MANILA, Philippines — Banks and financial institutions are being encouraged by the Bangko Sentral ng Pilipinas (BSP) to be environment friendly by reducing, reusing and recycling credit cards.
BSP Deputy Governor Chuchi Fonacier has asked credit card issuers to reduce, reuse and recycle plastic cards issued to clients.
Fonacier said the latest estimates show that over three billion plastic payment cards are shipped every year, with a single card having an average lifespan of three years.
She pointed out that each credit card comprises of around five grams of plastic, resulting to an estimated 15,000 metric tons of plastic annually, with the majority ending up in landfills.
To accelerate sustainability, Fonacier said the central bank has launched its 11-point Sustainable Central Banking Strategy to become an enabler, mobilizer and doer.
“For its part, the BSP continues to implement initiatives aimed at reducing climate and environmental risks through the sustainable central banking program,” she said.
According to Fonacier, the regulator strives to create a policy framework that encourages the adoption and expansion of sustainable finance.
“With a common goal toward reducing carbon footprint, the industry can introduce reforms to reduce, reuse and recycle credit cards,” she said.
For one, the BSP official said MasterCard announced in April its efforts to remove first-use PVC (polyvinyl chloride) plastics from payment cards on its network by 2028.
She also cited the rise of eco conscious consumers who prefer sustainable payment options.
Together with the Credit Card Association of the Philippines (CCAP), Fonacier said the BSP continues to make the credit card industry and consumers future- ready.
“The CCAP has been our partner in promoting inclusive finance. Some initiatives include the development of measures to protect credit card holders and merchants, conduct of information campaigns about the responsible use of credit cards and prudent debt management, and sharing of educational videos about consumer protection and fraud awareness in the CCAP social media,” she said.
Furthermore, Fonacier said CCAP has been actively participating during bank supervision policy committee meetings, which allow the BSP and the industry to discuss opportunities, issues and strategies.
In 2021, the Philippines committed to reduce 75 percent of its emissions by 2030 and quickly scale up efforts to adapt to a changing climate, setting itself one of the most ambitious targets among Southeast Asian countries.
CCAP chairperson Ma. Magdalena Surtida said the industry’s credit card receivables jumped by 29 percent to P619 billion as of end-June, while card spend surged by 39 percent to P853 billion.
Surtida said online shopping peaked during the pandemic, while spending on appliances, furniture, electronics and gadgets, indoor fitness, health and wellness products, cooking or baking, online courses, gaming, food and grocery deliveries increased during the global health crisis.
“Since 2022 until today, consumer spending on travel and dining out is still on the rise, as people who longed to see family and friends during the lockdown are now doing so, and with a vengeance. As for business travel, we have not yet seen it go back to its pre-pandemic level as business meetings can still be conducted online,” she said.