The sustainability landscape is shifting fast, and staying ahead can feel like a never-ending challenge.
Earlier this month, B Lab released updated B Corp standards designed to make sustainability reporting smoother and more aligned with global frameworks like ISSB and CSRD. While the new standards will raise the bar for B Corp certification, the intention is also for the process to become more streamlined and less daunting, aligning with other widely adopted standards and frameworks.
The sustainability regulation and reporting landscape continues to evolve rapidly, buffeted by political and economic headwinds. In the EU, the Omnibus proposal in February ignited debates around revisions to CSRD, while in the UK, we wait patiently for the UK Government to announce the UK’s Sustainability Reporting Standards (SRS), which we expect to be closely aligned to the International Sustainability Standards Board’s (ISSB) IFRS S1 and S2 standards.
For businesses committed to commercial growth and positive impact, navigating these evolving requirements and trade-offs between competing frameworks can be complex. At Seismic, we understand the intricacies of sustainability strategy and reporting and how it intersects with your business success. We’re here to guide you through the process, demonstrating how the B Impact Assessment can serve as a powerful complementary tool for aligning with ISSB standards.
Bridging the gap: B Impact Assessment and ISSB alignment
Many organisations are seeking practical ways to integrate the B Corp and ISSB frameworks into their business strategy and manage the associated reporting and data requirements in an efficient manner. While there are many similarities between the two, it’s important to note that the ISSB standards focus on financial materiality, i.e. the effect of sustainability themes on a companies’ financial value. Alternatively, the B Impact Assessment focuses on impact materiality, focusing on a comprehensive evaluation of a company’s social and environmental performance.
Here’s an overview of how they complement each other:
- Operational Data for Materiality Assessments: The B Impact Assessment provides a wealth of operational data across governance, workers, community, and the environment. This data can inform and strengthen your ISSB disclosures, ensuring you capture financially relevant sustainability risks and opportunities.
- Strengthening ESG Disclosures: The detailed metrics within the B Impact Assessment can provide robust evidence for your ISSB disclosures, demonstrating your commitment to sustainable practices and responsible business conduct.
- Risk Management and Opportunity Identification: By identifying areas for improvement within the B Impact Assessment, you can proactively address sustainability risks that may have financial implications and identify opportunities for innovation and growth.
- Holistic View of Value Creation: While ISSB focuses on financial materiality, the B Impact Assessment provides a holistic view of how your business creates value for all stakeholders. Combining the two gives a broader perspective that will enhance your understanding of long-term value creation and resilience.
From compliance to competitive advantage
Let’s be clear: sustainability reporting isn’t just about box ticking. When done right, it drives commercial advantage. By aligning with ISSB standards and leveraging the B Impact Assessment, you can enhance investor confidence with transparent and robust sustainability disclosures that build trust with investors, reducing your cost of capital and attracting responsible investment.
Wise investments in sustainability also contribute to increasing revenue and a stronger brand reputation that will resonate with important stakeholders, including attracting sustainability conscious consumers to purchase your products and services, and attracting top talent to work for you.
Crucially, a focus on sustainability can significantly improve your bottom line. A major focus for many organisations is using a sustainability lens to drive operational efficiency. The B Impact Assessment in particular encourages continuous improvement, helping certified organisations to continue to push for greater efficiency within their operations, while proactively addressing risks that could become costly down the line. Strengthening resilience through risk mitigation not only lowers potential liabilities but also positions your business for long-term success.
Overcoming the challenges
Navigating these frameworks – and the many others required of sustainability professionals – can be challenging. Common obstacles include implementing data collection processes, stakeholder engagement, and ensuring consistency across reporting.
At Seismic, we offer tailored solutions to help you overcome these challenges.
Whether you’re aiming for B Corp certification, enhancing your ESG disclosures, or simply looking to create a more sustainable business, we’re here to guide you. We bring deep expertise, pragmatic solutions, and the mission to drive transformational change.
