Sweden-based Buy Now, Pay Later provider Klarna has unveiled new climate-focused tools that aim to help users make more conscious purchasing decisions. Specifically, Klarna expanded CO₂e emissions tracking insights within the Home and Gardens and Jewellery and Accessories categories.

The updated emissions tracking system provides information about the number of emissions set free for nearly 93 million products, thus giving users more insight into the environmental impact of their purchases. In partnership with carbon tracking platform Vaayu, Klarna’s tracker provides granular carbon footprinting for an additional 1.4 million products across these two additional categories. Apart from bringing updates to its CO₂e tracker, Klarna also introduced a top-up donations feature, which allows users to add a USD 1 donation to select purchases, supporting planet health initiatives focusing on climate, people, and biodiversity.

According to statistics released by definefinancial.com, almost 60% of all American households reportedly participate in some kind of charitable giving. However, data from climateworks.org reveals that less than 2% of global philanthropic giving goes towards climate change mitigation efforts. With Klarna’s new feature, customers can add a USD 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.

Charitable fundraising platform Milkywire will manage the donations and will ensure that they go to the WRLD Foundation to support organisations working to implement UN Sustainable Development goals. The top-up donations feature is a part of Klarna's Give One initiative for planet health, and it is available in the US with plans to arrive in other parts of the world in the future. Klarna upgraded its app with a donation feature in 2022, which enables users to make donations to charity causes instantly or through scheduled regular donations.

Other climate-focused developments from Klarna Klarna committed millions to several climate initiatives in June 2023 as part of its ongoing efforts to solve the climate crisis. This represented the third round of contributions from Klarna’s internal carbon tax, which will make its way to various companies and organisations that are working on climate-based initiatives. Klarna’s internal carbon tax added up to USD 5.07 million since 2021, and it was created to provide as much long-term climate impact as possible.

Apart from sponsoring climate-focused projects, Klarna is making its own progress in reducing carbon emissions. According to Klarna, its absolute carbon footprint decreased by 3.75% in 2022 compared to 2021. The company also reached its goal of ensuring that all of its office locations reach 100% renewable energy usage at the end of 2022.

By 2030, Klarna wants to reduce 50% of its carbon-intensity-based emissions in line with the Paris Agreement. Furthermore, the company wants to achieve net-zero operability by 2040. For more information about Klarna, please check out their detailed profile in our dedicated, industry-specific Company Database.

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