The LEGO Group calls on suppliers to drive towards net-zero targets

To drive down carbon emissions in its supply chain the LEGO Group today launched a new Supplier Sustainability Programme in recognition of the critical role that suppliers play in helping achieve its targets. 

Commited to reducing emissions

The company is committed to reducing its emissions by 37 percent by 2032 and achieving net-zero by 2050. To achieve this requires that its suppliers take significant steps to reduce their own emissions. Over 99 percent of the LEGO Group’s total carbon emissions come from outside its own operations, largely from suppliers that provide and deliver raw materials, machines, products, and services related to LEGO products.

Climate action plan

The announcement is a key part of the LEGO Group’s climate action plan. The company is also working with urgency to measurably reduce greenhouse gas (GHG) emissions from its own operations, which requires that it reduces energy consumption and accelerates transition to renewable energy. Examples include increasing solar capacity by 16 percent versus 2022, with plans to double it by 2026. This year the company also introduced an annual Carbon KPI, which measures emissions across factories, stores and offices to help ensure short-term progress.

Key requirements to the suppliers

The Supplier Sustainability Programme builds on the Engage-to-Reduce programme the LEGO Group launched in 2014 to help suppliers report environmental data and lower their carbon, water and forest impacts.

It outlines key requirements and actions that suppliers need to take including:

• Providing specific data on the amount of carbon associated with the products and services the LEGO Group purchases.
• Asking suppliers for near term targets showing emission savings related to production of these products by 2026, and further by 2028.
• Collaborating to identify and develop the actions and initiatives suppliers need to take in order to meet the reduction goals set by the LEGO Group. This includes improving the efficiency of their facilities to use less resources, switching to renewable energy sources wherever possible, or finding less carbon-intensive ways to transport materials.

Suppliers will need to share reports starting in 2024, and this will be an annual requirement going forward.

Sharing knowledge

The LEGO Group is focused on capability building and will be sharing knowledge and learning with suppliers, initially focusing on carbon accounting, to help them achieve targets. It also has a team of sustainability experts that its suppliers can connect with as required. The company introduced the new Supplier Sustainability Programme at a recent Supplier Summit to inform and engage suppliers across all procurement categories who are the largest contributors to its Scope 3 carbon emissions.

The LEGO Group continues to work with urgency to reduce emissions. It has increased spending on environmental initiatives by 60 percent in 2023 compared to 2022, including making significant investments in sustainable materials innovation, manufacturing technology and its supply chain.

Source: https://www.lego.com/en-us/aboutus/news/2024/july/net-zero-suppliers