Mastercard is furthering its commitment to create a more sustainable and inclusive digital economy, with a pledge to reach net zero emissions by 2050. Understanding that economic growth cannot come at the expense of the planet, the company’s global action plan aims to continue to reduce greenhouse gases (GHG) by remaining focused on the decarbonization of its operations and bolstering its efforts to decarbonize its supply chains.
Mastercard’s net zero goal builds upon its existing GHG commitments that align with the Business Ambition for 1.5°C pledge. The first in the payments industry to gain Science Based Targets initiative (SBTi) approval for its GHG goals, Mastercard is currently working towards its SBTi-approved goal to reduce total Scope 1 and 2 emissions by 38% and Scope 3 emissions by 20% by 2025 from a 2016 baseline.
These targets reflect a long-term commitment by the company to monitor and implement best practices to reduce emissions across the business, drive operational energy efficiency, and further engage suppliers in value chain decarbonization. Progress already made towards these goals includes achieving 100% renewable electricity in 2020, reinforced by a commitment to RE100.
“2021 is set to be a crucial year for climate action, and we believe the private sector has a vital role to play in the transition to a zero-carbon economy. The quality of all our futures are deeply and inextricably linked to the health and well-being of our planet. That’s why, in addition to improving our own environmental footprint, we’re driving systemic change through powerful coalitions and empowering our network of nearly 3-billion consumers to take collective action to preserve the environment,” said Kristina Kloberdanz, Chief Sustainability Officer, Mastercard. “By coming together, we can drive exponential impact.”
Mastercard is also mobilizing its technology, expertise, and trusted global partnerships network to lead on collective climate action, through innovative initiatives such as the Greener Payments Partnership and the Priceless Planet Coalition.
Decarbonizing Operations and Supplier Sustainability
Mastercard is initially focusing on two priority areas to make progress against its emissions targets – decarbonizing its own operations and leading on supplier sustainability.
Mastercard operates close to 180 facilities across the world and is prioritizing renewable energy and energy efficiency programs, including the expanded use of solar panels in data centres, which account for more than 50 percent of energy usage across the company. Currently all Mastercard owned properties in the U.S. are fitted with solar panels and all owned properties across the world are LEED certified.
Taking an innovative and collaborative approach to supplier sustainability has made Mastercard a leader in the field, recently maintaining an “A” rating for Supplier Engagement from CDP. Emissions associated with the company’s supply chain (as measured at the end of 2020) amount to more than 70 percent of the total carbon footprint. As such, continued support with setting and achieving GHG goals will be provided to suppliers.
In the future, Mastercard will also review opportunities for investing in carbon removal projects, including new nature-based solutions as well as technologies and services that reduce carbon impact while supporting broader local economic and social development goals.
Alexander Farsan, Global Lead on Science Based Targets at WWF, one of the SBTi partners said: “Mastercard has shown real climate leadership by setting science-based targets and it’s great to see they have walked the talk and delivered significant emissions reductions since setting their targets. With Mastercard’s commitment, through our Business Ambition for 1.5ºC campaign, to reduce emissions across their entire value chain in line with 1.5 ºC, we hope to see them continue the path of deep emissions reductions as they work towards their net-zero goal. At the SBTi, we look forward to more companies following in the footsteps of Mastercard and using science-based-targets as a valuable tool to make meaningful progress towards a zero-carbon economy.”
Mobilizing for Collective Climate Action
Mastercard is leveraging its experience in financial inclusion to help build sustainable, scalable solutions and drive collective action for long term climate impact. This includes working with banks, merchants and other industry partners to empower consumers with environmental choices.
Learn more about how the company is supporting sustainable card choices through the Greener Payments Partnership and Mastercard’s Sustainable Card Materials Directory here. Through Mastercard’s partnership with Doconomy, consumers can now directly access a Carbon Calculator which allows them to track their footprint, better understand the impact of their purchasing behaviour, as well as access information on mindful choices.
In addition, through the Priceless Planet Coalition, Mastercard is working with 40+ partners to regrow 100 million trees over 5 years – together with forest restoration partners, Conservation International and World Resources Institute.