Eco-Friendly Cannabis: The Green Revolution of the Industry

Introduction

The cannabis industry in Canada, renowned for its quality and innovative practices, is now at the forefront of a significant shift towards sustainability. This transformation is driven by an increasing awareness of environmental, social, and governance (ESG) issues, influencing both consumer behaviour and investment trends. A notable 80% of institutional investors in Canada now incorporate ESG principles into their decision-making process. In fact, responsible investment strategies in Canada have seen a surge, with assets managed using these principles increasing from CAD$1.5 trillion in 2015 to CAD$2.1 trillion by the end of 2017​. This change is a reflection of the broader global movement towards Eco-Friendly Cannabis practices in response to the pressing issues of climate change and corporate responsibility in society.

The Canadian cannabis industry, integral to the nation's Cannabis Culture, is facing its own set of environmental challenges. One of the most significant is the carbon footprint associated with indoor cannabis production. Research indicates that producing one kilogram of cannabis can result in emissions comparable to those of three million average U.S. cars when viewed across all U.S. production. This alarming statistic highlights the urgent need for change in cultivation methods.

Fortunately, there are steps being taken towards more sustainable practices. Key strategies include the adoption of outdoor regenerative farming, rigorous inspection of production facilities, a transition from toxic to organic production methods, and the implementation of appellation models similar to those used in the wine industry​. These initiatives are not just about compliance; they represent a commitment to engaging knowledgeable stakeholders to drive the industry towards sustainable production.

At High Flyer Media, we recognize the importance of this green revolution in the Canadian Cannabis industry. As advocates for both the industry and the environment, we believe that the path to a cleaner, more sustainable future in cannabis production is not only necessary but also achievable. This journey towards eco-friendly cannabis aligns with our mission to promote brands that are not only innovative in their products but also responsible in their practices, ensuring a positive impact on both the industry and the planet.

The Current State of Cannabis Culture and the Environment

The Canadian Cannabis industry has witnessed a significant boom, especially since the legalization of recreational cannabis in 2018. As of June 2020, there was a notable expansion in cultivation spaces, with approximately 487 hectares of outdoor and 196 hectares of indoor growing space. This growth, while impressive, has brought its share of environmental concerns, including the clearing of forests for cultivation, and substantial energy and water usage, alongside the utilization of various chemicals​.

Indoor cannabis cultivation, in particular, has a substantial environmental footprint. It requires intense energy consumption, not just for plant growth lighting but also for air circulation and cooling systems to mitigate the heat generated by these lights. Additionally, the industry's reliance on resources such as fertilizers, pesticides, and herbicides adds to the environmental burden. Another significant issue is the excessive packaging of cannabis products, a requirement by Health Canada, which often results in non-recyclable plastic waste ending up in landfills​.

However, it's not all concerning news. Many Canadian cannabis companies are proactively working towards minimizing their environmental impact. Innovations in packaging are being explored, with a shift towards recyclable organics and metal cans. Some companies are leading the way with comprehensive environmental plans. For instance, Rubicon Organics, the first to receive the Environmental Farm Plan in Canada, operates with net-zero energy and waste, employing practices like carbon capture and using generated CO2 as a crop supplement​.

At High Flyer Media, we are encouraged by these initiatives. We believe that while the industry's rapid growth has presented environmental challenges, the response from Canadian Cannabis companies is a testament to their commitment to sustainability. By adopting eco-friendly practices, these companies are not just contributing positively to the environment but also aligning with the evolving values of their consumers, who are increasingly conscious of their ecological footprint. As we continue to support and promote these brands, we are also advocating for a greener, more sustainable future in Canadian Cannabis culture.

Innovations in Eco-Friendly Cannabis Production

In the Canadian Cannabis industry, the push towards eco-friendliness is not just a trend, but a necessary evolution. Leading this charge is Tilray Brands, a prominent Canadian cannabis producer, which has taken groundbreaking steps in minimizing single-use plastics and waste. They have transitioned some of their packaging and product components to hemp materials, setting a remarkable example for others in the industry. By 2023, Tilray aims to have all their flower, vape, and pre-roll packaging materials converted to hemp-based alternatives. This shift is projected to divert approximately 158,000 kilograms of plastic from landfills, a significant step towards environmental sustainability​.

Further innovation from Tilray includes the introduction of eco-friendly "hemp tubes" for pre-rolls and Pax Pods cartridges under their Good Supply brand. These tubes not only reduce environmental impact compared to traditional plastic containers but also meet strict regulatory standards. Additionally, Good Supply is set to launch hemp-composite mouthpieces for their range of 510 vape cartridges, replacing conventional plastic components. This initiative marks another critical step in their journey towards a complete transition to hemp-based products and packaging​.

At High Flyer Media, we are inspired by these innovations and recognize their significance in the Canadian Cannabis market. These eco-friendly practices reflect a growing awareness and responsibility towards the environment, aligning perfectly with the values and expectations of contemporary cannabis consumers. We believe that these advancements set a new standard in the industry, not only making a positive impact on the planet but also shaping the future of Cannabis culture in Canada. By promoting and supporting these sustainable initiatives, we are helping to pave the way for a greener, more responsible cannabis industry.

The Role of Consumers in Driving Eco-Friendly Cannabis

The influence of consumers in shaping the Canadian Cannabis industry, especially in terms of sustainability, is profound. Recent insights gathered from over 1,000 Canadian cannabis consumers reveal a clear demand for eco-friendly and organic products. This preference is not just a passive wish but translates into active purchasing decisions. For instance, a majority of consumers (79%) support the establishment of environmental standards and quality certifications (77%) for adult recreational cannabis products​.

The specifics of these consumer preferences are telling. A significant 92% of consumers prefer cannabis grown free from chemical pesticides, 88% without chemical fertilizers, and 85% not irradiated for pathogens. Moreover, 82.5% of consumers favour cannabis grown in a low carbon footprint environment, and 86% support cultivation methods that conserve water​. These statistics underscore a rising consumer consciousness about the environmental impact of their choices. While the primary concern remains the potency and health effects of cannabis, with 96% citing it as extremely to slightly important, cultivation methods free of pesticides are almost equally important (95%), even outpacing other environmental issues like having a low carbon footprint (84%)​.

This evolving consumer landscape presents both a challenge and an opportunity for the Canadian Cannabis industry. As High Flyer Media, we understand that our role goes beyond just promoting brands; it involves educating and guiding consumers towards making informed choices that align with their values. By highlighting the eco-friendly initiatives of our partner brands and showing their tangible benefits, we can encourage consumers to support those that are making a real difference. This consumer-driven demand for sustainability will, in turn, incentivize more companies to adopt greener practices, creating a virtuous cycle that benefits the industry, the environment, and the consumers alike.

Challenges and Opportunities with Eco-Friendly Cannabis

The Canadian cannabis industry, while burgeoning with potential, faces significant challenges that also present unique opportunities for growth and innovation. Key among these challenges is the struggle to achieve profitability. Factors such as oversupply, heavy taxation, competition from the black market, and evolving consumer demands have led to financial strain on many companies. Oversupply, a result of the initial hype post-legalization, has resulted in decreased prices and profit margins. The industry has also been grappling with price compression, where despite overall inflation, cannabis prices have seen a reduction of about 40%, further squeezing producers' margins​.

Additionally, the burden of taxes and regulatory fees is substantial. Excise taxes and licensing fees are progressively consuming a larger share of the shrinking profit margins, leaving many companies in a precarious financial position. Despite recognition of the need for reform, the path to change remains bureaucratic and slow​. Compounding these challenges is the persistent competition from the black market, with about 33% of consumers still opting for unregulated sources​.

On the flip side, these challenges also present opportunities. The evolving consumer preferences, highlighted by a shift from traditional dried flower to a variety of cannabis-derived products, indicate a market ripe for innovation. The decline in smoking as the primary consumption method, from 89% in 2018 to 70% in 2022, underscores the potential for new product development that aligns with changing consumer tastes​.

At High Flyer Media, we see these challenges as a call to action for the industry. We believe that by embracing innovation, focusing on consumer preferences, and advocating for regulatory reforms, the Canadian cannabis industry can not only overcome these obstacles but also thrive. Our role in this is to support and promote brands that are at the forefront of these changes, helping them connect with consumers who are increasingly looking for sustainable, diverse, and quality products. This alignment with consumer needs and values is not just good for business; it's essential for the long-term sustainability of the industry.

Case Studies

In this section, we explore case studies of Canadian cannabis companies that are leading the way in sustainable practices.

1. Simply Bare by Rubicon Organics: Operating from Delta, BC, Rubicon Organics' Simply Bare line exemplifies sustainable cannabis cultivation. Their practices include growing sun-grown cannabis in hybrid greenhouses with high efficiency LED lights, using living soil as a grow medium, and sourcing local inputs from the BC coast. They are certified organic through Fraser Valley Organic Producers Association (FVOPA) and are working towards meeting the standards of an Environmental Farm Plan, which includes CO₂ capture/reuse system, 100% rainwater recycling, and net-zero energy and waste​.

2. Good Buds by Good Buds Company: Based in Salt Spring Island, BC, Good Buds is a family-run company known for producing craft cannabis in organic soils. Their sustainability features include cultivation in recycled shipping containers, organic certification, using no chemicals for extraction (opting for ice water and heated press instead), implementing a rainwater recapture system, and using living soil. Notably, Good Buds is BC’s first Certified Living Wage Employer in the cannabis sector​.

3. The Green Organic Dutchman (TGOD): TGOD, located in Ancaster, ON, adopts a broad approach to sustainability, encompassing environmental, social, and corporate governance (ESG) aspects. Their high-tech greenhouses utilize sunlight/LED lighting systems and rainwater recapture systems, significantly reducing water and electricity use. They emphasize reducing landfill waste, and their facilities are built to Leadership in Energy and Environmental Design (LEED) standards. Moreover, TGOD actively participates in community programs, such as “Operation Pollinator” and Ontario’s “Barn Swallow Project,” and is the first cannabis company in Canada to complete an Environmental Farm Plan​.

At High Flyer Media, we believe these case studies are not just examples of sustainable practices but also represent the potential for innovation and leadership in the Canadian Cannabis industry. By showcasing these companies, we aim to inspire other players in the industry to adopt similar eco-friendly practices, thereby contributing to a greener future for Cannabis culture in Canada.

Conclusion

The journey towards eco-friendly cannabis production in Canada is a testament to the industry's commitment to sustainability and innovation. The challenges faced, from oversupply to stringent regulations, are significant but not insurmountable. Companies like Rubicon Organics, Good Buds Company, and The Green Organic Dutchman are leading examples of how sustainable practices can be successfully integrated into cannabis cultivation and business models.

As we've seen, consumer demand plays a pivotal role in driving this green revolution. With an overwhelming majority of consumers favoring environmentally friendly and chemical-free products, the market is clearly signaling a preference for sustainable cannabis options.

At High Flyer Media, we recognize that promoting sustainable cannabis practices is more than a business strategy; it's a commitment to the health of our planet and the well-being of our consumers. By supporting and showcasing brands that prioritize eco-friendliness, we not only contribute to a more sustainable future for the Canadian Cannabis industry but also align with the evolving values and preferences of our audience. As we move forward, our focus will remain on connecting consumers with brands that are not just innovative and high-quality but also responsible stewards of the environment.