Watershed > Case Studies > Klarna's Sustainable Shopping: A Case Study on Carbon-Neutral Operations

Klarna's Sustainable Shopping: A Case Study on Carbon-Neutral Operations

Technology Category

Platform as a Service (PaaS) - Application Development Platforms
Sensors - Utility Meters

Applicable Industries

Consumer Goods
Retail

Applicable Functions

Logistics & Transportation
Sales & Marketing

Use Cases

Continuous Emission Monitoring Systems
Supply Chain Visibility

About The Customer

Klarna is a leading provider of Buy Now, Pay Later shopping experiences, serving 147 million consumers and 400,000 merchants. The company's mission is to bring consumers shopping flexibility, but it also aims to support a healthy planet. Klarna is committed to making shopping a less carbon-intensive activity for all. The company has a significant carbon footprint due to its large customer base and the nature of its operations. Klarna is committed to reducing its carbon emissions and making its operations more sustainable.

The Challenge

Klarna, a leading provider of Buy Now, Pay Later shopping experiences, was faced with the challenge of making their operations more sustainable. With 147 million consumers and 400,000 merchants using their platform, the company had a significant carbon footprint. The challenge was to understand the extent of their carbon emissions and find ways to reduce them. The company needed to measure the carbon emissions from their operations and supply chain, and then take steps to reduce these emissions. They also wanted to align their everyday business decisions with the goal of reducing emissions.

The Solution

Klarna started by measuring their carbon emissions to understand the extent of their carbon footprint. They then took steps to reduce their emissions, such as converting two-thirds of their offices to run on clean energy and tracking the intensity of their emissions relative to business metrics like revenue. The company also introduced an internal carbon tax, setting aside $100 for every tonne of emissions from their facilities, operations, purchased electricity, and travel, and $10 per tonne for activities happening in their supply chain. This tax was used to fund high-impact climate work. Klarna also used Watershed to gather emissions data on their largest vendors and partners, helping them understand where they could make the most impact. In addition, Klarna launched the Give One Initiative, pledging to dedicate 1% of all newly raised funds to planet health action.

Operational Impact

The introduction of an internal carbon tax has made it a financial necessity for Klarna to push for low-carbon alternatives in all aspects of their business, from office fittings to marketing materials. This has aligned everyday business decisions with the goal of reducing emissions. The tax also funds the Climate Transformation Fund, which invests in climate advocacy and carbon removal. Klarna's use of Watershed to gather emissions data on their largest vendors and partners has helped them understand where they can make the most impact. The company's Give One Initiative has also allowed them to dedicate significant funds to planet health action.

Quantitative Benefit

Two-thirds of Klarna's offices have been converted to run on clean energy.
Klarna has committed $16.5M to its Give One Initiative, which funds its carbon reduction program and carbon removal initiatives.
Klarna is committed to cutting their carbon intensity in half by 2030, and to operating at net zero emissions by no later than 2040.