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Welcome from Hosts

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Michigan Wisconsin Texas Illinois

Today’s Speakers

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Thank you to our Promotional Partners

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Alice Jasper (She/They)

Ojibwe, Odawa, Potawatomi contemporary and ancestral land. Also known as Grand Rapids, MI.

  • Program Director with People First Economy
  • Trained B Corp Consultant
  • B Local Michigan Committee Co-Chair
  • Creator/ Host/ Producer of “Color Out Here”

Your MC:

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What Is B Corp Certification?

Check out

B Corporation

B Corp Certified companies are a community of leaders, driving a global movement of people using business as a force for good. The combination of third-party validation, public transparency, and legal accountability help Certified B Corps build trust and value.

The B Corp Certification is administered by the non-profit B Lab

Check Out the First and Second Webinars in This Series to Learn More!

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New Standards

As the climate crisis intensifies and societal inequality grows, the need to bring about systemic change is clear. B Lab is working to advance the standards of B Corp Certification to meet the magnitude of the challenge ahead.

The new standards will provide clarity for companies, galvanizing the most impactful business actions and focusing on what really matters, meaningfully demonstrating the leadership role that B Corps and the B Corp movement play in the world.

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Pillars of the B Corp Movement

Stakeholder Governance:

People and the planet must be of equal, or higher, value than short-term profits. In this new paradigm, businesses that help all communities heal and thrive are rewarded. A stakeholder-centered economy is the triple bottom line in action, a system in which human and environmental well-being are essential.

Racial Equity:

True racial justice requires listening and learning. It means doing the work to dismantle unjust policies and practices and building more just business models and organizations. It means showing up as imperfect partners and embracing vulnerability with bravery, humility and compassion.

Climate Justice – There is No Planet B:

Humanity depends on our planet to survive, and the planet depends on humanity. Healing our home requires ending win/lose practices that provide wins for businesses and losses for the planet and its most vulnerable people.

B Lab’s Three Pillars of Change

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A Stakeholder Informed Process…

In December 2020 B Lab announces a review of performance requirements for B Corp Certification…

They gather feedback from over 1000 stakeholders…

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A Stakeholder Informed Process…

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A Stakeholder Informed Process…

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Stakeholder Feedback

  • 86% of Respondents agree that the draft standards align with what they believe it means for a business to meet high standards of B Lab’s Three Pillars of Change
  • 84% of Respondents indicated that the draft standards would clarify what it means to be a Certified B Corp
  • 74% of Respondents indicated that the draft standards would help make meaningful progress in addressing the three pillars.
  • 71% of B Corp Respondents indicated that they are either already meeting the standards or that they are possible to achieve

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Changes to Measuring Impact

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Changes to Measuring Impact

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Changes to Measuring Impact

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Changes to Measuring Impact

As B Lab moves away from an 80 point threshold in the current standards to specific requirements across Impact Topics, this latest draft of the standards shares a new model for your consideration:

1. Performance Requirements: How companies are performing against the sub-requirements in each Impact Topic and if they ‘Do Not Meet’, ‘Meet’ or ‘Exceed’ these requirements.

2. The second element relates to company performance across Impact Business Models (IBMs), being the way that a business is designed to create a specific positive benefit/outcome for one of its stakeholders. Companies possessing IBMs would receive public recognition, for example having their tier of performance published on their B Corp Public Profile, categorized as either “Developing”, “Advanced”, “Outstanding”, or “Leader”.

Allows for Impact Performance Across ALL B Lab Pillars!

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Jeffrey D. Stewart

Foundation Requirements

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  • FR1 The company fulfills the eligibility requirements for Certification
  • FR2 The company adopts the legal requirement and commits to support the community’s collective purpose.
  • FR3 The company completes the Risk Assessment.
  • FR4 The company completes the Impact Business Models assessment.

Overview

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The company completes the Disclosure Questionnaire and reviews the potential negative impacts that companies generate in their operations.

Controversial Industries: Charity Lotteries, Debt Collection (emerging markets), Nuclear Power or Radioactive Materials, Mining, Pharmaceuticals, Recreational Marijuana

Ineligible Industries: Fossil Fuel Producers, Gamling, Pornography, Prisons and Detention Centers, Tobacco, Weapons and Defense

FR3 The Company Completes the Risk Assessment

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FR3 Nature of Service

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B Lab has now determined three pathways when companies serve clients in any of the flagged industries

Pathway 1: Transparent disclosure

Pathway 2: Transparent disclosure PLUS grievance/complaints mechanism AND whistleblower protection policy

Pathway 3: Pathway 2 requirements AND 1% revenue threshold for clients in ineligible industries*

FR3 Pathways of Applicability

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Leah Steinberg (She/Her)

Sustainability Consultant

Foundation Requirements: Impact Business Models Assessment

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What Are Impact Business Models (IBMs)?

“Impact Business Models (IBMs) are the ways that a business is designed to create a specific positive benefit/outcome for one of its stakeholders. They may be based on their product, a particular process or activity, or the structure of the business.”

Key Characteristics:

  • Specific and Material: Focus on substantial and measurable impact.
  • Verifiable and Lasting: Impact is enduring and can be proven.
  • Aligned with Mission: Reflects the company’s core purpose and values.

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Statistics from B Lab:

86% of companies currently certified as B Corps have at least one IBM or industry addenda.

⅔ of all certified companies need IBMs in order to become a B Corp.

  • On average, IBM points make up 22% of a company's score.

Why are IBMs Important?

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What’s Changing?

  • Old Approach: Companies were assessed on their overall score in the B Impact Assessment (BIA), which combined operational practices and IBMs.
  • New Approach: The Impact Business Model Assessment falls under the Foundation Requirements (FR4)
    • Minimum performance thresholds are met across all impact topics.
    • Companies are not required to have an IBM

“Impact Business Model Assessment: This assessment, which entails completing the relevant Impact Business Model (IBM) modules and questions formulated on the existing B Impact Assessment, enables a company to learn how their business models can be designed to create specific positive social and/or environmental impacts and to recognize those companies that have an Impact Business Model.”

The Shift to the Impact Business Model Assessment

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Flexibility Mechanism

Understanding the Flexibility Mechanism:

  • B Corps with high-performing Impact Business Models (IBMs) may access a flexibility mechanism within the certification process.
  • This mechanism allows companies to meet certain performance requirements through their impactful business models.

How It Works:

  • Companies demonstrating significant positive impact through their IBMs will be ranked on a tiered system. Depending on the tier, companies are exempt from sub-requirements of the certification.

Recognition of the Impact Business Models

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Public Recognition

Recognition Framework:

  • B Corps with notable Impact Business Models (IBMs) receive public recognition, highlighting their leadership in creating measurable social and environmental outcomes.
  • This recognition distinguishes companies embedding impact into their core business strategies.

Visibility:

  • Companies may receive badges to showcase their achievements in specific IBM categories
  • These badges are intended to appear on a company’s B Corp Public Profile
  • Note: The specific criteria, design, and implementation of badges have not yet been finalized.

Recognition of the Impact Business Models

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Key global challenges addressed by the new standards:

  • Rising material costs due to resource scarcity.
  • Overwhelming levels of waste in landfills and the oceans.
  • Degradation of ecosystems and biodiversity loss.

Previous Standards:

  • Points awarded for general environmental initiatives, with flexibility to choose areas of focus (e.g., waste reduction, energy efficiency).
  • No specific requirements for circularity or biodiversity.

New Standards:

  • Mandatory Minimums: All B Corps must meet foundational requirements for environmental stewardship and circularity.
  • Emphasis on reducing negative impacts and contributing to positive environmental outcomes.

Example: Environmental Stewardship & Circularity

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New Requirements: What’s Expected of B Corps

Environmental Impact Assessments:

  • Conduct assessments to identify and mitigate harm across operations and supply chains.
  • Focus on critical areas like resource extraction, water use, and pollution.

Circular Economy Principles:

  • Products and services must prioritize durability, reparability, recyclability, and resource regeneration.
  • Eliminate waste at every stage of the life cycle.

Biodiversity and Positive Impact:

  • Companies must go beyond harm reduction to actively enhance biodiversity and ecosystem health.

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Why the Change?

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Lisa Geason-Bauer (she/her) Sustainability Practitioner

Performance Requirement Sections Overview

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Updates to the diagram:

• Complimentary Impact Topics category has been removed & worked into the overall Performance Requirements

• Fair Wages and Workplace Culture have been combined to be “Fair Work”

B Lab Press Release (9-24-2024)

Dec 2024 - 7 draft performance areas

Proposed Performance Requirements…..

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Purpose & Stakeholder Governance (PSG): B Corps act in accordance with a defined purpose, contributing to an inclusive, equitable, and regenerative economic system for all people and the planet.

Fair Work (9/24): B Corps have positive workplace cultures with meaningful worker dialogue, living wage, wage equality among the workforce, labor themes such as contracts, overtime, shift, or zero-hour work.

Justice Equity Diversity & Inclusion (JEDI): B Corps have inclusive and diverse work environments and contribute meaningfully to just and equitable communities.

Human Rights (HR): B Corps treat people with dignity and respect their human rights.

Government Affairs and Collective Action (GACA): B Corps play a leadership role in fostering shared understanding, solutions, and implementation towards an equitable, inclusive, and regenerative economy, including contribution to the public infrastructure they utilize and rely upon for their success.

Social Performance Requirements…..

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Purpose & Stakeholder Governance (PSG): B Corps act in accordance with a defined p

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Fair Work (9/2024) …..

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Notes:

  • JEDI + Human Rights are connected.
  • Any company with fewer than ten workers is exempt from JEDI1 - The company carries out (disaggregated) data collection, analysis, and internal reporting for key people-related business actions. Any company with 0 workers is exempt because the requirement assumes a company has at least one worker. Any company with 1-9 workers is exempt because they likely have more informal ways of working, and data collection and reporting for so few workers would not only have limited positive impact but may result in unintended negative impacts.

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Climate Action (CA): B Corps take action in accordance with science to combat climate change and its impacts.

Environmental Stewardship and Circularity (ESC): B Corps demonstrate environmental stewardship and contribute to the circular economy in their operations and value chain, minimizing any negative impact and pursuing positive impact.

Environmental Performance Requirements…..

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EXAMPLE: Overview of Changes to Climate Action Standards

Previous Standards:

    • Companies earned points for climate action initiatives but were not required to meet specific thresholds.
    • Climate goals were encouraged but not mandatory.

New Standards:

    • Mandatory Requirements: All B Corps must now meet science-aligned climate targets to certify or recertify.
    • Focus on measurable outcomes, not just intentions.

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Science-Based Targets: Align with 1.5°C goals and set measurable targets for reducing emissions across all scopes (Scope 3 now required).

Annual Reporting: Disclose progress and climate impact publicly for transparency.

Transition Planning:

  • Shift to renewable energy sources.
  • Decarbonize supply chains by working with suppliers.

Reduction Before Offsets:

  • Prioritize direct reductions over purchasing carbon offsets.

What This Means for Current B Corps:

  • Companies must audit their emissions across the value chain and establish robust systems for monitoring and reporting.
  • Supply chain collaboration will become a critical focus area.

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Finding Specific Requirements

The specific requirements for Climate Action and Environmental Stewardship & Circularity are customized based on your company’s size and industry.

To access detailed requirements:

  • Visit the B Lab Global Website.
  • Review the standards under the Climate Action and Environmental Stewardship & Circularity categories.
  • Use the tools provided to identify how these standards apply to your business.

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Additional Recertification Resources

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Thank You to Our Hosts!

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Next Steps: Help Build A Solidarity Economy!

Solidarity Economy (SE)

(noun)

An organizing framework for those who wish to create a systemic commitment to and practice of interdependence and collective liberation in the economic activities that meet our material needs.

Solidarity economy rests on our shared values: cooperation, democracy, social and racial justice, environmental sustainability, and mutualism.

Interdependence and Respect Are Central.

-Solidarity Economy Principles - solidarityeconomyprinciples.org

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Next Steps….

  • Join a B Local or B Corp Network Leaders Group - be in community
  • Engage civically at the local level - employers consider adding a benefit to your employee handbook, “employees are able to volunteer for 8 + hours a year with a local nonprofit )
  • Reach out to one of the presenters or check out B Consultants Directory if you’re looking certification support!
  • Not a business owner? B a Movement Champion! Support B Corp-owned companies! Consider ways you can help build a solidarity economy!

Next Steps: Help Build A Solidarity Economy!

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Lisa Geason-Bauer & Leah Steinberg Contact

Evolution Marketing: https://www.greenmkting.com/contact

Alice Jasper Contact

People First Economy: https://www.peoplefirsteconomy.org/contact/

Jeffrey D. Stewart Contact

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