August 24, 2024 – As the global push towards a greener economy intensifies, small businesses are emerging as pivotal players in achieving net-zero emissions. With 94 percent of consumers now prioritizing environmentally responsible practices, these enterprises are facing increasing pressure to deliver sustainable goods and services. Recognizing the crucial role small businesses play in this transition, Mastercard Strive has partnered with organizations worldwide to equip these enterprises with innovative technologies aimed at reducing their environmental impact.
Mastercard Strive’s Green Initiatives
Mastercard Strive’s initiatives are designed to help small businesses minimize their environmental footprint while promoting social inclusivity. The focus is on practical solutions that address specific environmental challenges, such as reducing or eliminating single-use plastic packaging, encouraging participation in the circular economy, and enabling businesses to assess their impact on both environmental and social fronts.
One of the standout projects in this initiative is Mastercard Strive’s partnership with Novek, a company working to tackle the issue of single-use plastic waste, particularly in emerging markets like Kenya. According to the United Nations Environmental Programme, approximately 85 percent of all single-use packaging ends up as waste, either in landfills or as unregulated litter. In Kenya, this problem is exacerbated by the informal nature of many small businesses, which often sell household products in small quantities to accommodate low-income consumers. This practice results in substantial environmental harm, as the frequent small purchases generate a large volume of plastic waste.
Innovative Solutions in Kenya
In response to this challenge, Mastercard Strive collaborated with Novek in 2022 to develop an Internet of Things (IoT)-enabled dispensing system for washing powder, targeted at micro-retailers in Kenya. The primary goal was to eliminate single-use plastic packaging, while simultaneously boosting the revenue of these micro-retailers.
The program has seen significant progress, with Novek successfully building and testing dispensing prototypes. The initiative provided critical insights into the challenges and opportunities associated with implementing such technologies. For example, regular training for retailers was identified as essential to ensure consistent use of the technology, while building customer trust emerged as a key factor in encouraging the adoption of new purchasing methods.
As the program continues, Novek is focused on refining its dispensing machines to improve stability and reduce maintenance needs. The company is also working to establish partnerships that will support its growth and amplify the impact of its innovative solutions.
The Broader Impact of Mastercard Strive
Mastercard Strive’s collaboration with Novek is just one example of how the initiative is empowering small businesses to lead the way in sustainable practices. By providing these enterprises with the tools and technologies needed to reduce their environmental impact, Mastercard Strive is playing a critical role in the global transition to a green economy.
The impact of these efforts extends beyond environmental benefits. By fostering social inclusivity and supporting the economic growth of small businesses, Mastercard Strive is helping to create a more sustainable and equitable global economy. The initiative’s focus on practical, scalable solutions ensures that small businesses can contribute meaningfully to global sustainability goals without compromising their profitability.
Challenges and Future Directions
While the progress made by Mastercard Strive and its partners is encouraging, there are still significant challenges to overcome. For instance, the widespread adoption of new technologies by small businesses often requires overcoming barriers such as limited access to capital and resistance to change. Moreover, the success of these initiatives depends on continued collaboration between the private sector, governments, and non-governmental organizations.
Looking ahead, Mastercard Strive plans to expand its support for small businesses, particularly in emerging markets. By building on the lessons learned from its initial projects, the initiative aims to develop even more effective solutions for reducing environmental impact and promoting social inclusivity.
One of the key takeaways from the initiative is the importance of a holistic approach to sustainability. This means not only addressing environmental issues but also ensuring that the transition to a green economy is inclusive and equitable. For small businesses, this approach can lead to new opportunities for growth and innovation, as well as a stronger connection with consumers who are increasingly demanding sustainable products and services.
Conclusion
As the world shifts towards a greener economy, small businesses have a critical role to play. With the support of initiatives like Mastercard Strive, these enterprises are well-positioned to lead the way in sustainable practices. By equipping small businesses with the tools and technologies needed to reduce their environmental impact, Mastercard Strive is helping to pave the way for a more sustainable and inclusive global economy.
The collaboration between Mastercard Strive and Novek, along with other organizations, demonstrates the potential for small businesses to drive meaningful change. As these initiatives continue to evolve, they will likely serve as a model for how small businesses around the world can contribute to the fight against climate change while also fostering social and economic development.
Source: Mastercard Strive Initiative