First bank in Asia to sign up to helping clients track, measure and manage the impact of their purchases on both carbon emissions and freshwater consumption
Singapore – Standard Chartered has entered into an agreement with Doconomy, a Sweden-based impact tech company, to introduce a digital tool that helps clients track, measure and manage the impact on carbon emissions and freshwater consumption based on goods and services they have purchased, as identified through their credit and debit card transactions. This is based on the Aland Index introduced in 2016 to provide financial institutions with carbon footprint calculations for every transaction, which recently added freshwater calculations to its impact presentation.
The climate crisis is one of the greatest challenges facing the world today, and its impact on the environment and human health significantly affects sustainable economic growth. This collaboration has the potential to allow millions of consumers over time to gain further insights and knowledge into how their individual consumption affects the environment and the climate. It also marks a starting point for working together to further expand digital tools and support consumers in taking everyday climate action.
For any card transactions, the fully automated Aland index can calculate the carbon and water footprints on each of these transactions in kilograms of carbon dioxide equivalents and water used per litre respectively. This is derived from the purchasing price and an emission factor, which varies for the different sectors depending on how the product or service is produced.
This output is then visualised for clients on Standard Chartered’s mobile banking application. The 47 sectors identified by Doconomy, corresponding to the most common sectors that consumers buy goods and services from, are further divided into various overarching lifestyle categories (such as home, food and transport) to allow clients to see — on a monthly and individual transaction basis — how their impact weighs differently across various activities in life and take proactive steps to reduce their carbon emissions and water consumption.
Rosalind Ng, Global Head, Client Experience & Strategic Business Enablement at Standard Chartered, commented: “Sustainability is at the core of our strategy. We are committed to deliver profit with purpose. One of the ways is through the launch of sustainable consumer products and tools. Our clients want to make more sustainable choices in all aspects of their lives, from what they consume to how they invest. We’re delighted to partner with Doconomy to pilot a new capability for our clients. This capability will help our clients understand their carbon and water impact from their transactions, so that they can make informed choices to contribute to a greener world.”
The Bank will pilot the capability for clients in Pakistan later this year.
Mathias Wikström, CEO of Doconomy, said: “To welcome the fellow change makers of Standard Chartered and be able to work with their team of ambitious minds marks Doconomy’s first step into Asia. Through this collaboration we are excited to combine Standard Chartered’s reach and highly regarded skill sets in both sustainability and user experience with our innovative solutions. Watch this space!”
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Doconomy, founded in Sweden 2018, provides digital solutions to help track and measure the carbon footprint. Doconomys service, DO, a mobile banking app, manages savings and promotes sustainable consumption. The Aland Index Solutions impact calculations in DO use data, covering 99% of global market cap, through a unique partnership with Trucost, a part of S&P Global.
Through Doconomys collaboration with the United Nations Climate Change Secretariat (UNFCCC), to educate and engage individuals around climate action, additional innovative tools to explain our impact are also developed. Doconomy utilizes innovation, data and design to support consumer change of behavior by enabling well -informed choices, which in turn, promote responsible consumption. The 2030 Calculator is such an innovation, to increase transparency and responsibility on product level.