The B Corp certification recognizes companies with exemplary socio-economic and environmental standards
Author: House of Eden
- What exactly is a B Corporation?
- How do companies qualify for certification?
- What significance do B Corps have for the future?
The non-profit organization B Lab evaluates companies according to strict criteria with regard to their working methods, their sustainability and their corporate integrity and then certifies them as a B Corporation. Currently, 6195 companies worldwide have been awarded a B Corp certificate, including well-known names such as Alpro, Innocent or Ecosia. 71 B Corps have their headquarters in Germany.
What exactly is a B Corp?
B Corp is a term used to describe companies that have been acknowledged by the non-profit organization B Lab for meeting high social standards. Such companies prioritize sustainability and transparency in their corporate culture, without compromising on economic profit. Benefit corporations ensure that sustainable practices coexist alongside profitability.
This is what ultimately separates B Corps from many other companies and is why they receive B Lab certification. The fact that the B Corp movement has grown steadily since B Lab was founded in 2006 and now has more than 6.000 companies among its members worldwide is a testament to this. The abbreviation for Benefit Corporation or Certified Benefit Corporation is advertised.
What is a B Corp certificate?
Companies aiming for a B Corp certification must go through a complex and time-consuming process. The larger the company, the more people are involved in the certification process and the more complex it becomes, but basically all companies go through the same process. In the first step, the company registers for the B Impact Assessment (BIA) and must fill it out completely. Based on this, the so-called B Impact Score is determined.
The Impact Score is based on areas such as governance, society, sustainability, and labor rights. Companies that achieve at least 80 out of 200 points can submit the assessment. For comparison, the median B Impact Score of ordinary companies is 50,9. Along with a submission fee, this is a prerequisite for being eligible for the certification process. B Lab then reviews the information and links to controversial industries.
Currently, for example, the team is also examining the company's relationship to the Russian moratorium on B Lab. Thus, companies operating in Russia and Belarus are excluded from certification as a B Corp until further notice. If these examinations still produce a result of 80 points or better, certification is possible. However, this is just the beginning. Even after certification, businesses must consistently show that they fulfil B Lab's criteria. Renewal of certification happens every three years, with emphasis on whether the company has made progress in the assessed areas.
How important are benefit corporations for the future?
Certification as a Benefit Corporation is a prestigious recognition given only to companies with exceptional socio-economic and environmental credentials. To obtain this certification, companies must prioritize sustainability, employee rights, and transparency. By adopting the values of a Benefit Corporation, companies can work towards creating a more sustainable and socially responsible economy for the future.
B Corp workers tend to be happier and more satisfied when they feel valued within the company, have good working conditions, and are environmentally conscious. This is the result of the company's effort to prioritize these aspects. The fact that the B Corp movement has grown steadily since B Lab was founded in 2006, and now counts more than 6.000 companies worldwide among its members, is a sign that the model is working, and also that consumers are more often choosing sustainable products that have been manufactured with some environmental awareness. It is no longer just a trend to work sustainably.