FAQs on Governance

What does B Lab mean by net "income"?

By "net income", B Lab means net profit.

What does B Lab mean by "materiality"?

Materiality is the identification of issues that have a material impact in influencing company value. Historically, this focused on finance but has recently come to include climate related disclosures given the definition of materiality is if a reasonable person would see it as important.

Double materiality is an extension of this concept to include not only climate-related impacts on the company but also impacts of a company on the climate.

i.e. single materiality is how do issues in the world impact the company, double materiality also includes how do issues in the company impact the world.