A recent study found nearly 80% of U.S. consumers prioritize a sustainable lifestyle. Consumers are showing their concern for the environment with their voices, votes, and wallets. From the causes and brands they support to everyday activities like recycling and conserving electricity, sustainability is driving consumer behavior now more than ever.
How can credit unions participate in the movement to protect our planet and encourage their members to do the same?
Provide Sustainable Plastics
In addition to advancing a digital-first approach, offering greener options for payment cards is a powerful way to connect with members and protect the planet. Most payment cards are manufactured using PVC (or polyvinyl chloride), and this first-use plastic comes from a combination of fossil fuel chemicals. Although each card contains only five ounces of plastic, approximately 6 billion credit and debit cards are produced annually. At this scale, plastic cards’ annual environmental impact equates to 900,000 tons of carbon dioxide.
Rather than relying on first-use plastics, sustainable cards can be manufactured using upcycled post-industrial waste, such as plastic litter, bottles, and containers from landfills. Ocean-bound plastic sustainable cards are typically made from diverted plastics that would otherwise pollute natural ecosystems within 50 miles of an ocean coastline.
An eco-friendly payment card aimed at reducing first-use plastic by reusing plastic waste might motivate sustainably minded consumers to bank with you. Offering cards manufactured with recycled PVC or recovered ocean-bound plastic is an excellent way for a credit union to reduce its overall carbon footprint while attracting new cardholders.
Support Members’ Sustainability Journeys
It is clear consumers care about the environment and are looking for ways to adopt a more sustainable lifestyle. Fortunately, credit unions already possess the data needed to identify which members are most interested in sustainability and target those members with customized messaging and offers. For example, are these members taking advantage of your recycled plastics program? Are they aware of your credit union’s other initiatives to minimize its environmental impact and reduce its carbon footprint? Is there an opportunity to contribute to green charitable initiatives your credit union supports?
Credit unions can analyze member spending data to see how and where members spend their money. You can then use this data to help members understand the environmental impact of their buying decisions and identify ways to behave more sustainably moving forward.
Prioritize The Environment
Has your credit union established internal sustainability goals? To succeed, all sustainability-related initiatives should align with the credit union’s overall mission, core values, and goals. There are many benefits to offering cards made of sustainable materials, especially if it is part of a credit union’s larger green initiative, including:
- Reduced carbon footprint. Offering eco-friendly products and programming helps reduce your impact on the environment and the communities your credit union serves.
- Positive impact on brand image. Demonstrating your credit union’s values and commitment to the environment can translate to increased member engagement and loyalty.
- Influence on buying decisions. Consumers want to do business with brands that have similar values as them, and many would pay a premium for a sustainable product.
- Competitive advantage. Eco-focused offerings can set you apart from competing financial institutions. Even if being sustainable isn’t a personal priority, the idea of using an environmentally friendly card is attractive to many consumers.
PSCU is proud to play an active role in helping mitigate the payments industry’s environmental waste through an initiative the company launched in 2021. The CUSO’s sustainability efforts include two sustainable card options that reduce first-use plastic by incorporating recycled plastic into the card body, instituting and promoting recycling efforts, reducing consumption, reusing materials, and choosing more eco-friendly products, among other initiatives.
The shift to sustainability will remain an important consideration among consumers and a growing imperative for credit unions. Implementing sustainable cards and other green initiatives empowers your credit union to take a public stance on environmental issues and unite with members and potential members around a shared cause. The credit union philosophy of “people helping people” extends to the planet we all inhabit – and credit unions should make strategic decisions and offer innovative solutions that drive real positive change in their communities and the environment.
Cody Banks leads PSCU’s payments, fraud, loyalty, and contact center product teams. In his role, Banks focuses on developing and delivering safe, easy, and convenient payments experiences for the company’s owner credit unions. Prior to joining PSCU in 2017, Banks spent nearly 10 years in the credit union industry navigating complex initiatives with a focus on journey mapping of the member experience.