Last updated: May 15, 2025
Your company size is determined by the higher of:
Medium-sized and smaller companies need to:
Companies in Medium category and below are NOT required to:
New standards launched April 2025, with a focus on continuous improvement over time.
In April 2025, B Lab launched new B Corp Certification standards, significantly raising expectations for business climate action. These standards require all certified companies to take meaningful, measurable steps to limit global warming to 1.5°C, with requirements tailored by company size and sector.
The new B Corp standards define a comprehensive framework for business climate action, with requirements that vary based on company size and sector impact. Importantly, they recognize the unique challenges faced by small and medium-sized businesses, providing a more accessible pathway for these organizations.
Companies are categorized based on the higher of either FTE workers or annual revenue:
| Category | FTE Workers | Annual Revenue (USD) |
|---|---|---|
| Sole proprietor | 0 | |
| Micro | 1–9 | Up to $2 million |
| Small | 10–49 | Up to $9 million |
| Medium | 50–249 | Up to $75 million |
| Large | 250–999 | Up to $350 million |
| X Large | 1,000–4,999 | Up to $1.5 billion |
| XX Large | 5,000+ | Over $1.5 billion |
Note: Companies are classified by the higher of their FTE or revenue metrics.
For medium-sized companies and below, the new standards focus on developing a credible, actionable plan rather than requiring full emissions measurement or science-based targets.
Medium-sized companies and smaller need to develop and publish a Climate Action Plan that:
The standards emphasize ongoing progress. Companies are expected to review and update their Climate Action Plan regularly, demonstrating continuous improvement over time.
Unlike larger companies, medium and smaller businesses are not required to:
The focus is on actionable commitments and practical steps, recognizing resource constraints for SMEs.
Companies above the medium threshold (more than 250 FTE or $75 million revenue) must:
A documented strategy outlining how a company will reduce its climate impact, including emissions reduction initiatives, resource allocation, and stakeholder engagement, with board-level approval.
While medium and smaller companies don't need to measure these, understanding the categories is helpful:
Targets that are Specific, Measurable, Achievable, Relevant, and Time-bound. For climate action, these should focus on reducing climate impact through clear, realistic goals with definite timeframes.
Follow these steps to meet the B Corp climate action requirements for medium-sized and smaller companies:
"The new B Corp standards recognize the unique challenges faced by medium and smaller businesses. The focus is on credible planning and commitment, not complex measurement—empowering every company to take meaningful climate action."
The official B Lab Climate Action standards documentation, published in April 2025.
The B Impact Assessment Knowledge Base contains detailed FAQs and resources about the new standards.
Official guidance from B Lab on how company size is defined for certification purposes.
Our team can help you develop a Climate Action Plan that meets B Corp requirements and drives meaningful environmental impact.
Company size is determined by whichever is higher: the number of full-time equivalent (FTE) workers or annual revenue. For example, if your company has 40 employees (Small category) but $50 million in revenue (Medium category), you would be classified as a Medium company for B Corp certification purposes.
If your company grows into a larger size category during your certification period, you will be assessed against the new size category's requirements during your next recertification. B Lab recognizes that transitions take time, and companies typically have a reasonable adjustment period to meet the more comprehensive requirements.
A Climate Action Plan should include: your company's commitment to support the global 1.5°C goal, SMART targets for reducing emissions, details about resource allocation for implementation, stakeholder engagement strategies, and evidence of board approval. The plan should be practical, achievable, and demonstrate a genuine commitment to reducing climate impact.
While not required for medium-sized and smaller companies, measuring GHG emissions can provide valuable baseline data to inform your Climate Action Plan and track progress over time. If you have the resources, starting with simple Scope 1 and 2 measurements can be beneficial, but this remains optional under the current B Corp standards.
CO₂ LAB's AI Sustainability Analyst can help you build a Climate Action Plan that meets B Corp requirements and drives meaningful environmental impact.
