Clarity AI and Klarna team up to make shopping greener

Clarity AI has announced that Klarna is adopting its AI data and capabilities to promote environmentally conscious brands to up to 150 million shoppers.

The AI firm notes that sustainability is becoming a major concern for shoppers, with much of the attention in the market has been focused on the fashion industry. Klarna intends to initially feature new ways to “shop consciously” via Clarity AI’s capabilities, to those shopping for electronics.  

According to Clarity, the technology industry is expected to produce around 14% of global emissions by 2040, up from around 3% today. As well as the energy demand from the usage of electronic devices, their production and disposal have a significant environmental impact. Producing these devices equals or exceeds the carbon cost of using them.

“We are thrilled to empower over 150 million shoppers with the information they need to make more sustainable choices when they shop”, said Angel Agudo, Head of Product and member of the Board of Directors of Clarity AI. 

“With more than two million daily transactions processed by Klarna, this initiative can have a significant collective effect, showcasing the scale and potential that Clarity AI can power and unleash as we make our sustainability metrics accessible to consumers.”

According to the Q3 2022 Klarna Shopping Pulse, 62% of US shoppers say that sustainability when shopping for electronics is important to them. 

Furthermore, the study showed that over two thirds of Americans believe it’s important that the brands they buy actively combat climate change and use recycled or sustainable materials in their products, with 24% of Americans actively seeking out brands that are ethical and sustainable.

After consumers make a purchase in the electronics category, new Clarity AI-powered information on the brand’s environmental efforts will be displayed in the form of brand badges, bringing together brand level sustainability data in one simple overview.

This information provides consumers with a simple and reliable way to identify brands that are proactively addressing climate change, helping consumers shop more consciously. 

The brand badges indicate whether a company has lower greenhouse gas emissions than similar businesses, whether they derive a higher proportion of its energy from renewable sources, has climate change policies and a roadmap to positively impact climate change, and whether or not a company is transparent in its reporting of climate-related information.

Salah Said, Head of Sustainability at Klarna, added: “In 2021, Klarna introduced the CO2 emissions tracker, which brought to life one of the largest awareness efforts on carbon footprints ever made. 

“Now, we are taking it one step further by providing Klarna’s more than 150 million shoppers with reliable and transparent metrics for electronics brands, helping shoppers to not only understand the impact of their purchases but also to make more environmentally conscious decisions going forward.”