Strategic CSR - Oatly

I saw this ad in main section of The Sunday New York Times on May 7 (pp.18-19), earlier this year:

Several thoughts on this (and Oatly, which I featured favorably in a prior newsletter; see Strategic CSR – Oatly):

First, Tropicana was one of the earliest brands to calculate the carbon footprint of their orange juice, more than 10 years ago (see Strategic CSR – PepsiCo). What is interesting is that, at that time, I recall they did not advertise the number – the wanted the knowledge primarily to improve their operating/supply chain efficiency. But, if marketing is central to the effort, as it obviously is for Oatly, then there are two questions that are essential – how accurate is the number (are they counting everything that needs to be counted; there are real issues with scope 3 emissions, let along scope 4 – see Strategic CSR – Scope 4 emissions) and does anyone understand it? It will not cause any change in behavior unless customers understand what that number means and can compare it to competing products (the absence of consistent numbers across companies and industries is why all the ESG stuff has been essentially meaningless, so far; see Strategic CSR – ESG).

Second, Oatly is not as good a product as I originally thought. It tastes great, but the reason is that it is stuffed full of sugar. My doctor told me the golden rule is that the amount of protein needs to be greater than the amount of sugar, and I think in Oatly it is the same, 5g of both (if I am remembering the numbers correctly). Fairlife (a Coke product) is much better on this metric – lactose free and much more protein than sugar.

So, the danger with so many of these initiatives at present (because there is no standardization) is that Oatly draws consumers' attention to this work that they are doing (which is no doubt well-intentioned, but may or may not be meaningful – really hard to know without a lot of digging) as a way of concealing the fact that their product is not that much different than drinking a can of soda.

For more information on some of Oatly's progressive approach to this issue, see: https://www.oatly.com/en-us/stuff-we-sell/climate-footprint

Take care

David

David Chandler

Strategic Corporate Social Responsibility: Sustainable Value Creation (6e)

© Sage Publications, 2023

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Strategic CSR - Oatly

Recently, I have made an effort to reduce the amount of milk that I consume and have started using oat milk, instead. This is not for medical or allergy reasons, I just thought it was a good idea to reduce my dairy intake and I really like the taste of Oatly. From the firm's website (https://www.oatly.com/int/about-oatly):

 

"Our sole purpose as a company is to make it easy for people to turn what they eat and drink into personal moments of healthy joy without recklessly taxing the planet's resources in the process. Oatly was founded back in the 1990s and is based on Swedish research from Lund University. The company's patented enzyme technology copies nature's own process and turns fiber rich oats into nutritional liquid food that is perfectly designed for humans. Today, the Swedish company remains independent and dedicated to upgrading the lives of individuals and the general well being of the planet through a lineup of original oat drinks."

 

In other words, not only is Oatly a good product, but I also like the company. Here is its mission/vision statement that is printed on every carton under the heading "Here's what we believe":

 

"Most companies think having a strong opinion means scaring away customers who think differently. We think it's a good way to make some new friends. For the record, we believe we should eat stuff we can grow instead of growing stuff to feed animals and then eat them. Everybody – regardless of spiritual beliefs, birth country, race, gender, sexual orientation or color of their nail polish – is of equal worth. The reckless pursuit of profits without any consideration for the well-being of the planet and the humans that live here should be considered a crime. Companies have as much responsibility as politicians for building a society the rest of the world can admire."

 

Good stuff, both ideologically and nutritionally, which we all need at the moment.

 

Take care

David

 

David Chandler

Strategic Corporate Social Responsibility: Sustainable Value Creation (5e)

© Sage Publications, 2020

 

Instructor Teaching and Student Study Site: https://study.sagepub.com/chandler5e 

Strategic CSR Simulation: http://www.strategiccsrsim.com/

The library of CSR Newsletters are archived at: https://strategiccsr-sage.blogspot.com/