While we’re still awaiting the final version of the new B Corp standards, we now know enough to understand how they’ll be structured and the requirements they’ll likely introduce. These new standards mark an exciting shift in the B Corp movement. So, wherever your organisation stands today, if becoming/remaining a B Corp is part of your ambitions beyond 2026, this is a time of positive transition.
We recently hosted a webinar to provide an overview of where we are in the process of evolution of the standards, what they will include, and most importantly, our advice on how to prepare. You can watch the webinar recording below, but for those who prefer reading, we’ve summarised the key points and reflections in this blog.
What is changing in the new B Corp standards?
We have written previously about why the standards are changing and shared a summary of the latest round of public consultation. In our recent webinar, we outlined what these changes mean and how you can start to prepare for the transition.
Of course, we encourage you to watch the full recording, as it’s packed with important information, but here are the key highlights.
1. A Shift from Points to Mandatory Requirements
The current flexible, points-based system (minimum 80 points) will be replaced with mandatory performance requirements across seven Impact Topics. This change ensures all B Corps will meet a baseline standard in each area – which means the points system we’re all used to will soon be a thing of the past. Instead, companies will need to demonstrate that they meet, or even exceed, every individual requirement.
2. Introduction of Foundation Requirements
The first set of requirements is the ‘Foundation Requirements’. These allow in-depth scoping and risk assessment to be carried out early on in the process – a significant positive, in our view. These requirements will include:
- Eligibility: Entity qualifications for pursuing certification, including business type and time in operation.
- Legal Requirement: Formal stakeholder governance in governing documents, in accordance with B Lab’s rules applicable to the company’s legal form and jurisdiction.
- Risk Assessment: Review of high-risk operations, industries or any practices with potential negative impact addressed under B Lab’s Controversial Issues standards.
- Impact Business Models (IBMs): While optional, these provide recognition for businesses with built-in positive impacts – by providing flexibility in meeting the performance requirements, as well as IBM-specific public recognition badges.
3. Seven Impact Topics
Replacing the current 5 Impact areas that represent key stakeholders (Governance, Workers, Community, Environment, and Customers), the new standards will introduce ‘Performance Requirements’ across seven Impact Topics:
- Purpose & Stakeholder Governance: will cover mission statement, stakeholder and impact governance, grievance procedures and responsible communications.
- Fair Work: merging the ‘Workplace Culture’ and ‘Fair Wages’ topics of the last draft, will include worker representation, culture measurement and improvement, fair wages, wage equity and labour rights.
- Justice, Equity, Diversity & Inclusion (JEDI): will include DEI data monitoring as well as various JEDI actions from inclusive hiring, ERGs, inclusive communications or JEDI-relevant IBMs.
- Human Rights: will focus on human rights due diligence and remediation including supply chain collaboration on traceability and fair wages.
- Climate Action: will focus on monitoring Greenhouse Gas (GHG) emissions, setting science-based targets for emissions reduction and implementing a robust climate transition plan.
- Environmental Stewardship: will require companies to assess and mitigate their actual and potential negative environmental impacts, as well as implement circularity principles and collaborate with suppliers to mitigate impacts.
- Government Affairs & Collective Action: will cover responsible tax practices and lobbying, as well as collective action to increase positive social and environmental impact within policy or the industry.
4. Flexibility and Tailoring
Much like the current B Impact Assessment, which has different ‘tracks’ for companies of varying sizes and industries, the new standards will also allow for flexibility and tailoring in several ways, including:
- Business Size and Sector: Differentiated requirements for companies depending on their sector and size, as defined by their FTE count as well as revenue.
- Optionality: Businesses need to meet a number of actions from a long list (e.g. JEDI2 requires to fulfil two to seven initiatives out of a list of twenty-three), fostering adaptability and allowing each company to tailor their action plan to suit their own company context, strategy and ambitions.
- Equity Mechanisms: companies located in countries that face operational barriers could justify non compliance with 5% to 15% of total sub-requirements.
This is a high-level summary but our webinar delves into each of these in detail and addresses a wide range of questions from participants.
Our reflections on the new standards
We’ve been working with companies at every stage of their B Corp journeys for years, giving us deep insight into both the strengths and limitations of the B Corp standards. With that perspective, we’ll share a few reflections.
1. Moving from a flexible score system to a minimum requirement approach is a fundamental change.
We warmly welcome this change, as it will provide companies with clarity to focus on the most critical social and environmental issues and impactful actions. We acknowledge that the transition may be challenging for some companies – such as those excelling in one area but not yet prioritising another, or those whose performance was boosted by Impact Business Models under the current standards. We also recognise that many teams have relied on the points system for benchmarking and tracking improvements. Nevertheless, we view this evolution as a positive step, as it will clarify what it means to be a B Corp and enhance confidence among customers, investors, and the general public that all B Corps meet a universal baseline of social and environmental performance.
2. The new standards may not capture everything, and it’s ok
We noticed that certain elements of the current B Impact Assessment – such as Health and Safety, Training Monitoring, or Volunteering – appear to be absent from the draft new standards. Initially, B Lab suggested that these would be captured under Complementary Impact Topics; however, these were removed following feedback from the second public consultation. We interpret this as a shift towards focusing on core Impact Topics and evaluating companies’ performance against material issues beyond local regulations or traditional CSR initiatives. Once again, we welcome this approach, as B Corp’s aim is to raise the bar for what it means to be a business with high social and environmental performance.
3. Expect better transparency
A common challenge many companies face with the current standards is the lack of transparency and clarity around what is required to comply with a question and the type of evidence B Lab will accept as proof of compliance. If the final standards resemble the latest draft, they will offer a significant level of detail regarding compliance criteria, guidance for meeting them, resources for implementation, and indications of interoperability or equivalencies with other standards and frameworks. We see this as a major positive, not least because it will allow advisors like Greenheart to save time interpreting the standards and instead focus on supporting our clients to achieve real impact improvements in their operations and business models.
4. Materiality is key!
The new B Corp standards establish seven impact topics that are highly material to any business aspiring to achieve high social and environmental performance. But materiality is also integrated throughout the standards – for instance, by requiring all companies to assess and address their actual and potential human rights or environmental impacts. It is also encouraging to see that engaging stakeholders in a materiality assessment has become a requirement for larger businesses, aligning with other standards (e.g. CSRD) and best practices in the industry.
5. Impact Business Models (IBMs) will be a greater differentiator
IBMs have always been central to the B Corp movement, and rightly so. They encourage and reward businesses not only to operate more impactfully in their day-to-day activities but also to fundamentally build business models centered on creating positive impact. As performance levels captured in the performance requirements may become more uniform, we expect – and hope – that IBMs will gain even greater appeal as a differentiator. We warmly welcome this, as it will inspire even more businesses to deeply rethink and transform their business models.
How to prepare for the transition
1. Know your timeline
If you plan to submit your first B Impact Assessment or are due to submit for recertification before 31 December 2025, you can continue working with the current standards. However, if your submission date falls on or after 1 January 2026, it is likely you will need to comply with the new standards. B Lab has indicated that a small cohort of B Corps may begin engaging with the new standards in 2025, though further details have not yet been provided. It is also possible that there could be further delays in finalising the standards, which might push this timeline. However, we strongly advise against relying on this and instead encourage any company aiming to submit from 2026 onwards to begin engaging with the draft standards now. Similarly, if you are a large business due to recertify in 2025, you may want to familiarise yourself with the new standards in advance, as transitioning will eventually be required, and the level of change needed to comply with the new standards may be significant and require sufficient preparation time.
2. Take the time to delve into the draft standards
While we are well-versed in the details of the new standards and available to advise and assist, there is no substitute for enhancing your own knowledge and understanding. Set aside time to familiarise yourself with the latest draft of the standards and the second consultation summary report. Please note that the draft standards website has not been updated to reflect the outcomes of the second consultation (e.g. Fair Work is still listed as Fair Wages + Work Culture), so be sure to consult and cross-reference both sources during your review.
3. Get connected
A wealth of information and advice is already being shared, and more will be published in the coming months. Be sure to follow B Lab’s updates on your preferred channels (e.g. newsletter, LinkedIn) – or Greenheart’s, of course!
4. Conduct a gap analysis
At Louder Than Words, the B Corp Festival, held in September, Judy Rodrigues, the Director of Standards at B Lab Global, recommended on stage that businesses should begin conducting a gap analysis – we completely agree! In fact, we’ve already started delivering such Gap Analyses for some of our clients. You can surely do this on your own, but if you need a helping hand, we’ve developed a one-stop 4-8 weeks process (depending on company size) for you to understand the level of work required to comply with the new standards, any major obstacles that might be standing in your way and where and how to prioritise the action required. If you think that would help, don’t hesitate to contact me on lucie@greenheartbusiness.com.
5. Take the first steps – however small – today
If you aim to become or remain a B Corp, your future self will thank you for starting to get up to speed and take action now. Begin exploring what the new standards mean for your business sooner rather than later – and remember there’s plenty of support available if you need it!
What next?
You can watch the recording of our webinar, explore our B Corp Certification services or stay up to date on future developments by signing up to our newsletter.
Finally, do reach out here out for a chat about how the updates to B Corp standards will affect your business
