Highlights

• Lego will switch to renewable and recycled plastics by 2032.
• They are paying up to 70% more for sustainable resin to reduce oil in their bricks.
• Lego aims to have over 50% of their resin certified sustainable by 2026.
• The market for recycled plastics is growing, but still new and expensive.

Toymaker Lego is on track to swap out fossil fuels for renewable and recycled plastics for their bricks by 2032. They have signed long-term deals with suppliers to make it happen.

Lego sells billions of plastic bricks every year and has tried over 600 materials to replace oil-based bricks by 2030, but so far, not much luck.

To reduce oil in their products, Lego will pay up to 70% more for certified renewable resin. This will incentivise manufacturers to produce more. Lego CEO Niels Christiansen says this will increase the cost of Lego bricks, but the company will absorb the cost without passing it on to customers.

By 2026, Lego will have over 50% of their resin certified as sustainable, compared to 30% in early 2024. Christiansen says their commitment to sustainability means they can invest in more expensive raw materials without passing it on to customers.

This comes as the market for cheap virgin plastic is growing as oil companies invest in petrochemicals. Demand for plastic is expected to skyrocket in the coming decades.

Lego’s suppliers are now using bio-waste and recycled materials to replace fossil fuels in plastic production. However, the market for recycled and renewable plastics is still new, and most of the available feedstock is going into subsidised biodiesel. Neste, the largest producer of renewable feedstocks, says sustainable plastics are about twice as expensive as their fossil-based counterparts.

Despite all this, Christiansen sees a growing appetite and willingness to invest in sustainable plastic solutions. Hasbro and Mattel are also using plant-based and recycled materials in their products. Mattel has set a target to use only recycled or bio-based plastics by 2030. Currently, 90% of plastic is from virgin fossil fuels, according to PlasticsEurope.

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Source: Reuters