North Star Carbon Management Achieves B Corp Certification

North Star Carbon Management (NSCM) is proud to announce its B Corp certification. We are a Software as a Service (SaaS) company primarily focused on carbon accounting and management. Our B Corp certification solidifies our position as leaders in sustainable business practices. We are delighted to be a part of the B Corp movement, committing to its values of transforming the economy to benefit all people, communities, and the planet, alongside other certified B Corporations.

As a newly certified B Corp and a registered Benefit Corporation, we are redefining success in business. We are leading the way in sustainable practices within the technology sector. This milestone comes after a successful public launch in October 2023.

Since then, the company has established itself as an industry leader by partnering with several renowned for-profit companies in the food and beverage, audit, tax planning, and financial services sector- such as Sensiba and Opus One Winery, to name a few. In an emerging economy, focusing on sustainability helps us stand out and supports our continuous advancement.

“It is essential for carbon management platforms like ours to lead by example, demonstrating that financial success can go hand-in-hand with environmental stewardship and social responsibility,” said Josh Prigge, CEO and cofounder of North Star Carbon Management.

“As a bootstrapped company with no plans to seek funding from outside investors, we are fortunate to maintain full control over our strategic direction and operational decisions, ensuring that we stay true to our purpose-driven mission without external pressures.”

The NSCM platform has garnered recognition for its user-friendliness, auditability, and effectiveness, enabling businesses of all sizes to quantify, track, manage, and report their carbon emissions effortlessly. As climate regulations tighten and transparency requirements increase, our innovative solutions help companies meet and exceed these standards.

Our tools provide insights into value chain GHG emissions and offer AI-enabled planning for decarbonization. Our business practices ensure that companies’ practices align with the highest environmental standards.

“We launched North Star with the vision of simplifying the complex world of carbon accounting and making it accessible for every company, thereby accelerating the global transition to a low-carbon economy,” added Prigge. “My co-founders and I all have significant experience leading companies towards B Corp certification, so working towards certification was naturally a priority for our company.”

With its B Corp certification, North Star Carbon Management joins an elite group of companies committed to rigorous social and environmental performance standards. This certification is a badge of honor and a core aspect of the company’s identity as a purpose-driven, certified B Corporation.

What is B Corp Certification?

B Corp Certification is a globally respected benchmark for businesses that maintain high levels of social and environmental responsibility, accountability, and openness. The non-profit B Lab Global oversees the certification process, evaluates and oversees the verification process, and supports companies in maintaining their B Corp status through re-certification.

What is the B Corp Certification Process?

Achieving B Corp Certification involves a rigorous and comprehensive evaluation called the B Impact Assessment. This assessment meticulously measures a company’s impact across five key areas:

1. Governance: Assesses a company’s mission, ethics, accountability, and transparency.
2. Workers: Evaluates employee benefits, compensation, training, and work environment.
3. Community: Looks at the company’s engagement with and impact on its community, including diversity, equity, and inclusion practices.
4. Environment: Examines a company’s environmental management practices, including energy usage, waste management, water use, and greenhouse gas emissions.
5. Customers: Considers the value a company delivers to its customers, focusing on the impact of its products and services.

To be certified as a B Corp, a business must score 80 or more on the 200-point B Impact Assessment. This process also includes legal updates to align the company’s commitment to enhanced purpose, accountability, and transparency with its legal structure, ensuring adherence to ethical business practices.

Benefit corporations, distinct from B corporations, have a legal structure that incorporates stakeholder governance and mandates accountability and transparency requirements. Over 6,000 companies are B Corp certified, covering over 80 countries and exceeding 150 industries.

Why Social and Environmental Performance Matters

1. Mission-Driven Business: B Corps are part of a global movement that recognizes business as a force for good. NSCM aligns itself with this mission-driven ethos by achieving certification. This commitment advances our practices and contributes to shaping a global economy that benefits all, aspiring not to harm while benefiting all stakeholders, including people, the planet, and future generations.
2. Consumer Trust: Consumers increasingly seek companies prioritizing sustainability and social responsibility, understanding their role in ensuring the well-being of others and future generations through responsible business practices.
3. Attracting Talent: B Corps attract employees who want to work for organizations that make a positive impact. It’s a powerful recruitment and retention tool.

Collaboration and Advocacy: Being part of the B Corp movement allows companies to collaborate with like-minded peers and advocate for systemic change, emphasizing the rigorous certification process and the commitment to redefining success in business for a more inclusive and sustainable economy.

Strategic Advantages of B Corp Certification

Being B Corp Certified is more than a badge of honor. It is a testament to a company’s unwavering commitment to sustainability and social responsibility. This certification unlocks a host of strategic advantages, setting companies apart from their competitors.

B Corp Certification rigorously evaluates a company’s social and environmental impact through a comprehensive verification process. This ensures that certified businesses maintain high standards of accountability and transparency, which is particularly crucial for firms dealing with environmental impact assessments.

Belonging to the B Corp community is more than just a reputation boost. It’s a global connection, positioning a company among a global network of like-minded businesses. 

Recertifying or Renewing B Corp Certification

Recertifying or renewing B Corp Certification ensures that a company will continue to meet the highest standards of social and environmental performance. Maintaining this certification shows a company’s ongoing commitment to sustainability and ethical business practices.

Ensuring Supply Chain Accountability

Recertification requires companies to re-evaluate and document their supply chain practices. This process is particularly important in the carbon accounting industry, where precise data on supply chain emissions is mandatory. By regularly updating supporting documentation to maintain certification, a company builds trust with clients and stakeholders.

Impact and Benefits of B Corp Certification

Data from B Lab indicates that companies that regularly recertify experience increased customer loyalty and investor confidence. For example, companies may see an average increase of 15% in client retention, showcasing the long-term benefits of maintaining high ethical standards.

According to a study by Cone Communications, 91% of global consumers expect companies to operate responsibly to address social and environmental issues, and 84% seek out responsible products whenever possible. A study by Nielsen found that 66% of consumers are willing to pay more for sustainable brands. Some examples include:

Patagonia: Patagonia has been B Corp certified since 2011 and regularly recertifies. The company’s commitment to sustainability and ethical business practices has resulted in a loyal customer base. Patagonia’s consistent recertification helps it meet these expectations, contributing to its strong customer loyalty and brand reputation.

Ben & Jerry’s: As a certified B Corporation, Ben & Jerry’s integrates social and environmental missions into its business model. The company has reported that its B Corp status has strengthened relationships with both customers and investors.

Danone North America: Danone North America became the largest Certified B Corporation in 2018. The company has experienced significant benefits from its B Corp status, including enhanced investor confidence.

A Harvard Business Review report indicates that companies with robust sustainability practices exhibit superior operational performance and increased profitability. Such companies also have a better return on assets, indicating that regular recertification as a B Corp could contribute to long-term financial performance.

Investors’ Perspective

Investors are increasingly focusing on Environmental, Social, and Governance (ESG) criteria. A report by McKinsey & Company states that strong ESG propositions correlate with higher equity returns, notably through better corporate governance and risk management. Companies that regularly recertify as B Corps signal to investors their dedication to these principles, thereby boosting investor confidence.

B Corp Certification is voluntary, and not all companies are required to be certified. It’s a choice for businesses committed to purpose-driven impact and transparency. At North Star Carbon Management, this was an easy choice to make and one we plan to continue, with annual recertification.