Why get support with your EcoVadis assessment?
October 17, 2024
“B Corp certification is unique for its combination of assessment categories and its focus on sustainability beyond the product level.”
Over the past decade and a half, the B Corp certification has grown from a niche label to a globally recognised badge of sustainability excellence. Read on to find out how it started, what makes it unique, and what the benefits are of becoming a B Corp.
B Corp certification is awarded to for-profit companies that meet high standards of social and environmental performance, accountability and transparency. These standards are set by the non-profit organisation B Lab and are used to thoroughly evaluate a company’s impact on its employees, customers, communities and the environment.
In fact, the ‘B’ in B Corp stands for ‘Benefit for all’1. This means that B Corps are set up to produce more than just a profit. Instead, they’re made to create value for all stakeholders. Therefore, for companies considering a B Corp assessment, understanding the history of B Lab and the B Corp certification is a key step on the path to B Corp success.
What are the origins of B Corp certification?
B Lab was founded in 2006 in Pennsylvania by entrepreneurs Jay Coen Gilbert, Bart Houlahan and Andrew Kassoy. Gilbert and Houlahan were the founders of the sports apparel company AND1, which they sold in 2005 before joining forces with college friend Kassoy. Their mission? To help companies put purpose at the heart of their strategy.
The initiative was launched when the three signed a ‘Declaration of Interdependence’, a manifesto setting out their vision for a better way of doing business.2 The first cohort of companies signed up to become B Corps in 2007, and the number of registered B Corps has grown steadily since the launch. One key milestone was the development of the B Impact Assessment (BIA) – a tool designed to help companies measure their performance across multiple governance, social impact and environmental categories.
A global vision for doing business with impact
By 2015, B Lab had certified more than 1,400 companies from over 40 countries, including brands that are now well-known for their sustainable practices, such as Ben & Jerry’s and Patagonia. By 2020, this figure had grown to over 3,500 companies in 70 countries, with B Corp certification recognised globally by consumers, investors and employees as a hallmark of commitment to sustainability management excellence.
As the B Corp movement has grown, the certification has become increasingly relevant. There are now more than 9,000 B Corps worldwide, ranging from small enterprises to large, multinational corporations. This expansion has coincided with a growing emphasis on environmental, social and governance (ESG) issues across the economy – with investors increasingly incorporating sustainability criteria into their decision-making.3 4
How does B Corp certification differ from other sustainability ratings and certifications?
There are many sustainability certifications and ratings for companies to choose from, but what makes B Corp unique is both its comprehensiveness and its traction with consumers and investors alike. In particular, what makes it stand out is its combination of assessment categories and its focus on sustainability beyond the product level. Unlike highly specific certifications such as Fairtrade, Rainforest Alliance, LEED or individual ISO standards, B Corp provides a more holistic rating and certification framework.
Although the scope of the B Impact Assessment is in some ways comparable to that of EcoVadis, its focus is different. The EcoVadis rating system is designed to evaluate a company’s sustainability management system, while the BIA focuses much more on a company’s sustainability impact through its operations and business model. In addition, B Corps must include an addendum in their articles of association stating the company’s commitment to the environment and society – helping to embed the B Corp ethos.
Find out more in our article on the differences between B Corp and EcoVadis.
What are the benefits of B Corp certification?
B Corp’s rigorous and comprehensive approach has helped to cement its position as the gold standard in sustainability certification. As a result, achieving B Corp status can have significant benefits for companies from the perspective of consumers and potential investors. For example, according to a 2024 survey, the B Corp label benefits from a higher credibility rating among consumers than either Fairtrade or Rainforest Alliance.5
Studies also indicate that B Corps demonstrate better resilience to changing market conditions6. This may be because their awareness of sustainability issues and the central role that these play in their business strategy means they can develop solutions ahead of the competition. In addition, B Corp certification can facilitate access to funding, giving SMEs a significant advantage over non-B Corp peers when seeking equity financing.7
Read more about the business case for B Corp certification.
Do B Corps have better employee engagement?
Finally, B Corps have been shown to benefit from a significantly lower employee turnover rate – as well as higher levels of civic and community engagement – than the broader SME population.8 In short, B Corp has become one of the leading sustainability certifications for a simple reason: its assessment process accurately reflects companies’ sustainability progress. It can also help them to drive sustainable improvements.
Developing a future-proof B Corp certification framework
Another key function of the B Corp certification framework is to support companies on their journey to improved sustainability performance. To achieve B Corp certification, a company must score 80 points or more on the BIA. In fact, most companies won’t achieve this on their first attempt, so organisational improvement is effectively built into the certification process. B Corps must also seek re-certification every three years, building on the insights from the BIA to demonstrate a commitment to continuous improvement.
In the same spirit, the B Corp certification framework itself is also undergoing an extensive improvement process. Indeed, B Lab is preparing to release its updated social and environmental business standards, which are the basis for B Corp certification.9 This development is designed to ensure that the B Corp evaluation framework remains as relevant as ever – while helping companies to align more closely with evolving sustainability regulations, meet customer expectations and improve transparency.10
The new B Corp standards are expected to be released in 2025, ushering in a significant evolution of the B Corp certification process. Stay tuned for more information from Nexio Projects on how your organisation can navigate the changes.
A thriving community of engaged businesses
Built by entrepreneurs, B Corp has succeeded in large part because of its practical and progress-oriented approach to sustainability assessment. By creating a robust and representative tool for measuring sustainability maturity, it has enabled many companies to both demonstrate and accelerate their progress. However, more than simply a certification, B Corp is also a community with thousands of passionate members. This collective ambition is what truly gives B Corp its unique status as a change catalyst.
Want to learn more about the advantages of B Corp certification and how you can get support with the certification process? Visit our B Corp certification service page or get in contact for a free consultation with a Nexio Projects expert.
Sources
[1] Whittaker, K. (2024) What does the ‘B’ stand for and five other things you need to know about the B Corp Movement, B Lab Australia & New Zealand. Available at: https://bcorporation.com.au/blog/blog-what-does-the-b-corp-logo-mean/ (Accessed: 29 January 2025).
[2] Kassoy, A., Houlahan, B. and Gilbert, J.C. (2022) A message from the co-founders of B lab on the growth of the global B corp movement and the transition to new executive leadership, A message from the Co-Founders of B Lab on the growth of the global B Corp movement and the transition to new executive leadership. Available at: https://www.bcorporation.net/en-us/news/blog/passing-the-torch-note-b-lab-co-founders/ (Accessed: 30 January 2025).
[3] Morgan Stanley Sustainable Signals Survey Aug 2024 results (2024) Morgan Stanley. Available at: https://www.morganstanley.com/press-releases/morgan-stanley-sustainable-signals-survey-?utm (Accessed: 30 January 2025).
[4] Institutional investors accelerate their low-carbon transition strategies, BNP Paribas ESG Global Survey finds (2024) BNP Paribas. Available at: https://securities.cib.bnpparibas/institutional-investors-accelerate-their-low-carbon-transition-strategies-bnp-paribas-esg-global-survey-finds/ (Accessed: 30 January 2025).
[5] 7 key takeaways on B Corp brand awareness in the Netherlands and Belgium (2024) B Lab Europe. Available at: https://bcorporation.eu/blog_post/7-key-takeaways-on-b-corp-brand-awareness/ (Accessed: 30 January 2025).
[6] Valerie Paelman, Philippe Van Cauwenberge, Heidi Vander Bauwhede, “The impact of B Corp certification on growth”. Sustainability 13 (2021), 7181. Avaliable online at https://www.mdpi.com/2071-1050/13/13/7191 (accessed 31/10/2024).
[7] How we got 1000 times better – B lab UK (2022) How we got 1000 times Better – B Lab UK. Available at: https://bcorporation.uk/reinventing-business/by-b-lab-uk/how-we-got-1000-times-better/ (Accessed: 30 January 2025).
[8] Why certify as a B Corp? (2022) B Lab UK. Available at: https://bcorporation.uk/b-corp-certification/before-you-certify/why-certify-as-a-b-corp/#howdobcorpsperform (Accessed: 30 January 2025).
[9] Evolving the standards for B corp certification (2024) Evolving the standards for B Corp Certification. Available at: https://www.bcorporation.net/en-us/standards/performance-requirements/ (Accessed: 30 January 2025).
[10] B lab’s new standards: Preparing for change and growth (2024) B Lab’s New Standards: Preparing for Change and Growth. Available at: https://www.bcorporation.net/en-us/news/blog/whats-next-balancing-ambition-and-continuity-as-we-implement-our-new-standards/ (Accessed: 30 January 2025).
