As a bringer of small plastic bricks into this world, Lego Group, as many retailers do, has a challenging task talking about sustainability – but this week it launched a supplier sustainability programme to help ramp up its efforts to make a difference environmentally.
The new supplier sustainability programme outlines near-term targets those in the Lego value chain need to meet by 2026, as the Denmark-based brand looks to meet its targets of reducing carbon emissions by 37% by 2032 and achieving net-zero by 2050.
With more than 99% of the Lego Group’s total carbon emissions estimated to come from outside its own operations, largely from suppliers that provide and deliver raw materials, machines, products, and services related to Lego’s products, the new initiative is vital in helping the brand move forward from an environmental, social, and governance perspective.
Annette Stube, chief sustainability officer at the Lego Group, commented: “To put it simply, a net-zero world is simply not possible unless we find solutions that are greater than our own operations.
In its own operations, Lego needs to reduce energy consumption and accelerate its transition to renewable energy – for example by increasing solar capacity by 16% versus 2022, and with plans to double it by 2026 – but the major emission reduction achievements will only come by working with suppliers.
Carsten Rasmussen, chief operations officer at the Lego Group, remarked: “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.”
The new programme outlines key requirements and actions suppliers need to take to reduce their emissions, including providing specific data on the amount of carbon associated with the products and services Lego purchases from them and setting near-term targets showing production-related emission savings by 2026, and further by 2028.
Lego also wants its suppliers to improve the efficiency of their facilities to use fewer resources, switch to renewable energy sources wherever possible, and find less carbon-intensive ways to transport materials.
According to the Lego supplier sustainability programme, suppliers will need to share reports starting in 2024, and this will be an annual requirement going forward.
In addition, Lego said it is focused on sharing knowledge and learning with suppliers, initially focusing on carbon accounting, which it said will help those it works with achieve environmental targets. Lego also has a team of sustainability experts it has suggested will be available to connect with suppliers as required.
Elsewhere, Lego said it has increased spending on environmental initiatives by 60% in 2023 compared to 2022, which has included making significant investments in materials innovation, manufacturing technology, and the wider supply chain.
This year, Lego has also introduced an annual “Carbon KPI”, which it said measures emissions across factories, stores, and offices to help ensure short-term progress towards its environmental goals.
[main image credit: Green Retail World]
