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Brick by Brick: Lego is Building a Greener Future With Stricter Carbon Reductions for Suppliers

Lego, the world’s leading toy manufacturer, is taking significant steps to meet its net zero goals by mandating that its suppliers set near-term emissions reduction targets by 2026 under its new Supplier Sustainability Program. This initiative is crucial for Lego to stay on track with its commitment to reducing its carbon footprint by 37% by 2032 and achieving net zero by 2050. 

Carsten Rasmussen, Lego’s Chief Operations Officer, emphasized the importance of sustainability in business operations and supplier selection. He stated, 

“Sustainability is a license to operate and a requirement of how we do business, including how we select our suppliers. We have ideas and we have a pathway; we cannot do it alone.”

Lego’s Colorful Path to Net Zero 

The toy industry produces an estimated 26 million metric tons of greenhouse gas (GHG) emissions annually. But the industry rarely makes public commitments regarding supplier emissions, making Lego stand out with this announcement. 

The Danish toy maker’s initiative builds on a 2014 program aimed at measuring and mitigating the environmental impact of its close partners, involving 158 suppliers as of December’s sustainability progress report.

The Lego Group’s 2050 net zero emissions pledge includes Scope 1, 2, and 3 emissions. Notably, 99% of Lego’s emissions stem from Scope 3 activities, which include the entire supply chain. 

Lego greenhouse gas emissions or carbon footprint by category
Source from Lego’s website

Setting a long-term goal helps ensure the company achieves its climate targets, with the immediate priority of meeting its 2032 carbon reduction goals. The toy manufacturer employs various initiatives to reach those goals and has increased spending on climate actions by 60% in 2023 versus 2022. 

Their major initiatives include the following and their sustainability 2023 progress:

Increasing capacity and production of renewable energy at sites:

  • Reduced absolute emissions across manufacturing sites, stores, and offices.
  • Increased production of renewable energy in factories and purchased renewable energy for factories, offices, and stores.
  • Commenced construction of a new factory in Vietnam and broke ground on a new factory near Richmond, Virginia, USA, both with solar facilities to match total annual energy requirements.
  • Increased solar capacity investments by adding 2.2 MWp, bringing peak capacity to 15.6 MWp across production sites in Denmark, the Czech Republic, Hungary, Mexico, and China (16% increase from 2022).
  • Planning to build a solar park in Billund, Denmark, to cover energy requirements of offices and sites in the town, expected to be operational in 2027.

Taking CO2 emissions into account across all business decisions:

  • Implemented shadow carbon pricing on key investments to encourage low-carbon initiatives.
  • Ensured emissions related to new investments are considered before financial decisions.
  • Established responsible travel guidelines to reduce employee travel, particularly international air travel, by 50% by 2032 compared to 2019.

Joining forces with suppliers to collectively reduce environmental impact:

  • Continued collaboration with suppliers through the Engage-to-Reduce program (established in 2014).
  • Engaged 158 suppliers in 2023, up from 138 in 2022, marking a 14.5% increase.

An Expensive Climate Commitment

Lego GHG emission reduction target
Source from Lego’s website

Lego also plans to triple its investment in environmental sustainability over the next 3 years, spending over $1.4 billion. 

This investment will support designing carbon-neutral factories and buildings, increasing renewable energy production and acquisition at its plants, offices, and stores, and incorporating carbon dioxide emissions into all corporate decisions. 

This move places the company alongside industry rivals Hasbro and Mattel, who have made similar environmental pledges. In 2022, Hasbro set goals to reduce greenhouse gases by 40% by 2030 and achieve net zero emissions by 2050. Mattel committed to reducing plastic packaging by 25% per product by 2030.

One of the toy industry’s biggest challenges is plastic use; it uses nearly 1% of global plastic production.

Lego’s total footprint for 2022 was about 1.6 million metric tons, up from 1.5 million metric tons in 2021. Finding alternatives to plastic is a top priority for the company, though reducing plastics and cutting emissions don’t always align. 

In September, Lego backed away from a commitment to make its bricks entirely from recycled plastic as it wouldn’t significantly reduce emissions. 

To date, Lego has tested over 600 materials, including bio-polyethylene, used in botanical elements and Minifigure accessories. In 2023, 18% of the resin purchased for bricks was from renewable or recycled sources mixed with virgin materials.

From Playtime to Planet-Saving Actions

Additionally, Lego will invest in global carbon reduction initiatives, such as supporting carbon capture programs like that of Climeworks. In 2023, Lego entered an agreement with Climeworks, investing US$2.4 million in their carbon capture and storage services. 

Climeworks specializes in removing historic and unavoidable CO2 emissions from the atmosphere through direct air capture and storage facilities. The process involves drawing air into large collector containers, capturing the CO2 on a filter, and then storing the collected CO2 deep underground in Iceland with Climeworks’ storage partner, Carbfix. This CO2 is eventually transformed into stone through an accelerated natural process.

This initiative reflects Lego’s commitment to addressing both current and historical carbon emissions, further enhancing its efforts to achieve net zero emissions by 2050.

By implementing these measures, Lego is taking a leadership role in sustainability within the toy industry, pushing for broader environmental responsibility and innovation among its suppliers and beyond.

The post Brick by Brick: Lego Builds a Net Zero Future With Stricter Carbon Reductions for Suppliers appeared first on Carbon Credits.

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Carbon Footprint

The Strategic Case for Nature-Based Carbon Investments

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Nature-based carbon investments deserve consideration when they address a specific business dependency and produce outcomes you can measure. Imagine Moonbucks, a global coffee roaster planning next season’s espresso blend. It is considering natural Grade 4 coffee from Jimma, in southwestern Oromia, Ethiopia. Its sourcing decisions affect the roasting schedule and the cash tied up in coffee purchases. Moonbucks needs to understand which measures could protect that supply, what they would cost and how it would judge the results.

1. Define the sourcing problem before choosing a project

Moonbucks needs a dependable component for its espresso blend. Its procurement team wants continuity of volume and an agreed cup profile. Replacing a shipment at short notice could require new sample approval and changes to the blend, and given the schedules for cultivation, processing, and freight delivery, is practically impossible. Moonbucks needs to get this right, and its initial concern is inconsistent deliveries. It commissions an assessment of the supplying farms and post-harvest chain. The questions cover land condition, harvest availability and whether drying or storage problems are affecting saleable lots.

This distinction changes the investment brief. A tree-planting proposal cannot be assumed to fix drying problems. Better storage cannot restore eroded land. The team must establish which problem exists before selecting the response.

CCC’s guide to finding nature-based solutions in your supply chain explains where to look. Here, the next task is to turn a broad concern into a testable proposal.

2. Develop nature-based carbon investments around the actual supply chain

The assessment would trace Moonbucks’ purchases back through the exporter and supplying producer groups. Which farms supply the contracted lots? Who controls land-management decisions? How long does the buyer expect to maintain the purchasing relationship?

Furthermore, Jimma natural Grade 4 cannot be treated as interchangeable with every Ethiopian coffee. Moonbucks would need to test any substitute against its own blend and quality requirements.

Suppose Moonbucks’ assessment identifies an opportunity to maintain shade trees and restore vegetation along exposed streambanks. The IPCC describes agroforestry as a way to store carbon in vegetation and soil, with potential benefits for erosion control and water quality.1 Moonbucks would need local advice on species, growing conditions and maintenance before deciding how these measures fit its sourcing plan.

The proposal now has a defined sourcing connection and a candidate intervention. The next steps are to test its effect on production, assess carbon eligibility and build the financial case.

3. Compare the proposal with other ways to protect supply

WBCSD’s Nature-based Solutions Blueprint recommends comparing nature-based options with other responses across their benefits and costs.2 For Moonbucks, that means evaluating the landscape proposal alongside drying improvements, storage controls and alternative sourcing arrangements.

The product’s natural-process designation matters. Moonbucks should examine the drying and dry-milling chain alongside land conditions. Its team would check storage practices, contamination risks and incoming-lot quality to see whether problems arise before or after the coffee leaves the farms.

The revised proposal might combine land stewardship with separate post-harvest controls. Each component needs its own purpose and budget. A sustainability label should not obscure which activity is expected to solve which problem.

The project develops as the evidence improves. Its scope should follow the diagnosis rather than preserve the first idea unchanged.

4. Establish what the carbon outcome could count toward

Moonbucks’ sustainability team now tests the proposed carbon case separately from the sourcing case. Is the objective a measurable change in Moonbucks’ value-chain emissions, verified credits for separate voluntary use, or distinct outcomes under carefully defined arrangements?

Scope 3 covers value-chain emissions. A purchasing relationship alone does not prove that a farm intervention can be included in Moonbucks’ inventory. The team needs an applicable accounting method, defensible boundaries and evidence supporting attribution.

SBTi’s FLAG Guidance (forest, land and agriculture), version 1.2, says purchased credits used as offsets cannot meet near-term FLAG or energy and industry targets. Eligible land-based removals are subject to accounting requirements.3 Moonbucks needs to test its proposal against those rules before including an outcome in its targets.

For Moonbucks’ Jimma proposal, maintaining existing trees and establishing new vegetation could involve different carbon questions. Specialists must examine the baseline and additionality, meaning what changes because the project proceeds. They must also assess measurement and the risk that stored carbon is lost. CCC’s MRV and additionality article introduces those tests.

Until that work is complete, Moonbucks should not budget an assumed Scope 3 reduction or credit-sale receipt. Direct emissions reductions remain the priority.

5. Build a financial case that survives weaker assumptions

Moonbucks’ finance team would now build a multi-year budget. UNEP’s State of Finance for Nature 2023 compares current finance with the investment needed to meet climate, biodiversity and land-restoration goals.4 The company would cost its proposed activities, farmer participation and ongoing monitoring. Verification, where required, is a separate expense. Maintenance and responsibility for replacing failed plantings must remain visible after the initial establishment budget ends.

Operational benefits need equally careful treatment. If fewer rejected lots reduce emergency purchasing, count that saving once. Do not add “supply resilience” as another financial benefit when it represents the same avoided cost.

Moonbucks should compare a base case with slower benefits, higher implementation costs and no carbon revenue. It should also distinguish production outcomes from quality and shipment outcomes. A single good harvest would not prove that the landscape intervention caused better delivery performance.

A project can remain worth funding even when its carbon case needs more work. That decision must rest on the operational evidence and the company’s objectives, without unsupported environmental claims.

6. Fund a pilot with a clear expansion decision

Moonbucks’ first approval would fund a bounded pilot, rather than commit the entire sourcing program. Before spending, Moonbucks would agree on participating farms, responsibilities and the evidence needed at review.

Its scorecard could track farmer participation, implementation costs and plant survival, alongside accepted coffee volumes and lot-quality results. Carbon measurements would follow the selected method. Farm-level traceability must connect the intervention to the actual sourcing relationship.

Suppose Moonbucks’ review later finds that storage changes explain most quality improvements, while the land measures need longer observation. Those findings would shape the next decision: expand the proven component, adjust the landscape work or pause further spending. They would not justify crediting all improvements to tree planting.

This gives nature-based carbon investments a practical place in a multi-year strategy. Funding increases as the evidence supports it, and the project can change direction before a larger commitment.

Discuss a sourcing opportunity with CCC

Carbon Credit Capital’s nature-based supply-chain investment service uses its Dual-Value Model to examine supply-chain economics alongside potential sustainability outcomes.

Schedule a consultation to discuss your sourcing exposure and the questions to resolve before allocating capital.

Sources

  1. Intergovernmental Panel on Climate Change (IPCC), Climate Change 2022: Mitigation of Climate Change, Chapter 7, Agriculture, Forestry and Other Land Uses, section 7.4.3.3 (Agroforestry).
  2. World Business Council for Sustainable Development (WBCSD), Nature-based Solutions Blueprint, 5 June 2024.
  3. Science Based Targets initiative (SBTi), Forest, Land and Agriculture Science-Based Target-Setting Guidance, version 1.2, March 2026, section 3.1.4, pp. 37–38.
  4. United Nations Environment Programme (UNEP), State of Finance for Nature 2023, 2023.
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Carbon Footprint

How to buy plastic credits, and what to check before you do

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A plastic credit funds the collection of plastic waste in places where no formal system exists to collect it. Each credit represents a measured, independently audited quantity of plastic taken out of the environment or returned to use, tracked on a public registry.

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Carbon Footprint

EU carbon credit claims after 27 September 2026

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EU carbon credit claims changed on 27 September 2026, the day the Directive (EU) 2024/825 began to apply across the European Union. The change is narrow. It changes how a company can talk about the credits it buys. A product can no longer be called neutral on the strength of compensation alone; however, every specific, evidenced statement about what a company measured, reduced, and funded stays fully available.

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