Banking solution provider Meniga has partnered with Íslandsbanki, one of Iceland’s largest banks, to launch a green solution that will allow users to track their carbon footprint.

The solution, called ‘Carbon Insight’, will integrate with Íslandsbanki’s existing mobile banking app.

Meniga said this integration will help to enable a more robust environmental, social, and governance (ESG) strategy, drive customer engagement and boost loyalty.

Meniga said the solution will give consumers an estimate of their overall carbon footprint based on their spending, broken down into categories and time periods, and then alert consumers about the parts of their spending that are worst for the environment.

The banking solution provider claimed the carbon footprint of transactions and purchases is calculated through the Meniga Carbon Index, which has been created by a team of data scientists using environmental research and databases on the carbon emissions of goods and services.

Meniga said the Meniga Carbon Index contains the carbon intensity value of approximately 80 spending categories, as weighed against a currency unit.

When a purchase is made in a specific spending category, the carbon intensity value of that particular category is multiplied by the purchase amount, which the solution provider said gives a reliable carbon footprint estimate.

Research conducted by Meniga claimed that 80 per cent of consumers using its technology now want to use their banking apps to help them estimate their carbon footprint.

“With more and more people around the world growing anxious about the consequences of climate change, the need for solutions and initiatives that empower people to take action to help protect our planet has become a business imperative,” said Georg Ludviksson, chief executive and co-founder of Meniga. “As custodians of our personal finance data, banks are in a unique position to play a key role in helping the rapidly growing movement of carbon conscious consumers make informed choices in their daily consumption.”

Birna Einarsdóttir, chief executive of Íslandsbanki, said: “Consumers are increasingly interested in reducing their carbon footprint and having a positive impact on the environment.”

He added: “Meniga’s Carbon Insight solution will enable Íslandsbanki’s customers to estimate the carbon footprint of their private consumption, identify carbon intensive purchases and ultimately reduce their carbon footprint while saving money at the same time.”

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