BNPL payment provider Klarna has partnered with climate tech start up Vaayu to provide shoppers with granular carbon footprinting for more than 50 million fashion items, giving them more accurate insights on their environmental impact than ever before and empowering them to make more conscious purchasing decisions.
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.
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.
Namrata Sandhu CEO & Co-founder Vaayu, comments: “The world is currently at an inflection point. Climate change is the biggest threat our planet faces and we need to address it with the urgent action it requires. But to make an impact, both retailers and consumers alike need to have access to accurate carbon data to make better decisions. Vaayu’s world-first technology provides robust carbon emissions insights for Klarna and empowers its customers with meaningful information on the carbon impact of their purchases.”
Salah Said, Head of Sustainability at Klarna, adds: “The data couldn’t be clearer – more and more shoppers demand transparency into the environmental impact of their purchases. But in order 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, we give shoppers even deeper and clearer insights into the CO2e footprint of their purchases, empowering them to vote with their wallets and enact real change. ”
Vaayu is the world’s first automated carbon software empowering 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 empowering retailers to lower emissions and collectively reduce 1 gigaton of carbon emissions by 2030.