Measuring the carbon impact of payments transactions

A vision for a standardised framework

an initiative by The Payments Association ESG Working Group

Background: why do we need an industry standard framework?

• Organisations in the Payments space are increasingly concerned with measuring and managing their carbon footprint.
• Several, mostly large, organisations have already carried out in-house research; however they have the resources to do so.
• Conversely, SMEs, potentially lacking resource, may have the desire but not the means.
• Organisations are at risk of ‘reinventing the wheel’ each time this exercise occurs – the consequences are wasted time and effort, cost, and the potential for increasingly divergent practices.
• It is in the industry’s interest to have a ratified set of guidelines which could facilitate consistency, promote collaboration, and drive sustainable innovation.

What could a potential framework look like?

• Voluntary to adopt.
• Readily available to access and customise.
• Covers Scopes 1, 2 and 3 of GHG emissions.
• Looks at whole of the Payments value chain.
• Caters to wide range of Payments firms, from banks through to fintech startups.
• Links to available third-party industry suppliers’ datasets.
• Includes a database (non-confidential) carbon values shared by companies who have already measured their carbon impact.

How might we hope to develop this framework?

• Surveying and profiling our membership.
• Collaboration with / learning from industry partners.
• Creating a working-party with relevant expertise to drive the project.
• Regular feedback and discussion.
• Stakeholder engagement.
• Piloting aspects of the framework; iterating.

What do we need to begin this initiative?

• Collaborators – to help us develop the framework and to assist by sharing knowledge, insights or data.
• Sponsors – to help establish an ongoing model.
• Consultancy – to offer guidance on promotion, implementation, monitoring and feedback cycles.
• Mentors – individuals with knowledge in this sphere willing to dedicate expertise to development and roll-out of the schema.

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For more information about this project, email The Payments Association ESG Working Group at [email protected].