Certifying as a
B Corporation

Everyday there are more companies and business people looking for transparency and metrics of their social and environmental impact. Certified B Corps are not perfect, but they take on the commitment to continuously improve and place their socio-environmental business purpose at the center of their business model.

They measure and analyze the five most relevant areas for their company: Government, Workers, Customers, Community and Environment, allowing a detailed revision of all of them, with the objective of identifying all the possible improvement points and opportunities to be an agent of change in the economy, protecting the mission and maximizing the triple impact.

B Corp certification is administered by B Lab, a non-profit entity in the United States. B Corps redefine the meaning of success for a company, receiving a collective company mark as market identity. They undergo a comprehensive sustainability evaluation with certification and recertification instances, and carry out amendments to their legal

B Corps have
4 key elements

Purpose

They are motivated by the creation of positive impact on society and the environment

Legal requirement

 Extends the fiduciary duty of shareholders and managers to include non-financial interests

Certification

It is evaluated and is committed to improve its management and transparency standards

Interdependence

They are part of a community: declaration of interdependence

Minimum Requisites to
become B Corp:

Be in operation for over 12 months.

The companies that have been operating less than that time will obtain the Pending B Corp status.

Operate in a competitive market

The company must operate in a competitive market and be exposed to normal company risks, competitors, taxes and changes in the market. The companies that operate in a monopoly, are controlled by the government or have significant benefits in relation to taxes, for example, will not be eligible for the B Certification.

Legal requirement

The company must be able and willing to comply with the legal requirement of the B Corp Certification, and effectively carry it out.

For profit entity

The philosophy of B Corps is to prove that companies can take responsibility for solving socio-environmental issues through their business. Consequently, non-profit entities such as fundations, NGO’s, among other civil society organizations, will not be able to access B Corp certification as they have been specifically created to resolve these issues.

Full and Distinct Business

B Corp certification is for full businesses, ones that include all areas of management in the company. It isn’t possible to obtain the certification individually for the different divisions, brands, units or companies that don’t have control of their product or service.

If your business meets any of the following criteria, we recommend you undergo a diagnostic stage with Sistema B to understand specific certification requirements.

Characteristics of complex companies
– Operating a franchise model.
– Having majority-owned subsidiaries (+50%) and/or absolute majority (+99%).
– The company is owned by another company.
– It forms part of a group that shares brand, team, and/or operations.
– Operating in multiple countries.
– Having a relationship with the government (ownership, sharing operations, employees, clients, Board, etc.).
– Having the government as a client.
– Operating a monopoly.
– Having an annual revenue >US $100MM.
– Publicly traded / Trading on stock exchange.

If your company does not wish to formally undergo the Diagnostic stage, you can download the following guide detailing the B Corp Certification requirements.

B Corp Certification Process:
step by step

If the company has an annual revenue of US $100,000,000, it must contact Sistema B Internacional to confirm the next steps. 

1. Complete the B Impact Assessment

To become a B Corp, you must complete the B Impact Assessment (BIA). It’s a free tool. The information uploaded is confidential, and it’s designed to help measure and manage the positive impact your company has on its workers, community, clients, and the environment.

2. Disclosure Questionnaire and Controversial Industries

In addition to completing the B Impact Assessment, the company must declare the relation the company has with controversial or negative industries or practices.

While the B Impact Assessment focuses mainly on evaluating the positive impact of a company, any significant negative impact is considered through the Disclosure Questionnaire, the background check and a public channel for complaints.

There is a list of controversial industries, for which B Lab has a defined stance that may include additional requirements.

Click here for more information on the Disclosure Questionnaire. For more information on controversial industries, Click here.

3. Sending Impact Assessment B for review

Once Impact Evaluation B has been completed, the company must obtain a score of at least 80 points in order to send its evaluation for review and thus formally start the certification process.

4. Eligibility Analysis

Starting April 15, 2023, companies initiating the certification and recertification process must pay the Application Fee. This Fee will correspond to a fixed amount based on the company’s annual revenue, will be non-refundable, and will not be deducted from the Certification Fee.

*The Application Fee will only be charged to companies undergoing the standard certification and recertification processes.

** Companies undergoing the process for large companies and multinationals don’t need to pay the Application Fee.

Click here para descargar la FAQ Fee de Aplicación.to download the Application Fee FAQ.

5. Assessment and Verification

During the Assessment stage, key elements of the completed B Impact Assessment will be reviewed in detail: sector, industry, size, and areas with the highest scores. If the score remains above 80 points, the company can proceed to the verification process.

To initiate the Verification stage, documents and evidence are required to prove the reported practices, policies, and processes. If, after verification, the company still maintains 80 points, it will be eligible to become a Certified B Corp by paying the annual fee and signing the B Corp Agreement.

Based on the company’s characteristics, an onsite audit may be required.

 
  • TURNOVER RANGE (US$)
  • FEE DE APLICACIÓN (US$)
  • 0 - $499.999
  • $400
  • $500.000 - $999.999
  • $400
  • $1MM - $2.499.999
  • $600
  • $2.5MM - $4.999.999
  • $600
  • $5MM - $7.499.999
  • $1.000
  • $7.5MM - $9.999.999
  • $1.200
  • $10MM - $14.999.999
  • $1.200
  • $15MM - $19.999.999
  • $2.000
  • $20MM - $29.999.999
  • $2.500
  • $30MM - $49.999.999
  • $2.500
  • $50MM - $74.999.999
  • $3.000
  • $75MM - $99.999.999
  • $3.000
  • $100MM - $174.999.999
  • $4.000
  • $175MM - $249.999.999
  • $4.000
  • $250MM - $499.999.999
  • $4.000
  • $500MM - $749.999.999
  • $5.000
  • $750MM - $999.999.999
  • $5.000

6. Annual Fee

The fee for a B Corp Certification is annual and varies according to the company’s last fiscal year’s turnover. It works as a membership and must be paid every year, in the same month of the initial certification. This also applies if the company is in the process of recertification.

*Values are in US dollars. Tax payment depends on the regulations of each country.

Special Considerations for B Corps
If your company has already been certified and has additional questions, you can contact your local Sistema B. If located in Venezuela or Bolivia, you can contact Sistema B Internacional.

  • TURNOVER RANGE (US$)
  • APPLICATION FEE (US$)
  • $0 - $149,999
  • $500
  • $150,000 - $1,999,999
  • $1,000
  • $2 MM - $4,999,999
  • $1,500
  • $5 MM - $9,999,999
  • $2,500
  • $10 MM - $19,999,999
  • $5,000
  • $20 MM - $49,999,999
  • $10,000
  • $50 MM - $74,999,999
  • $15,000
  • $75 MM - $99,999,999
  • $20,000
  • $100 MM - $249,999,999
  • $25,000
  • $250 MM - $499,999,999
  • $30,000
  • $500 MM - $749,999,999
  • $37,500
  • $750 MM - $999,999,999
  • $45,000
  • ANNUAL TURNOVER (US$)
  • ANNUAL CERTIFICATION FEE (US$) FROM 15/04/2023
  • $0 - $149,999
  • $1.000
  • $150.000 - $499.999
  • $1.000
  • $500.000 - $999.999
  • $1.250
  • $1MM - $1.999.999
  • $1.350
  • $2MM - $2.499.999
  • $1.350
  • $2.5MM - $4.999.999
  • $2.000
  • $5MM - $7.499.999
  • $3.000
  • $7.5MM - $9.999.999
  • $3.500
  • $10MM - $14.999.999
  • $5.000
  • $15MM - $19.999.999
  • $7.500
  • $20MM - $29.999.999
  • $10.000
  • 30MM - $49.999.999
  • $12.500
  • $50MM - $74.999.999
  • $17.500
  • $75MM - $99.999.999
  • $25.000
  • $100MM - $174.999.999
  • $30.000
  • $175MM - $249.999.999
  • $35.000
  • $250MM - $499.999.999
  • $40.000
  • $500MM - $749.999.999
  • $45.000
  • $750MM - $999.999.999
  • $50.000

7. Modify your statutes

Legal B Corp Requirement

To be a B Corp, a company must commit to complying with the legal requirement established in the country where it’s legally incorporated. This may involve amending statutes or adopting a legal form such as a Benefit Corporation.

B statutes provide legal protection for the company’s directors and managers to consider the interests of their public, not just stakeholders, when making decisions.
This change creates additional rights for stakeholders, allowing them to request that directors and managers are accountable in the relationship with the interested public.
These accountability rights are exclusively given to shareholders.

You can find the approved legal B Corp requirement for your country below.

Enter the country where your company is legally incorporated:

To see more information about the legal requisites in the world, click here.

* Important: Depending on the size of the company, it will be required to comply with the legal requirement of Company B before finalizing the certification process.

8. B Corp Recertification

To maintain the B Corp Certification, a company must update its B Impact Assessment every 3 years and enter the recertification process.

Starting from July 2024, B Corps must submit the B Impact Assessment for review at least six (6) months before their recertification date. This updated policy will initially affect companies whose recertification date is scheduled from January 2025 onwards.

Recertification provides an opportunity for the company to set improvement goals according to the most recent standards, and to compare its social and environmental performance. To initiate the recertification process, the company must have fulfilled the B Corp legal requirement.

Every year, 10% of B Corps that are undergoing the recertification process are randomly selected for an onsite or virtual audit.

What does the Pending B Corp status mean?

The Pending B Corp status is designed to give start-ups and smaller companies time to prepare for the rigorous process of full B Corp Certification. This means that companies with less than 12 months of operation can obtain the Pending B Corp status.
This with validity of:
– 1 year for Argentina, Brazil, Chile, Colombia, and Mexico.
– 2 years for Central America and the Caribbean, Uruguay, Peru, Ecuador, Paraguay, Bolivia, and Venezuela.
No possibility of renewal while awaiting B Corp certification.

In order to obtain the Pending B Corp status it is necessary to meet the legal accountability requirement, complete 100% of the B Impact Assessment, sign a Pending B Corp Agreement and pay the US$500 fee which entitles the company the use the logo.

The Pending B Corp logo can only be used in digital channels.

Why be a
B Company?

Global Movement

B Corps are leaders in the new economic forces, inspiring many others to join a global and interdependent community.

Continuous Improvement

B Certification is a tool for continuous improvement, that allows B Corps to increase the positive impact in a permanent way.

Transparency

B Impact Assessment and certification are tools to show the world how to operate internally with all your value chain in a transparent way.

Commercial Alliances

B Corps have comparable, verifiable and reliable metrics that bring consistency to the dialogue with impact investors and ESG investors (Environmental, social and governance); this is also an opportunity to generate commercial and collaboration alliances with other companies, in addition to being attractive to impact investors.

Positioning

B Corps share characteristics that make them differentiate and stand out in the media, mass events, forums and seminars. They also have a differential in the value chain, including investors, workers, suppliers and consumers.

Attract talent

B Corps attract professional talent that more and more look to work in companies with a purpose.

Mission Protection

The purpose of B Corps endures the test of time as it protects itself legally.

Frequently Asked Questions

B Corps are companies that seek to be better FOR the world and not just the best in the world. They are committed to a continuous development plan, which goes from the logic of mitigating negative impacts to a new logic of generating positive impacts. Use the strength of your business to build a new, more sustainable and inclusive economy.

Certified B Corps pay an annual certification fee. This fee starts at $ 500.00 and increases the company’s income accordingly. You can see the full price list on the “Certification” page.

The duration of the certification process varies depending on the size and complexity of the company. For companies that invoice up to US $ 50 MM, the process usually takes between 6 and 12 months. Large multinationals or companies with many related entities may take more than a year to be certified.

The entire certification process as Company B begins with the completion of the Impact Assessment B, a confidential, online and free tool developed by B Lab. 5 dimensions are analyzed in it: Governance, Employees, Environment, Community and Customers. By completing 100% of this questionnaire, the company receives a score from 0 to 200 points. If you have more than 80 points, you are eligible to start the certification process with the B Lab Standards Trust.

The audit and information validation process varies depending on the profile (size) of the company interested in certification. This is a process that will involve RI (to understand the organizational and operational structure of the company and the responsible for the Governance pillar); HR (responsible for the Workers pillar); Purchasing / Supply Chain (responsible for the Community pillar); Sustainability (responsible for the Environmental pillar); and Sales (responsible for the Customers pillar).

Any for-profit company with at least one year of operations can apply for Certification as B Corp. There is no minimum or maximum size.

Non-profit organizations cannot be certified, but they can use the assessment as a tool to improve their practices.
The company must obtain a verified score of 80 points on the B Impact Assessment (BIA), which examines the overall impact of a company on its workers, the community, customers and the environment.

Subsidiaries, franchises and companies with related entities can apply for Certification as B Corp, with certain limits. Subsidiaries of publicly traded companies must also meet additional transparency requirements.

Certification as a B Corp is based in part on the verified performance of a company in the B Impact Assessment, which asks questions about the company’s previous fiscal year. This means that companies with less than a year of operation are not yet eligible for certification. Instead, they can pursue the Pending B Corp status, designed for companies with less than a year of operation or wanting to be born with this differential.

Yes! There is no minimum size for certification as a B Corp. The size of your company will influence the questions you must answer on Impact Assessment B to meet the performance requirement for certification.

The standards are overseen by the B Lab Trust Standards Advisory Board. Members of the Standards Advisory Board bring industry and stakeholder expertise to support during the three-year update cycle for Impact Assessment B, claims made against certification and material disclosures made by companies seeking to become a Certified B Corp.

All B Corps share their overall B Impact Assessment scores and category scores on their public profiles on bcorporation.net. Public companies and their subsidiaries have additional transparency requirements and make their entire B impact assessment public, with especially confidential information such as written income. Companies that have material elements, such as claims, in their Disclosure Questionnaire may also be required to make this disclosure transparent. Learn more about certification requirements.

The B-Business community reflects the global business landscape, from small and medium-sized companies to publicly traded companies. Most of the B Corps are small businesses.

Benefit Corporation is a type of corporate legal framework that is available in 35 jurisdictions. B Corps are companies certified by the non-profit organization B Lab to meet strict verified standards of social and environmental performance, transparency and accountability.