Nicola, thank you for taking the time to answer our questions! You are a Business Sustainability Analyst in the Review Team at B Lab Europe. Can you briefly describe what that means exactly and what you are responsible for?
As business sustainability analysts, we guide companies through the so-called verification phase. In this verification phase, the response options selected during the assessment are verified. During this process, for example, evidence is requested to confirm the selected response options. As business sustainability analysts, we are therefore in close contact with companies to determine how positive impact is created. We help companies to reflect this positive impact correctly in the assessment and the resulting final score at the end of the verification phase determines whether a company becomes or remains part of the B Corp community (in the case of recertification).
Key point “recertification”. All certified B Corporations must undergo recertification every three years at the latest. What do you pay particular attention to in the process?
By and large, recertification is similar to the original certification. An assessment is again completed by the company and the evaluation and verification phases are also completed. In these phases, information is again requested regarding, for example, the company structure and the product and service offering of B Corp. With regard to recertification, particular attention is paid to changes within B Corp.
Has the company’s mission changed? Are new products or new services being offered? Have the existing products or services possibly changed? Among other things, these are important aspects that can influence the positive impact of the company. The recertification can be seen as a new ‘stocktaking’. A lot can change in companies over a three-year period and we want to reflect these changes in the assessment. This can, for example, lead to a new impact business model being applied. An example of this would be a food manufacturer that has introduced additional Fairtrade-certified ingredients within the three years. The positive impact achieved by this implementation is reflected by an additional impact business model in the assessment. Many companies also use this three-year window to improve their own company impact. The assessment tool also offers direct assistance here. For example, companies can create a personal ‘Improvement Report’ in the B Impact Assessment. In this way, many companies improve their positive impact and consequently their score compared to the initial certification.
Do you have the impression that some companies find recertification more difficult than initial certification, and if so, why?
It is difficult to give a general answer to this question. However, there are several aspects that can influence whether companies find recertification more difficult than initial certification. Many companies find it an advantage that they are already familiar with the way the assessment works. For example, existing B Corps already have an understanding of the impact areas, the structure of the questions and the verification process. This can help to make it much easier for B Corps to go through the recertification process. Through the initial certification, companies also know what type of documentation is required. This makes it easier to prepare for recertification. For example, the supporting documents can be better prepared over the course of the three years with a view to recertification. During the initial certification (and each subsequent recertification), companies can also identify opportunities to improve their impact. Over the years, many companies actively use the B Impact Assessment as a tool to integrate certain aspects into their business practices. Another important point is that within three years, not only will corporate practice within B Corp most likely change, but B Lab’s standards will also evolve. Especially with regard to recertifications, it is important to understand that so-called ‘version changes’ occur every three years or so. As a result of such changes, B Corps may, for example, have to answer new questions during recertification that were not asked during the initial certification. The existing standards are changed to ensure that the way in which ‘positive impact’ is defined and evaluated is constantly improved. The level of the standards therefore increases steadily over the years. Recertification can therefore be a challenge for companies whose score was close to the 80-point minimum limit at the time of initial certification. For such companies in particular, it can be interesting to use the assessment as a tool to identify areas where there is potential for improvement. With regard to the upcoming recertification, certain practices can then be integrated to prepare companies for the rising level of standards.
In your opinion, what are the key requirements for companies to get through the process without any major hurdles?
I would like to discuss four aspects that promote a smooth verification process.
- Before the verification phase begins, companies are asked to document the corporate structure. This is an important step, as the company structure and related brands can influence the assessment. If this aspect is documented correctly at the beginning, subsequent changes can be avoided, which would mean additional work. It is important to remember that companies are being certified and not brands as such.
- Another aspect that should ideally be completed before recertification is the amendment of the company statutes. Incorporating the additional paragraphs into the company statutes usually takes time and it is therefore advisable to complete this adaptation in advance. An important tip in this regard; if the company structure contains several companies, it is advisable to contact our community managers to determine which company should complete the adaptation.
- As already mentioned, it is very important that all selected response options can be backed up with documentation. The selection of response options should be based on existing written documentation so that it can be made clear which aspects are integrated into company practice.
- Another aspect that helps to ensure that recertification can be completed without major hurdles is the discussion of potential improvements as part of the assessment. As already discussed, the B Impact Assessment can be used as a tool to improve the positive impact that the company creates. This prepares organizations for the rising level of standards and contributes to a successful recertification process.
The B Corp movement is also known as the “Movement of Improvement”: how important are impact improvements for recertification?
As a Movement of Improvement, we see ourselves as a movement that is continuously learning and improving. The existing standards and processes are changed to ensure that the way in which ‘positive impact’ is defined and evaluated is constantly improved. The level of standards therefore increases steadily over the years. While the minimum threshold of 80 points exists as such, the B Corp movement is about improving the positive impact in terms of social and environmental aspects over time. After the initial certification has been completed and a company has become part of the B Corp community, we encourage companies to integrate the “Movement of Improvement” mindset into their organization. As mentioned, the B Impact Assessment can be used to identify areas for improvement. For example, if a company did not implement an environmental management system during the initial certification, this could be an aspect that can be introduced within the three years in preparation for recertification.
What tips would you give companies that are now preparing for recertification? How much lead time should they allow?
It is helpful to prepare for recertification in advance, as this promotes a successful verification process. The amount of preparation time can vary depending on the size and complexity of the company. Therefore, I share a few general tips below: Firstly, I recommend that after the initial certification, when companies have just engaged intensively with the assessment, they should already be looking strategically at recertification. This allows companies to make efficient use of the three-year period until recertification is due in order to prepare for recertification. For example, it can be helpful to use the “Improvement Report” in the B Impact Assessment as a tool to integrate certain aspects into company practice until recertification. It is important that the selected response options can be documented in the assessment. One tip in this regard is to have documentation ready for the selected response options. This could, for example, already be compiled when the assessment is completed so that the majority of the evidence is already available to the companies during the verification phase. Another tip is to involve internal company experts for the various impact areas right at the start of the recertification process. The B Impact Assessment covers different areas of the company and there is rarely just one person who is familiar with all aspects. It is therefore advisable to work in a team of experts. This promotes, for example, the selection of the right answer options right at the start of recertification. If evidence is then requested during the verification phase, it can most likely be provided because the answer option was selected by experts from the relevant area.
Dear Nicola, a big THANK YOU to you for your time and valuable tips!
Dear B Corps, we hope that we have been able to give you some helpful and valuable insights along the way. If you have any further questions, please get in touch with the B Lab Germany team: germany@bcorporation.eu
