That big sans-serif “B” with the circle around it — it’s a logo you’ve probably seen around quite a bit. Maybe you know that only ethical businesses receive the certification. But what does that really mean? How is it decided, and by whom? After writing about B Corporations (B Corps, for short) for years, I decided to find out more about what’s behind the certification process.
“The B Corp designation is one of the most sought-after third-party certifications.”
The B Corp designation is one of the most sought-after third-party certifications, indicating that a brand meets a certain level of environmental performance, transparency, and accountability. More and more businesses are going for their B Corp certification each year — and more and more are receiving it, too, and spending a lot of time and money in the process.
Today (as of March 2024), there are 8,175 certified B Corps worldwide. The U.S. is home to 2,997 of those, but you can find B Corps headquartered in almost any country. I spoke to a number of B Corps to find out what it takes to be one of these businesses.
What is a B Corporation?
B Corps are certified by B Lab, a nonprofit network that operates out of Berwyn, Pennsylvania, with additional offices in Philadelphia, New York, Denver, and Oakland. Established in 2006 by a group of three friends, they certified the first 82 B Corps in 2007.
Unlike other prestigious third-party certifications, like Climate Neutral or USDA Organic, B Lab takes a look at all aspects of a brand’s business, measuring its entire social and environmental impact to see if it meets the mark.
“B Lab requires their certified companies to demonstrate accountability to all stakeholders, not just shareholders.”
Essentially, B Lab requires their certified companies to demonstrate accountability to all stakeholders, not just shareholders — meaning a business should answer not just to the folks for whom it’s making money, but to anyone who might be impacted by the business’s operations, like the employees, the customers, the community, and the environment.
How does a brand become B Corp certified?
The certification begins with an “impact assessment,” said Janet Kanazawa, senior corporate counsel at Patagonia. The assessment has “hundreds of questions that assess a range of issues and topics related to our impact on our workers, the community, the environment, our customers, and our governance practices,” she said.
“The assessment is pretty rigorous — it comprises several rounds of questions that then lead to other questions.”
The assessment is pretty rigorous — it comprises several rounds of questions that then lead to other questions. For example, if a company talks about its efforts to reduce packaging in the first round of questions, they’ll have to actually show proof in the second round.
“The certification process was a pretty big lift for our small team,” said Emily Billado, marketing and project coordinator at Ursa Major, which was first certified as a B Corp in 2020. “In some instances, we had to create material that we had not necessarily thought about in the past, or formalize procedures that we were already using.”
To receive certification, companies must score an 80 or higher on the B Corp impact assessment, which has sections on the company’s impact regarding governance, workers, community, environment, and customers. As a benchmark, most companies score a 51 or so the first time they complete the assessment, while 200 is the highest possible score.
Currently, the highest-scoring B-Corp is South Mountain Company, a Martha’s Vineyard-based building company, with a score of 184.1. Patagonia is also one of the higher-scoring B Corps, reaching 166 during their last recertification.
The entire process can take a year or more, and starts with a couple of online tools before a company begins the actual scored assessment. Then there’s an evaluation queue and a verification queue before the official certification.
“The entire process can take a year or more.”
“We were put through our paces,” said Douglas Taylor, CEO of Bruichladdich Distillery, of the certification process, which took them 15 months end to end, and made the company the first European gin and whiskey distillery to earn B Corp status.
But the hardest part is that it doesn’t end there. Companies must be recertified every three years, during which they go through an audit and re-complete the impact assessment to make sure they still get above an 80.
“We’ve undergone recertification three times, and it’s always a humbling journey.”
– Devon Richardson, senior impact manager at MiiR
“We’ve undergone recertification three times,” said Devon Richardson, senior impact manager at MiiR, “and it’s always a humbling journey.” During Patagonia’s most recent recertification, they had to submit separate B Impact Assessments for the Americas, Europe, and Asia Pacific regions. Most businesses take this as an opportunity to improve their score and continue growing. Ursa Major, for example, improved their score from an 80.2 in 2020 to a 96.6 in 2023.
So, to achieve B Corp certification, a company has to hit three major points. First, they have to demonstrate high social and environmental performance by scoring above 80. Then, they must “make a legal commitment by changing their corporate governance structure to be accountable to all stakeholders,” according to B Corp’s website. And finally, they must exhibit transparency, since all information about their company’s performance is made publicly available on B Corp’s site.
What’s the importance of a B Corp certification?
As more and more consumers look to make ethical decisions about where they spend their money, B Corp certifications are one of the most powerful ways to prove that a company doesn’t just talk the talk, but walks the walk, too — on all aspects of their business. The certification assesses a company’s full social and environmental impact across every step of its supply chain.
“The certification assesses a company’s full social and environmental impact across every step of its supply chain.”
Bruichladdich Distillery went for its certification in 2020 to demonstrate its commitment to Islay, the Scottish island in which it operates, and the island’s many farmers with whom they partner for their malting barley, said Taylor. The company has always been motivated by doing what’s right for the island community, said Taylor, “and our B Corp certification is recognition of this work.” The distillery currently has an impact score of 100.7.
Customers aren’t the only ones looking for certs like B Corp — retailers and employees are increasingly looking to work with businesses who’ve demonstrated a certain level of social and environmental responsibility.
But B Corp certs are not the be-all and end-all of ethical business practices. Some small businesses can’t afford the costs that go into getting certified, for example. And since there’s such a wide range of impact scores that receive B Corp certification, you might want to look into a company’s numerical score as you make purchasing decisions.
“B Corp certs are not the be-all and end-all of ethical business practices. Some small businesses can’t afford the costs that go into getting certified, for example.”
Other great third-party certifications can also give you more information about specific steps a company is taking in the name of sustainability. For example, if you’re buying something made of cotton, you might want to look for the GOTS (Global Organic Textile Certification) label, and for paper or wood products, you’ll want to keep your eyes peeled for FSC (Forest Stewardship Council) certification. Read more in our guide to some of the most popular third-party certifications.
If you’re really committed to buying from companies that align with your ethics, look for specific information on a company’s site that goes beyond certification stickers. Transparency is key here. “Environmental certifications are valuable, but it’s always good to look for evidence of efforts to reduce carbon emissions, minimize waste, and conserve resources,” explains Billardo.
Still, the B Corp label is a fantastic way to feel good about where you put your money. “In an era of greenwashing and misleading labels,” said Kanazawa, “certified B Corporations and other reputable, qualified certifications are key to help identify trustworthy companies.”
Natalie Gale is a Boston-based freelance journalist. When she’s not writing about art, food, or sustainability, you can find her biking to the farmers’ market, baking, sewing, or planning her next Halloween costume. Say hi on Instagram!
