How Kuflink aced the B Corp test
Earlier this year, Kuflink joined an exclusive group of companies that are leading the world in terms of environmental, social and corporate governance (ESG).
196,000 companies from across the world have applied for B Corp status, but the full B Corp certification has been awarded to just 6,658 companies – that’s a success rate of just 3.4 per cent.
Yet Kuflink not only passed the certification test, it exceeded every parameter set by the B Lab.
Based on the B Impact assessment, Kuflink earned an overall score of 90.6. The median score for ordinary businesses who complete the assessment is currently 50.9. A score of 80 qualifies for B Corp certification.
For Kuflink’s chief operating officer Paul Auger (pictured), this result is a testament to the peer-to-peer lending platform’s long-running commitment to ESG at every level of the business.
“Achieving B Corp status is important to Kuflink Group’s commitment to social and environmental responsibility,” says Auger.
“Kuflink Group is taking steps to impact society and the environment and generate financial returns positively. Kuflink Group’s plans involve continuing to prioritise ESG principles and integrate them into our business model further.”
ESG metrics are becoming increasingly important to retail and institutional investors, and B Corp status is a quick and easy way to assess a company’s ESG status. B Corp certification is a long process which tests companies on their ability to demonstrate high social and environmental performance, and pass a risk review. Companies must make a legal commitment to their corporate governance structure to be accountable to all stakeholders, not just shareholders. They must also exhibit transparency by publicly sharing information about their performance.
By the time Kuflink began its B Corp application process in January 2022, the company was already well on its way towards meeting these standards.
“Kuflink Group’s commitment to social and environmental responsibility goes beyond meeting the minimum B Corp certification standards,” explains Auger.
“For example, we established multiple committees in 2018 and 2019 (prior to our B Corp application) to strengthen our governance.
“Furthermore, our chief executive was happy to show profit/loss monthly management figures, audited accounts, and other financials on our ESG page to benefit our stakeholders, including our investors, staff, partners and shareholders.”
Just a handful of P2P lending and crowdfunding platforms have received B Corp certification, but Auger believes that the P2P business model should be a natural fit for the B Corp scheme.
“P2P platforms are well-suited to the ESG investment market because they provide an alternative source of financing that aligns with ESG principles,” he says.
“P2P lending allows investors to support companies that are committed to creating a positive impact on society and the environment while also generating financial returns.”
Since obtaining B Corp status in April, Kuflink has seen an influx of new investors who are keen to add an ESG tilt to their portfolios. But the platform is not resting on its laurels just yet.
“Kuflink Group is committed to continuing to prioritise ESG principles, and we plan to build on our current initiatives to create an even greater positive impact on society, the environment,” explains Auger.
“Every day there is always something new. We are especially proud of how the team participated in this process, from sharing experiences of taking in Ukraine families to buying environmentally-friendly products for company use.”
This commitment to always do better and prioritise people over everything helped Kuflink to ace its B Corp test, and will ensure that the company remains on the radar of all ESG-focused investors for a long time to come.
