In recent years, the cannabis industry has emerged from the shadows of prohibition into a realm of legality and potential profitability. However, as this nascent sector grows, so do the concerns regarding its impact on the environment and society at large.

Environmental and Social Governance (ESG) principles are now taking center stage as the industry seeks sustainable paths forward.

Cultivation's Carbon Footprint

Cannabis cultivation is notorious for its high energy consumption, primarily due to indoor growing operations that require extensive lighting, temperature control and ventilation.

See Also: Environment In The Cannabis Industry Is So Bad, It's Good, Says Jason Wild Of TerrAscend

A study published in the journal "Nature Sustainability" highlighted that indoor cannabis production has a carbon footprint comparable to other energy-intensive industries like data centers. According to New Frontier Data, the electricity required for cultivation accounts for about 80% of the industry's carbon emissions.

In response, some companies are adopting innovative approaches to reduce their carbon footprint. Vertical farming, which involves cultivating plants in vertically stacked layers offers potential energy savings and increased crop yield.

Additionally, outdoor and greenhouse cultivation methods can harness natural sunlight, substantially lowering energy requirements. By adopting these methods, the cannabis industry can take strides toward achieving ESG goals.

Social Equity And Inclusivity

The cannabis …

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