B Corp Certification
Definition
B Corp Certification is awarded by the non-profit B Lab to companies that meet rigorous standards of social and environmental performance, accountability, and transparency. The certification process involves a comprehensive assessment (the B Impact Assessment) covering governance, workers, community, environment, and customers. B Corps are legally required to consider the impact of their decisions on all stakeholders.
Why It Matters
B Corp Certification has become one of the most recognised sustainability credentials for small and medium enterprises. It provides a holistic, third-party-verified measure of a company's overall ESG performance that resonates with both consumers and business buyers.
Related Terms
ESG Rating
An ESG rating is an assessment of a company's exposure to and management of environmental, social, and governance risks and opportunities. Provided by agencies such as MSCI, Sustainalytics, and S&P Global, ESG ratings aggregate data from corporate disclosures, news sources, and stakeholder reports. Ratings are used by investors to screen, compare, and evaluate companies on sustainability performance.
EcoVadis
EcoVadis is a business sustainability ratings platform that assesses companies across four themes: environment, labour and human rights, ethics, and sustainable procurement. Using a combination of documentation review, industry benchmarking, and third-party data, EcoVadis provides a scorecard from 0 to 100 with medal levels. Over 130,000 companies across 175 countries have been rated.
Corporate Governance
Corporate governance is the system of rules, practices, and processes by which a company is directed and controlled. It defines the distribution of rights and responsibilities among the board of directors, management, shareholders, and other stakeholders. Good governance ensures accountability, fairness, transparency, and responsible decision-making.
Social Impact
Social impact refers to the significant positive or negative effects that an organisation's activities have on the well-being of communities and society at large. It encompasses outcomes related to health, education, employment, equity, and quality of life. Measuring social impact helps organisations understand and communicate their contribution to societal progress.