The new B Corp standards: what they mean and how to prepare
The world is changing rapidly, and businesses are increasingly being called upon to address some of the world’s most pressing social and environmental challenges. In response to this, B Lab, the nonprofit behind B Corp Certification, has launched new standards after years of feedback, testing, and refinement. This marks one of the most significant evolutions of B Corp Certification. The new standards redefine what it means to be a responsible business today, raising the bar for impact, transparency, and accountability.
In this blog, we will break down what has changed, why it matters, and how your business can prepare.
What has changed and why it matters
Foundation requirements
When a company begins its journey toward B Corp Certification, it must first meet the foundation requirements. While they are not entirely new, they are emphasised to ensure alignment with B Corp principles from the outset. For example, companies must be legally incorporated, operational for at least 12 months, and compliant with relevant laws. Additionally, they must commit to stakeholder governance, embedding a commitment to all stakeholders into their legal framework. Companies must also conduct a risk assessment to proactively identify and manage potential risks, using B Lab’s profiling tool.
Meeting the bar
One of the biggest changes is that B Corp has moved away from the points-based scoring system to a “meet the bar” model. Instead of achieving points across impact areas, companies must now meet baseline requirements in all areas. This ensures more consistent performance across the B Corp community and reflects the belief that all B Corps should deliver on core principles—not just excel in one area while neglecting others. These topics are the heart of B Corp Certification and are designed to address key aspects of a business’s impact on the world. These impact areas may include additional due diligence sub-requirements based on a company’s risk profile. For example, companies operating in high-risk sectors may need to go deeper into human rights or environmental protection. Here, we highlight the 10 Impact Topics.
- Purpose & stakeholder governance
Companies must demonstrate that their operations go beyond profit maximisation, focusing on purpose-driven governance, ensuring that a company’s decisions benefit not just shareholders but all stakeholders. - Worker engagement
Companies must show that they are fostering a positive, inclusive work environment, professional development opportunities, and meaningful employee involvement in decision-making processes. - Fair wages & benefits
The new standards require companies to ensure that they are paying fair wages that meet or exceed living wage standards. Additionally, companies must offer benefits that support the overall well-being of their employees, creating a work environment where individuals can thrive both professionally and personally. - Human rights
Companies are required to demonstrate that their operations, supply chains, and business practices respect and promote human rights. This includes performing due diligence to ensure there are no abuses. - Justice, equity, diversity, and inclusion (JEDI)
The updated standards put a strong emphasis on JEDI practices, ensuring that companies actively foster an inclusive environment. This covers everything from hiring practices to ensuring that marginalised groups are given equal opportunities and a voice within the company. - Climate action
Companies must demonstrate clear action plans for climate change mitigation, including reducing carbon emissions, improving energy efficiency, and adopting sustainable practices across their operations. This aligns with global efforts to limit the impact of climate change and transition toward a more sustainable future. - Circularity & environmental stewardship
Companies are encouraged to minimise waste, reuse materials, and ensure that their products and services are designed to be part of a regenerative system. By embracing circularity, businesses can reduce their environmental footprint and contribute to a more sustainable world. - Collective action
The new standards recognise the importance of collective action, urging B Corps to collaborate across sectors and industries to amplify their positive impact. Whether through industry partnerships or collective advocacy, working together helps create systemic change that goes beyond individual actions. - Customer stewardship
Companies need to ensure that their products and services are designed ethically, promote transparency, and enhance the well-being of customers. Trust between companies and customers is essential for long-term success, and the new standards ensure that B Corps maintain that trust. - Risk standards
Lastly, companies must address any potential risks in their business model, especially those that could have harmful social or environmental impacts. By implementing robust risk management systems, businesses can ensure they are continually monitoring and mitigating potential harm in their operations.
A key improvement in the new standards is their adaptability to a company’s context, including size, sector, and geographic location. As B Corp expands globally, the standards have been updated to ensure they remain relevant for all businesses, especially SMEs and large companies operating in diverse regulatory environments. To achieve this, B Lab has introduced several tailoring strategies: differentiated sub-requirements based on company size and sector, context-specific sub-requirements with tailored guidance, and an equity mechanism for countries or territories. Additionally, more stringent eligibility criteria apply to certain industries. These strategies address the varying challenges and opportunities companies face depending on their size, industry, and location.
Additionally, B Lab has enhanced the tool with more guidance and interoperability features. Recognising the complexity of the sustainability landscape, the new B Corp standards are aligned with major frameworks such as the European Sustainability Reporting Standards (ESRS), Global Reporting Initiative (GRI), and CDP. This alignment simplifies reporting for companies, ensuring consistency in sustainability disclosures. It is particularly beneficial for companies navigating EU regulations or preparing for CSRD reporting.
Continuous improvement
Another change in the new B Corp standards is the focus on continuous improvement. In Year 0, companies must meet all foundational and impact requirements to earn certification. After three years, they are expected to show progress in their impact areas, demonstrating meaningful improvements in their operations. By the five-year mark, companies should be able to highlight further advancements and how they have integrated sustainability and social impact into their long-term strategy. This multi-phase approach promotes long-term thinking and deeper transformation over time.
Transition to third-party certification
In the old standards, B Lab employs a second-party assessment process for verifying B Impact Assessments. This system was purposefully designed to tap into the expertise of B Lab’s internal staff. However, under the EU Empowering Consumers Directive, which governs the use of sustainability labels in the EU market, certification schemes must be entirely managed by a third-party verification body. In response to this regulatory change, B Lab is transitioning to a fully third-party certification model, meaning that 100% of certification decisions will be made by independent third parties. While this update alters the certification process, the core suite of standards remains unchanged. As part of this transition, B Lab will partner with one or more assurance providers to offer certification services and ensure ongoing monitoring, ensuring that the process remains rigorous and consistent with prescribed international standards.
When should I follow these changes?
Please note, further information on the process will be provided in Q3 2025.
What is still unclear?
While the new B Corp standards offer clearer structure and guidance, some aspects remain under review and clarification.
One key area of uncertainty is the role of Impact Business Models (IBMs). B Lab has previously awarded additional points in the B Impact Assessment (BIA) for companies with deeply embedded positive impact. However, due to evolving regulations, the future application of IBMs is still unclear. While B Lab recognises the importance of these models, how they will be integrated into the certification process moving forward is still being assessed.
How to prepare?
The first step in preparing for the new B Corp standards is understanding the different timelines and placing them into your own context. Staying ahead of these deadlines is crucial, as different companies may face varying timelines depending on their situation.
Once the timelines are clear, companies should review the updated foundation requirements and impact areas, including legal structure, stakeholder governance, and risk management practices. By exploring the new standards through the B Impact Assessment (BIA), businesses can assess how these changes will affect their operations.
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We are here to support your company in navigating this process, ensuring alignment with the updated timelines and helping you meet the new B Corp standards with confidence. Please see more about our B Corp services here.
