B Lab, a global non-profit network, has introduced a revised set of standards and a new certification process that companies must follow to obtain/maintain B Corp certification, which replaces the existing procedures.
The new 2025 standards have been developed to stay current with the evolving environmental, social, and governance challenges and the changing legal, regulatory, and geopolitical landscape.
Our Corporate Lawyers examine the new standards and explain how businesses can prepare for the transition.
What is B Lab and B Corp status?
The B Lab network creates tools and resources to support sustainable and ethical business, a key part of its work to certify companies that commit to considering the impact of business decisions on all stakeholders with an aspiration to do no harm.
Companies that acquire this certification are called B Corporations or B Corps.
Acquiring B Corp Certification/Recertification
To acquire or renew B Corp certification under the 2025 standards, a company should:
- Meet the foundation requirements (detailed below); and
- Meet all the applicable impact topic requirements (ITR) for year 0 (detailed below) and continue to meet ITR sub-requirements for years 3 and 5
Foundation requirements
Before progressing to the ITR, companies must meet the foundation requirements. These include:
- Meeting the eligibility criteria- for example, the company must have been legally incorporated and have been operational for at least a year, must comply with local and national laws and regulations, must be transparent about its performance etc;
- Adopting the B Corp legal requirements (ensuring that stakeholders are considered in decision-making and positively impact society and the environment through business operations) and committing to the B Corp collective purpose (this involves companies based in the UK amending their articles as required and signing the Declaration of Interdependence); and
- Conducting a risk assessment that determines which ITR sub-requirements the company must meet.
Impact Topic Requirements
The new standards have introduced ITRs. These cover seven topics being:
- purpose and stakeholder governance;
- fair work;
- justice, equity, diversity and inclusion;
- human rights;
- climate action;
- environmental stewardship and circularity; and
- government affairs and collective action.
Each company will have to meet certain sub-requirements in relation to the above topics, depending on the outcome of their risk assessment. This will be based on a company's size, sector, industry and geography.
These sub requirements are triggered at different stages throughout the five-year certification period (year 0, year 3 and year 5) and ensure companies continue to improve throughout and after this timeframe.
Although the new standards have introduced an equity mechanism that enables companies to opt out of 10% to 15% of the ITR sub-requirements, depending on their location, companies based in the UK must meet all of the ITR sub-requirements.
Best practices to meet the new standards
The following best practices will ensure that a company is well placed to meet the new standards that apply to them:
- Assign the necessary resources and budget to support progress toward B Corp certification;
- Gain commitment and support from senior leadership;
- Develop and roll out a communications strategy;
- Assess and evaluate current policies and procedures;
- Review and refine governance and board practices;
- Provide internal training and raise awareness;
- Identify and mitigate risks of greenwashing; and
- Monitor and manage risks related to mergers and acquisitions.
Key dates for companies transitioning to 2025 standards
31 December 2025
Companies wishing to certify as a B Corp for the first time under the existing B Corp certification process must submit their B Impact Assessment by 31 December 2025.
January 2026
B Lab plans to:
- Begin accepting applications under the new 2025 standards starting in 2026, companies scheduled for recertification in 2026 will be granted a 12-month extension to support a smooth transition; and
- Release updated guidance in relation to the new certification model.
26 September 2026
The Empowering Consumers for the Green Transition Directive ((EU) 2024/825) (ECGTD) takes effect which aims to promote sustainable consumption choices by consumers.
Companies selling products in the EU are encouraged to complete recertification under the new standards by this date as the new standards have been prepared so that the revised certification process is compliant with the ECGTD (i.e. certification decisions on the 2025 standards will be made by one or more third-party assurance providers as opposed to by a partner organisation as is the case currently).
Contact Our Corporate Lawyers
If your business is considering B Corp certification or needs guidance on transitioning to the 2025 standards, please get in touch with our Corporate Law team for tailored advice.
0161 941 4000
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Lauren Brayshaw
Solicitor Apprentice
Lauren joined Myerson in 2023 and is currently undertaking the six-year Solicitor Degree Apprenticeship. She has completed seats in Corporate and Commercial Property and is currently in the Commercial Litigation team. Lauren enjoys gaining practical experience across different areas while developing her legal knowledge and skills.
About Lauren Brayshaw