The LEGO Group has launched a groundbreaking Supplier Sustainability Programme, urging its suppliers to take significant steps towards reducing carbon emissions. This initiative, which aims to cut emissions by 37% by 2032 and achieve net-zero by 2050, highlights the crucial role suppliers play in the company’s ambitious sustainability goals.
A Call for Collaboration
Over 99% of the LEGO Group’s carbon emissions originate from its supply chain, encompassing raw materials, machinery, and various services related to LEGO products. Recognising this, Annette Stube, the LEGO Group’s Chief Sustainability Officer, emphasised the necessity of collaboration: “A net-zero world is simply not possible unless we find solutions that extend beyond our own operations. We need to work in partnership with our suppliers to ensure a healthy planet for future generations.”
Steps Toward a Sustainable Future
The Supplier Sustainability Programme is a key component of the LEGO Group’s climate action strategy, which includes reducing energy consumption and transitioning to renewable energy. The company has already increased its solar capacity by 16% compared to 2022 and plans to double it by 2026. Additionally, an annual Carbon KPI has been introduced to monitor emissions across its factories, stores, and offices, ensuring progress toward short-term goals.
Carsten Rasmussen, LEGO Group’s COO, underscored the importance of sustainability in business practices: “Sustainability is a licence to operate and a requirement of how we do business, including how we select our suppliers. We have ideas and a pathway, but we cannot do it alone. The power of working together is crucial to creating real, lasting change and a more sustainable future.”
Key Supplier Requirements
Building on the Engage-to-Reduce programme launched in 2014, the new Supplier Sustainability Programme outlines specific actions suppliers must take:
– Provide data on carbon emissions associated with their products and services.
– Set near-term targets for emission reductions by 2026 and further reductions by 2028.
– Collaborate with the LEGO Group to develop initiatives to meet these targets, such as improving facility efficiency, switching to renewable energy, and finding less carbon-intensive transportation methods.
Starting this year, suppliers will be required to submit annual reports detailing their progress. The LEGO Group will support these efforts by sharing knowledge, particularly in carbon accounting, and offering access to a team of sustainability experts.
A Blueprint for Others
The LEGO Group’s Supplier Sustainability Programme is more than a call to action—it’s a comprehensive framework designed to foster collaboration, innovation, and sustainable practices across the supply chain. This initiative sets clear steps and goals, encouraging suppliers to significantly reduce their carbon emissions and embrace sustainable practices.
The programme’s success relies on the collective effort of all stakeholders. By setting near-term and long-term emission reduction targets, providing real-time data insights, and offering access to sustainability expertise, the LEGO Group is creating a model that others can follow. The adoption of this framework can lead to:
1. Industry-Wide Transformation: As more companies in the supply chain adopt these sustainable practices, the ripple effect could lead to a significant reduction in overall industry carbon emissions. This transformation can set new benchmarks for environmental responsibility in the manufacturing and logistics sectors.
2. Enhanced Innovation: Encouraging suppliers to innovate and develop new technologies or methods to meet sustainability targets can lead to breakthroughs in energy efficiency, renewable energy adoption, and low-carbon transportation solutions. This can stimulate a wave of technological advancements that benefit the entire industry.
3. Stronger Partnerships: The collaborative nature of the programme can strengthen relationships between the LEGO Group and its suppliers, fostering a sense of shared purpose and mutual support. This can lead to more resilient supply chains, better prepared to handle disruptions and challenges.
4. Improved Brand Reputation: By taking a leading role in sustainability, the LEGO Group enhances its brand reputation as an environmentally responsible company. This can attract like-minded partners, customers, and investors, further promoting sustainable business practices.
5. Regulatory Compliance and Leadership: As governments around the world increasingly focus on environmental regulations, companies that proactively implement such sustainability frameworks will be better positioned to comply with new laws and regulations. Moreover, they can influence policy by demonstrating effective and scalable solutions.
6. Long-Term Cost Savings: Sustainable practices often lead to increased efficiency and reduced waste, resulting in long-term cost savings. Companies that adopt the framework can benefit from lower energy costs, reduced material usage, and other operational efficiencies.
In conclusion, the LEGO Group’s Supplier Sustainability Programme is a visionary blueprint that, if successfully adopted and implemented, can drive significant positive change across the entire supply chain and beyond. By building a foundation of sustainability, innovation, and collaboration, the LEGO Group is not only working towards its own environmental goals but also paving the way for a greener and more sustainable future for all.
The Role of Real-Time Data and Insights
To ensure the success of this programme, implementing supply chain and climate impact visibility software is essential. This technology provides real-time data insights that are crucial for Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) to make informed, business-critical decisions.
For the LEGO Group, real-time tracking of Scope 3 emissions from their own and their partners’ shipments will be particularly valuable. This capability allows them to monitor emissions as they occur, enabling a more agile and responsive approach to achieving their sustainability goals. By continuously observing emission changes, LEGO can more effectively adjust their strategies to mitigate shipping-related emissions, ensuring they stay on track to meet their environmental targets.
Beyond achieving environmental targets, real-time visibility will allow the LEGO Group and their partners to navigate impacts on their respective supply chains more effectively. This ensures smoother operations and greater adaptability in a dynamic market environment.