Current:Home > MarketsAs Lego goes green, costs will rise but customer prices won't, company says. Here's why. -ProfitSphere Academy
As Lego goes green, costs will rise but customer prices won't, company says. Here's why.
TrendPulse Quantitative Think Tank Center View
Date:2025-04-10 20:08:14
Lego wants to build a more "sustainable future" by using more eco-friendly materials to create its plastic bricks by 2026, as stated in a press release.
The Lego company wants the material it uses to create its bricks to be made from 50% recycled or renewable material within the next two years, it said in a press release. The company has been working on creating a Lego brick without using virgin fossil fuel for eight years.
Currently, 30% of one colorful brick is made with resin that is certified mass balance, meaning that, on average, 22% of the material used to make a Lego brick is from renewable and recycled sources, according to Lego's press release.
"By doing this, the company aims to help accelerate the industry’s transition to more sustainable, high-quality materials," stated the press release.
Since 2023, the company has nearly doubled the amount of the resin material used to create the bricks. Last year, it used 18% of the resin, meaning 12% came from sustainable sources.
The resin's "mass balance approach" uses materials that are a mix of "both virgin fossil and renewable and recycled raw materials, such as used cooking or plant oils," according to Lego's website.
Paying more for materials, but Lego's prices will stay the same
To accomplish its eco-friendly goal of bringing down the fossil fuel content of bricks in time, Lego will pay 70% more for more certified renewable resin.
Lego, however, will absorb the cost instead of passing it to consumers, and Lego sets will not see an increase in price because of the swap in the material.
"With a family-owner committed to sustainability, it's a privilege that we can pay extra for the raw materials without having to charge customers extra," Lego CEO Niels Christiansen told Reuters.
It is doing this in the hopes that it will "help accelerate the industry's transition to more sustainable, high-quality materials."
The company also started using arMABS, which is created with recycled, artificial marble, according to a Lego news article from March. The material is commonly found in kitchen worktops, and as of 2024, 500 different Lego pieces contain the material.
Tested 600 different materials
Lego, which produces billions of bricks every year, tested over 600 materials to try and create a new medium that would ultimately replace its oil-based brick by 2032, reported Reuters,.
Despite not finding the perfect material, it has figured out what not to use.
In 2023, Lego abandoned the possibility of using a specific recycled plastic, polyethylene terephthalate (RPET), after finding that it would lead to higher carbon emissions.
Legos and the environment:Lego moves in another direction after finding plastic bottle prototype won't reduce emissions
Investing in future businesses
Plastic is expected to drive the demand for oil in the coming decades, reports Reuters.
Annually, around 460 million metric tons of plastic are produced and another 20 million metric tons are littered, all of which ends up in the environment, according to the International Union for Conservation of Nature. By 2040, that number is expected to increase significantly.
Lego's search for a plastic alternative comes amid concerns over growing concerns over plastic pollution and microplastics.
Lego's suppliers use cooking oil, food industry waste fat and recycled materials to replace virgin fossil fuels in plastic production.
The company is also focused on reducing its greenhouse gas emissions and created the new Supplier Sustainability Programme, according to its press release.
The program "requires suppliers to set targets to reduce emissions by 2026, and further by 2028," it stated.
Contributing: Reuters
Julia is a trending reporter for USA TODAY. She has covered various topics, from local businesses and government in her hometown, Miami, to tech and pop culture. You can connect with her on LinkedIn or follow her on X, formerly Twitter, Instagram and TikTok: @juliamariegz
veryGood! (2)
Related
- Who are the most valuable sports franchises? Forbes releases new list of top 50 teams
- New York bans pet stores from selling cats, dogs and rabbits
- What Does a Zero-Carbon Future Look Like for Transportation in Minnesota?
- Style Meets Function With These 42% Off Deals From Shay Mitchell's Béis
- Jamie Foxx gets stitches after a glass is thrown at him during dinner in Beverly Hills
- What Would It Take to Turn Ohio’s Farms Carbon-Neutral?
- Warming Trends: A Facebook Plan to Debunk Climate Myths, ‘Meltdown’ and a Sad Yeti
- Polluting Industries Cash-In on COVID, Harming Climate in the Process
- 'As foretold in the prophecy': Elon Musk and internet react as Tesla stock hits $420 all
- Jon Hamm's James Kennedy Impression Is the Best Thing You'll See All Week
Ranking
- Spooky or not? Some Choa Chu Kang residents say community garden resembles cemetery
- Kate Spade 24-Hour Flash Deal: This $360 Backpack Is on Sale for $79 and It Comes in 8 Colors
- Tribes Sue to Halt Trump Plan for Channeling Emergency Funds to Alaska Native Corporations
- Lily-Rose Depp Shows Her Blossoming Love for Girlfriend 070 Shake During NYC Outing
- 2 killed, 3 injured in shooting at makeshift club in Houston
- Spam call bounty hunter
- Climate Change is Weakening the Ocean Currents That Shape Weather on Both Sides of the Atlantic
- Europe Seeks Solutions as it Grapples With Catastrophic Wildfires
Recommendation
The FBI should have done more to collect intelligence before the Capitol riot, watchdog finds
Hospital Visits Declined After Sulfur Dioxide Reductions from Louisville-Area Coal Plants
Warming Trends: The Value of Natural Land, a Climate Change Podcast and Traffic Technology in Hawaii
Hiring cools as employers added 209,000 jobs in June
Arkansas State Police probe death of woman found after officer
Biden cracking down on junk health insurance plans
5 takeaways from the front lines of the inflation fight
Hospital Visits Declined After Sulfur Dioxide Reductions from Louisville-Area Coal Plants