Lego announces plans to phase-out fossils in its bricks and move to 100% circular and renewable plastic 2032

This is some cool news!

Earlier this week, the toymaker giant said it's

"On track to replace the fossil fuels used in making its signature bricks with more expensive renewable and recycled plastic, as sales and profits surged."

The news was echoed across the media, here's one reference from CNN.

The announcement comes after H1 earnings report showed a growth in profits of 26%, with those profits jumping to € 1.1 billion.

This won't be a cheap move for Lego. The company estimates it may end up paying up to 70% more on raw materials by making all its products exclusively from certified circular and renewable plastic resins by 2032.

Lego fans can rest at ease. There's no need to worry, as the company says it will absorb the additional cost, so their customers are not negatively impact. Their hope is that the drive up in demand for these materials will push an increase in supply.

With industry giants in the chemical space significantly scaling up their investments in chemical recycling, I believe the bet on increase supply is a safe one.

What's the timeline for this target? ??

As of H1-2?? 0?? 2?? 4?? Lego claims to have used 30% of circular and renewable resins in their production.

The goal is to go beyond the 50% mark by the end of 2?? 0?? 2?? 6??

?? and cross the finish line with 100% circular & renewable plastic resins by 2?? 0?? 3?? 2??

And ambitious goal, but one that certainly aligns well with Europe's legally binding target of net zero greenhouse gas emissions by 2050.

My personal take

I’m fascinated by this news at both a professional and personal level.

As a thought leader in Green Supply Chain Management and a strong advocate for industrial decarbonisation and sustainable economics, this move from a household name like Lego is a big thing, and it will hopefully push others in the same direction.

But this hit me at a personal level too.

I grew up as a big fan of Legos. Of course, the Legos in my childhood were nothing like the super fancy stuff we see today, it was mostly cubic pieces of different colours, with maybe a cylinder or two!

That Lego obsession of mine went on to be transferred to my oldest nephew. He did get to have some of the fancy modern Legos (see the Picture above); and let’s be honest I also got to play with them as I “selflessly” helped my nephew build those.

However, as the family grew bigger, as did my conscience on plastic waste, my niece and younger nephews went on to receive less plastic Legos and more wooden toys. But I must admit I miss the creative thinking that a Lego set brings to a child’s playtime.

That’s why I’m super happy to see this shift. As a fan, I definitely don’t want Lego to go away. But I can’t, in good conscience, support businesses that aren’t actively decarbonising their products and supply chains. So these type of moves by industry leaders is a great first step to help us consumers make more sustainable decisions.

That said, while I’m excited about the news, the target along won’t make it for me. My consumer behaviour will only change if Lego can support these initiatives with evidence-backed data.

Keeping Lego honest

We need to keep companies honest. And we need to keep an eye out on their progress. Only through transparent and trusted disclosures can we guarantee that progress is being made.

For instance in this particular case, one of the first questions that pops to mind is, why not just change the raw material used?

Well, Lego claims to have tried that. They mention having tested over 600 different materials as potential replacement but concluded that the

“investment in new equipment and the additional steps involve, would ultimately lead to more planet-heating pollution than the status quo.”

Actually, this may very well be the case, when it comes to decarbonisation the simplest solution is unlikely to be the best approach. I’m quite pleased the business went on to measure what the entire environmental impact of a material shift would be, and didn’t simply made a quick shift to what at first glance may seem to be more sustainable.

I take this as a good sign in their commitment. But now, I expect to see more data!

I insist, evidence-backed data is the only thing that will prove their path to decarbonisation is more than a marketing campaign. I also want to see Lego take a more active role in auditing and overseeing the supply chain. They will be sourcing from certified suppliers, but certification alone is not enough, we’ve seen how certification have failed us in the past in other industries like textiles and minerals.

We need to see hard, verifiable, and trusted data to truly back up these claims.

Still, I definitely must say, congratulations to the Lego team for this announcement; and best of luck with the transition ahead!

I’ hope to keep seeing more and more organisations putting their profits to work for a more sustainable economic future and a competitive net zero industrial complex.