What is the concept behind Code2 points and how are they calculated?

What is the concept behind Code2 points and how are they calculated?

Earlier we shared our ideas on how consumers can participate in Net Zero transition through diverting their spending to more sustainable companies and elaborated on companies’ carbon intensity here.

Now, as long as we assume that consumers share companies’ reduction of carbon emissions is proportional to the share of their spending in companies’ revenues, we would like to enable consumers to understand their impact and incentivize them for diverting their spending to more sustainable companies.

So we are introducing Code2 rewards as bonus points with two functions:

• Communication of how much CO2 reduction (proportional to the share of your spending in the company’s revenues) is attributed to your spending with sustainable vendors through our platform pro rata their own reduction of carbon footprint (based on the respective company’s latest annual data). 1 CODE2 point is equal to 1 kg of CO2 emissions saved. For example, if a company had 1 million dollars of revenues and reduced carbon emissions by 50 tons in 2023, that means that with every 20 dollars spent with this company you account for 1 kg of carbon emissions savings and, respectively, get 1 CODE2 point; so for example, if you’ve bought a garment from such a sustainable company for 200 dollars, you account for 10 kg of carbon emissions reduction and get 10 points;  
• Reward you with discounts for points in our climate-focused ecosystem thus incentivizing you to further route your spending to companies which really care and are able to measure and demonstrate their impact. The rate of discount per 1 point is set by particular vendors when applied directly by them; for discounts offered via our platform we peg the value of 1 point to the carbon floor price level recommended by the IMF which is USD 75 per ton, i.e. USD 0.075 / AED 0.27 per 1 kg of CO2 and 1 CODE2 point.       

A more practical example:

As an Amazon Associate, we are referring users to Amazon market place (and earn commissions on qualifying sales). Meanwhile, Amazon is known for its extensive emissions reduction strategy and an ambitious 2040 Net Zero goal. In 2022 they had USD 513.98 billion of revenues and emitted 71.27 million tons of carbon dioxide, while having reduced carbon intensity of sales by 7% compared to 2021. That means that their emissions amounted to 0,14 kg of CO2 per every dollar of sales in 2022 and 0,15 kg in 2021, a reduction of 0.01 kg per 1 dollar spent on Amazon. In case of CODE2, that means that you get 0.01 Code2 point for each dollar spent, or, in other terms, 100-dollar purchase would earn you 1 Code2 point.  

But in case of Amazon that's by far not yet the end of the story. In their reports so far Amazon hasn't included emissions and Net Zero impact of its vendors, which adds up to Amazon's own impact. We at Code2 are selecting brands which demonstrate ambitous Net Zero goals and steady and sound decrease of their carbon footprint. For example, when you buy Clarins products, which according to their latest data reduced 1 kg of CO2 per every 14 dollars of revenues, you get 0.07 Code2 points for every dollar spent. Together with Amazon's positive impact you eventually get 0.08 Code2 points for every dollar. For example, buying a Clarins 120-dollar serum, you share 10 kg of CO2 savings with the vendors and get 10m Code2 points which youi can use towards your next purchases.    

Our Code2 rewards points solution is currently in development and we are working hard to roll it out to you. We envisage it to be introduced in two stages:

- Stage 1 - impact tracker where you will get points showing your Net Zero impact as your share in vendors' reduction of carbon footprint according to their latest publicly available official data, as stated above;

- Stage 2 - as long as we complete integration of redemtion of points in our systems, you will be able to spend them towards purchases via our platform (all Code2 points previously earned as Nert Zero impact tracker will qualify for discounts as soon as the redemption functionality is connected). 

We will keep you posted on our further progress with Code2 points and in the meantime will be actively developing our ecosystem to enable your 360-degree climate-friendly lifestyle through spending with numerous sustainable companies for all your day-to-day choices and helping tackle the climate crisis in a rewarding way.

Stay tuned for more vendors and products added to our marketplace: http:\\code2world.online

We will be happy to hear your opinion on the concept of Code2 points and if you want to start using them for impact tracking and incentives for your spending with sustainable companies:

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