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Adyen: How payments technology is tackling sustainability.

How payments technology is tackling sustainability

Written by: Hayley Fisher, AUNZ Country Manager at Adyen

As talks of climate change, air pollution, and plastic in waterways continue to dominate headlines and business agendas globally, retailers big and small are quick to jump on the bandwagon. With more and more Australians wanting to shop ethically and sustainably, sustainable practices should be at the top of the agenda.

Today, conversations around climate change have evolved into a climate emergency. Adyen believes that the health of our planet is everyone’s responsibility and that building an ethical business is no longer optional. In 2019, we became a carbon neutral company by offsetting all CO2 emissions from our activities since we were founded in 2006.

Adyen’s strategy to offset emissions by investing in environmental sustainability projects has allowed us to maintain our carbon-neutral status, which we renew annually. It is our commitment to reduce greenhouse gases (GHG) emissions in the years to come.

Social responsibility and environmental impact

There has been an increase in demand from shoppers wanting quick, easy and convenient ways to purchase and receive goods. Unfortunately, this convenience often comes at the expense of the environment. According to a recent study conducted by Mastercard, across 24 countries, 58 per cent of adults are more mindful of their impact on the environment than they were pre-pandemic. 85 per cent also said they’re willing to take personal action to combat environmental and sustainability challenges in 2021 and beyond

Retailers now see sustainability as an important source of competitive advantage, as consumers across the globe call on companies and brands to take action and operate in more sustainable and eco-friendly ways.

Beyond product composition or supply chain management, how else can retailers minimise their environmental impact? 
Many businesses are now proactively applying sustainable everyday retail practices, helping customers offset their impact and making sustainable retail a part of their brand story.


Becoming climate neutral

As a direct result of the pandemic, the attitudes and actions towards conscious consumption have accelerated. According to a recent survey by McKinsey and Company, one in four consumers say they are planning to focus more on environmental issues and will pay more attention to social aspects in their shopping behaviour.

In an effort to become carbon neutral and to compensate for all greenhouse gases (GHG) emitted by our company, Adyen’s environmental footprint is calculated following the GHG Protocol and complies with South Pole’s Climate Neutral label – from the energy used to power  our computers, to the miles we travel when visiting our merchants or other offices – all material emission sources are also covered.

Adyen has also purchased credits from third-party verified emission reduction projects, also known as “carbon offsets,” as well as invested in carbon reduction projects. These projects support ongoing climate action efforts such as reforestation, wildlife protection, and education-focused subsistence farming initiatives.

For example, we are empowering subsistence farmers in Uganda, via the International Small Group and Tree Planting Program (TIST), as well as reforestation and wildlife protection on the shores of Lake Kariba, Zimbabwe with the Kariba project, which protects forests and wildlife in four national parks around the lake, supporting the regions’ sustainable development and promotes the independence of local communities thorough healthcare, clean drinking water and education.

Leveraging payments technology to do good

Today’s consumers are constantly connected and aware of what they can do with technology. As a result, it’s creating greater opportunities for retailers to meet consumer demands. Businesses are tapping into technology to change the way they operate; to be more sustainable and to enhance customer experience through new innovations.

From the introduction of the EMV chip and PIN, to mobile payments, digital wallets, payment links, and contactless solutions, payments innovation has come a long way and has driven a new era in the way we interact and transact.

As the payments technology ecosystem continues to evolve, retailers can take advantage of such innovation to implement sustainable processes. For example, retailers are using Adyen’s technology to create a seamless option for customers to give back to society and the environment. Initiatives such as Adyen Giving and Adyen Restore enable customers to donate to the merchants’ preferred charity or to fund a climate action project of choice with one click. By leveraging such technologies, retailers can also provide a more fulfilling checkout experience.

H&M Australia recently launched the Adyen Giving initiative, empowering customers to make a donation at point of purchase at to help support UNICEF’s invaluable work providing life-saving vaccinations to children whose access to vaccines has been disrupted by the COVID-19 pandemic. “We are pleased to continue our local partnership with UNICEF Australia and support their important work in helping protect children from preventable diseases, particularly during this difficult time,” said H&M Australia Country Manager, Thomas Coellner.

In today’s retail environment, sustainability is fast becoming a non-negotiable for consumers. While there’s still significant work to be done, Adyen is just one of many organisations committed to addressing sustainability challenges. Taking responsibility for our environmental footprint is part of our license to operate in today’s society. By joining forces with our merchants, this presents an opportunity to generate positive environmental impact at scale.

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