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Lego advances sustainability with reduced reliance on oil

Caspar Frey by Caspar Frey
August 29, 2024
in Business
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Lego is making significant progress toward more sustainable production. According to Lego CEO Niels B. Christiansen, 22 percent of the Lego bricks produced in the first half of 2024 no longer rely on petroleum. The Danish company has increased the share of sustainable materials in its products.

Lego advances sustainability with reduced reliance on oil
There is now less oil in Lego bricks.

Lego manufactures billions of plastic bricks annually. Over the past few years, the company has tested over 600 different materials to develop a new substance that could completely replace the oil-based Lego brick by 2030. Initial attempts, such as using recycled plastic from bottles, have met with limited success.

High cost of new materials

The company abandoned the plastic bottle recycling plan last year. To make recycled plastic as durable as the existing material, additional ingredients were required, and processing and drying the material consumed a lot of energy, making it difficult to reduce CO2 emissions. Lego has now found other ways to gradually replace petroleum, although the company did not provide specifics. Lego is willing to pay up to 70 percent more for certified renewable resin, the raw material used in brick production. “This means a significant increase in the cost of manufacturing a Lego brick,” Christiansen told Reuters. The company also aims to encourage manufacturers to boost production.

Increased profits in the first half of the year

Christiansen described the development as a “milestone” in demonstrating that progress with sustainable materials is achievable. The appearance and feel of the bricks remain unchanged—there is no difference in touch or quality. “It feels exactly the same. The quality and durability are the same,” Christiansen said.

Thanks to strong demand in America and Europe, Lego increased its revenue by 13 percent in the first half of the year compared to the same period last year, reaching 31 billion Danish kroner (€4.15 billion). Net profit rose by 16 percent to 6 billion kroner (about €800 million). Popular product lines include Lego Icons, Lego Star Wars, Lego Technic, Lego City, and Lego Harry Potter. In the first half of the year alone, around 300 new products were added to the assortment.

Tags: Legooil in productstoy companies

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