Sustainability Magazine February 2023 | Page 51

ESG

CORP

B Corp has fast established itself as one of the foremost ways of proving your ESG bona fides . But what limitations lay in store for those who choose that route ?

As the world of business has become more concerned with administering itself according to the principles of environmental , social , and governance ( ESG ) criteria , so has B Corporation ( B Corp ) certification become one of the leading ways in which companies can show that they are in compliance .

What is B Corp certification ? In a few words , it is the most shockproof , standardised certification that a company can get to prove to customers , investors and employees that it abides by goals embedded in ESG standards – or , in the words of one advisor , that a company is “ running a tidy shop and leaving no stone unturned ”. Thoroughness is the name of the game , and it seeks to be a force against the tide of lip service and greenwashing .
First , a bit of backstory : B Corp certification is designed for for-profit companies and is administered by B Lab , a globe-spanning non-profit that has offices in the US , Canada , Europe , Australia , and New Zealand , as well as a partnership with Sistema B in Latin America ; note , too , that it is distinct from the legal term ‘ benefit corporation ’, which is also often shortened to ‘ B Corp ’. To achieve the certification , companies are rated on a number of metrics – the five core
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