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HomeBusinessWhy Lego's Commitment to Sustainability Means Higher Costs Without Price Hikes for...

Why Lego’s Commitment to Sustainability Means Higher Costs Without Price Hikes for Consumers

 

Lego is making strides toward sustainability; costs will rise, but customer prices will remain stable, the company assures. Here’s the reasoning.


Amid rising concerns over plastic usage worldwide, Lego is taking crucial steps to reduce dependency on new fossil fuels.

Lego aims to create a more eco-friendly future by switching to sustainable materials for its plastic bricks by 2026, as noted in a recent press release.

 

The company plans to source 50% of its plastic from recycled or renewable materials within the next two years. This initiative has been in development for eight years, focusing on producing bricks that do not rely on new fossil fuels.

Currently, around 30% of a single colorful brick is produced with resin certified through a mass balance approach, which means that approximately 22% of the material in a Lego brick comes from renewable or recycled sources, according to its press release.

“With this effort, we aim to expedite the industry’s shift towards sustainable, high-caliber materials,” the press release highlighted.

 

Since 2023, the proportion of resin used in brick production has nearly doubled. Last year, only 18% of the resin was derived from sustainable sources, equating to 12% of the total material.

The mass balance method combines both virgin fossil and renewable or recycled resources, including materials like used cooking oil or plant oils, as explained on Lego’s website.

 

Increased Material Costs Won’t Affect Lego Prices

 

To meet its eco-friendly objectives and decrease fossil fuel usage in its bricks, Lego will incur a 70% increase in costs for sourcing certified renewable resin.

However, the company will bear these costs and will not raise prices for consumers; sets will remain priced as they are despite the material changes.

 

“Blessed with a family-owned commitment to sustainability, we can invest in raw materials without passing on those costs to our customers,” stated Lego CEO Niels Christiansen in an interview with Reuters.

This initiative is part of Lego’s strategy to support the industry’s movement towards more sustainable, high-quality materials.

 

The company has also begun utilizing arMABS, a material made from recycled artificial marble, as mentioned in a Lego news release from March. This substance, often used in kitchen countertops, will be included in 500 different Lego pieces by 2024.

 

Testing Over 600 Materials

Lego, which produces billions of bricks annually, has explored over 600 different materials in its quest to develop a new medium to eventually replace its oil-based bricks by 2032, according to reports from Reuters.

 

Even though the ideal material hasn’t been found yet, the company has identified options that are unsuitable.

In 2023, Lego decided against using a specific recycled plastic called polyethylene terephthalate (RPET) after determining it would increase carbon emissions.

 

Investing in Future Sustainable Practices

Plastic is projected to drive a rise in oil demand in the coming years, according to Reuters.

 

Annually, roughly 460 million metric tons of plastic are produced, with an additional 20 million metric tons discarded, polluting the environment, according to the International Union for Conservation of Nature. This figure is expected to rise significantly by 2040.

Lego’s initiative to find a plastic alternative addresses growing concerns regarding plastic waste and microplastics.

 

The company’s suppliers incorporate cooking oil, waste fat from the food industry, and recycled materials to reduce the use of newly sourced fossil fuels in plastic production.

Lego is also focused on decreasing its greenhouse gas emissions through its new Supplier Sustainability Program, as detailed in their press release.

This program enforces targets for suppliers to reduce emissions by 2026, with further reductions aimed by 2028, according to the announcement.

Contributing: Reuters