Current:Home > StocksAs Lego goes green, costs will rise but customer prices won't, company says. Here's why. -OceanicInvest
As Lego goes green, costs will rise but customer prices won't, company says. Here's why.
View
Date:2025-04-19 05:19:32
Lego wants to build a more "sustainable future" by using more eco-friendly materials to create its plastic bricks by 2026, as stated in a press release.
The Lego company wants the material it uses to create its bricks to be made from 50% recycled or renewable material within the next two years, it said in a press release. The company has been working on creating a Lego brick without using virgin fossil fuel for eight years.
Currently, 30% of one colorful brick is made with resin that is certified mass balance, meaning that, on average, 22% of the material used to make a Lego brick is from renewable and recycled sources, according to Lego's press release.
"By doing this, the company aims to help accelerate the industry’s transition to more sustainable, high-quality materials," stated the press release.
Since 2023, the company has nearly doubled the amount of the resin material used to create the bricks. Last year, it used 18% of the resin, meaning 12% came from sustainable sources.
The resin's "mass balance approach" uses materials that are a mix of "both virgin fossil and renewable and recycled raw materials, such as used cooking or plant oils," according to Lego's website.
Paying more for materials, but Lego's prices will stay the same
To accomplish its eco-friendly goal of bringing down the fossil fuel content of bricks in time, Lego will pay 70% more for more certified renewable resin.
Lego, however, will absorb the cost instead of passing it to consumers, and Lego sets will not see an increase in price because of the swap in the material.
"With a family-owner committed to sustainability, it's a privilege that we can pay extra for the raw materials without having to charge customers extra," Lego CEO Niels Christiansen told Reuters.
It is doing this in the hopes that it will "help accelerate the industry's transition to more sustainable, high-quality materials."
The company also started using arMABS, which is created with recycled, artificial marble, according to a Lego news article from March. The material is commonly found in kitchen worktops, and as of 2024, 500 different Lego pieces contain the material.
Tested 600 different materials
Lego, which produces billions of bricks every year, tested over 600 materials to try and create a new medium that would ultimately replace its oil-based brick by 2032, reported Reuters,.
Despite not finding the perfect material, it has figured out what not to use.
In 2023, Lego abandoned the possibility of using a specific recycled plastic, polyethylene terephthalate (RPET), after finding that it would lead to higher carbon emissions.
Legos and the environment:Lego moves in another direction after finding plastic bottle prototype won't reduce emissions
Investing in future businesses
Plastic is expected to drive the demand for oil in the coming decades, reports Reuters.
Annually, around 460 million metric tons of plastic are produced and another 20 million metric tons are littered, all of which ends up in the environment, according to the International Union for Conservation of Nature. By 2040, that number is expected to increase significantly.
Lego's search for a plastic alternative comes amid concerns over growing concerns over plastic pollution and microplastics.
Lego's suppliers use cooking oil, food industry waste fat and recycled materials to replace virgin fossil fuels in plastic production.
The company is also focused on reducing its greenhouse gas emissions and created the new Supplier Sustainability Programme, according to its press release.
The program "requires suppliers to set targets to reduce emissions by 2026, and further by 2028," it stated.
Contributing: Reuters
Julia is a trending reporter for USA TODAY. She has covered various topics, from local businesses and government in her hometown, Miami, to tech and pop culture. You can connect with her on LinkedIn or follow her on X, formerly Twitter, Instagram and TikTok: @juliamariegz
veryGood! (2947)
Related
- Can Bill Belichick turn North Carolina into a winner? At 72, he's chasing one last high
- Think you can stay off your phone? One company will pay you $10,000 to do a digital detox
- Only 19 performers have achieved EGOT status. Here are the stars who have won an Emmy, Grammy, Oscar and Tony.
- Sheryl Sandberg, who helped to turn Facebook into digital advertising empire, to leave company board
- Global Warming Set the Stage for Los Angeles Fires
- I’m a Croc Hater–But These Viral TikTok Croc Boots & More New Styles Are Making Me Reconsider
- Elijah Blue Allman's divorce dismissal refiled amid mom Cher's conservatorship request
- GOP legislators introduce bill to suspend northern Wisconsin doe hunt in attempt to regrow herd
- Trump's 'stop
- Why Kaley Cuoco Doesn't Care What You Think About Letting Her 10-Month-Old Watch TV
Ranking
- Highlights from Trump’s interview with Time magazine
- Congress voting Thursday to avert shutdown and keep federal government funded through early March
- Mariska Hargitay, Ice-T and More Reflect on Richard Belzer’s Legacy Nearly One Year After His Death
- Google CEO warns of more layoffs in 2024 amid artificial intelligence push
- Could Bill Belichick, Robert Kraft reunite? Maybe in Pro Football Hall of Fame's 2026 class
- Taylor Swift leads 2024 iHeartRadio Music Award Noms, followed by Jelly Roll, 21 Savage and SZA
- NFL divisional round playoff odds: Moneylines, point spreads, over/under
- Texas defies federal demand that it abandon border area, setting up legal showdown
Recommendation
Most popular books of the week: See what topped USA TODAY's bestselling books list
'All of Us Strangers' movie review: A beautiful ghost story you won't soon forget
Slovenia to set up temporary facilities for migrants at Croatia border, citing surge in arrivals
Anti-abortion activists brace for challenges ahead as they gather for annual March for Life
Apple iOS 18.2: What to know about top features, including Genmoji, AI updates
Slovakian president sharply criticizes changes to penal code proposed by populist prime minister
Live updates | Israel-Hamas war tensions inflame the Middle East as fighting persists in Gaza
Why Holland Taylor “Can’t Imagine” Working Onscreen With Girlfriend Sarah Paulson