Dozens of Companies at Risk of Losing B Corp Status After Standards Overhaul

The B Corp certification, a coveted ethical status for companies, has undergone its biggest overhaul in 19 years. B Lab, the organisation behind the certification, has raised the standards required to qualify, putting dozens of companies at risk of losing their status.

Previously, companies could make up for poor performance in one area by scoring highly in another. However, the new system requires companies to meet 'non-negotiable' standards in every one out of seven categories, with attainment verified by a third-party audit.

The overhaul has been partly motivated by changes to EU law that require companies boasting of any ethical standard, including B Corp status, to be rubber-stamped by an external organisation. Sources familiar with the process said that some of the 10,000 companies that have the status will need to improve ethical standards to recertify, which they must do every three years.

Analysis by the Guardian of the publicly available B Corp database suggests hundreds are already at, or close to, the 80-point threshold required, even under the old, less onerous system. Of more than 2,000 UK B Corps, more than 60 score exactly 80 points, including the Kent-based digital marketing agency Sleeping Giant Media and VoucherCodes, a website that provides details of discount offers from leading brands.

Larger companies will face more extensive requirements under the new standard, including declaring their tax policies and setting science-based emissions targets across all areas of the business. One source said the changes could even affect companies that now score highly, such as the private bank Coutts, which has a score of 107.6 and does not have to recertify until 2028.

B Lab UK said: 'Our goal is not for every business to become a B Corp, but for every business to behave like one.'