Lego, the renowned toymaker known for its iconic plastic bricks, is on a mission to transition away from fossil fuels by 2032. This ambitious goal involves replacing traditional oil-based plastics with more expensive renewable and recycled materials.
Lego’s commitment comes at a time when the plastic industry relies heavily on virgin fossil fuels, with around 90% of all plastic production derived from this source. The company, which sells billions of plastic bricks annually, has experimented with over 600 different materials to find a viable alternative to its traditional plastic.
While initially aiming for a fully sustainable material by 2030, Lego encountered challenges in achieving this target. The company has shifted its focus to a gradual reduction in the oil content of its bricks by sourcing certified renewable resin. However, this sustainable option comes at a significant cost, with renewable resin costing up to 70% more than traditional materials.
Lego’s CEO, Niels Christiansen, acknowledged the increased cost of production associated with this shift. By 2026, Lego aims to source more than half of its required resin through a mass balance method, a system that tracks sustainable materials throughout the supply chain. This ambitious target represents a substantial increase from the 30% achieved in the first half of 2024.
Lego’s efforts come despite the abundance of cheap virgin plastic, a situation largely attributed to investments by major oil companies in petrochemicals, which are anticipated to drive new oil demand for decades.
Lego’s suppliers are actively utilizing bio-waste, such as cooking oil and food industry waste fat, along with recycled materials, to replace virgin fossil fuels in plastic production. However, the market for recycled or renewable plastic is still in its early stages of development, with much of the available feedstock diverted towards subsidized biodiesel for transportation fuels.
Neste OYJ, the world’s largest producer of renewable feedstocks, reports that fossil-based plastic remains significantly cheaper than sustainable alternatives, costing roughly half or a third as much.
Competitors like Hasbro and Mattel are also exploring more sustainable material options. Mattel has pledged to utilize only recycled, recyclable, or bio-based plastics by 2030.
Lego’s journey towards sustainability is a testament to the challenges and opportunities facing businesses as they strive to reduce their environmental impact. While the transition to sustainable materials is costly and complex, Lego’s commitment reflects a growing trend within the industry to prioritize responsible practices and embrace a more environmentally conscious future.
