The New B Corp Standards for 2025 Explained

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.

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.

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.