour in standard setting that has diluted what it means to be a purposeful company.

Aneisha Soobroyen, co-founder of petfood brand Scrumbles, announced on LinkedIn in February that the business would not be renewing its B Corp Certification, suggesting it no longer holds the weight it once did. “B Corp was meant to stand for businesses that put purpose over profit. But as we’ve watched its membership grow, we’ve seen companies with questionable ethics gain certification, diluting what the certification represents,” Soobroyen wrote.

James Cadbury, founder and CEO of Love Cocoa and HIP Chocolate, responded by saying his company was likely to do the same.

B Lab said the new standards have been developed after engaging with diverse stakeholders through a multi-year consultation process. They incorporate data and methodologies from other certification schemes, sustainability-related frameworks and disclosure reporting, including GRI, SBTi, and Fairtrade.

To meet the standard on climate action, businesses will need to have developed an action plan to support limiting global warming to 1.5°C, and, for larger companies, to include GHG emissions and validated science-based targets.

“B Lab’s new standards serve as a roadmap for companies that want to lead. This isn’t merely an update; it sets a new bar for positive impact,” said Chris Turner, CEO of B Lab UK.