LEGO Group launches new supplier sustainability programme to reduce carbon emissions

More than 99% of the Group’s carbon emissions currently originate from outside its operations.

As part of the programme, suppliers will be required to provide data on the carbon footprint associated with the products and services purchased by the LEGO Group, while setting near-term targets for emission reductions related to product production by 2026 and further by 2028.

The suppliers must also collaborate with the LEGO Group to develop actions and initiatives to meet reduction goals, such as improving facility efficiency, switching to renewable energy, and finding less carbon-intensive transportation methods.

Suppliers are required to begin sharing reports in 2024, with annual reporting going forward.

This will help the toymaker to more accurately measure and rapidly reduce its Scope 3 (indirect) emissions.

LEGO Group’s chief sustainability officer Annette Stube said: “To put it simply, a net-zero world is simply not possible unless we find solutions that are greater than our own operations.

“We will not be able to meet our sustainability targets alone – we have to work in partnership with our suppliers. We want children to inherit a healthy planet and there’s no time to waste.”

The new programme builds on the Group’s previous Engage-to-Reduce programme introduced in 2014, which aimed to help suppliers report environmental data and reduce their carbon, water and forest impacts.

Currently, more than 99% of the Group’s carbon emissions originate from outside its operations, primarily from suppliers, that provide and deliver raw materials, machines, products and services related to LEGO products.

The company is committed to reducing greenhouse gas (GHG) emissions by 37% by 2032 from a 2019 baseline and achieving net-zero emissions by 2050.

LEGO Group’s climate action plan

The new programme forms part of the LEGO Group’s broader climate action plan, which also includes efforts to reduce greenhouse gas emissions from its own operations.

Since 2022, the company has increased its solar capacity by 16% and has plans to double it by 2026. Additionally, a new annual Carbon KPI has been introduced to measure emissions across the company’s factories, stores and offices to ensure short-term progress.

The LEGO Group has also increased its spending on environmental initiatives, with a 60% rise in 2023 compared to 2022, focusing on sustainable materials innovation, manufacturing technology and supply chain improvements.

The Group has this year added KPIs linked to carbon reductions to its entire salaried workforce globally. A portion of bonuses will be linked to Scope 1 and 2 emissions progress this year, with the hopes of adding a link to Scope 3 in the future.

LEGO Group’s chief operations officer Carsten Rasmussen said: “Sustainability is a license to operate and a requirement of how we do business, including how we select our suppliers.

“We have ideas and we have a pathway, but we cannot do it alone. We need all our great partners to help us achieve our sustainability targets.”

Related article: LEGO Group signs long-term deal for Climeworks’ direct air capture carbon removal technology

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