B Lab (Hong Kong & Macau) is here to assist businesses dedicated to the balance of profit and purpose.

An Overview

In order to become a certified B Corporation in Hong Kong, the first step is to be informed about the B Corp Certification. It is a designation that a business is meeting high standards of verified performance, accountability, and transparency on factors from employee benefits and charitable giving to supply chain practices and input materials.

The pathway to becoming a Certified B Corporation will vary depending on your company’s size and complexity. This guideline will walk you through the procedure in the following 5 major steps.

  1. Check Eligibility and Costs
  2. Meet the Legal Requirements
  3. Complete B Impact Assessment with a score of 80 or above
  4. Enter into Verification phase and obtain Certification
  5. Prepare for Recertification

B Lab (Hong Kong & Macau) is here to assist businesses dedicated to the balance of profit and purpose.

Understanding Eligibility & Certification Fee

In this section, you will learn about which category of profiles your company falls into and the relevant costs for certification.

The certification procedure varies depending on the size of your company and its years of operation. Therefore, you are advised to check which of the following six categories your company would fall into.

Small-Medium Sized Enterprises

An small-medium size enterprise’s profile is described as follows:

  • With an annual revenue < $5M USD, and
  • Employs between 50 to 250 full-time employees

To find out more, download the Small-Medium Enterprise Guide or contact B Lab (HK & Macau).

Medium Enterprises

A medium enterprise’s profile is described as follows:

  • With an annual revenue > $100M USD, and
  • Employs > 250 full time employees

To find out more, download the Medium Enterprise Guide or contact B Lab (HK & Macau).

Large Enterprises

A large enterprise is either an eligible private or a public company:

  • With an annual revenue > $100M USD, and
  • With 10 or more subsidiaries operating in multiple countries

    OR

  • With an annual revenue > $1B USD

To find out more, download the Large Enterprise Guide or contact B Lab (HK & Macau).

Medium Enterprises

A medium enterprise’s profile is described as follows:

  • With an annual revenue > $100M USD, and
  • Employs > 250 full time employees

To find out more, download the Medium Enterprise Guide or contact B Lab (HK & Macau).

Large Enterprises

A large enterprise is either an eligible private or a public company:

  • With an annual revenue > $100M USD, and
  • With 10 or more subsidiaries operating in multiple countries

    OR

  • With an annual revenue > $1B USD

To find out more, download the Large Enterprise Guide or contact B Lab (HK & Macau).

B Movement Builders

Companies with an annual revenue of more than $5B USD would be considered as an eligible B Movement Builder. Please note that all subsidiaries must also follow the Large Enterprise approach, regardless of size.

Click here to find out more about B Movement Builders or contact B Lab (HK & Macau).

How much does it cost to be a Certified B Corporation?

B Impact Assessment (BIA) is a complementary platform for all companies to self-access their social and environmental impact and set the improvement road map. A company apply for the Certified B Corporation will be charged a non-refundable submission fee of US$350 at the time it submits its BIA for verification. The purpose of the submission fee is to enable B Lab to focus its resource on committed applicants. The submission fee can be used to offset the annual certification fee once the company is certified.

Certified B Corporations pay an annual certification fee, which licenses them to use intellectual property like the Certified B Corp logo. The Certification fees are calculated according to the revenue of the company

Pricing in US Dollars:

Company Annual Revenue Annual Certification
Fee
less than $1M $1,000
$1M to < $2M $1,250
$2M to < $3M $1,500
$5M to < $10M $2,500
$10M to < $20M $5,000
$20M to < $50M $10,000
$50M to < $75M $15,000
$75M to < $100M $20,000
$100M to < $250M * $25,000
$250M to < $500M * $30,000
$500M to < $750M * $37,500
$750M to < $1B * $45,000
$1 B+ Refer to Large Enterprise Certification Approach
Company Annual Revenue Annual Certification
Fee
less than $1M $1,000
$1M to < $2M $1,250
$2M to < $3M $1,500
$5M to < $10M $2,500
$10M to < $20M $5,000
$20M to < $50M $10,000
$50M to < $75M $15,000
$75M to < $100M $20,000
$100M to < $250M * $25,000
$250M to < $500M * $30,000
$500M to < $750M * $37,500
$750M to < $1B * $45,000
$1 B+ Refer to Large Enterprise Certification Approach

* Apart from annual revenue US$1B+, companies with annual revenue above US$100M and 10 or more subsidaries operating in multiple countries will also fall under the Large Enterprise Certification Approach. More detail, including related cost and annual fee, is available in the guide (please insert the link). Please contact us to discuss your case in detail.

What does my annual certification fee cover?

Price for certification varies according to the size of your company and based on principles of inclusivity, transparency, and fairness.

In general, B Lab costs are broken into four groups:

  • Verification and standards: Much of the annual fee you pay goes to cover costs associated with verification including expenses related to our standards review staff as well as to maintaining and developing the standards underpinning the certification.
  • Technology platforms: In addition to the certification we offer the B Impact Assessment as a free tool for companies to measure and improve their impact. These fees support the ongoing development and improvement of this tool alongside the B Hive, B Analytics, and our back office administration platforms.
  • Licensing fees: This is what you pay us to license the growing ‘B’ brand on your products, services, and marketing platforms and to support efforts to grow brand awareness.
  • Local and global movement building: Local and global movement building: Depending on the size of your company, the surplus from your fee goes to cover costs associated with growth and engagement efforts in service to a growing global movement.

As a non-profit organization, your certification fees cover a portion of B Lab’s operating expenses.

Legal Requirements and Stakeholder Governance

Certified B Corps are legally required to consider the impact of their business decisions on all of their stakeholders. To meet the B Corp Legal Requirement is essentially taking a step to integrate stakeholder consideration into the governance structure of the business, and how to achieve this varies from jurisdiction to jurisdiction.

It provides a legal framework that safeguards a company’s mission to use their business as a force for good, through ensuring its accountability and creating long-term value to all stakeholders.

Companies shall use the online Legal Requirement Tool to ensure meeting the stakeholder governance standards.

Specifications for Legal Requirements in Hong Kong

The B Corp Legal Requirement for Hong Kong (“HK Legal Requirement”) comes into effect on January 1, 2021, and is applicable to all existing or prospective B Corps that are in the legal form of a company or partnership. You may view the suggested language here as approved by B Lab to be integrated in the constitutional or governing documents of a company (i.e. articles of association).

For the avoidance of any doubt, there is no Hong Kong legislative process for this HK Legal Requirement to become part of any Hong Kong legislation. Adopting this HK Legal Requirement is not required under Hong Kong law or regulations, but is only required by B Lab for Hong Kong B Corps as part of B Corp Certification.

For more details on the background of the suggested language, and the suggested language for partnerships and limited partnerships, please refer to the document titled “Explanatory Note – B Corp Legal Requirement for Hong Kong”.

What is B Impact Assessment (BIA)?

The B Impact Assessment credibly evaluates a company’s impact on its workers, community, environment, and customers.

To become a certified B corp, companies that fall under the standard approach can access the B Impact Assessment online. This is a tool available for all business owners, and an essential step to take especially for those aspiring to be part of the B Corp movement.

Assess and Improve Along the Way

Participating in the B Impact Assessment is an on-going, rigorous growing process for your company to become a certified B Corp. The Assessment evaluates your company’s practices and outputs with questions across five categories – namely governance, workers, community, the environment and customers.

The goal of receiving a minimum verified score of 80 points on the assessment is also the first step towards B Corp Certification. Click here to know more about the B Impact Score.

The following is a short guide of how B Impact Assessment works on the pathway of certification:

Preparation

Action Items for Your Company

  1. To start with, register for the free and confidential B Impact Assessment
    Use the online Legal Requirement Tool to ensure meeting the stakeholder governance standards (see previous step – Legal Requirements).
  2. For multinational corporations: Complete the Risk Review and baseline requirements.
  3. Gather your supporting documentation and data, and get ready to record your answers.

Assess

Using the B Impact Assessment tool, you will answer a series of questions across the above-mentioned five categories of stakeholder interactions. Take the Customers category as an example, a sample question would be: How do you verify that your product improves the impact of your client organisations?

Improve

By answering most of the questions, you will successfully establish a company profile.

At this point, you will be prompted to participate in the Disclosure Questionnaire. Also, you will learn your baseline score; if it is under the 80-point benchmark, reevaluate and prioritise improvement areas. Or, if you’re over the 80-point benchmark, you are ready to submit your B Impact Assessment for review!

The B Impact Assessment platform constantly updates the latest standards and provides free tools, such as customised improvement reports, practice guides and case studies, to help you identify, track, and learn about improvement opportunities and best practices over time.

Enter into Verification phase and obtain Certification

What happens after submitting the assessment?

After the application, your company profile on B Impact Assessment will be reviewed by the B Lab Standards Trust Team. The purpose is to verify social and environmental performance. The verification process involves multi-steps from your company as below.

Actions Items for Your Company

  1. Upload requested supporting documentation to the Verification Report in the B Impact Assessment (BIA).
  2. The Standards Analyst assigned to work with the company will review the information provided and select additional questions for review.
  3. Provide final supporting documents and clarifications to complete the Assessment Review.

The verification process is undertaken with a high level of transparency, with the following procedures, from entering the Evaluation Queue to the Post Verification Phase, administered by B Lab.

  1. Evaluation Queue → B Lab has received your submission
  2. Evaluation → B Lab has begun to evaluate your Assessment
  3. Verification Queue → Evaluation has been completed! B Lab is waiting for team capacity to become available
  4. Verification → Here we go. B Lab is actively verifying your Assessment with you
  5. Improvement → B Lab has recommended updating some answers or increasing your score before entering Verification again
  6. Post Verification → Just a few more items to button up

Remarks

If applicable, your company will schedule a review call to discuss certain responses in the company’s Assessment for further clarification.

The length of the verification process will depend on your the company’s size and complexity and the availability of the company’s team and B Lab staff. It is a rigorous process. It is not uncommon that the score is reduced during the process and additional improvements are required to pursue the certification.

Prepare for B Corp Recertification in Every 3 Years

Certification Maintenance and Quality Control

At this stage, your company will sign the B Corp Declaration of Interdependence.

Once certified, each B Corp can show its company profile and its Impact Score transparently on the B Corp Directory, allowing the public to see the areas in which specific companies excel and compare B Corps’ scores against the performance of the mainstream business.

This is only the beginning. Please note: B Corp certification requires recertification every 3 years.

Find out about recertification procedures

Are You Ready?

If you’ve read from Introduction through to Recertification, and have all required documents on hand, then chances are yes. Let’s go!