MJBiz - July/August 2024 - 31

C
onventional wisdom says environmental regulations hurt
business' bottom lines. But many cannabis businesses are
showing that it doesn't have to be that way.
Indeed, cultivating, manufacturing, packaging and selling cannabis
in an environmentally sustainable manner can reap multiple benefits
that all do their part to bolster the bottom line.
For one, many states have environmental regulations regarding
electrical usage, water usage, waste disposal and other business
operations that companies of any kind must abide by. Then, there are
a growing number of states with cannabis-specific environmental
regulations that make greener equipment and supplies a requirement
to stay in business.
" We have to look at ways to minimize our environmental impact
while remaining compliant, " Angela Brown, co-founder and CEO of
Coast Cannabis Co., a vape and infused products maker in Wareham,
Massachusetts, told MJBizMagazine.
But there are also economic factors to consider-the cost of electricity
being the most notable. Cannabis cultivators use disproportionately
more electricity compared to most other businesses.
Those high electricity costs affect the bottom line and are bad for the
environment. And while electricity prices traditionally are more stable
than the prices of other goods, inflation has driven up those costs even
higher. Therefore, any measures taken to reduce energy consumption
will improve finances long term.
Of course, many business owners in the current economic climate
ask themselves whether their companies will exist in the long term
and if it isn't better to avoid costs that could jeopardize short-term
survival.
Luckily, utility rebates, marketing opportunities and other factors
can accelerate the return on investment of making sustainable
changes and bring some cost relief in the short term.
In the following pages, MJBizMagazine explores the measures
marijuana businesses can take to be both environmentally friendly and
profitable.
" Sustainability has a triple value. It's good for the planet, for
consumers and for business, " said Graham Farrar, co-founder and
president of Glass House Brands in Santa Barbara, California. " You
can't grow the best cannabis in the world if you destroy the world in
the process. Focusing on doing the right environmental thing, from a
business side, it's an ROI. "
- Omar Sacirbey
Outsized energy consumption
and excessive packaging are
among the cannabis industry's
most environmentally damaging
practices. But many marijuana
businesses are finding
environmentally friendly solutions
that also save money. Operators
considering more sustainable
solutions should know that:
* Consumers prefer sustainably
made products over
unsustainable products, if
everything else is equal,
but price is still the No. 1
determinant.
* LED lights, energy-efficient HVAC
systems and solar panels have
large upfront costs, but they can
provide owners with long-term
savings.
* Cannabis companies that invest
in energy-efficient equipment
should be able to recoup much
of the investment through utility
rebates.
* Closed-loop farming-or growing
outdoors using only inputs that
come from the farm-is among
the most sustainable forms of
cultivation.
* Marijuana businesses must
abide by cannabis-specific and
overall state environmental
regulations.
* Marijuana businesses are unable
to attain organic certification
from the U.S. Department of
Agriculture, but many companies
have opted for private
certification labels.
* More cannabis companies are
adopting recycled packaging.
mjbizdaily.com | July-August 2024 31
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MJBiz - July/August 2024

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