Lego is still on the path of sustainability: significant growth and green investments

By: Trademagazin Date: 2024. 09. 02. 11:30

The Lego company has achieved outstanding business results in the recent period, while the global toy market experienced a downturn. However, the Danish company is not only proud of its financial success, but also of its commitment to sustainability, as it has set itself the goal of producing all its products from renewable and recycled materials by 2032.

Lego has announced that they are well on their way to replacing the fossil fuels used to make their signature bricks with more expensive, renewable and recycled plastics. But this goal comes with serious challenges: the company has tested more than 600 different materials to find the ideal substitute, but so far with limited success. Lego is now working to gradually reduce the oil content of its bricks and is investing heavily in sourcing certified renewable resins.

In an interview with CNN, Lego CEO Neils Christiansen said that while the cost of oil-based plastics is currently lower, Lego is willing to pay more for sustainable materials without passing on the extra costs to customers. The company intends to increase the use of resin certified according to the mass balance method from the 30% achieved in the first half of 2024 to more than 50% by 2026. This method enables the tracking of sustainable materials through the supply chain.

Lego’s outstanding financial results are also noteworthy. In the first half of the year, the company’s profit rose 26% to 8.1 billion Danish kroner ($1.2 billion), while consumer sales rose 14%, significantly outperforming the overall performance of the gaming market. Christiansen singled out the brand’s product portfolio, which is attractive to people of all ages worldwide, as one of the keys to its success.