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Drive a food system shift

To achieve a food system shift, we will work to source sustainable materials and support sustainable farming that give back to nature and communities. To us, giving back to nature means not only reducing emissions, but returning carbon and nutrients to the land, protecting and increasing biodiversity, and ensuring that the people who are the heart of the food system, such as farmer and producer communities, thrive and benefit.

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The Climate impact from ingredients went down: -17%*

As our production expands to new continents and our sourcing become more complex, our practices in managing potential risks must evolve with it.

In 2020, we launched a systematic approach that integrates sustainability into daily sourcing practices and decisions. This looks at both the environmental and social sustainability impacts of our suppliers.

Our code of conduct states our company values and requirements on key issues such as human rights, working conditions and anti-corruption to mention a few. Today all our suppliers and production partners must either commit to comply with our code of conduct or present their own, with a standard equal to ours. In 2020 we conducted a gap analysis on our code of conduct and concluded that we will develop a supplier-specific code of conduct to set global standards, demonstrate best practices, and provide clear accountability and performance evaluation guidelines.

In addition to our code of conduct, we ask our suppliers to meet our sustainability requirements by for example, reporting their sustainability performance, supplying us with sustainable materials and meeting our anti-corruption requirements stated in the code of conduct. Based on this supplier performance evaluation, we see a low risk of corruption but we know that transparency can be a challenge, so we interpret the results with caution and continually monitor our suppliers’ performance.

In 2020 we updated our requirements to better reflect our global scope. And in late 2020, we introduced the Ecovadis tool to more actively partner with our suppliers on their sustainability efforts.

*Numbers indicate change from 2019 per produced liter product.

oats
Sustainability requirements

sustainability requirements

As our production expands to new continents and our sourcing become more complex, our practices in managing potential risks must evolve with it. In 2020, we launched a systematic approach that integrates sustainability into daily sourcing practices and decisions. This looks at both the environmental and social sustainability impacts of our suppliers.

Our code of conduct states our company values and requirements on key issues such as human rights, working conditions and anti-corruption to mention a few. Today all our suppliers and production partners must either commit to comply with our code of conduct or present their own, with a standard equal to ours. In 2020 we conducted a gap analysis on our code of conduct and concluded that we will develop a supplier-specific code of conduct to set global standards, demonstrate best practices, and provide clear accountability and performance evaluation guidelines. 

In addition to our code of conduct, we ask our suppliers to meet our sustainability requirements by for example, reporting their sustainability performance, supplying us with sustainable materials and meeting our anti-corruption requirements stated in the code of conduct. Based on this supplier performance evaluation, we see a low risk of corruption but we know that transparency can be a challenge, so we interpret the results with caution and continually monitor our suppliers’ performance. 

In 2020 we updated our requirements to better reflect our global scope. And in late 2020, we introduced the Ecovadis tool to more actively partner with our suppliers on their sustainability efforts. 

U.S Oats for Oatly

In 2020, Oatly implemented the second year of our U.S. Oats for Oatly pilot program in partnership with Practical Farmers of Iowa, Sustainable Food Lab, and our oat supplier. The program is designed to test cost-sharing incentives and market opportunities for corn and soy farmers in the U.S. Midwest to incorporate oats and cover crops into their farm rotations. The added crop diversity can break up pest cycles, increase agrobiodiversity on farm, reduce the use of nitrogen-intensive fertilizers, and provide additional markets to farmers for new crops (like oats). The 2020 year kicked off with a farmer recruitment social, where farmers talked about the program over some scoops of Oatly frozen dessert! Whether it was the compelling sustainability story or the free treat, recruitment was a success and 2020 saw our original four farmers continuing in the program as well as the recruitment of 13 new farmers across Iowa, Minnesota and Nebraska, totaling 1575 acres of farmland enrolled. At the end of 2021, we’ll wrap up a three-year agricultural cycle of crop rotations and gauge the impacts of integrating oats with other crops. Exciting times ahead!

Read more about it here

Meanwhile in Sweden...

 Remember Adam, the Swedish farmer who participated in a research project to make his farm as sustainable as possible? In 2020, we received his final results, and they were all good news: A more diversified production has increased the farm’s number of produced calories by 79% (yearly average over four years) while halving the greenhouse gas emissions per calorie. The farm also kept a steady income and spread the risk across more revenue streams.* The initiative was expanded with nine additional farmers in 2019. We’ll keep you posted on the findings.

Find out more here

*Röös, E. et al. (2021). Moving beyond organic—A food system approach to assessing sustainable and resilient farming. Global Food Security, 28, 100487.

Packaging

For packaging, the raw materials—where they come from and how much is used—are important determinants of climate impact. We increased the share of renewable sources by 1% in 2020. Our goal is to source packaging that is made from 100% renewable or recycled materials and is fully recyclable.

*Numbers indicate change from 2019 per produced liter product.

renewable packaging

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A Note regarding forward-looking statements

This site (the “2020 Sustainability Summary”) contains forward-looking statements regarding our future business expectations and objectives and our environmental, social and governance goals, which involve risks and uncertainties. Actual results may differ materially from the results anticipated depending on a variety of important factors, including without limitation the risks detailed in our filings with the U.S. Securities and Exchange Commission. In relation to the 2020 Sustainability Summary, we are (wholly or in part) reliant on public sources of information and information provided by our own suppliers and business partners. Further, our ability to verify such information (whether now, in the past, or in the future) may be limited by the integrity of the underlying data available at the relevant point in time and the status and evolution of global, supranational and national laws, guidelines and regulations in relation to the tracking and provision of such data. Therefore, such information is provided on a reasonable efforts basis and is subject to change.