Introduction
The requirements for B Corp Certification are divided into Foundation and Performance Requirements. Companies are first evaluated against Foundation Requirements to assess their eligibility to pursue B Corp Certification. To do this, they must meet specific conditions, for example completing the legal requirement. The Foundation Requirements also assist companies in preparation to engage with the Performance Requirements through understanding and learning about their business model. The Performance Requirements consist of Impact Topics relating to a company's operations, value chain, and stakeholders. The latest draft of the Performance Requirements identifies Impact Topics with clear and universally applicable impact management actions that companies must meet to achieve and maintain B Corp Certification and be differentiated as a leading company using business as a force for good. The new standards will focus on the most important social and environmental issues facing people and the planet, giving companies clarity to focus on what matters and galvanize the most impactful actions.
Requirements are divided into x sections:
Foundation Requirements
Purpose & Stakeholder Governance
Workplace Culture
Fair Wages
Justice, Equity, Diversity & Inclusion
Human Rights
Climate Action
Environmental Stewardship & Circularity
Government Affairs & Collective Action
Complementary Impact Topics
This article will focus on the "Climate action" requirements. This section's criteria are divided into three categories:
1/ The company measures its Greenhouse Gas (GHG) emissions annually.
Criteria to meet in this category are:
Gross Scope 1
Gross Scope 2
Gross Scope 3
Total GHG emissions
GHG emissions by Scope 3 categories (where relevant)
GHG Intensity (measured in metric tons of CO2/$million of revenue), not including the use of carbon credits or offsets
The company improves the completeness and/or accuracy (i.e. spend-based, average-data, hybrid, supplier-specific) of its GHG inventory at least every 3 years. Thus, the company should provide a description of changes to the methodology since the last certification.
GHG emissions accounting should be verified by a third party
2/ The company sets a science based target to keep global warming below 1.5 °C
Criteria to meet in this category are:
The company should set a science-based net zero target to reduce its GHG emissions in line with the climate change mitigation scenario compatible with the 1.5°C goal of the Paris Agreement.
The company should have an interim net zero target to reduce its Scope 1 and 2 emissions in line with the climate change mitigation scenario compatible with the 1.5°C goal of the Paris Agreement and continues to set interim targets for reduction milestones every five years until the net zero target is reached.
If different from the year of the first certification, the company should provide its baseline year and GHG emissions (Scope 1, Scope 2 and all relevant categories of Scope 3) which it will use to measure progress on its emission reduction targets, measured with the following indicators:
- Gross Scope 1
- Gross Scope 2
- Gross Scope 3
3/ The company implements a climate transition plan.
Criteria to meet in this category are:
The company should define a climate transition plan to reach its net zero target to contribute to net zero emissions globally.
The company should incorporate just transition into its climate transition plan.
The company should conduct a climate scenario analysis and incorporate the findings into the climate transition plan.
If an incentive remuneration scheme exists, executive compensation is in part tied to reaching the climate targets.
The company should engage in climate advocacy.
The company should make progress on its climate transition plan.
The company should take action for a just transition
The company should publicly disclose its progress on its climate transition plan annually
For sole proprietor and micro, small and medium companies, only 2 criteria should be met :
The company should define a climate transition plan to reach its net zero target to contribute to net zero emissions globally.
The company should make progress on its climate transition plan.
👉 For more details, see B-corp requirements on climate action