The GreenFi Impact Overview Methodology

From Chad Hunter, VP of Sustainable Products at GreenFi

Hi GreenFi Community,

I'm incredibly excited to share our new Impact Dashboard with you all.

We built this feature to give you a clear, honest look at the real climate action you're taking just by being a part of GreenFi.

We know you care about making a difference, and we want to show you exactly how your everyday financial choices add up to meaningful change.

Transparency is key to building trust. That's why I want to pull back the curtain and explain how we estimate the climate impact across each feature in your new dashboard. We're all about clear data, not just vague claims. So, let's dive into the numbers and methods behind your impact.


Our Methods: Seeing Your Impact Clearly

Trees Planted: Growing a Greener Future

You're helping plant trees, and that's a big deal for pulling CO2 from the air. Through the Plant Your Change program, our members have funded the planting of over 30 million trees already!

To estimate the CO2 a tree will absorb over its lifetime, we consider 3 major factors:

  • Its species (like mangroves)

  • How long it's expected to live

  • Its chance of reaching maturity


Our tree planting partners have changed over the years, and so has our approach to measuring impact.


For trees funded on and after March 23, 2024:

Our current reforestation portfolio with our partner veritree plants 80% mangroves and 20% agroforestry trees. We use veritree's carbon sequestration calculation methodology, which you can find more details about on their FAQ. Based on their data and our public Impact Hub, here's what we estimate:

  • Kenya Mangrove Forests: About 80% of these trees reach maturity, each absorbing 0.31 tonnes of CO2.

  • Tanzania Mangrove Forests: Similar to Kenya, 80% maturity, 0.31 tonnes of CO2 per tree.

  • Haiti Agroforestry Forests: About 75% reach maturity, each absorbing 0.02 tonnes of CO2.

  • Senegal Agroforestry Forests: Also 75% maturity, 0.02 tonnes of CO2 per tree.

When we combine these rates with our tree mix and maturity rates, each tree you've helped fund with veritree (on or after March 23, 2024) is estimated to absorb about 200 kgCO2e over its lifetime.


For trees funded before March 23, 2024:

Our previous partner, Eden Reforestation, focused on a mix of planted forests, natural regeneration, agroforestry, and mangroves. Our older calculation looked at the yearly CO2 absorption rate for a living tree, multiplied by its expected lifespan, survival chance, and a "reversal buffer" (which accounts for trees lost to natural events).

You can find full details on this method in our FAQ. Based on this, each tree you helped fund before March 23, 2024, is estimated to absorb about 162.5 kgCO2e over its lifetime.


Deposits for a Fossil-Free Future: Avoiding Emissions

When you deposit money at any bank, your money doesn't just sit there; banks lend it out.

Large, traditional banks lend billions of dollars to fossil fuel companies, which creates a lot of carbon emissions. To show the impact of keeping your money with GreenFi, we compare it to having your money at a big, traditional U.S. bank.

We use carbon emission factors from Project Drawdown and Topo Finance for both traditional banks and climate-responsible banks like GreenFi that don't fund fossil fuels with deposits.

Specifically, Project Drawdown reports that a traditional, carbon-intensive bank has an average emission factor of 0.24 kgCO2e per dollar per year, while a climate-responsible bank like GreenFi is estimated at 0.057 kgCO2e per dollar per year - a 76% reduction.

We apply these factors to your daily checking and savings account balances to calculate your avoided emissions.


Green Cash Back: Get Rewarded for Smart Choices

When you shop at brands in our Green Marketplace, you're likely choosing products with a lower carbon footprint. As described in our Green Marketplace selection process, these brands might use climate-friendly materials like recycled plastic, measure and reduce their emissions, offset their carbon, or support environmental non-profits.

While shopping with these brands certainly helps reduce your personal carbon footprint, it's difficult to get exact carbon data for every product…at least right now.

Because of this, we don't try to put a specific CO2 number on your Green Marketplace purchases. Instead, we show you the total cash back you've earned, which highlights your positive spending habits and rewards you for choosing more sustainable options.


Carbon Offsets (for GreenFi Plus Members): Reduce Your Driving Footprint

If you're a GreenFi Plus member and you buy fuel for your car, we automatically offset those emissions. Here's how we figure out the impact:

We spot any gas station purchases and assume it was for fuel (even if you just bought snacks!). This helps us make sure we're over-estimating emissions and over-offsetting them for you.

We use average daily gas prices from AAA and the U.S. Environmental Information Administration, along with your transaction amount, to estimate how many gallons you bought.

Finally, we use Environmental Protection Agency (EPA) data to calculate the CO2 equivalent emitted from each gallon of gas.

We then offset these emissions with high-quality carbon credits. You can learn more about our carbon credit program and the projects we support here.


Monthly Contributions: Support Our Mission and Help Environmental Non-Profits

Your monthly "Pay What is Fair" contributions directly help the environment. For example, your contributions helped our 2024-2025 partner, American Forests, plant 145,000 seedlings to reforest the Sierra National Forest after the 2020 Creek Fire.

While these impacts are real, it's tricky to put a precise CO2e number on them and link them to individual members. So, for now, we focus on showing your contribution history and the non-profits you're supporting.


Redwood Fund Investments: Lower Your Investment Footprint

Getting clear carbon emissions data for investments can also be a challenge. However, based on the data available for GreenFi's Redwood Mutual Fund, we can show you the avoided Scope 1 and 2 CO2e emissions intensity per dollar invested compared to the S&P 500 benchmark. This data comes from our investment fund advisor, UBS. (Note: Scope 3 emissions aren't included in these factors.)

We apply these factors to your daily investment account balance in the GreenFi Redwood Mutual Fund to calculate your avoided emissions. Here's a look at how our Redwood Fund compares to the S&P 500.

To save you from having to do the math, these numbers show that the Redwood Fund has a 66% lower direct carbon footprint than the broader market (S&P 500).


Your Impact, Clearly Measured

We believe that understanding your impact is the first step toward making an even bigger difference. The Personal Impact Overview, backed by these methodologies, gives you the tools to see your climate action in a whole new light.

We're committed to continuous improvement and welcome your feedback as we work together towards a greener financial future.

‹ Back to the articles