B Lab has introduced a new set of standards for B Corp Certification, marking a major update in the certification process. The updated standards, which represent the seventh iteration, establish clearer and more rigorous performance criteria for businesses seeking certification. The changes aim to drive more effective action on urgent social and environmental issues, including the climate crisis and rising social inequality.
A more demanding certification
The new framework shifts away from cumulative point scoring, requiring B Corps to meet specific standards across seven key “Impact Topics,” ensuring a more holistic approach to business performance. These topics include climate action, human rights, fair work, environmental stewardship, and justice, equity, diversity, and inclusion. Businesses must also develop governance structures that align with these priorities and demonstrate continuous improvement over time, with milestones for progress set at three and five years.
The decision to overhaul the standards follows an extensive consultation process, during which B Lab engaged stakeholders to better understand the expectations of businesses and the broader community. The changes come at a time when B Lab’s global network is rapidly expanding, with nearly 10,000 companies across 100 countries currently certified, representing a diverse range of industries.
Judy Rodrigues, Director of Standards at B Lab Global, notes, “After four years, two public consultations, and 26,000 pieces of feedback from businesses, the public, and experts, we are confident that the new standards are clear, ambitious, and truly capable of raising the bar for businesses worldwide.”
One of the most notable changes is the introduction of mandatory requirements for all B Corps to develop climate action plans aligned with limiting global warming to 1.5°C. Larger companies are also required to set and track science-based greenhouse gas reduction targets. Additionally, companies must now conduct due diligence on human rights impacts in their operations and supply chains, as well as assess and mitigate environmental risks.
In response to growing concerns over the integrity of the B Corp certification, the new standards introduce a third-party verification process to enhance impartiality and transparency. Previously, B Lab conducted second-party assessments, but the new approach will ensure that certification decisions are made independently by accredited assurance providers.
B Corp’s credibility crisis
This shift comes amid scrutiny from some B Corp members who have questioned the credibility of the certification, particularly as larger multinational corporations have joined the ranks. Notably, Dr. Bronner’s, which previously held the highest-ever B Corp score, recently dropped its certification, citing concerns over the alignment of the certification with its values.
UK-based pet food brand Scrumbles also opted not to renew its certification, citing concerns that the label has become a “marketing badge” and a potential tool for greenwashing. As the certification process becomes more rigorous, B Lab remains committed to refining the standards to ensure they align with the evolving landscape of environmental, social, and governance (ESG) practices.
No more “dirty” money
The updated standards also tighten eligibility criteria for certification. Companies that derive 1% or more of their annual revenue from industries such as fossil fuels, tobacco, gambling, pornography, or weapons are no longer eligible to certify. This stricter rule also applies to marketing and consulting firms, which must ensure that no more than 1% of their revenue comes from ineligible sectors.
“This isn’t merely an update; it’s a complete reimagining of business impact”
The new B Corp standards are expected to be implemented through a phased approach over the next five years, giving companies time to adapt and meet the increased requirements. However, businesses that are not currently B Corps can begin the certification process immediately by using B Lab’s new digital platform to map their performance against the updated criteria.
Co-lead executive at B Lab Global, Clay Brown, stated, “At a time when other leaders are stepping back, business must drive progress. This isn’t merely an update; it’s a complete reimagining of business impact to respond to the challenges of our time. B Lab’s new standards can serve as a roadmap for leadership on social and environmental issues when needed most.”
