Business & Investment

Mastercard joins the Net Zero Climate Club with an ambitious pledge to involve most customers

Mastercard Inc. is committed to achieving the equivalent of zero greenhouse gas emissions by 2050.

The nature of Mastercard
MA,
-0.45%

Business poses significant challenges to some of the pledges to chase downstream climate changers.

Unlike most service companies, so-called Scope 3, or indirect external emissions, make up the majority of Mastercard’s GHG emissions. According to the company, more than 70% of “that” pollution in 2019 came from suppliers. Business trips and employee commuting accounted for 19%.

Therefore, the company can only really advise the customer base on investing in renewable energy or persuade companies along the supply chain to set efficiency goals.

However, the company does not remove many users from its plans.

For example, “We have developed a sustainable card material directory for our customers and are working with doconomy to provide brands with a free and transparent way to calculate the carbon dioxide emissions of their products.” A spokeswoman told MarketWatch. “This is information that consumers can use to make more informed purchase decisions. This is usually a feature that small businesses cannot reach.”

Credit cards and payment processors can be considered the first in the industry to agree on a climate change program. Science-based target initiative (SBTi). These thresholds are a 38% reduction in direct emissions and a 20% reduction in indirect emissions from supply chains and customers from 2016 levels to 2025. And the company is partnering with SBTi for the 1.5 ° C campaign. This is another initiative to reduce global emissions and is in line with the voluntary Paris Climate Agreement’s commitment to temperature restrictions.

Kristina Kloberdanz, Mastercard’s Chief Sustainability Officer, said:

“The quality of all of our future is deeply and closely related to the health and well-being of our planet,” she said. “That’s why, in addition to improving our own environmental footprint, we drive systematic change through a strong coalition and a network of nearly 3 billion consumers take collective action to protect the environment. It makes it possible. ”

Mastercard operates nearly 180 facilities worldwide and prioritizes renewable energy and energy efficiency programs, including increased use of solar panels in data centers, which account for more than 50% of the company’s energy usage. It states.

The company, which is also participating in the reforestation initiative, said it would consider carbon removal options once it reaches maximum decarbonization throughout the value chain, but there are no additional details on those plans at this time.Carbon capture is gaining momentum again in Washington As a potential palatable bipartisan climate change behavior.

MasterCard’s share has declined 8.2% year-to-date.

Mastercard joins the Net Zero Climate Club with an ambitious pledge to involve most customers

http://www.marketwatch.com/news/story.asp?guid=%7B21005575-02D4-D4B5-4572-D230D3568BB6%7D&siteid=rss&rss=1 Mastercard joins the Net Zero Climate Club with an ambitious pledge to involve most customers

Back to top button