For any company marketing products or services to consumers in the EU, a credible, third-party certification is no longer just a good choice—it is a legal requirement for using a sustainability label.
B Lab Standards & B Corp Certification in the context of ECGT
B Lab’s new third-party certification model under version 2 (V2) of the standards provides companies of all sizes with a streamlined way to comply with the ECGT Directive. This certification model strengthens impact credibility and meets the legal requirements for being a valid sustainability label in the EU. B Corps can safely communicate their impact and sustainability efforts through certification, thus safeguarding their reputation and credibility while reducing financial and legal risk.
Transitioning to the new standards simplifies the path to ECGT compliance.
B Lab is creating certification pathways that will enable ECGT-affected companies to be certified on the B Lab Standards V2.1 and certification model by September 2026. Your prior work on impact management has prepared you for this transition. The new standards provide a clear, streamlined path to ECGT compliance. Third-party verification under the new certification process is expected to provide companies with a reliable way to meet ECGT deadlines.
Substantiated claims and greenwashing risk reduction.
The EU directive aims to prohibit misleading practices, such as greenwashing and non-transparent sustainability labels. By transitioning, you gain a new layer of credibility and powerful resources to avoid greenwashing, ensuring your messaging is not only authentic but also substantiated, simplifying the work for you. The new B Corp Certification claims and updated brand guidelines enable companies to prove their sustainability commitments and practices. Under the B Lab Standards V2, certification meets the legal requirements for being a valid sustainability label in the EU. New brand resources include an extensive, pre-approved messaging library backed by proof points, tested with consumers, reviewed by B Lab experts, and rooted in our standards. Many of these new claims can only be used by companies verified on V2.
Credible, third-party-verified certification. B Lab’s new certification model will comply with the ECGT Directive, effective September 2026. This means that by certifying under V2, you can publicly communicate your certification in the EU. The B Corp logo signals that you uphold social, environmental, and governance standards laid out by B Lab and verified by an independent third party meeting B Lab certification requirements for assurance providers based on ISO 17021-1. For this reason, V2 of the standards represents a clear step towards credibility.
A step to avoid fines and brand damage. The B Lab Standards V2, and our approved B Corp claims and brand guidelines, comply with ECGT. By transitioning to the new standards, you are reducing your company’s financial risk and the significant brand damage that comes from non-compliance. Failure to transition and communicate your status under the new standards could expose your company to legal and financial risk. While this is a worst-case scenario, the fines for non-compliance under the ECGT directive can be up to 4% of a company’s annual turnover. One way to mitigate this risk is to begin your transition to the new V2 standards now.
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