C6 Bank’s Climate Tool to Track CO2 Emissions From Customer Transactions Prompts Debate on Future of Banking

On April 13, a customer of Brazil’s C6 Bank released screenshots of his online bank account, revealing that the financial institution is tracking CO2 emissions from his purchases and encouraging financial compensation C6Bank says the new tool aims to encourage Brazilians to take more sustainable actions.

“CBDC Preview” – bank customers explain how Brazilian banks monitor their transactions for CO2 emissions

In recent years, politicians have demanded that banks comply with environmental, social, and corporate governance (ESG) goals. This has led financial institutions to focus on climate change, equality, and social justice. On Thursday, onDr. Simon Godek, CEO of Sunfluencer, a client of C6 Bank, explained that his bank is already utilizing tools to monitor customer transactions related to CO2 emissions. The bank calculates the estimated CO2 emissions for each transaction made on an account.

Dr. GodectweetedC6 Bank, a Brazilian bank, has started tracking my CO2 emissions from shopping and travel and strongly recommends that I compensate them financially. I have been predicting this development for two years and now it seems to be slowly becoming a reality. Welcome to the dystopian world we live in.” He alsopointed to JP Morgan’ssignificant stake in C6 Bank, which could foreshadow similar developments in the U.S. JP Morgan Chaseownsa 40% stake in C6 Bank, a Brazilian digital financial institution established in 2019 It has.

On April 3, C6 Bankunveiled a new CO2 banking tool, revealing that its main function is to analyze the results of CO2 emissions to the atmosphere and use them as indicators for implementing sustainable measures. Dubbed “Carbon Extract,” the tool monitors CO2 emissions from everyday expenditures such as debit and credit cards, transfers and Pix transactions.

Upon the launch of this banking tool, C6 Bankdeclared that it had “zero carbon emissions”Dr. Goddek’s Twitter thread sparked considerable criticism of the banking industry’s approach to climate change solutions In Reddit’s r/bitcoin forum, the tool was referred to as a “preview” of the Central Bank Digital Currency (CBDC)

Several financial institutions have implemented climate change tracking tools to monitor spending

In a Reddit post, a user mentioned that Turkey’s Garanti Bank also offers a CO2 emissions banking tool.” It’s coming,” the Redditor warned.” They just need to create the necessary crisis to introduce it on a global scale. “In May 2022, Garanti BBVA introduced a carbon footprint toolthat calculates a customer’s carbon footprint based on banking transactions. Several banks and major payment se

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