Oatly : 2021 Sustainability Report

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OATLY SUSTAINABILITY REPORT

2021

This report, conducted by Oatly AB, 556446-1043, is aligned with the Oatly Group AB for the financial year of 2021.

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Table of Contents
Table of Contents ....................................................................................................................	2
INTRODUCTION ............................................................................................................................	4
THIS IS OATLY ...........................................................................................................................	4
Who we are today ...........................................................................................................	4
Why we exist ...................................................................................................................	5
ABOUT THIS REPORT....................................................................................................................	7
Summary of performance 2021 .....................................................................................	8
High (and low) lights .................................................................................................	9
THE OATLY WAY ........................................................................................................................	10
Description of our supply chain and production ..............................................	10
OATLY'S SUSTAINABILITY PLAN (A.K.A. ASHLEY'S TO-DO LIST) ....................................................	11
Stakeholder interaction ............................................................................................	14
Oatly's contribution to the SDGs ..........................................................................	14
2021 RESULTS .............................................................................................................................	15
Oatly's corporate climate footprint ....................................................................	15
DRIVE A FOOD SYSTEM SHIFT........................................................................................................	16
Ingredients ....................................................................................................................	17
Packaging ........................................................................................................................	17
FUTURE COMPANY - PLANET ........................................................................................................	20
Energy consumption and renewable energy ............................................................	20
Transportation ..............................................................................................................	23
Water withdrawal ..........................................................................................................	25
Our waste and leftovers ............................................................................................	27
FUTURE COMPANY - PEOPLE .........................................................................................................	27
Sustainability engagement and committed co-workers ......................................	27
Health and safety ........................................................................................................	31
EMPOWER A PLANT-BASEDREVOLUTION .........................................................................................	32
Conclusion ......................................................................................................................	36
SUSTAINABILITY GOVERNANCE ....................................................................................................	36
Governance ......................................................................................................................	36
Doing business at Oatly ............................................................................................	37
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Risks and risk management ........................................................................................	39
REPORTING PRINCIPLES ...............................................................................................................	40
Reporting principles ..................................................................................................	40
Data boundaries ............................................................................................................	41
STATEMENT FROM THE AUDITOR..................................................................................................	42
APPENDIX ..................................................................................................................................	43
Stakeholders and stakeholder dialogues ..............................................................	45
SDG Table ........................................................................................................................	46
General Reporting Notes ............................................................................................	49

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INTRODUCTION

THIS IS OATLY

Who we are today

We are the world's original and largest oat drink company. Our company mission is to make it easy for people to eat better and live healthier lives without recklessly taxing the planet's resources. For over 25 years, we have exclusively focused on developing expertise around oats - a crop that helps us to develop products that seek to maximize nutrition and minimize our environmental impact. Our commitment to oats has resulted in technical advancements that have enabled us to develop a wide breadth of dairy portfolio products, including oat drinks, frozen desserts, oatgurt, cooking creams, spreads and on-the-go drinks.

As a people and planet organization, sustainability is at the core of our business and a part of every strategic decision we make across the value chain. Our vision is to be a company that leads a global plant-based movement to reduce the production of cow's milk products by half. We aim to produce sustainable oat-based products that seek to maximize nutritional value and minimize our environmental impact. We believe that transforming the food industry is necessary to face some of humanity's greatest challenges across climate, environment, health and lifestyle. In parallel, the consumer landscape is changing, as the growing concerns for the environment and interest in health and nutrition have started to drive real, scaled behavioral change around consumer purchase choices. We believe the Oatly brand has become one of the strongest voices standing for what consumers care about in particular: sustainability and health. Further, through the efforts of our authentic and award-winningin-house creative team, we have cultivated a loyal consumer base that is highly aligned with our ambitions. We believe our strong resonance with consumers will further propel our growth and support the transition to a plant-based food system.

How we got here

It all started in the late 1980s in the south of Sweden. A group of scientists at Lund University were exploring the mechanisms behind lactose intolerance and its effects on people. They looked around and decided it might also be cool to develop a plant-based food people could use as a substitute for cow's milk. They wanted this new food to be nutritious and sustainable - and that it would have to taste good enough to make people

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