The new B Corp standards, unveiled in April 2025, mark a pivotal moment. From our perspective at Greenheart, these changes are not just updates – they’re strategic levers for businesses to strengthen their impact and build resilience. Here’s our breakdown of what senior executives and sustainability professionals need to know.
In the last four years, B Lab has undertaken a global effort to reshape and provide more clarity on what it means to be a B Corp. Along the way, it has consulted topic experts, engaged thousands of B Corps and other stakeholders and conducted two public consultations – gathering over 26,000 pieces of feedback in total. The result is a completely reimagined framework.
We’ve been deep diving into the new standards (Version 7) since their publication on 8 April, and attended B Lab Global’s launch webinar on 29 April. In this article, we break down what you need to know, namely: the key changes to the standards (compared to the previous standards, referred to as Version 6) and what they mean for businesses.
Key Changes to B Corp Certification Standards in 2025
For sustainability leaders tasked with understanding these updates, the standards can be found in full on B Lab’s website and are also live on the B Impact platform, where companies can begin their own self-assessment. However, the B Impact platform currently only displays the Year 0 requirements, which apply at a company’s first certification under the new standards (see below for more on requirements beyond Year 0). It is therefore important to consult the full standards PDF to understand which requirements will apply at future recertifications. If you’re after a high-level overview, B Lab just published this helpful summary report.
From mandatory requirements across new Impact Topics to third-party verification, the new B Corp standards mark a fundamental shift from previous versions, and significantly raise the bar for what it means to be a B Corp. Here’s what’s changing and what it means in practice.
1. Mandatory Requirements: Understanding the Biggest B Corp Standard Update
All B Corps will now be required to meet the same mandatory minimum standards across seven Impact Topics. B Lab describes this approach as a way to “raise the floor”, setting clearer expectations for all B Corps to act on the most pressing social and environmental challenges. While the requirements are consistent for all companies, they are still tailored to reflect a company’s operating context through three mechanisms: tailoring to size and sector, tailoring guidance and equity mechanisms.
First, requirements are adapted based on company size, sector and industry, much like in the previous B Impact Assessment (BIA). High-level requirements apply to all companies, but these are broken down into sub-requirements that vary in number and depth depending on company size. For companies classified as Medium to XXL, this means meeting between 59 and 127 sub-requirements across 21 to 26 high-level requirements.
Second, some sub-requirements give options or have tailored guidance. This does not mean companies can choose whether or not to meet them, but rather that they are offered different options for how to meet the requirement, depending on what best suits their context.
Finally, flexibility has been introduced for businesses operating in emerging markets through an equity mechanism. Companies facing one or more operational barriers may be allowed to opt out of 10 to 15 percent of certain requirements.
For senior executives strategising around certification, these mandatory requirements create a clearer framework than the previous flexible scoring approach. We know that many companies valued the scoring system, as it galvanised action, encouraged ongoing improvement at each recertification, and helped them stand out from their peers. However, times have changed since B Corp’s inception, and it is more important than ever that consumers and stakeholders have clarity and trust in what exactly stands behind the ‘B’ stamp. Meeting these requirements not only ensures compliance but also enhances stakeholder trust, which can drive customer loyalty and investor interest.
2. B Corp’s New Structure: Foundation and 7 Key Impact Topics Explained
The new standards begin with Foundation Requirements, which ensure companies meet fundamental eligibility criteria, before they are assessed against Performance Requirements, structured around seven Impact Topics.
In Version 6, eligibility, risk assessment and the legal requirement were already essential, but were perhaps overshadowed by the focus on achieving 80 points in the BIA. Under the new B Corp standards, these elements have been brought together as Foundation Requirements, now forming the essential starting point for any company seeking B Corp certification.
Foundation requirements cover:
- Eligibility requirements: at least 12 months of operations, legally registered business entity, no involvement in ineligible industries, compliant with local laws, commitment to accuracy and transparency.
- Legal requirement: adoption of the B Corp legal requirement in corporate structure or governing documents, depending on local requirements. Commitment to sign the Declaration of Interdependence and commits to the shared collective purpose of the B Corp community.
- Risk Assessment: every B Corp will have to create a risk profile which will establish involvement with any potentially controversial (but not ineligible) industries, and this may require additional due diligence sub-requirements. Based on a company’s risk profile, they may need to meet additional due diligence sub-requirements in the Impact Topics.
Companies must meet these baseline requirements before moving on to the Performance Requirements. We hope this clearer structure will improve the user experience in the review process, by helping companies identify any potential barriers to eligibility early on; for example, through involvement with a controversial client.
After meeting the Foundation Requirements, a company’s social and environmental performance is assessed against Performance Requirements, structured around seven Impact Topics. These topics aim to clarify the actions businesses should take to address the world’s most pressing social and environmental challenges. The finalised list is consistent with the outcomes announced last September, following the second public consultation.
Focusing on these areas strategically can lead to operational efficiencies, risk mitigation and improved employee engagement, all of which contribute to the bottom line.
The seven Impact Topics are:
- Purpose & Stakeholder Governance: ensuring B Corps have a purpose aligned with creating positive social and/or environmental impact, and embed stakeholder governance in decision-making. For companies classed as Large or above, conducting an impact materiality assessment is also required.
- Climate Action: requirements include developing an action plan to reduce emissions and support limiting global warming to 1.5°C, and, for larger companies, third-party-verified GHG emissions disclosures and science-based targets.
- Human Rights: B Corps must assess human rights impacts in their operations and value chain, and take action to prevent and mitigate negative impacts.
- Fair Work: B Corps must provide good-quality jobs, have positive workplace cultures, implement fair wage practices and incorporate worker feedback in decision-making.
- Environmental Stewardship & Circularity: companies must assess their environmental impacts and take meaningful action to minimise them across their operations and value chain.
- Justice, Equity, Diversity & Inclusion: B Corps must foster inclusive and diverse workplaces and contribute meaningfully to just and equitable communities.
- Government Affairs & Collective Action: companies should engage in collective efforts to drive systemic change, advocate for policies that create positive social and environmental outcomes and, for the largest companies, publicly share their country-by-country tax reports.
Image Source https://www.bcorporation.net/en-us/standards/performance-requirements
3. Impact Business Models (IBMs) and The 2025 B Corp Standards: What You Need to Know
Impact Business Models (IBMs) are ways in which a business is intentionally designed to create a specific positive outcome for a stakeholder group or the environment. Under Version 6, these appeared as optional sections of the B Impact Assessment across the five impact areas: governance, workers, community, environment and customers. Companies could earn additional points where these models were in place. IBMs have not been included in the new standards, for now.
Historically, IBMs have been a distinctive feature of B Corp and played an important role in recognising companies for impact by design. In fact, according to data shared by B Lab during the second consultation in 2024, 86% of B Corps perform on Impact Business Model or Industry Addenda, and two-thirds of certified companies relied on IBM points to reach the 80-point threshold.
The decision to exclude IBMs from the new standards was a considered one. Their inclusion was thoroughly explored during the development of the new B standards, up until the last consultation, but their structure presented significant complexities and wasn’t compatible with the third-party assurance mechanisms now required to meet the EU Empowering Consumers Directive. To avoid further delaying the roll-out of the new standards, B Lab made the decision to exclude IBMs from this first publication. However, they have reaffirmed that IBMs remain central to their Theory of Change and will be subject to further consultation and redesign to determine their future role within and beyond certification.
IBMs awarded under previous certifications will continue to be displayed in the B Corp Directory as part of verified Version 6 scores. For example, our client Riverford Organic Farmers currently holds two IBMs: ‘Worker Owned’, reflecting its employee ownership model, and ‘Toxin Reduction’, recognising its 100%-organic product range.
The non-inclusion of IBMs marks a significant change from earlier drafts and consultation outcomes. But this is understandable in the context of aligning with international best practice and the urgency of releasing the new standards. At Greenheart, we will be engaging actively in the upcoming IBM consultation, as we believe IBMs have a vital role to play in the future of B Corp certification and in encouraging all businesses to embed positive impact at the heart of their business models. We warmly encourage you to sign up here to participate in the IBM development process too. And in the meantime, prioritising impact-driven models can still provide a competitive edge and strengthen your sustainability narrative.
4. B Corp Standards 2025: Built-in Continuous Improvement Explained
Continuous improvement has always been a core part of the B Corp ethos, demonstrated by B Lab’s regular review of the standards and by many B Corps striving to increase their score each recertification cycle. But until now, there was no formal mechanism requiring companies to improve.
This has now changed. Under the new standards, continuous improvement is built in: companies must meet Year 0 requirements at their first certification, followed by additional requirements in Year 3 and Year 5. For example, in the Human Rights Impact Topic, all companies with over 50 employees or £10 million in revenue must identify their salient human rights issues by Year 0 (HR2.1). By Year 3, they must have a strategy to address those issues and publicly disclose them (HR2.2 and HR2.3). And by Year 5, they must demonstrate progress and evaluate the effectiveness of their strategy (HR2.4 and HR2.5).
B Lab has not yet confirmed if this will change the current three-year recertification cycle – although we assume so. Further detail is expected when B Lab publishes more information about the assurance process. For more information about how continuous improvement is built into the new B Corp standards, you can read this article from B Lab.
Source: B Lab.
5. B Corp Certification and EU Regulations: Third-Party Verification in 2025
The new B Corp standards will be verified by an independent third party, separate from B Lab. This change is designed to ensure that the new standards comply with the EU Empowering Consumers Directive (Directive 825/2024/EU), which comes into effect in September 2026, and to align with international best practices for certifications schemes.
The Directive aims to help consumers make informed choices by requiring companies to provide clear, substantiated information about their products. It prohibits generic environmental claims and unreliable sustainability labels, and sets a legal framework for what constitutes a recognised sustainability certification in the EU, including the need for independent third-party verification. The new B Corp standards have been designed to meet those requirements.
For businesses with B2C operations in the EU, it’s vital to address the potential impact of the Directive 825/2024/EU on your B Corp certification. Here’s what you need to know.
Affected companies should contact their local B Lab by 1 May 2025, so that B Lab can support them in planning a recertification pathway, as B Corps falling under the scope of the Directive will need to recertify under the new standards before September 2026. In addition, B Lab recommends that such companies consult legal advisors on how best to communicate their B Corp status after September 2026.
If you need support assessing your company’s performance and identifying, as well as implementing, the improvements needed to meet the new standards, we would be happy to help. We have already delivered a number of gap analyses against the evolving framework and are now actively supporting companies against the finalised new standards. We can also help you, in conjunction with your legal advisor, understand the practical implications of the EU directive in the context of your B Corp certification/branding and articulate them and the options to senior stakeholders in your business.
This added layer of assurance boosts credibility and can be leveraged in your marketing and communications, building trust with discerning consumers.
Impact of 2025 B Corp Standards on Your Business: Key Takeaways
The new standards mark a transformational change, and this has implications for aspiring and certified B Corps alike. Here are some key takeaways we’d like to share with you.
- Elevated B Corp Standards 2025: Changes and New Requirements for Certification
The new standards aim to offer a clear framework for action, built around seven Impact Topics. These represent the key areas where all businesses, globally, are expected to take action.
Many of the new requirements build on familiar themes from Version 6, with a shift towards making certain practices mandatory. For example, the new standards put greater emphasis on assessing impacts and setting strategies to reduce those. Companies classified as Large and above will now be required to conduct a materiality assessment, including issues not already covered in the standards.
Some areas will feel new, or significantly strengthened – and that’s a positive step. For example, Human Rights, now a standalone Impact Topic, requires companies to assess the salient human rights issues in their operations and value chain, and take action to prevent and mitigate negative impacts. Similarly, while greenhouse gas accounting was included in Version 6, the new standards now require companies to develop a climate action plan or transition plan, depending on their size.
It may also seem that some topics, previously covered in depth, are less visible or even absent from Version 7. For example, charitable partnerships and employee volunteering don’t explicitly feature under any requirement. This doesn’t mean they are discouraged. On the contrary, companies may choose to pursue these activities as part of their strategy to engage underrepresented stakeholders or to address material issues. It simply means that these are not areas where all B Corps are expected to meet a universal minimum requirement.
- B Corp Certification 2025 Timeline: Why You Should Start Preparing Now
The release of the new standards also brings timeline implications for both aspiring and certified B Corps. According to B Lab’s latest communications:
- Aspiring B Corps have until the end of 2025 to submit under the current standards if they are SMEs. Large enterprises or multinationals will need to certify on the new standards.
- B Corps with a recertification date on or before 31 December 2025 must submit their B Impact Assessment on the current standards (Version 6) by 30 June 2025.
- B Corps with recertification dates from 1 January to 31 December 2026 will recertify on the new standards, with a 12-month extension to their current recertification date.
- B Corps with a recertification date in 2027 will recertify on the new standards according to their normal timeline.
A different timeline applies for companies selling products in the EU. These should aim to certify under the new standards by September 2026 to comply with the EU Empowering Consumers Directive.
It’s worth noting that B Lab has shared limited detail so far on transition timelines. Even in the launch webinar on 29 April, it only confirmed that further information will be shared in due course. As of now, the exact date from which companies will be able to submit under the new standards has not been confirmed.
We recognise the need for clear guidance during this transition, and Greenheart is here to help you confidently navigate these updates. The direction is clear: all companies should now begin assessing their gaps against the new standards and start planning to bridge them.
Final Thoughts on the 2025 B Corp Standards and How Greenheart Can Help
The release of the new B Corp standards marks a major moment for the movement. The bar has been significantly raised, and the standards provide much-needed clarity on the actions businesses should take to demonstrate strong social and environmental performance.
While some questions remain, particularly around the B Impact platform and transition timelines, one thing is clear: now is the time to prepare. Whether you’re approaching recertification or considering certification for the first time, it is essential to start engaging with the new framework, identify your gaps and understand what it will take to close them -– and we’re here to help. Our gap analysis and implementation support are designed to streamline your transition, minimise disruption, and maximise the commercial benefits of B Corp certification.
You can watch our recent webinar, including the key challenges we anticipate for companies and our practical advice on how to prepare here:
Stay Updated and Get Support: Your Next Steps with B Corp and Greenheart
Sign up to our newsletter to get regular insights straight to your inbox
Schedule a free, no-obligation consultation with our B Corp experts to discuss your specific needs here, or
Check out our website to see how we help companies prepare for B Corp Certification
