Lego plans to ditch oil in its bricks for pricier renewable plastic

Lego, which sells billions of plastic bricks yearly, has examined over 600 completely different supplies to develop a brand new materials that may fully change its oil-based brick by 2030, however with restricted success.

Now, Lego is aiming to step by step carry down the oil content material in its bricks by paying as much as 70% extra for licensed renewable resin, the uncooked plastic used to fabricate the bricks, in an try to encourage producers to spice up manufacturing.

“This implies a major improve in the price of producing a Lego brick,” CEO Niels Christiansen informed Reuters.

He mentioned the corporate is on monitor to make sure that greater than half of the resin it wants in 2026 is licensed in response to the mass steadiness technique, an auditable method to hint sustainable supplies by means of the provision chain, up from 30% within the first half of 2024.

“With a family-owner dedicated to sustainability, it’s a privilege that we will pay further for the uncooked supplies with out having to cost clients further,” Christiansen mentioned.

The transfer comes amid a surplus of low-cost virgin plastic, pushed by main oil firms’ investments in petrochemicals. Plastics are projected to drive new oil demand within the subsequent few a long time.

Lego’s suppliers are utilizing bio-waste corresponding to cooking oil or meals business waste fats in addition to recycled supplies to interchange virgin fossil fuels in plastic manufacturing.

The marketplace for recycled or renewable plastic continues to be in its infancy, partly as a result of most accessible feedstock is used for subsidised biodiesel, which is combined into transportation fuels.

In accordance with Neste, the world’s largest producer of renewable feedstocks, fossil-based plastic is about half or a 3rd of the value of sustainable choices.

“We sense extra exercise and willingness to take a position on this now than we did only a yr in the past,” mentioned Christiansen. He declined to say which suppliers or give particulars about value or volumes.

Rival toymaker Hasbro (HAS) has began together with plant-based or recycled supplies in some toys, however with out setting agency targets on plastic use. Mattel (MAT) plans to make use of solely recycled, recyclable or bio-based plastics in all merchandise by 2030.

Round 90% of all plastic is created from virgin fossil fuels, in response to foyer group PlasticsEurope.

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