Climate action in action
Lowering our carbon emissions and meeting our science-based target means focusing on many different parts of our business. We are investing in activities that lower emissions we are directly and indirectly responsible for. By using our emissions data, we can make decisions that consider the environmental impact in our short- and long-term investments.
Reducing CO2 in our operations
We plan to make our operations in factories, offices and stores more efficient so that we use less energy, and release less CO2 emissions, to produce LEGO® bricks. The long-term aim is to run carbon-neutral operations.
In our factories
To reduce the environmental footprint from our factories, we are becoming more efficient by using as little energy as possible when we make and package LEGO bricks.
This means investing in new machinery, installing smart systems, changing lighting systems, and optimizing cooling and ventilation systems at our sites.
Adding more renewables
We are investing in renewable energy sources to power our factories, and we want to support the development of renewable energy in all regions where we operate.
In 2021, we installed 20,000+ solar panels at our factories in China, Hungary and Mexico. At our new factories in Vietnam and the United States, we will install solar panels on roofs and build solar parks with local partners.
Setting our standards high
When we plan and construct new buildings, we aim to meet high environmental building standards. For example, the new LEGO Campus in Billund has Gold-level LEED certification.
Our new factories in Vietnam and the US will be designed to have the lowest possible environmental footprint and be run carbon-neutral.
New decision-making tools
We are introducing new ways of working to help us make more sustainable investments. In 2022, we introduced a financial tool called a shadow carbon price, which will encourage more investments in low-carbon projects.
A shadow carbon price places a monetary value on carbon emissions linked to a project. By including it in our calculations, we can understand what the most sustainable options are.
Reducing CO2 in our supply chain
Most of our carbon emissions can be found in our supply chain, which is why we also work with partners to help them reduce their emissions. This includes emissions from suppliers that develop and deliver raw materials, make our machines and transport LEGO sets around the world.
Engage-to-Reduce program
In 2014, we launched our Engage-to-Reduce program where we work with our suppliers to minimize CO2 emissions from our entire supply chain.
The program has since grown significantly, and in 2022, we increased the number of suppliers asked to complete the CDP climate questionnaire by more than 60% to 138 of our most carbon-intensive suppliers.
We want to better understand the impact our supply chain has on the climate, as well as water and forests. The goal is to work more closely with these suppliers and ultimately lower the environmental impacts year on year.
Our Responsible Business Principles
Our aim is to make sure the rights and well-being of everyone involved in making LEGO products is safeguarded, and to protect the environment. We choose to work with suppliers that have similar ambitions and values.
We require partners to comply with our Responsible Business Principles that outline expectations relating to ethics, people, children and the environment.
Our intention is to build relationships with our partners, work together to solve challenges and identify opportunities such as improving the welfare of workers and their families, or improving environmental performance.
Choosing our suppliers
We are also changing the way we select and work with suppliers.
As we start making changes to how we make LEGO bricks and what materials we make them from, we need to ensure our partners can support us on this transition. We review social and environmental criteria when choosing new suppliers, including whether they monitor and report on their emissions.
To ensure that we are working towards the same goals as our suppliers, both new and old, we have also introduced sustainability into our supplier review process and require our highest-impact suppliers to participate in our Engage-to-Reduce program.
Finding new materials
Reducing CO2 in our supply chain is also about finding new, more sustainable materials for our products and packaging.
We must do so without compromising on quality or safety. This means we need to innovate existing materials or develop entirely new materials that are safe and strong enough to be passed down through generations.
In 2021, the LEGO Group unveiled a prototype LEGO brick made from recycled PET plastic, the latest step in our journey to make LEGO products from more sustainable materials. We also have around 150 botanical elements and LEGO minifigure accessories that are made from a plant-based plastic. Around 50% of LEGO sets contain at least one of these plant-based elements.
