LEGO’s Sustainability: What Every Professional Should Know

LEGO. The name evokes childhood memories, creativity, and, increasingly, a commitment to sustainability. While we all know the iconic bricks, LEGO’s approach to environmental responsibility offers a fascinating case study for sustainability professionals and marketers alike. This blog dives deep into LEGO’s sustainability practices, uncovering valuable lessons and actionable strategies you can apply to your organization. Let’s explore how LEGO is building a more sustainable future, brick by brick.

LEGO’s Sustainability: A Model for Business

LEGO isn’t just playing around when it comes to sustainability. They are making real changes with their environmental plans.

Sustainable Materials: Building a Foundation

One of LEGO’s most visible commitments is its transition to sustainable materials.

• The 2030 Goal: LEGO has publicly committed to using sustainable materials in all core products and packaging by 2030. In the first half of 2024, 30% of all resin purchased was certified under the mass balance principle, which translates to 22% of material sourced from renewable and recycled sources.
• Bio-based and Recycled Plastics: LEGO is actively experimenting with toy blocks made from recycled plastic and bio-plastic (derived from sugarcane).
• Packaging Innovation: They are also working towards using only renewable or recycled materials for packaging by 2025.

Why This Matters for Professionals:

• Material Innovation: LEGO’s journey highlights the challenges and opportunities of sourcing and implementing alternative materials. It demonstrates the importance of R&D, collaboration with suppliers, and a long-term commitment to sustainable material choices.
• Transparency and Goals: The commitment to sustainability is clear. When a brand commits to transparency, this builds consumer trust.

Emissions Reduction: Setting Ambitious Targets

Beyond materials, LEGO is tackling its carbon footprint head-on.

• Net-Zero by 2050: LEGO has set a goal to reach net-zero emissions across its entire value chain by 2050, with an interim target of reducing carbon emissions by 37% by 2032 (using a 2019 baseline).
• Supplier Engagement: LEGO launched a Supplier Sustainability Programme that mandates suppliers to set emission reduction targets by 2026 and further targets by 2028.
• Incentivized Sustainability: To create strong incentives for its sustainability team, LEGO has linked annual carbon emission reductions to employee bonuses.
• WWF Partnership: LEGO is working with WWF to further reduce CO2 emissions along its production and supply chains.

Why This Matters for Professionals:

• Scope 3 Emissions: LEGO’s focus on its entire value chain (including supplier emissions) highlights the critical importance of addressing Scope 3 emissions – often the largest source of a company’s carbon footprint.
• Supplier Collaboration: LEGO’s Supplier Sustainability Programme demonstrates how companies can leverage their influence to drive sustainability improvements across their supply chain.
• Employee Engagement: Linking employee bonuses to sustainability targets is an innovative way to incentivize and embed sustainability throughout the organization.

Supply Chain Innovation: Efficiency and Resilience

LEGO is strategically reshaping its supply chain to reduce its environmental impact and improve resilience.

• Localized Production: LEGO is expanding its supply chain and locating production and distribution facilities closer to major markets.
• Data Tracking: LEGO requires suppliers to report data on the amount of carbon linked to products and services purchased by LEGO.

Why This Matters for Professionals:

• Reduced Transportation: Localized production reduces transportation distances, lowering emissions and improving supply chain responsiveness.
• Resilience: Diversifying production and distribution locations enhances supply chain resilience, mitigating risks associated with disruptions (e.g., natural disasters, and geopolitical events).
• Carbon Data: When a brand has carbon data, this creates opportunities for brands to innovate.

Marketing Sustainability: Telling the Story

LEGO understands that sustainability isn’t just about internal operations; it’s also about communicating their commitment to customers.

• Transparency: LEGO shares its sustainability goals and progress publicly through its website and sustainability reports.
• Storytelling: They weave sustainability into their brand narrative, highlighting how their bricks are helping to build a better future for children.

Why This Matters for Professionals:

• Brand Building: Authentic sustainability initiatives enhance brand reputation and attract environmentally conscious consumers.
• Consumer Engagement: Transparency and storytelling help to build trust and engage consumers in the company’s sustainability journey.

Conclusion: LEGO’s sustainability strategies

LEGO’s sustainability journey offers a blueprint for other companies looking to integrate environmental responsibility into their business. By focusing on sustainable materials, emissions reduction, supply chain innovation, and transparent communication, LEGO is not only building a greener future but also strengthening its brand and engaging its customers. As professionals, we can learn valuable lessons from LEGO’s example and apply them to our organizations to create a more sustainable world.

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Azjargal (Azaa) Gankhuyag

Azjargal (Azaa) Gankhuyag is the founder of ByteCode Digital Marketing Agency. With expertise in data-driven strategies and authentic storytelling, she helps startups and sustainability-focused brands grow through impactful digital marketing.