The number of businesses in the UK who are certified B Corps has now reached the 2,000 milestone. Leap has been part of the movement since 2016 and have since helped lots of other businesses through their own B Corp journeys. B Corp and its B Impact Assessment (BIA), is the most holistic system we have found for managing our business impact, but it’s not the only certification out there for companies that want to use business as a force for good. B Corp does however have one important component that sets it apart from the rest — it involves actual legal commitments.
Making the legal change
B Lab UK states that;
“All companies seeking to become a B Corp must meet the B Corp legal requirement and update their Articles of Association to include mission-aligned legal language.”
For limited companies, this means including the wording set out in the B Corp Legal Agreement verbatim to their Companies House documentation. A legal commitment to use business as a force for good, by:
- Creating a material positive impact on society and the environment through your business and operations
- Considering ‘stakeholder interests’ – including your shareholders, employees, suppliers, society and the environment
Understanding the impact report requirement
B Corps are also required to publish an annual impact report, which is more than just a legal obligation. It’s a chance for transparency and accountability, enabling businesses to share their progress in a meaningful, evidence-backed way.
Section 2.5 of the ‘Legal Requirement’ for B Corps in the UK says:
“The Directors of the Company shall, for each financial year of the Company, prepare and circulate to its members an impact report. The impact report shall contain a balanced and comprehensive analysis of the impact the Company’s business has had, in a manner proportionate to the size and complexity of the business. The impact report shall contain such detail as is necessary to enable the members to have an understanding of the way in which the Company has promoted its success for the benefit of its members as a whole and, through its business and operations, sought to have a material positive impact on society and the environment, taken as a whole. If the Company is also required to prepare a strategic report under the Companies Act 2006, the Company may choose to publish the impact report as part of its strategic report and in accordance with the requirements applying to the strategic report.”
We work alongside businesses to not only meet this legal requirement but to go beyond it. B Corps and non-B Corps alike can approach impact reporting in various ways — whether as part of a strategic report or a standalone document that truly reflects your business.
Radical Transparency in Action
A great impact report can take many forms. How you decide to execute yours depends both on the complexity and needs of the business and on how you’re planning to use it. It could be a simple pdf, an interactive digital report, a microsite or area of your website, a beautiful coffee table print. You could produce a video and accompanying social assets to help share it with a larger audience. Heck, if you happened to be Who Gives a Crap, you could print it on loo roll.
An impact report is a real opportunity for honesty, embracing the imperfections of the journey and to lead with radical transparency.
If you need some inspiration, we created a hub for businesses to share their impact reports to help others to get started, do research, and see the huge variety in what an impact report can be. Check out the Impact Reporting Archive (and if you already produce one, it’s super easy to add it to the archive).
How we support your impact journey
Over the years, we have learned a thing or two about producing great impact reports. We work collaboratively, side by side with our clients all the way to delivery and beyond.
Our team offers support with:
- Workshops & Planning
- Guidance & Coaching
- Concept & Design — for PDF, print, and digital/web reports. (Or loo roll!)
We believe in ensuring you not only meet your legal obligations but do it your way — delivering transparency that drives real change.
If you’d like to chat about your impact report, let’s talk: [email protected].