Navigating the new B Corp standards: a refined framework for measurable business impact

Insight

31.07.2025

Since the first certification of B Corporations (B Corps) in 2007, sustainability has rapidly moved up the corporate agenda and, at the time of writing, more than 9,500 businesses worldwide have achieved B Corp status. However, concerns have emerged around the value of the B Corp certification and whether it is fit for purpose in today’s market. We wrote previously about the consultation to revise the certification process here. Following that consultation, B Lab has confirmed that it is implementing a suite of technical reforms to the certification process aimed at enhancing accountability and transparency through a more methodical framework.

Drivers for reform

Many companies and investors have integrated responsible operations and governance frameworks into their corporate strategies as standard, and the B Corp community has rapidly expanded since its inception. However, a growing number of member organisations have raised technical and operational concerns about the current certification regime, arguing that rigorous standards must be enforced for the B Corp certification to maintain credibility in the market.

The legacy 80/200-point scoring framework, where businesses could compensate for deficiencies in one area by overperforming in another, has led to debate on whether the existing regime inadvertently allows underperformance on critical issues. The new framework will transition the certification process from an aggregate scoring model to clearly defined minimum, mandatory requirements across seven technical areas known as Impact Topics. These changes, together with an ongoing compliance obligation, will be rolled out in 2026.

Technical changes in the new framework

1. Foundation requirements

All businesses will still be required to meet the existing core criteria. These will be known as the Foundation Requirements, comprising three fundamental eligibility criteria that must be satisfied by applicants as part of the certification process:

Businesses must be legally incorporated and have been in operation for at least 12 months. They must comply with local and national laws.
Businesses must adopt the B Corp Legal Requirement which includes incorporating a set of governance principles into the legal framework (typically an entity’s constitution) and the organisation signing the B Corp Declaration of Interdependence. This will demonstrate accountability and commitment to all stakeholders.
Businesses will use the B Lab risk assessment tool, which will consider factors such as an organisation’s size, industry sector and geographic location, to create a risk profile and determine how many additional sub-requirements (criteria) that a business must meet to complete the B Corp certification process. This may result in an organisation needing to satisfy anywhere between 20 to 124 additional technical standards.

2. Minimum requirements across seven “Impact Topics”

Businesses will need to meet minimum requirements in seven designated Impact Topics and overperforming in one area will not absolve an organisation from meeting the requisite standard in another. These Impact Topics are designed so that businesses can demonstrate leadership in responsible business practices and impact management. They are:

Purpose and stakeholder governance – act with defined purpose and embed stakeholder governance in decision-making.
Fair work – provide good quality jobs with positive workplace cultures and fair wage practices.
Justice, equity, diversity and inclusion – foster inclusive and diverse workplaces and contribute to just and equitable communities.
Human rights – take action to prevent and mitigate negative impacts to human rights in business operations.
Climate action – develop an action plan to support limiting global warming and combat the climate crisis.
Environmental stewardship and circularity – assess environmental impacts and take meaningful action to minimise in their operations.
Government affairs and collective action – engage in collective efforts to drive systemic change and be advocates for policies and solutions that work towards an equitable, inclusive and regenerative economy.

3. Ongoing compliance and continuous improvement

Following the initial certification process, businesses are expected to demonstrate technical and operational improvements at defined intervals, specifically at three and five years, and at the same time must continue to maintain compliance with all previous years’ requirements.

During these milestones, businesses will face additional criteria, ensuring that B Corp status is not a one-off accreditation but a continuous commitment. This change will apply to existing B Corps and new applicants.

4. Enhanced industry exclusion criteria

The updated Foundation Requirements impose more stringent eligibility rules, which exclude businesses with revenue exposure to industries deemed harmful to stakeholders.

A business cannot certify if 1% or more of its annual revenue derives from adverse activities such as fossil fuel production, gambling, pornography, prison labour, tobacco, or weapons manufacturing.
Service providers such as marketing, PR, and consulting firms are also subject to the 1% revenue limits, preventing them from indirectly enabling negative impacts.
Specific thresholds are applied to financial services (less than 1% of assets under management can be deployed in the designated industries) and to electric utilities and power generation companies (where the fossil fuel share of energy mix is capped at 50%).

These technical specifications ensure that all certified firms adhere to a baseline of ethical business practices, effectively realigning the certification with rigorous sustainability principles.

5. Third-party verification

One of the most technically significant changes is the shift to “interoperability”. B Lab is developing a new third-party assurance model that will align its standards with the EU Empowering Consumers Directive and other international regulatory frameworks and best practice. This will make it easier for businesses that have already adopted certain tools or that meet certain other standards to simplify their data collection and reporting efforts, allowing organisations seeking B Corp status to be verified by third-party providers.

Technical implications for organisations: Next steps

For businesses within or aspiring to join the B Corp community, the revised standards impose a series of new operational and compliance requirements. Organisations should start thinking about where they may need to make changes to their strategy, workplace culture or business operations to ensure they conform with the new regime.

Conduct a comprehensive assessment and gap analysis: undertake a detailed review of current practices against the seven Impact Topics. Identify areas where existing practices fall short of the new sub-requirements based on company size, industry, and geography.
Legal and operational alignment: engage with legal teams to update corporate governance structures in line with the B Corp Legal Requirement.
Continuous improvement strategy: develop medium- and long-term policies and procedures that address the incremental requirements imposed at the three- and five-year mark to ensure ongoing compliance and improving positive impact.

The move to a more granular, technically rigorous system not only safeguards the integrity of the B Corp brand but also provides a clear framework for businesses to systematically enhance their sustainability credentials. By addressing these technical challenges head-on, the revised standards reaffirm B Lab’s commitment to driving genuine, measurable corporate impact. Ultimately, these reforms provide reassurance to businesses that this certification remains a mark of excellence.

Many thanks to trainee Madeleine Ross for their help in writing this article.

This publication is a general summary of the law. It should not replace legal advice tailored to your specific circumstances.