Klarna implements decarbonization strategies in line with Paris Agreement

By Joy Dumasia

Klarna, a global retail bank, payments, and shopping service, announced that the company is joining The Climate Pledge and the Race to Zero campaign. Klarna implements decarbonization strategies in line with the Paris Agreement to reach net-zero greenhouse gas emissions in all scopes by 2040. 

As part of the Climate Pledge, Klarna commits itself to:            

• Measure and report greenhouse gas emissions regularly.         
• Implement decarbonization strategies in line with the Paris Agreement through fundamental business changes and innovations, including efficiency improvements, renewable energy, materials reductions, and other carbon emission elimination strategies.          
• Neutralize any remaining emissions with additional, quantifiable, tangible, permanent, and socially beneficial offsets to achieve net-zero annual carbon emissions. 

Klarna’s climate strategy is inspired by the WWF and BCG blueprint for corporate climate action. Companies measure, display, reduce and price their emissions and financially contribute to high-impact climate projects to permanently remove carbon. The annual sum is established through an internal carbon tax set at $100/tonne for all scope 1, 2 and travel emissions (remaining scope three emissions set at $10/tonne). 

Klarna has allocated 1% of its latest funding rounds to initiatives supporting the planet; the donations will focus on backing initiatives tackling the most pressing challenges around climate change and biodiversity loss.

David Sandström, CMO of Klarna, says: “We as a global company have a great responsibility to tackle some of the most pressing challenges for our planet’s health. We, therefore, join forces with other major players to prevent long-term damage to our economies and ways of life. Managing Klarna’s environmental impact is a top priority for Klarna, and we aim to further promote environmental awareness and knowledge among our employees, customers and partners.”

Recently, IBS Intelligence reported that Klarna had selected business finance platform Liberis for a strategic collaboration to provide additional financial services to Klarna merchants. Through this partnership, Liberis will initially provide revenue-based financing to Klarna merchants. Klarna can also offer its merchant partners flexible financing solutions, pre-approved with fair and equitable payment terms based on their revenues and actual transactions.