Swedish oatmeal producer Oatly is being criticised because the company has received capital from the controversial Blackstone Group, an investment company with ties to Donald Trump that is said to contribute to the deforestation of the rain forest. Consumers are calling for a boycott.
Eco-warriors in bed with Trump sponsor
Oatly is in the eye of the storm, as social media influencers are calling for a boycott after the American investor took a 200 million dollar stake – representing 10 % of shares – in the Swedish oatmeal producer in July.
Blackstone’s CEO is a sponsor and friend of the American president with a less-than-eco-friendly reputation; and moreover, two companies in which the investor has stakes are accused of contributing to the deforestation of the Amazon rain forest. This contrasts sharply with Oatly’s eco-philosophy: the company was established in the 1990s following research by the Swedish University of Lund, which showed how much greenhouse gas emissions from cows contribute to global warming.
An example for others?
Both sides have already responded to the controversy: Blackstone calls the accusations about the rain forest false and claims to be concerned about ecological sustainability, while Oatly defends the entry of the American financier. “This investment has now given the world’s leading player in private equity the opportunity to steer their capital towards sustainability so they can make a positive contribution”, Oatly says.
While the Swedes realise that not all of Blackstone’s investments are in line with their values, the vegan producer sees itself as a pathfinder: “Through the success of this investment, we want other businesses to see that it pays off to invest in sustainability, so more capital is steered in this direction in the future.” However, the reactions have not yet convinced all critics and the call for a boycott continues.
