Evolving B Corp certification: new standards and practical implications for companies

Introduction

In this article, we consider the B Corporation or B Corp certification, highlighting the recent changes that have been made to the certification system. We also provide an overview of the new standards and assess the practical implications for companies.

What is a B Corp?

A B Corp is a company certified by B Lab as meeting specified standards relating to social and environmental factors, transparency and accountability. B Lab is the non-profit organisation behind the B Corp movement and certification process. From an Irish perspective, B Lab Ireland was founded in 2023. It is part of the larger international network that implements standards, policies, tools, programs and certifies B Corps.

In order to receive B Corp certification, a company must complete a B impact assessment. This analyses whether a company meets minimum mandatory requirements to be certified as a B Corp. At the end of the certification process, after the B Impact Assessment has been completed, the company must sign a B Corp agreement. This agreement is a contract where the company agrees to meet B Lab’s certification terms, including recertification requirements, performance standards, transparency and legal requirements. In 2025, there were over 9,500 companies with B Corp certification in the world, with 65 of these located in Ireland.[1]

What the prior framework looked like

Prior to 2026, the B Corp certification framework was based on three requirements:

• achieving a minimum score of 80/200 on the B Impact Assessment
• making a legal commitment to amend governing documents to incorporate stakeholder interests
• publishing an annual impact report on B Lab’s public directory[2]

Key drivers behind the reform

Greenwashing concerns

In recent years, concerns have been raised about the credibility of the B Corp certification.[3] The B Lab organisation has been accused of greenwashing as companies with poor sustainability track records received certification. Following this criticism, a number of long-standing B Corp companies protested, requesting stricter certification standards. Some ultimately abandoned their certifications due to authenticity concerns.[4]

Lack of ongoing performance requirements

Under the previous framework companies could achieve certification without demonstrating ongoing improvements. Although recertification was required, companies merely had to maintain a score of at least 80 points instead of demonstrating that they were maintaining or improving their performance across each of the areas of assessment. For example, under the previous framework, a company could commit to paying employees a fair wage but there was no further requirement to seek to be extend this across the entire supply chain.

Alignment with regulatory developments

The overhaul is also intended to align with regulatory changes being implemented in the EU. Measures such as the Empowering Consumers for the Green Transition Directive (ECGT) require verification of sustainability related claims. Prior to the introduction of the new B Corp framework, certification was contingent on self-reporting.[5] According to B Lab, the changes made to its certification framework mean that the B Corp certification will now meet the legal requirements for a valid sustainability label under the ECGT.

Recent changes made to the certification system

In 2026, B Lab introduced a revised certification framework. The new framework moves away from the point scoring system and instead requires companies to satisfy minimum requirements across seven impact topics. Under the previous framework, companies would earn points for positive practices when responding to questions in the assessment. Points awarded in this assessment were split between operational impact points and additional points from Impact Business Models which reflected how a business is designed to create positive stakeholder outcomes. There were five impact areas that were assessed – governance, workers, communities, environment, and customers. However, there was no minimum points requirement per area.[6] This process has been enhanced in the new framework as companies are required to manage their impact holistically instead of focusing on scoring points in specific areas.

The seven impact topics are:

• Climate action: Companies must take steps to reduce greenhouse gas emissions. Large companies will be required to assess their greenhouse gas emissions and have those assessments independently verified. They will also have to establish approved science-based targets. Small and medium-sized enterprises should create practical climate action plans focusing on areas such as energy consumption, travel, and procurement. To ensure transparency, all companies must publish their plans and progress.
• Purpose and stakeholder governance: Companies should align their purpose with the B Corp legal requirement, implement stakeholder governance mechanisms, establish grievance mechanisms, create a responsible marketing strategy, set measurable goals and provide progress updates on these goals.
• Environmental stewardship and circularity: Companies should adopt the B Corp Environmental Stewardship & Circularity requirements. These requirements include knowing the impact that the company has on the environment, creating a strategy to address negative impacts, implementing circularity, taking action to mitigate negative impacts and working with suppliers to achieve environmental objectives.
• Human rights: Companies should make a commitment to respect human rights, identify and prioritise serious risks, act when harm is found, reshape supply chains, conduct human rights due diligence and adopt stakeholder governance.
• Fair work: Companies should implement fair wages, ensure that employees have a voice and create a strong workplace culture.
• Government affairs and collective action: Companies should adopt a leadership role in fostering shared understanding and implementing solutions for an equitable, inclusive, and regenerative economy.
• Justice, equity, diversity and inclusion: Companies should ensure that internal policies protect LGBTQ+ staff, offer inclusive benefits and employee support groups, support inclusive suppliers or civil society groups.

The new certification process also requires third-party verification and a commitment to continuous improvement. The standards require that an annual impact report highlighting the company’s social and environmental performance be made available to the public using a third-party standard such as the B Impact Assessment or Global Reporting Initiative.

Recertification requirements

Existing B corps have been recertifying since February 2026. Companies have until September 2026 to recertify or sign an amendment committing to future certification.

The recertification process requires companies to:

• complete and submit a self-assessment covering legal requirements, a risk profile assessment, transparency and eligibility criteria
• identify Year 0 requirements that will be met and implement improvements for unattainable requirements
• provide supporting evidence and updates
• undergo third party verification.

Certified companies will be subject to ongoing surveillance audits and a one-off audit in year 3. Audit frequency will depend on company size and sector. Micro and small companies will be audited during Year 0, 3, and 5. Large companies are likely to be audited on a more frequent basis. The purpose of the surveillance audit is to ensure that companies are complying with the continuous improvements that they have committed to achieving during the certification process.

Practical implications for companies

The revised system introduces higher thresholds for existing and new companies to meet in order to be certified as a B Corp.

The more extensive requirements mean that existing B Corps may be at risk of losing their certification. Under the previous system, companies had to reach a minimum of 80 points to receive certification. The B Corp database suggests that hundreds of B Corp companies are only marginally above this 80-point threshold. This means that significant improvements will need to be made if they wish to remain certified. [7]

Large companies will be subjected to more extensive requirements including enhanced supply chain traceability, gender wage gap reporting and the adoption of science-based emission targets. This increased scrutiny means that companies who were previously able to offset weaknesses in one area will no longer be able to do so.

Conclusion

The 2026 overhaul of the B Corp certification system represents a shift from a flexible points-based framework to a more rigorous holistic model that requires third-party verification. These reforms reflect a broader trend focusing on the verification of sustainability claims. While the shift may increase the compliance burden for companies, it significantly enhances the credibility of the B Corp certification.

With thanks for Lauren Murphy for her assistance in the preparation of this article.

For further information in relation to this topic, please contact Jill Shaw, ESG & Sustainability Lead, Erin Ward, Solicitor, or any other member of the ALG ESG & Sustainability team.

Date published: 30 June 2026

[1] B Corps in Ireland: Sustainable Irish businesses as a force for good | Ireland.ie

[2] After you certify - B Lab UK

[3] The struggle for the soul of the B Corp movement

[4] The global environmental award hit by accusations of greenwashing - BBC News, Dr. Bronner’s Statement on Dropping B Corp Certification - Dr. Bronner's

[5] As greenwashing soars, some people are questioning B Corp certification - BBC Worklife

[6] How the V1.6 B Impact Assessment is Scored : Knowledge Hub

[7] Dozens of firms risk losing B Corp status after standards overhaul | Ethical business | The Guardian