Danish toy giant Lego wants to entirely replace the use of oil in making its iconic building bricks by 2032 by using renewable and recyclable plastics instead.
The company’s efforts to develop an entirely new material to use for making bricks have not yet produced the results Lego wanted, so instead it has secured a long-term supply of renewable resin, the raw plastic that makes up Lego pieces.
Lego plans to gradually reduce the amount of oil used in its plastic production, even though the renewable materials cost up to 70% more.
“With a family-owner committed to sustainability, it’s a privilege that we can pay extra for the raw materials,” Lego CEO Niels B. Christiansen told Reuters. Lego was founded by and is still owned by the Kirk Kristiansen family.
Customers will not see an increase in price due to the swap in materials for now.
“So far we have decided that we will bear the burden of it, and [the extra cost] comes out of our bottom line. We are not sure consumers are very willing to pay,” Mr. Christiansen told The Guardian.
As of the first half of 2024, 30% of the resin used in Lego pieces was certifiably renewable. By 2026, more than half of the resin will be certified renewable, Mr. Christiansen told Reuters.
The renewable resin is sourced from bio-waste materials, such as cooking oil, as well as recycled plastics.
Lego is able to afford the jump in plastic costs due to a jump in its own profits.
As of Wednesday, the company’s sales in the first half of 2024 had increased by 13% to more than $4.5 billion and its operating profits rose 26% to nearly $1.2 billion, according to The Guardian.
“Our product portfolio resonates super well across ages and interests,” Mr. Christiansen told CNN.
• Brad Matthews can be reached at bmatthews@washingtontimes.com.
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