What is Lego’s Supplier Sustainability Programme?
With 99% of carbon emissions originating from outside of the company, Lego Group is ramping up its strategy to drive greater carbon reduction from within its souring, supply and procurement operations.
The ‘Supplier Sustainability Programme’ outlines near term targets that Lego Group suppliers need to meet by 2026.
The company has published a commitment to reducing its emissions by 37% by 2032 and achieving net-zero by 2050. To achieve these goals, it requires suppliers across its procurement ecosystem to take significant steps to reduce their own emissions.
Annette Stube, Chief Sustainability Officer at the LEGO Group says: “To put it simply, a net-zero world is simply not possible unless we find solutions that are greater than our own operations.
"We will not be able to meet our sustainability targets alone – we have to work in partnership with our suppliers. We want children to inherit a healthy planet and there’s no time to waste.”
- Providing specific data on the amount of carbon associated with the products and services the LEGO Group purchases
- Asking suppliers for near term targets showing emission savings related to production of these products by 2026, and further by 2028
- Collaborating to identify and develop the actions and initiatives suppliers need to take in order to meet the reduction goals set by the LEGO Group. This includes improving the efficiency of their facilities to use less resources, switching to renewable energy sources wherever possible, or finding less carbon-intensive ways to transport materials
Lego Group Climate Action Plan
The programme is a key component in the company’s wider climate action plan.
The strategy includes measures such as reducing greenhouse gas emissions from its own operations, and a continued transition to renewable energy.
Examples of progress published by Lego include increasing solar capacity by 16% versus 2022, with plans to double it by 2026. The company has also introduced an annual Carbon KPI, which measures emissions across factories, stores and offices to help ensure visibility on short-term progress.
The Lego Group is also tying its sustainability performance to its executive bonuses, in the sustainability team and beyond.
Carsten Rasmussen, Chief Operations Officer at the LEGO Group adds: “Sustainability is a licence to operate and a requirement of how we do business, including how we select our suppliers. We have ideas and we have a pathway, but we cannot do it alone. We need all our great partners to help us achieve our sustainability targets.
"The Supplier Sustainability Programme is founded on collaboration and we cannot underestimate the power of working together to create real, lasting change and a more sustainable future.”
Annual Supplier Reporting
Starting in 2024, suppliers will be required to submit annual reports detailing their emission reductions.
At the recent Supplier Summit, the LEGO Group introduced this initiative to engage suppliers from all procurement categories, particularly those contributing the most to Scope 3 carbon emissions.
The programme emphasises capability building, with an initial focus on carbon accounting, and offers access to a dedicated team of sustainability experts.
The LEGO Group increased its spending on environmental initiatives by 60% in 2023 compared to 2022. This includes substantial investments in sustainable materials, manufacturing technology and supply chain improvements.
The company is taking urgent action to meet its ambitious target of reducing emissions by 37% by 2032 and achieving net-zero by 2050.
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