The Lego Group will triple its sustainability investments over the next three years, spending $1.4 billion to design carbon-neutral buildings and facilities and boost production of renewable energy at its sites. These plans are part of the brand’s near-term climate target of reducing greenhouse gas (GHG) emissions 37% by 2032 compared to a 2019 base figure. They also figure into its goal of achieving net-zero GHG emissions by 2050.
“Our immediate priority is to meet our 2032 carbon reduction targets, and we’re making progress across a range of initiatives,” said Niels Christiansen, CEO of The Lego Group in a statement. “This new, long-term goal will ensure that the decisions we make today will reduce our carbon footprint over the coming decades.
“We know that children are looking to us to do what’s right,” Christiansen added. “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.”
Lego is working with the Science Based Targets initiative (SBTi) to develop the near-term goals, which will cover Scope 1, 2 and 3 emissions. Scope 1 emissions come directly from Lego factories, offices, stores and vehicles; Scope 2 are indirect emissions generated from the energy purchased to power Lego facilities; and Scope 3 emissions come from Lego’s supply chain.
The brand is currently building two factories that are designed to be carbon neutral once they are completed, with the goal of securing Gold LEED certification as the baseline standard for all new factories and buildings.
Other near-term sustainability activities include taking CO2 emissions into account across all business decisions, including using Shadow Carbon Pricing, which creates a theoretical cost per ton of carbon emissions, on key investments. Lego also will institute a Carbon KPI that will be tied to executive remuneration from 2024 on, along with responsible travel policies to reduce the amount of employee travel, particularly international air travel.
Lego also plans to work with its suppliers to collectively reduce environmental impacts, noting that 98% of GHG emissions come from outside its operations. Lego plans to continue working with suppliers via its Engage-to-Reduce program, established in 2014, to cut emissions.
