EXCLUSIVE: Klarna Carves The Way For Sustainable Shopping
Bobby Suman – Fintech Finance
As time passes, our society makes a more conscious effort to be greener, cleaner and more sustainable in order to protect our environment. According to data from Euromonitor International, 67% of consumers tried to have a positive impact on the environment through their everyday actions in 2021. To look closer at the shopping industry, 54% of professionals believe that more personalised shopper experiences will have a strong impact on retailing over the next five years. Deloitte’s research on consumer behaviour also highlighted that 88% of consumers turn to brands to help them make more ethical consumption choices.
How Will It Work? – With all that in mind, Klarna’s new partnership with Good On You, the world’s leading sustainability rating platform for fashion brands, is extremely important for pathing the map to sustainable shopping and actionable insights.
Klarna launched the first set of Sustainable Collections in their app, which will help bring greater transparency to shopping decisions. It will also appear on the Klarna App’s homepage, confronting consumers immediately with the choice to make better shopping decisions. This set includes a total of 23 clothing brands, such as Asket, Pangaia, Lucy & Yak, Mara Hoffman, Nudie Jeans and many others. These brands will have received the highest scores on the Good On You sustainability track records and will therefore exist as a useful platform for shoppers to improve their social and environmental impact, as they will be buying from trusted brands committed to sustainability.
Good On You – How are brands measured by Good On You in terms of their sustainability? Well, the platform evaluates over 500 data points, assessing the most critical social and environmental issues facing the fashion industry today to judge a brand’s impact on people, the planet, and animals – rating each brand on a five-point scale ranging from “We Avoid” to “Great.”
“The fashion industry urgently needs to make progress to address its impacts on people and the planet’, commented Kathy Kearns, Head of Enterprise at Good On You. ‘At Good On You, we believe that shoppers have significant power to hold brands accountable, but with pervasive greenwashing, it can be challenging for consumers to see through all the sustainability spin. Klarna shares our vision for making insights about sustainable fashion more accessible to consumers so that they can make more informed purchasing decisions. Today’s launch of the Sustainable Collections will help even more consumers around the world better understand the impacts of brands so that they can shop mindfully with confidence.”
An Ongoing Move Towards Sustainability – This activity follows on from the launch of Klarna’s carbon emissions tracker last year, which existed as one of the largest-ever awareness-raising efforts on carbon footprints based on consumer reach. This also saw a donation of $10 million to initiatives supporting planet health, in an effort to democratise access to unbiased climate impact information for consumers at no cost or judgement, driving awareness to climate change. Klarna also became the first Fintech to join the Climate Pledge and Race to Zero Campaign last year, implementing decarbonization strategies in line with the Paris Agreement in order to reach net-zero greenhouse gas emissions in all scopes by 2040 at the latest. The vision is clearly about empowering consumers to enact change with their wallets.
David Sandström, Chief Marketing Officer at Klarna discussed the project, voicing that Klarna are “giving consumers powerful tools to act on this knowledge and inform their shopping choices. We are beyond excited to be teaming up with Good On You to curate ongoing Sustainable Collections in the Klarna App. As leaders in sustainability-driven insights, Good On You make for an excellent addition to the Klarna App, helping our consumers discover ethically conscious brands and empowering them to make a real impact.”
More often in the media has the exploitative and unsustainable practices of fashion, especially ‘fast’ fashion, been communicated. It is terrible for the environment and terrible for the people involved in the production process. Ventures like this from Klarna and Good On You are not an end to the cycle, but they are definitely a start in the path to a more environmentally and socially friendly future.
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