Vicente LLP Aspiring psychedelic business licensees in Colorado now have clarification on the ESG criteria required for natural medicine license applications, as the Colorado Natural Medicine Division (NMD) has finalized the rules for Natural Medicine Businesses. Applicants only need to create a plan for one of the three ESG categories (Environmental, Social, Governance) in their licensing applications; however, applicants may create a plan for more than one category if they choose.
With the NMD’s final rule announcement, applicants now have a clearer understanding of what exactly the NMD wants to see in the ESG portion of a licensing application. Notably, the ESG rules specifically try to incorporate best practices that honor Indigenous and Tribal communities that have kept these psychedelic medicines sacred for millennia. The final rules also mandate that once an applicant is licensed, the licensee must make their ESG plan publicly available, either by publication on their website or by any other means where it may be posted and seen by the public.
Read on for a breakdown of the ESG requirements. View the complete final rules here . Environmental Impact Criteria
To meet the “Environmental Impact” criteria, the NMD requires that applicants “propose a strategic, measurable, achievable, real, and time-bound plan to incorporate principles of environmental resiliency or sustainability” into their proposed Natural Medicine Business. To satisfy this portion of the application, an applicant can demonstrate that the proposed Natural Medicine Business will do any one or more of the following practices if licensed: Engage in energy-efficient practices, such as sourcing energy from renewable sources and having all-electric appliances in their facility
Employ sustainable agricultural practices
Contribute to anti-pollution efforts such as the use of carbon offsets or biodiversity credits
Use sustainable packaging (e.g., reduce plastic intake and engage in recycling plans)
Engage in community trash clean-up efforts
Sponsor a local environmental charity Engage in other environmental practices that “reflect resilience, sustainability, or are otherwise commonly accepted as positive environmental practices by a corporation” While the NMD provided the above examples of what can satisfy the environmental criteria, this list is […]
Understanding ESG Requirements for Licensing Colorado Natural Medicine Businesses
