Bank of China (Hong Kong) has introduced a new feature in its Personal Finance Management offering, enabling customers to measure their carbon emissions and understand their carbon footprint based on spending habits via their banking app. The initiative, developed in collaboration with sustainability fintech Cogo, aims to help users lower their carbon footprint.
The global market is experiencing a notable shift towards sustainability, driven by increased consumer expectations and regulatory pressures for more responsible behaviour. Financial institutions and large corporations in Asia are recognising the importance of partnering with innovative fintech companies to accelerate these efforts.
Ben Gleisner, Founder and CEO of Cogo, expressed enthusiasm about the collaboration with Bank of China (Hong Kong). He highlighted the significance of providing customers with advanced solutions that enable them to take meaningful actions to reduce their environmental impact.
This development marks the customer-facing launch of Cogo's carbon calculation technology in the Greater China region. Prior to this, Cogo had conducted successful proof-of-concepts with other leading banks in the area. The company previously established its first banking partnership with NatWest in November 2021 and currently collaborates with 20 banking partners globally, potentially reaching 30 million users.
The Cogo Personal and Business Carbon Manager solutions calculate carbon footprints for both individuals and businesses, offering personalised recommendations to lower carbon emissions. The technology works by assigning an emissions factor to each categorised transaction, providing real-time calculations based on country-specific emissions data and carbon models.
Ben Gleisner explained that Cogo's models include each industry’s direct and supply chain emissions, also known as the embodied carbon of products and services. Supported by leading experts, academics, and institutions, including the Industrial Ecology Lab and Mike Berners Lee, Cogo aims to deliver the most detailed market emission factor data. This level of accuracy has been integrated into the carbon tracker for Bank of China (Hong Kong)'s mobile banking app, promising to enhance customer engagement.
Cogo's recent achievements include winning first place in the Hong Kong Monetary Authority's Green Fintech Competition in the Net-zero Transition / Transition Planning category. The accolade, mirrored by a similar victory the previous year, underscores the company's potential to resolve key issues in Hong Kong's banking sector and its contributions to the green fintech space. These accomplishments underpin Cogo's projection that Asia will soon become one of its principal markets, alongside Europe, the UK, New Zealand, and Australia.
Gleisner also expressed appreciation for Bank of China (Hong Kong)'s proactive engagement in promoting technology that aids in transitioning to a lower carbon economy. He emphasised Cogo's growing recognition as a contributor to creating a more sustainable world by improving public understanding of how spending affects the climate crisis.
