From global warming and natural resource depletion, through to biodiversity loss and socioeconomic inequality – the impacts of the global economy on people and the planet have never been more evident, and the need for system change more urgent.
In this decisive decade for sustainable action, corporate purpose matters to everyone: customers, employees, shareholders and investors. It is not only expected of all businesses, but demanded of them too. Sustainable practices have become key to business longevity, and good intentions simply won’t be enough to survive in the years ahead.
That’s where frameworks such as B Corp come in. Through the collective action of B Corporations across the globe, known as the B Corp movement, the aim is to foster an inclusive, equitable, and regenerative global economy by moving from a model that profits few, to one that benefits all.
Built on the simple fact that business impacts and serves more than just shareholders, the B Corp movement has grown rapidly over the past 15 years and now represents over 5,000 purpose-driven businesses worldwide. Though the movement has historically been driven by small and medium-sized enterprises (SMEs), a number of global businesses have become certified B Corps over the past two years – primarily across the fmcg industry and most recently including Nespresso.
These certifications are a clear reflection of how far the movement has come, but they have also sparked debate about the eligibility of larger businesses to join the B Corp community. There is of course no doubt that multinationals have complex sustainability challenges and risks to navigate across global supply chains. However, this discussion also raises an important question – how can the B Corp mission to make all business a force for good be realistically achieved, if big business isn’t part of the equation?
In 2017, large enterprises were estimated to represent 40% of total manufacturing employment and 25% of service employment in OECD countries, with the sales of Fortune 500 companies alone representing one-third of global GDP in 2021. This means large corporations are in a position to leverage their extensive brand reach and invest in transformative action at scale.
Most importantly though, large B Corps have an opportunity to work alongside SMEs to advocate for change – proving to the world, including other multinationals, that it is possible to grow, keep pace with tough standards and create positive impact all at the same time.
Like all B Corps, global organisations undergo an extremely rigorous and transparent assessment process to become certified and also make the same legal commitment to consider the impact of decisions on all stakeholders. For multinationals just starting out on this journey, it is crucial to:
- Secure senior buy-in: Commitment and passion for the process needs to cascade through the business, from the top down
- Recognise it’s a huge exercise in data management: Be prepared to invest significant time and resources in the process and establish an ‘engine room’. Nespresso’s B Corp certification is based on around 14,000 data points, covering 350 questions across our operations in 38 markets – and took almost three years to complete
- Work with experts: Enlisting specialist support, such as expert consultancies, makes the learning curve less steep and accelerates the process.
While earning B Corp certification is a fantastic achievement, the true reward is gaining a deep understanding of all aspects of a business, its impact and what the opportunities are to accelerate sustainable action – using the impact data gathered every three years as part of the B Impact Assessment.
Ultimately, the strength of the B Corp movement lies in the collective impact of a diverse, but like-minded community that is striving to achieve one unifying goal: to make business a force for good. There is no planet B, and all businesses – large and small – need to be the change that we all want to see.
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