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The Consequences of Poor Waste Management Practice for Cannabis Companies

Mismanaging your waste can be costly no matter the industry. The emerging cannabis sector calls for infrastructure and waste management protocol, but navigating this goal has more roadblocks than pathways. Different regions have unique protocols for waste management of cannabis specifically, with some requiring plans before approving licenses. Not following proper disposal practices can lead to numerous consequences, and we’ll dive into them in this article. 

Categorizing cannabis waste 

Anything containing THC must be destroyed or aggregated with a material that renders it “unusable and unrecognizable.” Though this term has no official legal definition, cannabis must, at minimum, be removed from all packaging and rendered unusable. This is intended to prevent THC from mixing with water and contaminating the soil or poisoning animals. Other forms of cannabis waste, like hemp or CBD, are considered organic waste, so long as they’re not mixed with hazardous material. Typically, jurisdictions consider marijuana flowers, stalks, roots, trim, leaves, residue, and wastewater to require hazardous waste removal. It’s essential to ensure proper documentation of your waste. 

Other managed materials that are flammable or otherwise hazardous also need to be properly disposed of. These could include solid or liquid wastes generated from production and processing. Many of these, like solvents, are flammable and considered hazardous and must be disposed of in accordance with state and federal guidelines. 

The environmental repercussions of improper waste disposal can be severe, so several states have crafted legislation specifically to manage dangerous materials generated from the cannabis industry to protect water and soil integrity. With fines at record highs, competition growing, and compromised by the illicit markets, Cannabis companies cannot afford to risk their brand integrity and be exposed legally and financially.

Efficient waste management is not only financially and legally beneficial, but it aids larger sustainability efforts as well. Preventing runoff aside, proper sorting encourages recycling, meaning your company will produce a smaller carbon footprint. 

Improper Waste Disposal 

Disposing of cannabis waste can take multiple forms, like disposal in a permitted landfill, incineration, composting, or by means of in-vessel digestion. Before moving to the disposal state, you must make sure you have records of the destruction and disposal ready. Improper documentation of cannabis waste is the leading cause of EPA violations and these can result in fines, liabilities, and the revocation of your business license. Repeat offenders can face increased fines and will likely be barred from working with cannabis in the future. 

Some examples of improper disposal include failure to document waste, failure to render THC unusable and unrecognizable, improper disposal of parts of the cannabis plant considered hazardous, or disposing of hazardous materials in a non-hazardous waste container. 

Because cannabis is considered hazardous waste, failure to comply with these standards will result in fines levied against the directors and senior officers associated with the cannabis company. The fines and punishments vary depending on your region but are almost always leveraged equally against management. The more infractions committed, the higher your fines will be and the greater the consequences you’ll face. 

States like Washington, one of the first to legalize recreational cannabis, dole out punishments of up to $15,000 per week for improper waste management and disposal. Failure to comply with state regulations could also result in cannabis license revocation. 

Material and Waste Management software like PegEx can help you eliminate costly errors like mislabelling waste, make audits easy and accurate, improve workforce productivity and eliminate careless mistakes. Investing in a program like this can help your business stop costly fines. 


Proper waste management is complicated, especially in the cannabis industry. Its contentious legal state has made waste disposal protocol complicated and inconsistent, but remarkably important. Reporting, documenting, and disposing of your waste is crucial for practicing good waste management and achieving compliance. Eliminate potential errors and mitigate risk by investing in a waste management software like PegEx. PegEx can help cut operational costs, assure proper documentation of waste and improve tracker accuracy. This can make the difference between successfully disposing of cannabis waste and failing. Don’t risk your business and download PegEx now at https://pegex.com/