B Corp, McCain, IKEA, Wild & Wonderfuel

Soap company calls on B Corp to clean up their act?

By now you are probably used to companies dropping sustainability commitments they claim they can’t meet, but what about companies dropping sustainability certifications for not being ambitious enough??

Dr. Bronner's , North America’s top-selling fair trade soap brand and B Corp ’s highest scorer globally, has recently announced it is dropping its B Corp certification without plans to renew. The soap company claims B Corp no longer upholds the rigorous standards needed to drive systemic change. They argue that the inclusion of large multinationals with poor ecological and labour records, lack of a credible eco-social supply chain certification and hesitancy to take stronger stances on issues such as regenerative agriculture and corporate accountability have weakened B Corps integrity and could allow for green washing.?

By withdrawing, has Dr. Bronner lost its influence over one of the most recognised responsible business certifications? If their withdrawal had blindsided B Lab (the organisation behind B Corp), then yes, maybe. However, alongside other concerned B Corps, Dr Bronner issued an open letter in June 2022 and sent a private letter in January 2023, warning of withdrawal if the standards were not revised by 2024. After two and a half years of delay? while B Lab has consulted (admittedly widely and comprehensively) on new and more robust standards, the public departure of B Corps’ star player – and the potential for others to follow – might be Dr Bronner’s best shot at pushing for reform. This is a clear example of how engagement with clear consequences of inaction can be used to drive change, be it with a supplier, certification body or investee company.??

When the chips are down?

Half of UK farmers have considered whether to continue farming, reflecting pressures such as rising energy and fertiliser costs, and environmental threats.??

These were the takeaways from McCain’s survey of arable farming decision makers, which paints a troubled picture with farmers struggling with financial and mental health challenges.? As the largest purchaser of the UK potato crop, McCain Foods (a Good Business friend and client) is committed to regenerative financing partnerships, funding solutions in regenerative practices, equipment and technology to alleviate pressures and support the future of sustainable farming. This financing is part of McCain’s global Regenerative Agriculture Framework.?

In response to the survey results, McCain has launched an ongoing package to support UK farmers, with a ￡30 million investment over the next three years to provide direct cash injections for irrigation and storage infrastructure, set up advance payments to help cash flow and adjust the price per tonne paid for potatoes to reflect the risk of yield variation.??

This investment reflects some much-needed systemic thinking. While McCain can’t single handedly solve all the problems facing farmers, (for instance, concerns over the impact of agricultural property relief), investment in a resilient agricultural system improves food security and addresses food inflation.? With over two-thirds of farmers reporting that climate change has made arable farming less viable, initiatives that strengthen and safeguard agriculture as it attempts to mitigate and adapt to the impacts of climate change are welcome.??

Don’t do it yourself???

Flat-pack furniture isn’t the only thing 宜家 figured out how to scale. It has baked sustainability into its business model to drive growth, reduce costs, and keep eco-friendly choices affordable. And by the numbers, it’s working.??

Since 2016, IKEA has cut its carbon footprint by 30% while increasing revenue by 23.7% - a riposte to those who see growth and carbon reduction as incompatible. Nearly 97% of electricity across 28 countries is from renewable sources, and over 40% of city-centre deliveries are zero-emission. It has invested €0.7bn in renewable energy and €2.1bn to lower prices, making mass-market sustainability a core part of its operations.???

This isn’t virtue-signalling though; it’s smart business. Rather than asking customers to pay more when they make sustainable choices, IKEA is making sustainability the default. Lighter, smarter designs reduce material use and emissions, while circular services are quickly scaling up. In FY24, IKEA bought back nearly 500,000 used products and the ‘As-Is’ areas in 365 stores now resell discounted second-hand furniture.?

But IKEA is hitting limits. With no local production in the US (its second-largest market), rising trade tensions and potential tariffs could challenge its affordability model. And while IKEA has made impressive progress, it can’t do it alone. The company is pushing for stronger regulations, pointing to wins like the Netherlands' mattress incineration ban, which kickstarted a recycling boom.?

Jesper Brodin , CEO of Ingka Group (which runs 90% of IKEA stores), is clear: the next phase of sustainability isn’t just about what IKEA can do, but what governments, consumers, and supply chains must do together. IKEA has proven sustainability can be profitable. But if the system doesn’t catch up, mass-market sustainability may face its biggest challenge yet.?

Wild success?

This week, 联合利华 confirmed that it is close to finalising its ￡230 million acquisition of Wild. The purchase is a major step for Wild , which began only six years ago, when its founders set out to create a completely biodegradable deodorant bar, packaged in an aluminium, refillable container. Their product, which paired quality with natural ingredients and a premium aesthetic, found success very quickly; by 2021, Wild was the number one natural deodorant in the UK, and by 2023, sales increased by 77% from the year before. They have expanded to produce lip balms and body-washes and have gathered a pack of loyal consumers.?

Broken down, their rise to success makes a lot of sense, as does Unilever’s desire to be a part of it. The multinational, who owns Sure, Dove and Lynx, already controls over half of the UK deodorant market, but the acquisition of Wild reflects their shift to revamp their personal-care market, and refocus the spotlight on sustainability, taking learnings from Wild along the way and integrate into its broader business.?

The merger will no doubt make Wild’s sustainable products more mainstream, available and profitable, but the question will be whether they’re able to retain their transparent business practice and sustainable ethos in the hands of a giant multinational, and whether they can create change within Unilever. While Ben & Jerry's has been able to continue its activist agenda within the Unilever family, other similar transactions have had a less than happy ending, attracting criticisms of selling out (see 欧莱雅 ’s purchase of The Body Shop) or with the parent company walking away from its investment (for example, The 可口可乐公司 ’s purchase of Honest Tea). Only time will tell how this will play out, but Wild’s trajectory reflects that there is plenty of room and appetite for sustainable businesses, they just need to make themselves seen (and smelled).???

From waste to wonder?

When we come across a product we find inspiring, we like to share it with you. Treasure Gardening 's launch of Wonderfuel is a shining example of how sustainable business models can tackle multiple environmental challenges while delivering top- notch products, and it’s coming soon to a garden centre near you.?

This innovative peat-free compost not only helps reduce carbon emissions by protecting vital peatlands, but also transforms waste materials from various industries. Traditional peat compost, while historically favoured for its moisture retention and nutrient-holding capabilities, comes with significant environmental drawbacks. The extraction of peat damages delicate ecosystems and releases substantial amounts of CO2 into the atmosphere, contributing to climate change. Damaged peatlands are responsible for nearly 5% of human-made greenhouse gas emissions, highlighting the urgent need for alternatives.?

By using by-products like wood fibre from furniture off-cuts, composted bark sourced from the UK forestry industry, coconut coir and green compost, Wonderfuel embodies the principles of a circular economy, seeing potential and value in materials others might discard.?

Wonderfuel doesn’t just tick the sustainability box; the formulation has out-performed both traditional peat-based and peat-free alternatives in rigorous laboratory tests and growing trials. Founded by environmental entrepreneur (and friend of Good Business) Trewin Restorick and horticultural expert Simon Blackhurst and funded by the Esmée Fairbairn Foundation , the company aims to transform the horticultural industry by turning ‘waste into wonder’.??

Future plans include exploring new ways to integrate UK-based waste by-products into new formulations, such as waste hops from breweries, dog hair and sheep wool. And we are excited to see what creative solution they will come up with next!??