What: Nespresso being certified as B Corp in spite of a poor track record generated questions about the B Corp certification.

Why it is important: The label is tempting and attractive for companies willing to lure in younger customers, which is why larger corporations are increasingly applying. This might be a concern for the certification process, which is seen by some as running the risk to lose its soul.

For Nespresso, being certified as a B Corp company was a milestone and the company heavily advertised this achievement. However, this unleashed a backlash from 30 certified B Corp companies which pointed out the history of child labor and factory workers abuses that plagued the company.

They also called for stronger standards, as B Corp otherwise runs the risk of undermining its label. This is not the first time that such a request is done, as the label certification requests grew +44% between 2019 and 2021 and some B Corp certified companies already behaved badly.

The badge of morality that B Corp has become attracts the attention of larger companies which are increasingly applying, but this poses risks for the soul of the label. Analysts are questioning whether some companies might be too large to be properly assessed according to the methodology applied by B Corp while the founders of the certification remind that the goal is not to build an empire of B Corp, but to provide a tool to change the planet, which should include the larger companies to be truly impactful.

The backlash against B Lab