Credit card company created a calculator that measures consumers’ carbon footprints based on what they purchase. The calculator gathers information using a methodology called the Doconomy Åland Index, which collects data from Trucost, an ESG analysis company that estimates businesses’ hidden costs of using unsustainable natural resources. That index calculates the impact of transactions by using an average footprint number for specific industries. For the carbon calculator, that information is correlated to Mastercard’s merchant category codes like ‘food and beverage’ or ‘apparel.’
The calculator also shares information about the number of trees that are required to absorb the same amount of carbon dioxide that is released from the consumer’s purchases in specific categories. It actually gives a very good indication about what your overall spend is for the month. The creation of the carbon calculator is the company’s latest attempt at focusing on sustainability. Earlier, Mastercard (MA) started working to reduce first-use plastic in payment card production. In January, Mastercard pledged to reach net zero emissions by 2050, joining a long list of major companies that have made similar commitments.