Klarna Releases Donations and Other Tools for Climate Conscious Consumers
Payments network Klarna has debuted new products geared toward environmentally-conscious shoppers.
The company launched its top-up donations feature and an upgraded carbon footprint tracking tool, according to a Wednesday (June 14) press release, at a time when retailers are debating the effectiveness and cost of their sustainability efforts.
Klarna’s new donation feature lets consumers add a $1 donation to purchases made using its buy now, pay later (BNPL) tool, the release stated.
“Powered by the charitable fundraising platform Milkywire, donations will be captured as part of the down payment (or first installment) and will go to the WRLD Foundation to support organizations working to implement UN Sustainable Development goals, with a focus on climate, people and biodiversity,” Klarna said in the release.
Meanwhile, citing what it said in the release is increased consciousness among consumers of their carbon footprints, the company has upgraded its CO₂e tracker.
The tool now provides insights into the impact of products within the home and garden and jewelry/accessories categories — accounting for 1.4 million additional items — with data powered by carbon tracking platform Vaayu, per the release.
Sustainability has become a hot topic across a range of industries — the retail sector included — as companies face increased pressure to shrink their carbon footprints.
Some retailers have recognized that pressure and acted accordingly. For example, there’s H&M’s Close the Loop initiative, which lets customers bring their unwanted garments to any in-store recycling bin and receive a coupon toward their next purchase.
In the 10 years the program has existed, the fast-fashion chain said it has taken in more than 155,000 tons of textiles.
Consumers — especially younger ones — are cognizant of the environmental and social impact of their purchasing decisions and more likely to support and patronize brands that align with their values and demonstrate a commitment to sustainability.
“By adopting sustainable practices, retailers can tap into this growing consumer demand and position themselves as environmentally responsible,” PYMNTS wrote earlier this month. “This can lead to increased customer loyalty, positive brand image, and even attract new customers who prioritize sustainability.”
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