While the cannabis industry is often seen as forward-thinking, it struggles to fully meet its obligations. Businesses in this sector face constraints due to the changing landscape, shifting consumer preferences, and evolving regulations that impact their profitability. Moreover, tax regulations, such as Section 280E, create hurdles by limiting deductions for Environmental, Social, and Governance (ESG) initiatives. In this case study, we will explore how one company addresses these challenges while remaining committed to ESG principles.
Problem:
The PACT Act has banned the use of artificial flavors in pod-based nicotine vapes. However, a loophole still allows disposables to contain these flavors. This use of all-in-one, disposables, has extended to the cannabis industry, which is experiencing impressive growth of 34% annually.
Gen Z, the largest target market for this industry, values authenticity and social consciousness. It is crucial for companies to cater to these preferences while upholding ESG principles. This case study focuses on Mission LLC and their efforts to tackle these challenges through a recycling program.
Mission LLC and the Recycling Program:
Recognizing the need to address e-waste and the environmental impact of disposable cannabis vaporizers, Mission LLC has developed an innovative recycling program. By partnering with private organizations and working closely with regulatory bodies, Mission LLC aims to establish a local recycling model that can be replicated nationwide.
The recycling program focuses on collecting and recycling lithium batteries commonly found in disposable vaporizers. This approach significantly reduces e-waste and promotes sustainability. By repurposing these batteries, Mission LLC contributes to a more circular economy within the cannabis industry. This not only addresses the environmental concern of e-waste but also positions Mission LLC as a leader in sustainable waste management.
Mission LLC's recycling program not only demonstrates their commitment to environmental responsibility but also reflects their dedication to broader ESG principles. By actively addressing e-waste, they align with the social and governance aspects of ESG. Their efforts have a positive social impact by reducing the environmental footprint of the cannabis industry, contributing to a more sustainable future. Additionally, their recycling program showcases good governance practices through collaboration with regulatory bodies and responsible waste management protocols.
In an industry where upholding ESG principles can be challenging, Mission LLC stands out as a company that has successfully navigated these obstacles. Through their recycling program, they have addressed the issue of e-waste and positioned themselves as leaders in sustainable waste management within the cannabis industry.
Their commitment to ESG principles reflects their dedication to social and environmental responsibility, contributing to a more sustainable and authentic cannabis industry. As the industry continues to evolve, companies like Mission LLC that prioritize ESG practices are likely to gain a competitive edge and support the overall growth and sustainability of the sector.
