Continuous Improvement in a

Changing Business Landscape

In early 2024, B Lab released their second draft of the new standards for B Corp certification. The new B Corp certification standards are the largest single change of the standards and the process by which standards are measured in B Lab’s 17 year history. The new standards reflect the profound changes in the business landscape that have occurred since version 6 of the standards were released in 2019. While current and aspiring B Corps are looking to the new draft standards for compliance purposes, the B Lab standards, now more than ever, provide a roadmap for continuous impact improvement. Using the draft standards in this way allows members of the B Corp Community to facilitate the transition to B Lab’s new standards when the time comes for them to recertify, and presents a model for how mission-driven companies can adapt their impact strategy to today’s business environment. For an introduction to the major changes coming with the new standards, check out our blog post Introduction to the New Standards. 

New Standards Consultation Summary Report Reflects Community Feedback on Draft Standards

Between January and March 2024, B Lab solicited feedback on the latest draft of the B Corp standards. Through an online survey and hundreds of focus group meetings, B Lab Collected over 16,000 pieces of qualitative feedback on the new standards. This feedback was summarized in the Second Consultation Summary Report released on September 24th. In response to this community feedback, B Lab has committed to making substantial changes to the standards, summarized below. 

Is Your Company Ready for B Lab’s New Standards?

Through our analysis and inventory of the changes coming with B Lab’s new standards, our team has put together a quiz that highlights some of the most important changes coming with B Lab’s new standards. We have identified a set of universal prerequisites to certification under the new standards to help B Corps assess their readiness for these upcoming changes. Get ahead of the curve and take our New Standards Readiness Assessment today to see where you stand.

Need Help Preparing for the

New Standards?

As B Lab evolves the B Corp standards, we too are evolving to support the B Corp community and non-certified companies that use the standards as a framework for measuring and improving impact. In addition to supporting companies with impact analysis, improvement, reporting, B Corp certification and recertification, we are rolling out an innovative and valuable new service: Gap Analysis. The first consulting firm to create a methodology that sequences the standards for easier planning and adoption, IGP’s consultants are leading experts on the forthcoming standards and what current B Corps need to do to meet them. Our Gap Analysis service is designed to identify key areas where businesses can improve their impact and remain in alignment with the evolving B Corp standards.

ACTION-ORIENTED FRAMEWORK
IGP has transformed B Lab’s new standards into a step-by-step framework that guides companies in identifying the prerequisite decisions or actions necessary to meet each sub-requirement. By also translating these sub-requirements from B Lab’s process-oriented criteria to concise action-oriented questions, IGP enables companies to clearly see their gaps, prioritize actions, and plan improvements without being prescriptive.

Contact us to talk about your path to meeting B Lab’s new standards.

New Research: Return on Investments in Sustainability

This summer, the IGP team conducted a research project at the request of a prominent investment firm to investigate whether pursuing a sustainable business strategy can lead to enhanced profitability. This question is top of mind for companies charting their path to meeting B Lab’s new standards. While money invested in sustainability does not lead to positive short term returns in all cases, we utilized a competitive strategy framework to demonstrate that a wide range of companies can utilize sustainability to augment their competitiveness regardless of the competitive strategy that they adopt. We examined the three most common competitive strategies identified in academic literature to demonstrate that sustainability can improve financial outcomes in a wide variety of business environments. 

1. Cost Leadership

   Under the cost leadership approach, firms aim to gain competitive advantage through narrow margins and low costs. Companies adopting this approach can benefit from the efficiency gains resulting from investments in sustainability. For example, Walmart made significant investments in solar energy, LED lighting, and efficient trucking which has led to a significant reduction in CO2 emissions, as well as hundreds of millions of dollars in reduced costs.

2. Differentiation

   The differentiation approach emphasizes the benefits of standing out from the competition in crowded markets. By emphasizing sustainability efforts, firms utilizing this approach can differentiate themselves from competitors. Companies such as Patagonia have benefited from sustainability as a way to differentiate from the competitive outdoor apparel industry.

3. Focus

   The focus strategy relies on targeting a narrow but passionate segment of the market. Firms adopting the focus strategy can target customers that care deeply about environmental issues with heightened willingness to pay for sustainable products. Companies like Cotopaxi have benefited from this by reusing scraps of material to create multicolored garments and bags that stand out. Cotopaxi has become popular among young, outdoorsy consumers who value uniqueness and sustainability.

For more details about how sustainability can be used to enhance profitability or deepen your relationship with consumers, check out the full presentation including links to all sources referenced.

Next Steps…

With the new standards approaching, now is the time to reassess your approach to social responsibility at your company. While the changes will be sweeping, members of the IGP community are well positioned for success in the next iteration of B Lab’s standards for certification. At the same time, our research shows that there might even be financial gains to upping your sustainability game.