B Corp Update: Your Guide to the 2025 Certification Standards

The meaning of corporate responsibility is changing. Businesses are moving from simple philanthropy toward a model where they are central to solving societal problems. Leading this charge is the Certified B Corporation, or B Corp, movement.

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Achieving B Corp status is more than a certification; it shows a company’s deep commitment to redefining its purpose. This guide explains the identity, the theory of change, and the pledge that B Corp members share.

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Understanding this foundation is the first step for any company considering this path. It means joining a global movement that believes business must be a force for good.

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The B Corp identity: Purpose, accountability, and the theory of change

A Certified B Corporation is a for-profit company verified by the non-profit B Lab to meet high standards of social and environmental performance, transparency, and legal accountability. This certification means a business creates value for all stakeholders: customers, workers, communities, and the environment. These are just as important as the financial interests of shareholders.

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The B Corp movement now includes nearly 10,000 companies in over 100 countries. This diverse community works to change economic systems from within. The certification process examines a company's entire operation, not just a single product.

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To get and keep the certification, companies must pass a tough verification process, share their performance on B Lab's website, and change their corporate governance to legally consider all stakeholder interests. This legal change is a key part of what makes a B Corp different.

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The philosophical core: B Lab's theory of change

The B Corp movement follows a clear philosophy outlined in B Lab's "Theory of Change." This framework defines the problem, the vision, and the strategies. It argues that the current economic system, focused on shareholder value, creates negative outcomes like social inequality and environmental damage. B Lab believes this model is not sustainable.

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The vision is to transform this system into a global economy that is inclusive, equitable, and regenerative. To do this, the Theory of Change has three pillars:

1. Racial Equity: A just economy requires dismantling systems of racial injustice that affect people of color. The B Corp movement is committed to this work.
2. Climate Justice: The climate crisis disproportionately hurts the most vulnerable populations. The movement advocates for business practices that heal the environment.
3. A Stakeholder Economy: This pillar promotes a shift from shareholder primacy to a model where businesses are accountable to all stakeholders.

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These pillars show a clear ideological stance. Companies seeking B Corp certification today are not just adopting best practices; they are aligning with a specific vision for economic change.

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The pledge: The declaration of interdependence

The commitments of the B Corp movement are formalized in the Declaration of Interdependence, which every certified company must sign. This pledge unites companies around a shared purpose.

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The Declaration includes these core beliefs:

• "That we must be the change we seek in the world."
• "That all business ought to be conducted as if people and place mattered."
• "That, through their products, practices, and profits, businesses should aspire to do no harm and benefit all."

By signing, a company joins a community of leaders dedicated to building a better future through mutual responsibility.

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The evolution of B Corp standards: From points to prescriptions

The B Corp certification is at a turning point. B Lab has started the biggest evolution of its standards, changing how it assesses corporate performance. This is a move from a flexible, points-based system to a framework of specific, mandatory requirements. This section details this shift, the new structure, and the principle of continuous improvement now part of the certification.

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A paradigm shift: The end of the 80-point score

For years, B Corp certification required a score of 80 points or more on the B Impact Assessment (BIA). The BIA reviews a company's impact on Governance, Workers, Community, Environment, and Customers. This model allowed companies to use strengths in some areas to make up for weaknesses in others.

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Starting in 2025, B Lab is replacing this system. The new standards introduce specific performance requirements all B Corps must meet. A company must now meet a baseline in every critical area. This change aims to provide clarity and consistency, making sure the certification continues to identify leading businesses. The new system demands a more complete approach to impact management.

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The new B Corp standards: Foundation requirements and impact topics

The new B Corp standards have a two-part structure.

1. Foundation Requirements: These are universal prerequisites every company must meet, regardless of size or industry. They cover legal incorporation, operational history, compliance, transparency, and the B Corp legal requirement for stakeholder governance.
2. Impact Topic Requirements: After meeting the foundation requirements, companies are assessed against requirements in seven Impact Topics: Purpose & Stakeholder Governance; Fair Work; Justice, Equity, Diversity & Inclusion (JEDI); Human Rights; Climate Action; Environmental Stewardship & Circularity; and Government Affairs & Collective Action. The requirements are tailored based on a company's size, sector, and industry.

This new structure aligns with mainstream ESG frameworks like the Global Reporting Initiative (GRI) and the European Sustainability Reporting Standards (ESRS). This alignment means the work done for B Corp certification can be used for other reporting obligations, creating efficiency.

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The principle of continuous improvement: A formalized path

Continuous improvement is now a formal part of the B Corp standards. Many performance requirements have escalating expectations over time, with different benchmarks for Year 0 (initial certification), Year 3, and Year 5 (recertifications).

For example, a company might need a climate action plan at Year 0, but by Year 3 or 5, it must have validated science-based targets and show progress. This phased structure makes the new standards more accessible, allowing companies to build their capacity. It also embeds a long-term commitment into the certification, making it a dynamic path of progress.

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Foundational requirements: The universal baseline for all B corps

Before a company can be evaluated against the performance standards of the seven Impact Topics, it must pass the Foundation Requirements (FRs). These three requirements, Eligibility, Legal & Communal Commitment, and Risk Management, are the entry point to the B Corp movement.

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FR1: Establishing eligibility

Foundation Requirement 1 ensures only legitimate and operational businesses can start the B Corp certification process.

• FR1.1: Entity Qualifications: A company must be a legally incorporated, for-profit business that has been operating for at least 12 months.
• FR1.2: Industry Exclusions: Companies with significant revenue from industries like fossil fuels, gambling, tobacco, or weapons are not eligible.
• FR1.3: Legal Compliance: A company must comply with all applicable laws and resolve any severe violations.
• FR1.4: Information Accuracy: A company must provide accurate and complete information to B Lab.
• FR1.5: Transparency: Upon certification, a company must make its B Impact Report public.

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FR2: The legal and communal commitment

Foundation Requirement 2 solidifies a company's commitment to B Corp principles through legal and symbolic acts.

• FR2.1: Adopting Stakeholder Governance: Companies must legally amend their governing documents to require directors to consider the impact of their decisions on all stakeholders. The timeline for this depends on the company's size, location, and legal structure.
• FR2.2: Committing to the Community: Companies must sign the B Corp Declaration of Interdependence, pledging to uphold the community's shared values.

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FR3: Proactive risk management

Foundation Requirement 3 introduces a formal approach to risk management.

• FR3.1: Risk Profiling: Every company must use B Lab's risk profiling tool to assess its potential for negative social and environmental impacts. The result may trigger additional mandatory requirements in the Impact Topics. This ensures the certification process is tailored to address the most relevant risks for each business.

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The impact topics: A deep dive into core performance requirements

After the Foundation Requirements, the core of the new B Corp standards is the seven Impact Topics. These topics cover the specific actions companies must take to show their positive impact and responsible management. Companies must meet tailored requirements across all seven areas.

Purpose & stakeholder governance (PSG)

This topic ensures a company's purpose is part of its strategy and governance. Companies must have a public purpose statement and formally consider stakeholder impacts. Larger companies must conduct a regular materiality assessment, engaging with stakeholders to identify their most significant social and environmental impacts. This assessment informs strategies across other Impact Topics, creating a coherent management system.

Fair work (FW)

This topic focuses on being a great employer. It requires fair wage practices, including conducting a living wage analysis. Companies must have formal channels for worker feedback, such as a union or worker committee. They also need to measure and improve workplace culture, with larger companies required to break down this data by gender and other social identities to ensure inclusivity.

Justice, equity, diversity & inclusion (JEDI)

This topic addresses B Lab's goal of building a just economic system. It follows a two-step process: data collection and then action. Companies collect demographic data on their workforce and then implement a specific number of JEDI actions from a list provided by B Lab. These actions focus on creating an inclusive workplace and supporting equitable communities.

Human rights (HR)

This topic establishes a company's responsibility to respect human rights in its operations and value chain. It aligns with the UN Guiding Principles on Business and Human Rights. Companies must have a public policy on human rights and conduct due diligence to identify and address human rights risks. For the largest companies, this includes creating a plan to address living wages in their supply chains.

Climate action (CA)

This topic addresses climate change, requiring B Corps to take credible action to reduce their greenhouse gas (GHG) emissions. All companies must measure their Scope 1, 2, and 3 emissions annually. Larger companies must set validated science-based targets and develop a detailed climate transition plan that includes a "just transition" component to ensure fairness for workers and communities.

Environmental stewardship & circularity (ESC)

This topic requires companies to address their broader environmental impacts, including biodiversity, water, and waste. Companies must monitor key environmental metrics. A major focus is on implementing circularity principles, shifting away from a "take-make-waste" model. This involves designing products for durability, repairability, and recirculation.

Government affairs & collective action (GACA)

This topic expects B Corps to be leaders outside their own operations. It requires a transparent approach to lobbying and responsible tax strategies. It also mandates participation in collective action to drive systemic change. All B Corps must participate in efforts like mentoring other businesses, advocating for public policy, or engaging in multi-stakeholder collaborations.

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The path to certification: A strategic and actionable roadmap

Getting B Corp certified under the new 2025 standards is a major project. It has shifted from an assessment to an implementation process, where a company must build the systems and policies to meet mandatory requirements.

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Step 1: Foundational assessment and scoping

The first step is to check eligibility and understand the foundational commitments.

• Eligibility Check: Confirm your company meets the criteria in Foundation Requirement 1, including being a for-profit business operating for at least 12 months and not involved in prohibited industries.
• Legal Pathway Analysis: Work with legal counsel to understand the specific changes needed for your governing documents to meet the stakeholder governance requirement.
• Risk Profiling: Complete the B Lab risk profiling tool to see if you have additional due-diligence requirements.

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Step 2: Gap analysis against your tailored requirements

Next, map out the specific performance requirements for your company and find the gaps.

• Identify Your Track: Your company's size, sector, and industry determine your unique "track" and the set of mandatory requirements you must meet.
• Conduct a Detailed Gap Analysis: Compare your current policies, systems, and performance against each mandatory requirement to create a clear list of what needs to be done.

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Step 3: Strategic implementation and documentation

This is the most intensive part of the process, where you build the infrastructure to meet the standards.

• Develop a Project Plan: Create a detailed plan with actions, timelines, and responsibilities to close each gap. Prioritize foundational systems like GHG accounting and a materiality assessment.
• Formalize Policies and Processes: Codify informal practices into formal, documented policies for human rights, lobbying, supplier conduct, and more.
• Establish Data Collection Systems: Set up or upgrade systems to track metrics for GHG emissions, waste, water, employee demographics, and wage data.

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Step 4: Verification and continuous improvement

The final phase involves submitting your performance for verification and planning for the future.

• The Verification Process: A B Lab analyst will review your documentation to verify compliance with each mandatory requirement for your track.
• Planning for the Future: Use the phased requirements for Year 3 and Year 5 to create a multi-year plan for improving your performance. This makes the certification a framework for continuous improvement.

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How can Arbor help?

The new, demanding requirements of the 'Climate Action' (CA) Impact Topic can be one of the most data-intensive parts of the B Corp update. Arbor’s carbon accounting platform is specifically designed to simplify this process, providing the tools and data you need to meet the standards with confidence.

Here is how Arbor helps you tackle the key requirements of this topic:

Annual, Publicly Disclosed GHG Inventory (CA1)

Arbor’s platform helps you maintain a documented process to measure your gross Scope 1, location- and market-based Scope 2, and all relevant Scope 3 emissions categories every year. We provide the complete data set you need to publish in your sustainability or annual report.

Third-Party Verification of the Inventory (CA1)

We help you prepare for the audit process by providing accurate, audit-ready data. Our platform ensures your inventory is complete and aligned with the GHG Protocol, streamlining verification from accredited bodies (like those using ISO 14064-3 or ISAE 3410).

Public Climate-Action Plan (CA2)

A strong plan requires strong data. Arbor provides the foundational emissions data and insights needed to set specific, measurable, achievable, relevant, and time-bound (SMART) performance targets that will earn board approval.

Science-Based Targets & Implementation Progress (CA2 – CA3)

Setting validated science-based targets starts with precise measurement. Arbor helps you accurately identify your baseline emissions across all three scopes, providing the credible data required to set near-term and net-zero targets on a 1.5 °C pathway.

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Summary

The evolution of the B Corp standards marks a key moment for the business-as-a-force-for-good movement. The shift to mandatory performance requirements raises the bar for corporate responsibility. This change prioritizes clarity and consistency.

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The new B Corp structure creates a more demanding path to certification. It requires companies to develop comprehensive management systems that address today's most pressing social and environmental issues. The standards are no longer a menu of options but a set of non-negotiable commitments.

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For companies on this path, the process is now about deep, strategic implementation. It demands investment in new capabilities, formal policies, and robust data systems. The phased requirements embed a principle of continuous improvement, turning the certification into a dynamic framework for long-term impact.

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While the new standards are more challenging, they also offer a clearer path. They are a call for deeper accountability and leadership, challenging businesses to actively contribute to an inclusive, equitable, and regenerative economy.