Finance

B Corp Faces Greenwashing Allegations as Dr Bronner’s and Others Exit

Global sustainability certification scheme B Corp is facing growing scrutiny as long-time member Dr Bronner’s, a U.S. natural soap maker, announced its withdrawal over concerns about the program’s credibility and standards. After a decade of participation, the California-based company...

The High Street Journal

published: Jun 30, 2025

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Global certification scheme B Corp is facing growing scrutiny as long-time member Dr Bronner’s, a U.S. natural soap maker, announced its withdrawal over concerns about the program’s credibility and standards.

After a decade of participation, the California-based company with over 300 employees said it could no longer align with what it called B Corp’s “ ,” citing the organization’s readiness to certify large multinationals despite their controversial environmental and labour records.

“Remaining certified now contradicts our mission,” the firm said in a statement, singling out its opposition to Nespresso’s inclusion in 2022. Owned by Nestlé, Nespresso had faced allegations of in its Guatemalan supply chain. Although the company claimed zero tolerance and promised swift action, Dr Bronner’s saw the certification as a sign that B Corp was enabling “greenwashing and purpose-washing.”

B Corp, short for “beneficial corporation,” launched in 2006 and now boasts over 9,600 certified across 102 countries. Certification is meant to reflect high standards of social and environmental performance and attract ethical consumers. While B Lab, the nonprofit behind B Corp, says most members are small or medium-sized businesses, it has defended the inclusion of larger firms like Nespresso, stating the certification followed rigorous review.

In response to growing concerns, B Lab says it will overhaul its standards by 2026. The new framework will replace the current 200-point scoring system with mandatory benchmarks across seven core areas, including human rights, climate action, and . Companies will also undergo third-party verification and be required to show continuous improvement.

Chris Turner, CEO of B Lab UK, says the new rules aim to raise the bar for all companies, not just large ones. “We have increased expectations of what being a force for good looks like,” he noted, while acknowledging that bigger companies carry a greater potential impact and therefore require stricter scrutiny.

Despite these changes, others have followed Dr Bronner’s lead. UK pet brand Scrumbles also exited B Corp, citing a shift in focus from sustainability to membership growth. Co-founder Aneisha Soobroyen said the company opted to donate its £8,500 recertification fee to Save the Children instead.

Some experts agree the certification needs to further. “B Corp is a good starting point,” said Nancy Landrum, a professor of sustainable Munich Business School. “But the most commonly used schemes still fall short of what’s truly needed.”

Dr Bronner’s, meanwhile, has launched an alternative model called the Purpose Pledge, which emphasizes living wages, ethical supply chains, and accountability. “It gets to the heart of what we think a mission-driven company should be,” said CEO David Bronner, adding that 14 companies have already joined the initiative.

While B Corp remains one of the most recognized sustainability accreditations globally, its future credibility may hinge on whether its upcoming reforms satisfy smaller, values-driven companies like Dr Bronner’s , or push more of them to walk away.

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