Klarna, a Fintech firm, has dedicated US$2.35mn to back ecological initiatives, showing the organization's continued dedication to combating climate change.
Klarna, a globally used payments system and shopping platform, announced its ambition to put US$2.35mn towards environmental initiatives, displaying its unwavering commitment towards resolving climate change.
This declaration denotes the fintech's third instalment of its carbon tax - reaching an amount of US$5.07mn since the beginning of 2021 - intended to generate considerable and enduring consequences on the environment.
Klarna Establishes a Carbon Tax Fund
Klarna has created a fund that is dedicated to tackling climate change through the use of a carbon tax. This fund is designed to help reduce the emissions of carbon dioxide that are released into the atmosphere. This fund is likely to help mitigate the effects of climate change in the future.
Rather than simply offsetting carbon emissions by purchasing carbon credits, Klarna has decided to employ its internal carbon tax funds to back up initiatives that actively fight climate change, which could have a more substantial influence.
Salah Said, Klarna's Head of Sustainability, has clarified that the brand is devoted to sustaining "impactful" organizations, offering them aid to help them expand and strengthen their impact.
Klarna's internal carbon tax has thus far generated $5.07 million to fund more than 20 companies globally, striving to remove CO2 from the atmosphere and advocating for nature protection, decarbonization, and restoration. According to the company, this is a significant accomplishment.
Identifying creative methods of addressing climate change
Klarna has assigned a percentage of its $2.35 million to various groundbreaking projects, all dedicated to discovering inventive climate solutions and carbon removals. These have been elected in collaboration with Milkywire. The following are included:
Takachar, located in Kenya, manufactures biochar, a carbon-rich fertilizer, from agricultural and woodland waste, thus helping to reduce air contamination and attain net carbon removal.
Carbon Capture Scotland, a firm specializing in capturing and securely storing biogenic CO2 emissions created by whisky distilleries, is devoted to carbon capture and storage through geological methods.
Mission Zero Technologies, the innovators of direct air capture (DAC), have recently developed a highly efficient and effective process identified as Direct Air Mineralization (DAM). This pioneering technique takes CO2 from the atmosphere and turns it into stones, offering potential uses in construction materials or for safe disposal through landfills.
SeaO2, a Dutch organization, uses electrochemical oceanic carbon capture technology to cleanse water and trap its carbon dioxide content. The treated water is subsequently put back into the ocean's upper layer, enabling it to continue to absorb CO2.
Inplanet, an ERW startup, has a concentration in Brazilian agriculture. Their goal is to lessen the application of standard chemicals, remove carbon, and increase the nutritional value of crops by sprinkling silicate dust from local mines on fields.
Digital technology has dramatically increased the speed and ease of exchanging data. This has revolutionized how quickly information is accessed and shared, leading to a much faster communication rate. Nowadays, the ability to rapidly send and receive data has become a critical part of how we interact with each other.
Robert Hoglund, Climate Fund Manager at Milkywire, commented on the importance of carbon removal in achieving net zero, noting that the industry is still in its infancy and requires costly development, testing and scaling. He highlighted that early funders like Klarna, who recognize the catalytic effect of their support, can make a tremendous impact in hastening the development of this sector.
Klarna is a platform that allows customers to purchase items without paying interest. This system will enable users to buy things now and pay for them later.
Striving for sustainability - Klarna's Goals
Klarna is backing initiatives that have a positive effect and making significant progress in reducing its carbon footprint.
By the end of 2022, Klarna had achieved a 3.75% decrease in its absolute carbon footprint compared to the year before. This success resulted from their unwavering commitment to decreasing emissions generated from bought goods and services and capital goods.
Klarna achieved its goal of having all its offices powered solely by renewable energy by 2022, two years ahead of schedule.
To achieve net-zero emissions by 2040, Klarna plans to reduce its carbon-based emissions by half.