A guide to B Corp certification

As concerns around social inequality and sustainable practice continue to grow, the B Corp certification has emerged as a meaningful symbol of corporate responsibility. Our corporate and commercial experts offer their guidance on becoming B Corp certified.

More than just a ‘green trademark,’ B Corp certification provides companies with a public commitment to responsible and sustainable social and environmental practice as well as a structured framework through which to measure and improve their positive impact in these areas.

In the UK, there are now 2,600 B Corps, including household names such as The Body Shop, Guardian Media Group (GMG) and Innocent Drinks, while ONS research suggests that businesses with B Corp certification grow 28 times faster than the national economic growth of 0.5%.

What is a B Corp certification?

B Corp certification is an accreditation granted by B Lab, a non-profit organisation which aims to “inspire and enable people to use business as a force for good.”

The certification is awarded to applying companies which have been verified to meet “high standards of social and environmental performance, transparency and accountability.” These standards for certification require a genuine commitment to the “triple bottom line” of “people, planet and profit”.

Along with companies, other businesses that are eligible to apply for B Corp certification include:

• Sole traders
• Partnerships
• Limited liability partnerships
• Mutuals
• Co-operatives

B Corp certification is, however, not available to charities or non-profit organisations.

Is B Corp certification right for every business?

There are several reasons why a business might consider becoming B Corp certified, including enhancing their brand’s reputation and trust by showing genuine care for people and the planet. The certification could also help to attract employees who want to work for a company with purpose, and appeal to investors.

Another benefit is that the certification process helps businesses to find ways to improve how they operate and grow more sustainably. Plus, joining the global B Corp community offers a platform for connecting with other like-minded companies that are all working to make business a force for good.

However, becoming a B Corp isn’t the right choice for every business. The certification process can be time-consuming and resource-intensive, with ongoing accountability and regular recertification required to maintain it. Some companies may also need to change their legal structure, which can feel restrictive. If a business’ customers or investors aren’t particularly focused on social or environmental impact, the benefits may not outweigh the effort. Plus, once certified, companies face greater public expectations and scrutiny to live up to B Corp standards.

Becoming B Corp certified

In order to become B Corp certified, businesses will need to follow a rigorous process with B Lab, which includes:

• ensuring that their internal policies (such as employment policies) meet the B Lab standard;
• completing B Lab’s Impact Assessment (and achieve a score of at least 80);
• amending their constitutional documents (such as the articles of association of the company or the LLP agreement) to make a commitment to consider the wider impact of decisions taken in running the business; and
• signing the B Corp Agreement and declaration of interdependence to demonstrate the business’s commitment to considering the wider impact of its decisions on its stakeholders.

How we can help with B Corp certification

We are able to work with businesses looking to become B Corp certified by:

• assisting with the adoption of internal policies to support their commitment to responsible social, environmental and economic practice;
• amending their business’s constitutional documents in line with the B Corp certification requirements; and
• reviewing and updating core contracts, policies and agreements, including contracts of employment, director service agreements and staff handbook, to be aligned with the business’s new commitments and account for new duties or expectations

If you have any questions about B Corp certification or you would like our help to become B Corp certified, please don’t hesitate to get in touch with our expert corporate & commercial team.

Our corporate & commercial team is rated by national legal guides The Legal 500 and Chambers UK. The department’s expert lawyers can help businesses big or small on a variety of challenges that may arise.