Lego plans to make half the plastic in its bricks from renewable or recycled material rather than fossil fuels by 2026, in its latest effort to ensure it toys are more environmentally friendly.
The Danish company, which last year ditched efforts to make bricks entirely from recycled bottles because of cost and production issues, currently makes 22% of its colourful bricks using fossil fuels.
In the long term, Lego plans to switch entirely to renewable and recycled plastic by 2032, in a green push that has resulted in the company testing more than 600 alternative materials.
The toymaker hopes gradually to bring down the amount of oil-based plastic it uses by paying up to 70% more for certified renewable resin, the raw plastic used to manufacture the bricks, in an attempt to encourage manufacturers to increase production.
Lego’s plastic producers are replacing virgin fossil fuels with alternatives such as cooking oil or food industry waste fat as well as recycled materials but costs can be two or three times higher because the market is still developing.
“This means a significant increase in the cost of producing a Lego brick,” Niels Christiansen, the chief executive of Lego, told Reuters. “It’s a privilege that we can pay extra for the raw materials without having to charge customers extra.”
Last year, the group pledged to triple spending on sustainability to 3bn Danish kroner (£340m) a year by 2025, while promising not to pass on higher costs to consumers.
Lego has also expanded its brick takeback programme, Replay – where consumers can donate old bricks to the company through free shipping – into the UK and continued to test similar models in the US and Europe.
On Wednesday, Lego reported a 13% rise in sales to 31bn kroner in the first half of this year as it claimed it had “significantly outpaced the toy industry, gaining market share”.
after newsletter promotion
Operating profit rose 26% to a record 8.1bn kroner as the group launched about 300 new sets within top performers, including its icons sets. The range includes a £259.99 Lamborghini kit and the £554.99 Eiffel Tower, as well as Technics, Star Wars and Harry Potter toys.
Christiansen said: “Our portfolio continues to be relevant for all ages and interests, and this is driving significant demand across markets. We used our solid financial foundation to further increase spending on strategic initiatives which will support growth now and in the future to enable us to bring learning through play to even more children.”