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ESG Trivia - Global Perspective on B Corp: How Can Hong Kong SMEs Go Further?
Date of issue: 2025-03-20
In recent years, companies have been showcasing their ESG achievements, yet controversies over “greenwashing” have frequently emerged. A 2023 investigation by the European Securities and Markets Authority found that over half of “sustainable development funds” had discrepancies between their disclosures and actual investments; while Japan’s Financial Services Agency issued corrective orders to multiple companies regarding overstated carbon reduction results. As “sustainable development” risks becoming mere marketing rhetoric, third-party certification has become an increasingly important benchmark of corporate authenticity.
Among the myriad of international certifications, B Corp certification is renowned for its rigour and comprehensiveness. It conducts quantitative assessments across five dimensions — environment, employees, community (including suppliers), customers, and corporate governance. Companies are required not only to implement sound governance in day-to-day operations and effectively manage their impact on stakeholders and the environment, but also to create measurable social value through core business activities. Often hailed as the benchmark for sustainable enterprises, companies must score above 80 points in a 200-point assessment to become certified, and undergo re-verification every three years to ensure continuous improvement.
However, B Corp is more than just another certification; it represents a global movement for corporate transformation. When sustainable development practices seamlessly integrate with core business, a purpose-driven mission can become the engine driving innovation. Currently, over 9,500 certified businesses worldwide (as of February 2025) jointly practise “Business for Good”, proving that profitability and social purpose can complement each other, in an effort to motivate more companies to operate responsibly.
Hong Kong currently has over thirty B Corps, mostly startups and SMEs. These include Hyginova, which develops non-toxic cleaning products; TREE, which prioritises using wood from sustainable sources to make furniture and extends product lifespan through repair services; Work For Impact, which builds a mission-driven talent matching platform; and Knowmium, a training firm focus on cultivating socially conscious talent.
At PIE Strategy, as one of Hong Kong's pioneering B Corps, we have consistently challenged ourselves to meet and exceed certification standards since our founding in 2017. Through the local B Corp community, we connect with like-minded businesses in various sectors, fostering a collaborative ecosystem and witnessing the community’s collective growth. B Corp certification also complements the Caring Company Scheme – while the former focuses on implementing systematic practices aligned with international standards, the latter cultivates deep local community relationships. The two schemes work in harmony to promote business for good.
The B Corp certification process functions like a comprehensive corporate health check, propelling businesses from mere compliance to value creation. For startups and SMEs navigating volatile economic landscapes, a third-party verification enhances credibility and attracts values-aligned stakeholders. As global attention to sustainability intensifies, systematically assessing social and environmental impacts and embedding sustainability into a company’s DNA not only boosts competitiveness but also unlocks new opportunities. By adopting this approach, companies are better positioned to meet the evolving expectations of consumers, investors, and partners who increasingly prioritise sustainable and responsible practices.Natalie Chan
Co-founder, PIE Strategy
The above ESG Trivia is provided by PIE Strategy, the Knowledge & Strategy Partner of the Caring Company Scheme