Missing ties? B Corp Movement and Community Power Movement Dr. Shota Furuya, Institute for Sustainable Energy Policies / Japan Community Power Association November 7, 2023 | World Wind Energy Conference 2023, Community Power in Practice: Business Models 

Table of Contents 1. Community Power Movement and B Corp Movement 2. Potential collaboration opportunity 3. Summary 1 

Community Power Movement Definition of Community Power 2 1. Local stakeholders own the majority or all of a project A local individual or a group of local stakeholders, whether they are farmers, cooperatives, independent power producers, financial institutions, municipalities, schools, etc., own, immediately or eventually, the majority or all of a project. 2. Voting control rests with the community-based organization: The community-based organization made up of local stakeholders has the majority of the voting rights concerning the decisions taken on the project. 3. The majority of social and economic benefits are distributed locally: The major part or all of the social and economic benefits are returned to the local community. World Wind Energy Association “WWEA defines Community Power” May 23, 2011 

Community Power Movement 3 Community-owned renewable energy is spreading around the world, especially since the 2010ʼs. 

Community Power Movement Research Question • To rediscover and amplify the meaning of community power, is it worth to consider potential ties of the community power movement with other movements? • Who has empathy and commitment for community power activities? • Might be B Corp movement one of the most likely prospects? 4 

B Corp Movement ‒ Use business as a force for good • Success and setback of “AND1” as pre-history in the US • Jay Coen Gilbert, Andrew Kassoy and Bart Houlahan • Need for three foundational blocs: • A set of standards that would give consumers, investors, and policy makers the information required to tell the difference between good companies and good marketing • A legal framework that permitted companies to embrace sustainability and social enterprise as core purposes and responsibilities of the business, not just as a competitive advantage • A collective voice to define what it means to be a good business. • They established B Lab and developed B Impact Assessment • In 2010, the first legislation of “benefit corporation” in Maryland • Growing global movement: 7,682 companies / 92 countries / 161 industries / 693,805 workers (November 4th, 2023) 5 Christopher Marquis (2020) Better Business: How the B Corp Movement Is Remaking Capitalism, Yale University Press. 

B Corp Movement B Impact Assessment • A comprehensive tool to measure, manage, and improve a companyʼs positive impact performance for workers, communities, customers, suppliers, and the environment. A required verified score of 80 on the B Impact Assessment also serves as a certification requirement for B Corp certification. 6 Source: B Lab Website 

B Corp Movement Hepburn Energy (formerly Hepburn Wind) • Current certification with B Impact Score 154.9 • First certified in 2016 with 144.2, certification renewed in 2018 with 143.2 • B Impact Score breakdown • Governance 11.8 • Workers 17.5 • Community 64.2 • Environment 57.2 • Customers 4.1 7 For example... B Lab Website: Hepburn Energy * Normal companies usually get around 50 

B Corp Movement in Japan • Value Books, which buys and sells used books, has been interested in B Corp since around 2016, attending conferences and visiting B Lab in the US. • As part of its new in-house publishing business, the company began considering translating the B Corp Handbook as its first book in 2019. • They thought it would be more B Corp-like to try it out with the participation of a variety of people in an open seminar format, rather than having it translated by a specialist translator alone. • 26 participants from various fields of industry (manufacturing, lumber, retail, finance, media, PR, etc.) and occupations (managers, craftsmen, lawyers, salespeople, researchers, etc.) took part in the project, and a translation of the book was published in 2022. • After publishing the book, many companies started to pay attention to B Corp certification, and series of practical learning sessions have been organized and they developed into a community of mutual help and learning. 8 Honeyman, Ryan, and Tiffany Jana, 2019, The B Corp Handbokk, Second Edition: How You Can Use Business as a Force for Good, Berrett-Koehler Publishers.（＝2022, ライアン・ハニー マン、ティファニー・ジャナ著, ⿃居希、⽮代真也、若林恵監修, B Corp ハンドブック翻訳ゼミ訳『B Corp ハンドブック：よいビジネスの計測・実践・改善』バリューブックス・パブリッシング.） 

B Corp Movement in Japan Overview of B Corp in Japan • Although it is still in its infancy, companies with solid commitments to sustainability and equity are beginning to be certified. 9 Total Number of B Corp 31 Maximum BIA Score 128.0 Median BIA Score 85.9 Number of Industries 20 3 0 2 0 1 2 9 14 0 5 10 15 2016 2017 2018 2019 2020 2021 2022 2023 Number of companies certified annually ＊ November 4th, 2023 

Potential collaboration opportunity 10 From the conversation... What is the first step for a company seeking B Corp certification? Switching electricity purchase from electric utility to electricity retailer offering 100% renewable energy! Companies considering B Corp certification Certified B Corp 

Potential collaboration opportunity B Corp General company (Not B Corp) Community power • B Corp purchase electricity from community power • Community power procure products and services from B Corp • General company purchase electricity from community power • Community power procure products and services from general company Renewable Energy Company • B Corp purchase electricity from renewable energy company • Renewable energy company procure products and services from B Corp • General company purchase electricity from renewable energy company • Renewable energy company procure products and services from general company 11 

Summary • As the community power movement develops further, it will be important to explore potential ties outside the movement. • The B Corp movement has grown globally under the call to “use business as a force for good.” • In Japan, the B Corp Movement is still in its infancy, but the base of the movement is being built on a process design that strategically involves a diverse group of people. • Since the B Corp movement and the community power movement share fundamental values in terms of sustainability and equity, the two movements are likely to resonate. • Mutual procurement of community power and B Corp can be considered as the first step in a potential collaboration. • However, more meaningful ways of collaboration are still open, so it seems important to create opportunities for dialogue between the two movements. 12