Beijing,China - SAI’s Future First strategy aligns the Environmental, Social and Governance (ESG) initiatives to the material issues that impact its stakeholders, business and the world.
As a leader in supercomputing and crypto mining industry, SAI has the opportunity to harness the power of technology in order to create a more sustainable future. SAI is committed to protecting the planet, connecting everyone to the benefits of the digital world.
SAI’s corporate sustainability program is comprised of its environment, social and governance (ESG) initiatives that focus on material issues to positively impact the key stakeholders.
The ESG report will be published at an annually basis.
SAI followed GRI standards to prepare this report.
Message from the CEO
SAI was established in 2019 and has been committed to solving the problem of energy costs of computing. Bearing the mission of becoming the world's first horizontally integrated clean energy technology company, SAI serves its customers around the world with business solutions from computing power to electricity to heating.
Looking back at the development history of several industrial revolutions: the first industrial revolution, the heating from steam made it possible to replace hand production with machines in transportation and manufacturing industrials; The second industry revolution began with electricity and electrification in the electrical industries. The introduction of hydroelectric power generation in the Alps enabled the rapid industrialization of coal-deprived northern Italy, beginning in the 1890s.; in the third scientific and technological revolution, the computing industry has greatly shortened the time and space barriers of the physical world through computing power. The value created by each kilowatt-hour of electricity is getting higher. In this process, SAI discovered that the energy efficiency improvement process in the carbon-based world (that is, the physical world of human real life) can be understood as the improvement of atomic energy efficiency. Similarly, the transfer of value in the silicon-based world can also become more efficient through the global network of digital finance and encrypted assets. In the silicon-based world, the efficiency of value and information transmission is mainly improved by continuously improving electronic energy efficiency. And with the development of human society and the advancement of science and technology, this trend will further accelerate.
SAI believes that all developments in the silicon-based world must be based on computing. The computing core costs can be summarized as energy cost(including heating and electricity), and computing cost(including chip and algorithm). If SAI stretches the timeline, SAI will find that energy costs will account for the largest proportion.
According to the recent studies, about 5% of the total global power generation in 2020 is used for computing. However, according to official forecasts, 15% to 25% of global power generation by 2030 will be used for computing industry.
Bitcoin is at the forefront of the computing industry. Bitcoin mining, as an important part of the Bitcoin ecology, undertakes the task of maintaining the security and stability of the system. At present, the total global mining load is about 8 million kilowatts, which has grown to 40% of the Chinese traditional IDC volume in only ten years, and it still maintains a rapid growth trend far exceeding the growth rate of traditional IDC.
Because of the common mission of carbon neutrality, traditional industries are now paying attention to the replacement of fossil energy and the promotion and use of clean energy. In the computing industry, more and more people also pay attention to whether the computing power uses clean energy, and whether the process of generating computing power meets the requirements of environmental friendliness and sustainability.
However, most of the bitcoin mining centers are still powered by coal power plant. As more renewables come online, they create a tricky problem for grid operators. Since people cannot control how much sun shines or how much wind blows, there’s a constant risk of either too much or too little energy flow. When there’s too little, operators can compensate by firing up hydro or fossil fuel generators which are more reliable. But dealing with too much energy presents a complex challenge.
From the perspective of the clean computing business, SAI has four main technology segments: SAIHEAT (chip waste heat utilization), SAIWATT (clean power consumption), SAIBYTE (computing cloud network system), and SAICHIP (new computing chip).
SAIHEAT, by providing an integrated solution of “liquid cooling + waste heat utilization”, collects the waste heat generated in the computing process and reuses it, helping to reduce the electricity cost dramatically while replacing the traditional heat source with clean energy. SAIWATT (clean power consumption) uses idle energy such as hydro-power, wind power, and waste gas power to generate electricity for computing, and realizes idle energy consumption and peak shaving, as well as costs reduction for both energy owners and SAI as the operator. SAI also offers computing power cloud services and new chip materials to jointly reduce the cost of the computing industry.
With cutting-edge clean energy-based computing and energy center, as well as waste heat utili-zation technology and power consumption technology, SAI can reduce up to 30% of energy consumption cost in the computing process, while cutting down infrastructure investment, thus leads to a high-profit margin for the company and its partners. In the future, SAI will establish compu-ting and energy centers around the world to provide clean energy solutions to more customers.
Being the world's first digital asset company to sign UN Climate Neutral Now Initiative, SAI’s value proposition is simple: to provide its customers with lower-cost access to clean computing power and help them realize improved ROI on BTC investments.
According to the recent SAI Carbon Footprint Report, SAI is able to achieve carbon neutrality in 2022.
SAI's development philosophy has always been to do its best to make contributions to society. As the first company in the industry to publish a carbon footprint report and ESG report, SAI wants to set an example and lead other companies in the industry to make changes and contribute their efforts to promote carbon neutrality for the entire society.
While the world will need to reach net-zero carbon emission, those people who can afford to move faster and go further should do so.
Together, SAI makes world better.
Addressing Climate Change
Climate change includes both global warming driven by human-induced emissions of greenhouse gases and the resulting large-scale shifts in weather patterns. Though there have been previous periods of climatic change, humans have since the mid-20th century had an unprecedented impact on Earth's climate system and have caused change on a global scale.
The largest driver of warming is the emission of gases that create a greenhouse effect, of which more than 90% are carbon dioxide (CO2) and methane. Fossil fuel burning (coal, oil, and natural gas) for energy consumption is the main source of these emissions, with additional contributions from agriculture, deforestation, and manufacturing. The human cause of climate change is not disputed by any scientific body of national or international standing.
Temperature rise on land is about twice the global average increase, leading to desert expansion and more common heat waves and wildfires. Warmer temperatures are increasing rates of evaporation, causing more intense storms and weather extremes. Impacts on ecosystems include the relocation or extinction of many species as their environment changes, most immediately in coral reefs, mountains, and the Arctic. Climate change threatens people with food insecurity, water scarcity, flooding, infectious diseases, extreme heat, economic losses, and displacement.
The debate about Bitcoin's massive carbon emissions and environmental degradation has not reached its goal. According to the analysis below, the result shows that the consumption of Bitcoin mining is less than the goldmining, financial and computer industries.
Bitcoin has been dealing with scepticism since its inception. Some theories are wilder than others, but arguably one of the most latched-onto debates has been around Bitcoin’s energy consumption and its alleged harmful level of emissions. The traditional banking system, according to a recent research, total consumption for banks during a year only on three metrics, is around 26 TWh on servers, 87 TWh on branches and 26TWh on ATMs for a total of close to a 140 TWh a year. Bitcoin consumes 1/4 the power of banks. But, this is just the start for bitcoins. As SAI moves towards making every transaction using cryptocurrency, the power consumption decreases.
As the clean computing industry develops more mature, Bitcoin mining is more conducive to reducing the total carbon emissions of human society, and then achieving the goal of carbon neutrality.
Renewable energy approach
CoinShares asserts that, given the amount of energy used, Bitcoin mining is more driven by renewable energy than almost every other large industry in the world. A more useful comparison is the way the industry has developed compared to gold and traditional finance (see below).
Comparison of Environmental Costs
As a result, estimates of the percentage of renewable energy used in Bitcoin mining vary widely. According to a CoinShare report, published in December 2019, it showed that 73% of Bitcoin's energy consumption was carbon neutral, mainly due to the abundance of hydropower in major mining centers such as Southwest China and Scandinavia.
In summer, all the electricity that SAI consumed are 100% from renewable energy. SAI will keep increasing the proportion of the renewable energy in its energy consumption portfolio.
SAI entered into a long-term renewable energy supply agreement with regional renewable energy power stations. Those power stations agreed to supply SAI’s Data center and crypto mining center with a 100% renewable energy supply.
SAI increases the energy efficiency and helps reduce global carbon emissions in the computing, energy and heating industries.
l The energy structure
Buildings use more than one-third of the world’s energy, most of it for heating spaces and water. Most of this heat is generated by burning natural gas, oil, or propane. And where these fossil fuels are consumed, greenhouse gas emis-sions are a given.
l Electric heat pumps
Electric heat pumps, first widely used in the 1970s in Europe, could be the best solution to cut that fossil fuel use. They could slash the carbon emis-sions of buildings by half. A heat pump uses a compressor and refrigerant to move heat from one place to another. It can extract heat from outside air, even in the winter, and release it inside a house, basically like an air-conditioner running in reverse.
l The traditional heating flow
The traditional heating flow is shown as below. It involves many components in order to build up the whole system. It will generate massive carbon emissions during the production of those machines, pipes, etc. Also, considering about the transportation, maintenances charges, the traditional heating industry needs a brand-new revolution which can reduce the carbon emissions of the whole system and enable the whole society to reach to carbon neutrality in near future.
Hydro Power Peak Cut
During water season, taking the hydropower plant as an example, 37.5% of the generated electricity will be wasted because it is over the capacity that required by the consumers.
SAI built up a few assumptions to test how much carbon emissions can SAI reduces:
By using the hydropower electricity, computing centers can achieve 0 emissions while accelerating the return on both energy and computing investments.
Associated Gas Electricity
Natural gas is often produced as a by-product (i.e. associated gas) during oil extraction. If the oil project has been planned in a way that does not incorporate access to a gas market or other productive uses, then there are only a few options left for the gas: an operator must choose whether to use it onsite for its own operations, reinject it into the ground, flare it or vent it to the atmosphere.
It will be important to minimize the flow of new projects that might require flaring; this is a question of regulation and careful project selection and design. For existing sources of flaring, in the majority of cases the optimal solution to flaring is to extend the natural gas grid.
Comparing with traditional “Burning” solution and “Liquified” solutions, SAI can use the associated gases onsite and power its computing system. It can save over 43,630 tonnes of CO2 equivalent emissions per year.
All the industries listed above will cause huge carbon emissions to society. In the solution given by SAI, the three industries can reduce their carbon emissions and improve their energy efficiency.
The more the solutions offered by SAI are used, the more carbon emissions can be reduced, thereby SAI can achieve a carbon neutrality sooner than people’s expectation.
Regional energy solutions
A Central Asia example: Heat Recovery
Pathway to Eliminate Carbon Emissions
SAI will take the following strategies to reduce its carbon emissions. SAI aims to achieve carbon neutrality before 2022 and gradually reduces its carbon emissions.
l Renewable Energy
SAI entered into a long-term renewable energy supply agreement with regional renewable energy power stations in China. Those power stations agreed to supply SAI’s Data Centre and crypto mining centre with a 100% renewable energy supply.
l Water stewardship
SAI prioritises water stewardship across its operations and the many communities it serves. Its data centres are among the most water-efficient in the world. SAI invests in circular systems that reuse water as many times as possible before discharging it to wastewater treatment plants.
l Heat recovery
In addition to its renewable power purchases, SAI is collaborating with the district heating company to develop heat recovery infrastructure. The goal of the heat recovery infrastructure is to recover excess heat from SAI’s data centre and crypto mining centres and send the recycled heat back to the community. Energy will be recovered from SAI’s computing chips and upgraded by a newly constructed heat pump facility.
l Carbon Offset
Carbon neutrality is achieved when emissions from a product, activity or a whole organization are netted off, either through the purchase of an equivalent number of offsets or through a combination of emissions reduction and offsetting. There are some carbon emissions that cannot be eliminated by using renewable energy only. Based on the Carbon Offset strategies proposed by CarbonTrust, SAI will take the following steps to buy needed carbon credits to indirectly offset the carbon emissions of SAI.
The main carbon emissions of SAI came from scope 2. Over 99% of the carbon emissions are from the electricity used for powering the chips.
SAI makes the world better
SAI strives to provide the communities the best energy solution and contributes to the sustainable development of a better world. SAI prioritizes employee innovation and encourage employee diversity, connecting them with communities to foster a harmonious neighborhood and create new mechanisms that benefits the society SAI is serving. SAI makes every effort to ensure the building of a highly reliable and safe business environment, thus helping to solve all sorts of societal issues and contributing to a cleaner and energy-efficient future.
Commitment to International Community
l Being first to sign UNFCCC Climate Neutral Now Initiative
SAI joined the UNFCCC Climate Neutral Now (hereinafter referred to as the "Neutral Initiative") launched by the Secretariat of the United Nations Framework Convention on Climate Change (UNFCCC). Being the world's first digital asset company to join the UNFCCC, SAI is also the first in the industry to sign a commitment with the United Nations to reduce the cost by providing clean computing power. SAI is committed to reducing carbon emissions and achieving carbon neutrality by providing clean computing power.
l Solutions with Business Partners
In order to lead to momentum changes of the industry and contributing to the proposition of carbon neutrality, SAI found a non-profit membership association called OCEC (Organization of Clean Energy and Computing) to help any organizations involved in cryptocurrency mining and energy industries to reach to a number of resources, including connections with clean energy suppliers, technical guidance for the transformation of traditional thermal power mines in order to reduce their carbon emissions, etc. As initiator, SAI will help members of OCEC to connect with third party carbon credits purchases agents and organizations to help neutralize their carbon dioxide emissions, thus to accelerate the carbon neutralization of the industry.
l Looking into the Future
Invest in programs that support in employee’s overall welling, including expanding employee benefits in supplementary business insurance, annuity, parental leave, etc.
Launch different campaigns to motivate SAI’s employees to dedicate their time to make social impact, and use SAI’s resources to help people who are less privileged.
Strong and efficient corporate governance with strict alignment to Code of Conduct and Integrity, leading to a green future. As the leading global computing power operator and energy solution provider, SAI is dedicated to empowering its stakeholders and connecting them with the environmental ecosystem in a sustainable and responsible way.
l Efficient and Optimized Corporate Governance Structure
SAI strictly abides by the requirements of laws and regulations, and constantly improves the corporate governance structure to ensure the efficiency and standardization of the cooperate operation process. The company has estab-lished a standardized and orderly corporate governance structure composed of general meeting of shareholders, executive director, supervisors and managers, forming a trans-parent and powerful governance mechanism which effectively guarantees the legitimate rights and interests of all stakeholders.
l Complete Internal Control System
SAI’s internal control system is compliant to the latest laws and regulations. In order to improve the compliance, standardization and efficiency of the company's internal control management, SAI adopts distributed online collaboration platform in daily work, where organizational structure, budgeting, accounting records, assets, procurement, performance reports, are all managed and supervised strictly under standardized procedure. Thus, SAI’s business was not influenced by the COVID-19 pandemic, and still achieved remarkable progress.
In the meantime, SAI constantly reviews its internal control process with external professionals to sort out the company's business process, finds problems in the internal control design, and explores the most feasible scheme. In the opinion of the executive director, SAI’s internal control system is sound and effective, with no major defects in the design or implementation are found.
l Business Ethics and Integrity
SAI takes business ethics and integrity as core to its value. 100% of employees, management officers, and directors received online Code of Conduct and Anti-Bribery and Corruption training when joining SAI. Internal resources of ethics are available for all employees to visit to ensure the highest level of compliance.
SAITECH and ESG Management
SAI's development philosophy has always been to make every effort to contribute to society. When SAI plans its ESG management system, it takes into account the United Nations’ 17 Sustainable Development Goals(SDGs), provide solutions to reduce greenhouse gas emissions for society, provide services to its customers and stakeholders, and provide all for its employees. The necessary support. SAI hopes to set an example for its peers, lead them to disclose their ESG reports, and work together to make the world better.
Report Source: https://sai.tech/?p=3989
For any questions or concerns, please contact us: