Consumers currently lack the tools to truly understand their carbon footprint and make positive changes to their lifestyles. We look at how banks can be the drivers of change by offering carbon footprint services themselves.
Carbon footprinting is a concept that most people are just coming to terms with. While there’s a general understanding that it means the total sum of greenhouse gases emitted over a period of time, few people are yet to calculate and benchmark their carbon footprint.
It’s not because they don’t want to; it’s because they’re lacking the tools and therefore the understanding to make it happen.
For example, the average carbon footprint of an EU citizen is around 6.7 tonnes, according to Eurostat. It sounds like a lot. But what is a more realistic figure that people can aim for? That’s where banks can come in.
Banks are in a unique position – utilizing transaction data – to not only help consumers calculate and understand their carbon footprint, but also benchmark their emissions against others and take meaningful action.
As part of that offering, banks must ensure that they help consumers identify which lifestyle decisions are the most effective at limiting their carbon footprint. Research from Ipsos Mori suggests that most people are still unsure what actions would have the most significant impact on reducing their CO2 emissions.
87% of bankers believe CSR should be a priority for their bank
Besides having access to the data necessary to provide an accurate estimate of their customers’ carbon footprint, banks have further reasons to invest in this area.
- Carbon savings – If banks can convince just a third of their customers to calculate their carbon footprint and take effective action, the carbon savings would be significant.
- Deepen engagement – A carbon footprinting tool would give customers a new and valid reason to log in and engage with their bank’s digital channels.
- Strengthen brand – It would also prove to a brand differentiator, helping to attract new customers and retain existing ones.
- Drive growth – Banks can build digital customer journeys which start with carbon footprinting and end at purchasing eco-friendly financial products.
Perhaps the best reason to offer carbon footprinting as a service is that it doesn’t require a huge investment of time and resources.
Meniga Carbon Insight is a white-label solution that makes it simple and cost-effective for banks to embark upon the journey of empowering their customers to act on climate change.
It is an API-based toolkit to facilitate mainstream personal carbon footprint awareness via digital banking through a seamless and easy-to-use service.
In other words, Meniga takes care of all the backend: harmonizing the data and providing the insights. And you can concentrate on perfecting the customer journey so that Carbon Insight provides full value for your business.
To understand more about how Carbon Insight works, read our paper on Carbon Conscious Banking.