B Corp vs 1% for the Planet: what each one actually commits you to.

B Corp and 1% for the Planet come up in the same conversation constantly. Business owners treat them as alternatives to each other, or assume that joining one is a step toward the other. They're different things. Most owners can't tell them apart, and the confusion is costing them clarity on a real decision.

Here is what each one actually requires, and how to think about which fits your business.

What 1% for the Planet requires

1% for the Planet is a membership program. The core commitment: donate 1% of annual gross revenue to approved environmental nonprofits. Members pay annual membership dues on a sliding scale by revenue (the dues count toward the 1%), direct their giving through a vetted network of environmental partners, and earn the right to use the 1% for the Planet logo in their marketing.

Verification is financial. 1% for the Planet reviews your donation records each year to confirm the 1% commitment is being met. There is no audit of how you treat employees, what your supply chain looks like, or how your business is governed. The pledge is about where your money goes. That's the whole scope of it.

What B Corp requires

B Corp certification is a third-party audit of how your entire business operates. Any certification submitted after 1 January 2026 is assessed against B Lab's new standards: Foundation Requirements plus minimum requirements in each of seven Impact Topics, from Purpose & Stakeholder Governance and Fair Work to Climate Action. The old 80-out-of-200 score on the B Impact Assessment no longer decides certification.

Environmental giving does not carry a business through. A business donating 1% of revenue to conservation causes, but with no written worker policies, no supplier standards, and no governance documentation, would fall short in several Impact Topics, and under the new standards a strong area can no longer offset a weak one.

After you submit, B Lab reviews your supporting documentation. Payroll records. Supplier contracts. Environmental data. Board meeting minutes. This is not self-reported. The audit will tell you what holds up and what doesn't.

B Corp vs 1% for the Planet: the core distinction

One asks what you give. The other asks how you operate.

1% for the Planet is an input commitment. You pledge a portion of revenue. B Corp is an outcomes audit. You prove the systems, policies, and documented practices behind your business across governance, workers, human rights, climate and the environment. You can join 1% for the Planet the week you start a business. Getting B Corp certified requires operational documentation that most early-stage businesses don't have yet, a submission fee, B Lab's verification process, and ongoing audits as further requirements phase in at Year 3 and Year 5.

Which one is right for your business

If your primary goal is directing revenue to environmental causes and signaling that commitment clearly to customers: 1% for the Planet is a straightforward fit. The bar is financial, not operational. The logo is recognized. The process is simple.

If your goal is credible third-party validation of how your whole business operates, including how you treat employees, who you buy from, and how decisions are governed: B Corp is the right standard. It covers more ground. The bar is higher. The certification carries more weight with investors, enterprise buyers, and mission-aligned partners who know the difference.

Some businesses hold both. 1% for the Planet membership can sit inside a B Corp-certified business as part of the environmental giving framework. They are not substitutes. Holding 1% for the Planet membership does not meaningfully accelerate a B Corp application, and B Corp certification does not satisfy the 1% giving commitment.

The honest question skeptics are actually asking

Fair challenge. If you're weighing B Corp and wondering whether the effort is worth it, the starting point is B Lab's free self-assessment on the B Impact platform (the successor to the B Impact Assessment). It shows you where your business stands today against the requirements for a company of your size.

Many small businesses are already doing much of what certification requires. The gap is documentation. The audit will tell you which side of that line you're on. I'll say so directly if you're not ready.

If you want to know where your business actually stands before committing to either standard, a readiness audit is the right first step. Two weeks, flat fee, you keep the report regardless of what you decide next.