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B Lab's Risk Standards Position on Companies Serving Clients in Controversial Industries

B Lab has implemented a rigorous risk review procedure for companies that provides products or services to clients operating in controversial industries. When a company serves clients in controversial industries, the company provides products or services to another company in a controversial industry. Although the company may not be directly involved in the controversial activities, by serving clients in the controversial industry, they have the potential to contribute to the negative impact of the controversial industry. Therefore, B Lab's Risk Review Committee reviews the practices of such companies to manage potential risks.

B Lab has comprehensively identified industries that are deemed controversial and has classified them as "Disclosure Industries" in the Disclosure Questionnaire category in the BIA. Furthermore, B Lab has established industry standards for additional sectors that are also considered to be controversial. See below the full list of industries considered controversial by B Lab:
• Agribusiness producers in Brazil
• Alcohol
• Animal Products or Services
• Banking in Switzerland
• Bottled water companies
• Cannabis-related products (excluding recreational marijuana)
• Charity lotteries
• Debt collection agencies in emerging markets
• Defense
• For-profit higher education
• Fossil Fuels - coal, oil sands
• Fossil Fuels - other
• Gambling
• Genetically Modified Organisms
• Illegal Products or Subject to Phase Out
• Industries at Risk of Human Rights Violations
• Marketing of breastmilk substitutes
• Mining
• Nuclear Power or Hazardous Materials
• Offensive Firearms, and Weapons
• Payday, Short Term, or High-Interest Lending
• Pharmaceuticals
• Pornography
• Prisons
• Recreational marijuana
• Tax Advisory Services
• Tobacco
• Volunteer Placement to Orphanages
• Water Utilities
• Whole life insurance products
• Zoos, aquariums, and animal parks

Therefore, in order to inform B Lab about practices related to clients in controversial industries, please provide us with your answers in this document (here and here).

If your company serves clients in the Defense, Offensive Firearms, and Weapons and/or Prisons industries, B Lab has established specific risk standards that companies must meet to be eligible. In addition to providing your answers in this document, please also review and provide your answers to the respective tabs related to serving these industries (Defense and Prison).

Risk Review Committee
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