B Corporations

Certified B Corps B is for Benefit Redefining success in business Certified by B Lab to meet rigorous standards of social and environmental: Performance Accountability Ethics To sustainable business what LEED certification is to green buildings Link to B Corp Video B Corps are redefining success in business- it certifies that businesses define success not just by how much money we make, but by our impact on our community and environment We recognize that business has immense power, and B Corps are seeking to use this power to solve social and environmental problems B Corp certification is to sustainable business what LEED certification is to green building. B Lab is like the US Green Building Council, who certifies LEED buildings

Registered Benefit Corporations A new corporate form: The Benefit Corporation Legal status administered by states Similar to LLC, Corporation, etc Purpose to create a public benefit Protects mission, allows freedom to make decisions in the best interest of society, rather than just shareholders Benefit corporations operate the same as traditional corporations but with higher standards of corporate purpose, accountability, and transparency. Benefit corporations give leaders legal protection to pursue a higher purpose than profit, and offer the public greater transparency to protect against pretenders. Required to publish an annual report of some kind, but not to be audited. As a certified B Corp, we had to amend our operating agreement to state that we would take into account the interests of ALL stakeholders, not just shareholders, when making decisions.

This is a map where Registered Benefit Corporations are allowed This is a map where Registered Benefit Corporations are allowed. Now 34 laws passed.

Why Do B Corps Matter? Any for profit business can be certified Legally required to consider how our decisions impact all stakeholders Officers have legal protection to consider the interests of all stakeholders Setting a higher standard for good business Provides metrics 3rd Party verification B Corps represent a better way to do business All Stakeholders- our employees, community, the environment Amended our Operating Agreement to reflect this- helps us to protect our mission Setting a higher standard for business- seeking to be an example of a new way to run a business.

How Do B Corps Compare? Strong results, even when compared to sustainable businesses Focus on more than just profits

Who Are Other B Corps? Over 2,400 companies in 50 countries and 130 industries Microgrid was the third Certified B Corp in Missouri and the first in St. Louis Ben and Jerry’s, Patagonia, Seventh Generation, Solmetric (we use the Sun Eye) Side Note: In MO, other two B Corps are Big Vision Media Group and Arnold Development Group (mixed income real estate), both in Kansas City

Steps to Certification Take the B Impact Assessment Must earn 80/200 points Amend your governing documents Protects your mission Sign the Declaration of Interdependence Two year term - Must score 80/200 to be certified - Microgrid amended it’s operating agreement to state that major decisions must take into account ALL stakeholders. Helps to protect our mission. - 2 year terms, then can recertify. Fees based on tiered structure. 10% of B Corps are audited in person every year.

Why Did We Do This? Commitment to the Triple Bottom Line Framework to measure our success against Third party verification Attract Talent Forward thinking This certification strengthens and puts metrics to our commitment to the Triple Bottom Line, helps us to continually improve. -We are using this as a baseline- it tells us where we are and where we can improve. Our goal is to start here and go above and beyond in all categories -Third Party Verification: Just as buildings are LEED certified, we are a certified B Corp -Differentiator -Forward thinking: We want to stay ahead of the curve, and this is where we see business going B Corps are important because they inspire all businesses to compete not only to the best in the world, but the best for the world.

How Do We Compare? 80/200 points required to achieve certification B Corp Average: 97 points Microgrid: 106 points Goal: Continual Improvement

Going Beyond B Corp Committees – Microgrid has a 3BL Steering Committee responsible for maintaining a focus on each bottom line Provides employee engagement Results in more buy in Inclusion Challenge – Opt-in program for Certified B Corps to encourage improvement in Diversity and Inclusion Metrics The Right Thing to Do – We want to live out these values whether or not we are Certified

Director, Internal Operations Questions? Chad Schubert Director, Internal Operations 314-203-0345 cschubert@microgridenergy.com Resources: www.bcorporation.net www.bthechange.com www.microgridenergy.com