Banks have an important role to play in advocating for a CO2-conscious lifestyle among consumers. CO2 emissions are derived from consumption, consumption is enabled by spending money and money is controlled by banks. Since the serious effects of climate change have already been witnessed, banks need to take responsibility and act to fight it.
Studies have estimated that 70 percent of CO2 emissions are driven by consumer behavior. Banks and financial institutions can be major aides in fighting climate change as they see and process all our transactions. It provides them with a wealth of information about consumption patterns and preferences.
If banks can calculate customers’ carbon emissions based on transaction data, they can show them their personal carbon footprint. However, it is not enough to tell consumers how their lifestyle choices affect climate change – it should also give them advice on how to reduce their emissions, while incorporating sustainability into personal finance management.
To do this, banks can create a range of products. For example, they may offer dynamic credit interest to their customers based on their stability score. Another way for banks to incorporate sustainability into their services is to offer carbon-cutting loyalty schemes that encourage consumers to buy environmentally friendly products and services.
Incorporating sustainability into banking services
Banks can help consumers transform their lives toward a more sustainable world – and make a real impact – by providing sound financial advice for consumers and the environment.
For example, banks may advise homeowners to choose geothermal heating instead of district heating. This will not only reduce the emissions of the house but will also increase the value of the property and reduce the collateral exposure of the bank.
That being said, whenever banks meet with their customers, they have an opportunity to help them lead more sustainable lives. This does not mean that banks will help their customers spend less, but will enable them to consume more responsibly and sustainably.
Enfuce was born to enable change in the payments industry. Helping fintechs and merchants on top of banks and financial institutions to better and faster issuance of payment methods in a globally scalable process is at the core of Enfuce. And when companies can issue payment methods, they are helping people spend.
Sustainability has been at the core of Enfuce since day one, from the desire to create a company that has a positive long-term impact. This got Enfuce’s founders thinking about what the company could offer their customers to help and make an impact in the fight against climate change. Since Enfuce is allowed to store and process sensitive data, the company decided to turn it into impactful insights for the greater good of the planet, and that’s how My Carbon Action was born.
The time to talk is over; The time to act is now
My Carbon Action is a digital tool that allows banks and financial institutions to quickly calculate the carbon footprint of individual transactions. It is a turnkey solution based on a country-specific scientific data model and user input on individual lifestyle choices (e.g., diet, housing and mode of transport) – a combination that makes My Carbon Action better than any other carbon footprint calculator on the market. makes it different.
Banks can use these APIs flexibly and easily integrate them into their apps and services. My Carbon Action is also powered by over 100 personalized tips on how to reduce your carbon footprint and live a more sustainable life.
How can banks be a part of fighting climate change? A large Dutch banking corporation discovered that their customers want to understand how their lifestyles affect the climate and how they can change their lifestyles towards a more sustainable world.
With sustainability integrated across all of its business operations, the bank started using My Carbon Action to help provide its customers with insights about their impact on the environment.
In no time, the response was positive. The environmental impact of green energy, meat and plastic packaging seemed most practical to users. More than 90 percent of new users answered lifestyle questions in the My Carbon Action app, and it has already had a positive impact on the lifestyle of 30 percent of users.
People are becoming more aware of climate change, which will drive the change towards a more sustainable world where people make more sustainable choices.
With floods, wildfires and other extreme weather conditions becoming worse and more common, there is no denying climate change and giving up is not an option. Banks can be either part of the solution or part of the problem.
Learn how banks can fight climate change my carbon action
basically . Published on business reporter
Credit: www.independent.co.uk /