Redsquid is aiming to create a common ESG purpose across the UK channel following its certification as a B Corporation.
This achievement marks not only Redsquid's commitment to social and environmental responsibility but also its wider goal to help more channel businesses repurpose their strategy as a force for good, says Camilla Karm, Director of Sales & Marketing, who champions and leads the Herts-based MSP’s B Corp agenda.
With a clear view of Redsquid’s purpose and values, and a strong personal interest in ESG, Karm wasted little time in coordinating Redsquid’s carbon neutral journey and subsequent B Corp certification process, liaising with B Lab (the non-profit organisation that certifies B Corps). Here, she shares insights into how Redsquid developed its B Corp strategy, how the movement is likely to evolve in the channel, and how the MSP’s experience can help like-minded channel firms become part of what is shaping up to be a thriving inter-channel community of agenda setting organisations...
What does being a B Corp say about Redsquid as an organisation?
B Corp certification shows that Redsquid cares about more than just profit. We care about our people, our planet and our purpose. We want to use our business as a force for good and create positive change in the world. Being a B Corp will also help us to attract and retain the best talent, win more customers who share our values, and improve our reputation and credibility in the market. We wanted to join a global network of like-minded businesses that are leading the way in sustainability and social responsibility. Our industry has too often been overlooked when the conversation falls on environmental accountability, but it is imperative that the channel comes together and embraces the responsibility we have towards becoming more sustainable.
When did you decide to become certified as a B Corp?
For eight years we have been heavily invested in charity fundraising and working closely with charitable organisations in our community. Five years ago we formed an official charity committee to drive our efforts. At the same time we wanted to expand into the environmental side and became carbon neutral in 2020, and continue to reduce our emissions on a yearly basis. But we wanted to do more, have a bigger impact, lead the industry and make sure our purpose is in line with profits. Then our eyes fell on the B Corp movement which has values that resonate with our own, and we have been working on achieving the certification during the last few years.
What did B Corp accreditation require?
We already had a lot of practices and policies in place that aligned with the B Corp standards, such as our environmental management system, employee engagement programme and community involvement. We also saw an opportunity to improve our performance and impact in other areas such as governance, diversity and local impact. To become a certified B Corp, Redsquid went through a thorough evaluation process to ensure we meet high standards of social and environmental performance, transparency and accountability. The accreditation is built on a points system (with a minimum of 80 points out of 200 to qualify as a B Corp) across five impact areas to become certified – governance, workers, community, environment and customers. Before we started making real changes we happily saw we already had a score of 57.5 which gave us a good starting point. Having gone through the process we are proud to say we ended on 93.6 points in total for our first certification.
How long did it take to prepare for B Corp certification?
It took us about two years to prepare, from the time we started the online questionnaire to the time we received the certification. We involved our key stakeholders, such as employees, customers and suppliers in the process. And did not use an external sustainability consultant as we felt that we had enough internal expertise and resources to complete the assessment. However, we did use the online tools and resources provided by B Lab and other B Corps to help us prepare and improve our score.
The preparations involved collecting and analysing various data and documents, such as our financial statements, our employee surveys, our customer testimonials, our supplier contracts, our environmental reports, and our social impact reports. We also had to write and update some policies and procedures, such as our code of ethics, our diversity and inclusion policy, and our stakeholder engagement policy. We worked out where we are and where we wanted to improve, not by comparing our score with the average score of our industry and size, but by setting a new standard of what an MSP can be.
How is the B Corp assessment evaluated?
Following the assessment, you go through the evaluation queue where B Lab UK conducts an initial ‘health check’ of the B Impact Assessment. This includes uploading company information, P&L statements and amending legal documents on Companies House. Throughout this process the B Corp analyst verified Redsquid’s structure, eligibility and impact models. Next is the verification stage where you have to submit documentation for all claims you have given throughout the process. B Lab Global will then independently assess practices, policies and general behaviour.
How challenging was the process of submitting for B Corp?
The process was challenging but rewarding. It required a lot of time and effort to gather the evidence and data needed to support our answers, and to verify and validate our claims. It also required a lot of honesty and transparency as we had to acknowledge our strengths and weaknesses, and identify areas for improvement. It was not a tick-box exercise, but a rigorous and holistic evaluation of our impact and performance. It was also a great learning opportunity as we discovered new ways of doing business better, and new best practices and benchmarks to follow. We were very aware that we wanted the whole process to be done right – not just as fast as possible. Therefore amendments have been made in line with our stakeholders and aligned with budget to ensure long-term sustainability of the initiatives we have introduced. We now have a set line for ESG development as a part of our yearly budgets.
What did you learn that was most valuable?
That being a B Corp is not a destination, but a journey. It is not a one-off certification, but a continuous improvement process. It is not a static standard, but a dynamic and evolving one. We learned that we need to keep measuring and monitoring our impact and performance and keep setting and achieving new goals and targets. We learned that we need to keep engaging and communicating with our stakeholders and keep listening and responding to their needs and expectations. We learned that we need to keep innovating and collaborating with other B Corps and keep learning and sharing best practices.
To what extent is becoming a B Corp a moral imperative?
Becoming a B Corp, or following similar ESG practices, is a moral imperative for any business that wants to strive and thrive in the 21st century. The world is facing unprecedented social and environmental challenges, such as climate change, inequality, poverty and human rights violations. These challenges pose significant risks and opportunities for businesses and require a new way of thinking and acting. With 85 per cent of GHG emissions coming from UK businesses, organisations can no longer afford to ignore or externalise their impact on society and nature but need to embrace and internalise it. Businesses can no longer focus only on maximising shareholder value, they need to balance it with stakeholder value. Differentiation can’t continue to be just about price, quality and specialism, but also about purpose and impact.
Do you foresee the rise of a B Corp community in the channel that will prefer to work only with like-minded businesses?
We do expect the emergence of a B Corp community in the channel – we’re already part
of it and proud to see that other partners and channel businesses are following the same path. B Corp status will have an impact on our relationships as we will measure and evaluate the partners we work with based on their practices. We are keen to work with more B Corps and this will be a key part of future decision making. By working together we can create a more sustainable and responsible channel ecosystem that benefits not only ourselves, but also our customers, suppliers, employees and our communities.
Have you seen evidence of customers wanting to work with B Corps only, or other proven sustainable businesses?
Sustainability is taking up a bigger part of the conversations we have with customers and prospects. We already have a number of customers who have been B Corps for a while and we are looking forward to becoming a part of their growing communities and see how we can make an even bigger difference for them. We have also seen organisations wanting to work with B Corps, or proven sustainable businesses, in the private sector where ESG is increasingly becoming a source of competitive advantage and customer loyalty. This is now a core part of the majority of the tenders we go through. Since becoming carbon neutral we have embarked on new conversations with our customers and have some of them starting their own journeys towards becoming more sustainable.
Ultimately, what will drive the future of ethical business in the channel?
Three main factors – customer demand, employee engagement and regulatory pressure. Customers will demand more transparency and accountability from their suppliers and will prefer to work with businesses that align with their values and goals. Employees will seek more meaning and fulfilment from their work, and will choose to work for businesses that respect and empower them. Regulators will enforce more stringent and comprehensive standards and laws, and will penalise businesses that fail to comply or perform. To do better at CSR, the ICT industry and channel needs to adopt a more proactive and strategic approach, and integrate CSR into its core business strategy and operations ending in clear and ambitious ESG targets. The industry also needs to collaborate with other stakeholders and leverage its technology and innovation to address ESG challenges.
What advice do you give to MSPs looking to achieve B Corp status?
Go for it. It is a worthwhile and rewarding journey that will help you understand your business and its purpose better than ever before, while improving your organisation and your impact. Complete the initial B Corp assessment, set targets for improvement and identify areas that resonate with you most. You don’t need to be perfect, but you do need to be ambitious and committed.
Most organisations will have a star player with a personal ambition to become greener and tonnes of goods ideas on where and how to start. Also, fully engage and involve your stakeholders and reach out to other companies that have been through the process. We are more than happy to share our knowledge, where the quick wins are and where you need to delegate a budget. By coming together we can all make a difference, and we hope 2024 will be the year where we can take the conversation to the next level and show how innovative our industry can really be.