Why carbon offsetting is crucial for the future of the finance industry

June 12, 2023

0 1 minute read

Offsetting carbon output in the finance sector and why factoring environmentalism into a business plan is more important than ever.

But we need to be clear that while carbon offsetting is not the nirvana we all think it is, it is the best the fintech industry has today. This is according to Jeremy Baber, Chief Executive Officer, Lanistar.

“Concerns regarding the environment are at an all-time high. According to research conducted by The Round Up, 84% of customers would feel alienated from a brand or company with poor environmental practices, and products marketed as sustainable would grow 2.7x faster than those that aren’t,” stated Jeremy Baber.

“Someone has to be the first to make a stand against plastic waste. Our approach completely eliminates factory development, which already offsets our carbon output dramatically, but the virtual card? That reduces our plastic waste to near zero.”

Studies from institutions such as The Central Bank of the Netherlands revealed that, in 2015, the nation’s financial sector’s global warming potential (GWP) was 17 million kg CO2 equivalent (CO2e). The biggest contributing factors to this number were point-of-sale terminals, followed by debit card payment processing centres and plastic card manufacturing.

“Fundamentally, from the journey that we’ve started here, I envision that the rest of the world will want to follow. To move in that direction, of cutting plastic out, is what it’s really about. We have access to the virtual environment, and finance can thrive in that,” added Baber.

“And if you’re adopting a green strategy, it’s really about taking plastic out of the equation altogether and making sure that you can still have the same functionality and capabilities, but in a virtual space.”

It is clear to see that, now more than ever, businesses must consider their carbon output when putting together their business strategies. As awareness of the issue continues to grow and more measures are put in place to try and reverse the effects of climate change, it is likely that businesses will need to adapt or be left behind.

Fintech startup Lanistar has taken this new wave of environmental awareness and brought it to its financial product. A 100% virtual payment card hosted on the Lanistar app, which can be used to pay for goods using technologies like Google Pay for both online and offline transactions.

The Lanistar app is currently available in Brazil, with plans to have the product launched in the UK and further in Europe in 2023. Apple Pay operability is also set to become available to Lanistar app users in Summer 2023, allowing iPhone users to also get the most from their virtual card experience.