How Freshwater Research is Helping a Certified B Corp Meet Its ESG Commitments
Only a few miles from the western Caribbean Sea in southern Belize, where abundant sunshine, moist ocean air, and rain seduce the sweetest tropical fruits to ripen, is Silk Grass Farms, a 9,000-acre agribusiness. Founded in 2019 as the country’s first certified B Corporation, Silk Grass Farms is on a mission to be a force for good.
Silk Grass Farms’ ESG investments — short for environmental, social, and governance — will ensure the long-term, self-sustaining viability of the operation. They focus on sustainable business practices that are restorative and beneficial for the Belizean people, economy, and natural ecosystems.
Among those investments is the adjacent Silk Grass Wildlife Preserve, a nearly 25,000-acre mature rainforest with more than 1,000 tree species helping to combat climate change. The biologically diverse tropical biome is home to threatened and endangered species such as Belizean rosewood trees, red-eyed tree frogs, and jaguars.
Freshwater streams from five watersheds flow from the preserve onto the farm’s property. To understand the state of these vital resources and how to protect them, Silk Grass Farms asked Stroud Water Research Center to explore its site and evaluate the health of the streams running through it.
The Stroud Center has wielded its uniquely independent, interdisciplinary approach to freshwater research in streams and rivers around the world, including in tropical climates, for decades. From the Himalayan streams of Bhutan to the upstate sources of New York City’s drinking water, the Stroud Center has provided the detailed, nuanced, and comprehensive evaluation of freshwater ecosystems that helps businesses, governments, and communities monitor the water they need, restore it when degraded, and protect it well into the future.
With insights gained from the Stroud Center’s research, Silk Grass Farms plans to do just that.
From Footwear to Farming
For co-founders Mandy Cabot and Peter Kjellerup, Silk Grass Farms isn’t their first certified B Corp. They launched Dansko, the Danish-inspired footwear company, in their garage in 1990 and grew it over the next three decades into a successful global brand. At the invitation of statesman and farmer Henry Canton, they visited for the first time what would become their next venture: transforming a neglected and conventionally managed coconut farm in Belize into a flourishing enterprise benefiting the triple bottom line of a certified B Corp.
That was in 2018. Today, Silk Grass Farms produces coconuts, citrus, tropical fruit, and honey that it then makes into consumer products: cold-pressed coconut oil, fresh coconut water, cold-pressed juices, and pure, raw honey.
Instead of following an extractive and unsustainable business model, the farm supports a circular economy that enriches society and the environment by investing its profits into wildlife habitat, renewable energy, and conservation-focused agricultural practices such as waste management, cover crops, and low- or no-till farming.
In the mid-Atlantic United States, the Stroud Center has found such conservation ag practices can improve water infiltration, soil health, and freshwater ecosystems, all of which support farming and food production. But what about in the tropics? With all of its investments, is Silk Grass Farms meeting its water stewardship goals?
To find out, an interdisciplinary team of scientists led by Diana Oviedo Vargas, Ph.D., visited Silk Grass Farms in 2024 to sample 21 stream sites, three ponds, and several drinking water wells across five watersheds. They collected data during the wet and dry seasons and examined physical, chemical, and biological parameters. They also installed automated sampling devices to monitor temperature and electrical conductivity.
Preliminary results suggest Silk Grass Farms is effectively managing nutrients and supporting aquatic wildlife. The researchers found no significant evidence of increased nutrients coming from the farm, and they noted biodiversity in the streams by collecting more than 200 macroinvertebrate species, and by using eDNA to identify more than 30 fish species.
The Stroud Center will soon provide Silk Grass Farms with a detailed report of any detected environmental impacts and, if appropriate, make recommendations for improvements such as the implementation of watershed restoration practices. The scientific data could also set the stage for future research on long-term environmental sustainability of the farming operations, and whether farming practices that support fresh water in a temperate U.S. region can provide similar benefits in other places.
Oviedo says, “Until now, no scientific studies have assessed the condition of freshwater resources in the area. This study is helpful, not only for the farm but also for the local communities and for the broader scientific and conservation efforts in the tropics. A repeat examination in 10 or 20 years could tell us about slow-paced processes such as climate change effects, or if any adopted recommendations are working as expected.”
Kjellerup says of the Stroud Center research team, “It’s been fascinating to watch these experts systematically measure and document the properties of these streams and their inhabitants, and assess the impact of our farm and food processing operations downstream at Silk Grass Farms. With their help, we are ensuring that our farms and factory protect our precious clean water and all the living things that depend on it.”
Raising the Bar
Behind the B
ESG investments in freshwater research are important for making a scientifically validated positive impact on freshwater ecosystems and can provide an economic return. Studies have found ESG can increase corporate value and profitability.1
That matters to investors like Porter Schutt, head of Brown Advisory Delaware office and the Stroud Center’s board chairman: “Stroud Water Research Center has a unique ability to be a good reference for both the investment community and corporations, as well as those of us who are thinking about the future of this planet.”
Close to 90% of investors use ESG when creating their portfolios, according to a Capital Group study.
Consumers care about ESG too. The National Retail Federation reports that half of consumers are willing to pay more for sustainable brands while two-thirds are willing to change their shopping habits to reduce environmental impact.
B Corp certification is one way that companies can measure, report on, and receive third-party validation of their ESG impacts. B Lab, the certifying entity, ensures that B Corps meet high standards of social and environmental impacts, accountability, and transparency through rigorous performance requirements.
As a result, B Corps like Silk Grass Farms are nearly twice as likely to assess the environmental impact of their operations, B Lab reports.
In return, they earn consumer trust. A study from B Lab found that more than half of consumers use certifications to make decisions and that they have “a lot” or “very high” trust in B Corp certification.
It’s no wonder the number of certified B Corps has risen dramatically since B Lab launched the program in 2006, as consumers and investors increasingly seek brands with ethical and sustainable business practices. In 2020, there were more than 4,000 certified B Corps. That number doubled over the next three years.
1. Aydoğmuş, M., Gülay, G., & Ergun, K., 2022. Impact of ESG performance on firm value and profitability. Borsa Istanbul Review 22(2), S119-S127. https://doi.org/10.1016/j.bir.2022.11.006
“As a certified B Corporation, Silk Grass Farms has joined the global movement to elevate agriculture into an industry that provides high-quality employment and healthy food while protecting natural resources. The Stroud Center’s work — to ensure that our operations support rather than diminish the health and well-being of our watersheds — directly impacts our financial prosperity and helps us fulfill our mission.” — Mandy Cabot and Peter Kjellerup, co-founders, Dansko and Silk Grass Farms
Get Involved
To learn how freshwater research can help your business meet its ESG commitments, email development@stroudcenter.org.
Stroud Water Research Center publishes content like this in its annual report to celebrate the impact we make each year, while recognizing that our work is unfinished. To protect clean fresh water — a basic human right — we rely on the support of people like you. Please donate today to keep our fresh water clean.
