In a significant move towards sustainability, Lego has announced its plan to make half of the plastic used in its iconic bricks from renewable or recycled materials by 2026. The Danish toymaker is striving to reduce its reliance on fossil fuels and has set an ambitious target to completely switch to renewable and recycled plastic by 2032.
Lego’s commitment to environmental responsibility has led the company to test over 600 alternative materials in its quest for greener options. The transition to sustainable materials comes at a cost, with Lego willing to pay up to 70 percent more for certified renewable resin to encourage manufacturers to increase production.
Currently, only 22 percent of the material in Lego bricks is not derived from fossil fuels. The company’s plastic producers are experimenting with alternatives such as cooking oil, food industry waste fat, and recycled materials. However, the market for these sustainable options is still developing, resulting in costs that can be two to three times higher than traditional materials.
Niels Christiansen, Lego’s chief executive, acknowledged that the shift towards more sustainable materials would significantly increase production costs. Despite this, the company has pledged to absorb the extra expenses, amounting to 3 billion Danish kroner (£340 million) annually by 2025, without passing the costs on to consumers.
Lego’s investment in sustainable materials is aimed at driving industry development and shifting the supply chain by increasing demand for eco-friendly options. The company hopes that this will eventually lead to the development of new or more affordable materials, helping Lego achieve its 2032 sustainability target.
In addition to its material innovations, Lego has expanded its brick takeback programme, Replay, to the UK, allowing consumers to donate old bricks to the company through free shipping. The company continues to test similar models in the US and Europe.
Despite the challenges posed by the toy market, which experienced its worst performance in 15 years with a 7 percent decline last year, Lego reported a 13 percent rise in sales to 31 billion kroner in the first half of 2023. The company’s strong performance was attributed to the launch of approximately 300 new sets within top-performing ranges, including the icons sets, Technics, Star Wars, and Harry Potter toys.
Lego’s botanical collection has also played a significant role in increasing the brand’s appeal among adult women, who are now bigger advocates for the brand. As Lego continues to outperform the wider market, Christiansen expressed confidence in the company’s ability to maintain its momentum and bring learning through play to even more children worldwide.
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