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b corp certification csr esg

Definition

B Corp Certification is a standard developed by B Lab, a nonprofit that certifies companies as being socially and environmentally responsible.

B Corp certification looks beyond a company’s financial performance to evaluate its environmental, social and corporate governance (ESG) criteria.

It includes, for instance, an assessment of the company’s policy for reducing carbon emissions caused by transportation, the percentage of management that comes from underrepresented populations, and the anti-corruption reporting and prevention systems it has in place.

In order to be certified as a B Corp, companies must meet high standards of social and environmental performance, accountability, and transparency; demonstrate a positive impact on society and the environment through their core values, business practices, and profits; and commit to using their growing influence as a force for good.

B Corp certification is managed by B Lab, which was created in 2006 by three former Stanford University roommates: Andrew Kassoy, Bart Houlahan, and Jay Coen Gilbert.

The organization was created after the founders realized that there was no way to understand whether a company was having a positive impact on society.

So they decided to change the system so that businesses could create value for all stakeholders—not just shareholders—and thus B Lab was born.

The certification process is time-consuming but the benefits are significant.

B Corp key stats (as at October 2021)

  • There are 4,088 B Corp-certified companies in 77 countries and 153 industries.
  • 150 of these companies are in France and 430 are in the UK.
  • More than 100,000 BIAs have been completed since 2006.
  • Combined revenue of B Corps in the UK is £4.3 billion.
  • Number of employees of B Corps in the UK is 22,000.
  • Between 2017 and 2019, B Corp SMEs’ mean average annual turnover growth in the UK was 24%, compared to an average of 3% for all SMEs.
  • 50% of B Corps have majority women management teams.
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