Should we be concerned about B Lab’s new B Corp standards? A UK B Corp’s perspective
B Corp standards are changing. Announced earlier this year, the new standards, applicable from 2026, will fundamentally change what it means to be a B Corp.
The new standards cover seven mandatory areas, including Climate, Human Rights and Purpose. It’s still not clear exactly how these standards will be measured, but the daunting reality is it looks like being tougher than ever to become (or remain) a B Corp. Should we be concerned?
This is a question best answered by B Lab of course. Our take on it is that continuous improvement has always been an underlying principle of B Corp standards and there’s no reason that shouldn’t apply to the certification process too.
Why are B Corp certification standards changing?
More specifically, as the B Corp movement has grown, it’s attracted more scrutiny, not all of it supportive. It’s widely accepted that there’s a fundamental flaw at the heart of the current process: The target “pass” rate of 80 points means you can be outstanding in one of the five current pillars but lousy in another. This leaves the certification open to the criticism that larger corporates can, for example, mask a poor environmental record by having class-leading people strategies.
The new approach will smooth out these anomalies, making the process more transparent, which can only be a good thing.
Is B Corp certification worth the effort?
This is a question we’re already asked on a regular basis! Our response is always a resounding Yes, but the effort involved in demonstrating compliance is obviously a barrier to entry. The new standards mean this question is now being asked more widely by B Corps, as well as those considering certifying.
There have been a few high-profile departures from the B Corp movement, too often announced with a social media fanfare. More will likely follow. For us this decision warrants only a quick conversation. More than anything, the principles of B Corp underpin the way we do business. Doing our best by people and planet is fundamentally how we run Sales: Untangled. The new B Corp standards will place demands on how we demonstrate this, but won’t challenge our underlying values.
It’s not just a philosophical thing, though. Since becoming a B Corp 5 years ago our client base has shifted. A higher proportion of new clients are either B Corps already, or thinking of becoming one. Sales is a dirty word in some quarters and that makes it something people shy away from. We’re on a mission to help improve the reputation of selling and we hope our B Corp certification helps us stand out in the sometimes murky world of sales.
Is ESG in retreat?
This is another aspect of our decision about remaining a B Corp. Sustainable business isn’t the darling of investors or politicians that it was just a couple of years ago. Obviously events in the US play large in this, but the mood has shifted across Europe too.
ESG isn’t in retreat, but it’s a time to regroup and maybe grow up a little. This is still the beginning of the sustainable business revolution. So much of what will eventually become commonplace might not be invented, or has yet to be proven.
The great electric vehicle debate is just one example of this. Yes, cleaner air in our cities is desirable. But nobody has yet created a model where someone living in a flat and driving an ageing petrol car can realistically upgrade to an EV. Local authorities are penalising people like this through imposition of low emission zones and it’s polarising the debate. Sustainable business and ESG needs to work for all in our society and that principle is at the heart of the new B Corp standards.
What are our concerns about the new B Corp standards right now?
The single biggest concern for many B Corps right now is that the new standards are not clear. If you’ve seen the current B Corp certification (the BIA) you’ll know that how you accumulate your 80 points is very transparent. Each question has tiers and it’s clear what points you’ll gain for each available answer.
This granularity doesn’t exist for the new standards, creating an obvious concern. How do you hit a target if you don’t know where it is? In due course this will all be resolved, but for those (ourselves included) who are due to recertify in coming months it’s a cause of concern.
The second worry is the potential on-cost of providing all the relevant certifications, a challenge for large and small organisations alike. In response to external criticism it’s important that sustainable businesses can evidence their claims. Greenwashing is a live problem. On the other hand, if proving your environmental credentials becomes so costly or onerous that it puts off organisations with good intent, then the battle has been lost.
What next?
It’s welcome – and you might say, inevitable – that B Lab is updating its certification criteria. We never saw becoming a B Corp as a short term or tactical thing: We’re very much in it for the long term. So this moment feels like a bump in the road. The lack of clarity over what exactly we’re expected to do feels a bit uncomfortable, but our assumption is that we’ll find a way through it.
Already, other B Corps are stepping up to offer free support, webinars and learning tools. It’s another reminder why it’s such a vibrant, supportive community, and one worth fighting to remain a part of.
Thinking about becoming a BCorp? Feel free to contact us for a chat. We are always happy to share our experiences and steer you towards the right people.