In 2024, the B Corp certification will go through its biggest change to date - as it scraps the 80-point threshold in favour of mandating 10 specific areas of change within your business.

At the time of writing, there are 5,639 B Corps globally, and it’s thought there are possibly even more than this waiting in the evaluation and verification queues. That’s a fair few companies making an impact!If companies were flocking to the certification in their thousands, why would B Labs decide to change its certification? After all - isn’t it a good thing if companies are becoming more impactful?

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‍First, let’s understand what is changing.

‍Achieving a score of 80+ is no longer in place. Instead, B Lab will require businesses to meet a set of requirements in the following topic areas of sustainability.

1. Purpose & Stakeholder Governance: Making a material positive impact in the world, with your internal leadership monitoring the implementation of its purpose, and reporting transparently on its impact.

2. Worker Engagement: Bringing employees and other stakeholders with you on your sustainability journey, keeping them informed of all policies and processes, as well as learning from them through measuring satisfaction.

3. Fair Wages: Paying employees their respective living wage (extending through to supply chains), being transparent on how wages work within your organisation, and stating various metrics to all workers such as pay scales; pay ratios and sharing any pay gaps that exist.

4. Justice Equity Diversity & Inclusion: Understanding the diversity in your workforce, measuring and gathering this data concerning your workers, as well as understanding the risks and opportunities for the individuals

5. Human Rights: Treating all individuals with dignity and respecting their human rights, and ensuring that all risks are assessed and mitigated when it comes to all aspects of human rights.

6. Climate Action: Tracking your emissions Greenhouse Gas Emissions on Scopes 1, 2 and 3, setting targets and working towards Net Zero emissions in line with the Science-Based Target initiative.

7. Circularity and Environmental Stewardship: Monitoring the impact you have on the environment across operations and your supply chain, strategising and mitigating any risk that is had against the environment and ensuring your suppliers align with this strategy.

8. Collective Action: A favourite of mine - go beyond just your company, work with stakeholders outside of your organisation, sit on industry boards, promote public policy and join initiatives to help speed up this sustainable transition (not just for your company by for society)

9. Risk Standards: Tackling and avoiding potential negative impacts across your industry or organisation in a suitable manner. This extends to communication - ensuring all public comms are honest and accurate (ie. no greenwashing); as well as lobbying - ensuring that whatever you lobby for is aligned with your organisation's purpose and values.

10. Impact Management: Continually assessing all impacts across your business, and then setting targets/annual goals and improving on them over time. You will also need to report back to these goals, so if they aren’t met, you need to explain why you haven’t got to the level you had set out to.

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‍Why is this changing?

‍Simply put, we as companies need to do more, and the certification is pushing us to do so. Remember the B Corp certification is to show business as a ‘Force for Good’ - and we really need some Good right now.From a climate standpoint alone, it is evident not enough is being done, with the recent UN Emissions Gap Report 2022 showcasing we’re falling short of the Paris agreement of 1.5 degrees and stating an “urgent system-wide transformation” is required. That is why seeing Climate Action being a mandated pillar in the new B Corp assessment is such a positive step.The change also appears to be implemented as a way of encouraging continued progression - more so than has existed before. Across these pillars, there is an increased focus on not just setting targets annually, but also strategising and meeting them. It’s not the end of the world if you don’t meet specific ESG targets you set, but you need to be honest with yourself and transparent as a business as to why specific targets weren’t hit. This progress will further hold you accountable, and seek to create a virtuous cycle of positive change, consistently working to get better, evaluating your position, setting bolder targets, and so the cycle continues.Proving what you do has never been more important, and the B Corp certification wants to push this home even further. Companies will be required to implement systems in place to help monitor its impact, in other words, “sustainability software” (did I mention our platform counts as this…), to further increase transparency and reduce scenarios of misinformation.

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‍When is this due to kick in?

‍The finer details are still being worked out, but the below showcases the key dates to be aware of:

‍Mid-November 2022 - feedback closes on the certification draftDecember 2022 - B Labs will work on this feedbackApril 2023 - Begin testing the next iteration of the certification

‍June 2023 - Next round of drafting based on April feedback

‍September/October 2023- Second Public Consultation Period

‍December 2023 - Standards Advisory Council and B Lab Board will review

‍Early 2024 - The updated certification goes live

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‍Do B Corps need to re-certify?

‍All current B Corps will need to re-certify under the new certification when it is officially released, this will be done over a phased approach which means there will be time to make any necessary changes to your business to ensure you are meeting the new criteria.

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‍Does this mean I’ve wasted time and effort changing things that now don’t count?

‍Nope. All changes you have made to meet the existing criteria are brilliant changes - and one arguably that have bettered your business in one way or another. Realistically, whatever efforts you have gone to for the old certification will still be counted in the new assessment, however, there may have been areas that you weren’t as thorough with previously, that now need your attention.

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‍A parting thought, carrot or stick

‍Change makes us uncomfortable, it’s no secret. Even the most progressive can find change uncertain in the moment, but it is necessary. In the case of B Labs changing the B Corp assessment, and yes making it harder, it can appear at first uncomfortable. Some may even say that it’s asking companies to do too much, but I would disagree.Companies are amazing platforms to make great change, highlighted by the inclusion of the Collective Action pillar. This can be underestimated and the new certification shines focus on this and pushes us to do more - a nice carrot in this space of ESG. The cold hard stick of regulation will follow, but it won’t move as fast as is required.So the choice is yours, carrot or stick? Spoiler, the carrot tastes better than the stick.