The Carbon Border Adjustment Mechanism (CBAM)
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In this article we’ll explore what the CBAM is, why it’s been created, and what importers need to know ahead of its introduction.
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How to get a B Corp Certification?
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Businesses are under increasing pressure to demonstrate real commitments to sustainability and social impact - but the path forward isn’t always clear. With a growing backlash against ESG and mounting skepticism over reporting frameworks, companies are struggling to prove that their efforts are meaningful. In this landscape, how can they showcase real impact and avoid the pitfalls of greenwashing?
One way is through B Corp certification. Awarded by the nonprofit B Lab, this internationally recognized certification verifies that a company meets rigorous, third-party standards for sustainability, ethical governance, and social responsibility.
❗️And big changes are coming.
In 2025, B Lab is rolling out new standards that will raise the bar for certification. Companies will no longer be able to qualify based on a flexible scoring system - instead, they must meet clear, sector-specific impact requirements. For example, businesses will be required to:
- Measure and report their greenhouse gas (GHG) emissions
- Develop and implement a climate action plan
- Meet strict governance, fair work, and human rights criteria
In this article, we break down what it takes to become a B Corp, the upcoming changes to certification, and what these updates mean for businesses looking to get certified.
What is B Corp Certification?
“ In a world where businesses are increasingly held accountable for their impact, B Corp certification stands out as one of the most rigorous and respected sustainability credentials. Unlike vague corporate social responsibility claims, B Corp is a third-party verification proving that a company meets the highest standards of social and environmental responsibility. ”
B Corp certification is awarded by B Lab, a nonprofit organization that assesses companies on their impact across key areas, including workers' rights, governance, environmental sustainability, and community engagement. To qualify, businesses must go beyond profit-driven decision-making and commit to balancing purpose and profit.
Global Reach
As of 2025, B Lab reports that 9,480 companies worldwide have achieved B Corporation certification. While the movement is growing, it remains largely made up of smaller businesses, with a few notable exceptions like Danone and Nespresso. Certification is also more common in consumer-facing industries such as fashion, food, and finance, while uptake among B2B companies has been more limited.
Changing Thresholds
Until now, certification was based on an 80-point threshold in the B Impact Assessment (BIA). However, this system is changing in 2025. Moving forward, B Corp-certified businesses must meet explicit performance requirements across key sustainability and governance areas.
Every certified B Corp must:
- Meet high social and environmental performance standards – assessed across multiple impact areas
- Commit to long-term accountability – embedding stakeholder governance into their legal structure
- Ensure transparency – publicly disclosing their performance
- Demonstrate continuous improvement – recertifying every three years under stricter standards
A Certification That Evolves
B Corp is not a one-time achievement. Certified companies must continuously improve to remain in the community, facing recertification every three years under increasingly stringent standards.
With the new 2025 updates, the certification process will become more robust, requiring companies to meet clear, sector-specific sustainability goals rather than simply accumulating points in a flexible scoring system.
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The Biggest Changes in the 2025 B Corp Standards
1. A Mandatory Climate Action Plan for All B Corps
One of the most significant updates is a stronger focus on climate impact. Under the new standards, every company seeking B Corp certification must:
- Measure and report its greenhouse gas (GHG) emissions annually
- Set a science-based target aligned with keeping global warming below 1.5°C
- Implement a climate transition plan to reduce emissions over time
Previously, businesses could still qualify as B Corps even if they had weaker environmental scores - now, climate action is non-negotiable. Every B Corp must actively contribute to emissions reductions rather than simply offsetting their carbon footprint.
2. A Shift from a Flexible Score to Strict Requirements
The new standards move away from a points-based system, where companies could qualify by excelling in certain areas while lacking in others. Now, businesses must meet clear performance criteria across all seven key Impact Topics.
Under the new model, companies must:
- Meet explicit performance criteria across all seven key Impact Topics
- Pass both Foundation and Impact Topic Requirements (instead of just accumulating points)
- Tailor their compliance to industry and company size (ensuring fair and meaningful standards)
3. New Impact Topic Requirements
Every company must now prove measurable performance in seven key areas:
- Purpose & Stakeholder Governance
- Fair Work
- Justice, Equity, Diversity & Inclusion (JEDI)
- Human Rights
- Climate Action
- Environmental Stewardship & Circularity
- Government Affairs & Collective Action
Each of these areas comes with specific, enforceable standards rather than broad, self-reported efforts.
4. Stronger Legal Commitments for B Corps
B Corps have always been expected to embed stakeholder governance into their legal structure - but 2025 will tighten these requirements further.
To certify, companies must:
- Legally commit to considering all stakeholders in decision-making (not just shareholders)
- Update their legal framework to reflect this within a set timeframe
- Disclose governance structures and sustainability performance publicly
This ensures that B Corps are structurally committed to social and environmental responsibility - not just in practice, but in legal obligation.
5. Tailored Requirements by Size and Sector
Recognizing that a tech startup and a large multinational have different sustainability challenges, the new standards introduce contextualization mechanisms.
What this means:
- Companies will be assessed based on size, industry, and operational footprint.
- Stricter requirements apply to large corporations, particularly around climate action and supply chain accountability.
- Small businesses still need to meet the requirements but with a focus on what is practical and impactful for their scale.
This shift ensures that B Corp certification is both rigorous and attainable for businesses of all sizes.
What These Changes Mean for Businesses Seeking B Corp Certification
The new 2025 standards raise the bar, making certification more meaningful but also more demanding. Businesses looking to certify will need to:
- Prepare early by assessing where they currently stand in relation to the updated Impact Topics
- Develop a climate strategy, including emissions tracking and reduction targets
- Ensure their governance structure is aligned with stakeholder accountability requirements
- Commit to full transparency and public disclosure of key impact metrics
For companies that are already B Corps, these changes will apply upon recertification - so businesses must start adapting now.
B Lab’s Role in Policy & Global Standards
B Lab doesn’t just certify businesses - it collaborates with governments, policymakers, and advocacy groups to elevate sustainability standards globally. Some of its key policy initiatives include:
The Coalition for Interdependence
B Lab launched the Coalition for Interdependence, a group of 100+ companies advocating for stronger corporate sustainability legislation.
Why this matters for B Corps: The coalition actively lobbies for policy changes that hold businesses accountable for their environmental and social impacts - ensuring that B Corps remain at the forefront of ethical business practices.
Global Advocacy for Stakeholder Capitalism
B Lab is pushing for legal reforms worldwide that embed stakeholder accountability into corporate governance.
Why this matters for B Corps: Companies that want to legally commit to stakeholder governance can align with Benefit Corporation legislation, which B Lab is working to expand beyond the US.
How B Lab’s Policy Work Benefits B Corps
For businesses seeking or maintaining B Corp certification, B Lab’s policy influence offers major advantages:
- Future-Proofing Against Regulations – Many governments are increasing corporate sustainability requirements. B Corps are ahead of the curve because they already meet strict accountability and impact standards.
- Global Recognition & Competitive Edge – As sustainability regulations expand, companies with B Corp certification will stand out to investors, regulators, and consumers as leaders in ethical business practices.
- Access to a Network of Policy Leaders – B Corps aren’t just businesses, they’re part of a movement driving legislative change. Certified companies can actively participate in policy discussions and help shape the future of corporate sustainability.
“ With the 2025 certification changes, B Lab is making it clear that B Corps aren’t just companies, they are leaders in shaping a more sustainable economy. By aligning certification requirements with global policy trends, B Corp is strengthening its credibility as a gold standard for responsible business. ”
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How to Become a B Corp: The Certification Process
“ Becoming a B Corp-certified business is a commitment to meeting the highest standards of social and environmental responsibility. With the new 2025 standards, the certification process is now more rigorous, requiring companies to meet explicit criteria across key impact areas. ”
Here’s how the process works under the updated system:
Step 1: Meet the Foundation Requirements
Before applying for certification, businesses must demonstrate their commitment to responsible business practices by fulfilling the B Corp Foundation Requirements. These include:
- Eligibility Assessment: Businesses must operate legally, have been in business for at least 12 months, and not be involved in activities that contradict B Corp’s mission (such as fossil fuel extraction or exploitative labor practices).
- Legal Commitment: Companies must embed stakeholder governance into their legal structure, ensuring they consider the impact of their decisions on employees, communities, and the environment - not just shareholders.
- Risk Assessment: B Lab conducts a background review to evaluate whether the company has any controversial business practices, unresolved complaints, or potential social or environmental risks.
- Impact Business Model Assessment: Businesses must outline how their core operations create a measurable positive impact - for example, by reducing emissions, improving supply chain sustainability, or advancing social equity.
Only companies that meet all foundation requirements can proceed to the next stage.
Step 2: Complete the Impact Topic Assessment
Under the new 2025 certification standards, businesses must meet sector-specific performance requirements across the seven key Impact Topics:
- Purpose & Stakeholder Governance – Companies must show that decision-making prioritizes long-term social and environmental impact.
- Fair Work – All employees must be paid a living wage, with clear policies on worker protections and wage equity.
- Justice, Equity, Diversity & Inclusion (JEDI) – Businesses must collect diversity data, implement DEI initiatives, and report progress.
- Human Rights – Stronger supply chain accountability measures ensure ethical sourcing and labor conditions.
- Climate Action – Every company must measure GHG emissions, set science-based targets, and develop a climate action plan.
- Environmental Stewardship & Circularity – Companies must commit to 100% renewable electricity, zero waste to landfill, and biodiversity protection.
- Government Affairs & Collective Action – Businesses must disclose lobbying activities and engage in responsible advocacy.
Unlike the old system, where companies could balance weaker areas with stronger ones, businesses must now meet minimum thresholds across all impact topics.
Step 3: Submit Your Application and Verification Fees
Once a company completes the Impact Topic Assessment, it submits the results to B Lab for review and pays the required verification fees, which are based on annual revenue.
- Small businesses pay lower fees, while larger corporations face higher financial commitments based on their size and revenue.
- Companies must disclose their assessment results publicly, ensuring transparency and accountability.
Step 4: Undergo the Third-Party Verification Process
B Lab conducts a comprehensive audit to verify the accuracy of the company’s Impact Assessment responses. This includes:
- Reviewing supporting documentation (policies, reports, supplier agreements, emissions data, etc.).
- Interviewing company leadership to assess governance, social impact, and sustainability practices.
- Cross-checking supply chain policies to ensure fair labor, ethical sourcing, and environmental responsibility.
The verification process can take up to 12 months, depending on company size and complexity.
Step 5: Sign the B Corp Agreement and Pay the Certification Fee
Once a company passes verification, it must:
- Sign the B Corp Agreement, legally committing to continuous improvement.
- Pay annual membership fees, based on company revenue.
Certification is valid for three years, but businesses must recertify under updated standards to maintain their B Corp status.
How Long Does the Certification Process Take?
The entire process - from initial assessment to final certification - can take anywhere from 6 to 12 months.
- Small businesses with straightforward structures may complete certification in as little as six months.
- Larger companies with complex supply chains and multiple stakeholders may take closer to a year.
What Happens After Certification?
B Corp certification is not a one-time achievement - it’s an ongoing commitment to continuous improvement. Every three years, companies must:
- Submit an updated Impact Assessment reflecting their latest sustainability and social responsibility progress.
- Demonstrate measurable improvements in areas like climate action, worker well-being, and supply chain accountability.
- Meet any new performance requirements introduced by B Lab.
Why Businesses Should Start Preparing Now
The new B Corp standards raise the bar significantly, making certification more demanding. Businesses planning to apply - or recertify - should start preparing now by:
- Conducting an internal sustainability audit to assess current impact areas.
- Implementing a GHG measurement and emissions reduction plan to meet the new climate action requirements.
- Reviewing governance structures to ensure legal commitments align with B Corp’s stakeholder model.
- Engaging with employees and suppliers to strengthen social impact policies.
What It Takes to Become a B Corp
Becoming a B Corp-certified business is a significant investment - not just in terms of sustainability efforts and governance changes, but also in financial costs and time commitments. The 2025 certification updates make the process more demanding, meaning companies need to allocate sufficient resources to meet the new standards.
Here’s what businesses need to consider when planning for B Corp certification.
How Much Does B Corp Certification Cost?
The cost of certification depends on company size and revenue. B Lab’s fee structure ensures that smaller businesses pay lower fees, while larger companies contribute more due to the complexity of verification and auditing processes.
Verification Fees (Paid Once Upon Application Submission)
To start the certification process, companies must pay a verification fee. This covers the initial assessment review and B Lab’s audit process.
| Annual Revenue | Verification Fee (Total) |
|---|---|
| €0 – €4,999,999 | €2,500 |
| €5M – €49,999,999 | €5,000 |
| €50M – €99,999,999 | €7,500 |
| €100M+ | €10,000 |
Businesses pay this fee in two parts: 10% upon submission of the B Impact Assessment and 90% upon verification.
Annual Membership Fees (Paid Every Year to Maintain Certification)
Once certified, companies must pay an annual membership fee to maintain their B Corp status.
| Annual Revenue | Annual Membership Fee |
|---|---|
| €0 – €2,499,999 | €2,000 |
| €2.5M – €4,999,999 | €2,500 |
| €5M – €7,499,999 | €3,000 |
| €7.5M – €9,999,999 | €4,000 |
| €10M – €14,999,999 | €6,000 |
| €15M – €19,999,999 | €8,500 |
| €20M – €29,999,999 | €12,000 |
| €30M – €49,999,999 | €16,000 |
| €50M – €74,999,999 | €20,000 |
| €75M – €99,999,999 | €25,000 |
| €100M – €174,999,999 | €30,000 |
| €175M – €249,999,999 | €35,000 |
| €250M – €499,999,999 | €40,000 |
| €500M – €749,999,999 | €45,000 |
| €750M – €1B | €50,000 |
These annual fees support B Lab’s global operations, including platform maintenance, impact verification, and community-building efforts.
Is B Corp Certification Worth the Investment?
Despite the costs and time commitment, many businesses see B Corp certification as a strategic investment rather than an expense.
Key Benefits of Certification
- Competitive Advantage – Consumers, investors, and partners trust B Corps because of their independent third-party validation.
- Regulatory Readiness – The new 2025 B Corp standards align with major global regulations, helping businesses stay ahead of compliance requirements.
- Stronger Brand & Employee Retention – Studies show that mission-driven companies attract and retain top talent, particularly among millennials and Gen Z employees.
- Better Access to Capital – Many investors and lenders prioritize sustainability-focused companies, and B Corp certification helps businesses stand out.
Common Certification Challenges & How to Overcome Them
While becoming a B Corp-certified business is a rewarding achievement, the process can feel complex - especially with the new 2025 standards. Many companies face challenges along the way, from understanding the new requirements to implementing necessary changes across their operations.
Here, we outline the most common hurdles businesses encounter and how to overcome them:
| Challenge | Why It’s Difficult | How to Overcome It |
|---|---|---|
| Meeting the New Climate Action Requirements | Businesses must now measure GHG emissions, set science-based targets, and develop a climate transition plan - a major challenge for those new to emissions tracking. |
- Start measuring emissions now using Life Cycle Assessments (LCAs). - Set science-based targets aligned with 1.5°C warming limits. - Develop an actionable transition plan, focusing on renewable energy, supply chain decarbonisation, and operational efficiency. |
| Meeting the New Legal Governance Commitments | Companies must legally commit to stakeholder governance, which may require bylaw amendments and internal restructuring. |
- Review legal requirements early to ensure compliance. - Seek legal advice to integrate stakeholder governance into corporate structures. - Educate leadership and key stakeholders on the long-term benefits of a stakeholder model. |
| Collecting & Disclosing Impact Data | Businesses must publicly report on wages, diversity, emissions, and supply chain practices, requiring strong internal tracking systems. |
- Use sustainability reporting tools (e.g., GRI, CDP) to standardise impact data. - Improve supplier accountability by integrating ethical sourcing and fair labor requirements. - Create a centralised impact report for easier updates and public transparency. |
| Managing the Time and Resource Commitment | The certification process can take 6–12 months, requiring significant internal resources. |
- Develop a structured roadmap, assigning clear responsibilities. - Prioritise impact areas where progress can be made quickly. - Leverage external expertise, such as B Corp consultants, to streamline the process. |
| Ensuring Continuous Improvement for Recertification | Certification must be renewed every three years, with businesses required to demonstrate measurable progress. |
- Embed sustainability into company culture, making it a core operational priority. - Set long-term improvement goals to align with evolving B Corp standards. - Regularly engage employees and leadership to maintain commitment and accountability. |
“ The companies that succeed with B Corp certification are those that see it as an ongoing journey - not just a checklist. ”
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How Can Greenly Help Your Company?
Navigating the B Corp certification process - especially under the revised 2025 standards - can be complex and time-consuming. Greenly streamlines the journey, providing expert guidance to help your business meet the environmental, social, and governance (ESG) requirements essential for certification.
Here’s how Greenly supports companies throughout the B Corp certification process:
Annual Tracking of Greenhouse Gas (GHG) Emissions
A GHG assessment is now mandatory for B Corp certification. Greenly helps you:
- Measure and track your carbon footprint across Scope 1, 2, and 3 emissions.
- Ensure regular emissions reporting is aligned with B Corp’s climate action criteria.
- Receive guidance from a dedicated climate expert to optimize your emissions reduction strategy.
Development and Implementation of a Climate Action Plan
Under the new B Corp requirements, businesses must not only measure emissions but also implement a reduction strategy. Greenly helps you:
- Develop a tailored climate action plan that aligns with science-based targets (SBTs).
- Identify key areas for emissions reduction and efficiency improvements.
- Set achievable, data-backed goals to drive long-term sustainability impact.
Decarbonization of the Supply Chain
A company’s environmental impact isn’t just internal - supplier emissions matter too. Greenly helps you:
- Engage suppliers in developing low-carbon strategies.
- Assess Scope 3 emissions and implement sustainable procurement practices.
- Ensure compliance with B Corp’s new environmental stewardship and circularity requirements.
Access to a Strong ESG Partner Network
B Corp certification requires cross-functional expertise in governance, sustainability, and compliance. Greenly connects you with:
- A network of ESG experts to support each stage of the B Corp journey.
- Industry-specific insights to align your business model with B Corp best practices.
Verified Carbon Contribution Projects
Beyond emissions reduction, many businesses choose to invest in carbon contribution projects. Greenly provides:
- A curated portfolio of certified carbon contribution projects.
- Assistance in selecting projects aligned with your sustainability goals.
- Guidance on how to integrate climate financing into your broader ESG strategy.
B Corp certification is evolving, ensure your company is prepared to meet the new requirements with Greenly’s expert guidance.
Sources:
- Greenly, What is ESG reporting and should you be doing it?, https://greenly.earth/en-gb/blog/company-guide/what-is-esg-reporting-and-should-you-be-doing-it
- Greenly, What is greenwashing: all you need to know in 2022, https://greenly.earth/en-us/blog/company-guide/what-is-greenwashing-all-you-need-to-know-in-2022
- B Corporation, Make Business a Force For Good, https://www.bcorporation.net/en-us/
- Greenly, Carbon emissions: what you need to know, https://greenly.earth/en-us/blog/ecology-news/carbon-emissions-what-you-need-to-know
- B Lab Europe, Find A B Corp, https://bcorporation.eu/find-a-b-corp/
- B Corporation, Explore the latest draft standards for B Corp Certification, https://standards.bcorporation.net/en-us/draft
- B Corporation, What are the requirements for B Corp Certification?, https://standards.bcorporation.net/en-us/draft/standards/what-are-the-requirements-for-b-corp-certification
- Greenly, How to get a B Corp Certification, https://greenly.earth/en-us/blog/company-guide/how-to-get-a-b-corp-certification
- B Corporation, What are the main changes between the first and second drafts of the standards?, https://standards.bcorporation.net/en-us/draft/standards/main-changes-the-first-and-second-drafts
- B Corporation, How are the requirements tailored to a company's context?, https://standards.bcorporation.net/en-us/draft/standards/how-are-the-requirements-tailored-to-a-companys-context
- Interdependence Coalition, https://interdependencecoalition.eu/
- B Corporation, Foundation requirements, https://standards.bcorporation.net/en-us/draft/topic/foundation-requirements
- Greenly, Fossil fuels: pros, cons and alternatives, https://greenly.earth/en-gb/blog/ecology-news/fossil-fuels-pros-cons-and-alternatives
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