B Corp: the future for food business? Interview with James Ghaffari of B Lab UK
In this first interview, in a series of discussions with leaders of the B Corp movement, I met with James Ghaffari of B Lab UK.
I asked James for his views on the suitability of B Corp certification for food and beverage businesses. In the face of the ongoing climate crisis, we also explored the biggest challenges and most exciting developments facing the food industry over the next decade…
You joined B Lab as a Director last summer. What was it that drew you to the B Corp movement?
I come from a background with charities and non-profits, where I was focused on corporate partnerships and building inclusive economies.
The charity model is still very much based on philanthropy. With B Lab, I liked the idea that I could work with an organisation that helped change the central drivers for business.
Business really can be a significant driver for change. For the kinds of organisations that B Lab works with, when the business does well all of its stakeholders do well, not just the shareholders.
I also liked the fact that the B Lab UK team is small but very dynamic and one that is growing.
What makes the B Corp certification process unique?
I would say there are three things that make it unique:
i. B Corp certification offers a comprehensive business analysis.
There are other certification systems that cover specific aspects of business and certainly have an important place in the market. In fact some, such as Fair Trade, integrate into the B Impact Assessment process.
Consumers are becoming much more mature in their understanding of social and environmental impact and are demonstrating that in the choices they make. They want to invest in good companies they know are operating in a wholly sustainable way across all key areas of impact. Businesses can demonstrate this through B Corp certification.
Employees also have increasingly high expectations of their employers. The B Corp certification and reassessment process gives businesses a framework for continuous improvement. By its nature, this requires team investment, meaning employees are much more likely to hold the company to its values.
ii. Being a B Corp is not just about certification but, crucially, is also about making a legal change.
The B Corp certification process requires businesses to commit to considering the impact of their decisions on all stakeholders, not just shareholders. It keeps companies honest through raising capital and ownership.
In line with the vision of its founders, B Corp gives businesses a legal framework and credible set of standards against which to operate and grow, whilst maintaining their original mission and values.
iii. B Corp is a global movement, not just a certification system.
You could look at the B Impact Assessment as a dry audit exercise, but that would be a mistake. It is about global leaders demonstrating that it is possible to operate in a way that puts people and planet at the core of business, not just profit.
There are currently 20 London-based food and beverage businesses listed as certified B Corps and it looks like that number is steadily growing. Do you think food businesses are well-suited to the B Corp certification process?
It might come as a surprise that, of the UK B Corp community, only 25% is currently consumer facing. I guess most food businesses are consumer facing.
B Corp is a unifying framework for all the purpose-driven things businesses might be doing, giving a really interesting way to communicate, through a recognised community. It facilitates a way of communicating in a fun and friendly way. Ella’s Kitchen is a great example of that.
The B Corp assessment process also effectively acts as a free consulting tool, forcing businesses to look at their processes and identify scope for improvements. It is a strong community of business leaders which, in itself, encourages a continual raising of standards.
In your experience, what is the single biggest challenge for food businesses to overcome, when applying for B Corp Certification?
Without wishing to sound too cheesy, for me a challenge often presents an opportunity.
The B Impact Assessment is different for everyone and is intentionally so to encourage the sharing of best practice. To achieve certification, businesses must achieve at least 80 points out of roughly 200, in the B impact assessment. This gives a kitemark for businesses that are working in sustainable ways, to show they are achieving a credible set of standards, whilst allowing room to challenge themselves and strive for ongoing improvements in impact.
We have seen B Corps work together to share knowledge and experience on areas where one is weaker than another and vice versa.
For food businesses I suppose one of the biggest challenges is the supply chain. Your ability to meet high standards might depend on whether you manufacture your own product and, if not, how you are thinking about the ways you purchase from your suppliers. It is an opportunity to build positive impact throughout your supply chain.
It is well documented that food standards in the US differ significantly to those in the UK. Does that give UK based food businesses a head-start in the B Corp certification process?
Given that the B Corp movement is global, there are areas in which UK-based food businesses can get a head start, simply by meeting food standards that are higher in this country.
The assessment process is positively scored and so it asks about what you are doing proactively to manage your impact across all areas. In some cases, it might be that you are doing something good as a result of a legal requirement, but in others it might be that you are going far beyond what is required by law.
One thing the B Corp movement all over the world is committed to is continuous improvement. So whether you certify with 80, 100 or 180 points, we love to see companies working together to find new ways to increase their score, which ultimately makes them better places to work and better companies for the planet.
London is a hotbed for start-up food and beverage businesses, with many having a focus on local sourcing, sustainability and food waste…what would your advice be to founders interested in applying for B Corp certification, who might be put off by the costs of becoming and remaining B Corp certified?
The first thing to say is that all B Corp application fees are based on turnover.
The B Impact Assessment questions are all based on the last 12 months of operational activity, which start-ups will struggle to demonstrate, so for start-ups with less than 12 months of operations there is also a special Pending B Corp status. The fee for Pending B Corp status is set at £250.
I would suggest there is a huge benefit in using the B Impact Assessment questions as a kind of consulting framework. It can encourage start-ups to think about how they structure, start and grow their businesses, as well as giving them an opportunity to think upfront about practical issues like how they will treat their workers and suppliers, how they will manage their water and energy usage etc
As we begin 2020, with an increasing focus on the climate crisis, what do you see as the biggest challenge facing the food industry over the next decade?
We are in the middle of a challenge / opportunity shift. The maturity of consumers is sky-rocketing and consumer demand is changing very quickly in response to the climate crisis.
People are demanding to know how far their food has come, how seasonal it is and how it has been grown.
There is a bit of vacuum at the moment, giving an opportunity for companies to enter the market, who want to educate and communicate with consumers in a really positive way.
What is the most exciting development you’ve come across in food sustainability?
It’s not food related, but I recently met with Finisterre, who are doing really exciting work on packaging. They have worked with a company to develop a totally water soluble, recyclable, biodegradable bag, that breaks down harmlessly into non-toxic biomass.
It was great to see that they are being so open with their developments, sharing knowledge and encouraging other B Corps to test the sustainable packaging.
Are there any particularly innovative UK-based businesses you are aware of, that are tackling the environmental impacts of agriculture and/or food production?
There has been a recent rise in the popularity of subscription food boxes and I think one doing it particularly well is Abel & Cole. They have been recommended by Friends of the Earth for their local and organic approach that reduces plastic, protects soil and supports bees.
I would also like to mention another B Corp because I love companies that take waste products and rethink them as inputs. Toast Ale have taken over 1 million surplus slices of bread and used them to make a delicious beer. They are not only good for the environment but they also give 100% of profits to charity — not bad.
Finally…what’s your favourite restaurant in London and why?
I recently had a great meal at Cub in Hoxton. They offer a vegetarian tasting menu that is based on seasonal ingredients that have been sustainably grown and farmed. They also aim to minimise food waste.
Each course was introduced with a fascinating story about why and how the ingredients in the dish had been selected. They had a great cocktail pairing option too!
