B Corp: Right for Your Business?
Since its launch in 2007, B Corp certification has been a valuable framework for businesses needing structure in their sustainability journey. For companies starting from scratch, the B Impact Assessment offered an invaluable diagnostic tool across governance, workers, community, environment and customers. Its rigour created genuine marketplace credibility - the badge carried weight precisely because it was difficult to obtain.
But there are a growing number of B Corp companies (almost 10,000), and as larger companies with complex supply chains joined, questions emerged about whether the standards were being consistently applied. Some certified companies that have faced criticism for their environmental impacts (such as Evian and Nespresso with their single-use packaging) have caused the scheme to come under fire. The 2025 standards aim to address these dilution concerns, despite this, some businesses are reconsidering their participation.
"Little more than a marketing badge and greenwashing "
Pet food brand Scrumbles announced in February that the company would not renew its B Corp certification, redirected the £8,500 recertification fee to charity, declaring the certification "little more than a marketing badge and greenwashing."
This wasn't an isolated incident. Dr. Bronner's (the natural soap company that once boasted the highest-ever B Corp score of 206.7) abandoned certification that same month. Meanwhile, management consultancy Baringa Partners announced it wouldn't renew its status as its energy sector consulting work on net zero transitions and scenario analysis increasingly conflicted with B Corp requirements.
This wave of departures speaks to a broader tension. As B Lab unveiled its most significant standards revision in the certification's history this April, many companies are reassessing whether the new requirements align with their business realities.
B Corp's 2025 Structural Overhaul
What changes have they made? B Corp used to essentially be a points game. Companies could amass 80+ points across various categories, potentially compensating for weaknesses in one area with strengths in another. Those days are gone.
B Lab's seventh standards iteration introduces a fundamentally different approach. Businesses must now meet specific requirements across seven mandatory ‘Impact Topics’:
Purpose & Stakeholder Governance
Fair Work
Justice, Equity, Diversity & Inclusion
Human Rights
Climate Action
Environmental Stewardship & Circularity
Government Affairs & Collective Action
Companies face escalating expectations at Years 0, 3, and 5 post-certification, with standards tailored to their size, sector, and location.
In other words, B Corp has repositioned the scheme to focus on continuous improvement across all sustainability dimensions.
Why Many Businesses Still See Value
Despite these more demanding standards, many companies continue to find compelling reasons to pursue or maintain their B Corp status.
Small businesses accredited as B Corps significantly outpaced the wider market last year, reporting a 23.2% increase in revenues between 2023 and 2024, compared with a national average of just 16.8%. Figures released by B Lab UK also show these certified enterprises are creating jobs at a faster rate, growing headcount by 9.6% while the general business population shrank by 0.5%.
Beyond validating existing practices, B Corp offers something particularly valuable in today's greenwashing-wary marketplace: credibility. Third-party validation matters when everyone claims to be sustainable. The certification also provides a community of like-minded organisations, valuable for building sustainable supply chains or finding collaboration partners.
And, for businesses navigating the increasingly complex regulatory environment, the certification can also serve as preparation for emerging requirements like the EU's CSRD.
When Good Companies Don't Fit the Mould
The certification process demands significant time, often from teams already stretched thin. For a typical mid-market business, preparation can consume 80-120 hours of work across departments, before considering the costs of implementing new policies or operational changes.
Industry context matters tremendously. Some businesses find that B Corp's restrictions on client relationships would force them to drop valuable accounts. Despite genuine commitment to sustainability, the business implications can be too severe.
Even governance requirements can create friction. Many businesses operate with deeply embedded sustainable values but hesitate to amend their articles of association to include stakeholder governance provisions, particularly when this creates succession planning complications.
Is B Corp Right for Your Business?
Companies experiencing rapid scaling often struggle most with certification maintenance, as resources can be pulled from other potentially more impactful sustainability initiatives.
Look honestly at your industry's compatibility. Professional services firms working with controversial clients, manufacturers with complex supply chains, and businesses in transition industries face particularly steep climbs.
Assess whether B Corp truly resonates with your specific stakeholders. While consumer-facing brands often see clear marketing benefits, B2B companies report more mixed results.
Finally, consider whether the certification offers the best sustainability return on investment. Companies with already strong sustainability credentials and established brand recognition might achieve greater impact by directing those resources elsewhere.
A Path Forward
B Corp certification represents an excellent choice for many businesses, particularly those with sustainability already embedded in their DNA. The framework's holistic approach brings structure and credibility that can genuinely drive positive change. Yet not every sustainability journey needs to follow the same path. For some mid-market firms, sector-specific certifications or customised approaches may better serve their unique context and goals.
Our Fractional CSOs can help you navigate these options objectively, identifying the sustainability framework that creates maximum impact (both societal and commercial) while supporting your specific business strategy. To find out more, do get in touch at hello@pulsecso.com.