Green America’s Green Business Network (GBN) is a national network of small to mid-sized companies that integrate strong social and environmental commitments into their business operations. The network is home to both rising social and eco enterprises and to well-established green businesses. GBN provides resources, information, and certification in specific industry sectors that are tailored to small businesses.

For GBN, “green” always means a commitment and transparency to both social justice and environmental sustainability. The Green Business Network is a program of Green America, a national membership organization founded in 1982 that works with consumers, businesses, investors, and supply chains to advance an economy that works for people and the planet.

GBN currently certifies businesses across 38 different industry sectors, including apparel, banks and credit unions, cleaning products, housewares, travel, farming, and more. GBN is always looking to fill industry certification gaps and is currently working to create a new certification standard for hemp-derived CBD (cannabidiol) products that are legally compliant (oils, salves, creams, etc.). This certification focuses on hemp-derived CBD only, not businesses with THC products at this time. The CBD industry is currently loosely regulated, and best practices are hard to define, which is why this certification is so important.

Open for Comment
Green America is launching an open comment for the standard period to seek advice and input on the proposed requirements. The comment period is done through a survey (which can be found at http://bit.ly/CBDgreensurvey) and will remain open until May 1. At that time, final decisions will be determined by the Green Business Network Board Committee and the Green America Certification Committee. Once finalized, this new hemp-derived CBD certification standard will play an important role in affirming for consumers that the businesses providing CBD products are operating in accordance with practices that support people and the planet.

The draft standard addresses a wide range of social and environmental issues facing CBD businesses and includes two tiers of certification: Standard and Gold. The levels of Green Business Certification signify a company’s track record in using their platform for social change—they identify the leading green businesses that have laid the groundwork for the green economy, and the emerging green businesses that will help bring it to scale. This is not a product certification, but rather a certification to reflect businesses’ sustainability initiatives.

“After conducting extensive stakeholder engagement with multiple hemp/CBD industry professionals and organizations, Green America identified the need for a CBD certification standard. We researched best practices and identified appropriate requirements for small-mid sized businesses within this industry. The Green Business Network is pleased to launch this certification standard to provide hemp/CBD businesses and their customers the benchmarks and seal of approval for being a truly green, sustainable business,” said Megan Stansell, certification manager for the Green Business Network.

Range of Criteria
Required criteria for this certification address social and environmental initiatives in 10 different categories:

Company: All businesses in all certified industries must have a social and environmental mission and vision statement.

Legal Compliance: The FDA has made hemp a legal product in the U.S. per the FD&C Act. However, legal compliance will depend on local (and state) laws and regulations. These businesses must prove their compliance at all levels.

Cultivation Practices: Businesses must prove they are supporting sustainable growing practices, such as building soil health, maximizing the use of recycled materials, and applying energy efficient technologies.

Materials Used: This category applies to the actual CBD products that are made (oils, salves, creams, etc.). Products must be free of phthalates, certain chemicals, and synthetic fragrances, among others. Businesses’ use of solvents during the extraction process must be transparent and animal testing is prohibited. Additional requirements to meet Gold certification include use of certified organic hemp and fair-trade ingredients.

Product Safety: This section ensures transparency around CBD products, and is a common practice for CBD/THC products. Criteria include having traceback/recall protocols in place, using child-proof containers, testing products in third-party laboratories, and storing the product in a safe environment.

Manufacturing: Whether done by the business directly or a manufacturer, these criteria will show transparency around the manufacturing process and ensure ethical and sustainable labor practices are in place.

Product Packaging: Packaging of products is important to consider and must be recyclable and compostable. Packaging should be minimal and use post-consumer content. Additional Gold requirements include offering a take back program or a reuse program.

Employment: Fair employment and labor practices are a key part of the green economy. Certified companies prove that they treat their employees better than average.

Education: Educating consumers and the community on sustainable practices is important to implement behavior change. Businesses must educate their consumers on proper disposal of their products, advocate for green practices in their industry (e.g., support for hemp/cannabis research), and establish a program from receiving input from both internal and external stakeholders. One additional Gold requirement includes participating in industry associations and mentor programs.

Green Office: Businesses must implement sustainable practices in their office or facilities; these criteria also apply to home offices. Items addressed in this category include energy efficiency, recycling and composting, landscaping, and use of paper products, among others.

Triple Bottom Line
The Green Business Network offers a third-party certification that enables business members to validate for their consumers and clients that their operations revolve around sustainability. Social and environmental sustainability—maximizing positive outcomes and minimizing negative impacts to support the well-being of current and future generations—is increasingly understood as crucial to the viability of life on Earth. That is why the Green Business Network’s certification program addresses the triple bottom line of sustainability—people, planet, profit.

Each certified business documents that they are environmentally responsible in the way they source and manufacture products, and the way they run their operations and facilities; are committed to strong, socially equitable practices that benefit the well-being of workers, customers, suppliers, and the greater community; and are accountable for their work by improving their progress, and operating with radical transparency in every facet of their business. This certification program plays a key role in ensuring small businesses are pursuing all three goals throughout their operations. Businesses that do not meet the certification for their industry sector receive feedback on the changes needed to become a certified green business.

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About the Author: Fran Teplitz is Executive Co-Director for Business, Investing & PolicyDirector of the Green Business Network. She is also a Senior Fellow, Responsible Investing. Fran joined Green America in 2000 and has served in a variety of positions including a focus on Green America’s Green Business Network, socially responsible investing and banking, climate and energy, and public policy. Prior to Green America she worked on peace and disarmament issues and human rights in Central America. For more information regarding Green America’s Green Business Network Certification Program, contact: [email protected]; www.greenamerica.org.