From Earth Day 2021 Klarna will launch one of the largest global carbon footprint awareness building efforts ever, in association with our partners Doconomy . Through the Klarna app we will be providing our 90m customers worldwide with CO2 insights for all their shopping purchases.
This initiative is part of the 1% pledge we made in March, which involves Klarna donating USD$10 million to initiatives that support planet health.
The new app feature is free of charge (and judgement). Its aim is simple: to democratise access to unbiased climate impact information as a first step to help drive awareness around climate change.
Every purchase made through Klarna will include a carbon footprint estimate powered by Doconomy’s Åland Index**, reaching up to 90 million Klarna customers, including our growing user base of 18m monthly active app users. Many of our partner retailers are working hard to improve in this area and this solution marks a first step in our journey to play our 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.
Doconomy is 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. Klarna’s partnership with Doconomy introduces CO2 data at global scale.
“With fat, sugar and salt levels labelled on food we buy, why shouldn’t our CO2 emissions be just as visible?,” says Klarna’s CEO Sebastian Siemiatkowski.
“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.”
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.
Bringing our 1% pledge to life
We are also pleased to be launching our global Giveone.com platform, bringing to life our 1% pledge for the planet. As part of this, Klarna will allocate 1% of our latest US$1bn funding round – a total of US$10M – to initiatives supporting our planet’s health. These initiatives will tackle 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 in the future, Klarna plans to offer 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).