Singapore cardholders can use rewards to offset carbon footprint

Credit card users in Singapore will soon be able to offset carbon emissions and support biodiversity by using their rewards points, following a partnership between Australia-based tech company Sphere and DCS Card Centre.

The collaboration enables consumers to convert up to 8% of their DCS Visa Platinum Card spending into carbon offsets, with the feature accessible from early June through their card-linked app.

According to Sphere Chief Executive Officer Shaun Lordan, the new feature allows customers to redeem rewards for accredited environmental projects, with the emission reductions displayed in real time through the app. This development follows the implementation of Sphere's carbon insight and action technology with four major banks in Asia: Sacombank and Techcombank in Vietnam, as well as Maybank and Public Bank in Malaysia.

"We're so excited to partner with DCS Card Centre on this rewards innovation that gives consumers the opportunity to easily do good for the planet," Mr Lordan said. "For the first time, consumers can use rewards points to offset carbon emissions and aid biodiversity by investing in accredited environmental projects such as reforestation in a few clicks via the app.

"I can't think of a better use for a rewards platform. Around 70 per cent of global emissions come from the things we as consumers purchase, so driving change at an individual level is hugely important."

DCS Card Centre Senior Managing Director, Consumer Cards, Lionel Lee, said the partnership with Sphere highlights DCS' focus on sustainability alongside customer experience. "We're proud to partner with Sphere, offering our cardholders the power to make a positive environmental impact with every transaction," Mr Lee said.

Beyond its collaboration with DCS Card Centre, Sphere is engaging with merchants and payments platforms across Australia and Asia Pacific, assisting them in automating climate emissions reporting and enabling environmentally focused services at the checkout for customers.

Sphere's technology platform features an application programming interface and modular design, facilitating straightforward integration of carbon action features for financial institutions and merchants. Sphere employs artificial intelligence and machine learning to pair its card payment system with research contributions from Swinburne University of Technology, which holds equity in the company.

The company has also formed a partnership with Visa spanning the Asia-Pacific, Central Europe, Middle East, and Africa regions, enabling access to its carbon insight and action technology for hundreds of banks in more than 100 markets worldwide.

The technology assists cardholders in monitoring their carbon footprint resulting from their card spending, and offers opportunities to offset emissions through micro investments in carbon reduction projects that carry at least a minimum A rating.

"Given that around 70 per cent of global emissions come from the things we buy every day, we want to drive genuine change at the individual level on the world's path to net zero," Mr Lordan said.

"If customers want to take further action, we provide them with the opportunity to easily offset their emissions with micro investments in quality environmental programs with a minimum A rating."