B Corp Climate Action Requirements: What Small Businesses Really Need
In brief
- Under B Lab’s new standards, Climate Action is one of the impact topics every company must meet to certify. There is no longer a points score that lets you skip it.
- Micro, small and medium companies do not have to measure their full Scope 1, 2 and 3 emissions. They must publish a climate action plan at certification (Year 0) and show progress against it by Year 3.
- Large companies must measure and publicly disclose Scopes 1, 2 and 3 every year, have the inventory verified, and set science-based targets with a transition plan by Year 3.
- For a small business, the work is mainly writing a credible plan with SMART targets, getting it approved and publishing it.
If your company is working towards B Corp certification, or holds B Corp Pending status, the climate section is one of the first things to plan for. The new standards are pass or fail by topic, so a gap in climate action can hold up the whole certification. The good news for small firms is that the requirement is lighter than many consultants suggest. This guide explains exactly what B Lab asks for, by company size, and what a good plan looks like.
What changed in the new B Corp standards?
Under the old system, companies needed 80 points on the B Impact Assessment and could earn them in any mix of areas. Under the new standards, every company must meet a set of foundation requirements and requirements in each impact topic, including Climate Action. Requirements are phased: some apply from the year you certify (Year 0), and others from Year 3 or Year 5. Which ones apply depends on your company’s size band, which B Lab defines in the standards.
Climate Action requirements by company size
| Requirement | Micro, small and medium | Large and above |
|---|---|---|
| Measure Scope 1, 2 and 3 emissions | Not required | Required from Year 0, disclosed publicly every year (market- and location-based) |
| Verify the inventory | Not required | Required from Year 0, every year |
| Climate action plan | Required from Year 0 | Replaced by a formal transition plan from Year 3 |
| Science-based targets (near-term and net zero) | Not required | Required from Year 3, covering Scopes 1, 2 and 3 |
| Show progress | Make and publicly disclose progress on the plan by Year 3 | Progress on the transition plan disclosed from Year 5, with the full inventory |
What must a small company’s climate action plan contain?
For micro, small and medium companies, the plan must do five things. It must commit to supporting the global goal of limiting warming to 1.5°C. It must include SMART targets, meaning specific, measurable, achievable, relevant and time-bound. It must say how people, technology and money will be allocated to deliver it. It must describe how you will work with stakeholders such as staff, suppliers and customers. And it must be approved by your highest governing body, usually the board or the directors. The plan must be public, for example on your website, and updated at least every 36 months.
What does a good SMART target look like?
B Lab notes that smaller companies’ targets do not have to depend on greenhouse gas measurements, and that business travel, purchased goods and services, and transport are likely focus areas. Targets can be about actions as well as tonnes. Here are examples for a 20-person design agency:
| Area | Weak target | SMART target |
|---|---|---|
| Energy | “Use greener energy” | Switch both offices to a 100% renewable electricity tariff by 31 March 2027 (owner: operations manager) |
| Travel | “Fly less” | No domestic flights from January 2027; rail for all UK trips under 5 hours; review the travel log every quarter |
| Purchasing | “Buy sustainably” | From April 2027, our five largest suppliers by spend are asked for their climate targets, and two have set them by April 2028 |
| Measurement | “Track our footprint” | Measure Scope 1 and 2 and business travel for FY2026-27 and publish the figures by September 2027 |
Even though measurement is not required at your size, a simple first footprint is worth doing. It shows which targets will make the biggest difference, gives you numbers to report progress against in Year 3, and prepares you if you grow into the large-company band. The free business carbon footprint calculator gives a quick estimate, and the GHG inventory template for Excel gives a fuller one. For what the scopes mean, see what is the GHG Protocol?
For a small company, the test is not a perfect carbon inventory. It is a public plan with targets you can actually check.
Common mistakes
The most common problems are targets that cannot be checked (“reduce our impact”), plans with no owner or budget, plans that only cover the office and ignore travel and suppliers, and plans that sit in a shared drive instead of being published. Another is promising to be “carbon neutral” through offsets alone, which does not meet the 1.5°C commitment and is now restricted in EU consumer claims. For the difference, see what is net zero?
How to get it done
Step 1: confirm your size band in the B Lab standards. Step 2: list your main emission sources, even roughly: energy, travel, purchases, deliveries. Step 3: set four to six SMART targets with an owner and a date for each. Step 4: write the plan, covering the 1.5°C commitment, targets, resources and stakeholder engagement. Step 5: have the directors approve it, publish it, and set a reminder to report progress before Year 3. If you would like help, climaRevolt’s editor writes climate action plans and first footprints for small businesses. See our services.
Frequently asked questions
Do small B Corps need to measure Scope 3 emissions?
No. Under B Lab’s Climate Action requirements, only large companies must measure and disclose Scopes 1, 2 and 3. Micro, small and medium companies must publish a climate action plan with SMART targets.
When is the climate action plan due?
At certification (Year 0). Companies then need to make and publicly disclose progress on it by Year 3.
How often must a B Corp climate action plan be updated?
At least every 36 months, and it must be publicly available.
Can carbon offsets meet the B Corp climate requirement?
Offsets alone do not. The plan must commit to the 1.5°C goal and set targets for the company’s own actions.
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