B Corp certification: what is it and why it matters

When we hear that a company is a B Corp, we often associate it with being “good”. However, we are often unaware of what it specifically entails. The B Corporation certification is a way to measure the social and environmental impact that a company has on the world. The network that certifies B Corps, known as B Lab, continuously works to improve the certification standards to ensure they align with current preoccupations. Its approach to the certification is holistic, meaning it doesn’t only focus on one social or environmental issue but rather address a plurality of current concerns.

The certification process is an extensive procedure that varies depending on, among other things, the revenue and size of the company. It can take 6 to 8 months for smaller and medium sized businesses to receive their certification and even longer for larger multinationals. Companies that are already certified must complete the verification process every three years to maintain their certification.

Foundation Requirements vs Performance Requirements

To acquire the B Corp certification, companies must meet a wide range of requirements. These conditions are divided into two categories: Foundation Requirements and Performance Requirements. The first category covers criterias that businesses must respect to be eligible for the certification. They are based on the core, or foundation, of a company. The second category regroup requirements that are based on a company’s performance and is divided into nine subcategories to create a complete assessment of a business. Here is a breakdown of each with concrete examples of actions companies can take to achieve a high score and obtain their certification:

Purpose & Stakeholder Governance

The company must operate with a clear purpose, promoting an inclusive, equitable and sustainable economic system that benefits all people and the planet. To achieve this goal, the B Corp must considers and involves its stakeholders in decision-making by conducting regular engagement meetings to set goals on social and/or environmental issues. Progress toward these goals must be monitored and reported publicly on an annual basis, and worker’s perceptions of the company’s strategy must be measured at least once every two years.

Workplace Culture

The workplace culture of a B Corp must enhance the workers’ sense of satisfaction, belonging, shared purpose, psychological safety, engagement and happiness. To achieve these feelings, the company must establish a shared purpose and seek ongoing dialogue with its workers. To gain feedback, the B Corp must set in place at least one vertical and one horizontal communication channel and provide all workers, or their elected representatives, with a channel for direct communication with the highest leadership individuals in the organization. The workplace culture must also be measured qualitatively and quantitatively by workers annually in an anonymous manner and a plan must be developed in response to that feedback.

Fair Wages

B Corporations must provide a minimum wage that is 20% higher than the minimum wage set by the government to ensure a decent standard of living for every worker. To provide transparency to employees, the leadership must inform them of how they determined their wage, which benefits employees are entitled to and disclose the salary range and any gender wage gaps. If there is a wage gap between genders, the company must work to reduce that gap.

Justice, Equity, Diversity & Inclusion

To ensure that their businesses are inclusive, the leadership of B Corps must implement at least one hour-long discussion or survey per year to receive feedback from workers on their actions to promote justice, equity, diversity and inclusion. Actions such as increasing the proportion of people from underrepresented groups in the leadership and executive teams, respecting inclusive hiring practices and providing additional types of paid leave beyond the legal minimum must be taken to reflect and respect the team’s diversity.

Human Rights

In addition to respecting human rights for their employees, B Corps must be aware of the origin of their raw materials and consider the potential negative impacts on human rights caused by the use of high-risk raw materials.

Climate Action

To receive a B Corporation certification, businesses must take actions backed by science to combat climate change. For example, companies must measure their greenhouse gas emissions and their results must be verified by an independent third party. Based on these results, they then need to set an action plan to contribute to reaching the global net-zero GHG emissions target by 2050 and publicly disclose their progress regarding that plan each year.

Environmental Stewardship & Circularity

B Corporations demonstrate their commitment to managing their environmental impact by monitoring the consequences of their operations and by implementing sustainable initiatives. They track waste production and disposal, energy and water consumption and assess their proximity to any biodiversity-sensitive areas. Their environmental records are verified by a third party and a plan of action is developed to continuously improve circularity in product development, reduce the usage of virgin non-renewable materials and implement any other environmental actions that might improve the company’s environmental impact.

Government Affairs & Collective Action

B Corporations are required to engage in at least one collective social or environmental action at a policy, industry and/or business community level and to invest in collaborative research beyond their operations to develop sector-specific social or environmental solutions.

Complementary Impact Topics

Companies that embark in the B Corporation certification process are strongly encouraged to measure and improve a broader set of impacts from their business in addition to the topics outlined by B Corp standards.

Companies such as Frank and Oak, Ganni, Kotn, Tekla, Sézane and Goodee are part of the 9 257 businesses* who are certified as a B Corporation. These businesses share the values of the B Lab regroupement and constantly strive on improving their way of doing business. Visit their website or the B Corp directory to discover more on the actions they take to improve the wellbeing of individuals and of our planet.

Disclaimer

The information in this text is based on research done via the B Corp website. To learn more and get the latest updates, visit bcorporation.net

*9 257 businesses were certified B Corps in date of January 14th 2025. This number may vary with time.