Klarna provides AI-based sustainability insight
Klarna is helping consumers on its platform measure the sustainability of certain products, using artificial intelligence (AI).
The global payments provider and shopping platform is leveraging the Clarity AI sustainability solution to display AI-based sustainability data on electronics items. After consumers make a purchase using Klarna in the electronics category, new Clarity AI-powered information on the brand’s environmental efforts will be displayed in the form of brand badges.
The brand badges will indicate whether a company has lower greenhouse gas emissions than similar businesses, whether it derives a higher proportion of its energy from renewable sources, has climate change policies and a roadmap to positively impact climate change, and whether or not a company is transparent in its reporting of climate-related information.
According to recent Klarna consumer survey data, 62% of surveyed consumers say that sustainability when shopping for electronics is important to them (e.g., that the product is made of more sustainable materials or the brand is taking active steps towards climate change). Also, the study showed that over two-thirds of respondents think it’s important that the brands they buy actively combat climate change and use recycled or sustainable materials in their products, and 24% of respondents actively seek out brands that are ethical and sustainable.
Klarna promotes sustainable projects
Klarna has been expanding its sustainability efforts for some time. In February 2022, the company released its first set of ongoing shoppable Sustainable Collections in the Klarna app. The collections are designed to bring greater transparency about sustainable apparel to consumers, helping them to discover and make informed shopping decisions.
And in April 2021, Klarna teamed up with climate impact tracking platform Doconomy to enable users across 16 global markets (including the U.S., Canada, Australia, and U.K.) to see the carbon footprint of their transactions.
By 2030, Klarna aims to reduce company emissions by 50% and starting in 2021, Klarna is making 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/ton for all scope 1, 2 and travel emissions (remaining scope 3 emissions set at $10/ton).
“In 2021, Klarna introduced the CO2e emissions tracker, which brought to life one of the largest awareness efforts on carbon footprints ever made,” said Salah Said, head of sustainability at Klarna. Now, we are taking it one step further by providing Klarna’s more than 150 million shoppers with reliable and transparent metrics for electronics brands, helping shoppers to not only understand the impact of their purchases but also to make more environmentally conscious decisions going forward. Together, Klarna and Clarity AI are empowering consumers to ‘vote with their wallet’ for a more sustainable world.”
“We are thrilled to empower over 150 million shoppers with the information they need to make more sustainable choices when they shop”, said Angel Agudo, head of product and member of the board of directors of Clarity AI. “With more than 2 million daily transactions processed by Klarna, this initiative can have a significant collective effect, showcasing the scale and potential that Clarity AI can power and unleash as we make our sustainability metrics accessible to consumers.”