Dozens of firms risk losing B Corp status after standards overhaul
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B Lab, the organization behind B Corp certification, has launched a major overhaul of its standards, potentially causing dozens of companies to lose their ethical status. The updated process, motivated partly by changing EU law, requires companies to meet mandatory standards across seven categories, verified by third-party audits. Previously, companies could compensate for poor performance in one area by excelling in another. The change comes after criticism of B Corp certifications for companies like BrewDog and Nespresso. Analysis suggests that hundreds of existing B Corps, particularly larger ones, may struggle to meet the new, more rigorous requirements for recertification, which occurs every three years. Over 60 UK B Corps currently score exactly 80 points, the minimum threshold under the old system, and another 600 score 81 or below.
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AI-ExtractedBrewDog lost its B Corp certification in 2022 after allegations about a ‘toxic’ workplace culture.
The updated B Corp certification process requires companies to meet 'non-negotiable' standards in seven categories.
B Lab launched the biggest overhaul in its 19-year history, changing B Corp certification criteria.
Dozens of companies may lose B Corp status due to raised standards.
Some of the 10,000 companies with B Corp status will need to improve ethical standards to recertify.
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