B Corp’s New Standards
What You Need to Know About the Risk Tool and the EU’s ECGT Directive
As B Lab continues to roll out the new B Corp Standards, two key developments are reshaping how companies demonstrate credible, transparent, and legally compliant sustainability practices: the introduction of the Risk Tool and alignment with the EU’s Empowering Consumers for the Green Transition (ECGT) Directive. B Lab have recently provided more clarity on these two important areas which we’ll cover in this blog, and our most recent webinar covered these two topics in some more detail, which you can access here .
Introducing the Risk Tool: A New Era of Due Diligence
One of the most significant changes under the new B Lab Standards is the launch of the Risk Tool, introduced through Foundation Requirement FR3.1. This new mechanism ensures that companies actively identify, prevent, and mitigate potential negative impacts-social or environmental-associated with their operations, supply chains, or business relationships.
The Risk Tool includes 14 targeted questions designed to assess “priority risky practices” not covered elsewhere in the standards. Depending on a company’s responses, additional due diligence sub-requirements are automatically added to its assessment. This proportional approach ensures that higher-risk companies face stronger oversight, while smaller or lower-risk organizations are not overburdened. Risks that B Lab will be assessing include companies that derive revenue from selling hazardous chemicals, or harmful substances like alcohol.
Importantly, each company’s risk profile will be publicly displayed on its B Corp profile, embedding transparency into the certification process. This reinforces one of B Lab’s central goals: ensuring that the B Corp movement represents businesses that not only do good but also take meaningful steps to avoid causing harm.
Alignment with the EU’s ECGT Directive
Alongside this shift, B Lab has confirmed that its updated B Corp Certification (Version 2.1) will fully comply with the EU’s ECGT Directive (Directive 825/2024/EU), effective September 2026. The ECGT Directive aims to eliminate greenwashing and empower consumers to make informed, sustainable purchasing decisions.
B Lab’s new model introduces third-party verification, ensuring that B Corp certification remains a legally recognised sustainability label across the EU. Companies marketing or selling products & services to EU consumers are encouraged to self-identify their ECGT impact and recertify on the new standards before September 2026 to ensure compliance and credibility.
What This Means for Business
These updates signal a new chapter for responsible business. The enhanced due diligence of the Risk Tool and the legal alignment with ECGT together strengthen B Corp certification as a gold standard for verified sustainability - one built on transparency, accountability, and measurable action.
how we can help
Our New Standards Accelerator can help businesses navigate this transition efficiently and accurately. In just 12 weeks, we support you to complete a detailed gap analysis, create a tailored action plan, and streamline your recertification journey - all while staying focused on your core business priorities. This ensures you meet the new B Lab Standards confidently, maintain credibility in the EU market, and continue leading in sustainable business practices.
To learn more about how we can help your recertification, contact us at hello@bable.world.