Klarna’s carbon plan includes consumer footprint tracking

A global retail bank, payments and shopping service is enabling customers to track their shopping carbon footprint in-app.

Klarna users across 16 global markets (including the U.S., Canada, Australia, and U.K.) can now see the carbon footprint of their transactions. The company is partnering with climate impact tracking platform Doconomy to provide an average kgCO2 value for each purchase, free of charge. Carbon footprint data is measured with the Doconomy Åland Index solution.

“With fat, sugar and salt levels labeled on food we buy, why shouldn’t our CO2 emissions be just as visible?,” said Sebastian Siemiatkowski, CEO, Klarna. “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.” 

On Earth Day (Thursday, April 22), Klarna will also launch its global Giveone.com platform. As part of a corporate initiative, Klarna will allocate 1% of its latest $1 billion funding round ($10 million) to programs supporting the planet. 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 companies to follow suit. 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 the Milkywire platform.

By 2030, Klarna 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/ton for all scope 1, 2 and travel emissions (remaining scope 3 emissions set at $10/ton).

Founded in Sweden, Klarna works with over 250,000 global retail partners, including H&M, Ikea, Expedia Group, Samsung, Peloton, Abercrombie & Fitch, and Nike.