In order to operationalize the Equity Mechanism we have to simplify its application to contexts where one company’s scope covers multiple countries or territories. The Equity Mechanism applies based on the location stated in the company’s assessment (i.e. where the majority of workers are located).
B Lab intended to have the Equity Mechanism apply at the country level, regardless of the headquarter's location. This has proven operationally unfeasible and therefore needed to change.
Examples
A company in Kenya that only operates domestically is eligible for the Equity Mechanism.
A company in Brazil is eligible for the Equity Mechanism, even if it has operations in Canada and Germany.
A company in Germany is not eligible for the Equity Mechanism, even if it has operations in Brazil and Kenya.
In all cases, the company’s location as stated in their assessment is what determines the eligibility and the number of sub-requirements they can opt out of. The full list is available in the article How the new B Lab Standards requirements are tailored to each company's context?
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