Buy now, pay later app Klarna partners with Sligo startup Silicate to strengthen its green credentials.
It is the first investment of its kind in Ireland by the Swedish fintech, which will divert €240,000 from its internal carbon tax to help Silicate scale up.
In return, the Irish start-up provides Klarna with credits to offset its carbon footprint.
Silicate processes waste concrete into a material that can be applied to fields to help farmers lower soil acidity while capturing and storing carbon from the atmosphere for up to 100,000 years.
Silicate co-founder Maurice Bryson said the money would make an “immeasurable difference” and allow the company to launch its first commercial-scale pilot project in Wexford. It will take about a year for the results to be available.
“We want to use this money, this earnings from Klarna to show that it works on a larger scale,” he said Irish Independent.
Klarna introduced an internal levy on its own and supplier emissions in 2021 and has raised nearly $1.67 million (€1.63 million) to date.
It has poured the money into several decarbonization projects, including Silicate, as it works to halve its carbon emissions by 2030 and become carbon neutral by 2040.
The announcement is made after a Wall Street Journal The company’s valuation has reportedly fallen sevenfold since last year. Klarna said it didn’t comment on the review.
Salah Said, Head of Sustainability at Klarna, said the increased focus on climate has been made possible by buoyant growth.
“For Klarna, sustainability has become a priority just in the last two to three years, and it could become a priority because the company has grown so well.”
In a trading update in May, Klarna said it was laying off 10 percent of its workforce due to the “more volatile” economy.
https://www.independent.ie/business/irish/klarna-signs-up-with-sligo-firm-silicate-for-carbon-credits-scheme-41816769.html Klarna signs up for a carbon credit scheme with Silicate in Sligo