Mastercard and Doconomy launch carbon calculator for banks

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ustainability is the buzzword on everybody’s lips – nowadays it is all about who can deliver the best service with little or no impact to the environment.

The latest finance giant to jump on the sustainability wagon is Mastercard, who has teamed up 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.

Through the new calculator, consumers receive a snapshot of the carbon emissions generated by their purchases across spending categories. The announcement 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.

It also comes as banks and financial institutions are under increasing pressure to reduce their carbon footprints. In 2020, it was revealed that the top global banks funnelled $2.7trn towards funding fossil fuels.

Amongst UK banks, Barclays and HSBC are the biggest investors in harmful practices. Since the Paris Climate Change agreement in 2015, the two banks have financed a combined total of £153.5bn in fossil fuels.

These figures are very bleak indeed, however, moves such as Mastercard’s hint at a promising future for finance and sustainability. Adding to this, banks, including HSBC, seem keen to reverse their ways by upping sustainability measures. For instance, HSBC partnered with Pollination with the aim of creating the world’s largest natural capital asset management company. Another market where banks are acting is in Sweden. In March, Swedbank AB became the latest bank to limit lending based on climate criteria.