The calculator collects information using a methodology called the Doconomy Åland Index, which collects data from Trucost, an ESG analytics firm that estimates the hidden costs of businesses using unsustainable natural resources.
The index calculates the impact of transactions using an average footprint number for specific industries. For the carbon calculator, the information is correlated with Mastercard’s merchant category codes such as ‘food and beverages’ or ‘clothing’.
The calculator also shares information on the number of trees needed to absorb the same amount of carbon dioxide released from consumer purchases in specific categories.
“While it’s not perfect, it actually gives a good indication of what your total spending for the month is,” Jorn Lambert, Mastercard’s digital head, told CNN Business. He calls the calculator “a tool between respect for privacy and yet information to consumers.”