Below is an excerpt from ISS ESG’s thought leadership paper “My Portfolio Is Going to Pot: ESG Risks Related to Investment in Recreational Cannabis.” The full paper is available for download from the Institutional Shareholder Services (ISS) online library.
The rapid growth of the cannabis market and its presence on stock markets around the world means that asset owners in particular are likely to already have at least some portfolio exposure to cannabis. Asset owners invested in alternative asset classes can be exposed through either venture and/or micro venture capital. Venture capitalists seeking high growth and increased portfolio performance have been the first into the cannabis market, particularly as legislation continues to be passed internationally to legalize parts of the industry.
By Duncan Paterson, Jay Simpson, and Emily Faithfull; ISS ESG