How LEGO Group is Pushing its Suppliers to be Sustainable

The LEGO Group has brought in supplier sustainability targets
After tying sustainability performance to exec bonuses, the LEGO Group is attacking Scope 3 emissions by introducing carbon-cutting targets for suppliers

The LEGO Group has stepped up its sustainability efforts by introducing carbon-reduction targets for its suppliers to meet by 2026.

Scope 3 – emissions from the supply chain – typically contribute over 95% of companies’ emissions, but are much more difficult to drive down than Scope 1 and 2.

Part of the answer for LEGO is the new Supplier Sustainability Programme which outlines near-term targets to drive down carbon emissions in its supply chain.

The company is committed to reducing its emissions by 37% by 2032 and achieving net zero by 2050.

It said: “To achieve this requires that our suppliers take significant steps to reduce their own emissions.

“Over 99% 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.”

LEGO Group CSO Annette Stube

‘No time to waste’

Annette Stube, CSO 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.”

The announcement is a key part of the LEGO Group’s climate action plan.

The company is also working to reduce greenhouse gas emissions from its own operations.

It has increased solar capacity by 16% 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.

Youtube Placeholder

The supplier requirements

The Supplier Sustainability Programme follows LEGO Group’s 2014 Engage-to-Reduce programme, designed to help suppliers report environmental data and lower their carbon, water and forest impacts.

It outlines key requirements and actions, including:

  • Providing specific data on the amount of carbon associated with the products and services the LEGO Group purchases
  • 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.

Carsten Rasmussen, Chief Operations Officer at the LEGO Group

Sustainability a 'requirement of how we do business’

Carsten Rasmussen, Chief Operations Officer at the LEGO Group, made it clear that the company is determined to make the programme work.

He said: “Sustainability is a licence 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.”

He added: “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.”

A LEGO Group statement said: “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 added that there is “a team of sustainability experts” for suppliers to connect with as required.

The LEGO Group

LEGO setting the sustainability standard?

The LEGO Group has been making the headlines in recent months as it steps up its sustainability efforts.

The supplier targets come a few weeks after it announced it is tying its sustainability performance to its executive bonuses, in the sustainability team and beyond.

Announcing the move, Stuart Jefford, Head of Climate at The LEGO Group, said: “We have an ambitious target to reduce our emissions by 37% by 2032 and net zero by 2050.

“To help embed this across our business, I’m proud to say that we’ve now tied a percentage of colleague bonuses to our annual carbon emissions.

“There’s lots still to do, but this will help everyone to play their part.”

In April, LEGO committed US$2.4m to Climeworks’ permanent carbon removal services.

The agreement is in line with the LEGO Group’s plan to double annual spending on environmental initiatives by 2025, which has already increased by 60% from 2022 to 2023.

******

Make sure you check out the latest edition of Sustainability Magazine and also sign up to our global conference series - Sustainability LIVE 2024

******

Sustainability Magazine is a BizClik brand

******

Share

Featured Articles

Sustainability LIVE Gets Climate Week NYC Accreditation

Sustainability LIVE: Climate Week NYC is a groundbreaking ‘invitation only’ summit focused on sustainability, brand and business strategies

Sustainability LIVE Runner Up in Best New Event Award

Sustainability LIVE celebrates a landmark win with a Silver award for Best New Conference/Event with over 600 attendees at the Conference & Events Awards

Emissions up 13%: How Can Google Make AI & Data Sustainable?

Google calls for ‘systems-level’ change as it reports a 13% rise in its GHG emissions – driven by AI, data centre and supply chain energy consumption

ONE WEEK TO GO – Top 250 Companies in Sustainability 2024

Sustainability

Sustainability LIVE Heads to New York For Climate Week NYC

Sustainability

Boeing’s Sustainability Plan Helping Aviation Decarbonise

ESG