LEGO Group Targets Natural Gas Phase-Out Across Manufacturing Sites

The LEGO Group outlined a series of measures to eliminate natural gas use at its production facilities as part of its Zero Impact in Operations strategy, targeting a 37% reduction in carbon emissions by 2032 compared to 2019 levels and net zero by 2050. Natural gas used for factory heating accounted for 16,000 tonnes of CO2 equivalent in 2023.

Among the key projects disclosed, LEGO Group has drilled two geothermal wells at its factory in Nyíregyháza, Hungary, finding a heat source that will completely replace natural gas heating once infrastructure is installed. The geothermal system is expected to become operational in 2028. LEGO also transitioned 11 buildings at its headquarters in Billund, Denmark to district heating in 2024, which is predominantly sourced from renewables. At its factory in Jiaxing, China, a new heat capture system recovering waste heat from industrial chillers has already reduced natural gas consumption by 50%, with plans for a full phase-out at that site.

Industrial heat decarbonization is among the most technically and economically challenging aspects of manufacturing decarbonization, as many existing processes were designed around fossil fuel combustion. LEGO's multi-market approach — combining geothermal where geology allows, district heating in Nordic markets, and heat recovery in Asia — reflects the geographic diversity of viable solutions. The three-site disclosure demonstrates that industrial natural gas phase-out is technically achievable across different production contexts, even if each site requires a tailored approach and significant capital investment.

LEGO Group's decarbonization of manufacturing operations takes on added significance given the company's global supply chain and high public visibility with consumers. Progress on Scope 1 emissions from factory heating supports the company's near-term 2032 target and builds toward its 2050 net zero commitment. As Indian manufacturers increasingly face supply chain sustainability requirements from large European and American brand customers, LEGO's phased and technology-specific approach provides a practical roadmap for addressing factory heat emissions in diverse industrial contexts.

Key figure — 16,000 tonnes CO2e from natural gas in 2023