Become a B-corp, it’s a badge of honour
When Stuart Rose returned to revive the ailing Marks & Spencer in 2004, he launched what he called Plan A. It was an initiative to put sustainability at the centre of everything at the nation’s favourite knicker and sandwich business. The reason for the name? “Because there is no Plan B” .
I was lucky to be on the board from 2007 for 10 years and watched first hand how deeply the company embedded the plan. Everything from the lightbulbs in the stores through to the clasps in the bras were monitored to get an accurate sense of the carbon footprint.
Now the world has changed. Thank goodness. More is demanded of organisations by employees, shareholders, customers and regulators. Cutting through the greenwash and putting the right frameworks in place is still challenging. The demand of navigating this complexity are why I am a huge fan of the B-corp movement. B Corp Certification is a “designation that a business is meeting high standards of verified performance, accountability, and transparency on factors from employee benefits and charitable giving to supply chain practices and input materials”. Sounds dry but it is exciting; let me tell you why.
There are two parts to the programme. The B Corp Impact Assessment was launched in 2006 and to date 100,000 companies have used it. It helps you see how you are doing across a wide range of data points such as how many managers are incentivised on environmental targets, how you monitor your universal waste and what percentage of your top team come from underrepresented communities. When you understand these, you can apply to become a certified B Corp. Four thousand companies, such as Ben & Jerrys, Patagonia, Kickstarter, the shoemaker AllBirds, and insurance group Lemonade have all done so. In fact, the UK is now one of the fastest growing markets of B-corps. Even that 300 year old bastion of the establishment, Coutts, recently became one.
It’s a tough and rigorous process and can be too demanding for some, but is worth the considerable time investment. Despite the tough economic times we live in, finding world class talent is still an extremely competitive business. Multiple studies and my own experience indicate that people really want to work for companies with a commitment to doing the right thing. Customers are demanding more knowledge and transparency about the origins and environmental footprint of products and services, so the more robust you can be in how you present data to them, the better for business.
There is a strong network effect too. By engaging in the B-Corp process, you are forced to ask tough questions of your business and your partners which in turn encourages them to make changes. Once a member, you have access to a group of likeminded and interesting companies which will be valuable.
Most significantly, going through this process puts you on the right side of history for the planet and for people - it is, quite simply, the right thing to do.
Wetransfer, the Dutch based team focused on tools for the creative community became a B-corp in 2019. I became chair in 2020 and there is no doubt that its B-corp status made me more eager to join. In the technology sector, B-corps are rare. Damian Bradfield, one of Wetransfer’s co-founders, says: ”Becoming a B Corp was the culmination of over a decade's worth of work and giving back. We love it.”
I think the whole company would describe the journey as tough. It lasted over a year and some of the metrics had not been considered by the company before - such as the practices of its supply chain. I also know that the whole company is now thrilled to be one.
Other businesses tell the same story. Tamara Lohan, founder of the excellent Mr and Mrs Smith travel club, says that many of the metrics you have to comply with are designed for the hospitality industry, not a web-based business, and it was hard to work through them. It took focus and dedication. Exclusive Hotels was one of the first UK companies to achieve accreditation. It had to comply with the five areas of assessment - Governance, Workers, Community, Environment and Customers.They pulled together a team who focused on each area - from water usage to diversity of the workforce. It is essential for companies to have a dedicated, responsible, senior leader to prioritise the work. If this is coupled with buy--in at chief exec level, the journey is easier.
Outside help is also available if you want to join these world leading companies. You can call on the team of “B leaders”, who are trained by B lab - the non-profit organisation behind the B-Corp movement - and they will work through the process with you.
With increasing regularity, it can feel existentially horrifying when another Intergovernmental Panel on Climate Change report comes out, or when the impact of our commercial decisions on vulnerable communities becomes clear. The B corp movement, to create even more profitable, and even more purposeful companies, is one tangible way to lessen that horror.