DO BLACK - THE CARBON LIMIT CREDIT CARD

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ClientDOCONOMY
Category A02. Applied Innovation
TitleDO BLACK - THE CARBON LIMIT CREDIT CARD
Product/ServiceDO BLACK
Entrant RBK COMMUNICATION Stockholm, SWEDEN
Idea Creation RBK COMMUNICATION Stockholm, SWEDEN
PR HILL+KNOWLTON STRATEGIES Stockholm, SWEDEN
Production MAKING WAVES Stockholm, SWEDEN
Credits
Name Company Position
Johan Pihl RBK Communication ECD
Mathias Wikstrom RBK Communication ECD
Nathalie Green Dconomy CEO
Fredrik Lagerträd Doconomy CTO
Jacob Odqvist Doconomy CMO

Why is this work relevant for Innovation?

About 60% of a person's carbon footprint derives from consumption. Changing consumer behavior can significantly reduce CO2-emissions. DO Black is a radical tool and the first credit card with a CO2-emission limit, stopping you from overspending, not based on available funds but on the impact by your consumption. Patent (P41904293SE00) combines three functions. The ability to measure the impact of every transaction (Åland Index), the set CO2-emission limit calculated per country/capita, and the payment system integration of a CO2-emission limit overriding accounts financial credit level. The technology blocks transactions exceeding the CO2-limit, disables the credit card and notifies the cardholder.

Background

Doconomy is a Swedish fin-tech dedicated to providing tools to reduce and compensate for individual CO2-impact. When UN released the IPCC report outlining the needed for cuts in CO2 emissions, Doconomy wanted to further reinforce its commitment. The challenge was to ensure an absolute understanding of the required cuts in CO2 emissions needed to achieve a 50% reduction by 2030 and to position Doconomy with limited resources in a crowded fintech environment, as a unique agent for change. Budget for product development was € 150 000. Working closely with UNFCCC and Mastercard, the first CO2-emission limit linking consumption with its impact was developed, and DO Black, the first carbon limit credit card was introduced. The innovation is a scalable stand-alone application, relevant all markets and payment solutions. The CO2-limit, although mandatory on DO Black, is offered as an optional function on existing accounts to every bank in the world.

Describe the idea

There’s a definite, data substantiated, emotional driver connected to climate change, but there’s a lack of concrete solutions and tangible tools that engage and activate consumers. DO Black is a radical new tool against climate change. It’s the first card with a CO2-emission limit, stopping you from overspending, not based on available funds but on the impact caused by your consumption. The innovation combines three functions. Adapting the ability to measure the impact of every transaction (Åland Index), the set CO2-emission limit calculated per country/capita, and the payment system integration of CO2-emission limit overriding the accounts financial credit level. The intention is to make Doconomy perceived as a tangible solution, resulting in awareness, user adoption and productive new partnerships.

What were the key dates in the development process?

2018, March, tech pre-study with Ålandsbanken 2018, June, Tech dev of first platform 2018, September, negotiations with UN 2018, October, com-launch of Doconomy platform 2019, February, MOU from UN 2019, March, Approval from Mastercard 2019, March, Tech dev IRL CO2 limit 2019, April, Patent registration process 2019, April, Launch of the DO Black innovation 2019, June, Patent filed 2019, November, first bank up start for implementation

Describe the innovation / technology

How the CO2-limit works: 1. A purchase is made in-store/online using PIN or EMV/Contactless 2. The purchase is processed by the merchant, sent via the Acquirer to Mastercard/MIP and further to the Bank’s Payment Card System. 3. The Payment Card System receives the requests, verifies card, account and PIN, and checks available funds as well as CO2-limit. 4. The Card Transaction Engine calculates the availability of credit as well as CO2 impact through Åland Index. 5. If the purchase exceeds the CO2-emission limit or if there are insufficient funds, the transaction is denied, and the card holder is notified. The Card System returns the response to the Merchant (via Mastercard/Acquirer). The patent combines three components. 1. The ability to measure the CO2-impact of every transaction (Åland Index). 2. The set CO2-emission limit calculation. Data provided by UNFCCC and Our World in Data (Oxford). This data is used to calculate the total consumption-based CO2-emissions per capita. This differs between countries and the CO2-limits are updated annually. 3. The payment system integration of CO2-emission limit overriding the accounts financial credit level. The DO card is currently under production and DO Black is estimated to be implemented with first bank in November.

Describe the expectations / outcome

Long-term outcome is to increase awareness and contribute to drastic reduction of CO2-emissions from consumption with 50% by 2030. The CO2-limit innovation is a scalable stand-alone application, adaptable to different markets, relevant all credit card and payment solutions. The CO2-limit, although mandatory on DO Black, can be offered as an optional function on existing accounts. Intention to make Doconomy perceived as a (1) helpful solution, (2) resulting in awareness, (3) user adoption and (4) productive partnerships. 1. “DO Black” is in production with CO2-limit per country/capita calculated. 2. Awareness built with earned media reach of +35.000.000 and keynotes at sustainability/fintech summits worldwide. 3. All initial targets have been exceeded, with +8 000 user registrations in Sweden alone. 4. +40 banks worldwide and credit card companies have reached out to discuss collaboration. Ms. Espinosa, UNFCCC has a publicly endorsed Doconomy and Mastercard has defined Doconomy as “the future of sustainable payments”.