How carbon tracking helps banks connect with customers

Every sustainability journey starts with awareness. Before people or businesses can take climate action, they need to understand their impact. That’s where carbon tracking comes in: by turning everyday spending data into personalised carbon footprint estimates, banks can empower customers to make more informed decisions and take  steps towards reducing their emissions.

How carbon tracking works

Many of our daily activities, like eating, driving, and heating our homes, produce greenhouse gases (GHG). Calculating the total carbon footprint behind these actions is complex, as emissions come from a wide range of sources across supply chains.

But here’s the good news: since most emissions are closely linked to how people spend their money, banks already hold the key to unlocking this data.

Carbon tracking works by analysing transaction data and matching it to emissions data. Spending is broken down into categories like transport, food, or utilities, and then cross-referenced with emissions databases to estimate the carbon footprint of each category. These calculations are refined over time using customer feedback and advanced modelling techniques.

Luckily, AI can help make this process a lot simpler and faster. And banks can seamlessly integrate carbon trackers into their digital experience to quickly analyse, categorise and translate transaction data into simple carbon insights for their customers. 

Why banks are best placed to lead

Banks are in a unique position to scale climate action. By integrating carbon tracking into digital banking experiences, they can deliver real-time, personalised carbon insights to millions of customers, without requiring them to download another app or change their behaviour. They also have the tools to drive action—from personalised tips and nudges to green financing offers and reward schemes that incentivise more sustainable choices.

Crucially, embedding carbon trackers into banking apps helps reach millions of people who don’t yet proactively manage their carbon footprint via a dedicated app. 

Find out how Cogo's carbon tracking solution empowered 8 million NatWest customers to measure and reduce their carbon footprint.

The benefits of carbon tracking for banks

Carbon tracking doesn’t just support customers — it delivers real business value too. Here’s what banks can unlock:

Improve brand reputation

Customer-facing climate solutions signal leadership in sustainable finance, helping banks build trust, brand equity, and long-term loyalty.

Increase engagement

Providing customers with information on the carbon impact of their spending motivates them to log in and engage with the banking app. Banks can also send personalised recommendations and nudges on steps they can take to reduce and offset their impact, helping to increase engagement. 

Differentiate

Our research showed that 62% of UK banking customers want their bank to help them reduce their environmental impact, and this was even higher among people under 25 (71%). Offering carbon tracking helps banks stand out and win over the next generation of customers.

Improve ESG performance

With growing pressure around climate disclosure and regulation, carbon tracking also helps banks report on Scope 3 emissions— a key part of their ESG (Environmental, Social, and Governance) strategy.

Why Cogo?

Cogo offers one of the most advanced and scalable carbon tracking solutions on the market. Here’s how it works:

• Spend-based modelling: We map customer transactions to carbon emissions using industry-leading Environmentally Extended Input-Output (EEIO) models, which include both direct and supply chain emissions.
• Market-specific accuracy: We use the best available EEIO model for each region to ensure insights are locally relevant and robust.
• Behavioural science built-in: Our Carbon Insights solution uses proven behavioural techniques like nudges, feedback, and incentives, to motivate action and reduce emissions.
• Instant, integrated, and action-oriented: Our solution plugs seamlessly into banking apps, enabling near-instant footprint estimates and personalised suggestions that help customers turn insights into action.

Learn more about Cogo's carbon tracking solution.