Buy now, pay later (BNPL) provider Klarna has launched a new free feature to democratize access to unbiased climate impact information for consumers making purchases using the company’s flexible payments offering. The move is part of the company’s 1 percent pledge, which includes a $10 million donation to initiatives supporting planet health.
“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,” said Sebastian Siemiatkowski, CEO of Klarna.
“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.”
To bring the feature to life, Klarna has partnered with Doconomy to provide shoppers with an average kgCO2 value for each of their purchases and CO2 data on a global scale.
Klarna’s current global network of more than 90 million consumers and 250,000 retailers puts the BNPL provider in a unique position to provide unbiased climate impact information, ultimately helping everyday shoppers make more informed decisions.
Klarna’s footprint calculator will be powered by Doconomy’s Åland Index.
“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,” said Mathias Wikström, CEO of Doconomy.
Additionally, Klarna announced today that it would allocate one percent of its latest $1 billion funding round – a total of $10 million – to back initiatives that tackle the most pressing challenges around climate change and loss of biodiversity.
For those looking to get in on the action as well, Klarna is offering the opportunity to donate to the same projects through an integration that is being powered by Milkywire, a tech platform that helps supports UN Sustainable Development Goals.
By 2030, Klarna plans to reduce its own company emissions by 50 percent. The company is kick-starting that goal by making annual financial contributions to high-impact climate projects, including carbon removal, blue carbon initiatives, reforestation and forest protection as well as high-impact emission reduction projects.