The B Corp movement is on the rise, with 8,000 businesses globally and 1,900+ in the UK. In addition, a reported 240,000+ businesses are using the B Corp framework to create measurable ESG strategies and manage their impact.
This guide aims to answer your questions on what a B Corp is, how you become one, and what companies are already B Corps.
Ready to B Corp? Let’s get started.
What is a B Corp?
A B Corp, short for Benefit Corporation, is a for-profit company that commits itself to meeting rigorous social and environmental standards. These standards are verified by B Lab, a nonprofit organisation that certifies B Corps based on their performance across various categories, such as governance, worker practices, community engagement, and environmental impact.
B Corps pledge to balance profit-making activities with positive contributions to society and the planet, aligning their values with a triple bottom-line approach: people, planet, and profit.
How do you get B Corp certification?
The certification process assesses your company across 5 key areas of impact: governance, workers, community, environment, and customers.
Here’s what you can expect:
Meet the Standards
Performance requirement: Complete the B Impact Assessment (BIA) and reach at least 80 points. At UK for Good we recommend aiming for 85 points for optimal outcomes.
Legal requirement: Amend your company’s Articles of Association to commit to considering stakeholders in all decisions and actions made on your company’s behalf.
Verification
Submit & queue: Once you’ve attained 80+ points, submit your assessment to B Lab. While there’s no time limit for submission, there is a queue time for verification which is usually around 4-6 months.
Official verification: A Standards Analyst at B Lab will review verbal and uploaded evidence to confirm your verified score.
Certification
Become a B Corp: Upon verification at 80+ points, finalise your public B Corp profile, pay your first annual certification fee, and celebrate your achievement.
Impact Reporting & Recertification: Produce an annual impact report, and every 3 years, undergo recertification to maintain your B Corp status.
Remember, becoming a B Corp marks the beginning of your journey. Embedding B Corp principles into your daily operations is crucial for sustained impact and success.
What is the B impact assessment?
The B Impact Assessment (BIA) is a free online management tool to measure and improve your company’s social and environmental impact.
The questions examine your company’s impact on its key stakeholders and provide a great framework for improvement.
The BIA offers a holistic measurement of your company’s performance across 5 areas of impact: governance, workers, community, environment and customers.
How many points do I need?
You need 80 or more points to certify. You may not achieve 80 points on your first attempt at the BIA – the average business scores 50 points. The tool offers feedback to improve your score. Some businesses also ask for support from a B Leader – these are impact consultants who have been trained by B Lab.
What are the requirements to become a B Corp?
You can begin your application to become a certified B Corp if you operate for profit in a competitive market and have been operating for at least 12 months.
If you have been in business for less than 12 months, you can apply to become a ‘Pending B Corp’.
If you are a start-up, a large MNC or public company, or have related entities then there are additional requirements.
>> Read more | B Corp requirements: what is required to become certified
How much does it cost?
A one-off submission fee of £250+VAT is payable when you submit your company for certification.
Ongoing certification fees are paid annually and are calculated using your company’s total revenue. This number is based on the last set of audited accounts. If your business has <£5m turnover and is majority owned by women or those from underrepresented or marginalised communities, you can apply for a 40% Equity Discount – but this must be applied for ahead of completing verification.
The benefits of B Corp
There are many benefits to becoming a B Corp. Business leaders know becoming a B Corp is the right thing to do for people and the planet. But, there are also clear commercial benefits to becoming a B Corp.
Research carried out by B Lab of 102 B Corp SMEs found that B Corps outperform non-B Corp SMEs:
Investment: 44% of B Corps reported that certification attracted investors
Recruitment: 70% of candidates recruited by B Corps mention it in interviews
Equity: 70% of B Corps seeking equity finance secured all (or more than) required vs 56% of wider SMEs
Customers: 76% of people believe that business has a responsibility to people and the planet
Performance: 88% of research shows reliable ESG practices result in better resilience and operational performance
Growth: There was a 15% growth rate for B Corps vs the national average of 1% between 2018 and 2021
Who is already a B Corp?
Lots of household names are B Corps – including innocent drinks, Nespresso, Ben and Jerry’s, Patagonia, Aesop, Lucky Saint, Tony’s Chocolonely and Gousto. The list goes on! Check out the B Corp directory for more.
Ready to join them? Find out more about becoming a B Corp and working with us here.