In April 2025, B Lab introduced a large overhaul of the B Corp Certification standards that were originally introduced in 2006. This update was designed to shift the focus from a cumulative point-based system to mandatory minimum standards that cover all seven Impact Topics. Informed by feedback from over 26,000 stakeholders, the new standards aim to enhance the credibility, transparency, and impact of the B Corp movement.
What is Purpose & Stakeholder Governance?
The new B Lab Standards introduced seven new Impact Topics that were built upon the original five and now includes Purpose & Stakeholder Governance. This Impact Topic emphasises that businesses must operate with a clear meaningful purpose and a governance structure that considers the interests of all stakeholders – including workers, customers, communities, the environment, and shareholders. By embedding these principles, companies contribute to an inclusive, equitable, and regenerative economy that serves both people and the planet.
What’s the difference between ‘Governance’ and ‘Purpose & Stakeholder Governance’?
The previous B Lab Standards had five assessment areas, including ‘Governance, that formed a points-based system. Businesses certifying to become a B Corp had to accumulate over 80 points across these five assessments to certify. The ‘Governance’ assessment topic focused on encouraging businesses to consider all stakeholders rather than just shareholders.
The new ‘Purpose & Stakeholder Governance’ Impact Topic comes with a wave of changes from B Lab, whereby businesses must now comply with requirements across all seven Impact Topics rather than accumulating points. Further updates to this Impact Topic include:
Emphasising the requirement of a purpose statement to have more than just business relevance. Businesses are also required to have their highest governing body monitor the implementation of the company’s purpose, alongside its social and environmental impact and stakeholder governance.
Replacing previous sub-requirements for smaller companies. In the updated standards, these sub-requirements focus on identification, prioritisation, and stakeholder engagement mechanisms.
Adding a new sub-requirement for larger companies to identify material topics addressed in their materiality assessment that aren’t covered by the B Lab Standards and improve on them by setting targets and reporting on them annually.
Adding compliance criteria that protects stakeholders from any potential retaliation they may face after submitting a grievance.
Why do these changes matter?
The emphasis on ‘Purpose & Stakeholder Governance’ addresses longstanding critics of traditional corporate models that prioritise shareholder profits over broader stakeholder and environmental considerations. By requiring companies to embed stakeholder interests into their governance structures, the B Corp movement aims to foster businesses that are accountable to all their stakeholders, not just shareholders.
How to comply with the new B Lab standards
At transformacy, we specialise in helping purpose-driven businesses navigate the complexities of B Corp certification. Whether you’re starting from scratch or re-certifying and in need of finding alignment with the new standards, our team brings the strategic insight and tools to guide you every step of the way. If you’re ready to take the next step towards your B Corp certification – or want to make sure you’re staying ahead of the evolving standards – book a call with us today.