1) Sustainability problem: Energy – Greenhouse gas emissions associated with consumer purchasing
Over the last decade, consumer consumption of goods and services has increased across the world, leading to depletion of natural resources and damage to the environment. These forces have prompted firms to create products that emit less carbon and create fewer emissions during their life-cycle stages including manufacture, transportation, disposal and usage. However, consumers often lack the time, guidance and information to easily consider these impacts when making purchasing decisions.
2) Technology Summary
- Yayzy has developed an app to track carbon footprint using payments data so consumers can connect spending to their impact on the planet. The app links to a consumer’s bank account, and helps track, reduce and compensate for the carbon footprint of purchases.
- Using payment data via Open Banking standards (UK based), the app automatically calculates the carbon footprint of each purchase a user makes, to help keep individuals’ total carbon monthly emissions in line with United Nations 2 degree target.
- As the user sees the carbon footprint of their purchase, the app gives the option to offset it immediately via the carbon offsetter Ecosphere Plus. For its underlying carbon data, Yayzy is using Vital Metrics (also used by Google, Microsoft and both the UK and US governments). App users can also find tips to reduce their carbon footprint, eco-friendly retailers near them or insights into lifestyle choices that have the highest environmental impact.
- Many competitors exist in the space, for example; CoGo, a real-time Carbon Footprint tracker, Doconomy and Tred, however Yayzy claims to be different by bringing together all of a user’s spending and showing item by item as they spend what the carbon footprint of that spend is.
- Looking to the future, Yayzy is developing a B2B service, offering the technology as APIs for banks and fintechs. The UK based startup is further developing a function to allow users to compete with friends on targets. Furthermore, the startup is looking to add an impact investing function for consumers to the app which involves introducing and recommending ESG investments.
3) Organizational stakeholders
- App users – Individual Consumers
- App users – Businesses
- 3rd parties. e.g. carbon offsetting companies, carbon data companies
- Shareholders, Investors
4) 3 steps in deploying this technology
- Development: Craft detailed use cases for the mobile app. A detailed use scenario helps every aspect of app deployment – from giving developers a tangible target to driving more accurate cost and ROI projections to securing funding for the next stage of app development and expansion beyond the UK.
- Testing and transparency: As the app develops further, it is important to gather relevant stakeholders into formalized roles so they can coherently respond to issues and help direct decision-making. Data transparency is essential to communicate to relevant stakeholders.
- Monitoring: Consider issues around process transformation and ongoing lifecycle by setting a schedule and pattern for app updates, and monitoring progress. Aspects of this may include; integration challenges, social and environmental impact and cost considerations.