Lego to Switch to 'Eco-Friendly Plastics' by 2032... No Cost Passed on to Consumers

Toy manufacturer Lego announced that it will switch all its block products to eco-friendly plastics by 2032. The initial goal is to convert about half of the block plastics to renewable or recycled eco-friendly materials by 2026. The company also clearly stated that there will be no cost transfer to consumers through price increases during this process.

[Image source=AP Yonhap News]

According to The Guardian and other sources, Lego announced this eco-friendly transition plan on the 28th (local time). Currently, Lego blocks are made from a mixture of petroleum-based plastics and renewable resins. The plan is to gradually replace these with renewable materials so that by 2026, half of the block products, and by 2032, all block products will be made from eco-friendly plastics.

Lego explained, "We are working to increase the proportion of renewable or recycled eco-friendly materials." As of the first half of 2024, 22% of all block products are made from such eco-friendly materials, up from 12% last year. Lego also stated that it has tested more than 600 different materials for this eco-friendly transition plan.

[Image source=Reuters Yonhap News]

However, additional costs are inevitable to replace all plastic products with eco-friendly materials. CEO Niels Christiansen said, "The transition to sustainable materials means higher block production costs," but added, "We have decided to bear that burden. (The additional costs) will come out of our profits." He emphasized that they do not intend to pass these costs on to consumers through price increases, saying, "I don't know if consumers are willing to pay more."

Lego expects that its eco-friendly transition will promote the development of related industries and enable supply chain transformation. Christiansen also added that he hopes this process will lead to the development of cheaper and new eco-friendly materials, which will help Lego achieve its 2032 goal. According to the U.S. Department of Energy, over 300 million tons of plastic are produced worldwide annually, but only a small portion of this plastic is recycled.

Meanwhile, Lego's sales for the first half of this year increased by 13% to 31 billion kroner (approximately 3.85 trillion KRW). Operating profit rose by 26% to 8.1 billion kroner (approximately 1.032 trillion KRW).

This content was produced with the assistance of AI translation services.