As we celebrate Earth Day today, award-winning Financial Planning firm, Paradigm Norton, has been telling us how and why they believe that being a B Corp has been good for their business as well the wider impact the certification means for boosting social and environmental well being too.
Being a B Corp and putting purpose before profit is something the team at financial planning company, Paradigm Norton, is passionate about. There’s no doubt that the journey to certification is a big undertaking, but it can have a positive and far-reaching impact. Paradigm Norton is boldly redefining the financial planning landscape, championing others in the sector to do the same, and proactively spreading the B Corp message.
What is a B Corp?
Certified B Corporations, or B Corps, are companies verified by B Lab to meet high standards of social and environmental performance, transparency, and accountability.
Why B Corp?
Becoming a B Corp means constantly looking at your business through a different lens. Last year, Paradigm Norton undertook B Corp recertification and achieved a new score of 148 – a 62-point jump from 2019. This is a huge leap; three times the recommended improvement for recertification. Key to this accomplishment has been a focus on nurturing a supportive culture as an employee-owned business. It’s also involved making responsible investing the default, minimising environmental impact, and redefining what client service excellence means.
While the company celebrates this achievement, CEO, Barry Horner says it’s not just about getting the B Corp badge, “For us, it’s all about our ongoing commitment to doing business better, by doing what’s right. We worked on the assumption that if we did what we believed to be important, the assessment and score would reflect that.”
Here’s why Paradigm Norton argues that “doing what’s right” is both important and beneficial for companies across the financial profession:
- It benefits clients. People are becoming increasingly conscious about the companies they trust with their money. More than 60% base purchasing behaviours on sustainability and ethical criteria, and this is growing by 10% each year.[1] They’re also more conscious of their carbon footprint, with growing awareness around the wider impact of their investment portfolio and how it can indirectly support significant carbon emissions. Research suggests that the UK pensions industry indirectly finances more CO2 than all UK carbon emissions.[2] It’s important to understand that people are becoming more vigilant about incorrect or misleading ESG claims. The more IFAs and wealth managers that seek B Corp certification, the more intentional they’ll be about responsible investing and meeting client needs. At Paradigm Norton, it’s now the default for clients to invest in portfolios that are subject to environmental, social and governance screening; there’s also a keen focus on choosing fund managers who engage robustly with companies on behalf of clients.
- It benefits employees. Being a B Corp means you naturally focus on what it means to be a great employer and shine a light on making the employee experience rich and nurturing – something that the whole industry can benefit from. One of the biggest improvements in the B Corp score for Paradigm Norton was in the ‘workers’ category, with changes implemented organically in the way it treats employee partners. Key drivers behind this momentum have been more inclusive practices, a review of hybrid working, excellent internal communication, improving engagement and providing opportunities to flourish. All of this is a great way to build a positive, diverse culture and improve talent retention rates.
- It benefits the environment. Working with clients who are conscious of their carbon footprint, other B Corps and suppliers who align with the same ESG values all plays a vital part in ensuring the industry protects the environment and the communities it serves. Steve Watters, Head of Impact at Paradigm Norton regularly engages with industry professionals to discuss the importance of fund manager engagement and spread the B Corp message. He’s spoken to fellow B Corp pioneers and talked about Paradigm Norton’s passion for raising the bar for ethical and sustainable business practices, most recently in March at Purpose Fest as part of B Corp Month. The more focus there is among IFAs and wealth managers on being a force for good, the better. Becoming a B Corp also gives you access to a global network looking to grow, engage, and mobilise communities, to ultimately prioritise people and the planet.
Spread the word, expand the impact
Paradigm Norton is keen to encourage others in the industry to investigate the benefits of becoming a B Corp. As Barry says, “It’s refreshing to see several of the companies in the venture capital space become B Corps – including MMC Ventures, Octopus Group and Triple Point. But there’s still work to be done.”
The company is actively supporting other financial companies in their B Corp journey so that they too can benefit from engaged and motivated employees, customer loyalty, higher levels of innovation, and market leadership. If you would like to know more, please get in touch with The B Lab Global Network
[1] https://www.pwc.com/kz/en/publications/new_publication_assets/esg-trends-in-2023-eng.pdf
[2] https://makemymoneymatter.co.uk/wp-content/uploads/2021/10/UK-Pension-Industry-Carbon-Emissions-Analysis.pdf
