Written by Johanna Mager – Operations Manager House

B Corps and Legal – How legislation points the way to a sustainable future

On October 4, our House Talk focused on B Lab’s vision of our future economy, presented by Tessa van Soest, Executive Director of B Lab Benelux. Central to her story was how companies can positively impact society and the environment by achieving B Corp certification. But where does the link lie between B Corps and legal professionals? How can in-house lawyers contribute to this change?

What is a B Corp and what does it mean for Legal?

Companies that want to obtain B Corp status must meet strict standards in environment, social impact, and transparency. This requires operational changes and a fundamental adjustment in companies’ governance structures. This is where the role of the in-house lawyer comes into the picture.

Stakeholder Governance and the Legal Impact

One of the most important requirements for B Corp certification is embracing stakeholder governance. This means that companies are legally obliged to take into account not only shareholders but also employees, communities and the planet in their decisions. Corporate lawyers play an important role in establishing these governance models, helping companies to adapt their articles of association and implement legal structures that support sustainable entrepreneurship.
During the House Talk, Tessa emphasized that companies that want to become certified need to legally document their mission and governance. This requires a shift from a purely financially driven business model to one that combines profit with positive social and environmental impact. Corporate lawyers can play a role in implementing these new legal frameworks and ensuring that companies adhere to their sustainability goals. In addition to the internal legal changes that B Corps needs to implement, companies are also faced with increasing regulations in the field of sustainability. Think of the European CSRD (Corporate Sustainability Reporting Directive) and the upcoming CSDDD (Corporate Sustainability Due Diligence Directive).

Another inspiring part of Tessa’s presentation was the concept of nature as a stakeholder. More and more companies are recognizing nature as a full stakeholder within their governance structures. Corporate lawyers can support this by, for example, legally establishing the rights of nature, as is already happening in some countries through the ‘Rights of Nature’ movement. This offers legal professionals the opportunity to do groundbreaking work at the intersection of sustainability and law.

 

The House Talk ended with an interactive Q&A, in which Tessa delved deeper into practical tips for companies and lawyers who want to contribute to an inclusive and regenerative economy.