LEGO sets net-zero target and pledges $1.4bn in sustainability investments

Pictured: The LEGO House, Denmark

The firm has officially conveyed its commitment to the Science Based Target initiative (SBTi) and is set to collaborate with the SBTi in developing a target that encompasses emissions across all scopes. These targets will be aligned with the SBTi’s Net-Zero Standard.

These new targets will feed into a new climate transition plan, to be published within two years.

This commitment expands on the brand’s current short-term climate goal of reducing GHG emissions by 37% by 2032 from a 2019 baseline, a goal that was previously endorsed by the SBTi.

The LEGO Group’s chief executive officer Niels B Christiansen said: “Our immediate priority is to meet our 2032 carbon reduction targets and we’re making progress across a range of initiatives.

“This new, long-term goal will ensure that the decisions we make today will reduce our carbon footprint over the coming decades.”

The LEGO Group aims to triple its investment in environmental sustainability within the next three years, with a focus on curbing GHG emissions.

The investment plan will involve creating carbon-neutral buildings and sites, including two factories designed for carbon-neutral operation, and seeking Gold LEED certification as a standard for new structures.

Additionally, renewable energy production will be expanded across sites to decrease absolute emissions in manufacturing, stores and offices, involving both increased energy output from factories and procuring renewable energy.

Carbon emissions will factor into all business decisions. The LEGO Group will start incorporating shadow carbon pricing for key investments and a carbon key performance indicator (KPI) tied to executive remuneration from 2024. Responsible travel policies will also be adopted.

Supply chain focus

Supply chain operations contribute to 98% of LEGO’s GHG emissions. The company will continue to work with its suppliers, via its Engage-to-Reduce programme, to collectively lower the supply chain’s impact on environment.

The brand will further invest in global carbon reduction initiatives, including potential support for carbon capture programs and scaling a mass balance approach to diminish reliance on fossil fuels as raw materials.

Christiansen added: “Our first priority is to measurably reduce our carbon emissions, but the challenge is vast, and we are taking steps across all areas of our business to reduce our environmental impact.”