Controversial Industry Review

  • Controversial Industry Review

    Posted by Miriam Davidovic on September 21, 2021 at 12:02 pm

    Other Disclosure Industries

    Please indicate if your company is involved in the production, operation, trade, or sale of any the following:

    Other industries that may cause social or environmental harm or are subject to stakeholder criticism or concern


    Although the word “cannabis” is utilized in company communications, it refers exclusively to wild cannabis sativa plants, meaning wild-grown industrial hemp that is available across Nepal and that the company pays a fee to the government to collect from community members. The company transforms what would otherwise be a waste product, burned and cleared in non-sustainable ways that would cause carbon emissions, into products and building materials. The company’s processes therefore transform a carbon-emitting waste removal process into a completely emission-free industrial process of transforming a natural waste product into commercial products.

    Miriam Davidovic replied 2 years, 2 months ago 1 Member · 3 Replies
  • 3 Replies
  • Miriam Davidovic

    September 21, 2021 at 12:09 pm

    Based on the information provided about the company, the company is subject to the controversial industry requirements found here (

    Companies with other cannabis or cannabis-derived products/services (such as hemp,CBD, etc.) are eligible for certification if the company can demonstrate that it complies with all relevant regulations in the production and sale of the product.

    Please note that the order of the responses was incorrect in the previous two responses as the page did not load properly when they were entered and therefore we were not able to properly edit our feedback. Kindly refer to this response.

    Question 1: Do you comply with all relevant regulations in the production and sale of cannabis or cannabis-derived products/services?

    – There are no local regulations related to the processing of wild-grown cannabis sativa plants into commercial products other than the required payment of a collection fee related to the offtake of wild hemp from community members that collect the plants from government-managed lands. The company does not process CBD or any medicinal derivatives of cannabis. The company’s products are exclusively 1.1. Hemp building materials 1.2. Hemp-based food and personal care products 1.3. Hemp fiber products including textiles, utility bags and purses, rope, fabric, home decor and further fiber-based consumer items.

    – The company will provide evidence of the payment of collection fees to the government and any further documentation related to this process.

    Question 2. What % of your revenue comes from cannabis or cannabis-derived products?

    Close to 100% of the company’s revenue during the last two years (2019-2020) was sourced from the processing of wild-grown hemp (cannabis sativa) into commercial products, with a small amount of revenue from co-organizing the Asian Hemp Summit. Although the Summit is a trade event, the company still sees revenue in this period as being 100% from cannabis or cannabis-derived products as the Summit’s revenue is a result of the sale of hemp products as well.

    For 2021, 1) The company also earns revenue from the processing of other building materials including lime putty and plaster additives. 2) Hemp-based construction advisory and project management services. Therefore, an approximate percentage for 2021 would be 90% industrial cannabis (hemp) products and 10% for these further two business areas.

    Question 3: Are you involved in the sale of medicinal and/or recreational marijuana products?

    Not whatsoever.

  • Miriam Davidovic

    September 29, 2021 at 8:49 am

    The attached Act is the only law in Nepal that addresses cannabis in use as “marijuana” or for medical purposes. The Act includes hemp in its definition of cannabis/marijuana; however, only the leaves and flowers. Shah Hemp does not utilize leaves and flowers for any purposes, but rather only stalks for processing industrial materials, and seeds for food.

  • Miriam Davidovic

    September 29, 2021 at 8:55 am

    Shah Hemp coordinates with local municipal and village offices to pay the required fees to collect hemp, and to transport hemp in stalk form.

    Supporting documents are:

    1. A translated permission to transport letter specifies that the company paid the required funds related to collecting the materials.

    2. The original permission to transport letter.

    3. A translation of the cash receipt provided with regards to the payment for hemp stalk collection.

    4. The original cash receipt.

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