The LEGO Group announced today the launch of a new Supplier Sustainability Programme, aimed at increasing its collaboration with suppliers on reaching its climate goals, and outlining a new set of actions and requirements for suppliers, including setting and reporting on emissions reduction targets.
According to the company, the new program forms a key part of the LEGO Group’s climate action plan. The company announced a series of climate-related commitments last year, including a pledge to achieve net zero emissions by 2050, and has also committed to an interim target to reduce emissions by 37% by 2032.
Scope 3, or value chain, emissions account for the vast majority of the company’s climate footprint, with more than 99% of LEGO Group’s carbon emissions originating from outside its own operations, primarily from suppliers that provide and deliver raw materials, machines, products, and services related to its products.
These value chain emissions are typically the most difficult to address, however. LEGO Group announced last year, for example, that it had dropped its plans to produce bricks from rPET plastics from recycled bottles, one of its key projects aimed at shifting away from fossil-based plastics and reducing its carbon footprint.
LEGO Group announced earlier this year that it will begin tying a portion of bonuses for all salaried employees to emissions reduction goals starting this year using a new KPI measuring carbon from its factories, stores and offices, as well as its Scope 3 business travel emissions, and that it aims to expand the KPI to cover more Scope 3 emissions.
The company said that the new program is being launched “in recognition of the critical role that suppliers play in helping achieve its targets.”
Annette Stube, Chief Sustainability Officer at the LEGO Group said:
“To put it simply, 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.”
Key actions included in the new program include reporting requirements on the amount of carbon associated with the products and services purchased by LEGO Group, with annual reporting beginning in 2024. The company will also ask suppliers for near-term targets showing emission savings related to production of purchased products by 2026, and further by 2028. Additionally, the program will include collaboration to identify and develop actions for suppliers to take to meet LEGO Group’s emissions reduction goals, in areas including improving the efficiency of facilities, switching to renewable energy sources, and finding less carbon-intensive ways to transport materials.
The company added that it will share knowledge with suppliers to help them achieve their goals, initially focused on carbon accounting, and that it has a team of sustainability experts that its suppliers can connect with as required.
Carsten Rasmussen, Chief Operations Officer at the LEGO Group said:
“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.”