Navigating the Environmental Reporting Requirements of the New B Lab Standards

The B Corp certification has long been a hallmark of businesses committed to high social and environmental performance. In response to growing concerns over greenwashing and the need for more rigorous standards, B Lab is overhauling its certification process. Effective in 2024, the new standards introduce mandatory minimum requirements across seven key areas, including climate action and environmental stewardship. These changes aim to enhance transparency, accountability, and the overall impact of certified companies 

Key Environmental Reporting Requirements

1. Climate Action

Under the new standards, B Corps are required to:

• Measure greenhouse gas emissions annually, including Scope 3 emissions.

• Set science-based targets aligned with the goal of limiting global warming to 1.5°C above pre-industrial levels.

• Implement a climate transition plan that includes scenario analysis to understand the impacts of climate change on the business and its stakeholders 

These requirements mark a significant shift from the previous point-based system, emphasizing actionable and measurable climate commitments.

2. Environmental Stewardship & Circularity

B Corps must demonstrate:

• Identification of environmental impacts through assessments such as Environmental Management Systems (e.g., ISO 14001) or materiality assessments.

• Strategies to address environmental impacts, including circular economic initiatives.

• Collaboration with suppliers and customers to achieve environmental objectives.

• Transparency and traceability in the value chain 

These actions aim to minimize negative environmental impacts and contribute positively to the circular economy.

3. Differentiated Requirements Based on Size and Sector

The new standards tailor environmental reporting requirements based on company size and sector:

• Larger companies must conduct scenario analyses and engage in climate advocacy

• Service sector companies with minor environmental footprints are required to consider the environmental and human rights impacts of new clients and projects.

This approach ensures that the standards are relevant and achievable for businesses of all sizes and sectors.

Aligning with Global Reporting Frameworks

B Lab is working to align its standards with international regulations, such as the European Sustainability Reporting Standards (ESRS), to streamline compliance for companies operating in multiple jurisdictions. This alignment helps businesses avoid duplication of efforts and ensures that B Corp certification remains relevant in a global regulatory landscape.

Preparing for the New Standards

To align with the new environmental reporting requirements, B Corps should:

• Measure and report emissions across all scopes, including Scope 3.

• Set and communicate science-based targets for emissions reduction.

• Develop and implement climate transition plans that include scenario analyses.

• Assess and manage environmental impacts through formal systems and strategies.

• Engage with stakeholders to promote environmental objectives.

By proactively addressing these areas, companies can not only meet the new B Corp standards but also contribute meaningfully to environmental sustainability.

The updated B Corp standards represent a significant step toward ensuring that certified companies are genuinely committed to environmental stewardship. By embracing these rigorous requirements, businesses can enhance their credibility, drive positive environmental impact, and lead by example in the transition to a sustainable economy.