Klarna joins The Climate Pledge and Race to Zero campaign in attempt to boost sustainability

Klarna becomes first FinTech to join The Climate Pledge and Race to Zero campaign and commits to reaching zero carbon emissions by 2040.

The buy now, pay later firm (BNPL) giant will implement decarbonisation strategies in line with the Paris Agreement in order to reach net-zero greenhouse gas emissions in all scopes by 2040 at the latest.

Klarna previously announced it was to reduce its total emissions by 50% by 2030 earlier this year while also using internal carbon tax that is channelled into effective climate projects.

Klarna’s climate strategy is inspired by the WWF and BCG blueprint for corporate climate action, under which companies measure, display, reduce and price their emissions, and then financially contribute to high-impact climate projects to permanently remove carbon.

Klarna CMO David Sandström said, “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.”

The Climate Pledge agreement was co-founded by Amazon and Global Optimism to reach net zero carbon emissions by 2040, 10 years ahead of the Paris Agreement.

Race to Zero is backed by the United Nations and aims to build momentum around the shift to a decarbonised economy in order to half global emissions by 2030.

Klarna has committed to measuring and reporting greenhouse gas emissions on a regular basis, implementing decarbonisation strategies in line with the Paris Agreement and neutralising any remaining emissions with quantifiable offsets to achieve its goal.

The FinTech company recently introduced its “CO2 insights” tool in April that allows its 90 million global users to track the carbon footprint of all their purchases in-app.

The ‘buy now, pay later’ giant has partnered with Doconomy to launch the new feature, which will provide shoppers with seamless, unbiased insights into the climate impact of every purchase.

These steps are part of Klarna´s larger sustainability initiative GiveOne that was announced on Earth Day this year. As part of the initiative, 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 loss of biodiversity.

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