Lowering our Greenhouse gas (GHG) emissions and meeting our 2032 science-based target and 2050 net-zero pledge 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 GHG Emissions in our operations
We plan to make our operations in factories, offices and stores more efficient so that we use less energy and reduce our GHG emissions when producing 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 GHG emissions in our supply chain
Most of our GHG emissions can be found in our supply chain, which is why we also work with partners to help them reduce their emissions. This includes; but is not limited to; GHG emissions from suppliers that manufacture and deliver raw materials, make our machines and transport LEGO® sets around the world.
In 2014, we launched our Engage-to-Reduce programme where we work with our suppliers to minimise GHG emissions from our entire supply chain.
The programme 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 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.
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 GHG 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.
Reducing CO2 in our supply chain is also about finding more sustainable materials for our products and packaging, without compromising on quality or safety. This means we need to innovate existing materials that are safe and strong enough to be passed down through generations.
Over the last few years we’ve tested more than 300 different materials, including recycled plastic bottles, and bio-polyethylene (bio-PE) – a soft, durable and flexible plastic derived from certified Brazilian sugarcane, in our ambition to create new materials that are not only more sustainable, but that also reduce our carbon emissions.
We’re also significantly increasing investment in certified recycled and renewable raw materials using the mass-balance approach, as well as exploring plastics made from alternative sources such as e-methanol for plastic production.