Understanding Impact Business Models: Toxin Reduction/ Remediation

What is the intent of the Impact Business Model? 

How do I assess my company’s eligibility for this Impact Business Model? 

What are some examples of products or services that have this impact?

My company may be eligible for this IBM. How do I open this IBM in the B Impact Assessment?

My company may be eligible for this IBM. What supporting information do we need to provide?

Concepts in the B Impact Assessment

What is the intent of the Impact Business Model? 

Toxic pollution refers to the introduction of harmful substances into the environment, specifically the land, water, and air. It is typically caused by industrial activities, improper waste disposal, and the release of poisonous or hazardous chemicals and pollutants. Toxic pollution poses a significant threat to the planet and its ecosystems, as well as human health. Reducing the level of toxins in the environment is crucial to protect the planet and human well-being. 

The Toxin Reduction/Remediation Impact Business Model (IBM) in the Environment Impact Area recognizes the positive environmental impact of companies whose products and/or services reduce the use of toxic or hazardous substances or remediate toxic pollution to air, land, or water. 

How do I assess my company’s eligibility for this Impact Business Model? 

Companies may be eligible for the Toxin Reduction/Remediation IBM  if their revenue-generating products or services benefit the environment in any of the following ways:

• A product that minimizes the need of toxic chemicals compared to market alternatives.

• A product which uses less toxic or hazardous chemicals or materials than market alternatives.

• A product which remediates environmental damage after discharges to air, land, or water.

• A product which directly prevents pollution or hazardous discharge.

This Impact Business Model is typically applied to products or ingredients with certifications that B Lab has reviewed to meet specific requirements and the intent of the IBM. 

When a product or service does not have a third-party certification, companies may provide research demonstrating that their product minimizes or eliminates the use of toxic chemicals compared to the industry standard. B Lab carefully reviews this research to determine the eligibility of the product/service for this IBM.  Separately from products being sold, for services that involve remediation or prevention of pollution or discharge, companies can provide information regarding the technology they have developed (e.g., data/specification sheet, product design illustrations), including any associated case studies, primary or secondary data that confirm its effectiveness. 

What are some examples of products or services that have this impact?

Products or services that have a direct impact on toxin reduction/remediation include:

• Non-GMO certified products in a country where there is no ban on the import or cultivation of GMO products (e.g., Indonesia).

• Non-toxic or less-toxic products that are clearly an alternative to standard products (e.g.,  cleaning products that substitute toxic or harmful ingredients with safe ingredients).

• Organic certified products.

• Brownfield remediation services. 

• Pollution management technologies.

This is an illustrative, non-exhaustive list of products or services whose impact can be captured in this IBM.

My company may be eligible for this IBM. How do I open this IBM in the B Impact Assessment (BIA)? 

If you are considering opting into this IBM, you will have to answer specific questions about the impact of your product/service that will determine which Impact Business Models you see in your BIA. These questions, called gating questions, ensure that you see the content that is most relevant to your company in your assessment. 

To find the gating questions for the  Toxin Reduction/Remediation IBM, navigate to the Environment Impact Area and search for the questions titled “Environmental Business Model”, “Environmental Product or Service Impact”,  “Environmental Product Benefits” “Direct Impact on Less Toxic or Toxin Remediation”. Please refer to the screenshots and the highlighted answer options for the correct responses that will open the Impact Business Model.  Any deviation from this will prevent the Toxin Reduction/Remediation IBM from becoming visible in your BIA. Please select ONE option per product line in the question ‘Environmental Product Benefits’. You may select an additional option if your product line has two separate environmental attributes.

To ensure that the Toxin Reduction/Remediation Impact Business Model shows up, answer the gating questions as shown in the images above Any deviation from this will prevent the Toxin Reduction/Remediation IBM from becoming visible in your BIA. 

My company may be eligible for this IBM. What supporting information do we need to provide? 

These are some examples of evidence that your company can provide during the Verification stage to confirm the applicability of the Toxin Reduction/Remediation IBM. These examples are not exhaustive – depending on your company’s specific business model or context, your Verification analyst may require additional or different documentation.

To demonstrate that your company’s product/service falls within one of the four categories of toxin-reducing impacts listed above, you may be asked to provide documentation such as: 

• Valid third-party documentation that has followed B Lab’s principles for credible third-party certification, e.g., Non-GMO Project certified, USDA Organic Certified, OEKO-TEX Standard, COSMOS.

• Information regarding the technology the company has developed (data/specification sheet, product design illustrations), including any associated case studies, primary or secondary data that confirm its effectiveness.

• Example of a remediation validation report from a project the company worked on that shows removal of toxic substances from the environment including any associated case studies, primary or secondary data that confirm its effectiveness.

This documentation confirms the eligibility of your company’s product/service for the Toxin Reduction IBM – next, we must measure the intensity or scope of the positive impact of the beneficial product or service. To do this, your company must provide a spreadsheet with revenue values associated with the beneficial products or services. Lastly, you must also provide information about whether your company measures the impact of the product/service and tracks the outcomes related to product/service to determine if it is achieving the intended positive environmental impact. 

Concepts in the B Impact Assessment:

Non-GMO - a product that is not made from genetically modified organisms, which is a plant, animal, or microorganism that has been subjected to biotechnology. 

Market alternative - A product or service that fulfills the same purpose and is available to customers in the same geographical area as the product or service evaluated in the B Impact Assessment.
Toxic pollution - Toxic pollution is contaminated water, soil, and air that is harmful or poisonous. It can include industrial wastes like toxic heavy metals from mining or chemicals from factories, pesticides, and also sewage and particulates from power plants. The term “toxic” is used to differentiate it from pollution that comes from increased levels of carbon dioxide. Toxic pollutants can poison drinking water, the fish in rivers and ponds, and food grown on contaminated farmland.

Near-term outcomes - This refers to the immediate or near-future results or consequences of a particular event, decision, or action. These outcomes typically occur within a relatively short period, ranging from a few days to a few months. Near-term outcomes are often tangible and measurable, and they can influence subsequent actions or decisions. Unlike outputs, which focus on what is produced/delivered, near-term outcomes focus on the impact or changes that occur as a result of the outputs. They are the effects or consequences of utilizing or implementing the outputs.

Long-term outcomes - The results or consequences that occur over an extended period, usually spanning months, years, or even decades. Long-term outcomes often have a broader impact and may be less immediately visible or measurable than near-term outcomes. For instance, long-term outcomes in the context of environmental conservation could include the restoration of an ecosystem, the reduction of carbon emissions over several decades, or the preservation of endangered species.