The guidance below supports understanding the integration of the baseline requirements into the new B Lab Standards (focus on XXL companies). Please see the overview guide on more information.
The V6 Baseline Requirement:
Materiality Issue Management: Management strategies on the most material issues relevant to the business that are overseen by the Board of Directors, and includes specific, aspirational performance goals, and demonstrated progress towards those goals. Management strategies and performance goals must be made transparent to stakeholders.
Maps to the following new B Lab Standard Sub-Requirements:
PSG2.4 The company identifies material topics not addressed in the B Lab Standard, sets targets, and reports progress annually. |
Size | Sector | Industry | Year | Eligible for equity Mechanisms |
XX Large X Large Large | All | All | Year 0/Year 3/Year 5 | None |
Changes in Compliance Criteria: | The aspirational goals requirement has been replaced with a more structured SMART targets framework to ensure a clear, measurable, and accountable overview of a company’s performance. Under the new B Lab Standards, XX Large companies must meet multiple sub-requirements that reflect the intent of the former aspirational goals, and are therefore held to a higher standard. For instance, setting a science-based target is not considered aspirational anymore, but is required in the Climate Action Impact Topic. Many of these sub-requirements require ongoing assessment on progress at recertification. For example, under ESC2, companies are required to have a strategy to address their actual and potential negative impacts. Under ESC4, companies are then required to take action on their actual and potential negative impacts. Recognizing that the B Impact Assessment may not capture all relevant issues, companies must conduct a gap analysis based on their materiality assessment (PSG2.3). Companies must set at least one SMART target per material topic that is not addressed in the B Lab Standards. Each target must be: Specific, Measurable, Achievable, Relevant, and Time-bound Integrated into company strategy Approved by the highest governing body Assigned to a responsible individual or team Publicly reported on annually (e.g. in the company’s impact report) At recertification, new targets must be established for topics where existing targets have been achieved. If all material topics are already covered by the B Lab Standards, the company must still set at least one SMART target that goes beyond standard requirements.
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Application to Independently Certifying Subsidiaries: | SMART targets must be relevant to the certifying subsidiary. If the subsidiary relies on corporate-level (out-of-scope) targets, it must demonstrate: Evidence of rollout, enforcement, and accountability The relevance and impact of those targets on the subsidiary’s own operations Where corporate targets are not impactful, the subsidiary must establish its own actions
In all cases, oversight by the highest governing body within the subsidiary’s scope of certification is required, consistent with other sub-requirements.
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Related Sub Requirements: | |