Cultivating Green: Navigating Sustainability in the Cannabis Industry

In recent years, the cannabis industry has flourished, with legalization becoming more prominent across the U.S. with an increase in consumer demand. In 2024, the global market is expected to reach a revenue of $64.73 billion, with the U.S. expected to generate the highest revenue of $42.98 billion. However, as the industry grows, so does the environmental impact.

The industry grapples with sustainability challenges ranging from indoor cultivation that requires significant energy resources to packaging waste, necessitating prompt attention and innovative solutions. In this blog, we will dive into the importance of sustainability, how cannabis businesses can prioritize being socially responsible, and consumer considerations when choosing brands.

Why Sustainability Matters:

Consumers and businesses alike need to understand how environmental factors have long-lasting effects and can disrupt our day-to-day lives in the future. By adopting sustainable practices, businesses are preserving the environment by minimizing their ecological footprint, conserving resources, and protecting biodiversity. It can also benefit communities by reducing pollution and conserving water. As the need becomes more prevalent for consumer buying decisions, companies are taking note. 75% of leaders say their organizations had already increased their investments towards a sustainable future. But there’s also a financial plus for brands. Implementing sustainable practices can lead to cost savings through energy efficiency and waste reduction and can increase profits by 60% if you employ zero and, or low-waste policies.

Eco-Friendly Practices for Businesses:

The cultivation of cannabis, especially indoors, requires energy for lighting, heating, and ventilation. In addition, it also involves water usage and pesticide and fertilizer use, causing environmental concerns. Furthermore, the packaging and transportation of cannabis products contribute to carbon emissions and waste. As a business, you want to ensure that you are meeting the needs of your consumers and contributing to positive CSR. But what are some steps to start? Here are four ways brands can implement eco-friendly choices into the business:

1) Energy Efficiency: To reduce energy consumption, invest in energy-efficient lighting and eco-friendly cultivation techniques such as vertical farming and greenhouse cultivation.

2) Water Conservation: Implement water-efficient irrigation systems and recycle wastewater to minimize water usage.

3) Waste Management: Reduce, reuse, and recycle packaging materials. Explore composting options for organic waste and invest in recycling programs.

4) Regulatory Compliance: Stay informed about environmental regulations and compliance requirements to avoid fines.

Consumer Considerations When Choosing a Cannabis Brand:

When choosing brands to purchase from, many consumers prioritize sustainability, transparency, and ethical practices from cannabis businesses. Over the past five years, there has been a 71% rise in online searches for sustainable goods globally. In multiple surveys, including one from McKinsey & Co., consumers express that they will form relationships with brands that pay attention to their environmental impact, with 66% of all respondents and 75% of millennial respondents saying that they consider sustainability when they make a purchase. Through the eco-friendly practices mentioned above, brands can attract and retain environmentally conscious consumers and drive positive change within the industry. But what are some things consumers should consider when shopping? Here are four things consumers should consider:

1) Certifications: Look for certifications such as organic, Fair Trade, or eco-friendly labels to identify brands committed to sustainability.

2) Packaging: Pick products that have recyclable packaging to reduce waste.

3) Locally Sourced: Support local brands to minimize emissions from transportation.

4) Transparency: Seek brands that disclose their cultivation practices, such as energy usage, pesticide use, and waste management.

Businesses play a crucial role in adopting sustainable practices, while consumers have the power to drive demand for sustainable products and hold brands accountable. As consumers become increasingly informed and conscious of the environmental and social impact of their purchasing decisions, they are seeking out sustainable brands that align with their values. By working together, we can create a greener, more responsible cannabis industry that benefits both people and our environment.