When it comes to business, the traditional line of thinking is ‘you can either make money or do good‘ but not both. How many times have we heard the argument that a company can’t change a business practice because costs would rise? The fashion industry has traditionally been wrought with clear ethical and environmental issues within its supply chain. However, in 2022, more companies within the fashion industry are chasing the B Corp designation, a signal to the world that they are both pursuing a profit while also pursuing social and environmental change.
What is the B Corp Certification?
B Corp Certification is a designation that a business is meeting high standards of verified performance, accountability, and transparency on factors from employee benefits and charitable giving to supply chain practices and input materials.
bcorporation.net
This definition is given by B Lab, the nonprofit behind the B Corp movement. Its framework for certificaton takes a holistic view of a business and is not fixated on a single facet of environmental, social, and corporate governance. After initial certification, a company must continue to meet these requirements on an ongoing basis and, overall, continue to demonstrate a commitment to a positive impact. The certification process is lengthy and, only one third of companies successfully obtain this designation. To achieve this designation, a company must:
- meet baseline requirements set by B Lab, including scoring an 80 or above on their B Impact Assessment;
- meet a commitment to be accountable to all stakeholders (not just shareholders, an important differentiation);
- and demonstrate transparency by publicly reporting their performance and evaluating it against B Lab’s standards.
So why is this important?
Since 2020, sustainability and overall corporate impact have been of growing interest to consumers. However, sustainability frameworks leave a lot to be desired. Companies love to fluff up reports with lofty goals for being climate-neutral and feel-good statements about their supply chain, but many of these reports don’t have a solid framework to back these claims up against.
The B Corp Certification is a solid framework where company goals and reports can be measured. In addition, the certification requires companies to change their legal organization documents to specify their legal commitment to stakeholders, not just shareholders.
As noted above, this distinction is important. A shareholder is someone who owns a part of the company. Traditionally, companies valued making money for the shareholders above all. A stakeholder is someone who is affected in any way by the company, including employees or any member within a community where a business operates.
What are some notable B Corp Certified companies?
Some notable B Corp Certified companies include Patagonia, Allbirds, and Toms. At the end of 2021, Chloe became the first luxury fashion house to achieve the coveted B-Corp status.
Why Chloé’s Certification is Noteworthy for the future of Luxury Fashion
Chloé’s foray into sustainability didn’t begin when it obtained its certification in 2021. Chloé CEO Riccardo Bellini aims to shift the house toward a more “purpose-driven” business model.
We’re moving from a phase of collections to a phase of connections. Doing collections is not enough anymore. How you connect with your audience, how you nurture that connection, how you grow that connection is a continuous process of exploration today. What a brand stands for, its beliefs and values, will become as relevant as products and aesthetics.
Riccardo Bellini, CEO Chloé
In 2019, the house partnered with UNICEF, Girls Forward to design products that give back to the organization.
At the end of 2020, Chloé brought on Gabriella Hearst as its new creative director. Hearst had a proven track record of sustainable initiatives, including using recycled materials in her own fashion line and developing a carbon-neutral fashion show. This experience aligned well Bellini’s vision of a “purpose-driven” company. Hearst brought her ideas to Chloé’s design team, introducing materials that require less water for production.
At the end of 2021, Chloé collaborated with Sheltersuit for the Fall-Winter 2021 collection. This social justice organization aims to provide direct protection against cold and rain for homeless people through multifunctional clothing. These garments are assembled using entirely upcycled materials in the Netherlands by refugees and formerly homeless people.
Going forward, Chloé pledges to create an Impact Fund, titled 1% FOR THE GIRLS, dedicated to initiatives supporting gender equality.
This is not idealism. The very concept of purpose-driven is combining profitable growth with a positive contribution to the planet, society and community. Our motto is beautiful, profitable and meaningful.
Riccardo Bellini, CEO Chloé
Bellini’s vision for Chloé is important for the luxury fashion industry. As a leader within the space, the house has now paved a path for other luxury companies to follow. As consumers continue to prioritize sustainability, this certification differentiates the brand from its competitors and shows an ongoing commitment to these goals. The industry has a long way to go, but the first luxury brand to obtain this B Corp status begs the question: who’s next?
