Klarna, the AI-powered global payments network and shopping assistant, has announced the launch of several new products and services designed to promote the circular economy and encourage smart shopping. Klarna is used by 150 million consumers and 27 million app users worldwide.
According to a study by NielsonIQ, consumers are increasingly placing more value on ecologically and ethically sustainable practices when shopping; 78 percent of them said that a sustainable lifestyle was important to them. In addition, almost half (46 percent) think it is important to look for sustainable clothing, according to the Klarna 2023 Shopping Pulse.
However, making a more sustainable choice is not always easy. GreenPrint’s Business of Sustainability Index found that nearly 80 percent of consumers said they had difficulty finding environmentally friendly companies that aligned with their interests and values.
“Klarna is committed to transforming shopping into a circular, sustainable experience by facilitating informed decisions and providing our 150 million consumers with tools to discover more environmentally friendly products,” says Salah Said, Head of Sustainability at Klarna, in a statement.
Conscious shopping dashboard
Klarna has introduced four new features designed to close this information gap and help consumers shop more consciously. One of these is a new dashboard that gives consumers access to Klarna’s sustainability-focused products, features and services.
These include the Shop Circular brands, which highlight labels offering circular services to reduce waste and maximize the use of products, as well as the Co2e Footprint Tracker. The dashboard also provides editorial and informational content to improve consumers’ understanding of sustainable practices. The dashboard is currently only available online in the US. However, Klarna plans to introduce it in the Klarna app and in other markets in the coming months.
New search filters and comparison tool for sustainability
There is also a new intelligent search and comparison tool online and in the Klarna app that allows consumers to compare prices across thousands of retailers. You can also search product search by features such as color, size, features, customer reviews, in-store availability, shipping options, and the new certification filters. They display products with third-party sustainability certifications, including Global Organic Textile Standard (GOTS), People for Ethical Treatment of Animals (PETA), and Cradle to Cradle.
Klarna has also integrated a special filter into the search and comparison tool to highlight conscious brands that have received a sustainability rating of 4 (good) or 5 (excellent) according to Klarna’s partner Good On You.
“Good On You uses more than 500 data points to evaluate the most important social and environmental issues facing the fashion industry today to assess a brand’s impact on people, the planet and animals – and rates each brand on a five-point scale , which ranges from “avoid” to “excellent,” explains Klarna.
Both filters are now available in the US, UK, Sweden, Norway and Denmark.
Improved CO2e tracker
More than half (57 percent) of consumers are actively looking for ways to track their carbon footprint when shopping online, according to Klarna’s Shopping Pulse 2023. Therefore, the payment network has updated its Co2e tracker in the Klarna app, which is now provides advanced insights into CO₂ emissions from past purchases, analyzed at the product level.
“This more detailed analysis covers every phase of a product’s life cycle, from raw material extraction through processing and assembly to delivery to the end consumer,” explains Klarna.
The updated tracker also provides insights into the environmental impact of products in the health & beauty and electronics categories, with data from Berlin-based climate-tech start-up Vaayu and the consumer carbon footprint for an additional million products was added to these two categories.
“Klarna’s CO₂e tracker now offers consumers in all Klarna stores access to real-time emissions data for over 122 million products in the fashion, home & garden, jewelry & accessories, health & beauty and electronics categories,” Klarna summarizes .
The sustainability and care tips that the tracker offers are also practical: consumers can find information on extending product lifespan and minimizing CO₂e emissions during use, as well as practical tips on adhering to care instructions and repairing worn items.
“With the launch of these new products, including a new conscious shopping dashboard, additional sustainability filters in our search and compare tool, and an improved CO2e tracker with data for over 122 million products across five product categories, we aim to empower individuals to make decisions to make decisions that are in line with their values and take sustainable aspects into account when purchasing,” concludes Said.