Verification Review Guide
In the Verification Form, applicants must provide an explanation of how they meet each of the 5 standards and evidence to support each claim.
An internal points system was developed to simplify the review process, ensure consistency, and help enterprises identify opportunities for potential improvement.
Applicants need at least 1 point for each of the 5 standards to be eligible for verification. If they receive 0 points for any standard, they are encouraged to make improvements and reapply in the future.
Points are not shared publicly to prevent comparison across enterprises that operate in highly diverse contexts and legal frameworks. Enterprises are either People and Planet First Verified or they are not.
This Verification Review Guide provides details on the points, expected evidence, and decision-making process for each standard. It is intended as a resource for applicants and Review Partners.
Purpose
Purpose Standard: Exists to solve a social or environmental problem
0 Points: Not Eligible
Purpose 0 Point Answer: Conventional business. Not created to solve a social or environmental problem.
1 Point
Purpose 1 Point Answer: Exists to solve a social or environmental problem. Social or environmental purpose is publicly communicated online. Plans to update governing documents to include the purpose.
Expected Evidence for Purpose 1 Point Answer
Online statement, web page, post, or Good Market profile page that includes a social or environmental purpose (link, screenshot, etc.)
2 Points
Purpose 2 Point Answer: Exists to solve a social or environmental problem. Social or environmental purpose is publicly communicated online and is included in governing documents.
Expected Evidence for Purpose 2 Point Answer
Online statement, web page, post, or Good Market profile page that includes a social or environmental purpose (link, screenshot, etc.)
Signed or filed copy of governing documents that include a social or environmental purpose (articles, charter, constitution, memorandum, bylaws, statutes, resolutions, etc.)
3 Points
Purpose 3 Point Answer: Exists to solve a social or environmental problem. Social or environmental purpose is publicly communicated online and is included in governing documents. Monitors impact related to purpose.
Expected Evidence for Purpose 3 Point Answer
Online statement, web page, post, or Good Market profile page that includes a social or environmental purpose (link, screenshot, etc.)
Signed or filed copy of governing documents that include a social or environmental purpose (articles, charter, constitution, memorandum, bylaws, statutes, resolutions, etc.)
Internal impact monitoring related to social or environmental purpose (link, screenshot, etc.)
4 Points
Purpose 4 Point Answer: Exists to solve a social or environmental problem. Social or environmental purpose is publicly communicated online and is included in governing documents. Monitors and publicly reports impact related to purpose.
Expected Evidence for Purpose 4 Point Answer
Online statement, web page, post, or Good Market profile page that includes a social or environmental purpose (link, screenshot, etc.)
Signed or filed copy of governing documents that include a social or environmental purpose (articles, charter, constitution, memorandum, bylaws, statutes, resolutions, etc.)
Public impact reporting related to social or environmental purpose (link to report, web page, video, etc.)
Purpose Decision Making
Operations
Operations Standard: Prioritises purpose, people, and planet over profit in operational decisions
0 Points: Not Eligible
Operations 0 Point Answer: Not focused on social and environmental impact of operational decisions. Does not meet minimum sector standards.
1 Point
Operations 1 Point Answer: Meets minimum sector standards. Publicly communicates online about how people and planet are prioritised.
Expected Evidence for Operations 1 Point Answer
The first step of the verification process is meeting the minimum sector standards and creating a public profile page on the Good Market digital commons. No additional evidence is required for the 1 Point answer.
2 Points
Operations 2 Point Answer: Meets minimum sector standards. Monitors social and environmental metrics related to workers, suppliers, community, and environment.
Expected Evidence for Operations 2 Point Answer
Internal monitoring of social and environmental metrics (link, screenshot, etc.)
3 Points
Operations 3 Point Answer: Meets minimum sector standards. Monitors and publicly reports social and environmental metrics related to workers, suppliers, community, and environment.
Expected Evidence for Operations 3 Point Answer
Public reporting related to social or environmental metrics (link to report, web page, video, etc.)
4 Points
Operations 4 Point Answer: Meets minimum sector standards. Has at least one recognised third-party verification of socially and environmentally responsible practices related to core operations.
Expected Evidence for Operations 4 Point Answer
External verification or certification of socially and environmentally responsible practices (valid certificate or link to profile in certifier directory)
Operations Decision Making
Note: Third-party verifications and certifications of socially and environmentally responsible practices include fair trade, organic, B Corporation, local green business certifications, and others. For examples and links to certifiers, click on the certificates listed in the Good Market directory.
Revenue
Revenue Standard: Has a self-sustaining revenue model
0 Points: Not Eligible
Revenue 0 Point Answer: Dependent on non-reciprocal charitable contributions and grant contracts. No plan for a self-sustaining revenue model.
1 Point
Revenue 1 Point Answer: Financial records show earned income from products, services, or reciprocal grant contracts. Plan for financial sustainability.
Expected Evidence for Revenue 1 Point Answer
Financial records showing earned income and expenses (spreadsheet, financial report, copy of tax returns, etc.)
Simple explanation of sustainability plan required. Business plans, financial forecasts, and other documents optional
2 Points
Revenue 2 Point Answer: Financial records show earned income from products, services, or reciprocal grant contracts covers at least 50% of expenses. Plan for financial sustainability.
Expected Evidence for Revenue 2 Point Answer
Financial records showing earned income and expenses (spreadsheet, financial report, copy of tax returns, etc.)
Simple explanation of sustainability plan required. Business plans, financial forecasts, and other documents optional
3 Points
Revenue 3 Point Answer: Financial records show earned income from products, services, or reciprocal grant contracts covers at least 75% of expenses. Plan for financial sustainability.
Expected Evidence for Revenue 3 Point Answer
Financial records showing earned income and expenses (spreadsheet, financial report, copy of tax returns, etc.)
Simple explanation of sustainability plan required. Business plans, financial forecasts, and other documents optional
4 Points
Revenue 4 Point Answer: Financial records show earned income from products, services, or reciprocal grant contracts covers 100% of expenses. Plan for long-term financial sustainability.
Expected Evidence for Revenue 4 Point Answer
Financial records showing earned income and expenses (spreadsheet, financial report, copy of tax returns, etc.)
Revenue Decision Making
Note 1: Enterprise only needs to provide evidence of some earned income for 1 point. Profits / surplus are not required.
Note 2: Reciprocal grant contracts are any grant contracts linked to specific outputs, outcomes, or results (e.g. number of people supported, number of trees planted, kilos of plastic removed). These service contracts are considered earned income.
Use of Surplus
Use of Surplus Standard: Reinvests the majority of any surplus towards its purpose
0 Points: Not Eligible
Use of Surplus 0 Point Answer: Has a structure or financing that requires more than 50% of surplus to be disbursed for private profit. No plans to change.
1 Point
Use of Surplus 1 Point Answer: Has a public commitment to reinvesting the majority of surplus towards purpose. Financial records show greater than 50% reinvestment or purpose-related disbursement
Expected Evidence for Use of Surplus 1 Point Answer
Online statement, web page, or post that includes a commitment to reinvesting the majority of surplus towards social or environmental purpose (link, screenshot, etc.)
Financial records showing use of surplus if any (spreadsheet, financial report, copy of tax returns, etc.)
2 Points
Use of Surplus 2 Point Answer: Has a public commitment to reinvesting all surplus towards purpose. Financial records show 100% reinvestment or purpose-related disbursement.
Expected Evidence for Use of Surplus 2 Point Answer
Online statement, web page, or post that includes a commitment to reinvesting the majority of surplus towards social or environmental purpose (link, screenshot, etc.)
Financial records showing use of surplus if any (spreadsheet, financial report, copy of tax returns, etc.)
3 Points
Use of Surplus 3 Point Answer: Governing documents or structure ensure the majority of surplus is reinvested towards purpose. Financial records show greater than 50% reinvestment or purpose-related disbursement.
Expected Evidence for Use of Surplus 3 Point Answer
Signed or filed copy of governing documents that show a registration type requiring reinvestment (nonprofit, CIC, etc) or a clause protecting use of surplus (dividend cap, etc.)
Financial records showing use of surplus if any (spreadsheet, financial report, copy of tax returns, etc.)
4 Points
Use of Surplus 4 Point Answer: Governing documents or structure ensure all surplus is reinvested towards purpose. Financial records show 100% reinvestment or purpose-related disbursement.
Expected Evidence for Use of Surplus 4 Point Answer
Signed or filed copy of governing documents that show a registration type requiring reinvestment (nonprofit, CIC, etc) or a clause protecting use of surplus (dividend cap, etc.)
Financial records showing use of surplus if any (spreadsheet, financial report, copy of tax returns, etc.)
Use of Surplus Decision Making
Note 1: This standard is focused on the use of profits / surplus, which is the amount remaining after all salaries and other expenses are paid. If an enterprise doesn’t have profits / surplus yet, it is still eligible.
Note 2: Benefit corporation clauses and registration types mean an enterprise is able to consider impacts on people and the planet and is not legally constrained by shareholder primacy. It does not automatically restrict use of surplus. B Corporation or benefit corporation status cannot be used as evidence for 3-4 Point answers.
Note 3: The Use of Surplus standard is focused on protecting enterprises from extractive pressure by future profit-maximizing owners or investors. When cooperatives make payouts to workers and other community members, it is considered a reinvestment towards purpose because it is part of their strategy for building community wealth and strengthening the next economy. Cooperatives are eligible for the Use of Surplus standard. They must meet all 5 standards to be eligible for verification.
Structure
Structure Standard: Chooses legal structures and financing that protect and lock in purpose long term
0 Points: Not Eligible
Structure 0 Point Answer: Has a structure or financing that does not protect purpose, e.g. profit-maximising ownership, subsidiary of profit-maximising company. No plan to change structure.
1 Point
Structure 1 Point Answer: Has a public commitment to locking-in purpose. Plans to update governing documents or registration. Current financing and ownership does not prevent future lock-in.
Expected Evidence for Structure 1 Point Answer
Online statement, web page, or post that includes a commitment to locking in purpose (link, screenshot, etc.)
2 Points
Structure 2 Point Answer: Has clauses in governing documents to protect purpose through periods of transition including changes in management, changes in ownership, and dissolution.
Expected Evidence for Structure 2 Point Answer
Signed or filed copy of governing documents that show clauses to protect purpose through transitions (asset lock, dissolution clause, etc.)
3 Points
Structure 3 Point Answer: Has structural arrangements to protect purpose through periods of transition (e.g. democratic governance, hybrid model with key assets under protected structure)
Expected Evidence for Structure 3 Point Answer
Signed or filed copy of governing documents or other records that show structural arrangements to protect purpose through transitions (cooperative structures, separate legal entities with trademark, land, or key assets under a nonprofit or other protected structure, etc.)
4 Points
Structure 4 Point Answer: Has government regulated structural arrangements or an embedded democratic governance model to protect purpose through periods of transition (e.g. controlling shares owned by a protected structure, democratic member control)
Expected Evidence for Structure 4 Point Answer
Signed or filed copy of governing documents or other records that show government regulated structural arrangement (nonprofit, CIC, perpetual purpose trust, golden share, etc) or embedded democratic governance model (mutuals and cooperatives with supermajority requirements, explicit protections from demutualization, etc.)
Structure Decision Making
Note 1: Benefit corporation clauses and registration types mean an enterprise is able to consider impacts on people and the planet and is not legally constrained by shareholder primacy. They do not prevent an enterprise from taking on extractive finance and does not automatically protect and lock-in purpose long-term. B Corporation or benefit corporation status cannot be used as evidence for 2-4 Point answers.
Note 2: Enterprises approved with 1 Point for Structure are expected to update their registration or governing documents before renewal.
Review Examples
Reviewers go through all explanations and evidence, select whether the form is Eligible (green), More Info (yellow), or Not Eligible Yet (red), and provide details on each of the 5 standards.
Eligible
More Info
Not Eligible Yet
