Doconomy began in 2018 as an impact-tech start up investing in new measures to help tackle climate change. From the very start, we’ve been developing an ecosystem of financial tools to educate and drive positive change. Through our alliances with Ålandsbanken, the UNFCCC and Mastercard, we’re able to raise global awareness, disseminate knowledge to the many, and bring evidence of what utilizing the power of banking, leading climate expertise, and global payment technology at scale can achieve.
Together, we can bring about structural change by rewiring the financial system. It is our genuine belief that becoming conscious of the impact of our consumption can build a foundation for a new way of thinking. What if there was a way we could rewrite the rules of finance by promoting responsibility and accountability, and fostering direct action?
The Åland Index is a global transaction-based Index that enables financial transactions to be measured by their impact on the planet. It is an award-winning innovation, that merges financial transactions with leading sustainability data and technology, developed together with the leading financial data provider S&P Global/Trucost and verified by the third-party auditor Ernst & Young. The Index covers 99% of global market capital and is based on the Three Scopes from the Greenhouse Gas Protocol, which allows consumers to see the direct impact from purchased products across both Scope 1 and 2 and the indirect impact from products in Scope 3, both Cradle-to-Gate and across the entire Product Lifecycle.
Effectively, through the Index, Doconomy activates a circular ecosystem which connects consumers with producers and empowers users with real-time knowledge to make informed decisions about what they choose to consume. The Index can be applied to all types of transactions – debit and credit card, accounts, and digital wallets. It is continuously updated.
The user can carry out any card transaction and allow for the Index to recognize what type of purchase is made based on two key inputs: MasterCard’s Merchant Category Codes (MCCs) and Doconomy’s 47 sectors. Mastercard’s MCCs are four-digit credit card codes that are used to classify what type of company the product or service purchased comes from (of which codes the Index today covers about 1450). Doconomy’s Sectors correspond to the 47 most common sectors within which (these types of) companies operate.
Accordingly, when a bank user carries out a transaction, the Åland Index recognizes what type of company the product or service comes from and the relevant sector within which the company operates. It then uses this input to triangulate — based on the sum of the purchase benchmarked against the average carbon emissions of the relevant sector — the carbon impact that is coupled with the product or service. This output is then visualized for the user as the CO2 footprint, and the 47 sectors are further aggregated into seven overarching lifestyle categories to allow the user to see — on a day-to-day basis — how his or her impact weighs differently across various activities in life.
CO₂e or CO₂ equivalent or carbon dioxide equivalent is a metric measure of various greenhouse gases such as carbon dioxide, methane, nitrous oxide, taking into account each gas’s effect on climate change. Each greenhouse gas has a different global warming potential (GWP) and persists for a different length of time in the atmosphere. The gases are converted to the equivalent amount of carbon dioxide to enable comparison.