Following this partnership, Klarna’s customer base will be provided with the necessary information to make sustainable choices when shopping. As Klarna processes over two million transactions on a daily basis, the initiative is thought to have a significant collective effect, with Clarity AI officials stating in the press release that it will highlight the scale and potential that the company can power as it makes its sustainability metrics consumer accessible.
As per information provided in the company’s announcement, sustainability is becoming an increasingly prevalent concern for shoppers. Despite this, a wide majority of the market’s focus has been towards the fashion industry.
Looking to shed light on a new category, Klarna is set on featuring in an initial state, conscious ways of shopping powered by Clarity AI’s capabilities to those shopping for electronics across thousands of brands in 22 countries all over the globe. When it comes to global emissions, the technology industry as a whole is expected to produce approximately 14% of the world’s total emissions by 2040, a 3% increase from the current state, as reported by Capgemini. Furthermore, apart from the energy demand from the usage of electronic devices, their production and disposal also have a significant environmental impact, with the production of these devices being equal to or exceeding the carbon cost of using them.
Klarna’s Q3 2022 Shopping Pulse report illustrates that 62% of US-based shoppers find sustainability important when shopping for electronics, such as ensuring that the product is produced out of increasingly sustainable materials or that the brand is actively taking steps towards climate change. Additionally, the study showcased that more than two thirds of Americans believe it important that the brands they buy from actively combat climate change and make use of recycled or sustainable materials for their products, with 24% of consumers stating that they actively seek out ethical and sustainable brands.
Following a consumer’s purchase within the electronics category, Clarity AI-powered information on the brand’s environmental efforts is set to be displayed in the form of brand badges, with the brand-level sustainability data being brought together in one simple overview. This information will offer consumers a way to have brands that proactively address climate change identified in a simple and reliable manner, thus being enabled to shop more consciously.
As per information provided in the press release, the brand badges help indicate the following:
Whether a company’s greenhouse gas emissions are lower than those of similar businesses;
Whether they have an increased proportion of its energy derived from renewable sources;
Whether they have climate change policies in place and a roadmap to impact climate change in a positive manner;
And whether a company is transparent when reporting its climate-related information.
Following the 2021 Klarna introduction of its CO2 emissions tracker, the company now aims to further awareness by providing to over 150 million shoppers reliable and transparent metrics for electronics brands, enabling them to have not only an understanding of their purchases’ impact, but to also make more environmentally conscious decisions in the time to come.
Through this partnership, the companies aim to empower consumers to ‘vote with their wallet’ for an increasingly sustainable world, with Klarna representative stating that Clarity AI’s clear and independent data, as well as its technical integration offering, makes the company a natural choice towards achieving this goal.
A sustainability technology platform, Clarity AI leverages machine learning and big data to provide environmental and social insights to investors, organisations, and consumers. The platform analyses over 50,000 companies, 320,000 funds, 198 countries and 188 local governments, delivering data and analytics for investing, consumer research, corporate research, and reporting for sustainability regulations worldwide.
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