Large companies are joining the B Corp movement - both as Certified B Corporations and through other accessible options to "be like a B Corp." Learn more about the various pathways for engagement for large and public companies, then contact B Lab to discuss the right opportunities for your company.
In this increasingly complex world, big brands and companies are fundamentally challenged as to whose interests they really serve. We are convinced that answering this intent and purpose question in straight and simple terms is the best way for our brands to re-establish trust with employees, consumers, partners, civil society and governments. This is where we found B Lab accreditation a great way to express our long time commitment for dual economic and social progress, through our ambition to support people's adoption of healthier and more sustainable eating and drinking practices.”
- Emmanuel Faber, CEO of Danone, Danone North America
B Lab’s Multinationals & Public Markets Advisory Council (MPMAC) launched a pathway for certification for parent companies that earn over $5B in annual revenue in April 2019.
The pathway to certification for companies over $5B in annual revenue was designed to do two things: (1) Create a more efficient verification process for multinationals and, (2) increase the relevance and rigor of the standards themselves, recognizing that the scale of impact created by multinationals ought to entail additional corporate obligations and requires different measures of performance.
Companies of this size will follow the certification process outlined here, with a few additional steps and requirements noted below.
Parent companies with over $5B in annual revenue are asked to complete this application if interested in pursuing B Corp Certification.
In addition to the BIA Performance and Risk Screens outlined here, parent companies with over $5B in revenue are also required to verify that they meet certain minimum baseline requirements (described below). This component of the Prescreen involves a company submitting information about how they do (or do not) currently meet the baseline requirements and whether they have plans to do so in the future.
For more information on the Prescreen see here.
B Lab promotes mission-aligned legal structures like the benefit corporation that join the interests of business with those of society. B Lab collaborates with businesses, the capital markets, and policymakers to drive adoption of these structures around the world.
Requirements |
Description |
|---|---|
|
Reporting |
An annual, comprehensive impact report transparent to the public using a third-party standard (GRI, BIA, Integrated Report, etc.). |
|
Materiality Assessment |
A transparent materiality assessment and stakeholder engagement process, conducted on a regular basis (minimum every other year with mechanisms for intermediate updates as appropriate) and used to identify relevant megatrends and material topics to the company, that includes a transparent grievance/complaint mechanism and is overseen by the Board of Directors. |
|
Material Issues Management |
Management strategies on the most material issues relevant to the business that are overseen by the Board of Directors and include specific, aspirational performance goals, and demonstrated progress toward those goals. Management Strategies and performance goals and are made transparent to stakeholders. |
|
Tax & Government Affairs Disclosure |
A disclosure statement on the company’s tax philosophy/approach and government affairs (lobbying/advocacy), including the company’s overall effective tax rate, that is overseen by the Board of Directors. |
|
Human Rights Policy |
A specific human rights policy that is overseen by the Board of Directors and includes either an explicit commitment to key human rights covenants (including the UN Declaration of Human Rights, UN Guiding Principles on Business and Human Rights, and ILO Principles), or identifies the most salient human rights issues relevant to the business and its overall operations through a human rights risk assessment. |
Companies will be reviewed for their compliance with the Baseline Requirements during the Prescreen, and will be required to either have them in place or make meaningful progress towards meeting the Baseline Requirements over time, in order to be eligible for or maintain the B Corp Certification.
To learn more about the Baseline Requirements and results of the MPMAC click here.
Regardless of whether your full organization is eligible to certify today, you may want to begin engaging in the B Corp movement by certifying a subsidiary well suited for B Corp Certification. The subsidiary can then champion the value of the B Corp movement within the company, while providing a credible platform from which the parent can project leadership publicly.
There are a wealth of examples of partnerships between B Corp subsidiaries and parent companies. See ‘Examples’ section below for more detail.
Examples of large companies with Certified B Corp subsidiaries:
eligibility and requirements for subsidiaries
B Lab’s approach to assessing the eligibility of independent subsidiaries
Bancolombia is the third largest bank in Latin America, with assets of over $55 billion. Bancolombia wanted to understand how the companies in its supply chain are creating positive impact, improve the sustainability performance of its supply chain, and strengthen the bank’s relationship with its suppliers.
After evaluating numerous impact assessment tools used by banks and corporations, Bancolombia chose the suite of B Impact Management tools - the B Impact Assessment and B Analytics - as the best solution to fulfill its objectives. This suite of tools provides Bancolombia with a self-assessment platform for suppliers that goes beyond environmental, social, and governance (ESG) evaluation, providing a holistic view of the impact of the bank and its network on the local community and stakeholders. The B Analytics platform has also allowed the bank to focus on impact improvement with the businesses in its supply chain, enhancing supplier relationships.
In 2011, an organic baby food company named Happy Family Brands achieved B Corp Certification. Two years later, Happy Family was acquired by French multinational food corporation Danone. That acquisition marked the first connection between Danone and the B Economy and began a long-term process of exploration and education.
Now, Danone has multiple subsidiaries certified as B Corps, is making use of the benefit corporation legal structure in the United States through its subsidiary DanoneWave, is assessing and educating more business units using B Lab’s impact management tools, and is working to create more pathways for multinational engagement through B Lab’s Multinational and Public Markets Advisory Council. Moreover, Danone has become the first multinational corporation to publicly commit to pursuing B Corp Certification.
Download our case study on Danone to learn more about how and why Danone has engaged deeply in the B Economy and committed to pursuing whole-company B Corp Certification.
Influenced by subsidiary Ben & Jerry’s, a Certified B Corp since 2012, Unilever has been active in the B Economy since 2015. That year, CEO Paul Polman announced Unilever’s participation in B Lab’s Multinational and Public Markets Advisory Council (MPMAC), stating that “the B Corp movement is a critical part of the shift to a more inclusive and purpose-driven economy, which is unquestionably needed.”
Since then, alongside its work to develop a meaningful path to B Corp Certification for multiinationals as a member of the MPMAC, Unilever has continued to acquire Certified B Corps as subsidiaries, including Seventh Generation, Pukka Herbs, and Sundial Brands, with whom they launched a $50 million fund to empower black women entrepreneurs.
Contact us by filling out the form below and our team will be in touch shortly to discuss your goals and determine what engagement makes sense for your business.