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Since 2006, not-for-profit B Lab has offered a new metric for gauging a company's worth on a triple-bottom-line of whether it balances profit, people, and the planet. With 420 B Corp status companies currently in Australia and 4,418 across the globe, it's clear that B Lab is providing a certification that companies are eager to have: Here's what it means.
Reaching B Corp status is no easy feat, with B Lab only offering it to companies that pass a rigorous standards test, which lasts just three years before recertification is necessary. B Lab investigates a corporation's financial, social and environmental performance to ensure the company passes its risk review and is making a genuine, positive change within the world.
B Corp Certification is holistic rather than a single social or environmental issue, requiring internal culture examinations alongside looks at work processes and business models.
Companies also have to make a legal commitment to be accountable to all stakeholders, not just shareholders, and create transparency by allowing their performance against B Lab's standards to be publicly available via the B Lab website.
For example, the investing business Sharesies — which removes barriers to investing by letting users buy shares and exchange-traded funds (EFTs) across Australian, New Zealand and US markets with as little as one cent — is built around a philosophy of making investing accessible to all, and was certified with B Corp status in 2019.
"It's hard work becoming a B Corp,"said Sharesies cofounder and co-director Brooke Roberts. "There's a big assessment and audit. But it was so worth it, and I think it's good that it's such a rigorous process. It shows that businesses who are B Corp accredited are serious about being a force for good and committed to their goals to deliver on their purpose alongside profit."
For Roberts, B Corp certification proves that the company's rhetoric of empowering customers to invest isn't just talk — it's certified.
"We're all committed to providing equal access to investing in Australia. Our aim of giving someone with $5 and $5 million the money investment opportunities is something that the whole team believes in, and strives for."
"For Sharesies, being a B Corp shows we are serious about our goals and purpose. It keeps us accountable for the way we want to work, and the way we believe every business should operate."
Investing in B Corps is just one way to ensure that not only a company's morals are verified, but so is their business model. You can find a list of B Corp Certified company's via B Lab's website, and read more about their verification process there to see if they resonate with you and your investing objectives.
Sign up here with promo code "UINVEST" for $10 in your account. Terms apply.
All investing involves risk. T&Cs and fees apply for use of the platform provided by Sharesies Limited. $10 applies to new accounts only and promotion T&Cs apply. This article is sponsored by Sharesies AU Pty Limited, as an authorisesd representative of Sanlam Private Wealth Pty Limited (AFSL No. 337927). This is not financial advice and the information provided in this article has been prepared without taking into account your objectives, financial situation or needs. Speak to a licensed financial advisor for advice specific circumstances. Image shown does not represent a real portfolio.
Created by Pedestrian Group with Sharesies
