Lego, the iconic toy company known for its colorful plastic bricks, is making significant strides toward sustainability by committing to replace oil-based plastics with renewable and recycled materials. As global concerns about plastic pollution and climate change intensify, Lego has pledged to create a more eco-friendly future, even if it means absorbing higher production costs.
Shift to Sustainable Materials
Lego has been working for years to develop bricks made from sustainable materials. The company aims to ensure that 50% of the plastic used in its bricks is from recycled or renewable sources by 2026. As of now, about 30% of each Lego brick consists of resin certified under the mass balance approach, which includes a mix of both virgin fossil fuels and renewable resources, such as used cooking oil and plant oils. This method allows Lego to trace the sustainable materials through its supply chain and encourages the use of eco-friendly materials.
Lego CEO Niels Christiansen expressed the company’s commitment to sustainability, stating that it is a privilege for a family-owned business to be able to invest in sustainable materials without passing the costs on to consumers. “We don’t see consumers really ready to take on the cost,” Christiansen said. He emphasized that Lego’s goal is to help accelerate the industry’s transition to more sustainable, high-quality materials.
Challenges and Costs
The transition to greener materials has not been without challenges. Lego has tested over 600 different materials in its quest to develop a suitable alternative to traditional plastic bricks. Despite these efforts, the company has yet to find a perfect substitute for oil-based plastics. In 2023, Lego abandoned the use of recycled polyethylene terephthalate (RPET), a material commonly used in plastic bottles, due to its potential to increase carbon emissions rather than reduce them.
To meet its sustainability goals, Lego is paying up to 70% more for certified renewable resin. This significant increase in production costs could be a financial burden for many companies, but Lego has chosen to absorb these costs in the short term. The company hopes that its investment will encourage manufacturers to boost production of sustainable materials, ultimately driving down costs in the future.
Industry Impact and Future Goals
Lego’s move toward sustainability reflects a broader trend within the toy industry. Other major toy companies, like Hasbro and Mattel, are also taking steps to incorporate recycled or renewable materials into their products, though they have not set firm targets like Lego. As one of the largest toy manufacturers in the world, Lego’s commitment to using eco-friendly materials could set a new standard for the industry.
By 2032, Lego aims to produce all of its products from renewable and recycled materials. This ambitious goal is part of a larger effort to reduce the environmental impact of its operations and products. The company has also launched the Supplier Sustainability Programme, which requires suppliers to set targets for reducing greenhouse gas emissions by 2026 and further by 2028.
A Sustainable Future Without Raising Prices
Lego’s decision to not raise consumer prices despite higher production costs underscores its commitment to sustainability and customer loyalty. The company’s leadership believes that investing in a sustainable future is essential, even if it involves short-term financial sacrifices. As Christiansen noted, the company is in a unique position to take these steps without placing the financial burden on consumers.
As Lego continues to innovate and explore new materials, it remains dedicated to creating a positive impact on the environment while maintaining the quality and affordability that customers have come to expect. With its strong financial performance and commitment to sustainability, Lego is well-positioned to lead the way in building a more eco-friendly future for the toy industry.
