The B Corp certification is undergoing significant changes in 2025, aimed at making the process more rigorous and closely aligned with the challenges posed by the climate crisis and growing social inequality. These new regulations will impact how companies meet B Corp standards, adding a more structured framework for assessing environmental, social, and governance (ESG) policies. Here's what you need to know about the upcoming changes and their implications for businesses seeking or maintaining B Corp certification.
Refresher: What is B Corp Certification
B Lab, the non-profit behind B Corp defines a B Corp-certified company as: a business that meets the highest standards of verified social and environmental performance, public transparency, and legal accountability to balance profit and purpose. Certification carries an annual fee between £2,000 and £50,000 based on revenue and each B Corp must recertify every three years, with around 8,500 companies across 95 countries currently carrying B Corp status. Currently, B Corp certification requires an Impact Score (a denominator of overall ESG performance) of 80.
Why is B Corp Changing the Regulations?
The current B Corp certification model allows companies to choose from various ESG policies to achieve a composite score of 80 points. This flexibility enables companies to perform well in one area while scoring low in others. However, under the proposed changes, companies will need to meet minimum requirements across several defined "Impact Topics." These topics are designed to ensure that businesses contribute to an inclusive, equitable, and regenerative economic system.
Key Changes
Under the proposed changes, companies would need minimum marks across defined “Impact Topics” including:
A clear and stated purpose of creating “an inclusive, equitable and regenerative” economic system
Two-way communication with worker
Fair wages
Justice, diversity, equity and inclusion policies
Focus on human rights
Key activities and targets around climate action
Circular business practices and environmental stewardship
Collective action on ESG issues with other companies
A commitment to continuous improvement on other material issues for their business.
Other changes include: Closer alignment with other ESG reporting standards, such as the Science Based Targets initiative, which administers science-based targets for emissions reductions. The new regulations also add a clause that bans the certification of companies in the following industries an companies that generate more than 5% of their revenue from servicing clients in fossil fuels - a clause which already exists but is being strengthened, and was exemplified in the stripping of B Corp status of the media agency Havas Group. B Lab announced that all Havas agencies will no longer be eligible for future B Corp certification after an investigation found that a sister company worked with Shell.
These changes would take effect in 2025 and B Lab Global was seeking feedback on them until March 26 of 2024, and will announce further elaborations on these new standards during B Corp month.
B Lab’s Consultation Process and Timeline
The process of revising B Corp standards began in September 2022, when B Lab initiated a preliminary consultation that gathered feedback from over 1,000 individuals. A second round of consultation occurred in January 2024, and companies and stakeholders were allowed to submit their input until March 26, 2024. The feedback received will be incorporated into the final version of the standards, which are expected to be revealed during B Corp Month in 2025.
Changes to Requirements for Certification
Certification involves two key pillars: Foundation, and Performance requirements. The new draft standards makes the most changes to the performance requirements. The Performance requirements define actual performance needed to manage and continuously improve upon to achieve and maintain B Corp Certification. Previously this just meant an overall impact score of 80, which meant companies could in theory be lax on some key topics but score well enough on others to achieve an 80. The new draft standards add in layering to Performance requirements as follows:
Impact Topic | Expectation |
Purpose & Stakeholder Governance (PSG) | B Corps must have a clear, inclusive, and regenerative economic purpose. |
Workplace Culture (WC) | Positive workplace culture with active dialogue between workers and management. |
Fair Wages (FW) | Workers should earn a living wage, with wage equality across the workforce. |
Justice, Equity, Diversity & Inclusion (JEDI) | Inclusive, diverse work environments and contributions to just and equitable communities. |
Human Rights (HR) | Companies must treat people with dignity and respect their human rights. |
Climate Action (CA) | B Corps must act according to science to combat climate change. |
Environmental Stewardship and Circularity (ESC) | Environmental sustainability and circular practices across operations and value chains. |
Government Affairs and Collective Action (GACA) | Engagement in collective actions that foster ESG improvements and responsible public policies. |
Complementary Impact Topics (CIT) | Comprehensive measurement and improvement of a broader set of impacts beyond core topics. |
For more detail on the exact changes within each impact topic read more here.
Tailoring Standards to Company Context
The latest draft standards have taken significant steps to tailor requirements to a company's specific context, incorporating feedback regarding size, sector, location, and industry.
All sub-requirements are now differentiated by size and sector, with the rigor of expectations increasing as a company grows. For instance, within the Environmental Stewardship & Circularity category, smaller service sector companies with a minor footprint face fewer operational requirements since their main impact arises from the types of clients and projects they engage with. Notably, a new sub-requirement encourages these companies to consider client and project engagement, further emphasising their role in sustainable practices. Conversely, in the Human Rights category, smaller companies are expected to factor human rights into their procurement processes, while larger enterprises must establish comprehensive supplier engagement and monitoring systems.
B Corp has also revised its size categories to more accurately reflect a company's reality. This adjustment recognizes that outsourcing can distort the number of employees without affecting a company's revenue or profits. Companies will now be classified in the size category corresponding to either their worker count or revenue, whichever is higher.
The draft standards also impose stricter sub-requirements for large and multinational enterprises, reflecting their significant social and environmental impacts. For example, 'extra-large' and 'extra-extra-large' companies are expected to develop a roadmap tracing the origins and potential impacts of high-risk raw materials and publicly disclose any gender wage gaps.
Finally, B Corp recognises g that companies operate in diverse cultural contexts, the draft standards include location-specific requirements. For instance, if a company operates in a region where referencing 'human rights' could jeopardise employee safety, they may adopt alternative terminology or focus on widely accepted rights, such as labour rights. Additionally, in response to challenges faced by companies in emerging markets, the new draft standards introduce accommodations based on geographical and historical inequalities, aiming to create a more equitable certification process.
Incentives for Continuous Improvement
To encourage ongoing progress, the latest draft standards incorporate mandatory improvement expectations within Complementary Impact Topics. Companies must set specific improvement goals and demonstrate progress to recertify. Furthermore, after meeting initial certification requirements, businesses will be encouraged to advance against Recertification Performance Requirements. While the standards do not mandate continuous improvement for certification, they promote voluntary 'Above and Beyond' measures, allowing companies to strive for excellence in their sustainability efforts without compromising the attainability of the certification.
Next steps for 2025
The changes to B Corp certification in 2025 reflect a growing need for companies to step up their commitments to social and environmental responsibility. The new framework offers clearer guidance, more structured requirements, and alignment with global standards, ensuring that businesses certified as B Corps truly act as forces for good in the world. These changes, though rigorous, aim to provide a pathway for companies to meet the challenges posed by climate change, inequality, and the need for systemic transformation. As we approach 2025, businesses aiming for B Corp certification should prepare by assessing their operations against these new standards and engaging in meaningful improvements across all impact areas. Need help? Feel free to book in a call below.
References / Further reading
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