Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic performance
• Materials
• Energy
• Water
• Emissions
• Effluents and Waste
• Employment
• Occupational health and safety
• Diversity and Equal Opportunity
• Child Labor
• Supplier human rights assessment
• Local Communities
• Anti-Corruption
• Customer Health and Safety
• Product and Service Labeling
• Marketing Communications
• Climate Change

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• All employees and governance body members have received communication regarding anti-corruption.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• The LEGO Group’s Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI 4.0

Certifications: Null

Third-party Assurance: Independent Practitioner’s Limited Assurance Report

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Children
• Environment
• People

Environmental Achievements

• Achieved 100% renewable energy balance through investments in offshore wind and onsite renewable energy.
• Reduced carbon footprint per kilo of bricks produced by 2.9% compared to 2016.
• Recycled 91% of all waste, including 100% of plastic waste from molding machines.
• Announced a Science Based Target to reduce absolute carbon emissions by 37% by 2032.

Social Achievements

• Reached over 3.2 million children with Learning through Play programs.
• Launched ‘Build and Talk’, a digital safety campaign reaching over 55 million families.
• Introduced extended paid parental leave globally (26 weeks for primary caregiver, 8 weeks for secondary caregiver).
• Achieved an employee motivation and satisfaction score of 82, exceeding the target of 74.

Governance Achievements

• Maintained A- leadership status for CDP Climate Change questionnaire for the 5th consecutive year.
• Signed the UN Women’s Empowerment Principles in support of gender equality.
• Women held 38% of Director+ positions, a 2% increase from 2019.

Climate Goals & Targets

Environmental Challenges

• Did not meet the 10% waste efficiency improvement target (achieved 5.8%), due to increased production and unplanned waste.
• Did not meet the 10% carbon efficiency improvement target (achieved 2.9% reduction).
• Completed only 85% of scheduled onsite supplier audits due to COVID-19 restrictions.
• Identified higher-risk non-conformities (42%) in supplier audits, exceeding the target of 30%, largely due to increased working hours related to COVID-19.

Mitigation Strategies

• Continued focus on waste efficiency and aiming for zero waste by 2025.
• Continued investment in energy efficiency, renewable energy, and green gas supplies.
• Developed an expanded ‘toolbox’ of monitoring methods for supplier audits to address travel restrictions.
• Working with suppliers to address increased working hours and return to reasonable working hours.
• Providing online training in Responsible Business Principles and establishing a capability building program with suppliers.

Supply Chain Management

Supplier Audits: 85% of scheduled audits completed in 2020

Responsible Procurement

• Responsible Business Principles

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact, UN Women’s Empowerment Principles

Certifications: ISO 14001 (all production sites), ISO 50001 (Jiaxing, China)

Third-party Assurance: PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab

Sustainable Products & Innovation

• Development of new sustainable materials

Environmental Metrics

ESG Focus Areas

• Learning through Play
• Climate Action
• Circularity
• Responsible Workplace
• Responsible Sourcing
• Responsible Child Engagement

Environmental Achievements

• Less than 1 percent of waste from factories went to landfill.
• Introduced a shadow carbon price tool into daily decision-making.
• Almost 200 LEGO® elements (more than half of boxes) are now made from renewable bio-PE.
• Ground broken on two new carbon-neutral factories in Vietnam and the U.S. (LEED Gold certification).

Social Achievements

• Reached 9.8+ million children through Learning through Play activities (3.8+ million above target).
• Reached 2+ million parents and caregivers with Learning through Play activities.
• 3,100+ LEGO employees volunteered in Local Community Engagement activities.
• All employees eligible for minimum 26 weeks (primary caregiver) or 8 weeks (secondary caregiver) paid childcare leave.
• Higher risk non-conformities in 25% of supplier audits (below the 36% annual maximum).

Governance Achievements

• Updated Human Rights and the Rights of Children Policy.
• Implemented a shadow carbon price tool to encourage low-carbon investments.
• Made Tax Strategy available in six languages and provided employee training.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to COVID-19.
• Increased carbon emissions due to high demand and production growth.
• Difficulty in completely removing single-use plastic from operations.
• Achieving 100% of scheduled on-site supplier audits due to pandemic impacts.

Mitigation Strategies

• Collaborating with suppliers through the Engage-to-Reduce programme.
• Investing in sustainable materials innovation, manufacturing technology, and supply chain improvements.
• Working with suppliers to accelerate implementable solutions for single-use plastic removal.
• Close collaboration with suppliers to resume on-site audit program once restrictions allowed.

Supply Chain Management

Supplier Audits: 94% of scheduled on-site audits completed in 2022

Responsible Procurement

• Responsible Business Principles (RBP), Engage-to-Reduce program, capability building program for suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products and processes

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: LEED Gold (for new factories)

Third-party Assurance: PricewaterhouseCoopers (limited assurance)

UN Sustainable Development Goals

• Goal 4 (Quality Education)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

Initiatives contribute to these goals through Learning through Play, sustainable materials and packaging, and carbon emission reduction efforts.

Sustainable Products & Innovation

• Bio-PE elements, recycled PET prototype brick

Awards & Recognition

• Drum award for Fly Away Isles playground (2022), Gold Play for Change 2022 award (Life skills category) for Doom the Gloom

Environmental Metrics

ESG Focus Areas

• Sustainability
• Social Responsibility
• Climate Change
• Diversity & Inclusion

Environmental Achievements

• 60% increase in spending on environmental initiatives in 2023 vs. 2022; plans to double annual spend compared to 2023 by 2025.
• Reduced total waste generated, waste to landfill, and water supplied to factories, achieving yearly target for carbon emissions from own operations.
• Pledged to achieve net-zero emissions by 2050 (scope 1, 2, and 3).
• Increased use of sustainable raw materials; 18% of resin purchased was certified according to mass balance principles (estimated 12% renewable sources).
• Replaced single-use plastic bags in LEGO boxes with paper-based ones in Europe and Asia.

Social Achievements

• Impacted 9.8+ million children through social responsibility initiatives.
• Exceeded annual target for employee motivation and satisfaction.
• Increased percentage of females employed at Director+ levels from 40.5% to 41.5%.
• Launched LEGO® Insiders membership program.
• Launched LEGO® Braille Bricks.

Governance Achievements

• Integrated sustainability into the business model.
• Introduced a pinnacle KPI linked to reducing carbon emissions.
• Closely monitors compliance with all applicable laws and regulations.
• Compulsory training for employees in areas like Competition Law, Anti-bribery & Corruption, Business Conduct and Ethics.

Climate Goals & Targets

Environmental Challenges

• Declining toy market (7% decline in 2023).
• Inflationary impact on production and distribution costs.
• Economic challenges in China.
• Meeting strict quality, safety, and durability requirements for sustainable materials.

Mitigation Strategies

• Accelerated spending on strategic initiatives to support long-term growth.
• Resilient supply chain, strong retailer partnerships, and expansion of sales channels.
• Manufacturing close to main markets to minimize distribution costs.
• Continued research and development into sustainable materials.
• Closely monitoring macroeconomic factors and their impact on the business.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Expanding manufacturing capacity and capabilities close to key markets.
• Investing in energy-efficient factories with solar farms.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and processes.

Reporting Standards

Frameworks Used: Science Based Target initiative (SBTi), UN Global Compact

Certifications: ISCC PLUS (planned for 2024)

Third-party Assurance: Not disclosed

Sustainable Products & Innovation

• LEGO® Braille Bricks
• Paper-based bags replacing plastic bags

Awards & Recognition

• World's Most Reputable Company in Global RepTrak®100 survey.