Empowering Success: The Case for Implementing Employee Ownership

In the world of B Corp, there are significant points to be scored from adopting some kind of employee ownership scheme in your business model.

But it’s not just about point scoring. As well as boosting your score on your B Impact Assessment (BIA), the benefits of giving employees ownership in the company, drives enhanced productivity, greater commitment, more resilience, and better talent recruitment and retention.

So what’s it all about? This article takes a look at the what, why and how of worker ownership models.

What are employee share ownership plans (ESOPs) and how do they factor into B Corps?

Employee share ownership plans (or ESOPs) are a legal agreement that allow employees to receive and earn ownership in the business that they work for. They are a clearly defined pathway for employees to become shareholders and to benefit from the success of the company that they contribute to.

“There’s no better way to tune people in to creating value than to make them shareholders… I do know it gave our people more understanding and a sense of responsibility for what was going on in the company… in my view it’s a win-win.” David Thodey – Chair of the Board, Xero

Different types of ESOPs exist and are best suited for different businesses, so it’s important to understand which option is best for you. 

If you hang out in B Corp world, you probably know that companies score more points for having some kind of employee share ownership plan (ESOP).

And if your company meets the criteria for the Worker Owned Impact Business Model, it’ll bag you up to 30 points in the B Impact Assessment, which is a big bite of the 80 points required to get B Corp certified. 

As well, research shows that companies with significant employee ownership grow faster than their conventionally-owned counterparts. 

Still though, if you’re a business owner who has done the hard yards to build your company up from nothing, it can seem like a big ask to then just hand over ownership of that company to employees. 

Even when you see the research, which shows that companies with significant employee ownership tend to get boosted productivity, enhanced loyalty, and ultimately greater long-term success. 

Still, for a conventional company, the idea of shifting to an employee ownership model can seem confusing and complicated. So why would you? There are a few reasons:

THE PROS OF ESOPS

Employee ownership is about granting employees a financial stake or ownership interest in a company. This can take various forms, including share options, profit sharing, or direct share ownership. The goal is to align the interests of employees with those of the organisation, creating a sense of shared purpose and mutual benefits. Benefits of adopting it include:

  • Enhanced Employee Engagement and Commitment

Implementing employee ownership can significantly enhance employee engagement and commitment. When employees become partial owners of the company, they have a personal stake in its success. This sense of ownership can drive employees to go the extra mile, leading to increased productivity and dedication to their work. Furthermore, as owners, employees are more likely to take a long-term perspective and actively contribute to the organisation’s growth and profitability.

  • Retention and Recruitment of Top Talent

Employee ownership programs can serve as a powerful tool for attracting and retaining top talent. In a competitive job market, prospective employees are increasingly seeking organisations that offer opportunities for growth, financial incentives, and a sense of purpose. Employee ownership provides all these elements. It signals to potential candidates that the company values its employees and rewards their contributions. Additionally, existing employees are more likely to stay with an organisation that offers them a chance to share in its success.

  • Improved Productivity and Innovation

Ownership fosters a culture of accountability, empowerment, and innovation. When employees have a say in decision-making and are directly affected by the outcomes, they are more motivated to perform at their best. Employee owners often take on an entrepreneurial mindset, proactively identifying opportunities for improvement, and suggesting innovative solutions. As a result, organisations that embrace employee ownership often experience a surge in productivity and a competitive edge in their respective industries.

  • Long-Term Sustainability and Stability

Implementing employee ownership can contribute to the long-term sustainability and stability of a business. As owners, employees are more likely to take a vested interest in the company’s success, leading to increased loyalty and lower turnover rates. This continuity translates into cost savings associated with recruitment, onboarding, and training. Moreover, employee-owned companies tend to have more robust financial performance, as employees are personally invested in the business’s success.

  • Healthy Corporate Culture and Trust

Employee ownership can foster a positive organisational culture and build trust among employees. Employee owned companies typically pay more, are less likely to lay people off in a downturn, and they build community wealth. When individuals feel valued, respected, and trusted, they are more likely to collaborate, share knowledge, and work towards common goals. Transparency in sharing financial information and involving employees in decision-making processes creates a culture of open communication and inclusivity. This culture of trust nurtures a supportive environment where employees feel motivated to contribute their best efforts.

By aligning the interests of employees with those of the company, organisations can foster a culture of ownership, collaboration, and shared success. As businesses navigate the evolving landscape, employee ownership serves as a powerful tool to unlock the full potential of their workforce and secure a prosperous future.

TYPES OF EMPLOYEE OWNERSHIP

There are three main types of employee ownership structures that companies can adopt. Here are some common types:

  1. Share Options: Share options are agreements that give employees the right to purchase company shares at a predetermined price (the exercise price) within a specified period. They often have a vesting period, and employees can exercise the options to acquire shares once they become vested. This allows employees to share in the company’s value appreciation.
  2. Phantom Shares: Phantom shares is a form of equity-based compensation where employees are granted hypothetical or notional units that mirror the value of the company’s stock. Employees receive cash payments equivalent to the increase in the stock’s value over a certain period, without actually owning the shares. This is similar to a formalised profit-sharing agreement
  3. Loan to purchase plans: this is a structure that allows employees to acquire shares in the business they work. The company will usually issue a zero or low-interest loan to the employee to pay for the shares upfront. Over time, based on a variety of ways such as dividend distributions, cash contributions and salary sacrifice the loan to the company is paid down and the employee owns the shares outright.

Each type has its own specific characteristics and benefits, and companies can choose a structure that aligns with their goals and the needs of their employees. It’s important to consult with legal and financial professionals to understand the specific details and implications of each type of employee ownership.

HOW TO SWITCH TO EMPLOYEE OWNERSHIP

It’s a lot easier than most people think.

To begin, the initial step is to determine the most suitable employee share scheme for your business. We strongly advise consulting with your professional advisors, such as lawyers or accountants, as a first step. This ensures that you select the optimal scheme to achieve your desired outcomes and are well-informed about the various tax implications involved. It’s important to get this right, and experts such as Orchestra have resources to guide your decision.

Orchestra is one of Australasia’s leading employee ownership softwares, providing a two-sided portal which enables companies to streamline the management process of the ESOP and even more importantly provides an online portal for ESOP participants to login to interact and engage with their ESOP.

Once you have made a decision on the approach, the allocation of the ESOP pool takes place. Typically, this pool represents around 5-15% of the total shares in the company, although it depends on the stage of the business. Employees then engage in negotiations regarding their ESOP and can utilise tools like Orchestra to effectively manage and monitor their progress towards ownership.

Employee Share Schemes can be intricate and challenging to maintain. So it’s important to have a dedicated management tool, providing employees with complete transparency regarding the benefits they accrue over time.

THE BASICS OF B CORP

What is a B-Corp certified company?

Certified B Corporations are businesses that meet the highest standards of verified social and environmental performance, public transparency, and legal accountability to balance profit and purpose. B Corps are accelerating a global culture shift to redefine success in business and build a more inclusive and sustainable economy. In essence, they are businesses which undergo an independent process of certifying the ongoing improvement of their environmental and social impacts.

What are the advantages of being a B-Corp company?

What are the benefits of becoming a B Corp? There are just so many! Where do we start? Okay let’s start with these six gooduns.

  1. Recruitment: B Corps attract the best talent and have better staff retention.
  2. Profitability and competitive edge: Empirical data shows that B Corps are making more money than non-B Corps in their industry. As well, B Corps proved more resilient through the pandemic.
  3. Brand loyalty: More customers want sustainable brands and are voting with their wallets.
  4. Access to capital: Investors are now demanding businesses they give money to have transparency on their ESG.
  5. Cost savings: By scrutinising their operations, B Corps have found innovative ways to significantly cut costs.
  6. Legislation-proof: Have you noticed the raft of new ESG legislation that’s been passed all over the world? Becoming a B Corp means you’re not going to be left behind.

Why we are seeing more companies in NZ and Australia becoming B-Corps?

More than 600 companies across Aotearoa New Zealand and Australia are Certified B Corporations, representing industries from accounting to waste management. There are many drivers of this growing interest but in the main, business owners have read the writing on the wall. The old way of doing business is extractive, destructive and unsustainable. A new low carbon economy is fast emerging as the world gets to grips with solving the unprecedented challenges of the climate crisis and a population approaching 10 billion. 

While the business world has driven much of this destruction, the business world is also the only sector that has the innovation, creativity and resources necessary to quickly find and scale the solutions.

Ultimately, business owners and employees are just people. And most people don’t want to trash their planet and their communities. They want to see their children and grandchildren thrive. This is also driving the growth of the B Corp movement because certification offers businesses an ESG roadmap. Most people want to be part of the solution they just don’t know how. B Corp shows them how.

What is the process involved? How long does it take?

B Corp certification is a positive screening tool. In other words, you score points for the good you’re doing, for example, treating your staff fairly, supporting disadvantaged groups in your community, or helping regenerate the environment. 

The types of companies that are interested in a certified B-Corp are probably already demonstrating some kind of ongoing impact in social and environmental improvement, so they may be closer to being B-Corp certified than they think!

In terms of timeline, it varies depending on the number of new initiatives a business decides to adopt and how much effort they require. As a rule of thumb, expect it to take 12 to 18 months, depending on the size and complexity of the business.

The first step is to have a conversation with a group or consultant that know what they’re talking about, such as the team at Grow Good, who offer free health-checks to better understand what would be involved in getting your business B-Corp certified.

Would you like help with that?

Here at Grow Good, we exist to coach people through the process of becoming B Corp certified.

The B Corp Impact Assessment framework  is free to access and provides dozens of useful insights and opportunities for any business but it can be confusing and overwhelming.

We are consultants who have completed the official training provided by B Lab, the organisation that runs the B Corp certification programme. We live, breathe and sleep B Corp. We are your B Corp buddies. We make it easier. We translate the questions into plain English and give you a host of template policies and example documents so you don’t have to start everything from scratch or reinvent the wheel. We show you how to unlock the big point scoring areas most relevant to your business.

Are you ready to go B Corp? It’s completely your decision but if you are, and if you think it would be helpful to have a guiding hand through the process, we’re here to help. Drop us a line or jump straight in and book a free 30 min discovery call with me.

Yours in purpose,

Ngā manaakitanga,

Tamara

tamara@growgood.co

 

Are you Ready to B Better?

Ready to take the plunge towards becoming a B Corp business? Let the Grow Good team guide you through the process either through 1:1 coaching or group coaching on one of our regular cohort programmes for micro businesses. Book a 30-min discovery call with Tamara here.

You can use your Business as a Force for Good.

Just get started. Take the first step. Get in touch

Why B Corp is a home run

What are the benefits of becoming a B Corp? Crikey, there are just so many! Where do we start? Okay let’s start with these six gooduns.

  1. Recruitment: B Corps attract the best talent and have better staff retention
  2. Competitive edge: Empirical data shows that B Corps are making more money than non-B Corps in their industry. As well, B Corps proved more resilient through the pandemic.
  3. Brand loyalty: More customers want sustainable brands and are voting with their wallets
  4. Access to capital: Investors are now demanding businesses they give money to have transparency on their ESG
  5. Cost savings: By scrutinising their operations, B Corps have found innovative ways to significantly cut costs
  6. Legislation-proof: Have you noticed the raft of new ESG legislation that’s been passed all over the world? Becoming a B Corp means you’re not going to be left behind.

But don’t take our word for it, here are some real world examples of how it pays to become a B Corp business…

Nespresso CEO says its B Corp certification is helping it attract talent

“The main benefit of being a B Corp—and I didn’t expect it—is from the inside,” Nespresso CEO Guillaume Le Cunff says in a recent interview. “We brought 14,000 people across the world along in our journey. You will see it in the signature of people. To attract talent, this is part of the conversation. Any young talent interested in Nespresso, will browse and will see the B Corp label.”

https://uk.finance.yahoo.com/news/nespresso-ceo-says-b-corp-051714242.html

Smallhold CEO says becoming a B Corp allowed them to quantify their positive impact and explain it to the public

We barely changed anything about Smallhold to become a B Corp,” says Andrew Carter, CEO and Co-Founder of Smallhold, an organic mushroom farming business. “We were doing all of these things already. Paying living wage, energy efficiency, circularity, sustainability, it is in the DNA of what we do, it always has been. The B Corp process has allowed us to quantify it, explain it to the public, and find ways to improve in the years to come.

“Becoming a certified B Corporation is an ongoing journey. We’re continuously working to hold ourselves accountable, which means there’s a constant need of evaluation, adaptation and collaboration— and it’s a path worth pursuing.”

https://www.forbes.com/sites/christophermarquis/2023/07/12/the-future-of-fungi-smallhold-sets-new-standards-for-farming-with-b-corp-certification/

The Body Shop asked a group of Gen Zers to critique the company – and it improved the business

The Body Shop came up with an innovative way to integrate Gen Zers into the decision-making at the company by creating a youth board of advisors. This falls in line with the B Impact Assessment’s focus on engaging with all the stakeholders in a business.

Realising that while it was encouraging global leaders to embrace young voices, the British multinational beauty retailer was not actually doing this themselves. So The Body Shop addressed this gap by creating a secondary board (or as the brand calls it, a Youth Collective) to advise its leadership team. But on this one, no over 30s are allowed to join.

https://finance.yahoo.com/news/body-shop-asked-group-gen-092415743.html

Embracing The B Corp Journey

The process of becoming a B Corp certified business makes the people who run a business, and who work for a business, pause for a moment to step back and take stock. It encourages people to ask themselves questions like, ‘why do we do what we do?’ ‘What kind of impact is our business having in the world – both positive and negative?’ ‘How do we increase the positive impact we’re having?’

It is a ‘rigorous but achievable’ process. This is one of our favourite phrases at Grow Good – ‘rigorous but achievable’. It’s become our mantra. Because the journey to becoming B Corp certified is not meant to be easy. It is meant to spark discussion, debate and reflection. It is meant to stretch you. It’s meant to get you asking questions about what you do; why you do it and how you’re doing it. Mainly though, it’s meant to get you thinking about how you can genuinely drive more positive impact in the world. And it’s meant to turn you into a better, more prosperous business.

Would you like help with that?

Here at Grow Good, we exist to coach people through the process of becoming B Corp certified.

The B Corp Impact Assessment framework  is free to access and provides dozens of useful insights and opportunities for any business but it can be confusing and overwhelming.

We are consultants who have completed the official training provided by B Lab, the organisation that runs the B Corp certification programme. We live, breathe and sleep B Corp. We are your B Corp buddies. We make it easier. We translate the questions into plain English and give you a host of template policies and example documents so you don’t have to start everything from scratch or reinvent the wheel. We show you how to unlock the big point scoring areas most relevant to your business.

Are you ready to go B Corp? It’s completely your decision but if you are, and if you think it would be helpful to have a guiding hand through the process, we’re here to help. Drop us a line or jump straight in and book a free 30 min discovery call with me.

Yours in purpose,

Ngā manaakitanga,

Tamara

tamara@growgood.co

 

Are you Ready to B Better?

Ready to take the plunge towards becoming a B Corp business? Let the Grow Good team guide you through the process either through 1:1 coaching or group coaching on one of our regular cohort programmes for micro businesses. Book a 30-min discovery call with Tamara here.

You can use your Business as a Force for Good.

Just get started. Take the first step. Get in touch

Allbirds a step ahead with world-first net-zero shoe

People in shoe land are taking the concept of ‘carbon footprint’ a little more literally as the race to produce the most planet-friendly shoe heats up! (Just like the planet, ironically.)

Who’s out in front? Allbirds hit a home run recently with the launch of the world’s first net-zero carbon shoe. Called the M0.0NSHOT, it was officially unveiled for the first time on June 27 2023.

The landmark net 0.0 kg CO₂e carbon footprint—versus a standard sneaker, which is about 14 kg CO2e based on Allbird’s own calculations—will be achieved without relying on a single carbon offset. Order now because they aren’t available till 2024.

Along with the design of their fab new show, those clever Allbirds trailblazers also revealed the RECIPE B0.0K – an open-sourced toolkit of how they got to net zero – to the industry at large (ie their competitors and anyone else who fancies a crack at making a shoe).

That’s right, Allbirds are open-sourcing their toolkit. This is a big deal. It is also completely in line with #BCorp thinking on collaboration and cooperation in business to make the world a better place – as opposed to the kill-or-be-killed competition mentality that is driving us to the brink of extinction.

As co-founder Tim Brown wrote on a Linkedin Post for the launch:

“In between my feelings of pride, excitement, and optimism, the simple fact remains that one company is not enough. One shoe is not enough. We need others to join us.

“That’s exactly why we have released our entire Allbirds M0.0NSHOT toolkit. The materials, manufacturing, packaging, transportation, calculations, partners – it’s all there on our website, free of cost, ready to be used.

“Please take this toolkit. Use it. Share it. Reinterpret it. Or reach out to partner with us on another M0.0NSHOT – I would love to hear from you. Because while we’re proud of what the shoe represents, the real marker of success will be the progress we make together.”

I mean.

Come on.

Give that man a gold star. He’s walking his talk. In his M0.0NSHOT shoes.

But wait, there’s more. Allbirds are not the only players in this game. They’ve just set the bar pretty high.

Brooks is also in the, um, running with their Ghost 15, which has 9.2 kg CO2eq – a not-that-impressive 6% reduction on the Ghost 14 but it is still about 5kg CO2eq less than the carbon footprint of an average pair of sneakers at 14kg CO2eq.

What are the mega players doing? Yeah, not so much. Nike is making a fair bit of noise about its sustainability efforts and is using at least 20% sustainable materials in some products. As well its experimenting with a recycling initiative called Nike Refurbished, where people can bring in their old shoes for a clean and repair, they also talk about circular design. They’ve also got a hydrogen-fuelled container ship… but with an annual revenue of about $46 billion, this is a company that could do A LOT to completely change the game. So, you know, come on then.

Adidas seem to be doing even less. They get as far as saying on their website that they ‘commit to using as many recycled materials as possible’ but who knows what that actually means. To be grudgingly fair, the Adidas Group have set some public goals including being climate neutral by 2050 and a 15% reduction per product in GHG emissions by 2025 (measured against 2017). However, it’s all a little lacking in detail and is kind of underwhelming and disappointing.

There are other small but beautiful players in this market. Kiwi B Corp brand Orba is making shoes that are all natural and all biodegradable. They say that you can can bury your Orba shoes at the end of their life and they’ll decompose back to nature, from whence they came. Along with Orba and Allbirds, there are another 120 shoe companies in the world who are using business as a force for good. You can find them here:

What does this mean for you? Someone who probably wears shoes? Why not let your feet do the talking by cladding them in the products of businesses who are authentic and transparent regarding their environmental and social impact.

 

Yours in purpose,

Ngā manaakitanga,

Tamara

tamara@growgood.co

 

Are you Ready to B Better?

Ready to take the plunge towards becoming a B Corp business? Let the Grow Good team guide you through the process either through 1:1 coaching or group coaching on one of our regular cohort programmes for micro businesses. Book a 30-min discovery call with Tamara here.

The B Corp Impact Assessment framework  is free to access and provides dozens of useful insights and opportunities for any business.

But if you find it a bit complicated and would benefit from some help, just ask. We are consultants who have completed the official training provided by B Lab, the organisation that runs the B Corp certification programme. We live, breathe and sleep B Corp.

You can use your Business as a Force for Good.

Just get started. Take the first step. Get in touch

Get your head around ESG now to unlock a huge advantage

Big news! Mandatory ESG reporting is coming to Australia next year (2024) for large companies and financial institutions.

This makes our Aussie neighbours the latest in a rapidly-growing chain of nations that are introducing some form of mandatory ESG (Environmental, Social, and Governance) reporting requirements.

In the UK, more than 1,300 of the largest UK-registered companies and financial institutions have had to disclose climate-related financial information since April 2022 – in line with recommendations from the Task Force on Climate-Related Financial Disclosures (TCFD). This made Britain the first G20 country to enshrine in law mandatory TCFD-aligned requirements. The law impacts many of the UK’s largest traded companies, banks and insurers, as well as private companies with over 500 employees and £500 million in turnover.

The same rumblings are happening in the US, the European Union, Japan, Canada, South Africa, and more.

Here in Aotearoa New Zealand, mandatory ESG reporting was implemented six months ago in January 2023. Currently, this only impacts about 200 Kiwi businesses but it is a sign of things to come for all businesses as the world picks up the pace in order to meet international obligations and the target of net zero carbon by 2050.

Presently, the majority of large financial organisations provide limited to no information on what climate change might mean for them or are reporting in inconsistent ways. The goal of mandatory climate-related disclosures is to:

  • ensure that the effects of climate change are routinely considered in business, investment, lending and insurance underwriting decisions
  • help climate reporting entities better demonstrate responsibility and foresight in their consideration of climate issues
  • lead to more efficient allocation of capital, and help smooth the transition to a more sustainable, low emissions economy.

Mandatory ESG reporting for all businesses is now a matter of ‘when’ not ‘if’. And like the match that starts a fire, this will spark other shifts in the market place, in fact this is already happening.

More businesses, organisations and local councils, are looking to clean up their supply chains and improve their own impact reports by giving preference to doing business with companies that can demonstrate they’re on top of their own ESG monitoring and reporting. Businesses that can verify their sustainability claims, through a certification such as B Corp, will have a powerful market advantage. We wrote about this in an earlier blog called New EU corporate due diligence law is a big deal… and opportunity

So one thing you can do to get ahead of the raft of legislation changes that are on the way is to use the B Corp Impact Assessment framework.

This framework is free to access and provide dozens of useful insights and opportunities for any business.

But if you find it a bit complicated and would benefit from some help, just ask. We are consultants who have completed the official training provided by B Lab, the organisation that runs the B Corp certification programme. We live, breathe and sleep B Corp.

You can use your Business as a Force for Good.

Just get started. Take the first step. Get in touch.

 

Yours in purpose,

Ngā manaakitanga,

Tamara

tamara@growgood.co

 

Are you Ready to B Better?

Ready to take the plunge towards becoming a B Corp business? Let the Grow Good team guide you through the process either through 1:1 coaching or group coaching on one of our regular cohort programmes for micro businesses. Book a 30-min discovery call with Tamara here.

Why Hollywood is talking B Corp

You know that B Corp is a ‘thing’ when mega Hollywood celebs are talking about it.

Hot off the presses of Vogue magazine this week is the news that Angelina Jolie has partnered with luxury fashion brand Chloe because that brand is a B Corp.

Let me repeat that with the emphasis on the word ‘because’.

Jolie has partnered with luxury fashion brand Chloe BECAUSE that brand is a B Corp.

Yep, that’s right. Angelina Jolie loves B Corps. The fact that Chloe is a B Corp is what sealed the deal. Here at Grow Good, you’ll often hear us banging on about how becoming a B Corp opens doors for your business and creates new opportunities. Case in point.

“Very few luxury brands are a certified B Corp,” said Jolie in a statement announcing the collaboration. “It was important to me to work with Chloé, one of the first luxury brands to be a B Corp,” Jolie said.

In a nutshell, Jolie has launched a new fashion brand, Atelier Jolie, and she’s teamed up with Chloe to launch a women’s wear capsule collection.

“My earnings from this collaboration will be invested in establishing apprenticeships for tailors and artisans at Atelier Jolie,” Jolie said.

For those not up with their fashion jargon, a capsule collection is a small collection of clothing composed of classic, easily interchangeable items designed to maximise the number of outfits that you can create. The idea of a capsule collection is to create a variety of different looks with a minimal selection of clothes. It’s so B Corp.

According to the press statement, the collection of mostly eveningwear will feature fluid silhouettes inspired by Jolie’s wardrobe. Some pieces highlight the work of artisans from a Fair Trade enterprise and spotlight female-led social enterprises; others are made from deadstock and lower-impact materials.

Jolie launched Atelier Jolie as a collaborative brand in May 2023, which she said would ‘facilitate working with tailors, pattern-makers and artisans globally; only use leftover vintage material and deadstock; and spotlight everyone involved in the process’. YEEEESSSS Ange! Nice one. Way to go.

So with any luck, Atelier Jolie will also be seeking B Corp certification soon (after completing their first year of operations). We’re holding our breath for that here at Grow Good Towers.

Sure, the B Corp movement already has a few celebrities involved with B Corps, for example, there’s TV chef Jamie Oliver in the UK whose company is a B Corp, and actress Jennifer Garner co-founded Once Upon a Farm, a B Corp that makes cold-pressed, organic fruit and veggie blends for babies. But there is plenty more room for celebs to show the way in the B Corp movement. We’re all up for that type of celebrity endorsement if it helps boost awareness of making business a force for good.

Will Angelina Jolie be the first Hollywood mega-star to head up a B Corp company? Watch this space.

 

Kia kaha

Tamara

PS Do you know of any local or national celebs involved with B Corps? Let us know in the comments!

 

tamara@growgood.co

Are you Ready to B Better?

Ready to take the plunge towards becoming a B Corp business? Let the Grow Good team guide you through the process either through 1:1 coaching or group coaching on one of our regular cohort programmes. Book a 30-min discovery call with Tamara here.

 

Kiwis don’t want their pensions to trash the planet (like, duh)

Guess what, here’s a news flash that isn’t really a news flash. Turns out that New Zealand investors want to do well and do good with their money, a new study has found.

Finally! The lie we’ve been sold about how we can only drive profit through suffering, extraction, and destruction is being unveiled as the insidious propaganda that it is.

It’s similar to the lie we’ve been sold about how businesses can only be ‘successful’ (ie profitable for shareholders) if they exploit in some way, be it pay low wages, belch greenhouse gases into the atmosphere, or pretend the plastic waste they create is unavoidable and not their problem.

It’s BS.

In truth, businesses that are a force for good in the world do better than those that aren’t. A Neilson study has found businesses with a demonstrated commitment to sustainability have grown by more than four per cent globally, as opposed to those without growing less than one per cent.

But we don’t get told this. Instead, we get told that we must accept there is a trade-off between ethical investing and earning good returns.

Oh no’, we are told. ‘I’m sorry but if you want your investment and pension funds to grow then you have to invest in companies that use slave and child labour, and that don’t pay fairly for resources, and that leave behind pollution… I know, it’s unfortunate but you have no choice if you want to have any money for your old age, you don’t want to be broke and homeless in your old age do you?…

LIKE ATTRACTS LIKE

Because it’s actually the very opposite. Just as we create more scarcity and inequality by supporting scarcity and inequality; we also create more true prosperity and abundance for all by supporting true prosperity and abundance for all.

For decades, we’ve turned a blind eye to our investment funds and pension funds being used to support industries like oil, gas, weapons of war, deforestation, tobacco, and so on, because we were told we ‘had to’ if we wanted to have a healthy retirement pot.

Shock, horror. It’s a massive lie that has caused us to fund the very industries that are destroying the planetary ecosystems upon which our lives utterly depend. At best, this unpalatable truth is kept secret. I bet most Kiwis have no idea that $68 million of our collective KiwiSaver funds and investment funds are invested in companies driving deforestation.

At last, more people are no longer falling for it and no longer standing for it, according to a new report by both Mindful Money and the Responsible Investment Association Australasia (RIAA).

The research found that almost three quarters of New Zealanders (74%) expect their investments to be managed ethically and responsibly. The number of people willing to move their funds if the investments do not align with their values has increased to 59% (+4%).

And despite this being a time where we have high levels of financial uncertainty and volatility, not only is consumer demand for ethical investing gain momentum but there is growing interest in investing for positive impact.

GROWING DEMAND FOR POSITIVE IMPACT

One of the most significant findings from this survey is the increase in consumer interest in investing for positive impact, both through dedicated funds and within mainstream ethical and responsible funds.

A growing number of New Zealanders understand that investment has real world impacts, including on issues such as climate change, and they are interested in funds that can demonstrate positive impacts.

Consumers want to know what types of companies are in their portfolios, and they are more likely to choose ethical and responsible funds that have independent certification.

The survey also shows that consumers don’t believe the old myths of a trade-off between ethical investing and earning good returns. 45% expect ethical and responsible investments to perform better in the long term (up by 5% from 2022) while 45% see the relationship as neutral.

This is consistent with a large and growing evidence base, including for Australian and New Zealand investment funds, using comparative returns between ethical/responsible funds and traditional funds.

Any business that cannot make money without exploiting in some way, shape or form is a failure. A lazy, short-sighted and egregious failure and, finally, as a society we’re beginning to see that and we are demanding that the business sector pull its socks up.

 

Kia kaha

Tamara

tamara@growgood.co

 

Are you Ready to B Better?

Ready to take the plunge towards becoming a B Corp business? Let the Grow Good team guide you through the process either through 1:1 coaching or group coaching on one of our regular cohort programmes. Book a 30-min discovery call with Tamara here.

 

A stand-up comedy routine about B Corps written by ChatGPT

Okay, we’re going a bit left-field with the Grow Good blog this week. It all started when we saw that it’s open mic night at our local comedy club soon. And yes, it’s true we have dabbled in stand-up comedy in the past… could we do it again? And if so what subjects would our comedy routine address? The big question is, could we make serious subjects like becoming a B Corp, social justice and climate change, well, funny? Can we win hearts and minds for the cause through comedy?

There was only one thing to do. Ask ChatGPT. Turns out, ChapGPT considers itself quite the comedian. When we asked it to write us a stand-up comedy routine about B Corps, it rattled off several versions without breaking a sweat, we’re sharing the first of those routines here. So, please, welcome to the stage Chappy G! [Whoo! Crowd goes wild…]

“Thank you! Thanks so much, yes, ladies and gentlemen, give it up for B Corps! Yeah, you know, those businesses that are all about balancing purpose and profit. It’s like trying to convince your grandma that you can eat cake for breakfast and still be healthy. It’s a tough sell, but somehow, they make it work.

So, B Corps, they’re like the unicorns of the business world. You don’t see them every day, but when you do, you’re like, “Whoa, that’s some magical stuff right there.” I mean, they’re companies that actually care about more than just the bottom line. It’s like finding a billionaire who volunteers at the local animal shelter. It’s rare, but when it happens, you can’t help but be impressed.

But let’s be honest, being a B Corp is no easy feat. It’s like trying to keep your cool while your toddler is throwing a tantrum in the middle of a grocery store. You’re juggling social and environmental responsibilities while still trying to make a profit. It’s like spinning plates, except the plates are made of recycled paper and the sticks are bamboo. It’s a delicate balance, my friends.

And let’s not forget about the certification process. B Corps have to go through this rigorous assessment to prove that they’re not just greenwashing their way into our hearts. It’s like going to the DMV, but instead of testing your driving skills, they’re testing your ability to save the planet. Can you imagine? “Parallel park this hybrid car, and if you hit the curb, sorry, no B Corp certification for you.”

But hey, being a B Corp does come with its perks. They get to hang out with other socially conscious businesses, like a support group for companies who want to change the world. They probably have their own secret handshake or something. I can just imagine two B Corp CEOs meeting at a conference, and one says, “Hey, I’m a B Corp,” and the other replies, “No way, me too! Let’s hug it out and brainstorm ways to make the world a better place.”

But you know, being a B Corp also raises some interesting questions. Like, what happens if a B Corp and a regular corporation go on a blind date? Can you imagine the conversation?

B Corp: “So, what are your values?” Regular Corp: “Uh, profits?” B Corp: “Oh, how cute. Well, I’m all about people and the planet.” Regular Corp: “That’s nice, but can we talk about mergers and acquisitions instead?”

In the end, though, we need more B Corps in the world. They’re like the superheroes of the business world, fighting for a better future. They’re like Batman, but instead of a cape, they wear sustainable clothing. And instead of a Batmobile, they drive a Prius. They may not have superpowers, but they have something even better – a genuine commitment to making a positive impact.

So, next time you come across a B Corp, give them a high-five, or maybe even a fist bump if you’re into that. They’re the ones trying to change the world, one ethically sourced coffee bean at a time. And hey, if they can make purpose and profit work together, who knows? Maybe one day we’ll all be eating cake for breakfast. Thank you, and goodnight! I’ve been Chappy G…”

So, there you go. What do you think? Is Chappy G a comedy genius? Should we take this routine to our local comedy club on open mic night? Please give your scores out of 10 on the funny-o-meter in the comments below. Next week, let’s see what Chappy G says about climate change.

Fankya Fanyaverrymush, I’m here every Friday. Try the fish…

 

Kia kaha

Tamara

tamara@growgood.co

 

Are you Ready to B Better?

Ready to take the plunge towards becoming a B Corp business? Let the Grow Good team guide you through the process either through 1:1 coaching or group coaching on one of our regular cohort programmes. Book a 30-min B Corp discovery call with Tamara here.

Why I love Kiwi businesswomen

In a couple of days, I’m going to be a guest speaker at the BNZ Women’s Networking Breakfast at the Community101 hub in Christchurch, Aotearoa New Zealand.

For 10 minutes, I get to take centre stage and talk about B Corp. My nerves and insecurities regarding public speaking will keep for another blog so I’ll gloss over that for now and get to the point.

In preparing my Powerpoint slides for this presentation, I’ve taken a look at some of the amazing and inspiring female entrepreneurs of this region, whose businesses are also B Corp certified. My goodness, there are some fierce females out there who are  roaring in a way that would make 70’s sensation Helen Reddy cry with pride (watch this vid Gen Z).

Local business women who are shaking things up and changing the world with their focus, determination, tenacity, sheer single-bloody mindedness, creativity, and sense of purpose. I am inspired, in awe and deeply grateful for them all at the same time.

So, this blog is an open letter of love to some of these women. Thank you for what you do. Thank you for battering down the obstacles and cracking the invisible and visible ceilings. Thank you for holding the torch high and lighting the way. Thank you for leading by example. Thank you for demonstrating what’s possible. Thank you for committing to continual improvement of your social and environmental impact. Thank you for your vision of business based on a triple bottom line of people, planet and profit. Here’s a short summary of some Kiwi women awesomeness… with an unashamed focus on Canterbury women and B Corps.

Ethique

First,  let me give a ‘yay you’ to founder of Ethique Brianne West. At this very moment, I have a bar of Ethique shampoo in my shower, a stick of lip balm in my handbag, and a Poppy lipstick in my make-up bag. #lovethisbrand

Brianne West, founder of Ethique

While still a uni student back in 2012, Brianne created her first shampoo bar on her kitchen table. It was called ‘Mintasy’ and Brianne was motivated by the desire to help rid the world of plastic bottle pollution #giveupthebottle. Fast forward to today, she’s been tweeted by Britney Spears and Ashton Kutcher and built a business now said to be worth about $US100 million. I mean, whaaaaat!? Boom. Mic drop. Anyway, Brianne recently stepped away from running Ethique so she could focus on her latest venture, Business But Better, which is mentoring for mission-driven entrepreneurs who are building businesses that solve social and environmental challenges. Brianne’s ethos is that business done right, done fairly and equitably, will create a better world for all, and a healthier environment. Which is the same message we have here at Grow Good about becoming a B Corp. And yes, Ethique is a rock solid B Corp.

Jeuneora

Next, Monique Kaminski founder of wellness and beauty brand Jeuneora. Like Brianne, Monique also started her business from home, selling collagen powder as a “side hustle” to supplement her income in 2016.

Monique Kaminski, founder of Jeuneora, a wellness and beauty brand

Now the Kiwi collagen queen, Monique built a website, manufactured her first run of Renew+ Marine Collagen Powder and launched it on social media with no marketing budget. Now the brand is said to be worth more than $7 million. Also a B Corp, Jeuneora has been hardcore about its social and environmental impact from the get-go but this seems to becoming ever more integral to the brand’s evolution. For example, the marine collagen used in Jeuneora products is ethically and sustainably sourced from France. It’s made from fish skin that would otherwise go to waste as a by-product of the fishing industry. The brand is fiercely cruelty-free and recently got Leaping Bunny status, which is the most rigorous certification that proves no testing on animals in any ingredients.

As well, the packaging of Jeuneora products (packaging is always problematic for any business) is 100% Sugarcane plastic and they have a free Terracycle returns programme. This means you can order a return envelope for free on their website and then send your empties back. Jeuneora ship product with DHL GoGreen Carbon Neutral programme. As well, $1 from every sale goes to charity. So far they’ve supported Australian Bush Fire Relief, the NAACP Legal Defence Fund, Wellington City Missions, and HagarNZ (for survivors of trafficking and slavery), and more.

Gourmate Pet Co

Next, a big shout out to Laura Wilkinson and Stephanie Mearns of the Gourmate Pet Co. I’m delighted to say that Gourmate Pet Treat Co. was New Zealand’s first B Corp Certified Pet Business. It all started because Laura and Steph were on a mission to create the best dog treats humanly possible.

Laura and Steph, founders of Gourmate Pet Co

Why is that a thing? Because apparently some pet food manufacturers were getting away with putting some really awful, even toxic, stuff into pet food because the legal standards are so much lower than for human food. Why would anyone want to feed toxins to their fur family?

So Gourmate uses only organic, wild, or low density free range proteins from premium local suppliers. In particular, organic Green Lipped Mussels, which are one of the most sustainable animal proteins available. As well, Gourmate advocates for better animal welfare practices within the pet industry. They care and share with local charities through the donation of treats, financial support, and awareness raising.

Untouched World

Another fabulous and gorgeous Christchurch brand, and a B Corp, is Untouched World, the founder of which is Peri Drysdale. It is a sustainable lifestyle brand that celebrates living in harmony with nature. I am currently saving up for one of the beautiful jumpers created by Untouched World. I have an envelope held onto my fridge door by a magnet. When I have a spare fiver or tenner, I put it in the envelope. One day, I will take home one of these stunning garments. Until then, I settle for buying coffee in the Untouched World cafe.

Peri Drysdale, founder of Untouched World

Untouched World was the first fashion company in the world to be recognised by the United Nations for sustainability. Its logo is a representation of a Maori Kite, which is the emblem of an ideal relationship between people and nature. The company uses ethically and sustainably sourced fabrics like ZQ certified merino, organic cotton and Ecopossum, all of which will naturally return to the earth and break down without contributing to landfill.

The majority (92%) of garments are made in Christchurch.

The Chia Sisters

Chia Sisters co-founders Florence and Chloe Van Dyke

Okay, so these amazing women aren’t from Canterbury, they are based in Nelson. I don’t care, I’m still going to shout to them because they’re so awesome. Chloe and Florence Van Dyke are the brains and brawn behind Chia Sisters superfood drinks, which are formulated to nourish your mind and body.

New Zealand’s first solar-powered juicery, Chia Sisters have also achieved Living Wage, Climate Positive, Zero Carbon, and B Corp Certification. They are also ranked among the top 5% of B Corps worldwide for environmental efforts. Their latest brainwave is to transport their juices in kegs for the hospitality industry, an innovation borrowed from the beer industry but which has never been done for juices. This innovation will save a massive amount of single-use plastic bottles that were ending up in landfill.

These fantastic female entrepreneurs are just the tip of the ice-berg of female talent we have in Canterbury and Aotearoa New Zealand. There are so many more I could mention, some B Corp and some on their way to being B Corp Certified, including… Cathy Gillespie of Like-Minded Learning, Helen Townsend and Anthea Madill of Sustained Fun, Jemma and Corinne Turner of Mylk Made, Sarah O’Connell of Soul Studio Hot Yoga, Sally Wynn Williams of Brannigans, Kendall Flutey of Banqer, Kaila Colbin of Boma, Jo Blair of Brown Bread, Caroline Thalund of S360, and more.

Just as exciting, is the up and coming female entrepreneurs of Canterbury. Some of whom are being nurtured through the University of Canterbury’s Centre of Entrepreneurship. I wish that had been an option when I was a student at Canterbury, about a zillion or so years ago.

B Corp businesses like these, through small and massive changes and actions, are weaving a future when business as a force for good is the way everyone does business. They are using the B Impact Assessment as a framework for continual improvement of their social and environmental impact. Because that’s what the BIA is. It’s an ESG framework as well as a certification.

If this is a movement you think you’d like to be a part of, drop us at Grow Good a line at tamara@growgood.co, or book in a free discovery call.

Kia kaha

Tamara

tamara@growgood.co

 

Are you Ready to B Better?

Ready to take the plunge towards becoming a B Corp business? Let the Grow Good team guide you through the process either through 1:1 coaching or group coaching on one of our regular cohort programmes. 

Tackling the C word… (What?! We’re talking about carbon. Sheesh.)

Ah yes, the controversial C word.

We all know it’s crucial. We all know we have to get our heads around it and we all know we have to drastically slash it.

I’m talking carbon emissions of course. That C word. Up there with other equally dreaded C words like ‘calories’ and ‘carbs’. All things we have to count and reduce but don’t particularly want to.

This is the time of the low carbon diet.

And this kind of carbon counting is becoming increasingly mandated as the world urgently tries to reign in greenhouse gas emissions (GhG) in an effort to meet the goals of the Paris Agreement (the legally-binding treaty on climate change that was signed by 196 countries at the UN Climate Change Conference (COP21) in Paris, France, on 12 December 2015).

What is the goal of the Paris Agreement? To limit global warming to well below 2 degrees Celsius above pre-industrial levels and to pursue efforts to limit the temperature increase to 1.5 degrees Celsius (which is pretty much where we are now so some believe that ship has sailed, barring a miracle, so batten down the hatches because climate schizz is gonna get real).

A warming planet creates a wide range of risks for humanity and other species. For businesses in particular, risks include disrupted supply chains and labour challenges. Climate change and extreme weather events such as droughts, floods and fires, can impact all businesses worldwide. Like, duh.

According to latest scientific data the world is on the path to exceed global warming of 1.5°C and 2°C during the 21st century unless deep reductions in CO2 and other greenhouse gas emissions occur in the coming decades (IPCC Sixth Assessment Report). Global emissions should be cut to 45 per cent below 2010 levels by 2030, and the world would need to achieve net zero carbon dioxide emissions by around 2050, in order to limit global warming to 1.5°C above pre-industrial levels.

LOW CARBON DIET

But the bottom line is, carbon reporting is getting increasingly mandatory as we try to meet these targets. One factor driving the expansion of mandatory carbon reporting, aka carbon accounting, is increasing awareness of the risks posed by climate change and the role that businesses play in contributing to it. Investors and other stakeholders are increasingly demanding transparency around carbon emissions and other environmental impacts, and governments are responding by mandating reporting requirements.

The future of mandatory carbon reporting globally will continue to expand and become more stringent. Many countries and regions, including the European Union (EU), United Kingdom, Japan, Australia, New Zealand, and several U.S. states, have already implemented mandatory carbon reporting requirements for large companies, and others are expected to follow suit.

In the EU, for example, the European Green Deal is a set of policy initiatives introduced by the European Commission in 2019 aimed at making the EU climate-neutral by 2050. It is an ambitious plan to transform the EU’s economy, with a focus on reducing greenhouse gas emissions, protecting biodiversity, and transitioning to a circular economy.

One key component of the Green Deal is the EU’s commitment to reduce its greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels.

With this goal in mind, the EU has implemented a number of regulations aimed at improving carbon reporting, including the EU Emissions Trading System (ETS) and the Effort Sharing Regulation. The ETS is a market-based mechanism that puts a cap on the total amount of CO2 that can be emitted by power plants, factories, and other large emitters, and allows companies to buy and sell emissions allowances. The Effort Sharing Regulation sets binding national emission reduction targets for sectors not covered by the ETS, such as transport, buildings, and agriculture.

And this is just the start.

B CORP UPDATES

Here in B Corp world, the new standards for being a B Corp Certified business, to be implemented from 2024, will almost certainly include mandatory carbon reporting for all businesses.

While the proposed changes are still in draft form and under discussion, the intention is to urge B Corps to take action in accordance with science to combat climate change and its impacts. It is proposed to make three Climate Actions mandatory for B Corps namely:

  • CA1 Your company tracks its GhG emissions annually.
  • CA2 Your company implements a climate transition plan to ensure its fair contribution to keep global warming below 1.5 °C.
  • CA3 Your company has a track record of climate action. Scope: Your value chain, and all people and communities affected by your company, directly or indirectly.

CARBON REPORTING FOR SMES

For small companies, it can be hard to know where to start when it comes to carbon tracking and reporting. Here at Grow Good, we can help with that but if you want to DIY it, here are several steps a small company can take to report its carbon emissions:

  1. Define the scope of the emissions: The company needs to determine what activities are producing carbon emissions, such as energy use, transportation, waste disposal, etc.
  2. Collect data: The company needs to gather data on its carbon emissions. This can involve analysing utility bills, fuel receipts, and other relevant documents.
  3. Calculate emissions: Once the data is collected, the company can calculate its carbon emissions. There are several online tools and software available that can help with this process, like this free toolkit from the New Zealand government.
  4. Develop a report: The company should develop a report that outlines its carbon emissions, including the methodology used for calculating them. The report should also provide information on the company’s carbon reduction goals and any measures it is taking to achieve them.
  5. Submit the report: The company can submit its report to relevant stakeholders, such as customers, investors, and regulatory bodies. Why not publish it on your website on your B Corp or Sustainability page?

It’s important to note that there are various reporting frameworks that a small company can use to report its carbon emissions, such as the Carbon Disclosure Project (CDP), the Global Reporting Initiative (GRI), and the Sustainability Accounting Standards Board (SASB). These frameworks provide guidance on how to report on carbon emissions and other sustainability metrics.

Through small and large changes and actions, B Corps are weaving a future when business as a force for good is the way everyone does business.

If this is a movement you think you’d like to be a part of, drop us at Grow Good a line at tamara@growgood.co, or book in a free discovery call.

Kia kaha

Tamara

tamara@growgood.co

 

Are you Ready to B Better?

Ready to take the plunge towards becoming a B Corp business? Let the Grow Good team guide you through the process either through 1:1 coaching or group coaching on one of our regular cohort programmes. 

NZ B Corps winning the good fight

I don’t know about you but I can often end up feeling hopeless and despairing about the state of the world when I do a scroll through LinkedIn or Twitter.

Some days I just wanna find a corner, curl up in it and rock back and forth. For example, just this morning, I’ve seen posts on how it’s New Zealand Earth overshoot day this week (Earth Overshoot Day marks the date when humanity has used all the biological resources that Earth regenerates during the entire year), as well as how it’s barely the start of summer in Europe and already the continent is drying up and facing record temperatures, plus a post on how a 34-million year-old ice sheet in Antarctica is heading for collapse, which could wipe out entire nations.

In the face of this kind of awful news, it is no wonder eco-anxiety is on a meteoric rise and so many of us feel overwhelmed at the enormity of the problems, not to mention furious and incredulous as, while climate schizz gets proper real and scary, the world’s most powerful governments STILL do next to nothing. For example, the UK government has actually opened up a new licensing round to allow oil and gas companies to explore for fossil fuels in the North Sea.

The depth of stupidity is beyond belief.

While we need to be painfully aware of the challenges if we are to come up with solutions, it can get overwhelming and dispiriting.

As well, it is just as important to note and know that massive and important positive efforts are being made. This is why, in this blog, I’m going to highlight some of the incredible work of Aotearoa NZ B Corps. Because instead of feeling hopeless, I want to feel hopeful and galvanised to take massive positive action. So, here is a very small look at some of the amazing work of our homegrown Kiwi B Corps.

Eleven Kiwi businesses made the B Corp Best For the World lists in 2022 – meaning they’re in the TOP 5% globally for a particular impact area against businesses of a similar size. Those companies were:

In addition, Untouched World is the first fashion company in the world to be recognised by the United Nations for sustainability.

Sawmills Brewery is the pilot brewery for a project to investigate decarbonising the brewing industry.

Pic’s Peanut Butter has gained zero carbon and climate positive status. This means the overall activity of Pic’s business operations reduces carbon in the atmosphere. Where emissions can’t be eliminated, Pic’s offset with certified carbon credits as part of the community-owned Drawa project on Vanua Levu, Fiji, protecting 4,120ha of tropical rainforest from logging.

Kathmandu‘s aspirational goal for 2025 is to have zero environmental harm from our business operations. To get there, they plan to become carbon zero, operate zero-waste facilities and look at how to can remove waste from their supply chains.

Raglan Food Co is spearheading an effort to pick one million pieces of plastic and rubbish from off our beaches.

CarbonClick has helped 1,223 businesses and 221,663 individuals take climate action.

…and so much more.

Going forward, I’m on a bit of a personal mission to celebrate and promote the achievements and inspiring mahi of NZ B Corps. Stay tuned. Be inspired. And if your company is already a B Corp, and you have some great news to share, let me know!

Together we can redefine the meaning of ‘success’ for business and create new economic norms. (If you are still running a linear ‘take, make, waste’ business model – honey, then you are failing.)

Through small and large changes and actions, B Corps are weaving a future when business as a force for good is the way everyone does business.

If this is a movement you think you’d like to be a part of, drop us at Grow Good a line at tamara@growgood.co, or book in a free discovery call and we’ll help you get there.

Kia kaha

Tamara

tamara@growgood.co

 

Are you Ready to B Better?

Ready to take the plunge towards becoming a B Corp business? Let the Grow Good team guide you through the process either through 1:1 coaching or group coaching on one of our regular cohort programmes. 

Don’t wait to be a better business, get on with it now. The planet depends on it.

Here at Grow Good, it’s our job to help businesses become B Corp certified. Because the process can be confusing and daunting. We translate it, break it down, offer resources to make it as manageable as possible. If your business is ready to go B Corp, give us a shout or book in a discovery call.