LEGO blocks have long been credited with helping children learn, by allowing them to experiment, test out new ideas, and practice developing their motor skills. Even after decades of availability, they also remain immensely popular, such that as of 2024, the toy company could report significant sales increases, even as general toy sales have fallen.

To capitalize on this recent success, by building up its competitive advantages and potential for future success, LEGO has decided to invest those revenues in environmentally sustainable practices. Specifically, it plans to create a brick made from at least 50 percent renewable material by 2026; currently, only 22 percent of the material used comes from recycled sources. 

The new blocks will consist of a resin that comprises a mixture of fossil and renewable materials, including cooking and plant oils. The brand will require suppliers to set similar targets to reduce their greenhouse emissions by 2026, as part of LEGO’s new Supplier Sustainability Programme. Meanwhile, reports suggest that LEGO is testing more than 600 materials in its efforts to create blocks that can completely phase out fossil fuels.

This initiative reflects the company’s ongoing commitment to its core values: This family-owned business cares about sustainability. Because its initiative is part of its own internal motivation, LEGO also has committed to absorbing the higher cost of new materials, without transferring those costs on to customers. Reportedly, the new materials cost 70 percent more than the input for its current block production.

Such commitment also can be presented as a savvy business decision. As more consumers express interest in pursuing sustainable options, and public awareness of the climate crisis continues to grow, corporations feel increasing pressure to demonstrate their sincere efforts to limit their contributions to the problem. By actively pursuing more sustainable options, LEGO joins other large corporations, like Nestlé and Mattel, in announcing its public commitment to such goals.

Of course, other companies, including oil giants like ExxonMobil, have introduced their own eco-conscious programs. Thus, questions about the sincerity of any such altruism remain. For example, health experts warn that the sorts of bioplastics that LEGO is pursuing might prove unsafe for human contact, which would be a serious concern for parents of young children. Thus, the long-term impact remains to be seen.

Discussion Questions

1. Should there be regulatory guidelines limiting the use of fossil fuels in consumer products? What should these rules require, to make an actual impact?
2. What other solutions might inspire a reduction in microplastics and greenhouse gases during the production process for LEGO bricks?

Sources: Hanna Ziady and Reuters, “Lego Plans to Ditch Oil in its Bricks for Pricier Renewable Plastic as Profits Surge,” CNN Business, August 29, 2024; Julia Gomez, “As Lego Goes Green, Costs Will Rise But Customer Prices Won’t, Company Says. Here’s Why,” USA Today, August 28, 2024; Mary Cunningham, “LEGO to Scale Up Use of Renewable Plastics in its Bricks, With Goal of Replacing Fossil Fuel-Based Materials by 2032,” CBS News, August 28, 2024