Klarna launches carbon footprint insights for 90 million consumers
- Up to 90m* Klarna users across 16 markets globally now have the ability to track their shopping carbon footprint in-app.
- Klarna and Doconomy to launch one of the largest global carbon footprint awareness building efforts to date.
- Launch of Klarna's 1% pledge will bring $10M to initiatives tackling climate change and loss of biodiversity alongside 50% emissions reduction ambition for 2030.
STOCKHOLM, April 20, 2021 /PRNewswire/ -- Klarna today announces the launch of 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 aims to democratize access to unbiased climate impact information for consumers at no cost or judgement as a first step to help drive awareness around climate change.
The feature will introduce a seamless experience for users to access carbon footprint insights and brings to life one of the largest-ever awareness-raising efforts on carbon footprints, based on consumer reach. 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. The partnership introduces CO2 data at global scale and is made available free of charge in the Klarna app.
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. With many partner retailers working hard to improve in this area through numerous ways, the solution marks a first step in Klarna's journey to play its part. 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," says Sebastian Siemiatkowski, CEO of Klarna.
With a global network of more than 90 million consumers and 250,000 retailers, Klarna's reach represents a unique opportunity to make unbiased climate impact information available globally and help everyday shoppers become informed decision makers.
"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," says Mathias Wikström, CEO of Doconomy.
Rolling out Klarna's 1% pledge
On Earth Day, Klarna will also launch 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 curated 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. The annual sum will be established through an internal carbon tax set at $100/tonne for all scope 1, 2 and travel emissions (remaining scope 3 emissions set at $10/tonne).
Note for editors:
- All figures are in USD.
- Product video about the new carbon footprint insights integration (European and US version).
- For further information on emission scopes, read more here.
* All 90 million consumers will have access to this information through the Klarna app. The app today includes 18 million monthly active app users.
ABOUT KLARNA
We make shopping smooth. With Klarna consumers can buy now and pay later, so they can get what they love today. Klarna's offering to consumers and retailers include payments, social shopping, and personal finances. Over 250,000 retail partners, including H&M, IKEA, Expedia Group, Samsung, ASOS, Peloton, Abercrombie & Fitch, Nike and AliExpress have enabled Klarna's innovative shopping experience online and in-store. Klarna is one of the most highly valued private fintechs globally with a valuation of $31 billion. Klarna was founded in 2005, has over 3,500 employees and is active in 17 countries. For more information, visit klarna.com.
ABOUT DOCONOMY
Doconomy, founded in Sweden 2018, provides digital solutions to help track and measure the carbon footprint. Doconomy's service, DO, a mobile banking app, manages savings and promotes sustainable consumption. The Åland Index impact calculations in DO use data, covering 99% of global market cap, through a unique partnership with Trucost, a part of S&P Global. Through Doconomys collaboration with the United Nations Climate Change Secretariat (UNFCCC), to educate and engage individuals around climate action, additional innovative tools to explain our impact are also developed. Doconomy utilizes innovation, data and design to support consumer change of behavior by enabling well -informed choices, which in turn, promote responsible consumption. The 2030 Calculator is such an innovation, to increase transparency and responsibility on product level.
* * DISCLAIMER ÅLAND INDEX
The carbon footprint is calculated using the Åland Index™ which combines the cost of a purchase with the carbon footprint of that particular merchant category. It means that the index can separate between purchases at the florist or the dentist but does not know whether if one bought roses or tulips. The index does not claim to calculate the exact footprint of a person's lifestyle but will give a good enough understanding of the carbon emissions of spending. The Åland Index was launched in 2016 by Ålandsbanken and has been further developed in cooperation with S&P Global Market Intelligence and Trucost. The index is managed and developed by Doconomy in Sweden. S&P Global Market Intelligence is not an affiliate of Ålandsbanken or Doconomy and it disclaims all liability for any claims, losses, or damages in connection with use or application of its material in the Åland Index. The purpose of the Åland Index is to raise awareness around how our lifestyle impacts the climate and promote positive behavioral change however past performance is not an indication or guarantee of future results. The index is reviewed by an independent third party, EY, and updated regularly.
ABOUT MILKYWIRE
Founded in Sweden 2018, Milkywire is a new tech platform for impact. By developing digital tools and modern infrastructure for the charity sector Milkywire connects donors globally to carefully audited civil society organizations working to solve the most pressing planetary problems facing humanity. Through the Milkywire app, website, API tools, employee giving program and more users can discover, connect, and donate to projects around the world fighting the climate crisis, biodiversity crisis, and pollution crisis. Milkywire provides a unique and engaging experience by allowing users to support local grassroots projects directly, connect with the experts working in the field, and see proof of the impact by following their progress through weekly video updates on the Milkywire app.
Press contact
Daniel Byrne
press@klarna.com
+46 (0)701612666
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SOURCE Klarna Bank AB (publ)
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