Mastercard Lowered Scope 1 and 2 Emissions by 43%

(Photo courtesy of Mastercard)

Mastercard reported that the company successfully lowered Scope 1 and 2 emissions by 43% from 2016 to 2019, and reduced their Scope 3 emissions by 40% in the same time period.

In a commitment approved by the Science Based Targets initiative, Mastercard has targeted a 38% absolute reduction in Scope 1 and Scope 2 GHG emissions, and a 20% absolute reduction in Scope 3 emissions by 2025 from a 2016 baseline. The company’s newly published 2019 corporate sustainability report details progress so far.

Direct Scope 1 emissions fell from 99,214 metric tons of carbon dioxide equivalent (MTCO2e) in 2016 to 56,898 MTCO2e last year. For indirect Scope 2 emissions, the drop was 94,728 MTCO2e in 2016 and 52,141 MTCO2e in 2019. Data centers account for 55% of Mastercard’s total energy usage across the board, according to the report, followed by offices and then travel.

Making data centers more efficient is a priority. “Across the globe, Mastercard has co-located data centers,” the report noted. “We include sustainability requirements in our data center RFPs and ensure we choose the most efficient sites that also meet our security requirements and data needs. We also strive to choose co-located data centers that take environmental sustainability into consideration.”

The company operates five data centers. Last year one of them was re-certified Gold under LEED-Operations + Maintenance, achieving a power use effectiveness (PUE) of 1.39 in 2019. Although Mastercard previously monitored PUE levels for their own operated data centers, the company began monitoring PUE at co-locations in 2020.

Goods and services, business travel, employee commuting, fuel- and energy-related activities, and waste generated in operations all contribute to the company’s indirect Scope 3 emissions. In 2016, the Scope 3 total was 849,277 MTCO2e. Last year that dropped to 503,012 MTCO2e.

“In total, our supply chain contributes more than 70% of our total carbon footprint, so we’re working to help our suppliers become more environmentally conscious,” the company said. That includes adding sustainability to the supplier onboarding process, and creating programs that increase the level of hands-on supplier interaction.

Additional highlights from the report:

• Joined RE100, formalizing their commitment to continue using 100% renewable energy across all of their global operations.
• First in the payments industry to receive approval from the Science Based Targets initiative (SBTi) for the company’s updated emissions target.
• Launched the Priceless Planet Coalition in January 2020, pledging to plant 100 million trees over five years with their partners.
• Increased their CDP climate change score to a “B” and maintained their “A” grade for Supplier Engagement Rating.

“In 2020, our board of directors affirmed the critical nature of environmental stewardship, placing it within the purview of the Nominating and Corporate Governance Committee,” the company said. “This reflects the universal importance of environmental consciousness among our customers, stakeholders, cardholders, and Mastercard’s people at every level.”