In recent times there has been a growing
trend where consumers are making green-conscious decisions. Consumers want to
ensure they cut back on their plastic usage and support ethically manufactured
brands. This trending consumer behaviour calls for change in the banking
sector, if banks are to continue making profits in their business. Their
sustainability will depend on how green their decisions are.
Every year tonnes of plastic waste are
churned into our oceans and water resources. This includes millions of debit
and credit cards that are made of non-biodegradable polyvinyl Chloride(PVC)
that contribute to land pollution. Such trends have to change, if not eliminated,
for banks to be part of the solution. To help promote green economy, banks can
follow these key steps.
Digital Migration
Reducing the reliance on paper in the
banking sector is a good starting point. Endless reams of paper are printed in
the form of documents such as bank statements, instruction manuals, pin mailers
and card carriers. Often, pamphlets are distributed while they can be easily
replaced with a well-designed website that can be used to pass this information
to a wider audience.
To enforce paperless transactions, banks
can offer pin activations through SMS services, E-statements to replace bank
statements and linking credit cards to smartphones. This will not only provide
paperless transactions but will greatly reduce the waiting period for some of
these services. Digital migration will not only reduce carbon footprints but
will also create a very smooth banking experience for consumers.
Going Green through Partnerships with Green Suppliers
Big brands in fashion, food and motor
vehicle are all making eco-friendly decisions in their lines of production. The
use of recycled materials and sourcing raw materials from farms that have
better standards are some green-conscious decisions. Banks should emulate this
when sourcing their credit card manufacturers. They should source from
companies that provide both eco-friendly production and disposal when needed.
Partnerships with card manufacturers who
use biodegradable materials from renewable sources should be a top priority for
sustainability. This is because credit cards are among the most used modes of
payment, yet the card making process and its disposal cause a lot of pollution.
Eco-friendly cards, when adopted, will provide minimal emissions during
manufacturing and non-toxic means of disposal through incineration.
Helping Consumers Track Their Carbon Footprints
In today's world, many consumers have
environmental concerns when making decisions on which brands to use. Most seek
to understand their personal carbon footprints, many of whom want to be on the
lowest side of the scale. However, this has proven to be a difficult task.
Often, many consumers fail to quantify the impact of their daily decisions on
the environment.
Banks can help by letting their users
track, understand and reduce
their carbon footprint through SAAS apps which help promote a green
economy. With such well-detailed reports, consumers can measure their carbon
footprints with every purchase they make. The impact of such apps will be
reduced carbon emissions by promoting eco-friendly options in the finance
sector. This will promote sustainability in banking.
Carbon Offsetting for Sustainability
Before making the complete transition to
biodegradable cards, banks can begin to invest in carbon offsetting projects
where they try to balance carbon footprints during card production. These
innovative projects should go beyond tree planting and include complete
commitment to protecting the environment. For example, helping provide clean
stoves for poor families or committing to help transition to clean renewable
energy sources.
Financial Support for Eco-Friendly Projects
Reducing the carbon footprint of banks is
a good initiative in steering the green economy we hope for but that is not
enough. The financial decisions made by banks could as well be part of the
problem and not the solution. Money lent to borrowers can make a positive
change in the environment as well as undo all the positive efforts made.
How Financial Decisions Influence the Carbon Footprints
Banks mostly aid businesses and
corporations by providing loans. These financial aids can at times give leeway
for corporations to conduct businesses that have very high carbon emissions.
When banks create policies that demand for accountability in terms of
greenhouse emissions, most companies will be forced to comply with these rules.
Such decisions will help decarbonize the planet in the future.
Additionally, banks should provide
tailor-made packages for all companies that are striving to go carbon-neutral
as they face a new set of unique challenges. Some of these challenges may
include sourcing eco-friendly raw materials, using renewable energy sources and
recycling waste. With the help of banks, such companies can be elevated to
operate competitively with their counterparts while being environmentally
conscious.
