Better Health for All

Cronos Group sells cannabis for private and adult use, which is classified as a narcotic requiring strict controls by UN conventions, leading to a recommendation for exclusion by the Council on Ethics.

The company also sells medicinal cannabis and researches cannabinoids for skin health. The company's revenue from cannabis for private use, deemed to have negative health impacts by regulatory bodies, is a significant portion of its business. The company has faced multiple class action complaints and FTC settlements totaling over $50,000 for deceptive health claims related to CBD products in 2020 and 2021. In July 2021, Peace Naturals issued a voluntary recall of cannabis pre-rolls due to an incorrect potency label. The company offers Happy Dance products at an accessible price point and states a commitment to responsible marketing to avoid targeting those below the legal age of consumption. Cronos Group released a Marketing Code in 2021 to promote responsible marketing standards. The company is committed to advancing cannabis research, technology, and product development, including pioneering fermentation methods for cannabinoids. These fermentation methods reduce carbon footprint by 99.8% and environmental harm by 99% compared to traditional extraction. The company provides employees and their families with access to health and welfare programs, including physical and mental health benefits. In response to COVID-19, extensive safety measures were implemented to protect employees. The company provides resources for those struggling with substance use disorder, such as the SAMHSA National Helpline, and encourages industry cannabis literacy programs. Cronos Group's sponsored research at Technion in Israel is governed by the university’s Code for Responsible Conduct of Research and complies with IACUC Guidelines.

Fair Money & Economic Opportunity

Cronos Group Inc. is a global cannabinoid company focused on the research, development, production, and distribution of cannabis and hemp-derived products. Its core business does not involve lending, insuring, moving, or storing money, nor does it offer consumer credit products or financial services. Therefore, all KPIs related to fair money and economic opportunity, such as underserved client share, pricing fairness, exploitative fee exposure, inclusion initiatives, data accessibility, fair lending compliance, wealth building outcomes, profit reinvestment in community finance, financial literacy initiatives, debt burden ratio, geographic inclusion, and product simplicity, are not applicable to the company's operations. No evidence from the provided articles contradicts this assessment or offers specific data points for these financial services-related KPIs.

Fair Trade & Ethical Sourcing

Cronos Group reported zero instances of forced labor, child labor, or modern slavery in its activities or supply chains during the fiscal year ending December 31, 2024, with no related reports submitted through its Compliance Hotline.

The company updated its standard agreements in the 2024 reporting year to include terms directing suppliers to comply with all applicable laws regarding forced labor, child labor, and modern slavery. Vendors are also required to certify annually their compliance with the Vendor Code of Conduct. However, the percentage of suppliers covered by these enforceable ethical clauses is not specified, nor is the enforcement mechanism detailed beyond the annual certification. For its Happy Dance products, launched in October 2020, every product features traceable lot codes allowing customers to review Certificates of Analysis, but this applies only to a specific brand and not the entire supply chain. The company acknowledges that some raw materials, particularly cocoa for its Lord Jones® Chocolate Fusions™ launched in 2024, have higher forced and child labor risks due to country conditions or production practices, and has taken measures to address this risk. However, the share of spend on these high-risk materials is not quantified. The company did not identify a need to take any remedial measures during the fiscal year ending December 31, 2024.

Kind to Animals

No specific, concrete evidence was found in the provided articles to assess Cronos Group Inc. against any of the 'Kind to Animals' KPIs. While one article mentioned a specific brand's products as 'cruelty-free and vegan,' it explicitly stated no specific certification data was provided, and this information does not apply to the entire company's product portfolio.

Information regarding alternative testing methods, humane certifications for operations, wildlife conservation impact, ethical input substitution, supplier audits for welfare, cage-free sourcing, animal testing policies or volume, innovation investment in animal-free technologies, animal agriculture ethics, animal-free R&D collaboration, or public policy engagement on animal welfare was not explicitly stated or quantifiable across the company's operations.

Planet-Friendly Business

No specific, concrete data points were found in the provided articles that pertain to Cronos Group Inc. (CRON.US) and align with the quantitative thresholds of the Planet-Friendly Business KPIs. Information regarding environmental performance metrics, targets, or initiatives for CRON.US was not explicitly stated or was qualitative in nature, referring to specific production methods rather than company-wide metrics.

Articles referring to 'De Cronos Groep' or 'Cronos Groep' were disregarded as they pertain to a different entity (a Belgian IT company) than the specified CRON.US (Cronos Group Inc., a global cannabinoid company).

Respect for Cultures & Communities

Cronos Group has one formal partnership with an Indigenous entity, Indigenous Roots

, which is one of six strategic joint ventures. The Indigenous Roots facility is expected to create between 30 and 50 jobs, with current Cronos workers training First Nations employees. This represents 10-20% of the workforce from local communities, based on the company's total employee count of 250. Phil Fontaine, former National Chief of the Assembly of First Nations, leads the Indigenous Roots Joint Venture. No incidents of cultural appropriation or disruptions to cultural or heritage sites have been reported.

Safe & Smart Tech

The company holds IMC-GAP, IMC-GMP, and IMC-GDP certifications for medical cannabis operations in Israel, and Global GAP and ICANN GAP certifications for dried flower export to Israel, which are required for these specific operations.

It provides basic security awareness online training annually for personnel with company email and conducts periodic phishing tests. The company performs periodic assessments of existing technology hardware configurations, patches, security, and lifecycle, as well as periodic assessments of software versions, configurations, patches, and updates in consultation with providers. It relies on third-party services for penetration testing, security incident monitoring, managing enterprise-wide cybersecurity processes, incident response preparation, end point protection, and security awareness online training. The company has faced regulatory issues, including a C$1.34 million payment to the Ontario Securities Commission in October 2022 for failing to comply with financial reporting requirements, and an SEC Settlement Order in October 2022 requiring it to cease and desist from violations of specific sections of the Securities Act and Exchange Act, resulting in a loss of well-known seasoned issuer status for three years and inability to rely on certain private offering exemptions for five years. The company's Vendor Code of Conduct states that vendors must comply with all applicable laws related to data privacy and must never collect, use, or disclose personal information of Cronos Group employees, customers, or other third parties other than as provided for by contract. Vendors may only collect, use, and/or disclose confidential information and Cronos Group intellectual property in a manner specifically permitted by Cronos Group. Vendors must take reasonable steps to protect against cyber-attacks that might result in unauthorized access to, or the loss, theft, or corruption of Cronos Group information.

Zero Waste & Sustainable Products

Cronos Group utilizes proprietary fermentation methods for cannabinoid production that eliminate plant cannabis byproduct at the outset, resulting in up to 99% reduction in environmental harm and 99.8% carbon footprint savings compared to traditional extraction methods.

The company announced a realignment to improve supply chain efficiencies and reduce manufacturing overhead by partially exiting the Peace Naturals Campus. Cronos sources packaging from third-party suppliers and works with suppliers and vendors who share their values. The company holds IMC-GAP, IMC-GMP, and IMC-GDP certifications for cultivation, production, and marketing in Israel, and Global GAP and ICANN GAP certifications for dried cannabis export to Israel. The GMP certificate issued under European Economic Area GMP directives was retracted in 2022 due to the closure of the Peace Naturals Campus. Cronos Group had no waste disposal violations in the past three years.