#16 GKC | 🤝 B Corp Certification: How To Evaluate Impact Using B Impact Assessment

Happy Friday! Another week, another exciting learning on impact measurement :)

Continuing our Know Your Investors Series, in collaboration with Turbo Net Zero.

Turbo Net Zero is a pure-play sustainability consultancy company focuses on delivering ESG value-creation solutions for corporates and investors.

We’ll discuss about the evolving field of impact investing across Southeast Asia in three parts.

1. Overview of global impact investing frameworks (Today’s Episode)

2. Sector-specific impact themes within SEA

3. Case studies of successful impact investors and companies in SEA

Let’s get started!

Introducing B Corp & The B Impact Assessment

B Lab, a non-profit organization dedicated to fostering inclusive and sustainable economies, has created a holistic framework B Impact Assessment (BIA) to capture the full spectrum of a company’s impact.

B Corp certification, earned through BIA, has become a trusted symbol globally for businesses that prioritize more than just profit. Over 4,000 companies in 77 countries have achieved B Corp certification, demonstrating the widespread use of this assessment. BIA evaluates corporate performance across five key areas as below.

Key Features of B Impact Assessment

The BIA process is straightforward. Companies begin by answering a series of questions related to the five key areas. The tool provides guidance on where companies can improve and what actions could help them score higher.

Businesses scoring at least 80 out of 200 points can proceed to apply for B Corp certification. The certification process includes legal adjustments to ensure companies commit to considering all stakeholders (not just shareholders) when making decisions.

After meeting these requirements, companies must sign the B Corp Declaration of Interdependence, making their social and environmental mission legally binding.

Further, the BIA is designed to be flexible, allowing companies to save progress and return to the assessment at any time. The assessment is divided into categories based on company size and industry, ensuring relevance.

Questions are structured as multiple-choice options with clear guidelines for each. Companies are encouraged to provide supporting documentation, especially for higher-scoring areas, as this helps verify their responses.

The assessment also offers benchmarking data, allowing businesses to compare their performance with similar companies, providing additional motivation for improvement.

One of the strengths of the BIA is its alignment with the United Nations Sustainable Development Goals (SDGs). These 17 global goals provide a roadmap for businesses looking to contribute to sustainable development, with the BIA offering practical measures to achieve these goals.

Case Study: Bintang Capital Partners

Through the BIA, Bintang Capital, a private equity firm based in Malaysia, ensures that its investments align with the broader goals of sustainability while also generating positive social outcomes for underserved communities.

The firm’s efforts are a reflection of the broader trend in Southeast Asia, where impact investing is increasingly becoming a vehicle for addressing pressing social and environmental challenges.

Bintang Capital's commitment to ESG performance demonstrates how the BIA can be an essential tool for businesses aiming to make a measurable impact.

By investing in businesses that contribute to social and environmental solutions, Bintang Capital is both delivering returns and contributing to the regional growth of sustainable investments.

Key Takeaways

From an investor's perspective, the BIA offers a comprehensive evaluation of a company’s impact credentials, increasingly attracting those seeking financial returns aligned with measurable social and environmental benefits.

Next week, we will explore another impact tool, Measuring Impact with UN SDGs.

Stay tuned!

Again, thank you Turbo Net Zero for this amazing content collaboration.

If you are an impact investor looking to implement ESG strategies OR corporates exploring impact measurement strategies, hit Kenny up!

~~

Hope this is helpful! 🙂 

Feel free to reach out via LinkedIn or email if you have more questions.

References

• B Lab

• Bintang Capital Partners

• TIESS

• UN SDGs

• World Economic Forum. (2023). From the Margins to the Mainstream: Impact Investing in Southeast Asia

• Invesco. (2023). ESG and Impact Investing in Asia