Mastercard: Greening Supply Chains with Renewable Banking

Mastercard, the world’s second largest card issuer with more than 1.5 billion debit and 1.03 billion credit cards in use globally, is sharpening its climate credentials by weaving sustainability into the heart of its supply chain.

As the demand for climate action increases, Mastercard’s focus on clean energy is creating ripple effects through its vast network of partners and suppliers.

Renewables power operations

Since 2019, Mastercard has run all its company-owned and operated sites worldwide on 100% renewable electricity. That includes power from onsite sources, renewable energy certificates and wider clean energy investments. It’s a step that’s less about box-ticking and more about tackling the link between economic growth and rising carbon emissions.

In doing this, Mastercard is backing what the International Energy Agency (IEA) calls the ‘first fuel’ – energy efficiency.

As Dr Fatih Birol, Executive Director at the IEA, puts it: “The IEA has long championed energy efficiency as the ‘first fuel’, as it is not only the most secure energy resource but also among the most cost-effective measures to cut energy bills and reduce greenhouse gas emissions.”

By powering its global operations with renewables, Mastercard is shifting its attention to the supply chain – the source of most of its carbon emissions.

Through clear science-based targets, the company aims for net zero emissions across its entire value chain by 2040. That includes direct emissions (Scope 1), energy-related emissions (Scope 2) and the more complex, outsourced emissions (Scope 3) which dominate the footprint of a business of this scale.

Building resilience on-site

Investments in clean energy are not limited to power contracts. Mastercard is also putting in place infrastructure that can generate clean energy onsite, making its locations more resilient in the face of climate extremes.

In Missouri, a 40-acre solar field is under construction to power the company’s largest technology hub in O’Fallon. When complete, the site will be able to run independently of the local power grid, providing backup during blackouts and reducing load at peak demand.

In New York, a different type of energy solution is being rolled out. At its headquarters in Purchase, Mastercard is drilling 160 boreholes into the ground to create a closed-loop geothermal system. Each borehole is 600 feet deep and together they will support the building’s heating and cooling without needing gas, which has been one of the firm’s largest direct fossil fuel sources.

This move away from fossil fuels is replicated across Mastercard’s global offices. Solar panels are being added to rooftops in Dubai, Harrogate, Kansas City and elsewhere on the Purchase campus. In St Louis, a new solar project is in the works, with half of the site kept as green space and reforested under the Priceless Planet Coalition – Mastercard’s global effort to restore 100 million trees across six continents.

As Tara Maguire, Executive Vice President for Financial Operations and Ellen Jackowski, Chief Sustainability Officer, explain in a joint blog: "We are demonstrating that profitable businesses can simultaneously be good neighbors — that business success and community well-being are fundamentally connected."

Aligning sustainability with supplier action

The real test of Mastercard’s climate strategy lies in Scope 3 emissions – the supply chain. In 2023, the company reported that 91% of its suppliers, responsible for 85% of total supply chain emissions, disclosed their carbon data. Many of those suppliers are now working towards science-based emissions targets of their own.

Mastercard backs this effort with practical support, including access to energy efficiency tools and guidance on renewable adoption. It also encourages joint planning to cut waste and streamline operations, building a more transparent and collaborative supply chain.

These actions are already delivering results. By 2023, Mastercard had achieved a 48% cut in Scope 1 emissions and a 40% drop in Scope 2 emissions against its 2016 baseline. With a 20% reduction in Scope 3 emissions also reported ahead of its 2025 target, the strategy appears to be working.

The company’s approach makes sustainability part of its core operating model, not just an add-on. As Mastercard continues to evolve, its message is clear: climate action must go beyond operational boundaries and transform the way suppliers, partners and clients operate.

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