Business & Innovation...

For a conscious consumer, there is no end to the ethical dilemmas of credit cards. Not only do they facilitate the massive over-consumption that our nation is criticized for, but they are tools of self-destruction for insatiable shoppers caught in the trap of predatory lending practices. And then there are the ecological effects of the millions of plastic PVC cards  produced each year, and the massive paper waste that credit card bills create. But now there are some eco-friendly and socially-conscious options for those of us who choose to charge.

Some banks are offering cards that allow customers to earn points that can be redeemed for donations to charitable environmental organizations. With the HSBC ecosmart MasterCard you can choose to contribute to the Earthwatch Institute, the Smithsonian Tropical Research Institute, the Arbor Day Foundation, or Wind Power Renewable Choice.

“Affinity Cards” are dedicated to a specific nonprofit organization whose logo is featured on the front of the card. The charity gets about half a percentage of the total purchases you make on the card, which can add up and become a profitable revenue stream. MBNA even offers a PVC-free WWF card, but (bummer!) only in Europe so far. Wells Fargo now offers a credit card that allows customers to contribute their earned points to invest in a corresponding amount of kilowatt hours produced by renewable energy projects. But if pure altruism isn’t what you’re after, some cards offer discounts on eco-friendly products in addition to charity contributions.

In Europe, many credit card companies see carbon offsets as the new airline miles. Instead of earning free trips, you can earn your green halo with a GreenCard, which neutralizes your carbon emissions by contributing to CO2 reduction initiatives like forest replanting. The greenhouse gas outputs of all of your combined purchases are calculated using a complicated algorithm, and then appropriate offsets are purchased in your name. These cards also help you understand which of your purchases are more carbon-creating, so you can analyze your statement for ways to shrink your carbon footprint.

But taking on a new card isn’t always the best choice for all of us, depending on our credit ratings, so we can still go green by signing up to receive only electronic statements.