Overview
Introduced: 2007
Effective from: Ongoing, with updates to certification standards every 3-5 years
Last modified: July 2024 (new standards finalized for phased introduction starting in 2025)
Region(s): Global
About
B Corp Certification is a designation awarded to businesses that meet high standards of verified social and environmental performance, accountability, and transparency. Companies pursuing B Corp status must undergo a rigorous assessment that measures their impact on workers, customers, communities, and the environment. B Corps commit to balancing profit and purpose, working toward creating an inclusive, equitable, and regenerative economy.
Certification requires companies to integrate stakeholder governance, ensuring decisions benefit all stakeholders, not just shareholders.
Criteria for compliance
Entities covered
B Corp Certification is available to companies of any size, sector, or location. The certification process differs depending on company size, revenue, and structure, ranging from startups to multinational corporations.
Certification requirements
- B Impact Assessment (BIA): Companies must score at least 80 points on the BIA, which evaluates performance across five key areas: governance, workers, community, environment, and customers.
- Legal commitment: Companies must amend their governing documents to be accountable to all stakeholders, aligning with benefit corporation status in jurisdictions where this is available.
- Transparency: Certified companies must publish their BIA results and impact reports on B Lab’s public directory.
Compliance timelines
Initial certification process
The certification process varies based on company size and complexity but generally involves multiple stages, including the B Impact Assessment, risk review, verification, and post-verification agreement signing.
Recertification
B Corps must recertify every three years, during which they must update their BIA and undergo a verification process to ensure they continue to meet certification standards. As of July 1, 2024, all companies must submit their updated BIA six months prior to their recertification date to ensure timely completion.
Disclosure requirements
B Impact Assessment
- Companies must complete a free and confidential B Impact Assessment that evaluates their performance on key social and environmental indicators.
- Risk Standards: B Lab’s Standards Advisory Council continually evolves risk standards to evaluate negative impacts associated with certain industries and practices, such as firearms, gambling, or fossil fuel-related businesses.
Public transparency
Certified B Corps must publicly disclose their performance on B Lab’s website, including their overall score and impact in each assessed area.
Third-party auditing
Verification
After completing the B Impact Assessment, companies must undergo a thorough verification process. This includes providing supporting documentation, undergoing a review with B Lab analysts, and potentially undergoing site visits to verify compliance. Larger companies and those operating in higher-risk industries face more rigorous verification.
Recertification audits
Companies must recertify every three years, ensuring ongoing compliance with B Corp standards. Any significant changes in company structure, such as an IPO, trigger a recertification process.
Penalties for non-compliance
Loss of certification
If a company fails to maintain compliance with B Lab standards, it may lose its certification. Companies are expected to continuously improve their practices over time, and failure to meet recertification requirements or address risk concerns may lead to de-certification.
Ineligible businesses
Companies in industries such as firearms, pornography, tobacco, and fossil fuels (generating more than 5% of revenue) are not eligible for B Corp Certification.
