Klarna's New Tools for Sustainable Shopping

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by KnowESG
KnowESG_Klarna's New Tools for Sustainable Shopping
Image courtesy of Klarna

Klarna, the globally recognised AI-driven payments network and shopping assistant, made an exciting announcement as they unveiled an array of innovative products and services designed to champion sustainability and inspire conscious consumer choices.

In this evolution beyond their core payment offerings, Klarna aspires to serve as the ultimate starting point for 150 million consumers and 27 million app users worldwide, whether they possess a clear shopping objective or seek inspiration, all while placing a strong emphasis on environmental responsibility.

Salah Said, the Head of Sustainability at Klarna, shared the company's commitment to reshaping the shopping experience into a more circular and sustainable journey.

"Klarna is dedicated to transforming shopping into a more circular, sustainable experience by facilitating more informed decisions and providing our 150 million consumers with tools to discover more environmentally responsible products," said Said. "With the launch of these new products, including a new conscious shopping dashboard, added sustainability filters in our search and compare tool, and an enhanced CO2e tracker with data for over 122 million products across five product categories, we aim to equip individuals to make choices that align with their values and consider sustainable aspects when shopping."

Introducing the all-in-one conscious shopping dashboard

In today's climate-conscious world, consumers are increasingly prioritising eco-friendly and ethical practices in their shopping endeavours. A remarkable 78% of consumers express the importance of a sustainable lifestyle, with nearly half (46%) actively seeking sustainable clothing items.

However, despite this growing awareness, many individuals find it daunting to initiate their sustainable shopping journey due to a lack of information and resources. Nearly 8 out of 10 consumers admit to struggling to identify environmentally-friendly companies that resonate with their values.

To bridge this informational gap and empower

For conscientious consumers, Klarna proudly unveils its new conscious shopping dashboard, currently accessible online in the US, with plans for a broader rollout across the Klarna App and additional markets in the near future.

This innovative dashboard serves as a centralised hub, granting consumers access to a comprehensive array of sustainability-focused products, features, and services offered by Klarna.

From Klarna's curated brand collections, spotlighting "Shop Circular" brands that promote waste reduction and product longevity, to their popular CO2e footprint tracker, this dashboard simplifies the discovery and interaction with all of Klarna's sustainability offerings, conveniently located in one place.

Beyond its role as a gateway to Klarna's extensive conscious shopping offerings, the dashboard also functions as a repository for editorial and educational content designed to deepen consumers' understanding of sustainable practices.

Empowering sustainable product searches

Klarna's dedication to empowering consumers to shop more consciously is further underscored by enhancements to its intelligent search and compare tool, available online and in the Klarna App.

This tool allows consumers to compare prices from thousands of retailers and now includes new sustainability certification filters. These filters enable conscientious shoppers to identify products bearing third-party sustainability certifications such as Global Organic Textile Standard (GOTS), People for Ethical Treatment of Animals (PETA), and Cradle to Cradle.

Furthermore, a dedicated filter within the search and compare tool highlights conscious brands that have received sustainability ratings of 4 (Good) or 5 (Great) from Klarna's partner, Good On You.

Good On You evaluates brands based on more than 500 data points, assessing their impact on people, the planet, and animals, thus providing consumers with valuable insights into a brand's ethical and environmental practices. Both of these filters are now accessible to consumers in the US, UK, SE, NO, and DK.

Enhancing the CO2e tracker in the Klarna App

In response to the growing demand for tools to monitor carbon footprints while shopping online, Klarna has introduced an enhanced version of its CO2e tracker in the Klarna App. This updated tracker offers consumers advanced insights into the CO₂ emissions associated with their past purchases, providing meticulous analysis at the product level.

This granular analysis covers every stage of a product's lifecycle, from raw material extraction to processing, assembly, and final delivery to the end user. It offers consumers a comprehensive view of the environmental impact of their purchases.

Additionally, as of September, Klarna's upgraded CO₂e Tracker now includes insights into the environmental impact of Health & Beauty and Electronics products powered by Vaayu. This update equips Klarna shoppers with detailed carbon footprint data for an additional 1 million products in these two categories.

Klarna's CO₂e tracker now provides consumers across all markets with real-time emissions data for over 122 million products spanning Fashion, Home & Garden, Jewelry & Accessories, Health & Beauty, and Electronics categories.

The tracker also provides sustainability and care tips, educating consumers on ways to extend product lifespans and minimise CO₂e emissions during product usage. This includes practical advice such as following care labels and repairing well-loved items.

Additionally, consumers can seamlessly transition from awareness to action by accessing a gateway to Klarna's donations feature, where they can contribute to Klarna's Give One planet health initiative and the Climate Transformation Fund.

These new features build upon several other initiatives led by Klarna to provide consumers with the tools and insights needed to shop more consciously.

Earlier this year, Klarna introduced a Top Up donations feature, allowing shoppers to make a $1 donation to support planet health initiatives focusing on climate, people, and biodiversity.

The company also unveiled a resell feature enabling shoppers to sell their previous purchases directly through the Klarna App and collaborated 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 is actively participating in a panel discussion about technology's impact on circularity and the future of conscious shopping at The Nest Climate Campus on September 19, 2023, alongside industry leaders Vaayu, Clarity AI, and Vestiaire Collective. For more information, please visit https://www.thenestclimatecampus.com/2023-main-stage-agenda.

For more company-related news

To view and compare company ESG Ratings and Sustainability Reports, visit our Company ESG Profiles page.

Source: Klarna


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