Klarna launches carbon footprint insights for 90 million consumers
Disruptive payments provider, Klarna has launched CO2 insights for all shopping purchases as part of its "1% pledge", involving the donation of $10 million to initiatives supporting planet health.
The new feature on a Klarna app provides access to unbiased climate impact information for consumers "at no cost or judgement" as a first step to help drive awareness around climate change.
Klarna has partnered with Doconomy, a world leader in providing innovative calculation tools enabling banks and brands to display the carbon footprint of transactions, to provide shoppers with an average kgCO2 value for each purchase.
Every purchase made through Klarna’s payment methods will include a carbon footprint powered by Doconomy’s Åland Index, reaching up to 90 million Klarna customers, including its growing user base of 18 million monthly active app users.
In the long run, Klarna aims to further enable consumers to understand the true cost of consumption and provide them with the opportunity to take action.
“With fat, sugar and salt levels labelled on food we buy, why shouldn’t our CO2 emissions be just as visible? This type of information shouldn’t be a premium or luxury that consumers pay for, but rather an essential part of every shopping journey.
"That’s why we’re upgrading our app to give all our consumers globally transparent access to their shopping carbon footprint. We all make decisions that affect the health of the planet and it’s essential that everyone has access to sound information to make smart climate choices in a simple and straightforward way,” explained Klarna CEO Sebastian Siemiatkowski.
“With Klarna as a fintech frontrunner enabling all users to track, measure and understand their impact by presenting their carbon footprint on every purchase, there is great potential for positive impact! The financial sector has developed tremendous efficiencies to create, aggregate and protect wealth. Now that same force can address the alarming planetary health. Adding a unique data stream to the customer offering is a brilliant step to educate the many,” added Mathias Wikström, CEO of Doconomy.
Also to mark Earth Day today, Klarna is also launching its global Giveone.com platform, bringing to life a 1% pledge for the planet. As part of the initiative, Klarna will allocate 1% of its latest $1bn funding round - a total of $10m - to initiatives supporting the planet. The donation will focus on backing initiatives tackling the most pressing challenges around climate change and loss of biodiversity.
A committee of experts will facilitate the process of selecting impactful solutions globally to be funded through the pledge. The framework will be made available to the public, in the hope to inspire other growth and pre-IPO companies to follow suit and support solving today's planetary crisis.
To allow consumers to participate in the action, Klarna will offer them the opportunity to donate to the same projects and more through a donation integration in Klarna’s products powered by Milkywire, a tech platform for impact.
Klarna’s own carbon footprint will be addressed through an ambitious new approach. By 2030 the company aims to reduce company emissions by 50% and from 2021, Klarna will make annual financial contributions to high-impact climate projects, including carbon removal, blue carbon initiatives, reforestation and forest protection, and high-impact emission reduction projects.