The New B Corp Draft Standards (Update)

By Harshini Gadudasu
April 2, 2024
3 min read
 

Achieving B Corp certification is a principle strategy to open up new business opportunities while also committing to positive social and environmental change. Since its founding in 2006, B Corp has certified over eight thousand companies that have adopted new strategies and policies for both societal benefit and profitability. Recently, B Corp has released its second public consultation on the new draft standards, encouraging companies to interact with stakeholder feedback, as well as guidance on how to implement change on each category.

The Timeline

In order to enhance the true meaning of being a B Corp certified corporation, B Lab decided to review the past set of standards to see what they could change. The top priority was to establish B Corp standards that promote meaningful growth aligned with future challenges. B Lab announced their new draft standards December of 2020 along with a public survey for feedback. B Lab asked stakeholders if they supported the standards, as well as the topics that they believed took priority for impact. For the following two years, focus groups were conducted with the community to receive as much input as possible in order to create a set of standards. 

Driving Change

B Corp has decided to move away from the 80-point threshold for recertification, and towards a new set of performance standards. Previously, companies had the ability to recertify with the same, or lower score, as long as it was above 80. Now, the new standards enforce that there must be evidence of continuous compliance; they must present progress on specific plans, and goals for the future as action on the 10 specific topics. These topics include:

  • Purpose and Stakeholder Governance
  • Worker Engagement
  • Fair Wages
  • Justice, Equity, Diversity, and Inclusion (JEDI)
  • Human Rights
  • Climate Action
  • Circularity and Environmental Stewardship
  • Collective Action
  • Impact Management
  • Risk Standards

The draft standards represent specific outcomes that B Corps are meant to uphold, such as pursuing positive impact through environmental stewardship and contributing to the circular economy. These outcomes serve as a guide for what B Corp companies should strive towards in order to demonstrate continuous improvement. 

Community Engagement

In May of 2023, B Lab unveiled the Preliminary Consultation Summary Report to highlight the main insights from the primary consultation. A large majority of consultants gave feedback to reveal that the new draft standards are high, attainable, and clear. A major piece of feedback was that B Corp standards should be more holistic and consider the size, scale, and capacity of a company. Therefore, B Corp has committed to specific and general tailoring that will adjust and accommodate for the size of the company.

The second consultation commenced on January 16, 2024 and will run until March 26, 2024. This offers stakeholders opportunities to engage with the new standards and contribute their perspectives. It promotes the value that feedback is vital in shaping the future direction of B Corp certification. 

How Ecolytics fits in

In this day and age, responsible business practices are vital. The B Corp movement inspires companies to prioritize purpose as well as profit. The developing certification standards show a commitment to continuous improvement in collaboration with stakeholders.

Ecolytics is the single management tool for the B Corp process. Our platform stays up to date with new standards and changes to the certification process, allowing your business to track your metrics and stay ahead. From simplifying the data collection process with user-friendly surveys and guidance to providing actionable insights on setting sustainability goals. Ecolytics is your tool to maintain a transparent record of your progress as it adheres B Corp criteria. Learn more by requesting a demo today.

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