Klarna, the AI-powered global payments network and shopping assistant, has announced the launch of several new products and services aimed at promoting circularity and encouraging smart shopping. Klarna is used by 150 million consumers and 27 million app users worldwide.
According to a study by NielsonIQ, consumers are increasingly prioritising environmentally and ethically sustainable practices throughout their shopping journey, with 78 percent of consumers claiming that a sustainable lifestyle is important to them. In addition, nearly half (46 percent) consider it important to look for sustainable clothing items according to the Klarna 2023 Shopping Pulse.
However, finding more sustainable choices is not always easy and as the Business of Sustainability Index by GreenPrint found out, almost 80 percent of consumers said they are struggling to identify environmentally friendly companies that align with their interests and values.
“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,” says Salah Said, head of sustainability, at Klarna in a statement.
Conscious shopping dashboard
Klarna has introduced four new features that are meant to close this information gap and empower consumers. One of those is a new conscious shopping dashboard, which offers consumers access to sustainability-oriented products, features, and services provided by Klarna.
These include “Shop Circular” brands that spotlight brands with circular services to reduce waste and maximise the use of products and the Co2e footprint tracker. The dashboard also offers editorial and educational content designed to enhance consumers' understanding of sustainable practices. While now available online in the US only, Klarna has plans to launch the dashboard in the Klarna App and across additional markets in the coming months.
New sustainability search filters and compare tool
There is also a new intelligent search and compare tool online and in the Klarna App that lets consumers compare prices across thousands of retailers. They can also filter product searches by features including colour, size, features, customer ratings, store availability shipping options and the new sustainability certification filters. They will bring up products by third-party sustainability certifications including Global Organic Textile Standard (GOTS), People for Ethical Treatment of Animals (PETA) and Cradle to Cradle.
In addition, Klarna added a dedicated filter in the search and compare tool to highlight conscious brands that have earned sustainability ratings of 4 (good) or 5 (great) according to Klarna's partner, Good On You. “Evaluating 500-plus data points, Good On You assesses the most critical social and environmental issues facing the fashion industry today to evaluate a brand’s impact on people, the planet and animals—rating each brand on a five-point scale ranging from “we avoid” to “great,” explains Klarna.
Both filters are now available in the US, UK, Sweden, Norway and Denmark.
Enhanced CO2e tracker
Over half (57 percent) of shoppers actively seek ways to track their carbon footprint while shopping online according to Klarna’s 2023 Shopping Pulse. Thus, the payments network has updated to its Co2e tracker in the Klarna App, which now provides more advanced insights into the CO₂ emissions tied to past purchases, which are analysed at product-level.
“This more granular analysis encompasses every stage of a product's lifecycle, starting from raw material extraction, progressing through processing and assembly, and culminating in final delivery to the end user,” states Klarna.
The updated tracker also includes insights into the environmental impact of products within the health & beauty and electronics categories, with data powered by Vaayu, adding shoppers carbon footprinting for an additional one million products across these two categories.
“Klarna's CO₂e tracker now gives consumers across all of Klarna’s markets access to emissions data in real-time for over 122 million products across fashion, home & garden, jewellery & accessories, health & beauty and electronics categories,” sums up Klarna.
Handy are also the sustainability and care tips that the tracker provides: Consumers will find information on extending product lifespans and minimising CO₂e emissions during usage, with practical insights such as adhering to care labels and repairing well-worn items.
“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,” adds Said.