Lego is taking a bold step towards sustainability, announcing plans to phase out fossil fuels from its iconic plastic bricks by 2030, despite a significant increase in production costs. The Danish toymaker, renowned for its colorful building blocks, reported a remarkable 26% surge in profits for the first half of the year, reaching 8.1 billion Danish krone ($1.2 billion). This performance outpaced the broader toy industry, which has struggled with declining sales as consumers cut back on non-essential purchases.
Lego's CEO, Niels Christiansen, highlighted the company’s global appeal and strong consumer resonance across various age groups. Despite a global toy sales slump, Lego’s innovative approach to sustainability has kept it on a growth trajectory.
In its ambitious shift towards greener manufacturing, Lego plans to replace its oil-based plastic with renewable and recycled alternatives, aiming for all products to be made from sustainable materials by 2032. This transition involves paying up to 70% more for certified renewable resin, a move Christiansen described as crucial for encouraging increased production of sustainable materials.
Lego’s commitment comes amid a market saturated with cheap virgin plastic, driven by investments in petrochemicals. Although the cost of sustainable plastics remains high, Lego is absorbing these expenses, confident that this investment will stimulate growth in the green plastic sector.
As competitors like Hasbro and Mattel also explore sustainable options, Lego’s pioneering efforts set a new standard for environmental responsibility in the toy industry.
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