Clarity AI Technology enables Consumers to shop consciously with Klarna

CIOTechOutlook Team | Monday, 19 December 2022, 12:03 IST

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The top global sustainability tech platform revealed today that 150 million consumers would be exposed to environmentally friendly products thanks to Clarity AI's data and capabilities. Klarna is the global pioneer in the generational shift away from credit cards.

According to Angel Agudo, Head of Product and member of the Clarity AI Board of Directors, "We are happy to provide over 150 million shoppers with the knowledge they need to make more sustainable decisions when they purchase." "With more than 2 million transactions handled by Klarna every day, this effort can have a substantial collective impact, highlighting the size and potential that Clarity AI can power and unleash as we make our sustainability KPIs accessible to users," says the company.

Consumers are growing increasingly concerned about sustainability. However, the fashion business has received a lot of interest in the market thus far. In order to shine light on a new category, Klarna will first offer options to buy mindfully to people purchasing electronics from thousands of manufacturers in 22 different countries, backed by Clarity AI's capabilities. By 2040, the technology sector as a whole is predicted to contribute 14% of world emissions, up from 3% currently. The production and disposal of electronic devices have a major environmental impact in addition to the energy demand from their use. The carbon cost of making these gadgets is equal to or greater than the cost of utilising them.

According to the Q3 2022 Klarna Shopping Pulse2, 62% of US consumers feel that sustainability is essential to them when purchasing devices (e.g., that the product is made of more sustainable materials or the brand is taking active steps towards climate change). Additionally, the poll revealed that 24% of Americans actively look for companies that are ethical and sustainable and that over two-thirds of Americans believe it is crucial that the businesses they purchase actively address climate change and utilise recycled or sustainable materials in their products.

After a consumer makes an electronics purchase, new Clarity AI-powered data about the company's environmental initiatives will be displayed in the form of brand badges, compiling brand-level sustainability data into a single, easy-to-understand overview. This data gives customers a quick and trustworthy way to recognise companies that are aggressively tackling climate change, assisting them in making more ethical purchasing decisions. The brand badges show whether an organisation has lower greenhouse gas emissions than comparable businesses, whether a greater percentage of its energy comes from renewable sources, whether it has policies and a roadmap to mitigate climate change, and whether it is transparent in its reporting of climate-related data.

"In 2021, Klarna unveiled the CO2e emissions tracker, sparking one of the most significant awareness campaigns on carbon footprints ever. By offering trustworthy and transparent data for electronics brands to Klarna's more than 150 million customers, we are now going a step further and assisting consumers in understanding the effects of their purchases as well as in making future decisions that are more environmentally friendly. According to Salah Said, Head of Sustainability at Klarna, "Klarna and Clarity AI are empowering consumers to 'vote with their pocketbook' for a more sustainable future. We sought a partner who could give a flawless technical integration in addition to clear, unbiased data. Clarity AI was an obvious choice for us because we are a tech company that is entirely digital. We are a perfect match since we speak the same language.

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