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Lego Group to speculate $400M to speed up sustainability efforts

Lego Group is investing $ 400 million to accelerate sustainability efforts

LEGO's investment will also focus on a range of social and environmental measures to inspire children through playful learning, make business more circular and achieve climate neutral activities

The LEGO Group has announced plans to invest up to $ 400m / £ 308m over three years to accelerate sustainability and social responsibility initiatives. The investment covers both long-term investments and ongoing costs.

The company, which has taken a number of steps over the past 10 years to build a better planet for future generations, believes it is becoming increasingly urgent and important to prioritize environmental and social activities.

“We cannot lose sight of the fundamental challenges of future generations. It is important that we take urgent action now to protect the planet and future generations, ”said Niels B. Christiansen, CEO of the LEGO Group. ”

“As a company that views children as role models, we are inspired by the millions of children who have called for more urgent action against climate change. We believe they should have access to opportunities to develop the skills necessary to create a sustainable future. We will intensify our efforts to use our resources, networks, expertise and platforms to make a positive difference. "

As a next step, the company will begin phasing out single-use plastic bags that are used in LEGO boxes for packing the loose bricks. This is part of his ambition to make all packaging sustainable by the end of 2025. From 2021, recyclable paper bags certified by the Forest Stewardship Council will be tested in inboxes.

Christiansen added: “We have received many letters from children about the environment asking us to remove single-use plastic packaging. We have been looking for alternatives for a while and the passion and ideas of children have inspired us to make changes. "

Moving away from existing packaging is not an easy task and will take some time as new material must be durable, lightweight, and improve the building experience. So far, several prototypes made from various sustainable materials have been tested with hundreds of parents and children. Kids liked when the paper bags were tested in 2021 because they were environmentally friendly and easy to open.

In addition to developing and implementing sustainable materials, the investment of up to $ 400m / £ 308m will also focus on a range of social and environmental measures to inspire children through playful learning to make business more circular and carbon neutral to become operations.

The activity will result in meaningful, long-term changes that align with two United Nations Sustainable Development Goals: # 4 Quality Education and # 12 Responsible Consumption and Production:

By 2022, the LEGO Group, in partnership with the LEGO Foundation, aims to reach 8 million children a year around the world by learning through play through a range of partner activities.

It will like on its work with organizations UNICEF, Save the Children and local partners to expand programs that provide children in need with access to play and opportunities to develop lifelong skills such as problem solving, collaboration and communication. In 2019, 1.8 million children were reached through such programs. 25% of the LEGO Group's profits are used to finance the projects, activities and partnerships of the LEGO Foundation.

The LEGO system in the game offers a myriad of play options that support the principles of circular design – a product made from high quality materials that can be used and reused. The quality, durability, safety and consistency of LEGO bricks mean that they can be passed on from generation to generation. Bricks made today match those made more than 40 years ago.

Programs are being set up to encourage people to donate their beloved stones to children in need of play. LEGO Replay, which was successfully tested in the US in 2019, will be rolled out in two more countries by the end of 2022. To date, LEGO Replay has donated bricks to over 23,000 children in the United States.

The company's sustainable materials program, involving more than 150 experts, continues to develop sustainable products and packaging. In 2015, the group set itself the goal of manufacturing its products from sustainable materials by 2030. The use of organic bricks such as sugar cane, which currently accounts for almost 2% of the element portfolio, is being expanded.

It will continue research into new, more sustainable plastics made from renewable and recycled sources, and partner with research institutes and other companies, especially those developing new recycling and bio-based material production technologies, to find materials that are as durable and of high quality as they used today.

The planned investments include both costs related to the development of new sustainable materials and investments in production facilities.

The Group's production processes will be climate neutral by 2022. To achieve this, additional solar modules will be installed in all factories and the local capacity will be supplemented by the procurement of renewable energies. Further investments are being made to improve energy consumption, for example by installing new systems that use ambient air in cooling processes during LEGO brick production.

Improved waste treatment and a reduction in water consumption will further reduce the Group's operational impact on the environment. No waste will be diverted to landfill by 2025 and water consumption will decrease by 10% by 2022.

The LEGO Group will continue to work with organizations like the Ellen MacArthur Foundation, World Wild Fund for Nature, RE100, UNICEF and Save the Children to get the most impact.

Christiansen said: “At a time when the world is facing numerous challenges, companies must take measures to achieve sustainable positive effects on the environment and society. Nobody can do it alone. I urge companies, governments, parents, children and NGOs to continue to band together to create a sustainable future for our children, the builders of tomorrow. "