Integrating the EU and Latin America: considerations regarding transparency, impact measurement and new "B Corp" business standards

We begin by talking about corporate sustainability and purpose. Corporate sustainability is not a trend. Corporate sustainability is a strategic and ethical imperative for companies that aspire to have a purpose in the market and in society, to actively contribute to social and environmental well-being.

Andrew Kassoy, co-founder of B Lab, sums it up with a provocative vision: "We cannot imagine how extraordinary capitalism can be when it is properly designed and structured." From the private sector, companies, as one of the main drivers of the economy, play a key role in this transformation. When we talk about this new business model, we are referring to "purpose-driven companies", also known as "triple impact companies", "B companies" or "BICs", among other names, which seek to be part of the solutions to the global problems and challenges that affect us all as inhabitants of this "shared home".

In a strictly technical sense, "B Corporations" are triple impact companies that, using the B Impact Assessment (BIA) tool, have obtained the necessary score to access the certification granted by the BLab organisation, the "B" certification.

This impact measurement tool, which is online, confidential and free, allows companies to analyse their performance in broad areas: Customers, Governance, Workers, Community and Environment.

Regardless of whether they obtain the minimum score required for certification, the mere fact of using it to measure impact generates a diagnosis of the company's performance in each of the areas evaluated, allowing them to assess their performance and set improvement targets.

According to BLab's "B Corp Month" report, as of March 2025, there were 9,576 B-certified companies in 160 sectors in 102 countries, employing an estimated one million people.

This statement invites us to rethink the economic system from its foundations, promoting models that integrate purpose, transparency and responsibility. Sustainability, in this sense, is not a regulatory burden, but an opportunity to transform the market into a collective and positive force at the service of the common good.

Alignment for a sustainable and integrated economy: European Union. The path towards a sustainable economy continues, even though we find various positions and policies in the global context that disregard ESG criteria (Environmental, Social and Governance). However, there are many countries that, despite the current context, are adopting sustainability criteria as high-level public policy, and many others where the economy itself, businesses and consumers are demanding urgent transformation that will allow us to continue inhabiting our planet, our "common home".

ESG factors comprise a set of positive impact patterns of solutions, the purpose of which is to assess how a company assumes its risk and manages its sustainability, as well as how civil society and public policy impact people, communities and the environment.

In the environment (E), among other impact guidelines, consideration is given to the management of natural resources in general, both renewable and non-renewable, greenhouse gas emissions, use of water resources, impacts on biodiversity, circular economy and waste management, among others.

In the social sphere (S), the relationship and impact on people inside and outside the company, safety, diversity, human rights, the relationship with the company's chain of activity, and the quality of the link with the community are considered.

In governance (G), the focus is on a range of issues including transparency and ethics, the composition of boards of directors, sustainability committees that include stakeholders outside the company's ownership, policies that address inclusion and diversity, and the relationship with the chain of activity and all stakeholders.

Directive 2022/2464, CSRD (Corporate Sustainability Reporting Directive), requires the most strategic and important companies within the European Union to report in a standardised and verifiable manner with comparable and reliable data. The CSRD constitutes a genuine legal framework that requires compliance with sustainability reporting, and the ESRS (European Sustainability Reporting Standards) constitute the technical standard that defines what information must be gathered to comply with the former.

Working with ESG reports under Directive (EU) 2022/2464 (or CSRD) provides a traceable structure for the company's performance on social, environmental and governance issues and clarifies the path for investors and customers. The CSRD (1 and 2) encompasses double materiality—financial and business impact—and in this regard, support within the GRI framework—impact materiality—among others, such as the ISSB—financial materiality—is useful as global information and communication covering ESG criteria.

Thousands of EU companies are beginning to report on environmental and social aspects, transparency in corporate governance and rigorous accountability, which has an intra-zone impact and at the same time extends beyond the European legal community due to the principle of extraterritoriality, with those companies that are part of the chain of activity due to their links being included in the obligation to prevent and mitigate negative impacts, i.e., it applies outside the territory, reaching companies that are outside the jurisdiction of the EU. This legal framework is defined by Directive (EU) 2024/1760 (or CS3D).

Indeed, the CS3D Directive aims to ensure that large companies operating in the internal market contribute to sustainable development and the transition to sustainable economies and societies by identifying and, where necessary, the prioritisation, prevention and mitigation, elimination, minimisation and remediation of potential or actual adverse impacts on human rights and the environment related to the companies' own activities, those of their subsidiaries and those of their business partners in the companies' chain of activities.

The due diligence process set out in this Directive should cover the six steps defined by the OECD's Guidelines for Responsible Business Conduct: (i) integrating due diligence into policies and management systems; (ii) identifying and assessing adverse impacts on human rights and the environment; (iii) preventing, ceasing or minimising actual and potential adverse impacts on human rights and the environment; (iv) monitoring and evaluating the effectiveness of measures; (v) communicating; (vi) providing remedy.

In short, the European Union Guidelines, within the global framework of ESG criteria, comprise various standards for different areas of the economy, focusing on climate transition, protection of natural resources, biodiversity, the circular economy, GHG emissions, human rights, health, corporate governance, transparency and business ethics, and the prevention and mitigation of adverse effects on the company itself, its supply chain and stakeholders. As such, ESG criteria have become established in terms of regulation to assess and enforce corporate sustainability in the EU, but are also gaining ground globally.

The importance of global initiatives, the need for transparency and the new B Corp standards. On 3, 4 and 5 September this year, in the run-up to COP30, the Global +B Amazônia 2025 Meeting took place in the Brazilian city of Belém, Pará, in the key territory of the Amazon, with the participation of more than 750 people from 20 countries and 80 leaders from the global community of B Corporations, leaders and agents of change.

The meeting highlighted the idea of care as a transformative force, promoting decisions centred on people and the common good, and reaffirmed that solutions to social and environmental challenges already exist and are born from ancestral knowledge, the force of nature and collective action towards a just transition. Under the slogan "The Root of the Future," a manifesto was drafted with the aim of promoting a new coherent, humane, and regenerative economy, with a focus on redefining business success. In practical terms, it was formally announced that, starting in 2026, the certifier B Lab will implement a profound transformation in its assessment tool: the BIA, a new measurement in its fullest sense, thus raising standards based on seven basic and unavoidable axes that will require reporting, namely: i) governance and purpose; ii) climate action; iii) human rights; iv) fair labour; v) environmental stewardship and circularity; justice, equity, diversity and inclusion (JEDI); vi) governance; and vii) collective action (including fiscal transparency).

This update represents a paradigm shift in certification criteria, moving away from the traditional cumulative scoring system—based on achieving 80 points distributed across five performance areas—to adopt a more rigorous model aligned with current challenges. This approach seeks to raise the bar for corporate commitment, consolidating the BIA as a guide for systemic transformation. This evolution in B Corp standards is directly in line with global initiatives such as the United Nations Global Compact, the world's largest corporate sustainability initiative. With more than 20,000 member companies in 78 countries, the United Nations Global Compact promotes the Ten Principles on human rights, labour, the environment and anti-corruption, and with the growing demand for transparency and reportability in business management.

The incorporation of positive impact as part of business strategy not only responds to an ethical demand, but also to a competitive logic that connects European regulatory frameworks with the challenges and opportunities in Latin America. This alignment in the value chain is key for companies to comply with international standards, strengthen their resilience and build trust in global markets, consolidating an ecosystem where sustainability and profitability are integrated as inseparable pillars.

In summary, we can conclude that the triple impact ecosystem marks a clear path and highlights the need to adjust business standards globally. The B seal is expanding internationally, strengthening credibility, public transparency and prestige as a sign of competitive differentiation and market positioning.

Ultimately, the convergence between the new B Corp standards, the principles of the Global Compact and European regulations shows that sustainability is not an option, but a strategic requirement for companies seeking to remain relevant in an interconnected global context.

Companies can align themselves with sustainability, the common good and the natural environment in which they operate, the fight against climate change and the global goal of net zero by 2050, taking into account the roadmap and progress made to achieve these goals, as well as the complexity and evolving nature of the various circumstances involved. To this end, they have tools and instruments that they can or must apply, depending on their different jurisdictions.