Climate & Nature

LEGO commits to net zero by 2050, tripling sustainability investment

ESG Broadcast Desk· 30 Aug 2023· 1 min read

The LEGO Group committed to net zero emissions by 2050 and will triple sustainability investment to over $1.4 billion within three years. Its supply-chain decarbonisation focus, where 98% of emissions originate, signals Scope 3 expectations Indian suppliers to global brands may face.

The LEGO Group announced a commitment to achieve net zero emissions by 2050 and to triple investment in environmental sustainability to more than $1.4 billion within three years. The company will work with the Science Based Targets initiative to set reduction targets covering Scope 1 emissions from factories, offices and stores, Scope 2 from purchased energy, and Scope 3 across its supply chain. Approximately 98% of LEGO's emissions footprint arises from its supply chain, extending a 2020 SBTi-approved 37% reduction target by 2032.

The commitment affects LEGO's suppliers, energy providers, and manufacturing partners. The three-year investment will fund carbon-neutral factories and buildings, scaled renewable-energy production at facilities, and renewable-energy procurement for factories, offices and stores. Within its supply chain, LEGO will engage suppliers through its "Engage-to-Reduce" programme, established in 2014. The company will also apply Shadow Carbon Pricing to significant investments, integrate a carbon KPI into executive remuneration from 2024, and pursue responsible-travel policies curbing international air travel.

Indian suppliers to global consumer brands should monitor Scope 3 supplier-engagement programmes, since 98% of LEGO's footprint sits in its supply chain and decarbonisation pressure cascades to vendors. Affected entities should prepare for emissions-data requests, reduction-target alignment, and potential carbon-pricing considerations in procurement. Companies should track LEGO's progress toward its 2032 interim 37% reduction target and the rollout of executive carbon-KPI incentives from 2024 as indicators of intensifying supplier accountability.

Key figure — Sustainability investment: over $1.4 billion within three years; net zero by 2050

This content is AI-assisted and reviewed by the ESG Broadcast editorial team. It is for informational purposes only and is not investment or ESG-rating advice. See our Technology & Transparency policy.

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LEGO commits to net zero by 2050, tripling sustainability investment | ESG Broadcast