B Corp: A badge of sustainability

In today’s dynamic business landscape, profit is not the primary objective for many Canadian businesses. Consumers, investors, and even employees are increasingly seeking companies that prioritize social and environmental responsibility alongside financial success. So, how can your brand be a mission-driven company that balances purpose and profit? One option is earning a B Corporation (B Corp) certification.

The ‘B’ in B Corp stands for ‘benefit for all,’ signifying that the certified business prioritizes the well-being of people and the planet along with financial success.

What is it?

In essence, B Corp certification is a third-party verified standardized designation that indicates a business displays a certain level of positive performance on various ESG indicators.

Administered by the non-profit B Lab, B Corp certification sets rigorous standards for businesses across various industries and geographies. By meeting high benchmarks of social and environmental performance, transparency, and legal accountability, B Corps classify themselves as leaders in the search of a more sustainable and equitable world economy.

Change agency Decade Impact’s chief strategist, Kristy O’Leary, said, “B Corp is a social movement, like any great social movement of the past. It is a small community of really dedicated people who are trying to leave something better.”

The road to becoming a certified B Corp is complex, based on the unique characteristics of individual businesses.
Companies of all sizes are eligible for certification if it is a for-profit entity, have at least one year of operations and meet the below requirements.

Score of 80+

At the heart of B Corp certification lies the B Impact Assessment, a comprehensive evaluation tool measuring a company’s performance across five key impact areas: workers, customers, environment, community, and governance. Companies must score 80 or above. B lab verifies the company’s score based on the documentation provided. The assessment also evaluates risk in terms of a company’s level of involvement in controversial industries and practices. The median score is currently 50.9.

Legal requirement

The company should also make a legal commitment by changing their corporate governance structure in order to be accountable to all stakeholders, not just shareholders, and achieve benefit corporation status, if available in their jurisdiction. This shift towards stakeholder governance ensures profit maximization does not come at the expense of social or environmental well being.

Transparency

The company should exhibit transparency by allowing information about their performance, which is measured against B Lab’s standards, including verified final score, to be publicly available on their B Corp profile on B Lab’s website.

Process

The pathway to becoming a Certified B Corp varies, as it depends on a company’s size and complexity. Typically, it involves several key steps, as outlined below.

Firstly, companies must determine how to integrate stakeholder consideration into their governance structure, tailored to their location and corporate setup. They then undergo a risk review and baseline requirements assessment. The latter is particularly relevant for MNCs.

Next, companies gather supporting documentation and data, and proceed to take the B Impact Assessment online. Following this, they establish a company profile and answer the disclosure questionnaire. This helps them learn their baseline score and prioritize areas of improvement.

Upon achieving a score of 80 or above, companies submit their B Impact Assessment for review and enter the evaluation queue, where B Lab analysts assess their eligibility for certification.

Following verification and upon necessary documentation, companies may enter the post-verification stage, sign the B Corp agreement, and achieve certification.

To maintain the certification, companies must re-certify every three years and pay the annual certification fee.
“Every company, whether they get certified or not, should at least ask themselves all those questions. You cannot ask yourself 400 questions and not be changed,” said O’Leary.

Why should you do it?

“Being a good brand isn’t necessarily going to make everyone pay attention to you. But being a good brand, and being a good storyteller is that sweet spot,” explained O’Leary.

However, the benefits of B Corp certification extend far beyond mere recognition. By joining the B Corp community, businesses gain access to a global network of like-minded organizations committed to driving positive change. Moreover, B Corp certification serves as a powerful tool for differentiation, attracting mission-aligned customers, investors, and talent.

Certified B Corps in F&B manufacturing: Manitoba Harvest

Manitoba’s Manitoba Harvest has been a B Corp for a decade since January 2014.

“We became a B Corp 10 years ago…hemp is a product that really has sustainability at its core,” said Jared Simon, president of Manitoba Harvest.

Recently, the company got recertified with a score of 100.2.

“We’re (proud to get) our highest score ever. We exceeded 100, which is really hard to do. It shows continuous improvement in what we do as an organization,” Simon added.

He shared that increased reporting, transparency, and commitment to the company’s core values apart from focusing on regenerative farming helped Manitoba Harvest improve their score during the recent recertification process.

For Simon, the biggest advantage of B Corp certification is credibility, especially among employees.

“There is a huge benefit amongst our employees in being part of a B Corp. It helps us with employee retention and employee recruitment. People want to be part of something bigger than just selling a product,” he said.

Simon urged companies that are interested in pursuing B Corp certification to “rely upon other companies who are already in the space.”

“You cannot do it as a side interest. It takes financial commitment as well as commitment in terms of people who care about it and who will work on it,” he said.

Earth Group

Alberta’s Earth Group has been a B Corp since June 2018. In its latest recertification, the organization scored 101.9 points. Its motive for getting the certification was to display authenticity and transparency in its practices.

Matt Moreau, founder of Earth Group, found the B Corp certification process “pretty rigorous”.

“It made us look at a lot of the things that we were doing, put new policies in place and examine the way we operated as a company. We wanted to do that just to get to be able to show both consumers and corporations that we are who we say we are and what we’re doing is real,” Moreau added.

He stressed a B Corp certification was important because many retailers are looking to create exclusive sections for products manufactured by B Corps.

Matt Moreau (second row, right), founder of Earth Group, with children in a classroom in Sri Lanka. The company funds UNWFP’s school feeding programs. Photo © Earth Group

Portofino

British Columbia’s Portofino got its B Corp certification a year ago in April 2023 with a score of 81.9.

Matt Cimon, president of Portofino, said that the certification is a “commitment to do better”.

“B Corp is a commitment because each time a company recertifies, the bar goes higher. So not only do you have to show improvement, but you also now must meet higher standards,” Cimon said.

To meet the certification standards, Portofino enacted new policies, such as increasing the pool of local suppliers.

Bakery goods manufacturer Portofino started sourcing more of its ingredients locally in order to meet certain B Corp certification requirements. Photo © Portofino

Cimon believes companies should be interested in ESG impact certifications like B Corp because “customers are looking for it.”

“They have a much better sense of what they want to buy and the environmental impact of the products they buy. It’s being driven by the consumer side of things, which ultimately is great because that’s going to make companies change what they do,” he said. “Companies that don’t begin the steps now, whether through certification or just education, are going to feel very left behind in five to 10 years as things are moving quickly. It’s hard and not something that you can do in a couple of weeks. We’re hoping to encourage other food companies to jump on board.”

Partake Brewing

Ontario’s Partake Brewing got its B Corp certification six months ago in November 2023 with a score of 81.1.

The B Corp certification is a badge of sustainability and an honour for Partake Brewing. Photo © Partake Brewing

Robert Vincent, VP of operations, said the certification represents a “badge of sustainability and honour.”

“Less than 0.5 breweries in North America are B Corp certified. We’re really proud to be among that select group of companies that are really putting sustainability first,” Vincent said.

Partake Brewing was one of the first brands to move away from plastic rings on beer cans. Additionally, its committed to purchasing a certain percentage of raw materials from within 200 km of the production facility.

Vincent advised interested companies to plan ahead.

“You must prepare many years before you apply because several of the areas are things that you can’t just change overnight. For example, there’s a question in the application process that talks about how many of your suppliers are within 100 or 200 km of your end customer. You can’t switch suppliers overnight,” he said.

For Café William, the B Corp certification is akin to committing itself to creating a better company for employees and the local community. Photo © Café William

Café William

Quebec’s Café William got its B Corp certification in February 2024 with a score of 89.1.

For them, B Corp certification is akin to making a commitment to create a better company for employees and the community, said Rachel Ladouceur, senior marketing director at Café William.

“I think it’s a way to commit and stick to your commitments. It helps you elevate your standards and make the right choice, not the easier one,” she said.

As social and environmental responsibilities increase, B Corp certification helps businesses balance purpose and profit and increase their brand value.

This article was originally published in the June/July 2024 issue of Food in Canada.