Why this matters for B Corp Certification
What is GACA 1.2 in the standards?
What do we mean by lobbying and political contributions?
How to create a report on lobbying positions and political contributions
Form and approval of the policy
Non-lobbying statement (if you do not lobby)
How to document GACA 1.2 in the B Impact Assessment
Introduction
Government Affairs and Collective Action (GACA) 1.2 requires your company to make its lobbying positions and political contributions public each fiscal year. This disclosure ensures your company is transparent, consistent, and responsible for how it seeks to influence public decision‑making, and that this influence aligns with your commitments to positive social and environmental impact.
GACA 1.2 complements GACA 1.1 (responsible lobbying policy) and your materiality assessment in PSG 2.3. Together, these requirements ask:
What do you lobby for?
How do you lobby?
How does this connect to your material impacts and purpose?
Why this matters for B Corp Certification
B Corps are expected to support collective social and environmental movements and to contribute fairly and transparently to the countries where they operate. Companies must act beyond their own interest and have a broader systemic impact. These efforts start from within and draw credibility from the leadership a company shows in its own sphere of influence.
What is GACA 1.2 in the standards?
Under the Government Affairs & Collective Action Impact Topic (GACA), GACA1.2 is a Year 0 requirement for Large, X Large, and XX Large companies. For these companies, meeting and maintaining the B Corp Certification requires publishing an annual report on lobbying positions and political contributions.
To meet GACA 1.2, your company must:
Publicly share its lobbying positions and political contributions each fiscal year, starting in the fiscal year before Year 0 and then annually.
Publish a public report that includes:
The value and recipient of financial and in‑kind political contributions.
A summary of the company’s material lobbying positions and the relevant recipients or intermediary organizations.
Ensure the report is:
Overseen by the highest governing body or a committee of it.
Published on the company’s website and accessible to all stakeholders.
Shared annually, beginning in the fiscal year prior to Year 0.
For smaller companies (Micro, Small, Medium, and Companies without Workers), a similar requirement (GACA 1.3) applies from Year 3.
What do we mean by lobbying and political contributions?
Lobbying
In GACA, B Lab uses a specific definition of lobbying adapted from Transparency International’s Corporate Political Engagement Index. “Lobbying” and “advocacy” are often used interchangeably and refer to activities carried out by, or on behalf of, an organized group that include:
Communicating directly or indirectly with public officials, policymakers, or their representatives with the aim of influencing public decision‑making; and/or
Seeking to influence public opinion, directly or indirectly, beyond normal advertising and marketing practices, in order to steer public decision‑making.
This covers both direct engagement with public actors and indirect efforts to influence public opinion, where the ultimate goal is to influence public decision‑making (for example, future regulations).
GACA also explicitly includes indirect lobbying via intermediary organizations such as lobbyists, consultants, or trade organizations.
Political Contributions
Adapted from GRI 415: Public Policy (2016), political contributions are financial or in-kind contributions, given directly or indirectly, to any of the following:
Political parties
Elected representatives
People seeking political office
These can include cash donations, sponsorship of events for political parties, paying for campaign materials or services, or providing staff time or other in‑kind support.
When does this apply?
GACA1.2 applies to Large, X Large, and XX Large companies. If your company does not engage in lobbying or advocacy as defined above, you can still meet this requirement by publicly declaring that you do not lobby.
Your report (or your non-lobbying statement) must be in place and publicly available before your Year 0 audit.
How to create a report on lobbying positions and political contributions
How to create a report
Structure your report so that it clearly covers the following elements required by GACA1.2:
A summary of your company’s material lobbying positions, including who/what entity was lobbied.
In the standards, “material lobbying positions” are those that meet at least one of the following criteria:
The position relates to the B Lab Standard (for example, climate action, fair work, JEDI, human rights).
The position relates to material topics in the company’s materiality assessment in PSG 2.3.
The position involves intermediary organizations in which the company has a significant role. A “significant role” may exist if the company
Holds a position in the governance body, participates in projects or committees, or provides major funding beyond membership dues; or
Views its membership strategically as a way to influence the intermediary organization’s objectives related to its own activities
If your company works with an intermediary organization (identified as part of meeting GACA 1.1) whose lobbying positions undermine your company’s lobbying policy, then the public report must include:
Your company’s position compared to the intermediary organization’s position
How the company is positively influencing the intermediary organization’s position
Your company’s “red lines” – the circumstances under which you would stop engaging with that intermediary.
This ensures alignment between your public commitments, your policy (GACA 1.1), and the collective lobbying conducted via trade associations, coalitions, or similar bodies.
Evaluate and disclose the value and recipient(s) of financial and in-kind political contributions. Good practice includes:
Listing each contribution, or types of contributions, by:
Recipient (party, candidate, elected official, PAC or similar)
Country/region
Amount or equivalent value (for in‑kind)
Type (financial, in‑kind, staff time, etc.)
Explaining any internal rules you apply to political contributions (for example, no corporate donations to parties, only to non‑partisan initiatives).
Form and approval of the policy
Your highest governing body (or a committee of it) must review and approve the policy.
The report can be
A standalone lobbying and political engagement report, or
Integrated into another public report (e.g. sustainability/impact report,ESG report, or annual report), as long as it
meets all the compliance criteria above, and
is publicly available and easy to find on your company’s website.
Non-lobbying statement (if you do not lobby)
If your company does not engage in lobbying or advocacy as defined above, you meet GACA 1.2 by publicly stating that you are not engaged in lobbying.
A good non‑lobbying statement should:
Clearly state that the company does not engage in lobbying or advocacy as defined in the standards;
Clarify that, if the company chooses to begin lobbying in future, it will:
Adopt a responsible lobbying policy (GACA 1.1), and
Begin annual public reporting in line with GACA 1.2.
You can publish this statement:
On your website (e.g. in governance, ethics, or sustainability sections), and/or
On your B Corp profile. Companies that do not lobby can meet GACA 1.2 and 1.3 by publishing (or committing to publish) a statement on their B Corp profile.
How to document GACA 1.2 in the B Impact Assessment
When completing the B Impact Assessment under the new standards:
Indicate whether your company engages in lobbying
Use the GACA definition of lobbying/advocacy to decide whether your activities qualify.If you lobby, provide your public report.
Upload or link to your public lobbying and political contributions report.
Ensure it includes all GACA 1.2 elements outlined above, meaning :
A summary of material lobbying positions and the relevant recipients or intermediary organizations.
Political contributions (value and recipient); and
If you do not lobby, provide your non‑lobbying statement.
Link to the public statement on your website or B Corp profile.
Provide governance evidence
Upload meeting minutes or similar documentation showing that the highest governing body (or a committee) has oversight of:
The lobbying and political contributions report, or
The decision and statement not to lobby
Use additional GACA guidance where needed
For more detail on acceptable documentation, see:
These resources explain what auditors expect to see at Year 0 and in subsequent reporting years.
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