4 key things that the B Corp new standards mean for companies today

It has now been over a year since B Lab launched the biggest update to the B Corp certification since it began in 2006. While in April 2025 the focus was on what has changed, the question for companies today is what does this mean for us now?  

The B Corp new standards have tougher requirements, mandatory impact areas and greater scrutiny on climate action. Participating companies can no longer afford to view sustainability as a standalone initiative. 

For companies thinking about certifying or preparing to recertify, here are four key things every business should know. 

1. The 80-point scoring system has been replaced, & 7 core impact topics are key. 

   
   

Previously, participating companies were required to meet a minimum of 80 points across 5 impact areas, which sparked criticism over companies concealing weak performance in one impact area by excelling in another. Under the new standards, all new and recertifying companies must now meet defined minimum requirements across the seven core impact topics: 1. Climate Action, 2. Purpose & Stakeholder Governance, 3. Environmental Stewardship & Circularity, 4. Human Rights, 4. Fair Work, 6. Government Affairs & Collective Action, and 7. Justice, Equity, Diversity & Inclusion (JEDI).  

What this means: Companies will need to have a more comprehensive and balanced ESG approach. They can no longer get away with cherry-picking areas to do well in and not addressing others. We recommend a review of their ESG strategy and policies to understand if there are any areas of weakness. 

2. Climate Action expectations are tougher. 

   
   

Climate Action is often the most challenging area for most companies, and this is now a standalone impact topic within the certification. Companies face stronger requirements around emissions reduction, supply chain accountability and public transparency. All companies will need to measure their scope 1, 2 and relevant scope 3 emissions. Those companies considered to be ‘large’, ‘extra large’ and ‘extra extra large’ by B Lab are also expected to have a) third-party assured GHG inventories; b) climate transition plans; and c)  greenhouse gas (GHG) targets that are verified by either the Science Based Target initiative (SBTi) or a third party. All other companies are still expected to have a publicly available climate action plan. 

What this means: Climate action is now a core, non-negotiable part of the certification. It is important that companies understand their material emissions sources through accurate, credible emissions calculations and develop a robust, defensible climate strategy as a minimum. 

3. Greater focus on regulatory alignment and assurance. 

   
   

The B Corp new standards have been developed to align with emerging and existing legal obligations, including European Sustainability Reporting Standards (ESRS). As with ESRS, assurance is required, but for B Lab this must be completed by an assurance provider authorised by B Lab, of which there are very few. 

Companies seeking B Corp certification are therefore encountering both higher expectations - for good quality documentation, data and evidence which withstands the assurance process – and significantly higher costs.  

What this means: Early preparation for assurance is vital, both in terms of appointing an assurer and compiling records and evidence for all B Corp minimum standards.  

4. Continuous improvement is unavoidable. 

   
   

A core element of the B Corp new standards is continuous improvement which is enforced through expansion of minimum requirements over time. Initially companies must meet baseline requirements in order to certify, and then progressively they must meet more demanding requirements notably at the 3^rd year mid-cycle review and 5^th year recertification.  

These requirements do vary depending on the size of the participating company but for example, when looking at the Human Rights impact area, here is an extract of the requirements a medium-sized company will need to meet over the certification cycle:

If a company fails to deliver continuous improvement, this will be flagged during one of the various audits undertaken in the certification cycle. These nonconformities will be classified based on severity as either ‘minor’ (a single, isolated lapse) or ‘major’ (total failure to meet or implement a requirement). Corrective action plans must be developed for these and if major nonconformities are not resolved within tight timeframes (3 or 6 months depending on the cycle stage), companies may face non-certification or certification suspension. 

What this means: Companies need to be thinking ahead with clear roadmaps that deliver annual improvements in the KPIs defined for each of the seven impact areas. This can be addressed through the development of an ESG strategy. 

B Corp certification may not be for every company 

The new B Corp standard has raised the bar, so companies need to think strategically about whether the value it brings corresponds to this.  

From a customer perspective, B Corp certification can add brand value to B2C companies as it continues to be a trusted 3^rd party indicator for climate and social credibility. In contrast, for B2B companies with limited consumer exposure, the cost, effort and disclosure requirements can outweigh the benefits. 

For investor-backed organisations, we are also increasingly seeing B-Corp aligned practices (especially around climate targets, governance and human rights) being included in investor ESG questionnaires. Some non-impact investors explicitly reference the standard as an aspiration for their portfolio (for example the Inflexion Sustainability Business Framework) and several have achieved B Corp certification themselves (e.g. Alpine and Palladium). 

What this means: Although full certification might not be the right fit for all companies, companies who are seeking to appeal to the broadest range of investors and/or those consumer-focused sustainability aligned companies should certainly consider the B Corp certification.  

If you need support with any stage of your B Corp journey, contact us here. 

Authored by Amy Whitcher.