Once upon a time, conscious corporations were a rare breed; they occupied a small space reserved for the most die-hard environmental and social advocates. But this is no longer the case with thousands of B Corps united in protecting the planet. The B Corporation brand embodies a different type of organisation— one that weaves its mission with being ‘a force for good’. Forefront among credentials for companies, the B Corporation certification assesses the social and environmental performance of for-profit companies.
Conceived less than 15 years ago, the certification has transformed into a movement with B Corp companies holding themselves up to the highest standards of 'social and environmental performance, public transparency, and legal accountability'. For Patagonia’s Ryan Gellert, being a B Corp is tied into the obligation for businesses to become directly involved in the climate fight. It’s even simpler for Ben & Jerry’s Anuradha Chugh who goes by the mantra that ‘if it’s melted, it’s ruined’ – as true for the company’s namesake product as it is for the climate. Whatever the reason may be, the growth of B Corps proves that combining purpose with profit is here to stay.
In New Zealand, the B Corp movement is picking up momentum with Canterbury-based dairy company Synlait recently joining the rank of prominent household names including Kathmandu, Fix & Fogg, Ethique, and Sawmill Brewery. In our recent webinar ‘The Power of B’ Hamish Reid, Director of Sustainability and Brand at Synlait, Becky Lloyd, CEO at Toitū Envirocare and thinkstep-anz’s own CEO Barbara Nebel share their collective insights on the B Corp process, motivations, and benefits.
The proliferation of B Corps reflects a priority shift in companies as both certified and aspiring B Corps around the world take on the challenge of balancing profit with purpose – willingly. But why? B Corp stands its ground in a sea of certifications for many reasons. Florian Nebel, thinkstep-anz’s B keeper sums up the reasons to join the B Corp movement.
1. A 'complete' assessment
B Corp certification provides assurance for a whole company rather than just its products and assesses a company’s overall positive impact outside of profit. In fact, B Corp is a statement about businesses being about more than the bottom line. 'Our business is all about enabling our clients to have positive impact; the B Corp certification assesses our own impact,' says Barbara Nebel.
B Corp utilises a holistic approach that considers governance, workers, community, environment and customers in its assessment. Aspiring or recertifying B Corps are awarded points for having a well-rounded understanding of environmental and social impacts including energy use, emissions and reduction opportunities, along with employee benefits, charitable giving and engagement with suppliers.
2. Continuous improvement with benchmarking
The commitment to public transparency means that the B Corp impact scores are a valuable resource for benchmarking. Organisations can see how they fare against their peers in different impact areas and use this information to further motivate their own continuous improvement.
Between the public transparency for benchmarking and stimulating improvement, and the requirements for recertification, B Corp does not give companies the space to settle for ‘good enough’. Rather, it fosters an environment for growth by encouraging goal setting and achievement against the most up-to-date standards to benchmark performance over time.
3. Commitment to action
The B Corp journey does not start or end with certification! The assessment introduces a wide range of ideas to inspire improvement, regardless of whether a company ultimately achieves certification. Many businesses care about doing the right thing and often start initiatives without always having clear records or processes in place to secure their longevity. 'We had an informal volunteering policy, but the certification encouraged us to formalise and embed it even more into our company culture,' says Barbara Nebel. Smaller businesses often fall into this category, potentially through a lack of time or resources, or the departure of a staff member who was previously responsible for a particular initiative.
B Corp certification requires embedded and documented processes, providing a catalyst for businesses to transition toward formalised commitments for enduring action. Certified B Corps must also recertify every three years to maintain certification, effectively instigating lifelong improvement and growth in environmental and social performance.
4. Attract the right people
A company’s success is owed in no small part to the team behind it. To attract high-calibre staff, companies need to clearly display attractive values. This trend is growing with Colmar Brunton reporting that New Zealand employees are placing increasing importance on work that aligns with their values. Communicating social and environmental credentials through the internationally recognisable B Corp certification allows an organisation to find talented individuals aligned with the B Corp values. 'In our recent recruitment process, we had several applicants who were keen to join us because we are a B Corp,' says Barbara.
It is generally accepted that environmental responsibility ranks particularly high with up and coming generations. A 2020 Deloitte report on millennials and Gen Z found that even during a global pandemic, concern for the environment remains steadfast. Climate change and protecting the environment was still the dominant concern for Gen Z, and a close second for millennials only behind healthcare and disease prevention. Closer to home, a similar scene unfolds as an incredible 72% of youth note it is important that their future employer is socially and environmentally responsible. In an era that is increasingly concerned by social inequalities, labour issues and anthropogenic effects on the environment, B Corp certification is effectively able to convey organisational values to prospective employees.
5. Conscious market leadership
Australia and New Zealand are among the fastest growing B Corp regions in the world. Part of the appeal for locally certifying companies is being recognised in the cohort of market-leading front runners.
There is growing evidence that good Environmental, Social, and Governance (ESG) performance is linked to 'less market volatility, lower risk, and better financial performance,' reaffirming the data that the positive impact of conscious companies like B Corps extends to their financial success. In 2017, Unilever’s ‘sustainable living’ brands grew 46% faster than the rest of the business and delivered 70% of Unilever’s turnover growth. Unilever revealed that this general trend had occurred for the fourth consecutive year.
In New Zealand, the qualities that differentiate B Corps from other companies are consistent with those that are highly valued by Kiwis. For example, climate change, sustainability and waste continue to be key concerns for New Zealanders in 2020, according to Sarah Bolger, the Head of Colmar Brunton. The market agency’s 2020 Better Future report also found that 76% of participants did not think businesses were doing enough to reduce their environmental impact.
6. B part of a global community
In becoming a B Corp you are not only joining the growing list of companies across Australia and New Zealand, but also a global community that spans over 70 countries and consists of over 3000 organisations committed to the same ideals.
The expansive B Corp community offers numerous opportunities for networking and sharing best practice, while ‘B Labs’ around the world, including B Lab Australia & New Zealand, offer support and guidance on the B Corp journey. Connect with the B Corp community to inspire and be inspired by a diverse group with the unifying goal of doing business better. 'When we needed marketing support, going through the B Corp registry was our first port of call to find a like-minded partner,' says Barbara.
7. A challenge to celebrate
The challenging nature of B Corp certification is not something to shy away from, but rather one to embrace. The thorough process, complete with an independent, third-party verification, means B Corp certification is not just another tick-box exercise. It demands significant engagement from aspiring and recertifying B Corps. From the perspective of prospective clients, customers and employees, this rigorous approach to measuring and monitoring purpose-based impact ensures that the B Corp brand remains credible and trustworthy, and as a B Corp, so does your company.
Keen to get started?
Get stuck in! Just create an account (it doesn’t cost anything) and give it a go. Even if you don’t end up going for certification, there will be lots of ideas to improve your own performance.
Call up another B Corp and have a chat about their experience. That’s what the community is all about. B Corps are generally happy to share experiences and ideas.
Make it a team challenge. Find your internal champion – your own B Keeper – but involve everyone who has something to contribute, from HR to finance to keen individuals.
Need inspiration? Listen to our webinar replays below with local B Corps such as Ethique and Synlait sharing their ongoing journeys to maximise the power of B.
September 2020