Despite having yearly revenues of just over $2 billion in 2022, Lego has committed US$1.4 billion to reducing carbon emissions by 2025. However, they are going to have to move in a different direction. On September 25, 2023, it was announced in the Financial Times that Lego had terminated its “Bottles to Bricks” program. Why did the corporation decide to go through with such a procedure, and what should come next?
Lego, the largest toy maker in the world, has developed a reputation not just for the long-lasting nature of its bricks, which are meant to endure for decades, but also for its significant investment in sustainability. So, where do we stand now?
After conducting an analysis to determine how the project would affect the environment across Lego’s supply chain, the company discovered that manufacturing bricks out of recycled plastic would demand additional resources and energy in order to ensure that the bricks would be sufficiently robust. As a consequence of this, the firm has made the decision to maintain its present materials that are based on fossil fuels while continuing to look for alternatives that are more environmentally friendly.
In order to get a complete picture of a company’s carbon footprint, it is necessary to consider the following three categories of emissions: Emissions of a company’s Scope 1 are those that are produced directly by its internal operations. The production of the energy, heat, cooling, or steam that a firm uses results in emissions that fall within the Scope 2 category. And last, scope 3 emissions are those that are produced by an organization’s supply chain, which includes everyone from initial vendors to downstream distributors and, ultimately, customers.
The majority of businesses are not well equipped for the challenging ESG landscape, and the Lego case offers an important lesson in this regard. It is possible that the number of cases in which legitimate initiatives to promote sustainability run against unsettling facts will increase as the number of enterprises that are being scrutinized for their total carbon footprint increases.
Tiesha loves to share her passion for everything that’s beautiful in this world. Apart from writing on her beauty blog and running her own beauty channel on Youtube, she also enjoys traveling and photography. Tiesha covers various stories on the website.