02 May 2025 – Important Update: Since the original article was published, the final version of the new B Corp standards was released in April 2025. As a result, some of the information below, based on the 2024 draft standards, may now be out of date.
Key changes from the draft include:
- Added due diligence requirements for companies operating in conflict-affected areas
- Less prescriptive supplier living wage and income requirements, mirroring the approach for companies’ own workers under Fair Work.
- Introduced remediation expectations for larger companies to address actual negative impacts
- Added human rights screening and mitigation requirements for investment-related sectors
- Specified expectations for identifying high-risk suppliers, setting targets and monitoring progress on human rights impacts
We are continuing to share insights on how to meet the new requirements. Sign up to our newsletter to stay up to date.
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Human rights isn’t just a ‘big company’ issue anymore. With the new B Corp standards, businesses of all sizes will need to step up. Whether you’re a startup or an established enterprise, respecting human rights is now a core expectation.
These updated standards are a powerful call to action – encouraging companies not only to avoid harm but to actively contribute to a fairer world. From assessing your supply chain to embedding responsible policies, it’s about understanding your impact on people and doing better, beyond your own operations.
Sound daunting? Don’t worry. We’ve broken it down for you.
How does human rights feature in the new B Corp standards?
Human rights are a significant new focus in the New B Corp Standards, marking a significant shift from the previous version of the B Impact Assessment, where they weren’t a primary focus. Once only applicable to large companies, human rights is now a standalone Impact Topic in the New B Corp Standards, with requirements for businesses of all sizes.
The goal of introducing mandatory requirements for this Impact Topic is to encourage B Corps to go deeper into this topic than they ever have done before. This includes proactively assessing potential and actual harm to all individuals and communities affected by the company’s own operations, as well as those in the value chain. For in-depth insights on the fast-evolving regulatory landscape around supply chains, read Fern’s recent blog here.
Taking responsibility for human rights starts with an assessment to identify the company’s actual and potential negative impacts on people’s human rights. This includes understanding the company’s salient human rights issues, which are defined as: “The human rights at risk of the most severe negative impact through the company’s activities and business relationships.” (Source: UN Guiding Principles Reporting Framework)
Once the company understands its salient human rights impacts, it can take action to prevent and reduce harm and contribute to positive social change. The B Corp Standards challenge companies to go beyond the usual “do no harm” mindset, encouraging them to actively create positive outcomes for people . As you might expect, some Certified B Corps have been championing such practices for a while. For example, Tony’s Chocolonely – whose entire brand is centred around eliminating slavery in the supply chain – recently lobbied the EU for enhanced human rights due diligence legislation. Ben & Jerry’s has long had a focus on social mission, holding human rights and dignity at the very core of their values.
How does a company meet the new B Corp human rights requirements?
As this may be a new area for many companies, including certified B Corporations, here is an overview of some key requirements under the new standards.
New B Corp human rights standards – all businesses:
- Make a public commitment to respecting human rights by implementing a clear and accessible human rights policy.
- Identify actual and potential negative human rights impacts, focusing on the most critical human rights issues relevant to your operations.
- Develop a strategy to address the issues with stakeholders and by updating company policies and procedures,
- Share regular public progress updates on actions taken to address human rights issues.
- If conducting a materiality assessment, ensure human rights issues are considered during this process
- All companies must evaluate human rights considerations at both ends of their direct supply chain, from procurement decisions to the sales process. Potential clients and projects will need to be assessed for negative human rights impacts before proceeding with a contract.
New B Corp human rights standards – larger companies:
Larger companies face more rigorous requirements, reflecting the scale of their operations::
- Work with suppliers to understand and take action on potential and actual human rights issues in the supply chain, such as when selecting source countries and raw materials for product businesses.
- Improve traceability of raw material origin and mitigate associated human rights issues.
- Introduce the concept of buyer responsibility, emphasising that human rights issues should not only be the responsibility of the supplier. For example, the supplier code of conduct should avoid language that makes suppliers promise their operations are free of human rights violations. Instead, the company, as the buyer, should commit to a joint approach on human rights due diligence.
What are the main evolutions from the current B Impact Assessment?
In the previous version of the standards, only companies with 1,000+ employees were assessed against their human rights management practices, including a due diligence process to assess actual and potential human rights risks, and addressing related grievances.
For most certified B Corps and aspiring B Corps, human rights will now be a new area to dive into, assess and manage.
Human rights risks: where to start
No matter your company’s size, sector or the B Impact Assessment track you’re on, human rights belong on your radar. Taking meaningful steps now isn’t just about meeting the new B Corp Standards – it’s about building a responsible, resilient business that people trust. A good starting point is to add human rights to your client/project screening process, and consider human rights in procurement decisions, such as evaluating the origins of your products.
For companies with 50 or more employees, or revenues exceeding $10 million, conducting a salient human rights assessment and developing a comprehensive human rights strategy will be essential.
Where next?
If this all sounds a bit overwhelming, we’ve got your back.
At Greenheart, we’re here to help you navigate the changes, run assessments and build effective strategies. Ready to get started?
Request a callback and let’s make your business a force for good.
