• Introduction
• Why Scoping Matters
• Defining Your Certification Scope
• Applying Rule 1: Control 
• Applying Rule 2:  Independence 

Introduction

Scoping is a foundational step in the B Corp Certification process. It’s how B Lab defines the boundaries of your assessment and certification—basically, “what’s inside the circle” of your certified business. 

Because B Corp Certification assesses a company's Sustainability Management System (SMS) across the business as a whole, rather than evaluating an individual product, site, or business unit, scoping plays a critical role in making sure dynamic, multi-layered business structures are assessed fairly and consistently. Learn more about a SMS in our article What Is a Sustainability Management System and Why it Matters.

This article explains why scoping matters and how B Lab applies scoping rules to accurately assess the boundaries of your company’s assessment. 

Why Scoping Matters

Scoping shapes the entire certification process from beginning to end. An accurate scope: 

• Defines boundaries: Scoping determines which entities, sites, and operations are included in your certification.

• Focuses resources: Your team can direct time, budget, and effort towards implementing B Lab’s standards to areas within the scope of your certification.

• Ensures accurate auditing: The evidence provided in the B Impact self-assessment is assumed to apply to all operations within your certification scope, and auditors verify them accordingly. This makes it essential that your scope is defined accurately and includes all areas where your business has real control and can uphold the required practices.

• Protects the certification claim: Only entities, sites and operations in scope can use the B Corp brand. This is especially important for companies with shared brands, multiple subsidiaries, or several product lines. The Brand Review process ensures that only brands that are part of a company’s approved scope use B Lab intellectual property (IP) and are listed on the company’s B Corp profile. Think of scoping as drawing a clear circle around the parts of your business you can manage and report on. Anything outside that circle is not assessed and cannot use the B Corp claim. 

Defining Your Certification Scope

B Lab uses the information provided during certification setup to analyze your company's structure and operations and define your certification scope. There are two overarching rules that guide how a company’s certification scope is defined:

Rule 1: Control

The scope must include all entities under the applicant company’s control.

This means any entity the applicant company financially or operationally controls must be part of what is being certified.

Rule 2: Independence

The applicant company – and all entities within the certification scope according to Rule 1 – must meet B Lab’s Independence Criteria, including operating under a single sustainability management system. 

Let us unpack how each rule is applied to define your certification scope. 

Applying Rule 1: Control 

Control means having the power to direct an entity’s leadership, daily operations, or key business decisions. Control can be exercised in several ways. If a legal entity meets either of the control criteria listed below, it must be included in the scope:

• Financial control: The entity is consolidated in your accounts.

• Operational control: Your executive team makes decisions over its operations, regardless of financial consolidation.

Your scope includes all parts of your company that you own or control and where you have the ability to influence management, finances, or daily operations. This includes:

• Legal entities – subsidiaries or affiliates. If a legal entity is included in the scope of certification, B Lab requires that all sites/ employees/ revenue/ business operations that exist under that legal entity are considered within scope of the assessment and certification. 

  • A subsidiary is a company owned and controlled by another company (parent), typically because the parent owns more than half of its voting shares or can direct major decisions.

  • An affiliate is a company linked to the applicant company through shared ownership, partnerships, or joint operations. This includes situations where companies share leadership, daily activities, or the applicant has significant control (e.g., in a joint venture). 

• Sites – for example, offices, factories, stores etc. For more details, see How to determine which sites are in scope for certification.

• Business operations – day-to-day activities, products, or services
  
  

Applying Rule 2:  Independence 

Rule 2 applies Independence Criteria to ensure that your company operates as a full, independent business. If multiple entities or sites fall within scope, you must manage them using a single, centralized governance model. Furthermore, your company must be able to operate without material influence from any out-of-scope entity. 

To meet Rule 2, your company must meet these criteria : 

Sustainability Management System

The B Corp Certification is based on a single, company-wide sustainability management system.

• The applicant company shall have the ability to change their policies and practices, without any out-of-scope entity’s approval, to comply with the B Lab Standards. 

• All entities within the certification scope must operate under a single sustainability management system covering all the controlled entities and/or sites within scope.

Executive Accountability

• The applicant company must have its own executive team with the authority to create and implement the policies in the company’s sustainability management system. 

• If the applicant company shares an executive team with an out-of-scope business, they must track the time they spend on each business and cross-charge the relevant portion to the applicant’s P&L.

     Legal Accountability

• Companies must be a distinct legal entity operating as a private-sector business.

• Companies must have a legal structure that allows it to adopt B Lab’s legal requirement (where a legal pathway exists). Learn more about the legal requirement. 

Distinct Reporting

• The applicant company must be able to provide complete reporting on both financial and impact performance for all in-scope operations.

      Distinct Branding

• The applicant company must have a distinct public identity to ensure the B Corp certification is only associated with eligible entities in scope. This requires having either an independent website or a clearly differentiated company name, such as one with a geographic or industry qualifier from any out-of-scope entity.

If your company and its entities in scope meet the Independence Criteria outlined above, you can certify independently under one assessment and one certification. 

If your company doesn’t meet this criteria it doesn’t mean you necessarily are ineligible for certification, only more review may be needed to define the boundaries of your assessment and certification. If you have questions, please reach out to your region’s Global Partner.