What is B Corp Certification?
B Lab is a non-profit organisation behind the B Corp movement, who create certification standards that companies must meet to become a B Corp.
B Corps are a global community of businesses across the world, where companies are led by their purpose and work together as a force for good. This is done by measuring, monitoring and improving their social and environmental impact.
B Corp certification is achieved by completing an online tool called the B Impact Assessment. This contains approximately 200 questions which are tailored to the size, sector and location of the company. The B Impact Assessment tool is available to companies that are for profit and have been operating for one year.
As well as a company’s mission and governance, the assessment also measures impact that organisations have on key stakeholders. This includes the environment, workers, customers and community in which the organisation operates.
To become a B Corp, you must achieve 80 points out of a potential 200. The framework is due to be updated in January 2024, and the new proposed requirements are expected to be more stringent.
How can becoming a B Corp benefit my organisation?
Becoming a B Corp and completing the B Impact Assessment offers several competitive advantages:
Organisation position and security:
To start, the in-depth assessment allows you to analyse your current position and benchmarking against your peers. This provides essential understanding as a baseline, including where you’re currently making progress and where you can improve. Between 2017 and 2020, B Corps saw an average growth 5 times higher than that of an average UK business!
After gaining understanding, you can begin to identify both quick wins and longer-term improvements aligned with your strategy and growth. Compared to the 5% growth of an average UK company, B Corps saw an average growth of 26% between 2017 and 2020. Leading on from this, the annual Impact Reporting required of B Corps allows you to monitor progress on your initiatives, measuring their effectiveness and demonstrating your organisation’s sustainable commitments for people and the planet. 52% of all SMEs state that they formally tack business performance, however this increases to 84% for certified B Corps.
The assessment and score highlight your organisation’s compliance with relevant social and environmental regulations. This can often attract talent and demonstrates the transparency and positive action that customers and investors are demanding, plus promote employee engagement. B Corps reported an average staff attrition median rate of 8% in the past year, compared to a range of 16-20% for the wider UK business population. B Corps also have a higher percentage of leadership teams with at least one woman, plus 4% average gender pay gap compared to 15% for the average UK business.
Access to a community of like-minded organisations:
By joining the B Corp movement, you unlock various community benefits such as collaboration opportunities, networking, events and alignment with B Lab and the B Corp community on global ussies. Furthermore, the certification allows you to clearly demonstrate, explain and engage clearly the mission that you have under a recognisable name. UK B Corps are one of the fastest growing communities of B Corps worldwide – are you ready to join them?