B Corp Certification Overhauled with Stricter ESG Standards in Version 6

B Lab’s updated B Corp certification, Version 6, introduces stricter ESG standards, eliminates self-assessment, and requires compliance across seven impact areas with new multi-year requirements starting in 2026.

B Corp Certification Overhauled with Stricter ESG Standards in Version 6

B Lab unveiled a major shake-up of the B Corp certification scheme in launching Version 6, for use in 2026. The new standard is a dramatic departure from how businesses are being measured up against ethics and sustainability. The reforms are designed to more closely follow current regulatory requirements, most notably amid increasing greenwashing and corporate ESG accountability pressures, led by the European Union.

The former points-based B Impact Assessment (BIA) model already made it mandatory for businesses to achieve a minimum score of 80 points in the chosen impact areas to become a B Corp. From Version 6 onwards, the scoring method is being phased out with a standard-based system. Instead of selecting areas of excellence, businesses will now be required to achieve minimum standards in all seven chosen impact areas. These are Purpose & Stakeholder Governance, Fair Work, Justice, Equity, Diversity & Inclusion (JEDI), Human Rights, Climate Action, Environmental Stewardship and Circularity, and Government Affairs & Collective Action.

The new certification model demands businesses to be able to achieve "Year 0" standards for initial certification. Recurring and becoming a B Corp is no longer an isolated performance, though. Further challenges must be addressed in Years 3 and 5, creating an increasingly dynamic and recurring compliance loop. This change attests to rising expectations of continuous improvement instead of fixed achievement in corporate sustainability.

The most significant change in Version 6 is the removal of self-certification. Third-party evaluators conduct all tests. The purpose is to increase credibility, EU anti-greenwashing regulation compliance, and increase public confidence in B Corp-verified businesses. Third-party validation prevents organisations from tampering with their scores or selecting only favourable data.

Version 6 will from 2026 be mandatory for all businesses applying for certification or recertification. Smaller enterprises already scheduled for recertification, however, can utilize the old BIA system if they make an application before 30 June 2025. This short window of transition provides mere flexibility, but from that point on, the revised model is the norm in all marketplaces.

These reforms are introduced at a time when companies are being asked to be more proactive in resolving the world's social and environmental challenges. Investors, customers, and regulators all look for higher transparency, traceability, and accountability from business. The new scheme of certification is therefore conceived not merely to reward good practice but to establish good practice in the long term.

Version 6 required areas of impact capture the diversity and interdependence of corporate responsibility. "Fair Work" and "JEDI," for instance, guarantee just work practices, whereas "Climate Action" and "Environmental Stewardship and Circularity" encompass emissions reduction, management of resources, and sustainability of operations and value chains. Having "Government Affairs and Collective Action" captures the company's involvement with policy influence and collaborative action with stakeholders to tackle system-wide issues.

The staged approach also allows for quantifiable progress. By stretching certification requirements out to five years, the companies are incentivized to make systematic improvements instead of hitting snapshot requirements. This way, the approach aids in the integration of ESG practices into a company's operating day-to-day and strategy.

These developments also reflect wider trends in sustainability reporting. Regulatory systems such as the EU Corporate Sustainability Reporting Directive (CSRD) are establishing stronger disclosure rules. These are supplemented by the new B Corp model, which provides a widely accepted certification that is aligned with global ESG objectives and gives investors and stakeholders confidence.

Aside from compliance with regulations, B Corp certification can also serve as a marketing edge. Companies that receive the new standards showcase their audited dedication to doing business ethically, something that is more valuable to clients, employees, and business partners today. Version 6 certification can also help companies secure ESG-linked financing and collaborations as socially responsible investing becomes more mainstream.

Redesign by B Lab of the B Corp process is a part of a broader move to ESG standards third-party certified. As the new model is taken up by business, laggards risk reputational damage or being left behind by sustainability-focussed markets.

In order to assist firms in making these transitions, Version 6 and supporting materials in their entirety are now available on the B Lab website. Firms are requested to take the time to acquaint themselves with the new model and start preparing for compliance ahead of the system going live in 2026.

This dramatic transformation validates the concept that sustainability is not a certification objective but an ongoing responsibility. The removal of flexible scoring, implementing third-party audits, and multi-year commitments makes Version 6 one of the strongest and most complete B Corp structures to date. For businesses dedicated to long-term ethical business, integration into this new system is a critical move towards satisfying changing market and regulatory needs. 

Source
Republished from "B Corp Certification Revamped: What's New in Version 6?" by KnowESG on 11 June 2025. Content credit: Jithin Joshey Kulatharayil, KnowESG.

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