Iceland’s Íslandsbanki is set to empower its customers by integrating a new feature into its mobile banking application that allows users to track their carbon footprint.
The bank will incorporate Carbon Insights, a pioneering green banking product from Meniga, into its digital services. This innovative tool estimates users’ total carbon footprint based on their spending habits, categorizing expenses over various timeframes. In addition to providing footprint estimates, the app offers actionable tips to help users modify their spending behaviors and enhance their savings.
The calculation of carbon footprints for transactions is facilitated by the Meniga Carbon Index, crafted by a team of data scientists who utilized extensive environmental research and databases detailing the carbon emissions associated with various goods and services. The Index encompasses the carbon intensity values for around 80 different spending categories, expressed per currency unit. When a user makes a purchase, the carbon intensity value for the corresponding category is multiplied by the transaction amount, yielding an estimate of the carbon footprint.
A recent survey by Meniga found that 80% of consumers who engaged with its technology are interested in leveraging their banking apps to estimate their carbon footprint.
Georg Ludviksson, CEO and co-founder of Meniga, emphasized the growing urgency around climate change, stating, “As global awareness of climate consequences increases, businesses must provide solutions that empower individuals to contribute to environmental protection. Banks, as custodians of personal finance data, are uniquely positioned to assist the burgeoning community of environmentally conscious consumers in making informed choices in their everyday spending.”