Not so long ago, boardrooms were only interested in one metric – profit.
Other than hitting sales targets – and satisfying demanding shareholders – little else mattered. Any talk of environmental, social and governance policies would have been met, in the main, with indifference.
Yet while the profit and loss column clearly remains vital, those once-fringe issues are top of the agenda in many of today’s boardrooms.
And for Spring Sciences Australia (SSA), environmental, social and governance policies were a core foundational pillar as it developed its business model, at home and abroad.
At its high-tech indoor facility in Caboolture, just north of Brisbane, the business has initiated a broad range of corporate and environmental strategies, setting some ambitious targets in the process.
Aided by its artificial intelligence software, which controls every aspect of the growing cycle – and throws up data on every cultivation output variable – SSA is, over the next 12 months, aiming to achieve reductions in energy consumption, water use and overall waste by 15%, 20% and 10% respectively.
“Our commitment to environmental stewardship and social responsibility is foundational to who we are as a business,” said SSA chief executive Dr Steve Newbery.
“While achieving operational excellence and hitting our commercial targets is crucial, we believe that success is also measured by our contribution to society, the well-being of our people and our impact on the environment.
“By setting ambitious sustainability goals and fostering a safe, supportive workplace, we’re investing in a future where our business not only thrives but also makes a positive, lasting difference.”
Aside from its internal sustainability goals and workplace practices, SSA has immersed itself in social and community projects.
As it plotted its entry into the medicinal cannabis market, and explored the therapeutic benefits the medicine provides, Newbery said the firm became particularly aware of the mental health challenges faced by veterans and first responders.
That ultimately led to a collaboration with First Response Medical, led by specialist consultant David Lott, and OnTracka, the clinical trial and real-world data technology company, as a means of measuring the outcomes of the patients in the program.
“There are a large number of veterans and first responders who suffer mental anxiety, stress and trauma as a consequence of their job and the situations they’re exposed to,” Newbery said. “You can’t fail to be moved by their stories. It’s exactly the type of program we want to be involved in.
“These partnerships also contribute valuable data to ongoing research, advancing medical knowledge for these critical groups.”
Lott said he was “proud to collaborate” with SSA in helping to provide assistance to those who face “immense physical and mental demands on a daily basis”.
“Access to medicinal cannabis can be a game-changer, providing a natural option for managing stress, trauma, and chronic pain,” Lott said. “This partnership allows us to offer vital resources that improve their quality of life and acknowledges the sacrifices they make in service to others.”
SSA’s social responsibility work is not limited to Australia, however.
Internationally, a three-way collaboration is underway involving Botanic Wellness and South Africa-based cultivator Verve Dynamics to empower communities and generate healthcare benefits in Lesotho, a Southern Africa nation whose government is striving to improve the socioeconomic conditions of its 2.2 million citizens.
In a far-reaching project several months in the making, the trio are working on several hemp and cannabis initiatives in partnership with local communities that, it is hoped, will provide “transformative” benefits by creating economic opportunities for small-scale farmers and by tackling social inequalities.
The initiative leverages local resources and will train community members in cannabis cultivation practices to provide feedstock for cannabinoid extraction, and the production of compostable, hemp-based sanitary and phyto-resin products to reduce plastic waste.
“Like many geographies around the world, plastic is the scourge of Africa,” Newbery said. “Plastic pollution should be the number one environmental concern globally as it remains out of control.”
The project will also involve green construction with hempcrete, a durable, eco-friendly building material, to address housing needs.
To kick start the cultivation operation, Botanic Wellness has donated $6m of industrial cannabis seed, with the harvest to be used for CBD extraction.
As the project develops, the aim is to establish a local cooperative of growers that will ultimately operate as standalone commercial venture.
Over time, it is hoped that global charities and philanthropists will provide further support and impetus to the venture which, Newbery said, could have Africa-wide implications given the surge of interest in cannabis cultivation in the continent.
Verve Dynamics, founded by chemical engineer and phyto-extracts expert Richard Davies, already operates a cannabis extraction facility in Lesotho, with SSA currently undertaking due diligence on a significant investment designed to expand production to help service the company’s supply of product into the Australian market.
Newbery explained that the scope of the Lesotho initiative widened as discussions gathered momentum.
“We conceived a business plan relating to extracts and flower, but as we spoke to Richard about his own social programs and met with the wives of local chiefs in Lesotho, we realised there was a far broader impact that we could have on the local community by creating a completely self-sustaining industry with significant social benefit,” he said.
Initially focused on the production of flower and extraction capabilities, the plan now extends to using industrial cannabis to help address the chronic lack of women’s sanitary products and to improve access to women’s healthcare, while creating jobs and helping combat a social housing crisis.
So scarce are sanitary products that Verve Dynamics, as a part of its own community support, transports supplies to local communities from Cape Town, 1,000km to the southwest of Lesotho.
Along with the launch of sanitary hemp products, which have been designed by Botanic Wellness, the collaboration will look to manufacture other hemp-derived, phyto-resin products, including everyday items such as straws, bags, and cutlery. All will be compostable, delivering significant environmental benefits for a country plagued by an over-reliance on plastic.
“The aim is to create a self-sustaining, eco-friendly, multifaceted industry built around a locally cultivated product and reduce the reliance on petrochemical products,” Newbery said.
“The sanitary products are made from hemp fibre and offer a sustainable alternative to traditional, and inaccessible, sanitary products. This endeavour aims to not only improve women’s health and hygiene in underserved communities but to create new jobs and skill-building opportunities for local women.
“It highlights a commitment to tackling social inequalities by providing essential resources that enhance well-being.”
Botanic Wellness chief executive Cary Stynes described the project as an “incredible opportunity to empower local communities while making a meaningful impact on public health and the environment”.
“Our commitment to this partnership underscores our dedication to innovative, socially responsible solutions that can drive positive change,” he said.
Following the development of local cultivation and processing facilities, a second phase will see the introduction of new products, before distribution is expanded to Southern Africa through partnerships with local cooperatives.
In a move to generate wider healthcare benefits, CBD capsules will be provided, at cost, to local communities, many of which have been ravaged by HIV.
Lesotho has one of the highest HIV rates in the world, with almost 23% of the population infected. And while evidence remains limited of CBD’s impact on HIV symptoms, it is felt the general health benefits for the local population could be significant.
As conversations continued over the joint Lesotho project, attention turned to what further benefits could be realised by hemp, and cannabis farming. The partnership landed on social housing.
Newbery said: “There is a chronic shortage of housing in this part of the world, so we have designed a model where the dome of the house is sprayed with hempcrete which creates durable housing.
“It is not only cost-effective but also environmentally sustainable.”
The project will train local builders and utilise local resources that will not only support the growth of green construction practices but enable communities to be self-reliant.
Newbery said the Lesotho initiative is dedicated to creating a sustainable hemp industry with lasting economic and social benefits.
“By fostering local cultivation and manufacturing, the program aims to boost economic growth, enhance health outcomes and provide long-term improvements in the quality of life for the residents of Lesotho,” he said.
Such projects, together with its wider environmental and social governance strategies, are “deeply integrated into our overall business model,” he added.
“The company’s initiatives in Lesotho, its commitment to veterans and first responders and focus on sustainability set it apart as a socially responsible and environmentally conscious business,” Newbury said.
“By continuing to prioritise ESG initiatives, SSA is not only positioning itself for commercial success but also contributing positively to society and the environment.”
