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.
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: Managing Negative Impact through the Foundation Requirement.
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