- Despite higher costs, Lego plans to switch to renewable and recycled plastics for its bricks by 2032.
- The company will buy certified renewable resin, up to 70% more expensive, to reduce the oil content in its bricks.
- By 2026, Lego aims to have over half of its resin certified under a sustainable tracking method despite a market dominated by cheaper virgin plastics.
Lego, the iconic toymaker, announced plans to switch to renewable and recycled plastics for its bricks by 2032. Despite the higher costs of sustainable materials, the company has secured long-term deals with producers.
Lego, which produces billions of plastic bricks annually, has tested over 600 alternative materials to replace its oil-based plastics. Despite extensive testing, finding a suitable substitute has proven challenging.
Lego will start buying certified renewable resin to reduce the oil content in its bricks. This resin costs up to 70% more than traditional plastics. The company hopes that paying a premium will encourage manufacturers to increase the production of sustainable materials.
“This means a significant rise in the cost of making a Lego brick,” said CEO Niels Christiansen in an interview with Reuters. However, Lego’s family ownership allows it to absorb these costs without raising consumer prices.
Lego aims to have over half of its resin certified under the mass balance method, a system that tracks sustainable materials by 2026, up from 30% in the first half of 2024.
This move comes as the market is flooded with cheap virgin plastic, driven by significant oil companies investing in petrochemicals. Despite this, Lego’s suppliers are turning to bio-waste, such as cooking oil and food industry fats, and recycled materials to replace fossil fuels in plastic production.
The market for renewable and recycled plastics is still developing. Much of the available feedstock is currently used in subsidised biodiesel for transportation. Nestle, a leading producer of renewable feedstocks, noted that sustainable plastics are up to three times more expensive than fossil-based options.
Christiansen noted increased industry interest in sustainable materials over the past year but declined to share details about suppliers or costs.
Lego’s competitors are also moving towards sustainability. Hasbro has started using plant-based and recycled materials in some toys without setting firm targets. Mattel has pledged to use only recycled, recyclable, or bio-based plastics in all products by 2030.
According to the PlasticsEurope industry group, about 90% of all plastic is made from virgin fossil fuels. Despite the challenges, Lego remains committed to its sustainability goals, driven by the belief that investing in the future is worth the cost.