CASE STUDY
Context & Study Goal
Oatly, a major player in the plant-based drink industry, has undertaken a critical examination of its environmental impact in comparison to cow’s milk. The company aims to assess its ecological footprint taking into account the rising sustainability concerns. This study presents a significant challenge of evaluating and comparing the environmental performance of its oat-based products against cow’s milk, in multiple key markets across Europe and the US.
Additionally, it aims to analyze the primary factors influencing the environmental footprint of its products and identify areas for enhancement.
Design of the Study & LCA Methodology
The study evaluates the environmental impact of 1l of oat drink and cow’s milk at the point of sale, including packaging, manufacturing and disposal.
For cow’s milk, we considered a country-specific average market mix of skimmed, semi-skimmed, and whole milk, along with prevalent heat treatment methods (HTST or UHT) and different packaging formats (plastic, beverage carton, aseptic/chilled). The data used are the latest national-level data and statistics of cow’s milk (data source for Oatly products: Oatly).
We conducted the study according to ISO 14040/14044 standards and followed LCA guidelines including the PEFCR.
The analysis encompassed nine key impact categories based on the ReCiPe 2016 impact assessment method. Cow’s milk was modeled using Mérieux NutriSciences’ tool for Animal Production System-footprint (APS-footprint). This software computes the lifecycle environmental impacts of animal production systems. The algorithm behind this tool is following established international calculation guidelines from entities like the European Commission, the European Environment Agency, and the IPCC.
Results & Benefits
The study reveals the environmental impact across various categories such as:
- climate change
- fine particulate matter formation
- terrestrial acidification
- freshwater eutrophication
- marine eutrophication
- mineral resource scarcity
- fossil resource scarcity
- water consumption
- land use
It also describes the contribution of individual life cycle stages to the overall footprint within each category. Additionally, sensitivity and uncertainty analyses were conducted to ensure the robustness of the findings.
The outcomes shed light on the comparative environmental performance of Oatly’s products against cow’s milk, facilitating informed decision-making for both the company and consumers. Subsequent analyses have extended this comparison to specific markets, such as the US, providing further insights into geographical variations in environmental impact.