ESG Spotlight: The Budding Cannabis Industry: A first look at ESG Considerations
Expanding market sparks investor interest
While investors are being drawn to the cannabis industry by the lure of an expanding market and profit potential, uncertainties around regulations, scalability and potential stock price corrections remain. Underexplored ESG risks could also present material concerns for management teams and investors entering the industry.
- We estimate that 181 publicly traded companies are involved in the global cannabis industry with a collective market capitalization of USD 41bn.
- Our industry segmentation shows that only 16% of cannabis producers and retailers are specifically targeting the recreational market.
- The Big Four have weak energy emissions management profiles, and one appears best prepared to mitigate ESG risks related to pesticide use.
Listen to this episode for additional insights on potential ESG issues for the cannabis industry.