If you're a pot investor who also cares about our planet's health...
Then this is for you...
Here's one big question going around lately:
"Is the cannabis industry environmentally sustainable?"
As legalization spreads everywhere, cannabis has become a commodity.
And like any big industry, corporations have seized up opportunities to grow faster than ever by likely whatever means necessary.
Of course, this can mean the neglect of sustainability.
Many growth facilities operate round-the-clock to ensure they can supply the market with enough cannabis.
This involves constantly running lights, fans, air conditioners, and hydroponic systems.
The result is that producing one kilogram of cannabis releases up to 5 tons of carbon dioxide into the atmosphere, the same as burning a full tank of gas.
Now, this may seem insignificant compared to large-scale corporations with substantial carbon emissions.
But it's not when you consider the rate at which the cannabis industry is exploding.
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In fact, even right now, cannabis production consumes about 1% of the nation's electricity, with top-producing states like California using as high as about 3%.
And given what the future holds, it could only be a matter of time before this becomes a genuine concern.
So what does this mean for you?
Think about where sustainability is already headed.
Corporate sustainability strategies can enhance not only brand value, meet consumer demands, increase efficiency, and attract valuable talent but also create new business opportunities.
This leads to long-term market share and revenue growth, which of course, affect stock performance.
Sustainability may take precedence over all things in the near future, and companies well-equipped to act on sustainability could emerge as market leaders.
The three companies in the marijuana industry whose future looks bright, according to insiders, are Innovative Industrial Properties (NYSE:IIPR), Trulieve Cannabis (CNSX:TRUL), and Village Farms International (NASDAQ:VFF).
Featured Image: Pixabay @ anncapictures
