UK-based bank TSB has announced a collaboration with fintech startup Cogo to empower customers in monitoring and reducing their carbon footprints.
Cogo leverages open banking technology and data from electronic bank statements to analyze customer financial transactions and everyday expenditures. This analysis offers a comprehensive overview of the environmental impact tied to individual spending habits.
To determine an individual’s or household’s carbon footprint, Cogo examines banking data and associates each transaction with a specific industry, such as fashion, groceries, or insurance, enabling it to estimate the carbon emissions linked to those purchases. For instance, spending £1 at a UK fashion retailer typically generates approximately 1 kg of CO2 equivalent. The application also considers the nature of products sold by various companies, including those that utilize 100% renewable energy.
Based on a user’s financial behavior, Cogo provides personalized recommendations for reducing their carbon footprint. The firm projects that, if TSB’s three million digital banking customers utilize this service, up to 574 million kg of CO2 emissions could potentially be saved annually—equivalent to the emissions from driving over two billion miles or circling the globe more than 50,000 times.
John Lyons, TSB’s Director of Payments, stated, “By partnering with Cogo, we are equipping millions of our online customers with the necessary tools to make informed and sustainable purchasing decisions.”