This presentation is a backgrounder on B Corps, as delivered at an information session at MaRS on May 13th, 2011. It includes background on: what is a B Corporation, their ratings system, service offerings, public policy, and implications for access to capital.

1. Information Session B Corporations Prepared for MaRS Clients, MaRS Advisors and GTA Area Social and Environmental Purpose Businesses Friday, May 13th, 2011 MaRS is where science, technology and social entrepreneurs get the help they need. Where all kinds of people meet to spark new ideas. And where a global reputation for innovation is being earned, one success story at a time.

3. RATINGS SYSTEM

4. SERVICE OFFERINGS

5. PUBLIC POLICY

6. ACCESS TO CAPITAL

7. OUR WORK

8. OPPORTUNITY

9. DISCUSSION & QUESTIONSPg 2

10. Pg 3 What is a B Corporation? Certified B Corporations are a new type of corporation which uses the power of business to solve social and environmental problems. B Corporation concept launched in the US in 2006.

12. Transparency requirement

13. Legal requirement to ensure long-term sustainability

14. On-site audits377 B Corporations I $1.82B Revenues I 54 Industries I $1M Annual Savings vs. Thematic Focus (Industry, Product, or Limited Focus) Social and environmental practices for rainforest protection Facility, product, or service energy efficiency Social and environmental practices in the forestry industry Facility energy efficiency and use of green materials Recycled content Of product Agricultural practice Of food product Level of disclosure on Social & env. Issues. Fair labor practices To make product Systems established to measure & reduce environmental impacts Sustainability embedded in full life-cycle of product Pg 4

16. meet comprehensive and transparent standards of social and environmental performance, transparency and accountability;

17. institutionalize stakeholder interests; and

19. Industries: Building, Business Products and Services, Consumer Products and Services, Education and Training Services, Financial Services, Health, Legal, Media, Restaurant/Hospitality/Travel, Retail and OtherAccredited by the U.S. non-profit organization B Lab, based in Philadelphia, Pennsylvania. They focus on standards,mobilizing capital and public policy.

20. Pg 6 What is a B Corporation? 407 B Corporations $1.91B Revenues 54 Industries +$1M Annual Savings

21. What is a B Corporation? Pg 7 Diverse and growing group of business leaders… Consumer Products Financial Services Bus. Services Canada (26) Other Examples

24. no additional liability from non-shareholders

26. Submit proof of amended articles within 90 days

27. Submit to an on-site review if randomly selected

29. transparent (not black box);

30. independently governed by a Standards Advisory Council to avoid conflict of interest; and

31. dynamic to drive continuous improvement.

32. measures impact in five key areas related to accountability, employees, consumers, community and environment

33. assessment tools tailored to: Sectors and Industries

34. transparent and freely available on the web: thousands have utilized B Impact Assessment

37. Beta Version 3.0: Just launched in May 2011

38. Version 2.0: new version released every two years; SiG@MaRS contributed to this version

40. Debra Dunn, Director, Skoll Foundation

41. HewsonBaltzell, Head of Sustainability Solutions, Risk Metrics

42. Don Shaffer, President & CEO, RSF Social Finance

43. Bonny Moellenbrock, Executive Director, SJF Advisory Services

44. Beth Sirull, Executive Director, Pacific Community Ventures

45. Rhonda Evans, Science Advisor, GoodGuide

46. Doug Claffey, Founding Partner & CEO, Workplace Dynamics

48. Improvement tool which allows others to use it to get better;

50. Documentation Submission

53. B to B Discounts amongst B Corps

54. Learning opportunities: monthly webinars and other development opportunities

55. Resources: Downloadable guides on governance, employees, suppliers, environment, and community (ie. How to write and employee handbook)

56. Meet-ups and Events: at a local and international level (in US).Pg 15

57. Pg 16 Access to Capital Social and environmental ventures have difficulties accessing capital

59. GIIRS is a ratings agency that provides comparable and transparent social and environmental performance data on enterprises seeking investment capital using ratings methodology analogous to Morningstar or S&P

60. independent third-party impact ratings product that is comparable, transparent, and easy to use (Note: not financial measurement or a CSR rating) based on the B Impact Assessment

61. provides ratings for impact funds and companies with focus on mission focused investment opportunities targeting investorsPg 17

63. allows for comparable measurement of impact across businesses and investment products in different industries, sizes and focus areas

64. reduce due diligence costs for impact investors and communications burden for companies by creating a universal standardPg 18 The SVX will be a local, impact first market connecting social ventures, impact funds, and impact investors in order to catalyze new debt and equity investment capital for local ventures that have demonstrable social and/or environmental impact, including nonprofits, co-operatives, and for-profit corporations. (Launching summer 2011) Invest for impact.

65. Pg 19

66. Public Policy Pg 20 B Lab is advancing a new corporate form through state legislation to create benefit corporations. Ontario has the opportunity to take the lead in Canada.

67. Public Policy We won’t have a new economy without a new type of corporation. Pg 21 20th Century: Shareholder Capitalism 21st Century: Stakeholder Capitalism Maximize shareholder value almost exclusively Create social andshareholder value simultaneously

69. 7 other states moving forward in 2011, including NY, PA, MI, HI, CA, CO, & NC

70. 11 benefit corporations registered on the first day in MDPg 22

73. shall have an independent Benefit Director

76. Procurement Advantage: Different levels of government offer preferred procurement status to benefit corporations;

77. Tax advantage: tax advantage could eventually be offered by different levels of government, likely starting with municipalities, then moving to investment incentives, then corporate tax incentives.Pg 24

79. Partners roles

80. MaRS:Community organizing, local business development for service partners,feedback on assessment process, and public policy development

81. B Lab: Brand, training, assessment system, auditing and other supports.

82. MaRS will be the B Lab hub for Canada, with first focus on Ontario during two-year pilot period;

83. Baseline objective: 60 B Corps registered within the two years;

84. Increasing access to capital through the SVX platform and affiliated GIIRS/B Corp ratings processPg 25

86. Strengthens communities

87. Restores environment

88. Alleviates povertyPg 26 Contractors Food Clean Tech Hospitality Legal Private Equity Wealth Mgmt Home Apparel Education Building Industry Retail Architecture Arts Restaurant Consulting Telecom Developing World Media Comm PR Banks Marketing IT Real Estate Footwear Renewable Energy Personal Care B2B B2C Biotechnology Pharmaceuticals

89. Discussion & Questions