4.3. Sustainable business with hemp

Key learning outcomes

• To provide practical insights into the business sustainability of hemp industry 

• To introduce relevant business models etc.

At the same time, it is important to choose your unique direction from the plethora of possibilities, to understand the positioning of the modelled business within the value chain, whether it is an intention related to cultivation and primary processing, production of fibres, hurds or seed foods, extracts, cosmetics, textile, construction or even the creation of unique craft or artistic artefacts and their distribution in local markets.

In all these areas, hemp offers a comparative advantage. When grown properly, it improves soil structure, promotes biodiversity, reduces water consumption and increases the yield of subsequent crops. In doing all this, it sequesters atmospheric carbon dioxide efficiently, making even the raw materials derived from it, carbon negative. This can then be valorised in use and, if independently assessed, the positive climate impact can be 'sold', either in the form of carbon credits or through targeted communication to environmentally sensitive buyers and customers.

The quality of raw materials and derived materials is another area that allows profiling of sustainable business. Durable, biodegradable, recyclable, plant-based, bio-based, waste-free, health-promoting, non-allergenic... These are just a few adjectives that can be used to describe various hemp products. To be able to label products and services with these attributes, it is essential to set up the processes in such a way that these natural properties are not lost.

Hemp grown on hundreds of hectares using intensive cultivation techniques and agrochemicals loses much of its positive impact on the soil and nature, and its CO2 balance can be reversed.

Not every hemp product we purchase can immediately contribute to CO2 balance. When exploring options like 'hemp clothes,' it is great to see the growing popularity of hemp as a sustainable fibre. To make the most informed choices, consider looking for high-quality brands, locally produced products, which prioritise durability and colour retention, ensuring your garments stay vibrant and last longer.

Similarly, when it comes to 'hemp cosmetics,' many products incorporate hemp seed oil due to its beneficial properties. By carefully reviewing ingredient lists, you can find items that use a higher percentage of natural hemp oil and fewer synthetic components, contributing to your health and well-being. It is also great to choose products made from responsibly sourced hemp, as this supports sustainable practices and promotes better quality.

We must not forget that people are also part of sustainable solutions. The way we treat our employees and the relationships we manage to establish with our suppliers and clients, the way we are "wired" into the local community, all of this "counts" in the case of corporate sustainability. It is possible to be an arrogant cannabis businessman, who cheats his employees, exposes them to health risks, does not compensate for overtime, doesn't pay farmers on time, uses unfair commercial practices, and considers local associations as uninteresting losers. But it is certainly not sustainable.

Before we look at some examples of companies doing business with hemp, let's take a look at broader concepts that allow us to incorporate sustainability principles into the very core of the business.