Oatly investors should beware climate change
Monoculture also a risk.
Oatly is going public, so out of prurient interest, I picked up their registration statement. Did you know: a risk factor to Oatly’s business? Climate change.
In 2022 UFABET, the Securities and Exchange Commission provided guidance about how to apply climate change disclosures — since it might be required in the risk factor section, among other places. And according to the SEC, investor demand for climate change disclosures has “grown dramatically.” The SEC is mulling over whether existing disclosures are good enough, and it has requested feedback from the public.
Oatly’s registration provides a nice demonstration of that interest: the risks of climate change laid out bluntly by a corporation.
This is the first time I’ve seen “monocultures” referenced in a regulatory filing.
If you are, like me, from farm country, “monoculture” pretty much just describes the farming as you know it. The idea is that it’s more efficient, more profitable, and easier to manage, letting farmers specialize in a specific crop, such as oats.
There is also the concern that carbon dioxide and other greenhouse gases in the atmosphere may have an adverse impact on global temperatures, weather patterns and the frequency and severity of extreme weather and natural disasters. If such climate change has a negative effect on agricultural productivity,