The LEGO Group announced that it will begin tying a portion of bonuses for all salaried employees to emissions reduction goals starting this year, as part of the company’s strategy to meet its climate targets.

The announcement follows the launch by the LEGO Group last year of a series of climate-related commitments, including a pledge to achieve net zero emissions by 2050, to work with the Science Based Targets initiative (SBTi) to develop emissions reduction targets covering Scope 1 and 2 emissions, as well as Scope 3 supply chain emissions, and to invest over $1.4 billion in environmental sustainability initiatives over the next three years. The company also pledged at the time to add a carbon KPI to executive remuneration in 2024, as well as to pursue responsible travel policies to reduce employee travel, with a particular focus on international air travel.

Under the company’s updated performance management programme, LEGO Group introduced a new KPI measuring carbon from its factories, stores and offices, as well as its Scope 3 business travel emissions. The emissions are measured against the number of bricks manufactured, to provide an intensity metric.

The company said that it aims to expand the KPI to cover Scope 3 emissions. Scope 3 emissions, or those originating in the value chain outside of the company’s direct control, account for approximately 98% of the LEGO Group’s carbon footprint.

In a social media post announcing the new KPI, LEGO Group said:

“We have an ambitious target to reduce our emissions by 37% by 2032 and achieve net zero by 2050.

“To help keep us on track, from 2024, a percentage of our performance management programme for colleague bonuses will be tied to annual emissions as we take steps to reduce environmental impact across all areas of our business.”