Announcing at the COP25 climate summit in Madrid, Mastercard has extended its collaboration with Swedish fintech Doconomy to offer cardholders carbon footprint tracking based on purchases made through the Bank of Åland’s cloud-based Åland Index.
Nordea and Bank of the West also announced they would be joining the Finnish financial institution in its effort to combat climate change with the benchmark climate index, enhanced with data through the recent partnership with S&P Global’s Trucost.
The Åland Index links each transaction to its impact on the environment and for this service, Doconomy has been named a partner to the United Nations Framework Convention on Climate Change (UNFCCC).
Mastercard also made an equity investment in Doconomy to scale the carbon tracking and offsetting platform.
Mark Barnett, divisional president for UK, Ireland, Nordic and Baltics at Mastercard, says: “Addressing climate change is bigger than any one company. This is an important next step to continue progress and move from promise to action.
“We've made commitments to manage our own impact through science-based targets and renewable energy. Now, we’re helping to accelerate the action our cardholders can take every day.”
Niclas Svenningsen, manager, Global Climate Action, UN Climate Change Secretariat, adds: “We all have a responsibility to contribute to the solutions for the climate emergency we are experiencing.
“Time is running out. Many individuals are willing to do their part, but in many cases they find it difficult as they don’t know what else they can do. Through our collaboration with Doconomy, we hope to provide clear, effective channels to support these individual’s daily climate action.”
Finnish fintech Enfuce last month unveiled My Carbon Action, a digital tool for merchants or financial service providers like banks that allows their consumers to track and calculate their accurate carbon dioxide based on their actual purchase history and lifestyle. Set to launch in spring 2020, thisservice is based on a validated calculation method called Life Cycle Assessment (LCA), which Enfuce hasdeveloped with Finnish consultancy D-mat.