ASX companies embrace B Corp certification in commitment to positive impact

The number of B Corp certifications in Australia and New Zealand accounts for ~8.5% globally
Australian Ethical Investor became the first publicly listed company in Australia to gain B Corp certification in 2014
MoneyMe became B Corp certified to ensure the fintech dedicates time and resources to sustainability initiatives

The number of certifications in Australia and New Zealand accounts for ~8.5% of the global B Corp community

March has been B Corp Month, with B Lab, the nonprofit certifying body, saying from January 2022 to January 2024, the number of companies earning the prominent B corp mark globally more than doubled from 4000 to 6000.

Source: B Lab Australia and Aotearoa New Zealand

Despite the smaller populations of these countries, the certifications in Australia and New Zealand constitute ~8.5% of the global B Corp community.

B Lab Australia and Aotearoa New Zealand CEO Andrew Davies says the robust growth reflects significant dedication of regional businesses toward fostering positive environmental and social impact.

To become a B Corp companies must score at least 80 points across five areas – governance, workers, community, environment, and customers.

There are several companies listed on the ASX that have obtained B Corp certification. In Part 2, we will delve into some of these ASX-listed companies.

READ Aussie companies embrace B Corp certification in commitment to positive impact – Part One

Australian Ethical Investment (ASX:AEF)

In 2014 the superannuation and managed funds provider became the first publicly listed company in Australia to gain B Corp certification.

AEF says it’s dedicated to investing by prioritising both financial security for clients and fostering positive societal and environmental impact.

At the heart of the company’s investment strategy lies their Ethical Charter, serving as a navigational tool determining their proactive support and conscious avoidance of certain investments.

“B Corp aligns with our ethical charter to do right by people, animals and the planet, which has been the driving force behind all business decisions, and most importantly how we invest our members’ and investors’ money, since Australian Ethical was founded in 1986,” chief strategy and innovation officer Marion Enander told Stockhead.

MoneyMe (ASX:MME)

In August 2022, the fintech applied for B Corp certification and successfully attained it by August 2023. MME says it became B Corp certified to ensure the company dedicates time and resources to sustainability initiatives that authentically create value and to avoid any misleading or insincere sustainability claims (greenwashing).

MME head of ESG Alexander Graham told Stockhead being a B Corp is a commitment to transparency, accountability, and genuine impact.

“We firmly believe that the future of successful businesses lies in their ability to do good in the world, and our decision to become a B Corp reflects that belief,” Graham says.

“This has also been validated by our customers, 82% of them say they care about the sustainability performance of lenders.”

Graham says since becoming a B Corp journey MME has started measuring and reducing its greenhouse gas (GHG) emissions and set science-based reduction targets.

It has also create meaningful and impactful charity partnerships, launched environmental product features including a discount for electric vehicle and financing plus improved its employee value proposition and benefits.

“Being a B Corp is a constant reminder that our actions need to align with our values and that we must strive to uphold the highest standards of sustainability,” Graham says.

Biome Australia (ASX:BIO)

The microbiome health company has been a certified B Corp since 2021. According to the company the BIO team feels strongly that businesses can be a force for good.

“Biome Australia aims to improve not only health outcomes, but be seen as a company working to redefine success in business, demonstrating that inclusivity and sustainability can be part of a healthy economy,” the company says.

BIO says in line with B-Corp values, the company aims to be an equal opportunities employer, with support and flexibility forming the cornerstone of its workplace culture.

KMD Brands (ASX:KMD)

With a customer base valuing the great outdoors, it makes sense that the global outdoor, lifestyle and sports company would want to show its commitment to environmental and social impact.

In March 2023, KMD announced that all of its operations and brands – Kathmandu, Rip Curl, and Oboz – had successfully obtained B Corp certification.

KMD says Kathmandu was one of the first outdoor apparel brands in Australia and New Zealand to be B Corp Certified in 2019, and in 2023 became recertified with a significant improvement on its impact that was commended by B Lab.

The company says Rip Curl and Oboz have worked hard for a number of years to evolve, expand and improve on their existing practices and policies to achieve B Corp certification for the first time in 2023.

Synlait Milk (ASX:SM1)

SM1 announced in December 2023 that it had been recertified as a B Corp and increased its impact score by 21.5% to 97.7, remaining the only New Zealand headquartered dairy processor with this accreditation.

The company says the strenuous accreditation process reinforces SM1’s commitment to considering the impact of its decisions on all its stakeholders and the environment.

“Our B Corp recertification proves that Synlait meets the highest standards of verified social and environmental performance, public transparency, and legal accountability to balance profit and purpose,” CEO Grant Watson says.

He says it is completely aligned with the company’s purpose of “Doing Milk Differently for a Healthier World.”

“Our world-class sustainability credentials are increasingly requested by our key global customers and is a competitive differentiator for Synlait in sales negotiations.

“I am proud of all the work everyone at Synlait does to push ourselves to succeed against these targets.”