“Our goal is to reach 100 million consumers in three years”

Sustainability can present a challenge, but fintech ecolytiq offers a solution for banks. Here, CEO and co-founder Ulrich Pietsch explains why he believes personalised data is key to change, why they are partnering with Visa on its first sustainability-focused card products, and how cutting carbon is just the start.

Picture this: while checking your banking app, you see an extra figure in kilos next to the cost of the flight you’ve just bought. It’s the amount of carbon dioxide your purchase will “cost” you in emissions – it’s the carbon footprint. Clicking on the figure, you learn that e.g. 50 kilos of CO2 are the equivalent of driving over two hours in a car¹.

Next to the purchase, you’re provided with information about the impact on the climate: next time opt for a direct daytime flight rather than a redeye with a stopover to shrink your purchase’s footprint. And with a few simple steps, your flight is offset.

ecolytiq, a Sustainability-as-a-Service company® founded in Berlin in 2020 has been collaborating with Visa since its inception. Their mission? To empower millions of consumers by providing transparency about their personal environmental impact, as well as personalised information to enable them to lead more sustainable lifestyles. “It’s about the little things we can do to move the needle,” says CEO and co-founder Ulrich Pietsch. “Because as an individual, I'm often asking myself, what can I do?”

After all, no one can be unaware of the drive to reduce carbon emissions, with seven years said to be left to limit global warming to 1.5°C² and 60% of all greenhouse gas emissions caused by consumers³ – of whom 7 in 10 want products that do not contribute to climate change⁴. To that end, the Cambridge Institute for Sustainability Leadership (CISL) in collaboration with Visa has identified ways payment networks can help achieve net zero emissions targets⁵.

These include empowering consumers through innovation; providing data-driven insights to facilitate change; collaborating with partners on new solutions; and using advocacy – all of which are embodied in ecolytiq.

Why personalisation is key

At the heart of Visa Eco Benefits is the personalised data about the cardholder’s carbon footprint. ecolytiq bases that calculation on the Open Payment Standard published by the Organisation for Sustainable Consumption, which uses the open-source EU Open Sustainability Registry, a collaborative and constantly updated platform, to achieve the most precise research-based data possible.

“We’re really transparent as to how we come to the numbers,” says Ulrich. “There are about 30,000 studies coming out each year on this topic, so this question can only be solved by collaboration.”

ecolytiq tailors the data to the cardholder’s country, merchants of choice, and their current habits. That’s because the same transaction differs in carbon impact for say, a cardholder in France, which relies on nuclear energy – “carbon neutral by definition” – compared to a cardholder in another country more reliant on fossil fuels. Cardholders are also asked about their dietary habits, allowing them, for example, to click to see how reducing meat intake could change the footprint of their supermarket shop.

Then, the issuer might choose to automate carbon offsetting for every transaction, as does ecolytiq’s partner CarbonPay, or offer the cardholder ways to invest in sustainable products – but the crucial feature is that the cardholder can do something about their impact.

“We see a lot of CO2 calculators coming out around payment transactions, which is good,” says Ulrich. “But for us it’s only a starting point on a whole journey.” As a result, ecolytiq sees cardholders cutting their carbon footprint by 10% on average⁷ – which does not necessarily translate into reduced spending. “For example, a Tesla is more expensive than a traditional car, and it’s the same with clothing and grocery shopping.”

Why the future is green

Of course, achieving change is not without its challenges. That is why ecolytiq has been working to “shortcut” the technical integration for issuers, so an existing partner like Visa is effectively delivering these new services. Open banking has been helpful here – “it allows us to move faster” – and this model allows rapid scaling. “Our goal is to reach 100 million consumers in the next three years,” Ulrich says.

A daunting prospect? It doesn’t have to be. “Banks don't have to become sustainability experts, they just have to build sustainability features into their traditional products – and then they will be generating more sustainable revenues.”

Stephen King, Vice President of Visa Sustainability Solutions, added: “This is just the beginning of what we expect to be a detailed journey to close the awareness/action gap for different customer segments, but it’s an important start.

“Drawing on Visa’s experience and partnerships, we can help our clients deliver solutions – helping consumers to live more sustainably, accelerating a merchant’s path to sustainability, or helping governments plan and deliver more sustainable cities.”