Why Certification Makes a Difference

Certifications in non-financial areas can verify and measure what is being done, fostering communication and transparency. This looks different in different markets, with different concerns taking precedence. Prime Solutions in Panama and Albert Goodman in the UK have taken steps to address these challenges.

In the UK, after great public scrutiny of business practice, companies of many sorts were keen to demonstrate what they were doing to make their actions more sustainable. This led to claims being made and targets being set that were never realistic, and as such were hidden behind opaque disclosures or misleading statements. As such, verifying the sustainability of corporate direction has become crucial.

In Panama, investor confidence had been shaken by the “Panama Papers” case making global news, thereby unfairly implying that the territory was a haven for money laundering and unscrupulous accounting. As a result, the country now has some of the strictest accounting laws in the world, as firms there seek to restore the reputation of the economy.

Albert Goodman, of Somerset, UK, have achieved BCorp certification to verify the work they are doing in ESG, CSR and DEI metrics. B Lab, a global non-profit organisation, aim to change economic systems to support a vision of an inclusive, equitable and regenerative global economy. They have stringent, developing standards that companies must adhere to, verifying their work over the course of 18 months to achieve initial verification, then submitting to an audit every three years subsequently. The level of transparency required to attain this is very high, demonstrating a strong commitment from the firm.

Prime Solutions, of Panama City, have been towards the forefront of the industry’s response to the so-called “Panama Papers”. An unfortunate misnomer that sees a whole region marked out for the actions of one rogue firm, nevertheless the revelations led to sweeping regulatory change. Prime Solutions has been certified in Anti-bribery management systems ISO 37001, which is a hugely exacting standard requiring a high level of technical work. The firm commits to ongoing training in anti-money laundering and anti-bribery, certifying the transparency and rigour of their work to a standard far beyond legislation.

Inherent challenges include both maintaining the standards that got the firms the certification in the first place and in communicating the edge that it gives them in the marketplace. In addition to this, there is always the accusation of cynicism; because a sustainability certificate can attract investment, any suggestion that this is the true motivation undermines the certificate’s aim. It can also be hard to differentiate a credible, verified measure from onethat simply purports to be, especially to an external audience that may be inexpert. The sheer work involved also means that firms below a certain size can be excluded from consideration.