The Sezzle Inc (ASX: SZL) share price is edging higher in late afternoon trade after the payment technology company announced it has received B Corp certification.
At the time of writing, the Sezzle share price is trading 0.28% higher at $7.09. For context, the S&P/ASX 200 Index (ASX: XJO) is currently 0.46% lower for the day so far.
What it means to be a B Corp
B Corp certification means a for-profit company meets the highest standards of verifiable social and environmental performance, public transparency, and legal accountability to balance profit and purpose. This certification is awarded and regularly reassessed against stringent criteria by the non-profit B Corporation.
The purpose of the certification is to drive change for an inclusive and sustainable economy through for-profit businesses.
Happy B Corp Month!
In March, we'll be joining our global community of almost 4,000 #BCorps to celebrate our movement to transform the global economy to benefit all people, communities, and the planet. pic.twitter.com/SL7HgqrDfV
B Corporation (@BCorporation) March 1, 2021
Recognisable Australian businesses that Sezzle will be joining include 4 Pines Brewing Company, ethical investing app provider Goodments, speciality tea store operator T2 Tea, and toilet paper supplier Who Gives A Crap.
What makes Sezzle B Corp worthy?
Sezzle states its mission is to 'financially empower the next generation', going beyond profits and Sezzle share price returns alone. The approval of filing requirements by BLab also solidifies the payment company's ethos of 'payments with purpose' into its corporate governance structure. However, these feel-good quips alone are not sufficient for Sezzle to become B Corp certified.
The B Corp initiatives proposed by Sezzle include the following five commitments:
- Planting a tree for every new, active user.
- Being carbon neutral with certification from Climate Neutral, reducing the company's carbon footprint.
- Giving a full annual scholarship to the University of Minnesota to a disadvantaged student and launching a new national scholarship.
- Providing free financial literacy and needed tools via Sezzle U.
- Creating a non-profit fund to support causes as they arise that are in line with the company's social mission.
Furthermore, both Sezzle's leadership team and stakeholders see the company as helping all ages effectively manage personal finances without incurring high-interest finance charges.
Why is the Sezzle share price not doing better?
Despite receiving the certification, the Sezzle share price is not exactly setting the world on fire today and, in earlier trade, was actually falling. The payment instalment sector has suffered a challenging month or so. As fears surrounding possible overvaluation and tighter competition from the likes of Commonwealth Bank of Australia (ASX: CBA) grow, markets have sold off the space. The collateral damage for Sezzle has been a 27% share price fall in the last month.
Some analysts are also predicting consolidation in the buy now, pay later (BNPL) space, before returning to growth longer term. Sezzle will no doubt be hoping its B Corp certification might assist the company to stand out from its peers during that process.
