What the new B Corp Climate Standards mean for your business

Let’s face it: climate urgency is no longer news. 2024 was officially the hottest year ever recorded. Extreme temperatures, deadly heatwaves and widespread disruption are now part of our daily reality. 

Governments are taking action. So are consumers. And now, businesses are expected to follow — not someday, but today. 

That’s why, on April 8, B Lab introduced a sweeping update of the B Corp standards. And for the first time, Climate Action is a required topic. This marks a powerful shift: from optional ambition to measurable accountability. 

The new standards break climate action down into three clear, progressive requirements. They’re designed to guide your business from insight to action, in a way that’s scalable and realistic. 

CA1: Measure what matters 

Step one: know your footprint. Large companies are required to measure their Scope 1, 2, and 3 emissions every year and publish the results. That includes both location- and market-based Scope 2 emissions, and a detailed breakdown of Scope 3 (upstream and downstream). 

You’ll need to: 

✅ Use tools aligned with the GHG Protocol

✅ Clearly explain your methods and any exclusions

✅ Get third-party verification (for large companies) 

CA2: Commit to Net Zero 

Data without direction won’t get us there. CA2 requires companies to publicly commit to the global 1.5°C target and achieving Net Zero by 2050. 

This means: 

✅ Setting SMART climate targets 

✅ Creating a climate action plan

✅ Engaging stakeholders and ensuring strong governance 

CA3: Show progress 

Ambition must turn into action. Under CA3, companies are expected to implement their plans and demonstrate real, measurable progress — from internal accountability mechanisms to public updates. 

Good to know: CA3 does not need to be fulfilled at the time of (re)certification. You have three years after certifying under the new standards to meet this requirement.  

The new climate standards don’t treat climate action as a side project. They embed it across governance, operations, and supply chains. That’s the kind of systems thinking we stand behind at The Terrace. 

Here’s what we appreciate most: 

✅ Scope 3 is required — but realistic
Complexity is no longer an excuse. B Lab demands transparency, not perfection. 

✅ Science-based ambition is baked in
Companies must validate science-based targets within three years — aligning with our planetary boundaries. 

✅ Stakeholder engagement is core
True climate action is inclusive. Employees, suppliers, and communities all have a role to play. 

If you’re looking to become — or remain — a certified B Corp, this is your moment to act. 

Here’s where to start: 

✅ Get your data in order – including Scope 3
✅ Set science-aligned short- and long-term targets
✅ Build your roadmap – and start taking steps now 

Want to know what the new Climate Action standards mean for your specific company? The B Impact Assessment now includes a self-assessment based on the new standards. It’s a great place to begin.