Empowering Small Businesses for a Green Economy: Mastercard Strive’s Innovative Solutions
There’s a significant environmental transition underway, with small businesses at the forefront. Globally, 94% of consumers are calling for a green economy and expect businesses to drive the necessary changes for achieving net-zero emissions. Small businesses, as key components of most economies, play a crucial role in environmental sustainability and require assistance to meet the increasing consumer demand for sustainable products and services.
Acknowledging the vital contribution of small businesses to reaching net-zero goals, Mastercard Strive has collaborated with international organizations to support innovative technologies that help these businesses make a positive environmental impact. These collaborations involve testing and scaling inclusive innovations that minimize environmental harm and support communities affected by climate change.
In this post, we delve into these initiatives, highlighting their successes and lessons learned. Mastercard Strive’s programs assist small businesses in reducing or eliminating single-use plastic packaging, participating in the circular economy, and evaluating their environmental and social impacts.
Reducing Single-Use Plastic Packaging
The UN Environmental Programme estimates that 85% of single-use packaging ends up as waste, either in landfills or as litter. In emerging markets like Kenya, where many small businesses operate informally, products are often sold in small quantities, leading to increased plastic waste and higher consumer costs over time.
In 2022, Mastercard Strive partnered with Novek to develop an Internet of Things-enabled dispensing system for washing powder targeted at micro-retailers in Kenya. The goal is to eliminate single-use plastic packaging while increasing retailer revenue. Novek successfully tested dispensing prototypes, learning the importance of regular training and building customer trust for new technology adoption. Novek is now focusing on creating a more durable machine and forming growth-supportive partnerships.
In Indonesia, Mastercard Strive has teamed up with Alner, which uses a reusable packaging system for daily essentials like detergent and rice. Consumers can use this packaging up to 20 times. Alner creates a sustainable loop by providing reusable packaging to FMCG companies and incentivizing returns through a deposit-reward system. Mastercard Strive is enhancing Alner’s mobile app with features to improve business performance, including training materials, peer learning, gamification, digital payments, and market insights.
Participating in the Circular Economy
The circular economy aims to minimize waste by keeping products and materials in use for longer, reducing the 80% of products that currently end up in landfills or are incinerated. In the UK, Mastercard Strive has partnered with Tern Eco, a retail tech solution that supports small businesses in adopting circular retail models like reuse and resale. Tern Eco’s solution helps retailers set up circular programs, offering flexibility for repairs, upcycling, and resale. The aggregated data from these programs will provide insights into product life cycles and market trends, promoting circular models in other markets.
Assessing Environmental and Social Impact
Countries are increasingly requiring businesses to measure and report their social and environmental impacts through Environmental, Social, and Governance (ESG) reporting. However, current ESG solutions are often costly and not tailored to small businesses. To address this, Mastercard Strive has partnered with Vested Impact, a platform offering affordable, data-driven impact assessments for small businesses globally. Vested Impact’s platform provides access to over 300 million research papers and impact data, offering AI-powered summaries aligned with regulations and supply chain needs. This data helps small businesses enhance market access and sustainability.
In the EU, Mastercard Strive is focusing on helping small businesses navigate evolving sustainability regulations and consumer demands through an innovation fund. In the US, Mastercard Strive is addressing the impact of climate change on agriculture by partnering with California Farmlink to pilot a program integrating capital tools, digital solutions, and conservation measures. Federal funding for climate initiatives, such as the $27 billion Greenhouse Gas Reduction Fund, will be critical for investing in small businesses and their communities.
Looking Ahead
As the shift toward a green economy continues, small businesses must be included in this transition. Mastercard Strive’s initiatives aim to support global net-zero emission goals while fostering the growth and resilience of small businesses worldwide. We look forward to the insights and advancements our partners will share as they develop digital and data-driven solutions to promote business growth and environmental sustainability.
Acknowledging the vital contribution of small businesses to reaching net-zero goals, Mastercard Strive has collaborated with international organizations to support innovative technologies that help these businesses make a positive environmental impact. These collaborations involve testing and scaling inclusive innovations that minimize environmental harm and support communities affected by climate change.
In this post, we delve into these initiatives, highlighting their successes and lessons learned. Mastercard Strive’s programs assist small businesses in reducing or eliminating single-use plastic packaging, participating in the circular economy, and evaluating their environmental and social impacts.
Reducing Single-Use Plastic Packaging
The UN Environmental Programme estimates that 85% of single-use packaging ends up as waste, either in landfills or as litter. In emerging markets like Kenya, where many small businesses operate informally, products are often sold in small quantities, leading to increased plastic waste and higher consumer costs over time.
In 2022, Mastercard Strive partnered with Novek to develop an Internet of Things-enabled dispensing system for washing powder targeted at micro-retailers in Kenya. The goal is to eliminate single-use plastic packaging while increasing retailer revenue. Novek successfully tested dispensing prototypes, learning the importance of regular training and building customer trust for new technology adoption. Novek is now focusing on creating a more durable machine and forming growth-supportive partnerships.
In Indonesia, Mastercard Strive has teamed up with Alner, which uses a reusable packaging system for daily essentials like detergent and rice. Consumers can use this packaging up to 20 times. Alner creates a sustainable loop by providing reusable packaging to FMCG companies and incentivizing returns through a deposit-reward system. Mastercard Strive is enhancing Alner’s mobile app with features to improve business performance, including training materials, peer learning, gamification, digital payments, and market insights.
Participating in the Circular Economy
The circular economy aims to minimize waste by keeping products and materials in use for longer, reducing the 80% of products that currently end up in landfills or are incinerated. In the UK, Mastercard Strive has partnered with Tern Eco, a retail tech solution that supports small businesses in adopting circular retail models like reuse and resale. Tern Eco’s solution helps retailers set up circular programs, offering flexibility for repairs, upcycling, and resale. The aggregated data from these programs will provide insights into product life cycles and market trends, promoting circular models in other markets.
Assessing Environmental and Social Impact
Countries are increasingly requiring businesses to measure and report their social and environmental impacts through Environmental, Social, and Governance (ESG) reporting. However, current ESG solutions are often costly and not tailored to small businesses. To address this, Mastercard Strive has partnered with Vested Impact, a platform offering affordable, data-driven impact assessments for small businesses globally. Vested Impact’s platform provides access to over 300 million research papers and impact data, offering AI-powered summaries aligned with regulations and supply chain needs. This data helps small businesses enhance market access and sustainability.
In the EU, Mastercard Strive is focusing on helping small businesses navigate evolving sustainability regulations and consumer demands through an innovation fund. In the US, Mastercard Strive is addressing the impact of climate change on agriculture by partnering with California Farmlink to pilot a program integrating capital tools, digital solutions, and conservation measures. Federal funding for climate initiatives, such as the $27 billion Greenhouse Gas Reduction Fund, will be critical for investing in small businesses and their communities.
Looking Ahead
As the shift toward a green economy continues, small businesses must be included in this transition. Mastercard Strive’s initiatives aim to support global net-zero emission goals while fostering the growth and resilience of small businesses worldwide. We look forward to the insights and advancements our partners will share as they develop digital and data-driven solutions to promote business growth and environmental sustainability.
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