B-Corps - an idiot’s guide

Feb 28

“We care about the planet” hits differently when someone checks

Increasing pressure on companies to prove they’re not just profit machines. B-Corps are now in the spotlight.

ESG might be seen a fluff campaign reserved just for the boardroom. Are B-Corps the next step forwards? or just another virtue signal.

Lets unpack this.

An unromantic history of B-Corps

The B-Corp movement started in 2006 in the US, founded by B Lab. The idea? Profit is great. But maybe don’t trash the planet or your workforce in the process.

Instead of shareholder primacy being the only game in town, B Lab introduced the concept of measuring a company’s total impact — on employees, communities, the environment and governance.

What began as a niche ethical experiment is now firmly on the boardroom agenda.

Globally, there are now over 8,000 certified B-Corps. The UK accounts for roughly 2,800 of them — one of the fastest growing B-Corp communities worldwide. Annual growth has been sitting somewhere in the 30–40% range in recent years.

Notable UK brands currently certified include:

Innocent Drinks (certified 2018)
Oddbox (certified 2020)
Honest Mobile (certified 2020)So how does one get a shiny B-Corp badge?

So yes — this isn’t just your local east London scented candlemaker.

A new shiny B-Corp badge?

Enter B Lab.

Let’s be clear: this is not a government body. Not a regulator. Not Companies House with a conscience.

B Lab is a private non-profit that runs the B Impact Assessment and sets the certification standards.

In simple terms? The B Impact Assessment is a third-party credibility framework.

And B Lab? They’re the ones marking the homework.

You fill it in.
You provide the evidence.
They decide whether you actually meant it.

Becoming a B-Corp

This is what you are signing up for..

Step 1 – Eligibility & Foundational Requirements

You create an account and complete the foundational requirements.

This is the “are you even philosophically aligned?” stage.

You must initally:

Be legally incorporated
Be a for-profit company trading for at least 12 months
Not operate in a sector fundamentally at odds with the framework’s ethics.

Later steps that need action:

Amend your Articles of Association to formally commit to creating positive impact and considering stakeholder interests (yes, this is a legal change)
Sign the Declaration of Interdependence — formally acknowledging that your business doesn’t exist in isolation, and that it has a responsibility to people, communities and the planet.

Step 2 - The B Impact Assessment (New Framework)

Under the newer framework, businesses must meet baseline and mandatory requirements across key impact areas including:

Purpose & Stakeholder Governance
Climate Action
Justice, Equity, Diversity and Inclusion
Government Affairs and Collective Action
Fair Work
Human Rights
Environmental Stewardship and Circularity

Translation: it’s broad, it’s detailed, and it will expose a company’s blind spots.

Step 3 - Assurance review

Your application goes to a reviewer appointed through B Lab’s system (they operate the assurance process directly).

For SMEs, expect 3–6 months. Larger or more complex businesses? 6–12 months is realistic.

There has been backlog pressure since the latest framework was released.

During this stage, expect:

Evidence requests
Follow-up questions and Clarifications

and lots of uncomfortable realisations.

Step 4 - Feedback & Corrective Action

If gaps are found (and they usually are), you’ll be required to fix them.

That could mean policy updates, governance tweaks, documentation upgrades or operational changes.

Corrective actions can take 1–3 months depending on how much work you’ve left unfinished.

Step 5 - Conditional Approval & Legal Updates

If you pass assurance, you’ll receive conditional approval via the B Impact portal.

At this stage, you must:

File updated Articles of Association at Companies House
Formally embed stakeholder governance in your legal framework

This is not a symbolic gesture, it is the legal commitment to shareholders. B Labs give you the precise legal wording to use.

Step 6 - Certification

Once legal updates are confirmed:

You sign the B Corp Agreement
You gain the right to use the B Corp trademark
You formally commit to ongoing compliance

And yes, you sign the Declaration of Interdependence — the philosophical bit that says business should serve people, communities and the planet.

Step 7 – The Fees (Because Nothing Is Free)

Fees (2025/26) are based on annual revenue.

One-off fees cover submission and verification. These are payable in Year 1 and again at each recertification cycle (typically every three years).

Annual certification fees are paid every year to maintain the designation.

  
    Annual Revenue
    One off fees (Year 1)
    Approx Annual Fees
    
    <£1m
    £560 - £1,280
    £1,000 - £1,500
   
    £1m - £5m
    £1,640 -  £2,000
    £2,000 - £2,500
    
    £5m - £20m
    £4,000 (approx)
    £3,800 - £8,500 Data
    
    £20m - £100m
    £4,000 - £6,000
    £12,000 - £25,000

Ongoing Compliance

Certification runs on a three-year cycle.

You don’t wake up in Year 3 and panic-submit.

Sensible companies:

Embed data collection from Year 1
Review performance by Year 2
Prepare early for recertification

Because standards evolve. Expectations rise. Scrutiny increases.

Why Bother?

Consumers and Investors are watching.

In a recent UK survey, nearly 80% of consumers said they are more likely to buy from companies they perceive as “kind.”

Whether you like it or not, behaviour now drives brand value.

ESG might be seen as simply a manifesto which sits in the drawer of an office desk,

he B Lab certificate is intended to push businesses to adopt robust frameworks, make positive commitments and holds them accountable.

Still thinking about it…

If this hasn’t driven you to therapy and you’re still committed, we can help.

From data gathering to governance updates and submission strategy, we guide companies through it properly.

Not performatively. Properly. In good faith.

Further Reading:

https://www.bcorporation.net/en-us/

https://bcorp.imagerelay.com/flc/90af01f6dcf245479a0213e51a1c2dff/2770553

https://www.bcorporation.net/en-us/standards/performance-requirements/

myledgrteam .