As B Corps will know, right now measuring your carbon footprint is an optional part of the Impact Assessment. Getting to grips with emissions will add to your score, making it easier to meet that initial 80-point threshold, or helping you to pick up points when it comes to recertifying. Ultimately though, emissions measurement is optional.

However, this looks set to change. In this article, we’ll chat through the new rules for tracking emissions under the revamped B Corp Impact Assessment (BIA).

What’s changing with the BIA – a snapshot

Before we dive into emissions management, lets answer some quick FAQs on the new BIA.

Where can I read the new standards?

A draft of the new standards, the 7^th in B Corp history, is available to read here.

Are there likely to be further changes to these drafts?

This is not an early draft, having gone through 2 consultation rounds already. There’s strong consensus that the assessment process fits the bill, with 86% of respondents from the second consultation agreeing that the draft standards align with what they believe it means for a business to meet high standards of social, environmental, and governance performance. As such, it’s likely close to the real deal. Rumour has it the new standards will be fully released by B Corp at the end of of March this year.

When will the new BIA come into place?

At the moment, B Corp are aiming to transition to the new standard in 2026.

Why are the B Corp standards changing?

B Corp periodically updates its assessment criteria to ensure that certified companies continuously improve and stay at the forefront of social and environmental performance.

In order to do this, the standard must stay relevant, keeping up with scientific developments (the latest climate science for instance) and regulations (e.g. the Green Claims Directive). By being interoperable with the other standards companies face, B Corp can reduce unnecessary admin for certifying businesses.

B Corp is also keen to respond to feedback it receives about its assessment process. A good example of this is the aim to streamline the journey to certification, welcome news to current and prospective B Corps everywhere, as an average wait of 6 months for SMEs for verification alone has been a source of frustration.

Will the new BIA look much different?

In a word – yes. The new Impact Assessment will include some big changes and is overall more complex than the rules currently in place.

How is the new BIA different from current standards?

There are 3 main changes to the BIA.

1. A 2-stage process – Foundation vs. Performance Requirements

Prospective B Corps will now go through a 2-step process, first being evaluated versus some ‘foundational requirements’ before getting into the detail of the assessment. The idea is that this ‘foundation’ stage will shift some checks upfront (e.g. eligibility checks, willingness/ability to adopt B Corp’s amendments to Articles of Association). This should save time (and money) by letting those that would ultimately fail to meet the requirements know sooner rather than later, as well as better preparing teams for the rest of the assessment.

 Once the foundation stage has been completed, teams will then be evaluated against the new look Performance Requirements.

2. New scoring system – saying goodbye to the 80-point minimum

 The Performance section of the new BIA moves away from the 80-point minimum total score system, instead setting a minimum threshold in each separate category. So, whereas before you could achieve zero points in a given section (Environment for example) and still get certified as long as you picked up your 80 points elsewhere, in the future teams will have to meet minimum acceptable criteria across categories, effectively 'scoring' more consistently. The idea is to raise the acceptable minimum standard, and prevent cherry-picking.

3. Revamped topics –the new Performance Requirements

The current system of 5 impact areas (plus ‘disclosure questionnaire’ now covered under Foundation Requirements) will be replaced by 9 ‘Impact Topics’. Whilst there’s obvious continuity with the old performance criteria, the new draft is more rigorous and detailed. Here are the 9 topics:

• Purpose & Stakeholder Governance
• Workplace Culture
• Fair Wages
• Justice, Equity, Diversity & Inclusion
• Human Rights
• Climate Action
• Environmental Stewardship and Circularity
• Government Affairs and Collective Action
• Complementary Impact Topics

Splitting out the old Environment section

We’re now going to get stuck into the focus of this article: changes to rules around B Corps measuring and managing their carbon emissions. First thing to note is that the the old ‘Environment’ section will be split into 2 Impact Topics.

The new Climate Action topic covers emissions management (quantifying your carbon footprint, and setting targets and strategies to reduce it overtime). ‘Environmental Stewardship and Circularity’ covers what is more traditionally thought of as ‘environmental management’, aligning with the sorts of topics covered by ISO 14001 certification. Let’s dive into the Climate Action topic!

The new B Corp Climate Action Topic

The Climate Action Topic (abbreviated to CA in the new draft standards) consists of 3 ‘sub-requirements’ as shown below:

A key feature of the new standards is that within Climate Action (as with each Impact Topic), the goals or ‘sub-requirements’ that need to be met differ by company size and sector. By doing this, B Corp is recognising that businesses face different operational barriers in meeting B Corp’s criteria (a large organisation with an in-house sustainability team vs. the more limited resources available to an SME for example). If you head to the new draft standards for Climate Action, you’ll see you can a filter which you should use to show the criteria that apply to a businesses of your size, in your sector. Here’s a table that shows B Corp’s company size boundaries under the new standards, so that you have it to hand. This is a departure from relying solely on employee numbers.

B Corp Impact Topic rules for teams <250 or revenue <$75 million ('Medium' businesses and below)

For businesses with less than 250 FTEs in your team, or revenue less than $75m, the sub-requirements under Climate Action are the same. Below you’ll see a summary of the sub-requirements (you can read them in detail here):

CA1.1 – Emissions measurement

• Annually measure a full scope carbon footprint in line with the GHG Protocol.
• Include a GHG intensity metric (metric tons of CO2/$millionof revenue).
• At each recertification, demonstrate how you have improved the accuracy of your GHG inventory.

CA2.1 – Target setting

• Set a science-based Net Zero target in line with the 1.5°C goal of the Paris Agreement. This is a long term target – 2050 at the latest, including all Scopes.
• Set an interim target for Scopes 1 and 2, starting with 2030. You’ll need to review and reset this interim target every 5 years.
• Businesses with <50 FTEs can choose to set an intensity-based interim target (rather than absolute emissions). This option will likely be extended to businesses operating certain Impact Business Models, though the rules here are yet to be clarified at the time of writing.

CA3.1 – Defining a Climate Transition Plan

• Define a ‘climate transition plan’ to achieve your stated targets. The plan must:
  • Cover all major GHG emissions.
  • Outline mitigation actions.
  • Assign the resources necessary to achieve it (e.g. budget, team).
  • Include stakeholder engagement (e.g. your value chain).
  • Align your business model with the company's climate goals.
  • Have approval from the highest governing body.
• Update your transition plan every 5 years (alongside your interim target).
• If you have achieved Net Zero, you will have to evidence your investment in verified carbon storage or removals. These offsets must be maintained over time.

CA3.6 – Evidencing progress on your Climate Transition Plan

• At recertification, evidence actions take in line with your climate transition plan
  • i.e. list out actions you've taken, alongside any supporting documentation.
• Set out any challenges over this period, and key learnings.

For 'Medium' businesses and below, that's a wrap! To summarise, you'll need to:

1. Annually measure a full scope carbon footprint in line with the GHG Protocol.
2. Set long-term and near-term SBTi-aligned Net Zero targets, and keep those near term targets up to date.
3. Build a pathway to your decarbonisation targets, and report on progress as you recertify.

B Corp Impact Topic rules for teams 250-999 or revenue >$75 million & <$350 million ('Large' businesses)

If your organisation falls under B Corp's 'Large' category, and you provide services with what B Corp defines as a 'minor environmental footprint', you'll need to meet the standards described as above. Not sure if you fit that category? Here's B Corp's definition of a business with a 'minor environmental footprint:'

A company that earns revenue through the provision of non-physical services. Company does not sell a physical product or does not own/operate a retail, wholesale, or manufacturing facility. (e.g. law firms, marketing/communications agencies, software company).

Large businesses that don't fall into this category will also have to meet the additional criteria (summarised below) under the new rules. This includes manufacturers, agricultural businesses, and retailers/wholesalers - head here for a full list of B Corp's sectors.

CA 1.2 - Verification

• Your full scope footprint must be annually verified by an independent third-party (like Seedling) to meet the GHG Protocol's methodology.

CA3.2 – Just transition plan (establish during certification)

• Engage your team in climate transition plan (don't let this be a siloed exercise).
• Evaluate the impact of the plan, both positive and negative, on stakeholders.
• Establish a plan to consult those most likely to be negatively affected.

CA3.4 – Executive remuneration

• Include climate targets in any existing executive remuneration scheme, for at least 1 executive team member.

CA3.7– Just transition action (as you recertify)

• Report on the progress of your plan established under 3.2. What actions have you take to ensure a just transition, including:
  • Engaging your team
  • Responding to and incorporating feedback from at-risk stakeholders.‍

CA3.8 – Annual disclosure‍

• Make publicly available (e.g. on website) your climate transition plan, including full-scope emissions data, targets, and actions taken.

Wrapping up - how Seedling can help

At Seedling, we've got you covered when it comes to the Climate Action Topic of the new B Corp standards. We help teams to measure a full-scope carbon footprint, set SBTi-aligned Net Zero targets, and build actionable climate transition plans, easily, affordably, and with one-to-one support from an expert. Any questions, we'd love to chat!