2024-12-31-accounts - B Lab (UK)

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B Lab (UK) (A Company Limited by Guarantee)

Annual Report and Financial Statements

For the Year Ended 31 December 2024

Company Number: 09388752 Charity Registered in England and Wales Number: 1164694

B Lab (UK) Contents For the Year Ended 31 December 2024

	Page	Page
Reference and Administrative Details		2
Trustee Report	3	13
Independent Auditor Report	14 - 17
Statement of Financial Activities		18
Balance Sheet		19
Statement of Cashflows		20
Notes to the Financial Statements	21	31

Page 1

B Lab (UK) Reference and Administrative Details For the Year Ended 31 December 2024

Charity Name
Registered Charity Number:
Registered Company Number (England and Wales):
Trustee Directors

Company Secretary
Executive Staff

Registered Office

Auditors

Bankers

Solicitors

Website

B Lab (UK)
1164694
09388752
Anuradha Chugh (Co-Chair from 6 August 2025)
Nicola Clark
Amy Clarke (Co-Chair from 6th August 2025)
Louise Harman (Vice Chair from 27 February 2025)
Mary Johnstone-Louis (Chair to 6 August 2025)
Thomas Kenrick
George King
Phillippa Murray
Elizabeth Kavanagh
Christopher Turner
Thomas Ebbutt
James Ghaffari
Rosalind Holley
Elizabeth Kavanagh
Unit 2
Huguenot Place
17 Heneage Street
London
E1 5LN
Moore Kingston Smith LLP
6thFloor
9 Appold Street
London
EC2A 2AP
Coutts & Co
440 Strand
London
WC2R 0QS
Bates Wells
10 Queen Street Place
London
EC4R 1BE
www.bcorporation.uk

Page 2

B Lab (UK) Trustee Report For the Year Ended 31 December 2024

The Trustees have pleasure in presenting their report and the audited financial statements of B Lab (UK) for the year ended 31 December 2024. The accounts have been prepared in accordance with the Companies Act 2011, the accounting policies as disclosed in the notes, and the charity's governing document. The g the annual report and financial statements.

Structure, Governance and Management

The Directors of the charitable company are its Trustees for the purposes of charity law and constitute the report required by Company Law. The Trustees who have served during the year and since the year end were as follows:

Trustees

Anuradha Chugh (Co-chair from 6 August 2025) Nicola Clark Amy Clarke (Co-chair from 6 August 2025) Louise Harman (Vice-Chair from 27 February 2025) Mary Johnstone-Louis (Chair to 6 August 2025) Thomas Kenrick George King Philippa Murray

Company Secretary

Elizabeth Kavanagh

Key Management Personnel

Christopher Turner Chief Executive Officer Thomas Ebbutt Director of Impact James Ghaffari Director of Growth and Product Rosalind Holley Director of Marketing, Communications & Campaigns Elizabeth Kavanagh Director of Finance & Operations

Objectives and public benefit

As set out in the Articles of Association, B Lab (UK) exists to further the following objects for the public benefit:

To advance the education of the public in subjects relating to sustainable development and sustainable business and to promote study and research in such subjects provided that the useful results of such study are disseminated to the public at large.
To promote sustainable development for the benefit of the public by:
2.1 the preservation, conservation and the protection of the environment and the prudent use of resources; and
2.2 the promotion of sustainable means of achieving economic growth and regeneration.

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B Lab (UK) Trustee For the Year Ended 31 December 2024

compromising the ability of future generations to meet their own needs.

To promote compliance with the law and ethical standards of conduct, including without limitation by encouraging the adoption and application of high standards of business ethics and governance and thereby
3.1 maximising the material positive impact of business activities on people and the environment affected by such activities; and
3.2 minimising the negative effects of business activities on people and the environment affected by such activities.

Corporate Governance and Decision making

B Lab (UK) was incorporated as a company limited by guarantee in England & Wales on 14 January 2015 and registered as a charity with the Charity Commission for England and Wales on 3 December 2015.

The licensing arrangements with B Lab Company Inc, a Pennsylvania nonthe organisation supporting the global development of the B Corp movement, state that royalty fees of 8% of all non- philanthropic income generated by B Lab (UK) is paid to B Lab Global to support back-office development of the global movement, with cost-based fees charged per company submitted for certification and other assessments to ensure rigorous application of standards.

The Trustees are appointed through recommendation or open recruitment, based on knowledge of and commitment to the aims of the charity. Decisions are taken in the following way:

The Board of Trustees approves strategy, policy and annual budget and delegates operational authority to staff.
The Executive Team led by the Chief Executive Officer, decides on the day-to-day management of the charity and its activities, its outreach, its programme development, and prepares all papers and strategy documents for Board approval.
The Board decides on the level of pay for the Chief Executive Officer. Decisions on the pay of other staff are based on a) affordability and b) an ability to attract and retain skilled staff. There is no payment made to Trustees for their work.

The Trustees are aware of the principles and recommended practice for good governance set out in the Charity Governance Code for charities which was revised and issued in December 2020. The Board reviewed how it meets the Code and has an active plan to improve appropriate areas it does not fully meet.

The Trustees have regard to the Charity Commission's guidance on public benefit.

Risk Management and Internal Control

The Trustees review and assess risks at every Board meeting and have considered the major risks to which the charity is exposed and have satisfied themselves that systems and procedures have been established to manage these risks.

The major risks affecting financial performance identified and managed during the year under review and up to the date of approval of the annual report and accounts are cost pressures due to the increase in inflation and general economic uncertainty whilst the transition to new standards for B Corps is implemented during 2025 and 2026. In addition, as the network of B Lab entities globally considers how it could be better organised to deliver its global mission, the Trustees are engaging with their counterparts to assess the potential risk to the effectiveness of B Lab (UK) in delivering its strategy and furthering its charitable objectives.

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B Lab (UK) For the Year Ended 31 December 2024

The Trustees confirm that there is an ongoing process for identifying, evaluating and managing risks faced by B Lab UK, including

significant risks and financial implications are considered as part of the decision-making process. the incorporation of key risks and mitigations into a risk map.
the operation of a budgeting system and the regular review of financial performance. regular reviews of key performance indicators.
establishing and reviewing policies and procedures including delegation of authorities.

The system of internal control is designed to manage risk and to provide reasonable assurance that key business objectives and expected outcomes will be achieved. It also exists to give reasonable assurance about the preparation and reliability of financial and operational information and the safeguarding of B Lab UK's assets and interests.

Review of Activities and Achievements

Activities

All the activities of B Lab (UK) support the above charitable objectives.

From time to time the Trustees of B Lab (UK) have formally reviewed the activities of B Lab (UK) and are of the view that any private benefit arising from the certification scheme could be considered as a means of furthering the objects and that any private benefit is necessary and incidental. The Trustees of B Lab (UK) will continue to keep this under review. We achieve our purpose to advance the education of the public in subjects relating to sustainable development and sustainable business through the following activities.

Hosting, contributing to and running workshops, round tables, seminars about B Corp methodology, the role of corporate governance and sustainable business. Through these, B Lab (UK) builds awareness and understanding of how businesses can solve environmental and social problems, creating opportunities for best practice creation and sharing. We produce accessible materials, such as best practice guides, relating to social and environmental problems that businesses tackle and how to participate in building a more sustainable and fairer economy. We also use our own data and evidence to show the extent to which B Corps are performing across key metrics compared to other benchmarks used in press releases and media articles.
Hosting regional and virtual activities to ensure our vision and community grows across the UK. We developed the B Leaders training programme, open to all interested parties, creating an "army of champions" who are trained to help leaders of businesses build their environmental and social impact into their core business planning, strategy, and measurement. B Leaders become advocates by hosting workshops and seminars in their own locations, educating business leaders and employees on how impact management across all activities fits with Sustainable Development Goals and other global initiatives.
Creating opportunities to enter the debate about the future of business in a world with critical resource issues and growing inequality. We have a very positive message to bring to the discussion about how businesses can be a positive contributor to society and our methodology provides colour and depth to the limitations of the indicator that is GDP; both companies and society increasingly are focusing on this broader measure of business activity. At B Lab, we are working with an ever-wider range of businesses and networks to share messages with the general public on businesses' role in creating a future within our means and that is focused on fairness and respect for people and the planet.

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B Lab (UK) For the Year Ended 31 December 2024

Identifying and then working with others to deliver our vision and practical approach to our target audiences. These include entrepreneurs, organisations, financiers and investors (institutional, angel, others), academics, students, public bodies, umbrella organisations, think and do tanks, research bodies, civil society and social enterprise networks, and the general public through our communications and awareness-raising activities.
Providing opportunities for the leaders of B Corps to inspire and advocate their ethos as a business to their customers, suppliers, communities, and the wider public. Their message explains from a first-hand perspective, the positive effect on people, communities, and the environment that they can touch through their operations.
Delivering a campaign, the Better Business Act, launched in March 2021 to implement changes to the Companies Act (section 172) which seeks to embed the commitment to running all businesses for the benefit of all, not just for shareholders. This activity is undertaken in the context of supporting the development and sustainable business by educating the public and policymakers about how purpose can be embedded in governance. The campaign is also focused on educating policymakers about how B Corps can be used as a model for change in governance policy. The trustees have considered Charity Commission guidance CC9 and consider the campaign to be an effective way of furthering or
Educating the public at large on the ability of businesses to pursue social and environmental-oriented goals by sharing best practices and practical experiences of trying to be better stewards of resources.

We also engage in activities to support any organisation interested in improving their positive impact with a comprehensive set of tools, masterclasses, peer support, and best practice exchange - all with the aim of spreading the word widely and embedding more deeply into organisations a sustainable approach to business. We achieve our purpose to promote sustainable development for the benefit of the public by undertaking the following.

Encourage wide use of the freely available B Impact assessment tool (BI) as a road map for creating positive impact within their organisations. Recording performance over time forms the basis of our evidence of impact both on the company and on individuals' lives, communities, and the environment over time; the standards used within the B Impact assessment tool for measuring and promoting various social impacts are directed towards our charitable purposes set out above.
Campaigning to implement changes to the Companies Act (section 172) which would embed the commitment to running businesses for the benefit of all, not just for shareholders. This activity is undertaken in the context of supporting the delivery of B Lab (UK)'s charitable purposes of promoting sustainable development because in order to create more sustainable companies, those companies need to minimise negative externalities. Having considered the Charity Commission guidance CC9, the trustees consider the campaign to be an effective way of furthering or supporting B Lab (UK)'s purposes of promoting sustainable development.
Identifying those businesses that are "best in class" in creating positive social and environmental impact. This has at least two effects: a) the certification as a B Corp enables the public to make informed choices on which businesses to support (as a customer, employee, or supplier) and b) it helps raise the standards for other businesses who see the competitive advantage and social benefit created through committing to run a business for broader stakeholder benefit.

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B Lab (UK) For the Year Ended 31 December 2024

Supporting all companies, charities and umbrella organisations, (not just those that will proceed towards certification), to measure their impact and, in so doing, to begin the journey towards maximising their material positive impact on the general public and the planet.
Expanding our case studies and examples of best practice from our community of UK B Corps as a beacon and inspiration for others to follow suit.
Providing a range of opportunities for the general public including individuals, businesses, students, and customers to meet the B Corps and hear the principles of their business values.

All our activities support our third charitable object, namely, to promote compliance with the law and ethical standards of conduct by maximising the material positive impact of business activities on people and the planet and minimising their negative activity. In particular, our campaign (Better Business Act) to implement changes to the Companies Act (section 172) which would embed the commitment to running all businesses for the benefit of all, not just for shareholders. This activity is undertaken in the context of supporting the conduct by creating the governance to enable our system to go beyond the minimum requirements and to form the most ethical governance for companies to operate and comply with the law.

Rationale

We aim to redefine success in business and to promote sustainable development widely across UK institutions and organisations. We seek to create a change in the way business operates for a greater good for all, rather than just the interests of shareholders, and in so doing, bring positive impact to citizens, to communities and to the environment.

This urgent need is clearly recognised now amongst a wider range of stakeholders but there are systems in place that make change hard. Our work offers an alternative way of doing business, by providing a clear road map for change (using the B Impact Assessment tool) so that trust in business can be rebuilt over time. We recognise that whilst there will always be leaders who will forge ahead with new approaches, it will take considerably longer for the systemic barriers to be lifted to achieve our end goal namely, for the broader is to maximize the material positive impact of business activities on the general public and the environment and minimize the negative effects.

One significant route for promoting sustainable development for the benefit of the public is through the evergrowing number of entrepreneurs and established businesses who certify their businesses as B Corps because they run their businesses according to the highest ethical standards of conduct. These businesses exemplify the material positive impact of B Corps, and help consumers, clients, and potential employees distinguish good practice from good marketing within a company. By maximising the material positive impact of business activities on people and the environment, this creates a momentum for lasting change in the way capitalism distributes its proceeds for the benefit of all.

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B Lab (UK) For the Year Ended 31 December 2024

Achievements and performance in 2024

By the end of 2024, the UK B Corp community had grown to 2,479 B Corps (1,819 at the end of 2023), representing 120 industries with a combined revenue of £26.8 billion and over 182,000 employees. Additionally, we have built an extensive pipeline of interested companies (over 41,778 companies) who are using the BIA and progressing towards certification and are therefore measuring and improving their social environmental performance. Whilst we realise that many of these companies in the pipeline will need considerable time and support to progress towards certification, their progress is an important indicator of the success of our work, and we include this as one of our Key Performance Indicators (see below).

We are grateful to have received a wide range of support, promotion, media coverage, personal recommendations, endorsements by companies, inquiries and feedback from academics, businesses, lawyers, and policymakers on our work. The leadership of B Lab UK is incredibly proud of the achievements of our passionate, talented and hard-working team in 2024. Excellent work has been delivered, and tangible progress toward our mission has been achieved.

Highlights of 2024:

a) 2024 has again been a year of significant growth, with the UK B Corp community increasing by 36% to 2,479 as a result of our work to inspire business to change.
b) educate diverse audiences on the achievements of the B Corp Community and the importance of the B Corp Movement to transform our economic system for the better. Over 80 events were organised by and for our community during B Corp Month, with over 75% held outside of London. There were also 78 collaborations between B Corps in the community, including beach and river cleans, and tree-planting initiatives.
c) There are now 2,758 businesses in the Better Business Act coalition (2,500 at the end of 2023), a growing number of pledges, and continued campaigning on our social media channels and in a bimonthly newsletter. The Better Business Act advocates for the UK government to implement changes to the Companies Act (section 172) which would embed the commitment to running all businesses for the benefit of all, not just for shareholders. In 2024 our campaign focused on the pitch for better business, engaging larger businesses in the need for change. This included the production of a series of short films from business leaders, culminating in a screening and discussion at the Barbican in May 2024 aimed at raising awareness of the need for businesses to back the campaign.
d) We continued to catalyse the B Corp community to continually improve their impact on people and the planet. In 2024, our primary mechanism for doing so was through the hosting of our first festival, Louder than Words, which aimed to engage and inspire action on critical issues within the B Corp community. This event was attended by over 1,500 participants from across business, policymaking, ethical consumer groups, students and like-minded global organisations. Around 60% per cent of the attendees came from the existing B Corp community. We curated over 100 sessions across two days focused on driving business action around the environment, stakeholder governance and fair work. A full impact report for the festival has been published online. Alongside this throughout the year we continued to convene 23 ongoing working groups engaged in best practice sharing and collaborative work towards environmental and social goals within their industries and communities.

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B Lab (UK) For the Year Ended 31 December 2024

a) In improving the diversity of ownership in the B Corp community we are working to increase the representation of female and People of Colour-owned businesses, through identifying and exploring relationships with membership organisations, and providing an equity discount to the first certification fee to eligible businesses. In 2024, we delivered several campaigns aimed at growing awareness of B Corp among women founders and People of Colour-owned businesses.
b) In growing the representation of B Corps across all UK regions, we ran events in Manchester and Wales for interested businesses and held discussions to better understand how we can support B Corps in the area to help us reach new businesses. Additionally, we worked closely with several larger businesses on their certifications to increase their impact and inspire other large companies.
c) We developed and launched our second training course on our training platform - an on-demand programme, featuring video content from members of the B Lab UK team as well as B Corp stories aimed at providing businesses with more in-depth knowledge of B Corp certification and how to use the B Impact tool to improve their companies social and environmental impact. The total users across both our courses exceed 7,000.
d) Our brand awareness continues to increase thanks to ongoing work with B Corps to build understanding across the UK through campaigns such as B Corp Month. Recognition of the B Corp logo has doubled over the past two years and overall recall in the UK of the logo and name grew from 38% to 51% between 2023 and 2024. [panel of 2,200 UK adults in November 2024, Fors Marsh]

Measurements of success in 2024

The following key performance indicators are used to assist us to monitor our progress toward achieving our objectives.

Key Performance Indicator	End of 2018	End of 2019	End of 2020	End of 2021	End of 2022	End of 2023	End of 2024
Number of B Corps certified in the UK	178	272	360	577	1,158	1,819	2,479
Number of organisations measuring their impact on people and the planet through B Impact tool	3,325	6,961	12,698	21,269	28,555	35,361	41,778
Number of companies signed up to B Lab UK led coalitions (Better Business Act)				>700	>2,000	2,200	2,758
Brand awareness			8%	Not measured	34%	38%	51%
National media mentions of our work							352

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For the Year Ended 31 December 2024

B Lab (UK)

Financial Review

For the year ended 31 December 2024 B Lab (UK) had a surplus of £1,202,861 (2023: surplus of £1,263,805). Funds of the charity on 31 December 2024 were £2,506,455 (2023: £1,303,594), all of which were unrestricted. These funds exclude income received in 2024 which has been deferred to 2025 of £4,784,395 (2023: £3,862,923 was deferred to 2024)

No grants, donations or gifts in kind were received in 2024 (2023: £750). Income earned from charitable activities increased by 51% to £9,818,978 from £6,499,289 (2023: 95%). All expenditure is related to charitable activities.

As a licensee of B Lab Company Inc (US), the non-profit making organisation supporting the global development of the B Corp movement, in 2024 royalty fees were paid at 8% of all non-philanthropic and unrestricted income generated by B Lab (UK). B Lab (UK) allows for exchange rate fluctuation in its budget.

Reserves policy

-based approach to reserves so that the Trustees intend to hold a level of reserves, when taking into account the level of the income deferred to the following year, sufficient to meet the estimated financial impact of significant risks and provide reasonable flexibility to enable B Lab (UK) to operate smoothly in the case of unforeseen circumstances. Therefore, the amount will vary each year in line with growth.

Based on the assessment in 2022, the Trustees aimed to maintain unrestricted, free reserves which represent between 3 and 5 months of operational costs in 2022.

The unrestricted free reserves on 31 December 2024 of £2,440,291 (2023: £1,268,770) meets the lower end of the planned policy range, representing 3.3 months of unrestricted expenditure in 2024. However, when added to the non-refundable income receipts deferred to 2025 of £4,784,395, the total unrestricted amount available was £7,224,686 (2023: £5,131,693) which represents 9.9 months of unrestricted expenditure (11.7 months in 2023). The Trustees consider this sufficient to provide the organisation with reasonable financial flexibility and stability and contribute to longer-term sustainability.

The Board reviews the level of reserves annually, considering the major risks, the level of expenditure and the deferred income not yet released, and may decide to adjust the target level to ensure that the unrestricted reserves kept are not insufficient or excessive.

Fundraising

No public fundraising activity was undertaken in 2024. No complaints about fundraising have been received.

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B Lab (UK) For the Year Ended 31 December 2024

Looking Forward: Plans for Future Period

In 2024, the Trustees approved a new 5- vision of an inclusive, equitable and regenerative economy for all people and our shared planet.

This 5-year strategy provides a set of Strategic Objectives that build towards a longer-term 10-year goal of UK businesses acting as a 'force for good' by default, operating for the benefit of all their stakeholders.

This strategy relies on the creation of credible models of a better way of doing business. We achieve this through the increasing number of Certified B Corporations, now present in every region of the UK. These businesses make commitments and act in a way that allows us to highlight them as models of a better way of doing business and influence others in their markets to follow suit

In order to reach our goal, our impact needs to go beyond that which we can achieve through the certification of individual businesses. To create lasting change at scale, we need to influence the broader system. We aim to achieve this through the cultural and the structural levers that have the potential to affect systemic change.

The ability to influence at this scale relies on B Lab (UK) developing a range of assets , such as organisational and individual capabilities and skills, data and insights, and credibility.

These three types of work: Models, Assets and Influence, provide the organising framework for our strategy and for the Objectives that will guide our work in the future.

We have three Strategic Objectives, one for each of these areas of work, and five Annual Objectives for 2025:

MODELS - We will build compelling and credible models that all businesses can adopt in order to establish the floor and raise the bar of good business, operating with Stakeholder Governance, offering Good Work and positively impacting Climate & Nature.
Annual Objective 1: Enable all B Corps and other system actors to participate in the delivery of our strategy.
Annual Objective 2: Develop the products and processes required to engage all businesses in the new standards.
ASSETS - We will develop B Lab (UK) into an outstanding and credible organisation for delivering economic systems change through our people, partnerships, and practices. Annual Objective 3:
become an outstanding and credible organisation to deliver our mission
INFLUENCE - We will catalyse changes to culture, secure legislation and improve regulation so we will work alongside B Corps and collaborate with like-minded allies. Annual Objective 4: Shift perceptions amongst specific audiences to set the foundations for culture change

Annual Objective 6: Use the assets and relationships we have through the Better Business Act and B

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B Lab (UK) For the Year Ended 31 December 2024

Alongside a range of planned activities and projects that contribute to these objectives, there are two major programmes that the organisation will be focused on delivering in 2025:

Organisational Transformation - following the development of the B Lab (UK) long-term strategy, we will be working to ensure that the organisation is equipped to deliver this strategy in the years to come. This involves two key elements:
Foundations - ensuring that the necessary organisational foundations are in place, including technology, policies, processes and practices that are appropriate for the scale of the organisation and the nature of our work (now and in the future).
Strategic Transformation - building on our strategy to make some key decisions about the future organisation, to then inform plans and strategies including people strategy and technology and data strategy.
New Standards Launch and Transition - the new B Corp standards will be launched in early 2025, and we will then enter a period of transition to the new standards. During this period we will be dedicating significant resources to supporting prospective B Corps and current B Corps with their adoption of the new standards and their certification/recertification.

All of the planned activities are consistent with and reinforce our charitable objects for the public benefit.

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B Lab (UK) Trustee Report For the Year Ended 31 December 2024

Financial Statements

The trustees (who are also directors of B Lab (UK) for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and regulations.

Company law requires the trustees to prepare financial statements for each financial year. Under that law the trustees must prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period.

In preparing these financial statements, the trustees are required to:

select suitable accounting policies and then apply them consistently.
observe the methods and principles in the Charities SORP.
make judgments and accounting estimates that are reasonable and prudent.
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements, and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The trustees are responsible for keeping adequate accounting records which are sufficient to show and position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The trustees confirm that so far as they are aware, there is no relevant audit information (as defined by section all steps that they ought to have taken as trustees in order to make themselves aware of any relevant audit

This report has been prepared in accordance with the special provisions relating to small companies within part 15 of the Companies Act 2006.

Approved by the Board on the 6th August 2025 and signed on their behalf by:

A Chugh Co-Chair of Trustees

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B Lab (UK) Independent Auditors' Report to the Members and Trustees For the Year Ended 31 December 2024

Opinion

December 2024 which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows and Notes to the Accounts including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

its incoming resources and application of resources, including its income and expenditure, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the entity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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B Lab (UK) Independent Auditors' Report to the Members and Trustees For the Year Ended 31 December 2024

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

law purposes, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we require for our audit; or
the trustees were not entitled to prepare the financial statements in accordance with the small report and from the requirement to prepare a strategic report.

Responsibilities of trustees

the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material

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B Lab (UK) Independent Auditors' Report to the Members and Trustees For the Year Ended 31 December 2024

misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions t concern. If we conclude that a material uncertainty exists, we are required to draw attention in our ements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

Our approach was as follows:

We obtained an understanding of the legal and regulatory requirements applicable to the charitable company and considered that the most significant are the Companies Act 2006, the Charities Act 2011, the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council, health and safety legislation, employment law and data protection.

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B Lab (UK) Independent Auditors' Report to the Members and Trustees For the Year Ended 31 December 2024

We obtained an understanding of how the charitable company complies with these requirements by discussions with management and those charged with governance.
We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
We inquired of management and those charged with governance as to any known instances of noncompliance or suspected non-compliance with laws and regulations.
Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the charitable company and charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

.............................................................. Jonathan Aikens (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP Chartered Accountants Statutory Auditor

6[th] Floor 9 Appold Street London EC2A 2AP

Date: .................................... 12 September 2025

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B Lab (UK)

Statement of Financial Activities (including an Income and Expenditure account) For the Year Ended 31 December 2024

The results for the year derive from continuing activities and there are no gains or losses other than those shown above.

The statement of financial activities incorporates the income and expenditure account.

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B Lab (UK) company number 09388752 Balance Sheet As at 31 December 2024

The notes on pages 21 to 31 form part of these accounts.

The Trustees acknowledge their responsibilities for complying with the requirements of the Companies Act 2006. Under Companies Act 2006, Section 454, on a voluntary basis, the Trustees can amend these financial statements if they subsequently prove to be defective.

The financial statements are prepared in accordance with the special provisions applicable to companies subject to the small companies regime.

Approved by the Trustees on the 6th August 2025 and signed on their behalf by:

.................................... A Chugh Trustee

L Harman Trustee

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B Lab (UK) Statement of Cashflows For the Year Ended 31 December 2024

Analysis of changes in net debt Cash at bank and in hand Loans falling due within 1 year Loans falling fur after more than 1 year	At 1 Jan 2024 £ 3,958,326 - - 3,958,326	Cash flows £ 1,678,649 - - 1,678,649	Non cash changes At 31 Dec 2024 £ £ 16,612 5,653,587 - - - - 16,612 5,653,587	Non cash changes At 31 Dec 2024 £ £ 16,612 5,653,587 - - - - 16,612 5,653,587
				5,653,587

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B Lab (UK) Notes to the Financial Statements For the Year Ended 31 December 2024

1 Accounting Policies

1.1 General information and basis of accounting

The financial statements have been prepared in £ sterling, rounded to the nearest £, on the historical cost basis and in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (2nd edition effective 1 January 2019) (Charities SORP (FRS 102)),the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The charity meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

1.2 Income

All income is included in the Statement of Financial Activities when the charity is entitled to the income, it is probable that the income will be received, any performance conditions attached to the items of income have been met and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income.

Customers are recertified every three years. In the year that they recertify, income is only recognised if the recertification is successful. Interim annual fees to retain certification (which do not require a certification test) are recognised according to the time period in which the customer has received benefit of certification, to the nearest month. Certification fee income is deferred if it relates to a time period after the year end.

Income from raising funds is recognised at the point of deliverance of the event.

Investment income is included when receivable.

Donated services are included within the accounts at fair value.

Income from grants and donations is recognised where the charity is entitled to the income, it is probable that the income will be received and the amount receivable can be quantified. Where there are specific terms or conditions attached to grants and donations, these must be met before the income is recognised. Where terms or conditions have not been met or uncertainty exists as to whether they can be met then the relevant income is not recognised in the year but is deferred and shown on the balance sheet as deferred income receivable.

1.3 Going Concern

The Financial Statements are prepared on the going concern basis. B Lab (UK) has reserves of £2,506,455 at 31 December 2024 (2023: £1,303,594) including net current assets of £2,440,291 (2023: £1,268,770) and cash at bank of £5,653,587 (2023: £3,958,326).

The Financial Statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the levels of reserves for the Charity to be able to continue as a going concern.

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B Lab (UK) Notes to the Financial Statements For the Year Ended 31 December 2024

1.4 Tangible fixed assets and depreciation

The cost or valuation of tangible fixed assets is their purchase cost or valuation, together with any incidental expenses of acquisition. Only tangible assets with a cost of over £500 will be capitalised.

Depreciation is calculated so as to write off the cost of tangible fixed assets, less their estimated residual values, on a straight-line basis over the expected useful economic lives of the assets concerned, as follows:

Computer Equipment - 4 years
- Furniture - 5 years
1.5

Intangible fixed assets and amortisation

The cost or valuation of intangible fixed assets is their purchase cost or valuation, together with any incidental expenses of acquisition.

Amortisation is calculated so as to write off the cost of intangible fixed assets, less their estimated residual values, on a straight-line basis over the expected useful economic lives of the assets concerned, as follows:

Accounting systems - 4 years

1.6 Donated services

In accordance with the Charities SORP (FRS 102), unpaid volunteer time is not recognised in the contribution.

1.7 Expenditure

Expenditure is recognised on an accruals basis as a liability is incurred.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services to its clients. Direct costs are allocated to such activities and those costs of an indirect nature necessary to support them are shown as contributions to core expenditure.

Other support costs and governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity. Salary costs are apportioned to governance costs depending on time spent by staff on governance matters.

1.8 Debtors

Accrued income comprises amounts due from funders and is recognised when the charity is entitled to the grant, receipt is probable, and the amount can be measured reliably. Prepayments are valued at the amount prepaid.

1.9 Cash at bank and in hand

Cash at bank and in hand comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

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B Lab (UK) Notes to the Financial Statements For the Year Ended 31 December 2024

1.10 Creditors

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are recognised at their settlement amount.

1.11 Taxation

The company is a registered charity and is therefore not liable to corporation tax to the extent that income and gains are applied to the charitable objectives of the charity.

1.12 Fund accounting

General funds are unrestricted funds receivable or generated for the objects of the charity without further specified purpose and are available as general funds.

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets this criterion is charged to the fund, together with a fair allocation of management and support costs.

1.13 VAT

Irrecoverable VAT is charged against the expenditure heading for which it was incurred.

1.14 Financial instruments

The charity only holds basic financial instruments as defined in FRS 102. The financial assets and liabilities of the charity and their measurements are as follows:

Financial instruments are initially measured at transaction value. They are assessed at the end of each report period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Financial Activities.

1.15 Legal status of the Charity

The Charity is a company limited by guarantee and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member.

1.16 Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the Financial Statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the period. The nature of estimation means the actual outcomes could differ from those estimates. There are no judgments made that have a significant effect on the amounts recognised in the financial statements.

1.17 Foreign exchange

Transactions in foreign currencies are translated at rates prevailing at the date of the transaction. Balances in foreign currency are translated at the rate of exchange prevailing at the year-end. All exchange differences are taken to the Statement of Financial Activities. The only foreign currencies the charity translated in are US dollars and Euros.

1.18 Realised gains and losses

All gains and losses are taken to the Statement of Financial Activities as they arise. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value.

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B Lab (UK) Notes to the Financial Statements For the Year Ended 31 December 2024

1 Income

Unre- stricted funds £ -	Restricted funds £ -	Total 2024 £ -	Unre- stricted funds £ 750	Restricted funds £ -	Total 2023 £ 750
- 9,525,832 293,146	-	-	750	-	750
	- -	9,525,832 293,146	6,499,289 -	- -	6,499,289 -
9,818,978 75,270 17,380	-	9,818,978	6,499,289	-	6,499,289
	- -	75,270 17,380	7,000 -	- -	7,000 -
92,650 36,822	-	92,650	7,000	-	7,000
	-	36,822	21,132	-	21,132
36,822	-	36,822	21,132	-	21,132

9,948,450	-	9,948,450	6,528,171	-	6,528,171

Where income is received in advance, for a specified period, these funds are deferred and recognised in the period to which they relate.

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B Lab (UK) Notes to the Financial Statements For the Year Ended 31 December 2024

2 Charitable expenditure

B Lab Company Inc, a US company, charges B Lab (UK) a royalty fee on income from UK certification fees and earned income and also recharges the costs of some global software licenses and similar costs. The B Lab companies are linked by their contractual commitments to B Lab Company Inc but are not legally associated with one another.

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B Lab (UK) Notes to the Financial Statements For the Year Ended 31 December 2024

Audit fees for 2024 were £14,350 + VAT (2023: £11,030+VAT). No amounts were paid to the auditors for other services in 2024 or 2023.

Salary costs are allocated in note 3 as follows:

4 Employees and employment costs

No remuneration was paid to any Trustees during the year. Expenses totalling £3,629 were reimbursed to 5 trustees during the year (2023: 3 trustees £2,640).

Wages and salaries include termination costs, including payment in lieu of notice of £16,600 (2023: £nil). The average monthly head count was 39 staff (2023: 33).

The key management personnel of the charity are the Chief Executive Officer, the Director of Finance and Operations, The Director of Growth and Product, the Director of Impact and the Director of Marketing and Communications. The total costs to the charity of employee benefits for the key management personnel were £524,967 (2023: £451,795).

Number of employees whose annual emoluments came within the following ranges:

	Number of employees	Number of employees
	2024	2023
£ 60,000 - £ 69,999	-	1
£ 70,000 - £ 79,999	1	2
£ 80,000 - £ 89,999	3	-
£100,000 - £109,999	-	1
£110,000 - £119,999	1	-

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B Lab (UK) Notes to the Financial Statements For the Year Ended 31 December 2024

5 Tangible fixed assets

Cost As at 01 January 2024 Additions Disposals As at 31 December 2024 Depreciation As at 01 January 2024 Charge for year Elimination on disposal As at 31 December 2024 Net book value As at 31 December 2024 As at 31 December 2023	Computer equipment £ 39,388 8,362 (1,480) 46,270 10,467 10,268 (535) 20,200 26,070 28,921	Furniture £ 9,323 11,238 - 20,561 3,420 3,903 - 7,323 13,238 5,903	Total £ 48,711 19,600 (1,480)
			66,831
			13,887 14,171 (535)
			27,523
			39,308
			34,824

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B Lab (UK) Notes to the Financial Statements For the Year Ended 31 December 2024

6 Intangible fixed assets

7 Debtors

Page 28

B Lab (UK) Notes to the Financial Statements For the Year Ended 31 December 2024

8 Creditors: Amounts falling due within one year

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B Lab (UK) Notes to the Financial Statements For the Year Ended 31 December 2024

9 Statement of funds

Statement of funds prior year

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B Lab (UK) Notes to the Financial Statements For the Year Ended 31 December 2024

10 Analysis of net assets between funds

11 Related parties

5 trustees are employed by companies that pay the normal membership fee to be part of the certification scheme (2023: 5)

Louise Harman, trustee, is a partner in the firm Bates Wells LLP, who provided legal advice for B Lab (UK) for £14,056 (2023: £nil). This work was carried out by a different team and supervised by a different partner.

No trustees made donations during the year (2023: Nil).

12 Fundraising

B Lab (UK) undertakes no public fundraising activities. All fundraising activity is undertaken internally and is aimed at funding specific projects. No complaints about fundraising have been received.

13 Other financial commitments

As at 31 December 2024 the Charity has no significant spending commitments (2023: £814,385 on the Louder than Words event held in September 2024).

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