Lego, the Danish toy company synonymous with colorful plastic bricks, has announced an ambitious new phase in its sustainability journey: transitioning from fossil fuel-based plastics to more costly renewable and recycled materials. This decision comes as the company reports an impressive 26% surge in profits for the first half of the year, totaling 8.1 billion Danish krone ($1.2 billion), with consumer sales growing by 14%, significantly outperforming the broader toy industry.
Lego CEO Neils Christiansen pointed to the brand’s widespread appeal across various demographics and regions as a key factor in its continued success. “Our product portfolio resonates super well across ages and interests,” Christiansen remarked, underscoring the enduring popularity of Lego’s offerings even as global toy sales have slowed.
Despite its financial success, Lego faces a considerable challenge in replacing the billions of plastic bricks it produces each year with more sustainable alternatives. The company has tested over 600 materials in its search for a suitable substitute for oil-based plastics by 2030, but with limited results. In response, Lego has shifted its strategy to gradually reduce the oil content in its bricks by purchasing certified renewable resin—a material that can cost up to 70% more than conventional plastics. This investment is part of Lego’s broader effort to stimulate the production of sustainable materials, which are essential to its goal of producing all its products from renewable and recycled materials by 2032.
Lego is making progress towards this goal, with more than half of the resin it needs by 2026 expected to be certified according to the mass balance method, a system that ensures the traceability of sustainable materials throughout the supply chain. Currently, 30% of the resin used in the first half of 2024 meets these standards. Christiansen emphasized that Lego’s family ownership, which is deeply committed to sustainability, allows the company to absorb the additional costs of these materials without passing them on to consumers.
The market for recycled and renewable plastics is still in its infancy, with much of the available feedstock currently used for subsidized biodiesel, which is blended into transportation fuels. Despite these challenges, Christiansen expressed optimism about the future, noting that there is more activity and willingness to invest in sustainable materials now than there was just a year ago. Rival toymakers, such as Hasbro and Mattel, are also beginning to explore greener alternatives. Hasbro has introduced plant-based or recycled materials in some of its toys, while Mattel has pledged to use only recycled, recyclable, or bio-based plastics in all its products by 2030.
The broader plastics industry, however, remains heavily reliant on virgin fossil fuels, with approximately 90% of all plastic still derived from these sources. Lego’s ambitious plans to transition to renewable and recycled materials by 2032 represent a bold departure from industry norms and position the company as a leader in sustainability within the global toy market.
