The first generation, the last generation.

2024 provides us with a great opportunity to move from hoping for “good resolutions” to taking “real impact actions” to attack one the biggest and most dangerous paradoxes of our times when it comes to the future of our planet.

On one hand, the World Meteorological Organisation said 2023 was – definitively - the warmest year in history. Similarly, a UN report also indicated that one quarter of humanity are drought-stricken by a direct impact of climate change. On the other hand, we are also witnessing pockets of “climate fatigue” - the loss of tailwind for needed necessary changes, some governments pulling back from commitments to favour short term wishes, and “sustainability” being tagged as corporate jargon that excuses the status quo and no longer represents its essence of “sustain – ability”.

This context creates a unique place and duty for us in human history when discussing climate change: ?We are the first generation of leaders who won’t be able to say “we did not know”, AND we are also perhaps the last generation of leaders who can still act decisively to initiate a reversal of the trend. This will only happen if we create change through a combination of individual behaviors, food systems, policies and subsidies : quite a challenge ! It is time for action.

Part of what makes Oatly so special is our mission to make products that reconcile the ideals of being healthier for humans and healthier for the planet. Indeed, these two concepts are closely interlinked: if something that’s good for you isn’t good for the planet – is it really good for you?

Indeed, our existing food systems are responsible for one-third of total human-caused global greenhouse gas emissions, with approximately half of those emissions coming from the animal-based sector[1]. Climate costs are plainly hidden in our everyday consumption - it’s time to make them visible so we all understand that what we choose to drink and eat has a direct impact on the planet we will hand over to our children and grandchildren. At Oatly, we are acting to put climate labelling front of pack on our products in most markets globally and call on the rest of the food industry to do the same, particularly those with cow dairy products.

When one aspires to change human behaviours, it cannot be achieved by feeling guilty or having to sacrifice. This is about creating a movement, a movement of positive change through new alternatives to enable simple easy changes where just moving our eyes two lines down on a coffee house menu, or our hands five centimetres over at a grocery store shelf to a non-cow dairy alternative like #Oatly could help us diminish the climate impact. For example, according to a recent study, #Oatly Barista has between a 44% to 76% lower climate impact than comparable cow’s milk in cases analysed in Europe and the U.S*. This choice makes it possible without sacrificing taste, texture, or pleasure in the process. It’s as simple as just choosing the best milk, cream or soft serve. Period.

?In late 2023 Oatly successfully pushed back on two seemingly unrelated yet intertwined situations. In the United Kingdom, after a multi-year battle, the High Court ruled that we could use the word “milk” as part of our slogan “Post-Milk Generation”. We are also cautiously optimistic that an effort to tax plant-based alternatives in the same manner as soda or lemonade in the Netherlands will fail. There, the Senate gave a resounding YES to exempt plant-based alternatives to milk from the consumption tax. As a result, the state secretary has committed to offer a proposal during the first quarter of 2024 recognizing that plant-based alternatives should be exempt. But change is still needed in existing legislation and regulations to level the playing field globally.

As a company born in science, we are working non-stop on innovations to our oat base, the products we make, and in finding more partners to offer them. But we are always looking for more. If you’re a company committed to a mission similar to ours, or to offering your customers more choice – we would love to work with you in 2024, and beyond. The planet needs it, and future generations require it. They will rightly hold us accountable. They will ask : what did you know about climate change? When did you know? And what did you do once you knew? We owe it to future generations to take decisive action now.

I humbly ask you all to join with us and start today.

*Derived from: Blonk Consultants (2022), LCA of Oatly Barista and comparison with cow's milk. Gouda, the Netherlands. Stages include raw material to point of sale and packaging waste management for average L produced and sold in U.S., Sweden, and the Netherlands, and sold in Germany, Finland, and the UK. Findings subject to assumptions, limitations, conclusions, and critical review statement. ?

[1] a) Xu, X., Sharma, P., Shu, S. et al. (2021). Global greenhouse gas emissions from animal-based foods are twice those of?plant-based foods. Nat Food 2, 724–732.?https://doi.org/10.1038/s43016-021-00358-x b. Poore, J., & Nemecek, T. (2018). Reducing food’s environmental impacts through producers and consumers. Science, 360(6392), 987-992.?https://doi.org/10.1126/science.aaq0216