As the climatic issues become more stringent, so is the finance industry which has now changed its way of providing new means of influencing consumer adoption towards sustainable actions by using green credit cards which reward consumers based on their expenditure related to a positive environmental habit, while propagating environmental causes. In many ways, there lies a wide gap with traditional cards since their purpose is only on consumeristic sustenance but now it has moulded the concept of personal finance and sustainability.
How Do The Green Credit Cards Work
Green credit cards are very much similar to the traditional ones but they focus on environmentally friendly products. Most of them are produced with recycled plastic (rPVC) or an alternative from bio. Thus, production waste will be minimal for these cards.
This credit card gives rewards by asking consumers to behave more responsibly. This is often given through giving higher cash back or reward points. Cash back may be available at a higher percentage for a few brands related to sustainability or for transport options like the bus and charging electric cars. Some provide higher per cent cashback for a certain option of renewable energy. Some issuers take it further and, depending on how the cardholder spends, provide carbon offsets from each user to invest in reforestation, renewable energy projects, or clean water initiatives.
Consumer Behaviour and Sustainability Development
Green credit cards reward consumers to consume more in a greener way, for example, the promotion of sustainable brands or using ride-share services as well as purchasing products containing recycled materials. The natures are small but carry a large impact when a greater number of consumers perform these actions and shift to greener consumption.
Most of these cards have tools embedded that track carbon emissions. These enable their owners to track the carbon print that results from the buys. It promotes responsible spending and behavioural change through time, as the individuals see directly how their choice impacts their carbon footprint.
Accountability
Apart from responsible spending, green credit cards encourage more transparency and corporate responsibility. Most of the issuers collaborate with environmental organizations and allocate a portion of the fees or profits from the transactions towards conservation, waste management, and renewable energy. This also implies that every single purchase made through a green credit card contributes towards greater environmental initiatives, which multiply the impact of positive influence.
Consumers are becoming environmentally conscious more and more. Green credit cards are easily accessible to consumers to help create a better society. Green credit cards make consumers greener as they educate consumers on their impact on the environment, in addition to funding meaningful projects.
