As most of us already know, a carbon footprint is the amount of greenhouse gas emitted by the actions of a person, place, organization, event or thing. Greenhouse gas traps heat in our atmosphere which leads to global warming. This is the main reason why it’s so important that we all make a collective effort to reduce our carbon footprint.
Big companies are some of the main contributors to global warming. By shifting the blame and responsibility onto the consumer, they get away with environmentally damaging practices. One way companies could help to reduce their impact is by using technology. Carbon footprint calculators are a great way to bring awareness to companies’ emissions and enable consumers to make a more informed decision.
The Problem with Banks
Most adults in developed countries have at least one bank account, each with its own accompanying bank card and copious paperwork. In such quantities, the materials and resources required to supply these bank accounts have a noticeable, negative impact on the environment. For example, approximately six billion bank cards are produced each year worldwide using over thirty million kilograms of plastic.
We should all want to keep our planet healthy. However, being an environmentally conscious consumer can sometimes be difficult. Companies not willing to change their practices may make consumers have to choose between convenience and the environment. We must be conscious consumers but big companies such as banks must play their part too. Here are four ways banks can do this.
1. Use Carbon Footprint Calculators to Accurately Measure Carbon Footprint
The difficulty of keeping track of emissions has been one of the main problems preventing banks from going green in the past. However, thanks to new technology this is easier than ever to calculate. The calculation is done at the end of each year. To calculate the number, banks must find out how much fuel, electricity and greenhouse gas they used.
Carbon footprint calculators can also be used to inform customers of the environmental impact of the things they spend money on. They can even tell them the number of trees it would take to absorb the same amount of carbon dioxide, which makes it more accessible. Transparency is key because if we can see the problem, we can do something about it.
2. Offset Emissions by Planting Trees
Every year worldwide the production and distribution of bank cards alone emit over 136,500 metric tons of carbon dioxide into the atmosphere. Furthermore, as the world population increases and more countries become developed this number is likely to increase. Trees absorb carbon dioxide and breathe out oxygen. Therefore, trees help to offset emissions. Banks could plant one tree for every card made.
Banks could also create an option for their customers to donate to reforestation programs. Mastercard customers, for example, can donate to the Priceless Planet Coalition. The coalition helps restore forests in vulnerable places around the world and aims to restore 100 million trees by 2025. Carbon calculators can be integrated into mobile banking making it very easy for customers to find.
3: Reduce their Use of Paper to Reduce Carbon Footprint
The third step is to reduce their use of paper. Many banks already have an option for customers to go paperless. This means they have their monthly statements stored digitally online instead of having a printout posted. Santander customers, for example, can simply go into their online bank account and click a button to go paperless. Less paper means lower carbon footprint.
4: Utilize Smartphones Instead of Physical Bank Cards
The fourth step is to use smartphones in place of bank cards. Mobile transactions are becoming increasingly popular with a growing number of point of sales machines accepting them. iPhone users can use Apple Pay and add multiple digital bank cards to their Apple Wallet. Mobile banking also helps reduce paper usage by enabling banks to communicate with customers without sending letters.
What Happens if Banks go Green?
Most importantly, it will have a positive impact on the environment. Banks that go green will experience a range of benefits. They’ll save money. Eco-friendly banks will retain customers and also potentially get more customers who switch to them from less eco-friendly banks. If banks embrace online or mobile banking, less money will need to be spent on materials, production and distribution.
Banks that successfully go green will have more motivation to keep going even further. As technology continues to advance, the finance sector has an increasing number of tools available to facilitate environmental impact reduction. In the future, if a bank still needs physical bank cards, they could be made from recycled material and distributed in a way that is carbon neutral.
It’s becoming easier for banks to reduce their carbon footprint
Advancements in technology are making it increasingly easier for banks to make positive environmental changes. Banks are vital, and they’ll get many more customers as the world population grows. As long as they follow the four steps and are transparent about their carbon emissions they can make a positive impact in the world. Going green protects the environment and benefits the bank.
