Current:Home > MarketsAs Lego goes green, costs will rise but customer prices won't, company says. Here's why. -CapitalEdge
As Lego goes green, costs will rise but customer prices won't, company says. Here's why.
TrendPulse Quantitative Think Tank Center View
Date:2025-04-06 20:00:54
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! (72367)
Related
- Why members of two of EPA's influential science advisory committees were let go
- Glasgow climate pledges are 'lip service' without far more aggressive plans
- Get Softer-Than-Soft Skin and Save 50% On Josie Maran Whipped Argan Oil Body Butter
- Megan Fox and Machine Gun Kelly Shut Down Breakup Rumors With PDA During Hawaii Getaway
- Former Syrian official arrested in California who oversaw prison charged with torture
- In hurricane-wrecked Southern Louisiana, longtime residents consider calling it quits
- Plant that makes you feel electrocuted and set on fire at the same time introduced to U.K. Poison Garden
- 10 Underrated Beauty Brands We're Tempted to Gatekeep
- Newly elected West Virginia lawmaker arrested and accused of making terroristic threats
- Intense monsoon rains lash Pakistan, with flooding and landslides blamed for at least 50 deaths
Ranking
- Federal appeals court upholds $14.25 million fine against Exxon for pollution in Texas
- Bow Down to Zendaya and Tom Holland’s Intimate Palace Date
- Satellites reveal the secrets of water-guzzling farms in California
- U.S. Treasury chief Janet Yellen pushes China over punitive actions against American businesses
- Tom Holland's New Venture Revealed
- Get $141 Worth of Peter Thomas Roth Top-Selling Skincare Products for Just $39
- Surprise! The Bachelor's Madison Prewett Just Added More Styles to Her Clothing Collaboration
- For World Health Day 2023, Shop These 17 Ways to Enhance Your Self Care Routine
Recommendation
Former Danish minister for Greenland discusses Trump's push to acquire island
Two Sides Of Guyana: A Green Champion And An Oil Producer
EPA announces tighter fuel economy standards for cars and trucks
Olivia Culpo and NFL Player Christian McCaffrey Are Engaged
What do we know about the mysterious drones reported flying over New Jersey?
Benny watched his house drift away. Now, his community wants better storm protection
India pledges net-zero emissions by 2070 — but also wants to expand coal mining
Manchin says Build Back Better's climate measures are risky. That's not true