Mastercard innovative tool will reveal the carbon emissions of customers expenses
Posted By : Amol Mishra | Date : Apr 14 2021 7:13 AM
Mastercard has come up with a unique way to let their customers know how much of their expenditures contribute to carbon emissions, and, eventually, to Global warming.
According to a press release, Mastercard, the renowned Credit Card company, has developed a tool, in partnership with Swedish FinTech Doconomy, that calculates customers' carbon footprints based on their purchases. The tool, which goes live on Monday, focuses on broader spending categories rather than individual transactions.
The calculator collects data from Trucost, an ESG consulting firm that calculates companies' hidden costs of using unsustainable natural resources, using a technique called the Doconomy land Index.
The effect of transactions is calculated using an average footprint number for particular industries. The data is linked to Mastercard merchant category codes like 'food and beverage' or 'apparel' for the carbon calculator.
The calculator also provides details about how many trees are needed to absorb the same amount of carbon dioxide emitted by a consumer's purchases in various categories.
According to Jorn Lambert, the chief digital officer at Mastercard, although the tool cannot be claimed perfect for the measurement, it does give a very good hint about how much an individual has spent in the entire month.
When speaking with CNN business, he called the calculator a middle ground between respecting privacy yet providing required information to consumers.
In July, Mastercard initiated a campaign to reduce its carbon footprint by assisting issuers in over 12 countries in offering cards made of degradable, ocean-safe plastic. According to the business, the card industry produces 6 billion cards per year using conventional PVC plastics.
"By embedding sustainability into the very fabric of our business, we will unleash the power of our network, which reaches billions of customers and partners, to create positive change for the environment," he added.