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Swedish fintech BNPL Klarna became the first fintech to get involved in two leading climate change initiatives.

Klarna has already committed to implementing decarbonization strategies consistent with the Paris Agreement to achieve net zero greenhouse gas emissions in all areas by 2040.

To achieve this ambition, the global retail bank, payment solutions provider and purchasing department have announced that they are joining Climate commitment and the Race to Zero campaign.

Moving is the next step at Klarna company commitment, taken earlier this year to reduce its total emissions by 50% by 2030 and to use an internal carbon tax that is funneled into efficient climate projects.

A fervent defender of climate initiatives

Digital payments fintech, which was recently valued at over US $ 45 billion, is the second largest fintech company in the world. It also has over 90 million active users worldwide, performs two million transactions per day and works with over 250,000 global business partners,

Klarna’s strong advocacy for climate protection was inspired by the WWF and BCG master plan for business climate action. This prompts companies to track, publish, reduce and price their emissions, and then contribute financially to high-impact climate projects to permanently eliminate carbon.

The annual amount is established through an internal carbon tax set at USD 100 / tonne for all scope 1, 2 and travel emissions (the remaining scope 3 emissions are set at $ 10 / tonne).

Klarna and The Climate Pledge

Due to its strong positioning, Klarna’s commitment to The Climate Pledge’s goals should send a strong message to other major financial agents. The program was co-founded by Amazon and Global Optimism in 2019 to encourage companies to achieve net zero carbon emissions by 2040 – 10 years before the Paris Agreement.

The second initiative – Race to Zero – is a UN-backed global campaign that aims to accelerate the movement towards a low-carbon economy, halving all global emissions by 2030. As part of the climate commitment, Klarna is committed to:

  • Regularly measure and report greenhouse gas emissions.
  • Implement decarbonization strategies in accordance with the Paris Agreement through trade changes, in particular; improving efficiency, renewables, reducing materials and other carbon elimination strategies.
  • Neutralize all remaining emissions with additional, quantifiable, real, permanent and socially beneficial offsets to achieve zero net annual carbon emissions.

Climate change targets for Klarna

Latest steps follow Klarna’s broader sustainability initiative, according to statement released by Klarna GiveOne which was announced on Earth Day earlier this year.

As part of this campaign, data shows that Klarna has allocated 1% of its last funding rounds to projects that support the planet. The donations will support companies working on the most critical issues of climate change, including biodiversity loss.

Speaking about the green finance trend and zero emissions strategy, David Sandström, Klarna Marketing Director, explained: “As a global company, we have a great responsibility to tackle some of the most pressing healthcare challenges. of our planet.

“We are therefore joining forces with those of other major players to avoid long-term damage to our economies and our lifestyles.”

He added: “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. “

Main image credit: Klarna app from Klarna

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