What exactly do we have to do differently now? A comprehensive guide to B Corp's New Requirements
Introduction: The Shifting Landscape of B Corp Certification
If you're like most purpose-driven business leaders, you've likely heard about the significant changes to B Corp certification standards in 2025. These updates represent the most substantial evolution of the B Impact Assessment (BIA) since its inception, leaving many companies wondering: what exactly has changed, and what do we need to do differently?
This comprehensive guide cuts through the confusion to provide clarity on the practical steps your organization needs to take to adapt to these new requirements.
Key Changes That Demand Immediate Action
1. Mandatory Climate Commitments
What's changed: Climate action has shifted from an optional scoring opportunity to a mandatory requirement. All companies, regardless of size, must now develop and implement a climate action plan with science-based targets.
What you need to do differently:
Conduct a comprehensive greenhouse gas (GHG) inventory covering Scope 1, 2, and material Scope 3 emissions
Set specific emissions reduction targets aligned with a 1.5°C pathway
Develop a detailed implementation roadmap with clear milestones
Establish monitoring protocols to track and report progress annually
Tools to leverage: B Lab has introduced a new Climate Action Manager tool that integrates directly with the BIA platform, simplifying emissions tracking for small and medium enterprises with limited sustainability expertise.
2. Enhanced Stakeholder Governance Requirements
What's changed: The governance section now requires formal mechanisms for stakeholder voice and impact accountability, moving beyond general mission alignment.
What you need to do differently:
Update your Articles of Association or equivalent governing documents to explicitly protect stakeholder interests (specific legal language provided by B Lab varies by jurisdiction)
Implement stakeholder consultation processes that include employees, communities, and environmental representatives
Create formal feedback channels for each stakeholder group
Link executive compensation to social and environmental performance metrics
Implementation tip: Many companies find creating a stakeholder advisory board to be the most effective way to formalize these requirements while adding genuine strategic value.
3. Living Wage Verification
What's changed: Previous standards awarded points for living wage policies; now, paying all workers (including contractors) a verified living wage is a prerequisite for certification.
What you need to do differently:
Conduct a comprehensive wage analysis using B Lab's approved living wage calculators for each geographic location where you operate
Develop remediation plans for any positions falling below living wage thresholds
Implement transparent compensation policies that document how living wages are maintained as economic conditions change
Extend living wage requirements to key suppliers and contractors
Common challenge: The new standards require verification of living wages for international operations, which often involves more complex calculations and regional adjustments.
4. Supply Chain Accountability
What's changed: The 2025 standards extend responsibility further into the supply chain, requiring documented due diligence on social and environmental impacts.
What you need to do differently:
Develop a supplier code of conduct that addresses human rights, fair labor practices, and environmental standards
Implement a risk assessment framework to identify high-impact suppliers
Create monitoring systems to verify compliance
Establish remediation processes for identified violations
Strategic approach: B Lab recommends a phased implementation, starting with your top 20% of suppliers by spend or risk exposure, then expanding the program over time.
Industry-Specific Changes
Different industries face unique changes under the new standards. Here are some sector-specific adaptations required:
For Service Businesses:
Enhanced professional ethics requirements including client acceptance policies
Digital carbon footprint accounting for remote work operations
Mental health and wellbeing programs for knowledge workers
For Manufacturing Companies:
Material circularity assessments and targets
Extended producer responsibility documentation
Enhanced chemical management systems
For Food and Agriculture:
Biodiversity impact assessments
Regenerative agriculture implementation plans
Food waste reduction targets and tracking
For Financial Services:
Impact-weighted portfolio assessments
Exclusionary investment policies
Client impact tracking systems
The Bottom Line: Four Universal Changes for All B Corps
Regardless of your industry, company size, or current certification status, these four changes affect everyone:
Higher baseline performance expectations across all impact areas
More rigorous documentation requirements with third-party verification
New materiality assessments that customize standards to your specific context
Continuous improvement commitments with mandatory progress reporting
Conclusion: Embracing the Evolution
While these changes may seem daunting, they reflect the maturing B Corp movement and increasing stakeholder expectations around authentic sustainability. Companies that embrace these changes position themselves not just for certification success, but for genuine leadership in the evolving business landscape.
Ready to take the next step? Our companion guide on "Transitioning from Old to New Standards" provides a detailed roadmap for navigating this evolution efficiently.
