How does GIIRS rate companies?
GIIRS is powered by the B Impact Ratings System. The B Impact Ratings System, the central governance tool of B Lab, is an assessment tool that measures companies' and funds' social and environmental performance in the impact areas of accountability, employees, community, environment, and consumers.
The B Impact Ratings System is entrepreneur-focused: it is designed to be easy to complete for the entrepreneur, while still being rigorous in its approach. The B Impact Ratings System is:
- Easy to use — designed for small to mid-sized enterprises;
- Dynamic — new version developed every two years;
- Independently governed;
- Comparable across company geography, size, and industry; and
- Comprised of approximately 160 questions divided into five categories: Accountability, Employees, Environment, Community, and Consumers. These five categories are then subdivided into goals and into individual questions.
To date over 4,000 companies have used the B Impact Ratings System to assess, benchmark, and improve their social and environmental performance. GIIRS has an exclusive license for use of the B Impact Ratings System as an investor tool.
For a company to receive a GIIRS rating, a company will
- Visit the GIIRS.org website;
- Create a Company Profile
- Complete a GIIRS assessment, which is tailored to its sector, size, and geography. The assessment will take the entrepreneur approximately 60-120 minutes to complete;
- The company then will be asked to submit back-up documentation on material questions within the rating system. This documentation is reviewed by a third party to ensure compliance with the standards for the rating system;
- Next the company will be asked to have an assessment review with a GIIRS staff member to review the company's answers and documentation; and finally
- Each company is subject to a 10% chance of being selected for a full, onsite-audit. Companies which are audited are asked to provide documentation or verification for all the questions in the rating system for which they have received points. (Investors or companies may also elect to pay for a full, onsite-audit for companies that have not been selected for a random audit to the extent they want this additional level of third party assurance).
For a fund to receive a GIIRS rating, a company will:
- Visit the GIIRS.org website;
- Create a Fund Manager Profile
- Complete a GIIRS assessment, which asks the fund manager to provide basic information about its fund's investments (companies invested in, investment size, etc.)
- In order to receive a GIIRS fund rating, each company in a fund's portfolio must already have or complete a GIIRS Company Rating. If a fund has not made an investment, it can apply for a Target Rating (Hyperlink to fund page)
- Once the fund has completed a GIIRS assessment and all of the companies in its portfolio have received a GIIRS rating, a fund must have an assessment review with a GIIRS staff member and submit documentation regarding their investments.