Mastercard has teamed with Swedish fintech Doconomy to launch a carbon calculator for banks as part of efforts to reduce climate change.
The Mastercard Carbon Calculator enables banks to equip people with carbon footprint data and insights to help inform consumer spending and offer ways to contribute to reforestation.
It comes after Mastercard research revealed that consumers are more concerned about the environment as a result of Covid-19. More than half (54%) of those surveyed said that reducing their carbon footprint is more important now than pre-pandemic.
Jorn Lambert, Chief Digital Officer at Mastercard, said: “Companies, consumers and communities must work together to make the significant changes needed to effectively address climate change.
“The Mastercard Carbon Calculator informs consumers about the carbon footprint of their purchases, so that they can make more mindful spending decisions and contribute to forest restoration.”
Lambert also said that Mastercard has the power to create positive change for the environment through its extensive network.
Mastercard and Doconomy
Mastercard partnered with Doconomy to launch the carbon calculator, which is now integrated across Mastercard’s global network. The two companies first partnered in 2019, with the aim to further scale the expansion of carbon tracking.
Doconomy was founded in 2018, offering the first credit card to measure CO2 emissions to lessen the financial sector’s global impact.
Through the new calculator, consumers receive a snapshot of the carbon emissions generated by their purchases across spending categories.
The calculations are powered by the Åland Index and can be further enhanced with relatable and easy-to-understand equivalent, and tips about living more sustainably.
Consumers also have the option to contribute to reforestation projects of the Priceless Planet Coalition.
Mathias Wikström, Chief Executive Officer at Doconomy, said: “By engaging a whole industry in enabling individual insights as well as collective action, Mastercard has redefined the role the financial industry can play every day in tackling the climate crisis.
“When others are talking of the importance of ESG, Mastercard is putting it to work at the fingertips of the consumer.”
Banks can also integrate the calculator into their mobile apps through new APIs.