At Money20/20 in Amsterdam, Cogo showcased its zero-waste initiative, where discussions took place with ING regarding their innovative carbon footprint calculator and its broader implications for customer engagement.
ING initiated a pilot program for Cogo’s carbon tracking app in August 2022, involving 500,000 customers. This collaboration has shown promising results, with Cogo indicating that users of the tracker are significantly more inclined to recommend their bank to others. ING plans to roll out this feature to all their mobile banking clients in the near future.
Emma Kisby, Cogo’s CEO for the EMEA region, highlighted the critical link between consumer spending and greenhouse gas emissions, noting, “Every pound spent contributes to the climate crisis, and as the IPCC report outlines, overconsumption plays a major role. However, many consumers remain unaware of this connection.”
Léon Wijnands, ING’s head of sustainability, emphasized the necessity for banks to rethink their sustainability strategies beyond traditional offerings. He remarked, “In retail banking, much of the focus tends to be on greening mortgage products. Yet, the essence of sustainability lies not in the products themselves but in the assets we are financing.”
Wijnands further illustrated that the majority of household emissions stem from consumption patterns: approximately 20% from the built environment, around 7% from travel, and a staggering 70% from purchasing goods. He stated, “While we tend to focus on the smaller segments, the real impact arises from smarter consumer choices regarding what to buy or choosing not to purchase at all.”
Concerns have been raised that carbon trackers might shift the responsibility for climate action from corporations to individuals. In response, Kisby noted, “Take banks like ING, for example; they are not investing in fossil fuels. It’s crucial that banks operate responsibly, but customers often lack clarity regarding these investments. We provide carbon footprint insights along with our initiatives, emphasizing that the responsibility is shared.”
Wijnands reiterated this point, asserting that the solution to climate issues should not be viewed as an either/or but rather as a multifaceted approach requiring collective action. Although ING has distanced itself from the fossil fuel sector, they argue that a complete divestment could adversely impact energy affordability and accessibility for consumers.
Reflecting on the strategic implementation of their sustainability measures, Wijnands commented, “Launching this initiative in the consumer market was predicated on significant advancements in the wholesale sector, aligning impact with responsibility, rather than mere reputation.”
Kisby concluded with an important insight, stating, “This effort is not just a trend; it’s essential for future sustainability. Signaling demand is a crucial element in driving meaningful change.”