B Corp or EcoVadis, what's the best choice for your company?

“When deciding which sustainability rating or certification standard is right for your company, the most important factor is how it will contribute to your strategic goals.”

Facing increased scrutiny from regulators, stakeholders, and customers, more and more companies are under pressure to demonstrate tangible progress in their sustainability commitments. One effective way is to pursue certification according to a recognised sustainability standard.

Given the financial and time investment of certifications, it’s important to choose your certification pathway carefully.

This blog will give you an overview of the two most popular options – EcoVadis and B Corp – breaking down the decision-making process and outlining the practicalities of certification.

B Corp and EcoVadis: What are the similarities?

Document-based assessment

Both assessment methodologies require companies to provide comprehensive documentation of their sustainability practices. Both also use tailored questionnaires based on factors such as industry, company size and number of full-time employees.

Continuous improvement

In addition, continuous improvement and an ongoing commitment to sustainability are essential to both methodologies.

For example, certified B Corps must be re-certified every three years to maintain their status. Meanwhile, EcoVadis assessments are typically conducted annually to verify companies’ progress towards their sustainability goals.

What are the key differences between B Corp and EcoVadis?

Reach

EcoVadis is one of the most widely used corporate sustainability ratings, with more than 130,000 companies assessed worldwide. However, there are only around 9,000 B Corps globally. This is partly due to differences in scope and eligibility between the different standards.

Accessibility

Put simply, companies in a wider range of industries are eligible for an EcoVadis rating. B Corp certification, on the other hand, is more restricted due to the standard’s specific industry risk considerations.

In addition, a company must score a minimum of 80 points on the assessment to become a B Corp, while EcoVadis operates a tiered approach. Bronze, Silver, Gold and Platinum medals recognise different levels of sustainability progress.

Scope of the assessment

The main difference between B Corp and EcoVadis is in the focus of the assessment.

EcoVadis evaluates a company’s sustainability management system, while B Corp assesses a company’s sustainability impact through the lens of its operations and business model.

Moreover, B Corp certification requires companies to incorporate a specific addendum into their articles of association. This states that the company considers the interests of the environment, society and financial performance equally. This helps to protect the company’s mission as a force for good even after organisational changes.

Impact Business Models

EcoVadis primarily assesses a company’s existing policies, measures and reporting practices. In contrast, B Corp offers a more comprehensive assessment of a company’s overall social and environmental impact through its Impact Business Model (IBM) approach.

The IBM analysis goes deeper by identifying and evaluating how a company is structured to deliver specific positive social or environmental outcomes.

Already have an EcoVadis rating? It may be time to consider B Corp certification

If your organisation already has an EcoVadis rating, B Corp certification may be the right next step for you.

While EcoVadis primarily evaluates the quality of your sustainability management system, the B Impact Assessment (BIA) puts more emphasis on your company’s sustainability performance and impact.

The scope of the assessment is also broader. For example, it includes more questions on community engagement and customer stewardship, providing a more holistic view of a company’s social impact.

Improved credibility

The B Corp standard has a high level of consumer credibility compared to other major certifications such as Fairtrade and Rainforest Alliance. This can lead to increased market traction.

In fact, 69% of Europeans who are familiar with B Corp say that B Corp certification has a positive impact on whether they would choose a particular product or service (B Corporation, 2024).

Networking opportunities

With more than 9,000 B Corps across 162 industries and 93 countries, B Corp represents a thriving community of companies committed to driving social and environmental progress (B Corporation, 2024).

To create connections between these businesses, fostering collaboration and knowledge sharing, B Lab organises regular networking events, including conferences, discussions, and training sessions – a great way to meet industry peers. See more here.

Already a certified B Corp? Here’s how EcoVadis could help you

As the world’s largest provider of sustainability ratings, EcoVadis enables organisations to share detailed scorecards reflecting their sustainability performance with their customers, suppliers and other key value chain partners.

This promotes transparency throughout the supply chain and can be key to facilitating communication with stakeholders.

B Corp, on the other hand, does not require companies to share detailed assessment results.

Structured internal sustainability management

The EcoVadis assessment evaluates companies across four pillars: environment, labour and human rights, business ethics and sustainable procurement. Its structured approach, focusing on policies, measures and reporting, can be easily integrated into a company’s internal sustainability management system alongside B Corp best practices.

Access to finance

EcoVadis ratings have gained widespread recognition in the financial sector, especially in Europe. Banks and other financial institutions are increasingly using EcoVadis ratings to track companies’ performance on environmental, social and governance (ESG) topics.

This means that a favourable EcoVadis rating can facilitate access to financing or preferential conditions. In addition, ESG-linked products are emerging that incorporate EcoVadis ratings into their eligibility criteria. Getting rated can therefore bring significant benefits.

B Corp certification: Pricing and timeline

B Corp certification is an extensive process that typically takes between 9 and 24 months and consists of several distinct phases.

The initial evaluation phase determines the company’s eligibility and assesses whether it meets the core standards. The company then completes the B Impact Assessment (BIA).

This is followed by the verification phase, during which B Lab conducts an in-depth review of the assessment. Companies that score between 75 and 80 points are given the opportunity to improve their practices, with the aim of achieving the minimum threshold of 80 points.

The final stage involves post-verification procedures, culminating in the signing of the B Corp Declaration of Interdependence.

Unlike EcoVadis, B Corp certification requires a financial commitment in the form of a verification fee and an annual certification fee. These fees are based on the size and geographical location of the company. Detailed pricing information can be found on the official B Corp website.

EcoVadis rating: Pricing and timeline

The EcoVadis assessment process is less time-consuming, requiring just two main steps: registration on the EcoVadis website and completion of a questionnaire using existing documentation.

Once submitted, EcoVadis experts will analyse the company’s questionnaire for approximately six to eight weeks before issuing a scorecard.

The entire EcoVadis assessment process typically takes between four and six months. As of 1 July 2024, EcoVadis has updated its medal thresholds based on percentile rankings. The new thresholds are as follows: Platinum (81), Gold (73), Silver (66), and Bronze (58).

These updated thresholds reflect EcoVadis’ commitment to maintaining high standards and encouraging continuous improvements in the sustainability practices of assessed companies. For detailed pricing information, please visit the official Ecovadis website.

Sustainability ratings and certification: A major strategic asset

When deciding which sustainability rating or certification standard is right for your company, the most important factor to consider is how it will contribute to your strategic goals.

By choosing the pathway that matches your organisation’s current position on the sustainability maturity curve, you can ensure it has the maximum impact – facilitating buy-in from colleagues, customers and value chain partners.

If you’re in the early stages of your sustainability journey, an EcoVadis rating is an excellent first step, providing a powerful platform for greater supply chain transparency.

Meanwhile, B Corp certification can help more mature companies cement their reputation as sustainability frontrunners. Whichever rating or certification pathway you choose, our experts can provide end-to-end guidance to help your organisation achieve the best possible score, year after year.

Want to find out more about how EcoVadis can help you? Check out our latest on-demand webinar to hear our clients CIRFOOD and Tosca discussing their EcoVadis journeys.

B Corp or EcoVadis, what’s the best choice for your company?