Is Cannabis a Responsible Investment?

Do the medical applications of cannabis make it an ESG-positive investment, or do its recreational uses make it one for ESG investors to avoid?

Andrew Willis 15 July, 2019 | 10:17AM

cannabis

It was a fateful day in November 2016 when Canopy Growth Corporation was crowned the first “cannabis unicorn”, reaching a billion-dollar valuation after soaring nearly 400% in the preceding year. What followed was a deluge of mainstream media coverage, and some soul-searching among average investors weighing whether they were ready to jump on the profit bandwagon or sit on the sidelines.

Many investors choosing to pass on the opportunity cited unrealistic valuations, retirement goal incompatibilities, and - particularly relevant to the sector - a mismatch with personal values. The industry is built around a drug with a cloudy net societal benefit at best, after all.

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Andrew Willis  Andrew Willis is a content analyst at Morningstar Canada 

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