Sustainability.

Our commitment.

We believe that our purpose is not solely defined by creating economic growth but also by our impact on people and the planet. To become part of the solution when it comes to global challenges such as financial anxiety, inequality, and the deteriorating health of the planet, we are developing a comprehensive sustainability strategy with clear and ambitious commitments.

We are determined to approach the global challenges with a sense of urgency and great optimism creating meaningful, positive, and lasting change to build a better future for everyone.

Our sustainability efforts are guided by environmental and social action in three main focus areas:

  • Planet Health
  • Diversity & Inclusion
  • Financial Wellness

 

 

Planet Health.

We are committed to addressing the environmental challenges the world is facing with particular urgency by setting ambitious carbon emissions targets and supporting initiatives that mitigate climate change and biodiversity loss. In April 2021, we committed to dedicating 1% of future funding rounds to initiatives that promote the health of the planet, particularly those that protect, mitigate and restore climate and biodiversity. We have also implemented an internal carbon tax that goes toward effective climate projects and launched the CO₂ Emissions Tracker in our app, offering CO₂ insights for all shopping purchases our 90 million customers make through Klarna.

 

Greenhouse gas emissions
In calculating our Scope 1-3 emissions, we follow the guidelines of the GHG Protocol, the world’s leading reporting standard for carbon and corporate emissions. Therefore, in addition to our commuting and travel emissions, we also include the carbon footprint of our supply chain in our Scope 3 reporting.

Scope GHG emissions Jan – Dec 2020
Scope 3: 86,972 tCO₂e
Scope 2: 761 tCO₂e
Scope 1: 396 tCO₂e

 

Reducing our footprint by 50% by 2030
As part of our Climate Commitment, we have set a target to reduce our emissions by 50% by 2030. We are addressing our own carbon footprint with an ambitious new approach by making an annual financial contribution to high-impact climate projects, including but not limited to carbon removals from technical carbon removal, biochar, blue carbon, reforestation, and forest protection

The annual sum will be established through an internal carbon tax set at:

$100/tonne for all Scope 1, 2 and travel emissions
$10/tonne for all remaining Scope 3 emissions

In addition, we will reduce our emissions by working with our suppliers to encourage them to measure and reduce their own emissions, establishing carbon-free cloud infrastructure, increasing our efforts to purchase clean electricity, and reducing business travel and commuting.

 

Give One – Our planet health initiative
The Give One initiative is the starting point of Klarna’s contributions to the health of the planet. On Earth Day 2021, Klarna pledged to donate 1% of all funding rounds to initiatives that improve the health of the planet, specifically to actions that preserve, mitigate and restore climate and biodiversity. At the time, that was $10 million (September 2021: $16.5 million). And because we want others to do the same, we’re making giving easy and transparent for our 90 million active customers. A curated committee of experts will help select which global solutions to fund. Learn more about Give One and the organizations we are supporting here.

 

CO₂ Emissions Tracker
As our customers increasingly demand support to better understand how their purchasing power impacts the planet, we have also introduced the CO₂ Emissions Tracker in our app. It provides CO₂ insights for all purchases made by our 90 million customers at Klarna, supported by Doconomy’s Åland Index. Through this integration, Klarna customers can see the climate impact of their purchases directly in the app. This is represented by average kgCO₂ ratings for each transaction and the action taken on those emissions by donating to a Carbon Transformation Fund. The new feature makes CO₂ data accessible on a global scale, bringing to life one of the largest carbon footprint awareness efforts ever.

 

Partnerships
We have committed to the Climate Pledge and signed on to the Race to Zero campaign supported by the United Nations. In doing so, we join other leading companies to drive meaningful change and advance climate protection further and faster. We commit to implementing decarbonization measures in line with the Paris Agreement to reduce our CO₂ emissions by 50% by 2030. In the long term, Klarna commits to achieving net-zero emissions across the company by 2040 at the latest.

 

 

Diversity & Inclusion.

Klarna’s mission is to foster an inclusive and empowering work environment. Everyone has an equal opportunity to develop and reach their full potential and is encouraged to be the best and truest version of themselves. We are committed to a workplace where everyone is treated with dignity and respect, regardless of their background. Diverse perspectives are welcomed! Our goal is to eliminate prejudice and discrimination. To raise awareness, we continuously develop and review guidelines, such as our Inclusive Communication Guide that support everyone in their internal communications, and provide employee training on unconscious bias.

 

Gender balanced by 2025

We strive for gender equality by accelerating women’s careers. On International Women’s Day 2021 we announced our target of reaching gender balance by 2025 through a series of events highlighting women’s contributions to the company and the actions we have taken on gender equality at Klarna. Today, 39% of Klarna’s employees are women, up 3% from 2019, and 31% of Klarna’s leadership positions are held by women.

But we know we still have a lot more to do. Women are underrepresented in STEM professions at Klarna, reflecting the wider industry imbalance. We are testing new ways of sourcing diverse talent, ensuring equal promotions and equal pay, and working on removing any friction from our hiring process. We support women in engineering at all levels, an effort that is also led by our internal employee resource groups, who support women engineers’ personal and professional development at Klarna.

 

 

Financial Wellness.

From finance overviews to in-app budgeting tools, Klarna gives consumers the power to manage their spending and take control of their money. Our products offer flexibility with a choice of ways to pay, including delaying payments or spreading the cost with no fees or interest. Making sure consumers can comfortably repay is our top priority so we run eligibility assessments on every single transaction and restrict access if payments are missed.

 

We offer financial well-being information across our markets, including a responsible spending hub, Financial 101s, and help for those who need it. We have been running a number of initiatives to empower consumers to manage their finances responsibly:

The Never Forget Test is an in-app reminder launched in Sweden and Austria to help consumers who forget to pay for the first time avoid reminder fees.

Our new WikiPink site in Sweden reveals Klarna’s own consumer debt data and challenges the wider credit industry to provide greater transparency for consumers.

KlarnaSense is an initiative specifically targeted at supporting responsible spending in the UK. In early 2021, we launched an Influencer Council, the first of its kind, to provide greater clarity on guidelines as more consumers turn to social media for financial guidance. These guidelines go far beyond legal requirements to ensure fair and transparent information for consumers. We’ll continue to develop them in line with the evolution of social channels.

 

 

Do you want to learn more?
Click here to learn more about our commitment.