Becoming a B Corp via B Corporation Certification can feel complicated. But becoming B Corp and meeting the B Corp requirements is intentionally challenging, to ensure that only businesses that demonstrate high social and environmental performance, make a legal commitment and exhibit transparency are able to certify.

Curious about the requirements needed to meet for B Corp certification? Keep reading!

What requirements does a company need to meet for certification?

There are 5 key requirements a company needs to meet for certification:

1. Meet eligibility requirements

2. Complete the B Impact Assessment and achieve 80+ points

3. Meet the legal requirements and amend the Articles of Association

4. Agree to meet the transparency requirements

5. Complete the disclosure questionnaire to identify fines, sanctions or any associations with sensitive industries

Let’s go into more depth into the 5 key requirements.

Meet eligibility requirements

The majority of for-profit businesses can pursue B Corp Certification. The main requirement is that the business has been operating for at least a year.

There are additional eligibility requirements for start-ups, those with related entities or large multinational companies.

Start-ups

Businesses that have been trading for less than 12 months can become a Pending B Corp. This is a way to begin engaging in the B Corp community and begin building a better business framework, reading for future certification.

Large businesses

Large and/or complex businesses are advised to get in touch with B Labs UK to confirm the correct certification route. Generally, a large and/or complex business tends to have a revenue of over £100 million, operates in 2 or more industries, operates in 5 or more countries and has 5 or more subsidiaries.

Sole traders

Sole traders can certify as a B Corp but are not eligible for Pending B Corp.

Charities and non-profits

Charities and non-profit organisations are not eligible for B Corp certification.

Complete the B Impact Assessment

Any business that wants to be certified as a B Corp must complete the B Impact Assessment. The B Impact Assessment is a free and confidential online tool.

Certified B Corporations achieve a score of at least 80 points on this assessment. The B Impact Assessment is reviewed by assessors against performance-based standards. The score is verified through a review process which may involve documentation, calls and even onsite visits.

Meet the legal requirements

To certify as a B Corp, you must make a commitment to consider your company’s impact on its stakeholders by building it into your legal structure.

This legal requirement is put in place to ensure directors consider the interests of all stakeholders when making decisions, and to protect the company’s mission and values.

It is a fundamental and required element of certification. To meet the legal requirement, you must update your Articles of Association to include mission-aligned legal language.

For companies with 0-49 full-time employees, the legal change must be completed prior to certification.

For companies with 50+ full-time employees, additional time to complete the change may be granted. This depends on the legal structure, for example, limited companies have up to a year after certification to complete the change and Limited Liability Partnerships (LLPs) have 90 days.

To meet the legal requirements, you must use the exact wording B Corp sets out, verbatim. You can see the wording here.

Meet the transparency requirements

All B Corps are required to make the score from their B Impact Assessment public through the B Corp Directory on the Global B Lab website.

Plus, companies with a larger than $100 million market capitalisation must make non-sensitive B Impact Assessment answers public on their B Corp profile page.

Complete the disclosure questionnaire

The B Corp disclosure questionnaire is an unweighted group of Yes-No questions that allows a company to disclose any sensitive industries, practices, fines or sanctions related to it or its partnerships, confidentially.

This is used alongside background checks to identify any material negative impacts.

How long does it take to become a B Corp?

The time it takes to become a B Corp varies depending on a variety of factors. Of course, the larger a company is, the longer it is likely to take to achieve B Corp certification.

The timeline depends on resources dedicated to the project, operational complexity, target deadlines and marketing considerations.

But from start to completion, it can take between 6 to 24 months. Generally, a small to medium-sized business will take approximately 6 to 12 months from start to certification.

It is important to be aware that once you submit your application for assessment, there may be a delay depending on the level of demand.

How long does certification last?

B Corp Certified businesses are required to recertify every three years. A completed B Impact Assessment is required within three months of the recertification date.

Key takeaways: B Corp requirements

In conclusion, becoming a B Corp is a challenging but rewarding process with a variety of steps and requirements required to certify. The 5 key requirements to becoming a B Corp are meeting eligibility requirements, scoring 80+ points on the B Impact Assessment, meeting the legal requirements, agreeing to meet transparency requirements and completing the disclosure questionnaire.

Looking for bespoke support to become a B Corp? Head to our support page and find out more about working with UK for Good.