Buzz
Earlier this year, Mastercard, in collaboration with Swedish fintech startup Doconomy, launched the Mastercard Do Black. This innovative credit card tracks the carbon footprint of every purchase you make and limits additional purchases once you exceed your carbon budget.
As Fast Company highlights:
Constructed from bioplastic and featuring ink derived from air pollution, the Do Black card uses data from Thomson Reuters and Sustainalytics, an Amsterdam-based organization that evaluates companies on their sustainability practices, to assess the environmental impact of every transaction. This initiative is part of a new mobile banking service that’s currently available in Sweden, with plans to expand to markets like the U.K. and the U.S. (A separate version, the Do White, monitors your carbon footprint without limiting credit once your carbon budget is reached.)
Although U.S. credit card holders can’t yet apply for a Mastercard that tracks their carbon footprint, there are still ways to use your credit card to benefit the environment. Many rewards cards allow you to donate your earned rewards to a charity of your choice, so instead of redeeming your cashback or points for a statement credit or gift card, you could contribute them to organizations working to protect the planet.
Some credit cards incorporate the donation feature directly. For example, when you use the World Wildlife Fund Credit Card from Bank of America, the WWF receives 0.08% of all eligible retail purchases made with the card. Though it might seem like a small amount—just eight cents for every $100 you spend—every bit contributes. Plus, you’ll still earn your own cashback rewards with each purchase.
The Charity Charge Mastercard, offered by Commerce Bank, automatically donates your cashback rewards to up to three causes of your choice—be it non-profits, schools, colleges, or religious institutions. While many cards let you donate cashback rewards to charity, the Charity Charge card takes it further by ensuring your rewards automatically go to the organizations you care about.
The U.S. Bank FlexPerks Travel Rewards Visa Signature Card provides bonus rewards (2 points per dollar) when you use the card for charitable donations. This means you can make a more significant contribution to an eco-conscious cause while also using your rewards points to book a sustainable trip.
If you’re truly committed to tracking your carbon footprint or supporting groups that work towards preserving the Earth, focusing solely on which credit card to use might not be the most impactful approach. However, if you’re aiming to align more of your daily actions with your values, choosing a card that encourages donations is a solid step forward.
Keep in mind that you might already have a credit card in your wallet that lets you donate your rewards to a cause that aligns with your values. In that case, the most sustainable choice could be to continue using the card you already have, rather than acquiring a new one.
