Lego to Invest $1.4B in Sustainability as It Pledges Net-Zero Emissions by 2050

By Sophia Francise

September 6, 2023

The LEGO Group pledged to achieve net-zero greenhouse gas (GHG) emissions by 2050 as part of its efforts to reduce environmental impact. The company has submitted its intention to the Science Based Target initiative (SBTi) and will work with the SBTi to develop a target covering Scope 1, 2 & 3 emissions.

The pledge is an extension of its existing near-term climate target to reduce GHG emissions by 37% by 2032 from a 2019 base, which the SBTi previously approved.

Niels B. Christiansen, CEO of the LEGO Group, said: “Our immediate priority is to meet our 2032 carbon reduction targets and we’re making progress across various initiatives. This new, long-term goal will ensure that the decisions we make today will reduce our carbon footprint over the coming decades. It will also encourage future generations of LEGO employees, partners and suppliers to continue working with a sense of urgency to reduce the environmental impact of our business.

“We know that children are looking to us to do what’s right. Caring for the environment is one of their top concerns and we receive hundreds of letters a year with great ideas from kids on how we can make a difference. They are holding us to account, and we must set ambitious goals and take meaningful and lasting actions to protect their futures.”

The Climate Transition Strategy

Over the next two years, the LEGO Group will collaborate with the SBTi to create the net-zero target while creating a climate transition strategy that shows a path to attaining the goal.

The LEGO Group intends to spend more than $1.4 billion on sustainability-related initiatives over the following three years, tripling its commitment to environmental sustainability, especially in areas that would assist in cutting GHG emissions.1

This includes:

  • Designing structures and locations to operate carbon neutrally. The highest environmental standards will be used to design and construct factories and structures. As an illustration, we are constructing two factories that, when finished, will run carbon neutrally and seek to achieve Gold LEED certification as the minimum level for all new factories and structures on our worldwide campus.
  • Expanding the capacity and output of renewable energy at our locations. By expanding the production of renewable energy in our factories and purchasing renewable energy for factories, offices, and stores, we will cut absolute emissions across our manufacturing, stores, and offices.
  • Incorporating CO2 emissions into all company decisions. A Carbon KPI linked to CEO compensation will be implemented starting in 2024, and responsible travel standards will be implemented to cut down on staff travel, particularly international air travel.
  • Collaborating with suppliers to jointly lessen the impact on the environment. Our supply chain accounts for 98% of our GHG emissions, originating outside of our activities. Through our long-running Engage-to-Reduce program, launched in 2014, we continue collaborating with our suppliers to reduce their combined environmental impact.

In addition to this effort, the corporation will keep funding worldwide carbon reduction projects even if they do not currently count toward meeting the SBTi-approved target. 

This includes investigating possible compensation measures, such as assisting carbon capture programs, to lessen dependency on fossil fuels as a raw material.

“Our first priority is to measurably reduce our carbon emissions, but the challenge is vast, and we are taking steps across all areas of our business to reduce our environmental impact,” said Christiansen.

References

  1. LEGO, ‘The LEGO Group pledges to achieve net-zero emissions by 2050’, 30 August 2023, https://www.lego.com/en-us/aboutus/news/2023/august/the-lego-group-pledges-to-achieve-net-zero-emissions-by-2050.[]
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