Driving Towards Net-Zero At The LEGO Group

With 99 percent of carbon emissions coming from outside the company’s operations, the LEGO Group’s suppliers play a key role in achieving sustainability targets. The new Supplier Sustainability Programme outlines near term targets suppliers need to meet by 2026.

To drive down carbon emissions in its supply chain the LEGO Group launched a new Supplier Sustainability Programme in recognition of the critical role that suppliers play in helping achieve its targets. The company is committed to reducing its emissions by 37 percent by 2032 and achieving net-zero by 2050. To achieve this requires that its suppliers take significant steps to reduce their own emissions.

Over 99 percent of the LEGO Group’s total carbon emissions come from outside its own operations, largely from suppliers that provide and deliver raw materials, machines, products, and services related to LEGO® products.

Annette Stube, Chief Sustainability Officer at the LEGO Group 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 announcement is a key part of the LEGO Group’s climate action plan. The company is also working with urgency to measurably reduce greenhouse gas (GHG) emissions from its own operations, which requires that it reduces energy consumption and accelerates transition to renewable energy. Examples include increasing solar capacity by 16 percent versus 2022, with plans to double it by 2026. This year the company also introduced an annual Carbon KPI, which measures emissions across factories, stores and offices to help ensure short-term progress.

Carsten Rasmussen, Chief Operations Officer at the LEGO Group adds:

“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. The Supplier Sustainability Programme is founded on collaboration and we cannot underestimate the power of working together to create real, lasting change and a more sustainable future.”

Key requirements to the suppliers:

The Supplier Sustainability Programme builds on the Engage-to-Reduce programme the LEGO Group launched in 2014 to help suppliers report environmental data and lower their carbon, water and forest impacts.

It outlines key requirements and actions that suppliers need to take including:

• Providing specific data on the amount of carbon associated with the products and services the LEGO Group purchases.

• Asking suppliers for near term targets showing emission savings related to production of these products by 2026, and further by 2028.

• Collaborating to identify and develop the actions and initiatives suppliers need to take in order to meet the reduction goals set by the LEGO Group. This includes improving the efficiency of their facilities to use less resources, switching to renewable energy sources wherever possible, or finding less carbon-intensive ways to transport materials.

• Suppliers will need to share reports starting in 2024, and this will be an annual requirement going forward.

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The LEGO Group is focused on capability building and will be sharing knowledge and learning with suppliers, initially focusing on carbon accounting, to help them achieve targets. It also has a team of sustainability experts that its suppliers can connect with as required.

The company introduced the new Supplier Sustainability Programme at a recent Supplier Summit to inform and engage suppliers across all procurement categories who are the largest contributors to its Scope 3 carbon emissions.

The LEGO Group continues to work with urgency to reduce emissions. It has increased spending on environmental initiatives by 60 percent in 2023 compared to 2022, including making significant investments in sustainable materials innovation, manufacturing technology and its supply chain.