one of the largest miners of digital assets in North America, has recently released its 2022 Environmental, Social and Governance (ESG) 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 come 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 achieve carbon neutrality by 2025 and its efforts to offset 40% of its Scope 1 and 2 emissions by 2022. It also reports a net carbon net mix of 94% and the 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 cryptocurrency 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 expensive.
On the social and governance fronts, Hut 8 reports zero total recordable workplace safety incidents by 2022 and diversity in its executive leadership and board. These are important factors for investors considering ESG criteria, but they also highlight the broader challenges facing the tech industry in terms of diversity and inclusion.
Compared to other miners and industries, Hut 8’s ESG risk score is considered medium and ranks 586 out of 1,114 in the software and services industry group, according to Sustainalytics. This ranking reflects the company’s exposure to material industry-specific ESG risks and how well it is managing those risks.
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