UK-based digital sandbox provider NayaOne and carbon footprint management company Cogo have partnered to advance carbon footprint tracking tools for banks. The new partnership aims to accelerate carbon tracking tool integration into the banking apps used by financial institutions.

As a result of this collaboration, the financial institutions that have access to NayaOne’s Digital Transformation Platform will have the ability to utilize Cogo’s carbon footprint API in a 'sandbox' environment. The main advantage of conducting the testing in Cogo’s isolated environment is that this will reduce the length of the ‘test and learn’ phase usually associated with the integration of a new feature. As per the press release, Emma Kisby, Cogo CEO, EMEA, explained the impact of banks’ contribution in driving sustainable financing by saying that: ‘Banks can play a significant role in tackling the climate crisis by helping customers to understand and lower their impact, which is directly linked to their spending habits.’ Currently, Cogo works in conjunction with 16 financial institutions from all around the globe, including Australia-based bank Westpac.

However, as expressed in the official statement, representatives of the carbon footprint management company believe that this partnership will help expand its portfolio. What NayaOne and Cogo bring to the table Through its Digital Transformation Platform, NayaOne offers a single point of access to numerous datasets and fintechs, thus enabling banks to support embedded finance capabilities and deliver new products. Earlier in 2023, the digital sandbox provider has gardened public attention after it was revealed that the Financial Conduct Authority has chosen it to develop and oversee its permanent digital sandbox starting in the upcoming summer.

Cogo provides businesses as well as consumers products that allow them to track their carbon emissions via their banking experience. Consequently, they give retail bank customers the power to take steps in reducing their carbon footprint. The carbon calculator that Cogo has developed leverages government agencies and universities’ market-specific emissions data in order to provide the carbon footprint of their customers. The role of banks in fighting climate change As the effects of climate change begin to affect our lives directly, a conversation about what customers and institutions can do to fight against it is underway.

According to studies cited by Bloomberg, carbon emissions are influenced by consumer consumption and banks are in a pivotal position as they process and have visibility over all financial transactions. One way that banks can help customers understand their carbon footprint is by calculating their carbon emissions by utilizing the data collected from their transactions and therefore, spark a change in consumer behaviour. .