Sofia Martinez
Lego has built a reputation for the durability of its bricks, which are designed to last for decades. However, the plastic bricks are currently made from an oil-based material called ABS, which is neither biodegradable nor easily recycled. In 2023, Lego abandoned its plans to make bricks from recycled plastic bottles after finding that the process would lead to higher carbon emissions. Despite this setback, Lego remains committed to sustainability and has invested over $1.2 billion in sustainability initiatives. The company is now testing alternative materials, including recycled plastic and e-methanol, with the goal of making all of its products from renewable and recycled materials by 2032.
| Characteristics | Values |
|---|---|
| Current material used in Lego bricks | Oil-based plastic called ABS |
| Current environmental impact of Lego bricks | Not biodegradable and not easily recycled |
| Lego's commitment | To make all products from renewable and recycled materials by 2032 |
| Lego's prototype brick | Made from PET plastic bottles |
| Reason for abandoning the use of recycled plastic bottles | Higher carbon emissions and higher cost |
| Lego's current plan | Pay up to 70% more for certified renewable resin to encourage manufacturers to boost production of more sustainable raw materials |
| Percentage of renewable and recycled materials used in Lego bricks in 2024 | 22% |
| Percentage of renewable and recycled materials used in Lego bricks in 2023 | 12% |
| Percentage of renewable and recycled materials used in Lego bricks targeted for 2026 | 50% |
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What You'll Learn
Lego's commitment to sustainability
Lego has long been committed to sustainability and has built a reputation for the durability of its bricks, which are designed to last for decades. In 2021, the company created a prototype brick made from PET plastic bottles, but after two years of testing, it did not deliver the required carbon reduction. Despite this setback, Lego remains committed to finding sustainable alternatives to its current fossil fuel-based materials. The company has invested more than $1.2 billion in sustainability initiatives and aims to remove fossil fuels from its bricks by 2032.
Lego's sustainability initiatives extend beyond the materials used in its bricks. The company has also made efforts to reduce its supply chain emissions, which account for 98% of its total carbon emissions. By focusing on scope 3 emissions, Lego is taking a comprehensive approach to sustainability, considering the entire life cycle of its products, from manufacturing to consumer use and disposal. This holistic approach demonstrates Lego's commitment to reducing its environmental impact at every stage of its operations.
In addition to its own initiatives, Lego is also contributing to a larger trend toward developing sustainable solutions for entire supply chains. The company's efforts to reduce carbon emissions and increase the use of renewable and recycled materials are in line with new regulations in the European Union and expected changes in California. Lego's commitment to sustainability is not just about its own operations but also about driving industry-wide change and encouraging the production of more sustainable raw materials.
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Lego's current bricks
Lego bricks are currently made from an oil-based material called acrylonitrile butadiene styrene (ABS). This plastic is favoured for its durability, ensuring the bricks last for decades, but it is not biodegradable and is difficult to recycle.
In 2023, Lego abandoned its highly publicised "Bottles to Bricks" initiative, which aimed to create bricks from recycled plastic bottles. Despite investing over $1.2 billion in sustainability initiatives, the company found that using recycled plastic would require extra materials and energy to ensure the bricks were durable enough, resulting in higher carbon emissions.
Lego has since shifted its focus to alternative sustainable materials, including e-methanol, bio-polypropylene, and certified renewable resin. The company is committed to reducing its environmental impact and has set a deadline of 2032 to make all its products from renewable and recycled materials.
In the meantime, Lego is taking steps to gradually reduce the oil content in its bricks. The company plans to pay up to 70% more for certified renewable resin, the raw plastic used to manufacture the bricks, to encourage manufacturers to increase the production of more sustainable raw materials. This strategy, known as mass balance, involves mixing virgin fossil sources with certified renewable sources, such as used cooking oil or plant oil.
Lego's efforts to improve sustainability are aligned with increasing consumer demand for environmentally friendly products and new regulations promoting circular economy practices. Despite the challenges, Lego is dedicated to finding solutions that reduce their carbon footprint without compromising the quality and durability that Lego bricks are known for.
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Lego's prototype brick
Lego bricks are currently made from a plastic called ABS, which is derived from oil-based materials and is neither biodegradable nor easily recycled. However, Lego has expressed its commitment to sustainability and plans to remove fossil fuels from its bricks by 2032.
In June 2021, Lego unveiled a prototype brick made from recycled plastic, specifically PET plastic sourced from discarded bottles. This prototype was the result of rigorous testing by a team of over 150 people, including materials scientists and engineers, who tested over 250 variations of PET materials and hundreds of other plastic formulations. The prototype met several of Lego's quality, safety, and play requirements, including clutch power.
The recycled PET prototype was created using a bespoke compounding technology that combines recycled PET with strengthening additives. On average, a one-litre plastic PET bottle provides enough raw material for ten 2 x 4 Lego bricks. This prototype marked a significant step towards Lego's goal of making all its products from sustainable materials by 2030.
However, in September 2023, Lego announced that it would not be progressing with the PET prototype as it did not deliver the desired carbon reduction. The company found that the process of converting recycled plastic bottles into Lego bricks resulted in higher carbon emissions than their current fossil fuel-based materials. Despite this setback, Lego remains committed to finding sustainable solutions and has invested significantly in sustainability initiatives. They are currently testing and developing bricks made from a range of alternative sustainable materials, including other recycled plastics and plastics made from alternative sources such as e-methanol.
In addition to its efforts with recycled plastic, Lego has also been working with bio-polyethylene (bio-PE) since 2018. Bio-PE is made from sustainably sourced sugarcane and is suitable for creating smaller, softer pieces such as trees, branches, and accessories for minifigures. While bio-PE is not currently suitable for the harder, stronger Lego bricks, the company continues to explore ways to innovate and create more sustainable materials.
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Lego's future plans
Lego has built a reputation not only for the durability of its bricks but also for its substantial investment in sustainability. The company has set 2032 as its target date to reach a goal of using entirely renewable and recycled materials. Lego's future plans include increasing the certified renewable or recycled materials that go into its bricks in an effort to reduce its reliance on fossil fuels. The company has tested over 600 different materials over the last eight years in an effort to make the bricks more sustainable.
Lego's plastic producers are replacing virgin fossil fuels with alternatives such as cooking oil, food industry waste fat, and recycled materials. The company uses a production method to manufacture its bricks known as "mass balance," which involves mixing virgin fossil fuels with renewable materials, like cooking or plant oils. Lego plans to make half the plastic in its bricks from renewable or recycled material rather than fossil fuels by 2026.
In 2021, Lego created a prototype brick made from PET plastic bottles. However, after two years of continuous development, it did not deliver the overall carbon reduction required. Lego has abandoned plans to make recycled plastic bricks after finding that producing bricks with the recycled plastic would require extra materials and energy to make them durable enough, which would result in higher carbon emissions.
Lego has invested more than $1.2 billion in sustainability initiatives as part of its efforts to transition to more sustainable materials and reduce carbon emissions by 37%. The company has pledged to triple spending on sustainability to 3 billion Danish kroner (£340 million) a year by 2025, while promising not to pass on higher costs to consumers. Lego sees its core customers as children and their parents, and sustainability is fundamentally about ensuring that future generations inherit a hospitable planet.
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Lego's sales and profits
Lego, the world's largest toy manufacturer, has built a reputation for the durability of its bricks, which are designed to last for decades. The company has also invested substantially in sustainability initiatives. In 2021, Lego created a prototype brick made from PET plastic bottles. However, after two years of development, the prototype did not achieve the desired carbon reduction, and the project was scrapped in 2023. Despite this setback, Lego remains committed to removing fossil fuels from its bricks by 2032 and has already made progress, with 22% of the plastic used in the first half of 2024 coming from renewable and recycled sources.
Lego's commitment to sustainability has not hindered its financial performance. The company's revenue has skyrocketed in recent years, with its turnover doubling since 2014. In 2023, Lego's revenue was almost $10 billion, solidifying its position as one of the top toy companies globally. The company's gross profit in 2023 was DKK 44.86 billion (USD 6.44 billion), a slight increase from the previous year's figure of DKK 44.49 billion (USD 6.38 billion). In Q1 2024, Lego reported a gross profit of USD 4.3 billion, demonstrating continued strong financial performance, with revenue reaching nearly 14.8 billion Danish kroner (approximately USD 2.2 billion).
Lego's robust financial performance can be attributed to its diverse product offerings and global reach. The company distributes video games and online games in addition to its iconic brick toys. Lego also co-owns a chain of 10 Lego-themed parks worldwide through a partnership. During the COVID-19 lockdowns in 2021, Lego experienced a surge in sales as families turned to its plastic bricks for entertainment.
Lego's workforce has expanded significantly to meet the increasing demand for its products. In 2023, the company employed over 25,000 full-time staff members worldwide, a notable increase from the previous years. By 2024, Lego's global workforce had grown to over 29,000 full-time employees. The company's commitment to sustainability, coupled with its strong financial performance and expanding operations, positions it for continued success in the years to come.
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Frequently asked questions
No, Lego bricks are currently made from an oil-based material called ABS, which isn't biodegradable and isn't easily recycled. Lego has, however, stated that it is on track to replace the fossil fuels used in making its signature bricks with renewable and recycled plastic by 2032.
Yes, Lego has always been made from plastic. However, Lego has been trying to make the plastic more sustainable. In 2021, Lego created a prototype brick made from PET plastic bottles.
Lego initially planned to make its bricks from recycled plastic bottles. However, after two years of testing, the company found that producing bricks with the recycled plastic would require extra materials and energy to make them durable, which would result in higher carbon emissions.
Lego is currently testing and developing Lego bricks made from a range of alternative sustainable materials, including other recycled plastics and plastics made from alternative sources such as e-methanol. Lego is also paying up to 70% more for certified renewable resin to encourage manufacturers to increase the production of more sustainable raw materials.
Yes, rival toymaker Hasbro has started including plant-based or recycled materials in some toys. Mattel plans to use only recycled, recyclable or bio-based plastics in all products by 2030.
