How can you measure and mitigate the social and environmental impacts of payment systems?

1 Define your objectives

The first step to measure and mitigate the social and environmental impacts of payment systems is to define your objectives and indicators. What are the specific outcomes and impacts that you want to achieve or avoid with your payment system? How will you measure them? What are the relevant standards and benchmarks that you can use to compare and evaluate your performance? For example, you might want to align your objectives with the United Nations Sustainable Development Goals, or with the Environmental, Social, and Governance (ESG) criteria that investors and customers increasingly demand. You might also want to consider the specific needs and preferences of your target market and stakeholders, and how your payment system can address them.

2 Assess your impacts

The next step is to assess your current and potential impacts, both positive and negative, on the social and environmental dimensions that you have identified. This can involve collecting and analyzing data, conducting surveys and interviews, engaging with experts and communities, and using tools and frameworks such as life cycle assessment, social return on investment, and impact management project. The aim is to understand the direct and indirect effects of your payment system on people and planet, and to identify the sources and drivers of those effects. For example, you might want to assess how your payment system affects access to financial services, income distribution, gender equality, human rights, biodiversity, resource consumption, waste generation, and greenhouse gas emissions.

4 Monitor your results

The fourth step is to monitor your results and evaluate your progress towards your objectives. This can involve tracking and reporting your performance indicators, collecting feedback and testimonials, conducting audits and reviews, and using tools and frameworks such as balanced scorecard, logic model, and theory of change. The aim is to measure the outcomes and impacts of your actions, and to compare them with your baseline and benchmarks. For example, you might want to monitor how your payment system affects the number and quality of financial transactions, the satisfaction and loyalty of your customers, the reputation and profitability of your business, the well-being and empowerment of your beneficiaries, and the health and resilience of your environment.

5 Communicate your story

The fifth step is to communicate your story and share your learnings and achievements with your stakeholders and the public. This can involve creating and disseminating your impact report, case study, or story, as well as engaging with media, events, and platforms. The aim is to demonstrate your commitment and contribution to social and environmental issues, and to inspire and influence others to join or support your efforts. For example, you might want to communicate how your payment system has enabled more people to access and benefit from financial services, how it has improved the livelihoods and conditions of your customers and partners, how it has reduced your environmental footprint and enhanced your sustainability, and how it has created a positive impact on the world.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?