B Corp Certification: The Competitive Edge Your Business Needs

When it comes to social and environmental issues, what's the one thing that you're truly passionate about making better in the world? Hold that thought though, because it's not just you, that passion for positive change, it's becoming a major business driver across four crucial groups that your business can't survive without. I'm Tim Jones, also known as that B Corp bloke, New Zealand's first trained B Corp consultant. And since 2016 I've helped certify one third of New Zealand's B Corps, as well as helping businesses in the usa, uk, Ireland, Hong Kong and Australia to do the same. And over that time, I've seen how B Corp certification isn't just about doing good or the right thing to do, which it certainly is. It's also a really smart business decision. That's why some of the world's best performing organizations are B Corps. Think of the like of Patagonia, Allbirds, Ozone Coffee, Tony's, Chocolinie, or Ben and Jerry's.

So what are the four groups of that your business needs? Well, I'd say pretty much every business needs customers. And year on year the trend is that they're actively seeking to support the ethical brands and in many cases are willing to pay a premium price. But only for the ones that can prove the good that they're doing. Major retailers like Waitrose in the UK now offer filters by B Corp status on the online store. And even my local suburban supermarket here at the R Cent of the Planet was recently promoting B Corp products in store. You more than likely also have some employees and increasingly they are seeking purposeful employers and they want to know that their role is creating meaningful societal impact and not destroying the planet in the process.

Next up, you'll be part of some kind of supply chain. Now this will be particularly the case if you are a consumer brand or an exporter. There is growing pressure for sustainability verification in this sector. And areas like the EU are requiring increased levels of reporting and evidence around claims that you make in your business. Farm to shelf transparency is becoming standard. And lastly, all business runs on investment. Globally sustainable lending assets are estimated to reach $40 trillion by 2030. That's about 25% of the total market. Essentially, this means your business can demonstrate its social and environmental impacts. It will get access to cheaper capital rates. Now that all sounds great in principle, but will it really translate into my business? I hear you cry. Well, the evidence suggests that it will. It seems that you can have your cake and eat it because doing good actually shouldn't Cost your business. It can make sense. And it can make sense. Here's what the data shows about how B Corps are performing and how we know that B Corps also make impact at scale. Reports show that b corps are 1.8 times more likely to be assessing their environmental impact as an organization. They're also 1.8 times more likely to have a high to low pay ratio of 5 to 1 and are 2.4 times more likely to reduce end of life waste compared to a non B Corp. Now this last stat provides an obvious link from impact performance to financial performance. You, like most businesses, will more than likely pay to have your waste taken away. So if you reduce your waste, you get an operational saving. If you're really switched on though, you might actually find a circular economy solution where essentially someone might buy your waste product to use in their operations. So that leads us to the business performance of B Corps. Data collected from the UK B Corp community in about 2021 showed that the average turnover growth rate for a UK B Corp was 24% versus only 3% market average. It also showed that 65% of B Corp secured the investment they were seeking or more versus 56% of non B Corps. And they had an average staff attrition rate of 10% versus about 16 to 18% industry average. Not bad, eh? But wait, there's more. Because B Corps are also really resilient. A 2023 global report showed that B Corps were more likely to grow their top line revenue and worker base between 2019 and 2021. More than 95% of B Corps continued to operate through to 2023, compared to 88% of comparable non B Corps. That's basically surviving the pandemic. And 16 out of 18 studies reviewed showed that there was no significant short term cost of certification, just benefits.

Look, B Corp is more than a trend. It's a global movement of business aiming to be the best for the world, not the best in the world and at the same time creating better businesses. That's why as markets are shifting, being a B Corp is moving from a competitive advantage to actually becoming a business necessity. The question isn't is it the B Corp moment? It's is it your B Corp moment? Well, one way to find out would be for us to have a quick chat. And to make that happen, all you need to do is click on the link somewhere around here and we can schedule a time for that to happen. Look, thanks for tuning in to learn more about B Corp and what it can do for the planet and your business. Hopefully it's made you think. I'm always super happy to have a conversation with you to help you understand what B Corp is. See if you're ready for the certification. You might actually be frighteningly close to meeting the standards already. I can also give you some idea of what the potential ROI could be for your business. Don't wait until the certification becomes a requirement. Keep it as a differentiator for your business. Right now, click below. Get in touch. We'll have a chat. Look forward to connecting with you soon. And in the meantime, argue no more what a good business should be. Just be one.