LEGO Targets Carbon Reduction in Supplier Operations

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In a bid to drive down carbon emissions within its supply chain, the LEGO Group has introduced a new Supplier Sustainability Program, acknowledging the pivotal role suppliers play in meeting its environmental targets. The company aims to cut its emissions by 37 percent by 2032 and achieve net-zero emissions by 2050, necessitating substantial emission reductions from its suppliers.

Emissions from External Operations

Almost 100% of the LEGO Group’s total carbon emissions are sourced from outside its direct operations, predominantly from suppliers who deliver raw materials, machinery, products, and services essential for LEGO products.

Annette Stube, Chief Sustainability Officer at the LEGO Group, emphasized the importance of collective effort, stating: “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.”

This announcement is a critical component of the LEGO Group’s broader climate action strategy. The company is also actively reducing greenhouse gas (GHG) emissions within its own operations, focusing on decreasing energy consumption and expediting the transition to renewable energy. Notable initiatives include a 16 percent increase in solar capacity from 2022 levels, with plans to double this capacity by 2026. Additionally, the company has introduced an annual Carbon KPI to track emissions across its factories, stores, and offices, ensuring short-term progress.

Carsten Rasmussen, Chief Operations Officer at the LEGO Group, reiterated the necessity of sustainability in business operations, stating: “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.”

Key Requirements for Suppliers

The Supplier Sustainability Program enhances the existing Engage-to-Reduce initiative, launched in 2014 to assist suppliers in reporting environmental data and reducing their carbon, water, and forest impacts. Key actions for suppliers include:

  • Providing specific data on the carbon footprint associated with products and services purchased by the LEGO Group.
  • Setting near-term emission reduction targets for product production by 2026 and further reductions by 2028.
  • Collaborating with the LEGO Group to identify and implement actions needed to meet these reduction goals, such as improving facility efficiency, transitioning to renewable energy, and adopting less carbon-intensive transportation methods.

Starting in 2024, suppliers will be required to submit annual reports detailing their progress. The LEGO Group is committed to capability building, sharing knowledge and expertise with suppliers to help them achieve their targets. Initially, this will focus on carbon accounting, supported by a dedicated team of sustainability experts available to assist suppliers as needed. The new Supplier Sustainability Program was introduced at a recent Supplier Summit, engaging suppliers across all procurement categories that significantly contribute to the company's Scope 3 carbon emissions.

Environment + Energy Leader