Can Marijuana Stocks Benefit From Sustainable Practices?
Marijuana stocks have seen tremendous growth in the past six months. This growth has affected pot stocks like Trulieve Cannabis Corp. (TCNNF Stock Report), OrganiGram Holdings Inc. (OGI Stock Report) and HEXO Corp. (HEXO Stock Report). But, with major growth comes major responsibility. And with demand for cannabis skyrocketing due to Covid, the industry has a new opportunity to be sustainable. This sustainability can develop with any area of the cannabis industry. This includes ancillary pot stocks like KushCo Holdings Inc. (KSHB Stock Report) and Brinks Co. (BCO Stock Report).
If we look at the cannabis industry as a whole, the most fixable part of its sustainability practices seems to be at the consumer end. This means packaging, what products are made of and how consumers dispose of them. In addition, the process of growing and distilling cannabis can also be made more sustainable. With such a new industry, we have the opportunity to build it out in the way of the future. But, in addition, the infancy of the market means that it is difficult to find or view any long term data. With this in mind, let’s take a look at how some sustainable practices could shift the future of the cannabis industry for better.
The Issue With Packaging in the Cannabis Industry
As mentioned before, ancillary pot stocks like KushCo Holdings, have an opportunity to shift the future for the better. Because KushCo is a producer of cannabis packaging, the company could be at the forefront of the ecological movement to make cannabis more sustainable. One of the issues with this in the U.S. is that there are no federal guidelines on cannabis other than it being illegal. This means that there are no laws on how cannabis has to be packaged from an ecological standpoint.
Because of this, marijuana stocks and the companies that they support, often take the cheapest route to packaging their products. But, in the past few years, we have seen some companies work to build a better cannabis industry for all. This is something that major marijuana stocks have to take into consideration when building out bigger businesses. One of the best ways to ensure future growth is to grow with the future. And, as we have seen, there is a stark need for reform in the impact of our purchasing power.
How Marijuana Stocks Can Support a More Eco-Conscious Cannabis Industry
Kaitlin Urso, an Environmental Protection Specialist at the Colorado Department of Public Health and Environment stated that “the two main waste streams from both hemp and cannabis are the plant waste and the packaging waste.” Although her position itself is not cannabis-focused, she is one of the only individuals fighting for cannabis eco-reform in the country. With the uptick in cannabis demand in the U.S., more marijuana and hemp is being grown than ever before. This means that there is more plant waste than ever before. One of the solutions to the issue of packaging has come from the state of Colorado.
Colorado recently announced that it is working on putting new laws in place that would allow dispensaries to take back and reuse packaging. Of course, this is more difficult in our current Covid-stricken world, but it is a step in the right direction. In addition, another program seeks to use the C02 generated by cannabis cultivation to ferment alcohol at certain breweries. Of course, this is a small step, but it is with good intention. These new eco-conscious ideas are something that marijuana stocks and small cannabis companies should take into account. We all want to see pot stocks and the cannabis industry succeed in the long term. In order for that to occur, the industry does need to change a few things.
The Issue of Outdoor Marijuana Cultivation on the Cannabis Industry
In California, there is more marijuana grown outdoors than anywhere in the world. With massive fires and droughts, farmers are always trying to work with the land they have. Recently, California decided to create the Cannabis Cultivation Policy. The goal of this policy is to help reduce the ecological impact that growing cannabis has on the state. In addition, it could help to reduce pollution and save resources such as water. Again, these are small steps that states are taking to manage their own ecological impact. But, the real big step needed here is in the hands of the federal governments.
We have seen that marijuana stocks, cannabis businesses, and the public all want to legalize cannabis. But, the government has yet to take a stance on it other than keeping it criminalized. For this reason, big changes may be a ways away. But, these steps represent what the public is doing to try and shift the industry in the right direction for the future. With that in mind, the hopes are that marijuana stocks and the cannabis industry can continue to grow in tandem with the environment.