wine industry sustainability

Key Takeaways:

  • The recently released IPCC Report shows irreversible harm to the global ecosystem.
  • Fund managers focused on ESG criteria will have an increased focus on environmentally conscious companies and substantial sums of investment dollars will likely flow into companies that commit to more aggressive ESG plans.
  • Cannabis companies could benefit from looking at how industries like the wine industry have embraced sustainability.
  • In an industry where competition for capital is fierce, adopting ESG principles is an effective way for cannabis companies to not only foster good will, but to foster investment.

On Monday, August 9, 2021 the United Nations Intergovernmental Panel on Climate Change Sixth Assessment Report (the “IPCC report”) sent shock waves through the financial markets and the world in general. This report, the most comprehensive of its nature released since 2013, made it abundantly clear that much of the damage incurred by the global ecosystem will be irreversible and the harm is accelerating at an alarming rate. This has catalyzed investment funds and asset managers focusing on ESG investments to rethink their approach. According to Bloomberg Law, Chris Meyer of Praxis Mutual Funds, a well established socially responsible investment firm stated that the report “…changes the calculus. We will need to have a sharper focus. This report shows that investors are not moving quickly enough.”  Financial investment itself may not be able to curb the problem, however, what is certain is that fund managers focused on ESG criteria will have an increased focus on environmentally conscious companies and substantial sums of investment dollars will likely flow into companies that commit to more aggressive ESG plans.