Risk Standards and Controversial Issues

This page provides an overview of risk standards and how negative impacts are determined under V1.6 of B Lab Standards. For specific information on how risk standards might impact your company, use the following links:

• Guidance for Eligibility & Minimum Requirements under V1.6 

  • This is the most important resource for companies under the V1.6 certification journey, compiling industry definitions, requirements, and eligibility criteria,

• Companies with direct involvement in controversial industries,

• Companies with clients or investments in controversial and ineligible industries.

WHAT IS A RISK STANDARD? 

B Lab’s risk standards are additional minimum requirements that companies in controversial industries and/or practices must meet to proceed with their B Corp Certification journey under V1.6. Risk standards are a necessary method to maintain credibility, manage risk, and achieve the impact B Lab seeks in the world. We publish B Lab’s risk standards and research on our website in order to provide transparency on requirements for B Corp Certification and to encourage further constructive public discourse.

WHAT IS A CONTROVERSIAL ISSUE? 

A controversial issue relates to a practice or industry in which the company’s involvement could potentially cause adverse impacts on different stakeholders.

HOW IS RISK ASSESSED UNDER V1.6 B CORP CERTIFICATION PROCESS?

The V1.6 B Corp Certification assesses a company’s risk (potential to cause negative impacts) separately from its positive impacts. While the B Impact Assessment captures a company’s positive impacts, a company’s negative impacts are identified through the B Impact Assessment’s Disclosure Questionnaire, background checks, and the public Complaints Process. 

A TRANSITIONAL MOMENT FOR  B LAB’S RISK STANDARDS 

Under V1.6, B Lab’s risk standards and processes outline additional minimum requirements that companies in controversial industries, or those with potentially negative practices, must meet to proceed with their B Corp Certification journey. 

At B Lab, we are committed to evolving our standards to address the complexities of global challenges and drive meaningful impact, and as part of this holistic evolution, the requirements have changed for companies submitting for certification under V2 Standards. Risk standards and involvement in controversial issues will no longer require standalone requirements to be met by companies undergoing certification. To know more about B Lab's new certification journey and standards, access the Certification Hub.