What is a variance and how to request one

This article is guidance for companies preparing for or involved in their certification process, primarily during the self-assessment stage.

What is a Variance?

What is the Variance Request Process?
How to submit a Variance Request? 

What is a Variance?

A variance is formally approved time-bound exception to a B Lab Standard sub-requirement, granted when conformity is impossible due to objective limitations, such as legal, technical, or security infeasibilities.

Examples of legitimate grounds for variance include, but are not limited to:

• Legal infeasibility - local or national laws that prevent a full or partial implementation of a B Lab Standards requirement.

• Technical infeasibility - absence of critical physical infrastructure, such as renewable energy providers or waste management facilities in the region.

• Security infeasibility - where implementing a requirement would endanger workers, communities, or the confidentiality of sensitive data.

• Force majeure events, such as natural disasters, armed conflict, or other emergencies that temporarily prevent compliance.

Variances ensure that genuine limitations do not prevent companies from pursuing certification, while still protecting the integrity of the B Lab Standards.

What is the Variance Request Process?

The Variance Request (VR) process provides a pathway for companies to seek formally approved exceptions to compliance with specific B Lab Standards sub-requirements, when conformity is impossible due to objective limitations, such as legal, technical, or security infeasibilities.  

The VR process may also be used to apply the Equity Mechanism (EM) when a company is eligible, due to operational barriers in the country or territory they are based. For more information about the Equity Mechanism, refer to the articles: How the new B Lab Standards requirements are tailored to each company's context?, FAQs: Equity Mechanism

When must a Variance Request be made?

Variances must be requested during the self-assessment stage of the certification process. Companies must identify the need for a variance while reviewing the standards sub-requirements in the self-assessment, and must submit the variance request before the audit begins. 

Under exceptional circumstances, variance requests may be submitted during the audit stage in order to address a nonconformity identified by the auditor. However, the request must always meet the requirements for requesting a variance, such as legal, technical, or security infeasibilities which objectively limit compliance feasibility with a given standard, or due to eligibility for the Equity Mechanism. Please note that VRs submitted during the audit stage may delay the audit outcomes.   

How to submit a Variance Request? 

Variance requests are managed through B Lab's designated ticketing system to ensure proper tracking and recordkeeping.

Variance requests must be submitted via this Log a Variance Request form where a ticket and tracking mechanism will be generated. If your company qualifies for several variances (e.i. through the equity mechanism), please log one variance request for each sub-requirement. 

Instructions for completing the Variance Request form - To ensure a swift review and resolution of VRs, companies must include clear and accurate information in the following fields of the designated form:

1. Email address

2. Subject 

   • Use the following format: Company name (as per B Impact) / sub-requirement numeral indicator / type of variance request

3. Description 

   • Include a brief problem statement explaining 

     1. the objective limitation faced by your company; such as legal, technical, or security infeasibilities, or

     2. EM eligibility 

   • If (i) applies: Indicate and explain relevant sections of the evidence provided which support the objective limitation listed above.

   • If (i) applies: Include any additional relevant facts about the company’s specific situation or practices. 

4. Name of the Company as per B Impact  

   • Please indicate the name of the company as it appears in B Impact 

5. Company Location as per B Impact 

   • Indicate company location as per B Impact 

6. Company Size as per B Impact 

   • Indicate company size as per B Impact 

7. Variance Request Type 

   • Selected from the following options:

     1. Equity Mechanism

     2. Legal 

     3. Technical

     4. Security

     5. Other

8. Sub-Requirement Year

   • Select the subrequirement year that your company is working on (i.e. Year 0 if this is your first time on the new certification process)

   • Select from the following options:

     1. Year 0 subrequirements

     2. Year 3 subrequirements

     3. Year 5 subrequirements

9. Current Certification Stage 

   • Indicate the stage of the certification process are you currently in (self-assessment or audit stage)

10. Sector as per B Impact

    • Indicate company sector as per B Impact 

    • Indicate company industry category as per B Impact 

    • Indicate company industry as per B Impact 

11. Impact Topic (i.e. Purpose & Stakeholder Governance)

    • Requirement Number (i.e. PSG1)

    • Sub-requirement (i.e. PSG1.1)

12.  Certification Scope Memo Expiry Date

    • Indicate the Certification Scope Memo Expiry Date as listed in the memo. 

13. Attachment

    • Attach evidence which confirms the company faces objective limitations (i.e. confirmed by a reputable third party) to compliance with a sub-requirement.

    • Attachments up to 20MB can be attached to the submission form. If attachments exceed this limit or several attachments are provided, please share a link to a google drive in the description section, including relevant attachments and provide open access to users with the link. 

Who reviews Variance Requests? 

Variance requests are reviewed and responded to by B Lab’s Assessment Decisions Committee (ADC) made up of subject matter experts of the B Lab Standards. 

How long does it take to resolve a Variance Request?

B Lab will resolve and communicate the outcome of the request within 10 business days. If additional evidence or documentation is needed from the company to support the request, B Lab will request that information within 3 business days of the request being submitted. There is a maximum of two rounds of additional information requests.  

If the request cannot be resolved within the agreed upon timeline, or requires escalation, B Lab will inform the company of the updated timeline.

How to know if a Variance has been approved? 

• B Lab will communicate outcomes of the review via the ticketing system. 

• Approved variances will be recorded in the company’s B Impact assessment at the relevant subrequirement via a status update to “Variance Approved” and a comment from B Lab with the variance details.  

• An approved variance means that the company is not required to demonstrate conformity with that specific sub-requirement. 

• Variances may be issued for a limited period of time. Those limitations will be outlined in the response from B Lab. 

• The approved variance will be communicated to the assurance provider by B Lab.  

In Summary:

Variances to the application of the B Lab Standards may be requested by companies going through the B Corp Certification process, if they can demonstrate that there are objective limitations, such as legal, technical, or security infeasibilities, which limit their ability to comply with certain sub-requirements of the standards; or for the application of the Equity Mechanism.  

Resources & Further Guidance:

B Corp Certification Requirements for B Corps, Section 4.2.2 Requesting a Variance

How the new B Lab Standards requirements are tailored to each company's context? 

FAQs: Equity Mechanism

Submit a support ticket if you have further questions.