Klarna

Arming Klarna Customers with Live Product Carbon Data

Company
Klarna
Industry
Leading buy now pay later platform
Markets
45
Reach
150+ million global active users
“At Klarna, we want to enable consumers to make more informed and conscious choices. We work with leading sustainability tech experts like Vaayu to enable consumers to find sustainability-related information on the products they purchase. By continuously calculating product carbon footprints across categories, Klarna and Vaayu bring to life a large carbon footprint awareness among consumers. 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. We are proud of our partnership with Vaayu and are looking forward to more initiatives to drive sustainable development together.”
Salah Said, Head of Sustainability at Klarna

Klarna’s CO₂e Tracker for 150 Million Consumers

There are no signs that the push for conscious consumerism is at risk of slowing down. According to Klarna, 58% of global shoppers are also looking for ways to track their own carbon footprint while shopping including by using a personal carbon footprint tracker, and that’s why Klarna came to us. 

In 2022, Vaayu partnered with Klarna to provide its 150 million shoppers with an enhanced breakdown of their carbon footprint across over 70 million fashion items as part of its carbon emissions tracker. Using Vaayu’s technology, the Klarna CO₂ Tracker automatically calculates emissions for purchases on a product level in real-time by pulling product-level emissions data via Vaayu’s API to create a unique product carbon footprint. 

Since the launch, the carbon emissions tracker has expanded to now offer Klarna shoppers emissions data across 150 million products, including purchases from the Home & Garden, Jewelry & Accessories and Electronics categories. The personal carbon footprint tracker gives shoppers tangible insights into the environmental impact of their completed purchases, using each product carbon footprint within the CO₂ tracker to help them make more thoughtful and sustainable shopping decisions.

CHALLENGE

Accurate Product Carbon Footprinting at Scale

A single product carbon footprint requires much data and life cycle assessment (LCA) expertise. Product carbon footprint data can be hard to come by due to the complexity of the supply and value chain. Existing data is also typically unreliable, with the vague spend-based models dominating the market not accurately reflecting actual scenarios — and therefore not accurately reflecting the actual product carbon footprint at hand.

METHODOLOGY

Calculating and Evaluating Data through LCA Modelling on 150 Million Klarna Products

The footprints were computed using Vaayu’s proprietary technology and an ever-expanding database of over 600,000 data points. Vaayu modeled each product’s climate change impact from Cradle-to-Grave using a product life cycle assessment. Complete product carbon footprint modeling included the emissions released from stages in the supply chain and product life cycle, such as raw material extraction, material manufacturing, product manufacturing and assembly, transportation and distribution, product use and end-of-life.

Using mostly activity-based data for the product life cycle assessment and carbon calculations, the remaining data points were enriched with the best-suited secondary data to give a complete picture of the emissions released. Vaayu’s activity-based product carbon footprint LCA approach is in line with the method preferred by the Greenhouse Gas (GHG) Protocol. The methodology ensured quality data and emissions calculations that reflect actual scenarios.

How to calculate the carbon footprint of a product — Vaayu’s methodology for Klarna:

Overview of Vaayu’s calculations for Klarna’s product carbon footprints
Overview of Vaayu’s calculations for Klarna’s product carbon footprints

Above is a simplified overview of Vaayu’s product life cycle assessment methodology which shows how to calculate the carbon footprint of a product. The level of data was necessary to power the Klarna CO₂ Tracker.

Solution

The Largest Cradle-to-Grave LCA Dataset, Powered by AI and Machine Learning

Vaayu’s team of in-house data scientists and LCA specialists worked to create a database that allows us to automate the product carbon footprint of over 150 million products across Klarna’s Fashion, Home & Garden, Jewelry & Accessories and Electronics categories, creating the largest cradle-to-grave life cycle assessment dataset using good practice LCA activity-based methodology.

150
million products

Product carbon footprinting for over 150 million products across Fashion, Home & Garden, Jewelry & Accessories, Electronics and more

Largest
cradle-to-grave LCA

The largest consistently derived cradle-to-grave life cycle assessment (LCA) product carbon footprint database that continues to be automatically added to and improved upon

240,000
shoppers

The tracker reaches 150 million global consumers, and 240,000 shoppers are actively reviewing product carbon data every month by visiting the tracker

Together, Vaayu and Klarna are providing shoppers with science-based cradle-to-grave life cycle assessment of the product carbon footprint for even more everyday products via the Klarna CO₂ Tracker. Using the most comprehensive product carbon footprint database, the CO₂ tracker enables access to tangible, accurate data, revolutionizing the way shoppers engage with their purchasing decisions and inspiring them to take climate action.

“Retailers and consumers need to take action to address the threat our planet faces. We’re proud to be working with a pioneering company like Klarna to provide shoppers with science-based emissions data for even more everyday products, revolutionizing the way they engage with their purchasing decisions. And by using Vaayu’s world-first technology and in-house team of experts, we’ve built an expansive proprietary automated LCA database for new retail verticals in addition to the millions of products we are already calculating for Klarna.”
Namrata Sandhu, Co-Founder and CEO of Vaayu

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