This toolkit aims to guide CTA members, including growers, manufacturers, processors of hemp, pharmaceutical companies and formulators, online and high street retailers, clinics, distributors, and brands, in developing and implementing effective Environmental, Social, and Governance (ESG) strategies. Each section provides actionable steps tailored to the diverse categories within the CTA, helping members align with global sustainability goals and industry standards.
1. Environmental (E)
1.1. Sustainable Sourcing and Farming (For Growers, Processors of Hemp)
• Action: Adopt sustainable agricultural practices such as organic farming, regenerative agriculture, and water conservation techniques.
• Goal: Minimise environmental impact by improving soil health, reducing pesticide use, and promoting biodiversity.
• Metric: Percentage of hemp crops grown using sustainable methods, and the use of certifications like organic or regenerative agriculture labels.
1.2. Energy Efficiency and Carbon Footprint Reduction (For Growers, Manufacturers, Pharmaceutical Companies, Clinics)
• Action: Use energy-efficient equipment in cultivation, manufacturing, and pharmaceutical processing, and invest in renewable energy sources.
• Goal: Reduce operational energy consumption and greenhouse gas emissions.
• Metric: Energy use per unit of product produced and progress towards net-zero carbon emissions.
1.3. Waste Management and Circular Economy (For Processors, Manufacturers, Brands)
• Action: Implement waste reduction programs such as reusing hemp by-products (fibres, seeds) and recycling packaging.
• Goal: Contribute to a circular economy by minimising waste and finding uses for all parts of the plant.
• Metric: Waste diversion rates and volume of recycled or repurposed materials.
1.4. Sustainable Packaging (For Brands, Retailers, Distributors)
• Action: Transition to eco-friendly packaging materials such as biodegradable, compostable, or recyclable alternatives.
• Goal: Minimise plastic waste and support consumer demand for sustainable products.
• Metric: Percentage of products packaged in sustainable materials.
2. Social (S)
2.1. Community Engagement and Social Equity (For Clinics, Distributors, Pharmaceutical Companies, Retailers)
• Action: Support local communities through health education programs, job creation, and social equity initiatives that focus on reinvesting in regions impacted by cannabis prohibition.
• Goal: Improve community relations and promote social justice within the cannabis sector.
• Metric: Community engagement hours, financial contributions to local initiatives, and the diversity of beneficiaries supported.
2.2. Employee Wellbeing and Labour Standards (For Growers, Processors, Manufacturers, Retailers)
• Action: Provide fair wages, safe working conditions, and comprehensive health and wellness benefits to all employees.
• Goal: Foster a positive work environment that supports employee wellbeing.
• Metric: Employee satisfaction surveys, staff turnover rates, and the number of wellbeing initiatives implemented.
2.3. Diversity and Inclusion (For All Categories)
• Action: Ensure hiring practices encourage diversity in gender, race, age, and other demographics, with clear pathways for career advancement.
• Goal: Build a diverse and inclusive workforce that reflects a range of perspectives and experiences.
• Metric: Diversity metrics for hiring, promotions, and board representation.
2.4. Consumer Education and Transparency (For Brands, Clinics, Retailers)
• Action: Provide transparent labelling and detailed product information, particularly concerning CBD content, production methods, and sustainability claims.
• Goal: Build trust with consumers by offering clear, accurate information on product benefits and environmental impact.
• Metric: Percentage of products with comprehensive, transparent labelling.
3. Governance (G)
3.1. Ethical Business Practices (For All Categories)
• Action: Implement a Code of Ethics that covers regulatory compliance, anti-bribery measures, and fair competition policies.
• Goal: Ensure ethical and legal compliance across all operations.
• Metric: Regular compliance audits and reviews of business practices.
3.2. ESG Reporting and Accountability (For All Categories)
• Action: Develop an ESG reporting framework to track and communicate sustainability and governance efforts to stakeholders.
• Goal: Foster transparency and accountability in your ESG strategies.
• Metric: Annual ESG reports outlining key metrics and progress.
3.3. Board and Leadership Diversity (For Brands, Manufacturers, Pharmaceutical Companies)
• Action: Promote diversity at the board and leadership level by recruiting from underrepresented groups.
• Goal: Improve decision-making by ensuring diverse perspectives are represented in leadership.
• Metric: Percentage of leadership positions held by women, minorities, and other underrepresented groups.
3.4. Supply Chain Transparency (For Growers, Manufacturers, Retailers, Distributors)
• Action: Ensure supply chains adhere to ethical standards, including fair labour practices and sustainability goals.
• Goal: Build a transparent, responsible supply chain from raw materials to end products.
• Metric: Percentage of suppliers audited for ESG compliance.
4. Implementing ESG Practices
4.1. Create an ESG Task Force (For All Categories)
• Action: Establish an internal ESG team or task force to oversee the implementation and tracking of ESG strategies.
• Goal: Integrate ESG into daily operations and decision-making.
• Metric: Clear roles and responsibilities for ESG across the organisation.
4.2. Develop an ESG Strategy (For All Categories)
• Action: Craft an ESG strategy tailored to your business category, with clear goals and timelines for improving environmental, social, and governance performance.
• Goal: Make ESG a core component of your business strategy.
• Metric: Annual ESG objectives and regular progress reviews.
4.3. Stakeholder Engagement (For All Categories)
• Action: Engage with stakeholders—including employees, customers, investors, and local communities—to gather feedback and assess your ESG performance.
• Goal: Align ESG efforts with stakeholder expectations.
• Metric: Number of stakeholder engagement initiatives or surveys conducted annually.
5. Tools and Resources
5.1. ESG Reporting Platforms
• Use platforms like EcoVadis or CDP to manage and report on ESG metrics efficiently.
5.2. Carbon Footprint Calculators
• Tools such as Carbon Trust or ClimatePartner can help track and reduce carbon emissions.
5.3. Certifications
• Consider certifications like B Corp, Fairtrade, or Soil Association Organic to validate your ESG efforts.
5.4. Financial Incentives
• Explore grants or subsidies available for implementing sustainability initiatives, such as those offered by Innovate UK or regional environmental programs.
ESG Toolkit for Members
