The LEGO Group is a very popular and famous family-owned company based in Billund, Denmark that manufactures Lego brand toys. This company was founded in 1932 by Ole Kirk Christiansen. In the first half of 2015, The Lego Group became the world’s largest toy company by revenue, with sales amounting to US$2.1 billion, surpassing Mattel, which had US$1.9 billion in sales.
Today, the world demands eco-friendly designs, constructions, processes, etc. As new products are developed, the toy maker is not far from this principle. It has to look for the means to apply eco-design principles more widely across the business. This could have implications for another focus area – the search for more sustainable materials, for example. The raw materials used by Lego for its bricks represent 30% of its greenhouse gas emissions and it is looking to implement greener alternatives by 2030.
With the attempt to positive impact on the environment, Lego must acknowledge and address the challenges of climate change. The company is committed to reduce its CO2 emissions and to work very close with suppliers in reducing theirs while aiming to produce more renewable energy to balance the company’s global energy use. Aspects considered by Lego are:
- To improve energy efficiency by reducing the amount of energy they use.
- To use a carbon neutral supply chain and work closely with their suppliers to find and co-create CO2 reduction initiatives.
- To be balanced by 100% renewable energy by 2020. The company invests in a wind farm to produce renewable energy to balance the energy they use to manufacture their Lego bricks.
This topic is part of the company’s objective to make a positive impact on the environment. Lego always tries to improve their energy efficiency. The company is aware of the vast improvement in their production facilities and found ways to reduce the amount of energy they use to produce Lego bricks. Lego’s initiatives may include upgrading their manufacturing equipment and cooling systems and making their construction, buildings and facilities more energy efficient.
Supply chain and the energy efficiency
Lego is always taking important actions in reducing carbon emissions. However, they also need to address the CO2 emissions, which are related to their raw materials and activities that originate in their supply chain.
Therefore, Lego works very close with their suppliers for a carbon neutral supply chain. Together with WWF, the company is stepping up all its efforts with suppliers to innovate solutions for reducing their CO2 emissions.
Sourcing renewable energy
The company is committed 100% in the use of renewable energy by 2020. To reach this target, KIRKBI A/S, which owns 75% of the LEGO Group, has invested in the construction of an offshore wind farm. Through KIRKBI A/S, the LEGO Group owns one third of the wind farm.
This Lego’s share of the wind farm is capable of producing enough electricity to meet the needs of approximately 100,000 households annually. The company will continue to explore and implement both on and off-site renewable power to meet our total global energy needs.