New tool that enables consumers to shop eco-responsibly
By Retail4Growth Bureau | June 15, 2023
Klarna, the AI powered global payments network and shopping destination, has unveiled new tools enabling consumers to make more environmentally informed purchasing decisions, including a top-up donations feature and expanded CO?e emissions tracking insights within the Home & Gardens and Jewelry & Accessories categories.
Klarna, the AI powered global payments network and shopping destination, has unveiled new tools enabling consumers to make more informed purchasing decisions and take action for the planet, including a top-up donations feature and expanded CO₂e emissions tracking insights within the Home & Gardens and Jewelry & Accessories categories. With 150 million consumers worldwide, Klarna continues to shape the future of shopping, evolving beyond payments to become the go-to starting point for every purchase. With these new products, Klarna supports smart shopping with an emphasis on environmental impact.
"We are proud of these new tools that go beyond merely providing information about the environmental impact of purchases. Klarna's CO₂e tracker now provides even more knowledge to help consumers make informed purchasing decisions, with insight into the emissions set free for nearly 93 million products, while the top-up donations feature enables individuals to act and support non-profit organizations more easily," said Sara Davidson, Sustainability Marketing and Communications Lead, Klarna.
A new top-up donations feature
With the introduction of Klarna's new top-up donations feature, consumers can add a $1 donation to purchases made using Klarna's interest-free Pay in 4 service at integrated retail partners both online and in the Klarna app, including Sephora, Nike, and more. Powered by the charitable fundraising platform Milkywire, donations will be captured as part of the down-payment (or first installment), and will go to the WRLD Foundation to support organizations working to implement UN Sustainable Development goals, with a focus on climate, people and biodiversity.
The top-up donations feature is now available in the US with plans to go live in other markets in the future, and is the latest product released as part of Klarna's Give One planet health initiative. Consumers around the world can also donate to Give One through the donations feature in the Klarna App, which launched in June 2022 and allows users to make donations to charity causes instantly or via scheduled regular donations. Klarna's donations feature is currently available in the United States, the United Kingdom, Sweden, Norway, the Netherlands, Germany and Austria.
Updated CO₂e tracker with expanded category insights
According to Klarna's 2023 Shopping Pulse, over half (57%) of global shoppers are also looking for ways to track their carbon footprint while shopping online.
Addressing this demand, Klarna's upgraded CO₂e tracker now includes insights into the environmental impact of products within the Home & Garden and Jewelry & Accessories categories, with data powered by carbon tracking platform Vaayu. The tracker now offers Klarna shoppers granular carbon footprinting for an additional 1.4 million products across these two additional categories, increasing access to emissions data for shoppers and pioneering visibility of emissions data at an unprecedented scale. Together, Klarna and Vaayu have created the largest consistently derived cradle-to-grave life cycle assessment dataset using good practice LCA activity-based methodology.
With this update, Klarna's CO₂e tracker gives consumers across all of Klarna's markets access to emissions data in real-time for over 94 million products across Fashion, Home & Garden and Jewelry & Accessories. Klarna's shoppers are provided with an enhanced breakdown of a product's CO₂ emissions, touching on every step of the product's lifecycle– from raw material extraction and processing to product assembly and delivery to the end user, encouraging shoppers to make more conscious purchasing decisions. Klarna's Co₂e tracker also offers useful educational tips on prolonging the life of products and how to reduce CO₂e emissions when using products, such as following care labels and repairing worn items.
These new features follow several other initiatives led by Klarna to provide consumers with the tools and insights they need to shop more consciously. Klarna recently unveiled a resell feature enabling shoppers to resell their previous purchases directly through the Klarna App, and partnered with Reddit to unveil the 2023 Buy It For Life List revealing the most popular durable items according to 1.4 million subscribers of the online community r/BuyItForLife. Klarna also introduced conscious badges in the Klarna App, highlighting electronics brands environmental efforts, as well as "Shop Circular'' Collections spotlighting brands with circular services to reduce waste and maximize the use of products.