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
Legal requirement
Extends the fiduciary duty of shareholders and managers to include non-financial interests
Certification
Interdependence
Minimum Requisites to
become B Corp:
Be in operation for over 12 months.
Operate in a competitive market
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
Full and Distinct Business
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
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.
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.
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.
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
Continuous Improvement
Transparency
Commercial Alliances
Positioning
Attract talent
Mission Protection
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.
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.
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.