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Klarna adds granular carbon foot printing to fashion items

Wednesday 7 December 2022 14:39 CET | News

Sweden-based fintech Klarna has partnered with climate tech startup Vaayu to provide granular carbon foot printing for more than 50 million fashion items.

 

This will give customers more accurate insights on their environmental impact than ever before and enable them to make more conscious purchasing decisions.

Sweden-based fintech Klarna has partnered with climate tech startup Vaayu to provide granular carbon foot printing for more than 50 million fashion items.

Tracking CO2 pollution

Using Vaayu’s technology, Klarna’s upgraded CO2e tracker automatically calculates carbon emissions for fashion purchases on a product-level in real-time, as featured in Klarna’s recent ‘Spotlight’ event. The cradle-to-grave life cycle assessment (LCA) approach provides users with an enhanced breakdown of a product’s CO₂ emissions along different stages of its lifecycle, allowing Klarna’s 150 million consumers to develop a deeper understanding and sensitivity for their shopping choices.

These stages include everything from raw material extraction and processing to product assembly and delivery to the end user.

Increased consumer preference for sustainability

The partnership follows recent shopping data released from Klarna that shows sustainability has become a key factor in purchasing decisions, especially in the fashion category. Globally, 58% of shoppers want to receive information on the environmental impact of the product they buy, such as whether items are made from sustainable materials and their CO₂ footprint. While 22% consider the environmental impact of delivery options when shopping online and 34% of consumers say it’s important that brands and retailers act in an environmentally sustainable way.

Vaayu’s company officials stated that the world is currently at an inflection point. Climate change is one of the biggest threat our planet faces and we need to address it. But to make an impact, both retailers and consumers alike need to have access to accurate carbon data to make better decisions. Vaayu’s technology provides robust carbon emissions insights for Klarna and empowers its customers with meaningful information on the carbon impact of their purchases.

Klarna’s representatives said that the data couldn’t be clearer – more and more shoppers demand transparency into the environmental impact of their purchases. But for consumers to make considered choices, they require unbiased and reliable information that they can understand. By feeding Vaayu’s rich and granular data into our CO2e tracker, they give shoppers even deeper and clearer insights into the CO2e footprint of their purchases, enabling them to vote with their wallets and enact real change.

What does Vaayu do?

Vaayu is an automated carbon software facilitating retailers to calculate and cut emissions in real-time. It does this by leveraging proprietary AI and machine learning technology to draw insights from production, sales, and logistics to provide retailers with granular insights into their entire supply chain using its proprietary database of more than 600,000 data points. Vaayu is enabling retailers to lower emissions and collectively reduce 1 gigaton of carbon emissions by 2030, according to the company.

For more information about Klarna, please check out the company profile in The Paypers Company Database.


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Keywords: green finance, ecommerce, Klarna, artificial intelligence, machine learning
Categories: Payments & Commerce
Companies: Klarna, Vaayu
Countries: World
This article is part of category

Payments & Commerce

Klarna

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Vaayu

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