New data: Impact-aware companies outperforming other businesses

New data suggests British companies recognised for reaching high standards of social and environmental performance, transparency and accountability (so-called B Corps) are outperforming their competitors.

In 2023-2024, small and medium-sized UK B Corps reported a 23.2% increase in turnover, versus the national average of 16.8%.

The research was carried out by B Lab UK, the British arm of the B Corp Community, a non-profit global movement of businesses looking to demonstrate their commitment to social responsibility and sustainability. Companies that meet community standards are awarded a B Corps certification.

B Corps in the UK also saw a 9.6% rise in employee headcount during 2023-2024, whereas on average staffing numbers dropped by 0.5 %.

The data suggests that purpose-driven businesses are successfully competing and growing in the UK, despite a challenging business environment.

Profit and purpose can go hand in hand

“A new generation of UK businesses are proving purpose and profit can go hand in hand,” says Chris Turner, executive director of B Lab UK. “This is the kind of leadership that will thrive in the 21st century.”

There are over 9,400 B Corps in 105 countries and covering 160 industries. The UK has become the largest B Corp hub on the planet. Some 2400 businesses with the certification are based there, according to B Lab UK. Its data suggests a 40% increase in the number of British B Corps since the previous period measured (2022-3).

Compared to other businesses, the new data also suggests UK-based B Corps are also 25% more likely to pay all employees a family living wage, 104% more likely to only use renewable energy within their operations and 114% more likely to have representatives from the community on their board of directors