Enfuce is on a mission to help banks and financial institutions calculate their customer’s carbon footprint to mitigate the climate crisis’s impact and provide sustainable options for everyday banking services.
A leading provider of payment services for FinTechs, banks, and merchants, Enfuce’s My Carbon Action offering is a manifestation of its dedicated efforts toward sustainability. “As carbon emissions regulations become more stringent, it is increasingly important to ensure that carbon footprint calculations are relevant and accurate for each individual. “Unlike other Carbon Calculators in the market, My Carbon Action provides personalized guidance for more sustainable consumption, ensuring that everyone can do their part to reduce their environmental impact,” says Monika Liikamaa, Co-Founder and Co-CEO of Enfuce.
Banks as lifestyle changemakers
Banking services play a critical role in our daily lives and can help mitigate the effects of climate change. By choosing sustainable options for everyday banking needs, we can help make a difference in reducing our global carbon footprint. This is why banks employing carbon calculators as My Carbon Action are essentially lifestyle changemakers. “Since a bank’s core business is to help with money, they are at the heart of helping people buy more sustainably. For consumers, banks can help them understand where to spend their money to result in fewer emissions. The goal is to encourage smarter investments, sustainable investments,” says Liikamaa.
“This method focuses on your daily activities and lifestyle choices to give you a clear picture of your emissions. You’ll be able to see where you can make changes to reduce your impact on the environment,”Monika Liikamaa, Co-Founder and Co-CEO of Enfuce
While some banks have jumped on the sustainability bandwagon, others are still lagging. The reason? They fear that by highlighting their customers’ investment patterns, they will inadvertently make them feel guilty. “Banks must undergo a mindset shift where they realize they are helping their customers lead better lives by calculating their carbon footprint,” adds Liikamaa.
Benefits of consumption-based accounting
Different carbon footprint calculators use different methodologies, but My Carbon Action uses consumption-based accounting as its leading calculation model. Since different lifestyle choices can result in other impacts on the environment, consumption-based accounting is a way to measure these impacts by taking into account direct emissions and those caused by the production and distribution of products and services, including imports. “My Carbon Action is hence a personal life management service that enables banks to help customers determine the emissions from their spending and share tips on buying better,” states Liikamaa.
“With My Carbon Action, we wanted to create a country-specific carbon calculator that is more so based on where you are at in terms of location. This is important to understand the impact of regional emissions. For instance, if I drive an electric car in France versus an electric car in India, I emit more in India than in France because, in France, nuclear power is doing the electricity that while in India it is the fossil fuels,” remarks Liikamaa.
This allows for a more accurate assessment of the global impact of consumption and how different choices can affect the environment. You can take action to reduce your carbon footprint with consumption-based accounting. “This method focuses on your daily activities and lifestyle choices to give you a clear picture of your emissions. You’ll be able to see where you can make changes to reduce your impact on the environment,” adds Liikamaa.
The way forward
To reduce our carbon footprint and play our due part in healing the planet from environmental damage, banks need to help customers reduce their emissions. Banks are uniquely positioned to collect insights into consumer behavior, consumption patterns, and preferences. This data can then provide valuable advice and services that help build stronger customer relationships.
By leveraging this data, banks can become trusted partners in helping customers achieve their climate-conscious goals. With the help of My Carbon Action, they can encourage sustainably responsible behavior to avoid and reduce emissions. “ It’s not always possible to completely avoid emissions, but we can offset them by living more green lifestyles. For example, planting trees helps offset carbon emissions. Ultimately, we need to raise awareness of the dangers of climate change and take action to prevent it – or we risk extinction,” concludes Liikamaa.