Klarna To Offer Carbon Footprint Monitoring
Popular payment firm Klarna has added a carbon footprint monitoring system to its shopping app. With over 90 million users, those with the app can now track their carbon footprint over the month. Thus, the change will allow shoppers to see the impact of their spending on the CO2 levels of the globe. Partnering with Doconomy, the alterations will reflect the 1% pledge announced by the Swedish company.
Klarna To Show Shoppers Their Carbon Emission
The company, who offers the ability to pay for goods in instalments – without creating independent lines of credit – will now display an estimated carbon emission for each purchase. Chief Executive Sebastian Siemiatkowski compared the move to nutritional information shown on food packaging, stating “With fat, sugar and salt levels labelled on the food we buy, why shouldn’t our CO2 emissions be just as visible?” However, the app will only show these details after a purchase has been made.
Klarna is now a hugely popular payment method, with over a quarter of a million clients ranging from small businesses to multi-million conglomerates. With 90 million users to date, the app has proven to also be increasingly popular. As such, there is said to only be 5 major high street stores offering their own credit cards. At the same time, Klarna has recorded incredible profits – and recently announced their 1% pledge.
Will Changing The Settings Also Change Things For Shoppers?
The pledge, which will help bring $10M to projects tackling climate change, has been welcomed by environmentalists. In particular, it will work to combat the loss of biodiversity, alongside a target of 50% emissions reduction, before 2030. Naturally, the response to the move has generally been positive. Though the company has told the press that they’re also planning to display the carbon footprint before shoppers make a purchase. Hopefully, this will allow users of the app to become more aware of how their spending affects carbon emissions.
Shoppers will not have to consider any additional charges, as the changes are completely free to use. However, users who want to help back the pledge, are also welcome to use the donation feature. Here, shoppers can donate via an integrated feature from Milkywire – a company that donates directly to grassroots organisations.
These small changes could potentially make major differences in how the everyday shopper sees their spending. Rather than just associating the cost of money, it could allow people to see and understand the environmental cost, too. By partnering with Doconomy, the small changes can educate and inspire the individual.
CEO of Doconomy, Mathias Wikström, has said that ‘The financial sector has developed tremendous efficiencies to create, aggregate and protect wealth. Now that same force can address the alarming planetary health. Adding a unique data stream to the customer is a brilliant step to educate the many.’