In a world where businesses are increasingly striving to be more environmentally and socially responsible, B Corp certification has emerged as the gold standard for companies committed to balancing profit with purpose. Achieving B Corp status demonstrates that your business meets rigorous standards for sustainability, social impact, and transparency. But how exactly can your company become a certified B Corporation?
In this guide, we’ll walk through the steps to becoming a B Corp and explain why this certification is a valuable business asset.
What is a B Corp?
A B Corporation (B Corp) is a company certified by the nonprofit organization B Lab for meeting high standards of environmental and social performance, accountability, and transparency. Going beyond a focus on only profit, B Corps consider the impact of their decisions on all stakeholders, including employees, communities, and the environment.
By becoming a B Corp, your business joins a global movement of companies committed to making a positive difference. Brands like Patagonia, Ben & Jerry’s, and BrewDog are all proud B Corps, using their businesses as a force for good.
What are the Benefits of Becoming a B Corp?
Some of the main benefits of becoming a B Corp including:
- Attracting customers: With consumers today more conscious than ever, they seek to shop with brands that align with their values, especially regarding sustainability and social impact. B Corp certification enhances your brand’s credibility and helps build trust with eco-conscious consumers.
- Improved employee satisfaction: Purpose-driven companies tend to attract top talent and boast higher employee engagement and retention. Becoming a B Corp shows that your business values its workers and community, helping to foster a positive workplace culture.
- Greater investor confidence: B Corps are increasingly attractive to investors who prioritize ESG (Environmental, Social, and Governance) criteria. Certification proves that your company is committed to ethical practices and sustainable growth.
Steps to Become a B Corp
Becoming a B Corp involves a rigorous evaluation, legal commitments, and continuous improvement. Here are the essential steps:
1. Complete the B Impact Assessment (BIA)
The B Impact Assessment (BIA) is the first step in the B Corp certification process. This free, online tool measures your company’s performance across five key areas:
- Governance: Transparency, ethics, and decision-making.
- Workers: Employee treatment, benefits, and well-being.
- Community: Engagement with local communities and supply chain impact.
- Environment: Sustainability efforts, such as energy usage, waste management, and carbon footprint reduction.
- Customers: Products or services that contribute positively to social and environmental challenges.
To qualify for B Corp certification, you need to score at least 80 points out of 200 in the BIA. The assessment is detailed and may require several weeks to complete, as it will likely involve input from various departments within your company.
2. Submit Documentation for Verification
Once you’ve completed the BIA and achieved the minimum score, the next step is to submit your results for verification by B Lab. They will review your answers, request supporting documentation, and may conduct an interview to ensure the accuracy of your assessment. Be prepared to provide evidence of your company’s social and environmental performance, as this is a crucial part of the verification process.
3. Meet Legal Requirements
Becoming a B Corp requires you to make legal adjustments to ensure your company is accountable to all stakeholders, not just shareholders. These legal requirements vary by region, but in general, you’ll need to amend your company’s articles of incorporation to include a commitment to considering the impact of business decisions on stakeholders like employees, customers, the environment, and the community.
For U.S.-based businesses, this may involve becoming a Benefit Corporation, a legal structure that encompasses your company’s mission into its core operations.
4. Pay the Certification Fee
Once your BIA is verified and your legal framework is in place, the final step is paying the B Corp certification fee. This fee varies based on the size of your business and annual revenue, ensuring that companies of all sizes can participate. Typically, the fee ranges from a few thousand dollars for smaller companies to significantly more for large corporations.
5. Recertify Every Three Years
Becoming a B Corp is not a one-time achievement. To maintain your certification, you’ll need to recertify every three years by completing an updated B Impact Assessment. This ensures that your company continues to meet the evolving standards of social and environmental performance.
How Long Does it Take to Become a B-Corp?
The process to become a B Corp— from beginning the B Impact Assessment to fulfilling the legal accountability requirement to being able to officially announce B Corp Certification — will vary depending on the size and complexity of your company.
Small to medium sized companies may only need to wait between 608 months whereas larger multinationals or more complex companies should expect a longer verification process.
How Much Does it Cost to Become a B-Corp?
Pricing for B Corp Certification is determined based on a company’s annual sales, ensuring B Corp Certification is affordable for all businesses.
In the EU
The fee is structured based on company revenue and paid in two installments – 10% upon submission and 90% upon verification.
In the US & Canada
Companies looking to become a B Corp pay a one-off, non-refundable submission fee to start the initial evaluation of the company’s assessment. Once verified, the company will pay an annual certification fee based on gross annual revenue.
Taking the First Step Toward B Corp Certification
For businesses focused on sustainability and social impact, becoming a B Corp is a powerful way to stand out and demonstrate commitment to a better future. By undergoing a comprehensive assessment, meeting legal requirements, and recertifying every three years, your business can become part of a global movement that uses business as a force for good.
If your company is serious about sustainability, pursuing B Corp certification is not only a badge of honor but a pathway to meaningful, long-term growth. Take the first step today by starting the B Impact Assessment and joining the ranks of businesses making a difference.
