Unsolicited Content - The Dilemma of Carbon Emissions Reduction: Possible Reasons why Conventional Zero-Emission Goals Might Hinder Global Dec-carbonization
**Oatly Achieves Climate Solutions Status with Intensity-Based Targets**
In a significant stride towards climate action, the world's largest oat milk company, Oatly, has adopted intensity-based targets to reduce its carbon footprint. These targets, verified by EcoAct, have helped Oatly identify the correct intensity targets for maintaining its climate solutions company status.
According to recent projections, conventional dairy will only reduce its emissions by 22% to 39% by 2050. In contrast, Oatly's products will maintain and significantly widen their advantage over time. By 2030, Oatly aims for a 40% reduction in emissions per litre compared to 2020, ensuring at least 60% lower climate impact than the 'milk' market average.
The Climate Solutions Framework developed by the Exponential Roadmap Initiative's (ERI) and Oxford Net-Zero is the most appropriate for companies whose products enable significant emissions reductions compared to conventional alternatives. This framework, which Oatly has embraced, provides intensity-based targets for qualified climate solutions companies, encouraging growth and rewarding innovations that counter global warming risks.
Intensity-based targets offer several benefits. They allow companies to expand their operations while maintaining a focus on reducing emissions relative to their growth. This is particularly beneficial for companies like Oatly, whose products are designed to reduce emissions. Intensity-based targets also help highlight the comparative environmental benefits of alternative products and provide operational flexibility.
However, there are challenges associated with intensity-based targets. Even if emissions intensity decreases, absolute emissions can still increase if the company's production grows significantly. This can lead to critics arguing that the company is not truly reducing its carbon footprint. Intensity-based targets require detailed tracking of emissions per unit of production, which can be complex and resource-intensive. Some stakeholders may prefer absolute emissions targets for simplicity and clarity, and there might be skepticism about the effectiveness of intensity-based targets if they are perceived as less stringent. Comparability issues can also arise when trying to evaluate progress towards sustainability goals across different companies or products.
To overcome these challenges, companies can implement comprehensive data systems, engage stakeholders effectively, integrate intensity targets with broader sustainability goals, and evolve methodologies for intensity-based targets to recognise the diversity of contributions needed to reach net-zero.
In 2050, Oatly aims for an 89% reduction in emissions per litre, reaching 90% lower impact than the 'milk' market average, with remaining emissions counterbalanced through durable carbon removals. By 2040, Oatly plans to reduce emissions per litre by 70%, widening the gap to at least 75% lower climate impact than the 'milk' market average.
The food system transformation requires bold innovation and practical solutions, with Oatly's approach allowing them to grow their positive impact and enable more consumers to choose products with significantly lower climate impact. By approaching EcoAct, part of Schneider Electric, Oatly found a more suitable approach that acknowledges both operational accountability and system-wide impact.
Companies delivering climate solutions play a vital role in enabling emissions reduction across the economy, but current frameworks may not always reflect this, potentially slowing down progress. With its commitment to intensity-based targets and the Climate Solutions Framework, Oatly is leading the way in demonstrating the potential of these approaches to drive meaningful climate action.
- The Climate Solutions Framework, which Oatly has adopted, provides intensity-based targets for qualified climate solutions companies, encouraging growth and rewarding innovations that counter global warming risks.
- Intensity-based targets help highlight the comparative environmental benefits of alternative products like Oatly's and provide operational flexibility.
- However, criticisms can arise regarding absolute emissions even with decreasing emissions intensity, demanding a comprehensive data system and stakeholder engagement for proper implementation of intensity-based targets.
- By embracing the Climate Solutions Framework and committing to intensity-based targets, Oatly is demonstrating the potential of such approaches to drive meaningful climate action and enable more consumers to choose products with significantly lower climate impact.
