Direct Debit Takes ‘Green’ Payment Crown

A new report by Carbon Footprint Limited has found that the carbon emissions generated by an ongoing direct debit are around 65 times smaller than that of a regular cheque payment – demonstrating that automated payments are a greener, as well as a convenient, way for corporates to make payments. According to the figures in the report, the carbon footprint of an ongoing direct debit commitment is 0.76g CO2 per process, compared to cheques, which it was found generate carbon emissions of 49.28g CO2 each time they are used. The analysis, undertaken in conjunction with Bacs Payment Schemes (Bacs), showed a comparison that looked at the overall impact of each payment method over the course of a year. Assuming that each payment method was used once a month, for a year, Carbon Footprint Limited concluded that 12 cheques would generate 591.36g CO2 per annum, including set-up. In comparison, paper direct debits would create 73.36g CO2 (eight times smaller) and paperless direct debit transactions would generate an even smaller 35.51g CO2 (16 times smaller).


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