This month is B Corp Month and we celebrate a trend reshaping the global economy toward a more sustainable and socially responsible future. At the forefront of this movement are B Corporations (B Corps), certified for-profit companies proving that business can be a force for good.
These businesses meet high standards of verified social and environmental performance, public transparency, and accountability to balance profit and purpose. As we dive into the essence of B Corp certification, let's explore how it's beneficial and a differentiator in today's market.
B Corp certification is more than just a label; it's a commitment to improving outcomes for key stakeholders: employees, investors, the community, and the environment. B Corp Certification is a third-party standard that requires businesses to meet performance standards that go beyond the bottom line and to report performance publicly.
We believe B Corp certification is a valuable component for many businesses that provides many benefits. And we are not alone. Brand-name companies including Patagonia, Athleta, L’Occitane, Danone, Nestle Health Science, and Grove have all achieved B Corp Certification. In our home state of Ohio, we share the designation with Jeni’s Splendid Ice Cream, MVP Dairy, Overdrive, and our client MadTree Brewing.
This certification is not easily attained and requires a comprehensive assessment that evaluates a company's impact on its workers, customers, community, and environment. For those looking to understand the nuts and bolts of this process, our previous blog, “Becoming a Certified B Corporation” provides an in-depth look at what it means to be part of this community of over 8,000 businesses worldwide.
Transparency is a cornerstone of the B Corp certification, which requires extensive record-keeping and reporting every three years. Furthermore, maintaining B Corp certification provides public access to environmental and social impact data that a business is required to track regularly.
This transparency fosters trust among stakeholders and ensures that a company meets B Corp certification standards. This trust is critical in today's market, where investors, consumers, and employees are more informed and discerning about the businesses they support.
Similarly, a company's commitment to ethical practices and sustainability is increasingly important to today's workforce. A recent study by IBM found that 70% of workers want companies to have sustainability programs, and 69% are more likely to accept a job with an environmentally conscious business.
B Corp certification is a powerful tool to publicly show that environmental and social consciousness are a core part of the business. This helps attract and retain talent who want their work to impact the world positively.
Investors are progressively focusing on sustainability and social governance criteria to make their investment decisions. As of 2023, 89% of investors consider environmental and social criteria in their investments, up from 84% in 2022. This trend is expected to continue, and sustainability will further grow as an important factor in investing decisions.
Another important consideration is that B Corp certification shows investors that the business values both profits and positive impact. This makes investors aware of the dual importance before they invest, ensuring like-minded investors do not value near-term profits above all else.
By prioritizing environmental and social governance, B Corps often see long-term financial savings through reduced environmental risks and enhanced operational efficiencies. Additionally, B Corps have access to community data from similar B Corp companies that can be used to identify cost-efficient sustainability strategies. Combined, this provides a competitive advantage over non-B Corp competitors.
While the benefits are clear, the path to certification will take some effort:
Embarking on the B Corp certification journey requires a deep dive into the internal mechanisms of a company. This includes documenting existing internal processes and demands a level of transparency and introspection that few other certifications require.
This requires engagement from all employees and strong record-keeping. Furthermore, it’s not a one-time endeavor but an ongoing process that requires continual monitoring as processes develop.
A core component of being a B Corp is being able to transparently prove that you are achieving the environmental and social milestones you claim. In most cases, this relies on having data to back up your claims. Your business needs to track, maintain, and report on relevant data, ranging from categories like greenhouse gas emissions to charitable community giving.
Regardless, there is a lot of data to keep track of, and having the systems in place to gather and maintain the data can be challenging — particularly when you’re just starting. Using software solutions or knowledgeable consultants is a great starting point.
The process is time-intensive and ongoing. Not only does information need to be tracked year-over-year and reported on every three years, but the initial certification process typically takes one year to complete. This means that B Corp certification requires an ongoing commitment and oversight to ensure programs stay on track. Failure to keep up with internal processes may result in missed milestones in future recertification periods.
There is so much alignment between B Corp, ESG, and the alphabet soup of reporting initiatives it makes perfect sense for businesses to consider B Corp certification. That’s one reason we are celebrating B Corp Month and turning up the volume — achieving B Corp certification is aligned with other sustainability efforts.
Like any sustainability or ESG reporting initiative, gathering the data and creating policies aligning with the certification requirements are rigorous. Yet, if a company has started down the path to reporting emissions or is in a value chain that is regulated to do so, you may already be on your way to satisfying many B Corporation requirements.
In an increasingly sustainability-conscious marketplace, the value of being a B Corp is clear. It's a testament to a business's commitment to not just being the best in the world but the best for the world while maintaining profits.
Emerald Built Environments is proud to be part of this movement, leveraging our expertise to help businesses navigate the journey to B Corp certification. As we celebrate B Corp Month, let us remember the power of our collective action to bring about positive change. Learn how Emerald Built Environments can help you begin the journey to B Corp certification, balancing your impacts and profits.