B Corp standards updates launched: what it means for carbon reporting

Since December 2020, B Lab Global has been working on a new set of standards for B Corp Certification. Following a comprehensive process of drafting and consultation, the organization has now launched its new standards.  The changes now make it a requirement for companies to report their carbon footprint, as part of obtaining the certification. 

So, what details do we know now, and why does this matter to your business?

What has changed in the B Corp standards? 

The structure of the new standards marks a departure from what was previously a ‘flexible scoring system’ where companies had to register a total score of 80 in the B Impact Assessment. Now, in B Lab Global’s own words, the new standards will ‘provide clarity for companies, galvanizing the most impactful business actions and focusing on what really matters’.

In practice, the new standards are built on two pillars: baseline Foundation Requirements and Impact Topic Requirements. 

As B Lab Global explains:

• Foundation Requirements determine a company’s eligibility and scope for B Corp certification
• Impact Topic Requirements measure company impact performance across seven key areas, addressing critical issues like Climate Action, Fair Work, and Purpose Stakeholder Governance

In this new structure, companies are required to ‘meet explicit criteria tailored to their size, sector and location’. Critically, they will have to do this across all of the Impact Topics.

B Corp Impact Topic requirements: Climate Action

One of the 7 Impact Topics is Climate Action. The new standards detail that to meet the requirements to obtain B Corp certification, companies would need to adhere to the following in future:

• CA1: The company has a process to measure its greenhouse gas (GHG) emissions annually 
• CA2: The company is committed to contribute to help keep global warming below 1.5°C
• CA3: The company implements and makes progress on its climate action plan

Within these planned requirements, the new standards state that calculation of emissions needs to include the value chain and be aligned to the GHG Protocol methodology. A company’s greenhouse gas emissions inventory will also have to be made publicly available. 

More details can be found in the new standards, published here.

When will the new B Corp standards come into place?

The first set of B Corps to be certified by the new standards will be processed in 2026. However, the details of what would be expected of those companies that wish to recertify are still being refined – so keep an eye out for forthcoming announcements to learn the specific expectations and timelines. 

What this means for your business

This shift makes it clear that sustainability is pivotal to businesses that are not only looking to reduce their impact on the environment, but to make themselves a more commercially attractive organization to work with and for. With nearly 10,000 companies across 102 countries B Corp certified, these planned new standards have the potential to make a big impact. 

What your business can do to prepare for the new B Corp standards

So, what can your business do today, if it wants to meet the new B Corp standards?

• Build a foundation of comprehensive carbon data. Focus on the data you have available – the most important thing is getting started.
• Set credible targets. Once you have a clear view of emissions across your operations and supply chain, your business can look at setting targets. Expert guidance is recommended to ensure your business can get these externally validated and that they are achievable.
• Implement an emissions reduction plan. Focus on active reduction initiatives, where your business will have the most control.