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420 with CNW — Why Cannabis Firms Need to Focus on ESG Principles

Cannabis is one of the fastest-growing sectors in America. After only a couple of years of legal sales, cannabis firms across the country have generated billions of dollars in sales and created hundreds of thousands of new employment opportunities. The global cannabis industry is projected to grow at a compound annual growth rate (“CAGR”) of 32.04% from 2021–28, reaching a valuation of $197.74 billion in 2028. As the market fills with competition, cannabis companies that want to stand out from the pack and attract investors will need to focus on Environmental, Social, and Corporate Governance (“ESG”) principles.

ESG principles are environmental, social and corporate governance criteria that determine a company’s ethical impact and sustainability. A significant number of private investors look at waste and sustainability when they are considering whether or not they should invest in a company. According to an Association of Investment Companies study that surveyed private investors, 56% of respondents indicated they care a great deal about climate change. With global warming and climate change becoming more pressing by the day, it’s only natural that investors would want to invest in companies that have ethical practices and make sustainability a priority.

The survey revealed that 65% of private investors consider ESG issues when they finance companies. Investors who were younger than 45 were much more concerned with ESG principles (77%) than those 45 and older (61%).

Ideally, you should dedicate a great deal of your attention to ESG principles if you wish to attract private investors. For starters, you can conduct a materiality assessment to find how best your firm can interact with and engage with the neighboring community. This involves forming a team with diverse skills, identifying stakeholders that can affect your business and engaging with those stakeholders to identify their most pressing concerns.

After that, you will be in a better position to create an integrated ESG report that discloses potential risks pertaining to three key areas: environmental, social, and corporate governance. The report can be used to convince senior leadership to act on potential ESG deficiencies, identify opportunities for more efficient resource allocation and satisfy stakeholder needs.

Furthermore, creating an integrated ESG report and acting on it will enable your communications and marketing team to promote the company’s ESG success stories. Ultimately, cannabis companies such as Flora Growth Corp. (NASDAQ: FLGC), which focus on ESG principles, will significantly increase their chances of attracting private investors and succeeding in the cannabis space.

NOTE TO INVESTORS: The latest news and updates relating to Flora Growth Corp. (NASDAQ: FLGC) are available in the company’s newsroom at https://cnw.fm/FLGC

About CNW420

CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of two informative articles each business day. Our concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. Articles are released each business day at 4:20 a.m. and 4:20 p.m. Eastern – our tribute to the time synonymous with cannabis culture. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.

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For more information please visit https://www.CNW420.com

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