Bacs commissions Carbon Footprint Ltd to assess the carbon emmissions of a Direct Debit
Paying a monthly bill by Direct Debit can result in 94% less carbon emissions than paying by cheque
The study
In order to fully understand the carbon emissions associated with paying bills by Direct Debit in comparison to more paper based methods such as cheques, Bacs commissioned Carbon Footprint Ltd to undertake an evaluation of the processes involved in setting up a Direct Debit and for subsequent bill payments.
What is a carbon footprint?
A carbon footprint is a measure of the impact our activities have on the environment in terms of the amount of greenhouse gases produced, measured in units of carbon dioxide (CO2).
How is the carbon footprint calculated?
The carbon footprint appraisal has been made through a combination of specific data provided by Bacs and Cheque and Credit Clearing Company and then data computation by Carbon Footprint's analysts who have calculated the footprint based on metrics developed by the UK Department for Environment, Food and Rural Affairs (DEFRA).
Why is it important?
Over the past two decades the effect of climate change has become more marked. Considerable evidence exists that most of this warming has been caused by human activities. That is to say we have altered the chemical composition of the atmosphere through a build up of greenhouse gases - primarily carbon dioxide, methane and nitrous oxide.
What if we do nothing?
Rising global temperatures will cause sea levels to rise and alter local climate conditions, affecting forests, crop yields and water supplies. It will affect human health, animals and many types of ecosystems. Deserts may expand and some of our countryside may be permanently altered.
Summary of results
The calculations have revealed that the emissions associated with a paperless Direct Debit set up are less than half those associated with the original paper based system, and that an ongoing subsequent bill payment by Direct Debit is less than 2% of the footprint of a regular cheque payment.
| 64.24 gCO2 |
26.39 gCO2 |
0.76 gCO2 |
Annual carbon footprint
Even accounting for the paperless set up of a Direct Debit, and assuming that customers already have a cheque book and therefore there is no footprint associated with setting up a cheque payment, the carbon footprint of a monthly Direct Debit over a year is 35.51 gCO2, compared to 591.36 gCO2 for the cheque payment, a staggering 94% less emissions over the course of the year.
| 26.39 gCO2 |
9.12 gCO2 |
35.51 gCO2 |
| 64.24 gCO2 |
9.12 gCO2 |
73.36 gCO2 |
| 0.00 gCO2 |
591.36 gCO2 |
591.36 gCO2 |
* For the purposes of this comparison, we have assumed that bill payers already have a cheque book as a consequence of opening a bank account.
Download a copy of this information in PDF format:
Bacs carbon footprint information 843 Kb PDF
Link to the
carbon footprint calculator on the carbon footprint website