If there’s one thing we know, it’s oats. It’s the foundational power-crop in all our products, and we spend a lot of time researching, innovating and advancing the scientific understanding of the nutritional and sustainability potential of oats and oat drinks. Our products help make the shift to a balanced plant-rich diet easy. The shift will reduce the environmental footprint of the food system, while also providing significant health co-benefits ¹*

The current food system is not meeting the nutritional needs of present or future generations, creating significant economic losses and is causing severe environmental impacts.²*Livestock have proportionally larger environmental impacts than crops but only provide about 17 percent of calories and 38 percent of protein.³*

Land-based livestock use 80 percent of all agricultural land⁴*and account for 40 percent of total agricultural water use⁵*and around 50-60 percent of global GHG emissions from the food system.⁶* Due to land use and conversion for livestock, animal-based food is responsible for a significant proportion of biodiversity loss,⁷* and livestock now constitute 97 percent of animals on land.⁸*

In other words, people need to eat less meat and dairy and consume more plants. Using oat drink instead of cow’s milk in your coffee or drink is a great-tasting way to start. Oatly’s biggest climate impact doesn’t happen inside our factories. It happens every time someone replaces cow’s milk with Oatly. As a Climate Solution Company, it’s not only about shrinking our own footprint, it’s about shifting behavior.

Humans generate 26.4 billion tons of waste each year and only about 11% is recycled¹⁰*, and that’s not a sustainable use of material. At Oatly we’re working not only to reduce our waste but to enable more of our waste to be re-used where possible. Five years ahead of schedule, we met our goal to eliminate production waste to landfill in 2024. Now, we’ve developed new commitments expanding our waste tracking to include waste generated at both production facilities and warehouses. By 2030, we will reduce total waste by half from a 2025 baseline and eliminate waste to landfill through reuse, recycling and composting, and then converting the rest to energy. In 2025, our total waste to landfill was approximately 2 percent.

All of the roughly 82,600 metric tons of oat fiber byproduct we generated in 2025 was repurposed as animal feed, compost, soil improvement or converted to energy. Our goal is that all our oat fiber byproduct will be used to feed humans by 2040.

Well-managed natural assets can enhance the critical ecosystem services such as fresh-water provision, climate regulation and soil fertility on which we depend.¹²*

Agricultural landscapes, where oats are grown in rotation with many other crops, hold the potential to restore soil health, increase soil microbial biodiversity, benefit habitats and improve water quality.

In 2025, we expanded our work with oat farmers to support their transition to regenerative agriculture through our Future Agriculture Renovation Movement program (FARM), increasing our equivalent share of oats from regenerative agriculture to 7.8%. Keeping progress in line with our 2030 target of 33%

We provide financial incentives to oat farmers to transition to regenerative practices, and we also joined two landscape-level multi-stakeholder collaborations ahead of our scheduled 2026 date. By 2050, we will transition enough oat growers to regenerative agriculture to produce the equivalent of 100 percent of Oatly’s supply, reducing the net GHG emissions of oats used by us by 94 percent.

Cecilia, who used to be our one-woman lobbyist now has a small team helping her fight the good fight next to NGOs, political leaders and companies. That’s great, because in many countries, plant‑based drinks are subject to higher tax rates than cow’s milk, even though they serve the same purpose for consumers.

For example, in Germany, cow’s milk is taxed at 7% VAT while plant‑based alternatives face 19%, and in the Netherlands, most plant‑based drinks have been captured by the “lemonade” tax, while milk and soy drinks are exempt. These tax structures disfavor consumers who choose plant‑based options for taste, medical, sustainability, health or ethical reasons, and create unequal market conditions unaligned with public health or climate objectives.

We’ll continue working towards fair conditions, and aspire to contribute to at least 25 meaningful policy developments aligned with our business mission between 2025 and 2030. In the meantime, why not read about these six key moments from 2025 that supported a more sustainable food system.

We exist because of the humans who create and consume our products, and we believe that people everywhere are critical to both changing the food system and achieving our mission as a company. This is why we seek to align with important international human rights standards and focus on respecting the rights of everyone, but especially those affected by our business. From the oat farmers providing oats to the mills from which we source, to workers at Oatly production facilities, to the communities we operate in, and the baristas using our products to evolve coffee and drink culture.

In 2025, we continued to expand Oatly’s Human Rights Program with a new Human Rights policy that guides our global approach to responsible business. Now, we are turning that policy into action through our People, Sourcing and Procurement teams.