Hut 8’s ESG report sheds light on sustainability efforts in the crypto industry Hut 8’s ESG report sheds light on sustainability efforts in the crypto industry
Hut 8's ESG report highlights the crypto industry's sustainability challenges and high rates of energy use.
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Updated: Jul. 5, 2023 at 8:05 pm UTC
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Hut 8 Mining Corp, one of North America’s largest digital asset miners, has recently published its 2022 Environmental, Social, and Governance (ESG) Report. The report, which aligns with the Sustainability Accounting Standards Board (SASB) and the Global Reporting Initiative (GRI), is a step in the crypto industry’s ongoing struggle with sustainability.
The cryptocurrency industry has been under scrutiny for its high energy consumption and potential environmental impact. Hut 8’s report comes at a time when investors are increasingly looking at ESG factors in their investment decisions, and regulators are considering measures to mitigate the environmental impact of industries like crypto mining.
In the report, Hut 8 outlines its commitment to achieving carbon neutrality by 2025 and its efforts to offset 40% of its 2022 scope 1 and 2 emissions. It also reports a carbon-free grid mix of 94% and 97% for its high-performance computing (HPC) data centers in Ontario and British Columbia, respectively, highlighting its attempts to reduce its carbon footprint.
However, the report also raises questions about the broader challenges facing the crypto industry in its quest for sustainability. While Hut 8’s efforts are commendable, the industry’s overall energy consumption remains high, and the transition to more sustainable practices is complex and costly.
On the social and governance fronts, Hut 8 reports zero total recordable workplace safety incidents in 2022 and diversity in its executive management and board. These are important factors for investors considering ESG criteria, but they also highlight the broader challenges the tech industry faces in terms of diversity and inclusion.
In comparison to other miners and industries, Hut 8’s ESG risk rating is considered medium, ranking 586 out of 1114 in the software and services industry group, according to Sustainalytics. This ranking reflects the company’s exposure to industry-specific material ESG risks and how well it is managing those risks.
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Jacob Oliver
Jacob Oliver is a recovering academic and English teacher turned crypto journalist and web3 writer. He holds a Ph.D. from the University of Washington.
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Hut 8
Hut 8 is a digital asset miner with two digital asset mining sites located in Southern Alberta and a third site in North Bay, Ontario, Canada.