Fashion consumers may not be familiar with the term “B Corp-certified”, but this is changing fast. In October 2021, fashion label Chloé made headlines when it became the first luxury brand to acquire B Corp certification. Since then, more fashion brands and businesses have jumped on the bandwagon, including denim label Unspun and popular Hong Kong-based retailer OnTheList, placing them in the same league as sustainably minded peers such as Vestiaire Collective, Patagonia, Allbirds and Veja. Even Prada has expressed interest in gaining the B Corp seal of approval. B Corp certification isn’t new: it was established in 2006, by the US-based non-profit B Lab (the “B” stands for “Beneficial”). It measures a company’s social and environmental impact across various categories by analysing factors including employee benefits, charitable giving, supply chain practices and input materials. Over 4,000 companies have been certified, most of them in the FMCG (fast-moving consumer goods) industry. So why are fashion brands suddenly taking notice? “There is no other commonly recognised certification for the fashion industry in general,” explains Shaway Yeh , founder of the Shanghai-based sustainability consultancy YehYehYeh. “Yes, there are plenty of regulations and certifications that exist for products, and even manufacturers, but these are quite specific and customised. The [UN’s] Fashion Industry Charter for Climate Action [launched] in 2018 was a huge step forward, but it was more about working towards a common goal. “Brands still need a detailed road map with mutually recognised industry standards to follow and B Corp fills the spot because they cover a wide range of categories, are extremely transparent and have a rigorous audit system.” Delphine Lefay, co-founder and CEO of OnTheList – which helps top fashion brands sell out-of-season items, and customers to get their hands on them at discounted prices – views the company’s newly acquired B Corp certification as a natural extension of its ambition to promote a more circular economy while creating a deeper purpose. “We like [B Corp’s] commitment to engaging all stakeholders in the business,” Lefay says. “They don’t just verify how sustainable your business is, but provide a more well-rounded approach that examines the business across five pillars including community, customer, governance, environment and workers. “We decided that even if we didn’t get the certification, it was an incredible way to audit ourselves and understand our purpose better.” Getting certified isn’t simple – the assessments required for B Corp are among the most stringent in the industry. Lefay says the process took about 10 months, which included answering over 200 questions about the company, providing documentation and data for further verification, and an independent evaluation with a business auditor. To gain certification, a company must reach a minimum of 80 points out of 200 in an online assessment, before verifying their claims with supporting documentation (OnTheList scored 82, while Patagonia is among the highest ranked, at 151). You can only apply for one market at a time and the certification needs to be reviewed every three years. “For us, it’s a journey that will continue,” Lefay says. “From now on the idea is to refine our business and improve what we do and be better.” While B Corp certification may be lauded as a new gold standard for brands and companies, its impact isn’t far-reaching just yet. In general, the certification is more popular in the United States and Europe, with a much smaller presence in Asia. Yeh notes that it appeals to smaller businesses, especially in China, where it is popular among start-ups and younger companies looking to legitimise their sustainable credentials. Luxury brands have been slower to adopt the certification, Yeh says, because it involves a shift in values from shareholders to stakeholders – a concept the fashion industry as a whole has yet to embrace. The sustainability holy grail is so nuanced and can often be picked apart, which is why consumers deserve clarity Christina Dean, founder, Redress and The R Collective That said, the industry is in dire need of new standards, especially as the pandemic has revealed the failure of many brands to implement solid social and environmental practices, thereby affecting their reputation and trust among consumers. “Brands must continue to future-proof themselves for volatile and uncertain circumstances, from the war in Europe to consequences of climate change and from resource scarcity to fluctuating commodities,” says Holly Syrett, director of impact programmes and sustainability at the Global Fashion Agenda, a forum for sustainability in fashion. “They will increasingly seek ways through which to prove their integrity and instil trust in their stakeholders.” But despite the rigorous nature of the B Corp certification, Syrett adds, it still remains voluntary, thereby limiting its impact for those who embrace it. 5 best beauty products to keep in a fridge, and 1 you definitely shouldn’t “For systemic change, legislative and legally binding agreements will be necessary to bring up industry standards supported by governmental incentives,” she says. B Corp certification is also likely to gain momentum among consumers. Data suggests there has been an increase in conscious consumerism across the globe, driven in part by younger generations seeking more purpose-driven companies. These consumers demand more from brands and are continually looking for ways to hold them accountable. B Corp certification can help guide them through the somewhat muddy waters that surround sustainability. “The sustainability holy grail is so nuanced and can often be picked apart, which is why consumers deserve clarity,” says Christina Dean, founder of Hong Kong-based sustainable fashion platform Redress and eco-conscious label The R Collective. “This often comes from standards and certifications, and impact-driven businesses also need and deserve some differentiation for the added efforts and commercial losses that we endure in our plight for purpose.” Syrett agrees. “A common and recognisable standard like B Corp holds great potential to support citizens in navigating what is currently a very confused and complex certification space, and buy from brands they believe in.”