How to structure an impact report under the new B Corp Standards
The B Corp Standards have changed. And lots of B Corps are asking me how the change should affect their next impact report.
Many have structured their reports around the five pillars of the old (v1.6) Standards. The new Standards (v2) have seven new “impact areas” instead.
So a question that keeps coming up is: how should you deal with this change in your next impact report?
My honest answer often surprises people - the B Corp Standards are a bit of a red herring. They tell you whether you have to publish a report, but they shouldn’t drive how you structure it. What follows is just as relevant whether you’re a B Corp or not.
The starting point: two types of impact
There are two types of impact that businesses have, and it’s important to consider and report on both: positive and negative.
Positive impact
Positive impact has two aspects.
First, the specific positive impact you want to have. One of the questions we ask in our impact reporting kick-off session is: what’s your purpose? And what’s your strategy for delivering it? One role of your impact report is sharing the progress you’ve made against this strategy during a particular slice in time.
Second, the other steps you’re taking to have positive impact, for example through your employment practices, volunteering or links with the local community.
Negative impacts
However hard we try, every single business has negative impacts on people and the planet. Carbon emissions, for example.
It’s important to understand these impacts and take steps to address them, starting with the most material ones. Being transparent about the impacts your business has, your plan to reduce them, and the progress you have made is an important part of being a responsible business.
Just talking about positive impact can damage your integrity and reputation.
What do the new B Corp Standards require?
This translates neatly into the impact reporting requirements of the new Standards.
At least every 12 months, the highest governing body of every B Corp has to review:
Progress towards their purpose (find out more about the purpose requirements)
Social and environmental performance
Progress implementing stakeholder governance, i.e. governance that considers everyone and everything affected by the business and its decisions
In addition, businesses with over 250 people and £55m revenue must share a report publicly each year that:
Identifies material topics not addressed in the B Corp Standards, sets targets, and reports progress
Shares social and environmental performance
For businesses with more than 10,000 people and £1bn revenue, this reporting should align with a third-party standard (e.g. GRI).
What this means is that public reporting is not required for businesses with fewer than 250 people or revenue under £55m.
Why are the B Corp Standards a red herring?
This is why I think the B Corp Standards are a bit of a red herring.
They tell you whether you have to publish a report, but they shouldn’t drive how you structure it. And many businesses will choose to publish an impact report voluntarily, because there are strong reasons for doing that.
If you’re wondering what those reasons might be, my impact reporting partner-in-crime Heather has written a helpful article on the benefits of publishing a voluntary impact report.
Working out the right structure for your own impact report?
Heather and I support businesses with their impact reporting – in our kick-off session, one of the most important things we will work through with you is how to structure your report. Book a Communicate Impact call to find out more.
Find out how we can help button
Four steps to structure your impact report
So, what should you do?
If you’re a B Corp, work out what B Corp requirements apply to you.
Decide whether you’re going to publish a public-facing impact report and, if so, why. For example, to engage existing or prospective employees, or to help win new work.
Get clear on your purpose and strategy for delivering it, which ideally should be aligned with your business strategy. That strategy should inform the structure of your impact report.
Decide how you will report on the other aspects of your social and environmental impact. In Keartland & Co’s impact report, I bundle all this into one section: “being a role model”. Other businesses choose to separate it out (e.g. into people and planet sections). You could choose to report using a third-party framework, but this isn’t a requirement unless you are very large.
Examples to learn from
If you’ve always structured your impact report around a particular framework (like the B Corp pillars), it can be hard to imagine doing it differently. Here are some examples of businesses reporting according to their strategy:
Osborne Clarke (we supported them with structure, content and copywriting)
You can see more examples in my impact report review series.
The question worth sitting with
Before you start, the question worth sitting with is this:
Why are we writing an impact report?
Get clear on that, and the structure will follow.
Frequently asked questions
QUESTION: Do all B Corps have to publish a public impact report?
ANSWER: No. The new B Corp Standards only require businesses with over 250 people and £55m revenue to publish a report publicly each year. Smaller B Corps are not required to publish one though many will choose to do so voluntarily because there are strong reasons for doing so, including engaging employees, helping win new clients / customers, creating a culture of transparency and sharing progress with investors.
QUESTION: How often do B Corps need to review their impact?
ANSWER: Under the new B Corp Standards, the highest governing body of every B Corp has to review their impact at least every 12 months. This review needs to cover progress towards their purpose, social and environmental performance, and progress implementing stakeholder governance. This could be done through an internal document.
QUESTION: Should I structure my impact report around the new B Corp impact areas?
ANSWER: Not necessarily. The B Corp Standards tell you whether you have to publish a report, but they shouldn’t drive how you structure it. A more effective approach is to structure your report around your own purpose and strategy, then report on other aspects of your social and environmental impact separately.
QUESTION: Can a business that isn’t a B Corp publish an impact report?
ANSWER: Absolutely. Plenty of businesses publish voluntary impact reports without being B Corps. The same principles apply: get clear on your purpose and strategy, structure your report around that, and be transparent about both your positive impact and your negative impacts.
How we can help
We partner with Small Footprint Agency to help purpose-led businesses write engaging impact reports that build trust, inspires action and reflects their progress. Whether you’re drafting yours now or still working out where to start, we’d love to help.