Key Changes
Q: What is the purpose behind this updated version of the B Lab Standards?
A: The B Lab Standards have continuously evolved since their inception. We regularly update the standards, informed by research and multi-stakeholder input; they have now been updated seven times since B Corp Certification launched more than 18 years ago.
B Lab’s ‘new standards’, a major rewrite officially termed V2.0, were published on April 8, 2025. As of August 12, 2025, B Lab has released V2.1, a minor update to the standards, which aims to enhance clarity and accuracy, better serving companies on their impact improvement journey and facilitating their transition to the new standards for certification.
Q: What are the key changes in this updated version of the B Lab Standards?
A: This updated version (V2.1) includes corrections and clarifications, alongside further updates to the Foundation Requirements and Impact Topic requirements, including:
New features:
New Risk Tool added (under Foundation Requirement 3.1: “The company creates a risk profile and meets any additional sub-requirements”) to help companies manage and mitigate risks not covered elsewhere in the standards.
Updated sub-requirements (under Foundation Requirement 1.2: “The company is not significantly involved in industries that undermine the B Lab Theory of Change”) to help companies understand their eligibility for certification, and the timeline to meet these sub-requirements for existing B Corps and companies looking to certify.
Enhanced guidance and clarity:
Enhanced content per Impact Topic for clarity and to avoid redundant information.
Downloadable standards PDF now includes an introduction and table of contents.
Additional and revised definitions for key terms and improved formatting.
Revised naming convention for the B Lab Standards to improve consistency.
B Impact product enhancement:
Document Hub added to the Self-Assessment in B Impact to support smoother project management for companies.
These changes reflect B Lab's commitment to continuous improvement based on real-world application and stakeholder feedback. Each update is designed to make the process clearer for companies while maintaining the rigorous standards that define B Corp Certification. For more information on each update, please refer to the sections below.
Q: I thought the new B Lab Standards were final. Will there be future updates?
A: Learnings from company self-assessments, the development of verification processes, and the implementation of the new standards may lead to further improvements to the standards.
There are no planned further updates to the standards for the remainder of 2025. Additional information regarding the new certification process will be shared later in 2025.
Naming Convention
Q: How should I be referring to the new standards? Can I still use “V7”?
A: B Lab Standards is now the official name of the standards as a whole, regardless of the version. You can use this when speaking about them generally.
Though the new standards were becoming known informally as “V7”, that name didn’t truly reflect the magnitude of their evolution. The version of the new standards launched in April 2025 has instead become V2.0, reflecting the significant departure from previous versions.
This new format works now and into the future, allowing for major and incremental updates in line with continuous improvement. For example, the latest smaller update (released August 12, 2025) is known as V2.1.
Foundation Requirements
Risk Tool
Q. How is a company’s negative impact addressed in the new standards?
A: In the B Lab Standards, a company's negative impacts are assessed through a combination of the Foundation Requirements and those under various Impact Topics.
Under Foundation Requirement FR3.1 (“The company creates a risk profile and meets any additional sub-requirements.”), a company will establish its risk profile through a newly introduced Risk Tool. Depending on this profile, they may need to meet additional due diligence sub-requirements in the Impact Topics. This is designed to ensure due diligence expectations are proportionate to the company’s risk profile and size.
Negative impacts are also addressed in other Foundation Requirements and Impact Topics. For example, in the Climate Action Impact Topic, companies develop action plans to support limiting global warming to 1.5°C. Another example falls under the Human Rights Impact Topic, where HR3.2 requires companies to take action to prevent and mitigate their negative social impacts.
Q: What is FR3.1, and how has it changed?
A: FR3.1 is a sub-requirement that sits under the broader Foundation Requirements and is one of several ways our new standards tackle a company’s potential negative impacts, such as risks, and help guide companies through continuous improvement. This updated version of FR3.1 now includes a new Risk Tool to help companies assess their potential negative impacts and support them in identifying, preventing, and mitigating them.
Q: What is the Risk Tool, and how will it impact my assessment?
To meet sub-requirement FR3.1, companies must complete the Risk Tool, which contains 14 questions about priority risky practices not covered elsewhere in the standards. Based on their responses, specific sub-requirements will be added to their assessment. The answers to the 14 questions will be displayed on the B Corp public profile.
These additional requirements represent due diligence practices—the steps companies take to identify, prevent, and mitigate their negative impacts. This ensures that companies with higher-risk activities face proportionally stronger oversight requirements.
When fulfilling additional due diligence requirements, the company will need to consider the associated risk, such as, including the risk in any company materiality assessments.
For further details, please refer to this Knowledge Base Article: FR3 Narratives.
Q: Does this new tool apply to all sizes of companies?
A: FR3.1 applies to all company sizes, except those without workers and micro companies.
If your company is considered micro or a company without workers, then you are exempt from FR3.1. These smallest companies are exempt, recognizing their inherently lower risk profiles. Read this article for more information about company size.
Q: Does this mean my company is ineligible for certification if using these practices?
Companies that engage in practices included in the Risk Tool can be eligible. They are required to disclose their involvement in these practices and, as applicable, meet additional sub-requirements to address their negative impacts.
Q: When will the Risk Tool be publicly available?
As of August 12, 2025, B Lab published the contents of the Risk Tool, consisting of 14 questions and outcomes, in B Impact (Sub-requirements FR3.1.a to FR3.1n). This allows all companies to assess their risk profile and determine if they need to meet additional sub-requirements across the Impact Topics, providing them with advance notice to prepare.
By October 2025, B Lab will functionally integrate the tool into the assessment platform as an automated, interactive feature. At this point, where a company answers ‘yes’ to any of the 14 questions, additional sub-requirements will be automatically pulled into the Self-Assessment for the company to meet.
Q: Will the company’s responses in the Risk Tool be verified?
While B Lab will not verify the company’s responses to the Risk Tool, the company’s risk profile will be publicly available on its public B Corp profile.
The process is designed to prioritize transparency and predictability, allowing us to match risk with increased due diligence expectations at scale.
Under FR1.4, companies must provide accurate and complete information to B Lab. If a stakeholder files a complaint alleging that a B Corp has misrepresented its risk profile, B Lab will investigate and may review the company's certification status. We encourage individuals with concerns about B Corps to use B Lab’s public complaint process.
Eligibility
Q: What is FR1.2, and how has it changed?
A: Foundation Requirement FR1.2 (“the company is not significantly involved in industries that undermine the B Lab Theory of Change”) is a sub-requirement within the B Lab Standards that restricts company involvement in ineligible industries.
In this version (V2.1), B Lab has introduced updated sub-requirements that make it clearer for companies to understand their eligibility for certification. The changes also revise the timeline to meet these sub-requirements, providing existing Certified B Corps with a transition period to comply with the new standards. Key updates include:
Removal of <1% Assets under Management compliance criteria for financial services sectors until more nuanced requirements are produced in the future. FR1.2 still prohibits certification for companies (including financial services) generating 1% or more of their annual revenue from clients in ineligible industries.
Existing B Corps will now have until Year 3 (Y3) of their certification cycle to meet eligibility requirements under FR1.2, consistent with B Lab’s historical approach. New companies looking to certify will need to meet FR1.2 requirements in Year 0.
New compliance criteria will require companies linked to ineligible industries’ negative impacts to publicly report this on their public B Corp profile.
B Lab is committed to supporting companies on their impact improvement journey while letting them know upfront if they meet eligibility criteria. FR1.2 provides this clarity earlier in the process of applying for certification, while ensuring that certified B Corps do not undermine B Lab’s Theory of Change through work with ineligible industries.
Q: How did B Lab determine the list of ineligible industries?
The ineligible industries included in FR1.2 all have systemic negative social or environmental impacts that individual companies cannot remediate alone.
To determine the listed industries, B Lab followed steps similar to the overall standards development process. We engaged in research and expert input (such as incorporating the IFC Exclusion List, European Investment Bank [Exclusion] List), engaged wider stakeholders through public consultation, and submitted to our governance bodies for approval.
Q: What does B Lab define as an ‘ineligible industry’?
A: B Lab defines ineligible industries as those that sell products or services that act against the B Lab Theory of Change. Within the B Lab Standards, Foundation Requirements (FR 1.2) apply clearer eligibility criteria. A company cannot certify if they generate 1% or more of their annual revenue from activities that harm stakeholders, including:
Fossil fuel production
Gambling
Pornography
Prisons and detention centers (including prison or detention center labor)
Tobacco
Weapons
B Lab defines "activities that harm stakeholders" as companies causing or contributing to the negative impacts of the listed industries. For more detail on "causing" and "contributing," please see the next question.
Q: How will I know if my company is causing, contributing to, or linked to these ineligible industries?
A: The nature of the company’s involvement is based on its relationship to the adverse impact; the company can have direct involvement in the ineligible industry, or have clients in the ineligible industry. Companies with clients in such industries may be required to meet additional requirements to be eligible for B Corp Certification.
This will be reviewed case-by-case as per the framework detailed here.
Companies are encouraged to read the FR1.2 sub-requirement in full, including the Clarifying the Compliance Criteria and Further Guidance sections.
Q: In FR1.2, is the 1% threshold per each ineligible industry, or a combined percentage?
The 1% threshold is per each ineligible industry.
Q: What has changed for financial services companies?
A: To support companies in the financial services sector to exit their investments tied to ineligible industries, a more tailored approach is required than captured by the compliance criteria shared in the first version of the FR1.2 sub-requirement, published in April.
The previous <1% Assets Under Management compliance criteria for financial services sectors have been removed until more nuanced requirements are produced in the future, considering the broader view of the sector’s role within our Theory of Change.
Financial services companies will still need to meet the sub-requirement FR1.2 and generate <1% of their annual revenue from each of the listed ineligible industries.
Q: When do companies have to meet FR1.2? Is there a transition period?
A: B Lab wants to support an appropriate transition of the existing B Corp community to meet eligibility requirements under FR1.2. FR1.2 provides this clarity earlier in the process of applying for certification, while ensuring that certified B Corps do not undermine B Lab’s Theory of Change through work with ineligible industries.
To facilitate this, the period for recertifying B Corps to meet FR1.2 will be extended to Year 3 of their certification cycle.
New companies certifying on the standards will need to meet FR1.2 requirements in Year 0.
Under previous changes to the risk standards, when new requirements were introduced, B Corps were given one full certification cycle to comply. The Y3 compliance is consistent with this historical approach. We encourage all B Corps to meet them as soon as possible.
Impact Topic Requirements
Q: How will I know where else there have been changes?
A: B Lab aims to share transparently all amendments and updates to the standards to allow for clear communication with all stakeholders. As such, you can see a full log of all changes to this version (V2.1) in this Knowledge Base Article: Change Log.
Some notable changes per Impact Topic include:
Purpose & Stakeholder Governance: Clearer timeframe references (converting "years" to "months"), updated Implementation Resources, a streamlined Clarifying the Compliance Criteria section and enhanced Compliance Criteria with stakeholder mapping requirements.
Fair Work: Clarified headcount-based applicability requirements and clearer timeframe references, and a streamlined Clarifying the Compliance Criteria section. Removed the compliance criterion “All employees have the opportunity to become a representative”, as there may be legal and legitimate reasons for some employees to be ineligible (for example, they are on probation).
Justice, Equity, Diversity & Inclusion: JEDI1.1 and the previous JEDI1.2 combined to ensure headcount determines the applicability of the Compliance Criteria, and enhanced the Clarifying the Compliance Criteria section for better interpretation.
Human Rights: Clearer timeframe references, updated Implementation Resources, and a streamlined Clarifying the Compliance Criteria section. HR3.2 and the previous HR3.3 merged as they had the same content; new HR3.2 made applicable to Large, X Large, XX Large companies.
Climate Action: Clearer timeframe references, made three sub-requirements additionally applicable to the “Service with a Minor Footprint” sector. Included ISO 14064-1:2018 as an accepted standard for emission measurement to be more inclusive of methodologies.
Environmental Stewardship & Circularity: Clearer timeframe references and a streamlined Clarifying the Compliance Criteria section. Removed the compliance criterion in ESC1.2 about low-impact renewable sources to ensure global relevance, and included a phased approach to measurements under ESC1.1-ESC1.4.
Government Affairs & Collective Action: Updated Implementation Resources, corrected typographical errors, and removed redundant content. Included guidance for public reporting of financial and in-kind contributions to non-campaign activities.
Q: In B Impact, I can see Year 0 requirements, but in the downloadable PDFs, there are additional sub-requirements for Year 3 and Year 5. Does my company have to show what we are planning for Year 3 and Year 5?
A: When undergoing a Year 0 audit, companies are not expected to demonstrate what they are planning for Year 3 or Year 5, as those will be assessed in their respective audit years.
The standards in the assessment are filtered by size, sector, and industry. Within the Year 0 sub-requirements, companies will find compliance criteria that include additional actions for Years 3 and 5, but during the audit, companies will only be assessed on the sub-requirements for that specific year (e.g., Year 0, Year 3, or Year 5).
Some sub-requirements apply across multiple years. While a sub-requirement might be required in a future audit, providing visibility into these future requirements allows companies to proactively prepare.
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