The new GACA impact topic at a glance

At Greenheart, a big focus over the past year has been helping our clients to better acquaint themselves with the new Version 2 (V2) B Corp standards. During this time, one piece of feedback we’ve consistently received from the B Corps we work with is just how much of a step up the new standards feel from the previous version, and we are inclined to agree. 

Indeed, V2 of the B Corp standards represents a significant raising of the bar for how companies demonstrate positive impact. One of the most notable differences is the enhanced expectation on companies to look beyond their own operations and ask a bigger question: how does our business use its influence in the wider world?

That question sits at the heart of the new Government Affairs & Collective Action (GACA) impact topic, which B Lab describes as “guiding companies to contribute to an equitable, inclusive and regenerative economy beyond their own operations, including through collaboration with external stakeholders and wider systems”.

While several requirements make up the GACA impact topic, this article will focus solely on the first, GACA1, which requires companies to take a responsible and transparent approach to lobbying. We felt it would be valuable to focus on GACA 1 specifically because this is where our clients have faced an increased challenge in terms of interpreting and implementing the subrequirements. 

What is responsible lobbying, and why is it so key to the B Corp movement?

For some companies, thinking about their lobbying practices may sound irrelevant at first because they do not see themselves as actively involved in “lobbying”. However, B Lab uses the term broadly and, importantly, sees lobbying as interchangeable with advocacy. 

In B Lab’s eyes lobbying is any direct or indirect efforts to influence public decision-making including through trade associations, industry bodies and coalitions, consultants or public campaigns. 

In other words, even if a company is not meeting politicians directly, it may still be influencing policy and public opinion. With this in mind it’s clear that normal day-to-day advertising and/or marketing of a company’s services and expertise are not considered lobbying by B Lab, merely attempts to influence public opinion or policy. 

For many working in the impact space, the term lobbying can conjure negative or even shady connotations. However, it is key to remember that lobbying is not inherently negative and can in fact be something to shout loud and proud about (and that transparency is key to the GACA requirements). 

In our view, businesses can play a valuable role in public debate by sharing expertise, highlighting practical challenges and advocating for better social and environmental outcomes.

It is only when lobbying is hidden, misaligned with a company’s purpose or used to protect commercial interests at the expense of people or the planet that it becomes problematic. For B Corps and aspiring B Corps, this creates a clear credibility question: does the company’s influence support the impact it claims to create?

Naturally, this lobbying and advocacy work is made immeasurably more powerful when it is carried out collectively;   businesses can have the most impact through collaboration, pooling resources and exchanging best practices. This emphasis on businesses getting actively involved in communities for positive change sits at the heart of B Lab Global’s theory of change. Some examples of this powerful, collective approach to advocating for positive change include the Better Business Act, B Corp Beauty Coalition and the B Corp Coffee Coalition. 

A closer look at the GACA1 subrequirements

GACA1 focuses on whether a company takes a responsible and transparent approach to lobbying. It includes three sub-requirements:

GACA1.1

The company has a public policy on responsible lobbying. 

This applies to all companies from Year 0. If a company does not engage in lobbying, it can meet the requirement by publicly stating this. B Lab guidance says that companies that do lobby should have a public responsible lobbying policy covering areas such as evidence-based advocacy, political contributions, intermediary organisations, governance, controls and grievance channels. 

GACA1.2

The company publicly shares its lobbying positions and political contributions each fiscal year.

This applies to Large, X Large and XX Large companies from Year 0. B Lab guidance says the disclosure should include material lobbying positions, relevant recipients or intermediary organisations and the value and recipients of political contributions.

GACA1.3

The company publicly shares its lobbying positions and political contributions each fiscal year.

This has the same expectation as GACA1.2, but applies to Companies without workers, Micro, Small and Medium companies from Year 3. The practical implication is that smaller companies have more time to build the systems needed to track and disclose this information.

Why might some companies find GACA 1 challenging?

We have already seen that GACA1 is prompting some difficult internal conversations. Indeed, some companies may find it difficult to accept that they lobby at all, particularly where their influence is indirect. Others may be comfortable sharing sustainability-related advocacy, but far less comfortable disclosing lobbying on more commercial or regulatory topics. For example, a company might engage in taxation, product regulation or sector-specific policy in ways that it has not previously made public. 

That discomfort is understandable. Publicly sharing lobbying positions is a significant step, especially for businesses that have historically treated public affairs as a private or specialist activity. But the direction of travel is clear: the new standards require companies to ensure the influence they hold, whether direct or indirect, is transparent, governed and aligned with positive impact.

Where should companies start?

Companies preparing for certification or recertification under the new standards should start by asking three simple questions:

1. Do we lobby, directly or indirectly?

This includes activity through trade associations, industry groups, coalitions, consultants or other intermediaries.

2. Are our lobbying positions aligned with our purpose and sustainability commitments?

If a company says it supports positive impact, its policy positions should not undermine that ambition.

3. Could we explain our lobbying activity publicly?

GACA1 is ultimately about transparency. If a position would be difficult to disclose or is misaligned with your purpose and impact commitments, it is likely a sign it requires closer review and may need to be dropped altogether. 

For smaller companies, GACA1.3 may not apply until Year 3, but waiting until then could create unnecessary pressure. Building a simple register to record any advocacy or policy engagement activities now will make future disclosure much easier.

Closing thoughts

GACA1 may feel like a big ask, particularly for companies that have not previously considered lobbying as part of their impact strategy.

But it is also very much in the spirit of B Corp Certification. The movement has always been about using business as a force for good. That means looking not only at what happens inside the company, but also at how the company shapes the systems around it.

Responsible lobbying means engaging with public policy discussions in a way that is transparent, evidence-based and aligned with better outcomes for people and the planet.

For B Corps and aspiring B Corps it is part of building trust not; just a compliance requirement. 

Preparing for the new B Corp standards?

We help companies understand what the new GACA requirements mean in practice, identify gaps and prepare the policies, processes and evidence needed for certification. If you are unsure whether your advocacy or trade association activity falls within GACA1, we can help you work through it. 

Let’s chat.