What are B Corp’s Carbon Reduction Targets?

Whilst I (Charlie) am not generally a fan of certifications per say, B Corp, in my view, is one of the best. The B stands for benefit. The idea is that companies change their corporate governance structure to benefit all stakeholders, not just shareholders. It grades companies on their social and environmental performance and encourages transparency. You can see why I’m a fan.

How does a company become a B Corp?

To become a B Corp, companies must undergo the B Impact Assessment which currently covers five key areas: environment, governance, workers, community and customers. To achieve B Corp status a company needs to get 80 points or more from their responses to questions in these categories. 

That said, at the time of writing, B Corp has released news that they are evolving their certification standards which will likely come into force in early 2024. From then, companies will have to meet minimum standards across 10 key areas: purpose and stakeholder governance; worker engagement; fair wages; justice, equity diversity and inclusion; human rights; climate action; circularity and environmental stewardship; collective action; impact management; and risk standards.

What carbon measurements are required?

Current questions include how your company manages its scope 1 and 2 emissions, what your total GHG emissions are, your company’s carbon intensity and any carbon credits bought. To understand what scope 1, 2 & 3 emissions are, check out this article.

The environmental impact points awarded on your assessment are based on your business type and size. The important point to remember is that by measuring your carbon footprint, you set a baseline from which to reduce it. Then, when you reduce your emissions, you can earn more points towards your B Corp assessment since B Corp encourages the setting and meeting of targets. This is particularly important for when you re-certify after 3 years.

All good so far, right?

But should B Corp be more ambitious?

I think so, and here is what I would suggest…

Every company should measure and report on their scope 1 & 2 emissions. On top of that they should have to cover certain ‘easy-to-quantify’ scope 3 emission categories such as business travel. There could be bonus points for those who have reported on those emissions for a while and actively made changes to reduce them. Extra bonus points could be awarded if the company has signed up to Science Based Targets. 

Now the tricky part is that most companies’ carbon footprints come predominantly from the thing they sell, which is likely not covered by my suggestions above. 

Here, B Corp needs to foster an environment where businesses are incentivised to continuously redesign products to have a lower carbon footprint. Actions should get more points than policies which is how it is currently scored. 

To do this companies should state the carbon footprint of what they sell (following the GHG protocol). Bonus points again if they have reduced the average carbon footprint of each item sold over the last couple of years. 

Extra bonus points could be awarded to companies communicating their carbon reduction plan. 

This one’s a bit geeky but perhaps extra extra bonus points could be awarded to companies clearly stating how they need to improve their calculations as well as their emissions. Too far? Ok, but the point is that as carbon accounting advances, calculations will evolve to rely less on assumptions and estimates to become more and more accurate, and in my view B Corp should strive for this too.

Finally, on top of our suggested changes, companies would only receive B Corp points for offsetting if they are making material internal changes to reduce their existing emissions first. 

How ecollective can help with B Corp certification

B Corp status is famously difficult to achieve due to the quantity and breadth of questions they ask. Companies working with ecollective can consider the environmental assessment section complete since we provide the answers to their questions in a copy and paste format to make the assessment process that little bit easier and quicker. 

Ecollective clients that are B Corp certified include Much Better Adventures, Canopy & Stars and Joro. 

Contact us if we can help you with your B Corp and / or carbon reduction journey.