B Lab
B Lab is a nonprofit organization founded in 2006 in Berwyn, Pennsylvania, by Jay Coen Gilbert, Bart Houlahan, and Andrew Kassoy to promote businesses that prioritize social and environmental impact alongside profit.[1][2]
The organization administers the B Corporation certification, a voluntary standard requiring companies to achieve a minimum score on the B Impact Assessment—evaluating governance, workers, community, environment, and customers—while demonstrating transparency through public disclosure of results and accountability via legal commitments to stakeholders.[3][4]
B Lab's mission centers on reshaping the global economy toward inclusivity and regeneration, with over 10,000 certified B Corps worldwide influencing supply chains and policy, though empirical studies yield mixed evidence on certification's causal effects, showing positive associations with medium-term financial growth in some cases but no improvements in stability or short-term gains in others.[5][6][7][8][9]
Notable achievements include pioneering impact measurement tools and fostering a network for collaborative advocacy, yet B Lab has faced criticism for perceived lax standards enabling greenwashing by large multinationals and industries like fast fashion, reliance on self-reported data, and failure to exclude firms with significant negative externalities, prompting recent standard revisions amid opt-outs by some certified entities.[10][11][12][13][14]
History
Founding and Early Development
B Lab was established in 2006 in Berwyn, Pennsylvania, as a nonprofit organization by Jay Coen Gilbert, Bart Houlahan, and Andrew Kassoy, three entrepreneurs who aimed to redefine business accountability by integrating social and environmental performance metrics with financial outcomes.[15][2] Gilbert and Houlahan had previously co-founded AND1, a basketball apparel company sold in 2007, which provided them with experience in scaling mission-driven enterprises and highlighted gaps in traditional corporate governance for addressing broader stakeholder impacts.[2] The founders' vision stemmed from observations that profit-focused metrics dominated business evaluation, often neglecting societal and ecological consequences, prompting them to develop tools for measuring "triple bottom line" performance—people, planet, and profit.[16] In its initial phase, B Lab created the B Impact Assessment, a standardized framework to evaluate companies' operations across governance, workers, community, environment, and customers, setting the foundation for B Corporation certification.[17] Early milestones included the certification of the first 82 B Corporations in June 2007 during the BALLE conference at the University of California, Berkeley, marking the practical rollout of B Lab's standards and attracting initial adopters committed to legal and operational reforms for sustainability.[1] By 2008, B Lab had begun advocating for benefit corporation legislation in U.S. states to enable certified companies to embed public benefit purposes into their charters, influencing Pennsylvania's adoption of such laws in 2012 as one of the early movers.[15] This period focused on building credibility through rigorous verification processes, though the assessment's subjectivity in weighting impacts drew some early critiques from business analysts regarding enforceability.[18]Growth and International Expansion
B Lab experienced rapid growth in the number of certified B Corporations following its founding in 2006, with the first certifications issued in 2007 to 19 pioneer companies, expanding to 81 by the end of that year.[19] By 2010, the total reached 205 certified entities, reflecting early adoption primarily in the United States.[20] This momentum continued, surpassing 1,400 certifications across more than 40 countries by 2015, and exceeding 3,500 by 2020 amid increasing global interest in sustainable business practices.[18][20] The proliferation accelerated in the 2020s, driven by heightened corporate focus on environmental, social, and governance (ESG) factors. In 2021, certified B Corporations numbered over 4,300 across 77 countries; by 2022, the community grew to more than 6,000 entities.[21][22] Annual growth rates exceeded 30% in recent years, reaching nearly 8,000 certifications employing over 700,000 workers in 93 countries by late 2023.[6] As of July 2025, the network encompassed over 10,000 certified B Corporations in 102 countries and 160 industries, with more than 1 million employees collectively.[23][24]| Year | Certified B Corporations | Countries |
|---|---|---|
| 2007 | 81 | Primarily U.S. |
| 2010 | 205 | U.S.-focused |
| 2015 | >1,400 | >40 |
| 2020 | >3,500 | Multiple |
| 2021 | >4,300 | 77 |
| 2023 | ~8,000 | 93 |
| 2025 | >10,000 | 102 |
Organizational Structure and Operations
Leadership and Governance
B Lab operates as a 501(c)(3) nonprofit organization headquartered in Wayne, Pennsylvania, with its global governance centered on a Board of Directors that holds ultimate authority over strategic decisions, organizational structure, annual budgets, and standards development.[30][31] The Board establishes Regional Advisory Councils to guide best practices and reviews recommendations on B Corp standards, ensuring alignment across the global network while maintaining independence for regional affiliates.[32][31] As of January 2024, the Board includes co-founder Bart Houlahan as chair, alongside Andrew Kassoy (co-founder), Katie Hill (former executive director of B Lab UK and Europe), Janine Guillot (standards expert, joined April 2023), and Debra Dunn (director at Skoll Foundation).[30][33][34] These members oversee the transition from founding leadership, with co-founders Kassoy, Houlahan, and Jay Coen Gilbert having stepped back from executive roles in July 2022 to focus on broader movement-building.[1] Global executive leadership features interim co-lead executives Clay Brown (head of Standards, Certification & Product Delivery) and Sarah Schwimmer (head of External Affairs), appointed on May 7, 2024, following the departure of former lead executive Eleanor Allen in November 2023.[35][36] Regional entities maintain autonomous governance; for instance, B Lab U.S. & Canada is led by CEO Jorge Fontanez, supported by a separate board including Anthea Kelsick and Jackson Hegland.[36][37] This federated model allows localized adaptation while adhering to global standards set by the parent organization.[38]Global Network and Affiliates
B Lab operates through the B Global Network, a collaborative structure comprising independent yet affiliated organizations that adapt and promote B Corp certification standards to local contexts worldwide. This network functions as a decentralized system where B Lab Global serves as the central hub, providing overarching standards, tools, and coordination, while regional and national entities handle certification, community building, policy advocacy, and economic transformation initiatives tailored to specific geographies. Established to scale the B Corp movement beyond its U.S. origins, the network emphasizes mobilizing businesses, influencing public policy, and fostering regenerative economies at the grassroots level.[25] The affiliates, often operating under the "B Lab" or "Sistema B" branding, were progressively launched starting with Sistema B in Latin America in 2011, followed by expansions into Europe, Asia-Pacific, Africa, and other regions. These entities maintain operational autonomy but align with B Lab's global framework, including the B Impact Assessment and legal accountability requirements for certification. As of 2023, the network spans dozens of countries across six continents, supporting over 8,000 certified B Corps globally through localized efforts.[25] Key affiliates include:| Affiliate | Founding Year | Primary Coverage |
|---|---|---|
| B Lab U.S. & Canada | 2006 | United States and Canada |
| Sistema B | 2011 | Latin America (e.g., Brazil, Chile, Colombia) |
| B Lab Europe | 2013 | Europe (e.g., Benelux, France, Germany, Italy, UK, Nordics, Spain, Poland, Portugal) |
| B Lab Australia | 2013 | Australia and Aotearoa New Zealand |
| B Lab Africa | 2017 | Africa (headquartered in Kenya) |
| B Lab Taiwan | 2017 | Taiwan |
| B Lab UK | 2015 | United Kingdom |
| B Lab Japan | 2018 | Japan |
| B Lab Southeast Asia | 2018 | Southeast Asia |
| B Lab Korea | 2019 | South Korea |
| B Lab Hong Kong | 2020 | Hong Kong and Macau |
| B Lab China | 2021 | China |
| B Lab Singapore | 2022 | Singapore |
Mission and Certification Standards
Core Objectives
B Lab's primary objective is to transform the global economy by redefining business success to encompass positive impacts on people, communities, and the planet, rather than solely shareholder returns. Established as a nonprofit in 2006, the organization pursues this through the certification of B Corporations—legally required for-profit entities that balance profit with verified social and environmental performance, accountability to all stakeholders, and transparency in operations.[40][4] This certification process enforces standards that mandate companies to consider the effects of decisions on workers, suppliers, customers, communities, and the environment, embedding stakeholder governance into corporate structure.[41] A key aim is to foster a movement of interconnected B Corps that collectively advocate for policy reforms and cultural shifts in capitalism, including legal protections for mission-driven governance via benefit corporation legislation, which has been enacted in over 40 U.S. states and several countries by 2025.[38] B Lab develops and updates tools like the B Impact Assessment framework to measure and drive improvements in five impact areas: governance, workers, community, environment, and customers, requiring certified entities to achieve a minimum score of 80 out of 200 and commit to ongoing progress.[11] By mobilizing over 8,000 certified B Corps across 90 countries as of 2024, B Lab seeks to demonstrate scalable models of responsible business that influence market norms and regulatory environments.[40] The organization also prioritizes systemic change through research, advocacy, and partnerships, aiming to address root causes of economic inequality and ecological degradation by promoting interdependence over extraction. For instance, B Lab's Theory of Change emphasizes evolving standards to tackle emerging issues like climate justice and supply chain ethics, while encouraging recertification every three years to ensure adaptability and verifiable impact.[42][41] This objective extends to building infrastructure for a "parallel economy" where purpose-aligned companies can thrive, though empirical validation of long-term transformative effects remains debated among economists focused on causal impacts rather than self-reported metrics.[38]B Impact Assessment Framework
The B Impact Assessment (BIA) is a proprietary questionnaire-based tool developed by B Lab to quantify a company's social, environmental, and governance performance, serving as the primary mechanism for evaluating eligibility for B Corp certification. It focuses exclusively on positive impacts, awarding points for implemented practices rather than deducting for shortcomings, with responses starting from a baseline of zero. The assessment is conducted via B Lab's digital B Impact platform, which integrates the full BIA for initial evaluations under Standards Version 1.6 and a streamlined Self-Assessment for recertification under the updated Version 2.1, released in August 2025. This framework emphasizes measurable outcomes over mere policies, drawing on research-backed best practices verified by B Lab's independent Standards Advisory Council.[41][43][44] Structurally, the BIA evaluates operations and business models across five core impact areas: Governance, which examines mission alignment, ethics, and accountability; Workers, assessing compensation, training, ownership, and well-being; Community, covering supplier relations, diversity, and economic contributions; Environment, measuring resource use, emissions, and pollution; and Customers, evaluating product safety, privacy, and societal value. An additional Impact Business Model section, capped at up to 50 points, rewards innovative structures that inherently generate positive impact, such as cooperative models or social enterprises. The questionnaire includes a separate, unscored Disclosure Questionnaire to flag potential negative or controversial practices, such as involvement in high-risk industries, which may trigger further risk screening under updated standards. Adaptations account for company size (e.g., fewer questions for enterprises under $2 million revenue), sector materiality, and geography, ensuring relevance without diluting rigor.[45][41][43] Scoring methodology assigns weights to questions based on their difficulty, direct stakeholder impact, and evidence requirements, with outcomes and outputs prioritized over inputs like policies; for instance, verified reductions in emissions carry higher weight than adoption plans. Most companies face approximately 140 operational points across the five areas, plus Impact Business Model points, requiring a minimum total of 80 points—typically achieved after iterative improvements, as initial scores often fall below this threshold. Sub-scores per area provide granular feedback, while the framework's dynamic nature allows triennial updates to incorporate evolving standards, such as enhanced climate and inequality metrics in recent revisions. Although self-completed and confidential, scores are subject to third-party verification during certification, including document reviews and interviews, to mitigate self-reporting biases.[45][43][44] The framework's principles—positivity, comprehensiveness, objectivity, dynamism, aspiration, education, and confidentiality—aim to foster continuous improvement rather than punitive compliance, integrating third-party validations like Fair Trade or LEED certifications for objectivity. It remains educational, offering guides and examples to guide respondents toward best practices. However, its reliance on affirmative self-disclosure has drawn scrutiny for potential over-optimism in scoring, as evidenced by cases where certified firms later faced allegations of misreported impacts, though B Lab mandates recertification every three years with site reviews for higher-risk entities.[43][41]Certification Process
Eligibility and Requirements
Companies seeking B Corp certification must operate as for-profit entities in competitive markets, excluding non-profits, government agencies, and entities not structured as businesses.[46] [47] Eligibility further requires legal incorporation, at least 12 months of operations, and full compliance with applicable local, national, and international laws, including human rights and anti-corruption standards.[11] [46] Recent updates to B Lab Standards version 2.1, effective August 2025, refined sub-requirements for clarity, such as adjustments for financial services sectors, but retained the core operational threshold.[48] A fundamental performance requirement is attaining a verified score of 80 or higher on the B Impact Assessment, which measures impacts across five areas: governance, workers, community, environment, and customers, with weights adjusted by industry, size, and location.[3] [49] Scores below this threshold disqualify applicants, and multinational or large-scale operations (e.g., over $100 million in revenue or with international staff) face enhanced scrutiny, potentially requiring group-level evaluations or subsidiary-specific adaptations.[50] Applicants must also complete a Disclosure Questionnaire to identify risks, such as involvement in controversial industries or legal violations, which can bar certification if unresolved.[51] [3] Beyond assessment performance, eligibility demands transparency commitments, including public disclosure of B Impact scores and legal structure modifications to prioritize stakeholder interests over shareholders alone, though the latter integrates into the broader certification process.[11] Startups operating under 12 months may access the B Impact Assessment for preparation but cannot pursue formal certification until the operational minimum is met.[46] B Lab enforces these criteria to ensure certified entities demonstrate verifiable positive impact, though critics note self-reported elements in initial assessments may allow initial entry before rigorous third-party verification.[3]Verification and Recertification
The verification process for B Corp certification entails a review by B Lab analysts following submission of the B Impact Assessment (BIA), where companies must demonstrate a verified score of at least 80 points out of 200. An Evaluation Analyst first examines the company's structure, industry-specific risks, and Impact Business Model claims to ensure alignment with B Lab's standards. Subsequently, a Verification Analyst scrutinizes supporting documentation, engages directly with the company's team via calls or other interactions, and may adjust the score based on evidence provided; this stage typically involves one to two rounds of review and requires uploading all necessary records, such as policies, metrics, and operational data. While site visits are possible in select cases, verification primarily relies on submitted materials and remote assessments rather than mandatory audits. Companies must also pass a disclosure questionnaire review addressing potential controversies and fulfill legal requirements for stakeholder governance.[52][53] Recertification occurs every three years to maintain B Corp status, requiring certified companies to update their BIA with current operational data reflecting ongoing social and environmental performance. Submission of the updated assessment must occur at least six months prior to the recertification date for companies due in 2025 or later, allowing time for verification; earlier cycles permitted submission closer to the date, but the extended window facilitates preparation under evolving standards. The verification mirrors the initial process: analysts re-evaluate the score for >=80 points, review uploaded documentation for improvements or changes, and conduct necessary calls, with potential score adjustments if evidence does not support claims. Companies must reaffirm compliance with legal requirements and sign an updated B Corp Agreement upon successful verification; failure to achieve the threshold or provide adequate proof results in decertification. B Lab encourages interim use of the BIA tool annually to track progress, though formal verification is triennial.[52][54]| Recertification Timeline Element | Requirement |
|---|---|
| Frequency | Every 3 years |
| Submission Window (2025+) | At least 6 months prior to date |
| Verification Duration | Several months, including up to 2 review rounds |
| Minimum Verified Score | 80 points |