Building Blocks for Supplier Sustainability: Learning from LEGO
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Recently, the LEGO Group announced an expanded supplier effort that builds on their “engage-to-reduce” programme. The Supplier Sustainability Programme launched in 2024 will focus on carbon reporting and actions that suppliers can take to reduce their environmental impact, in alignment with LEGO’s net zero by 2050 target. This effort represents a best-in-class approach and includes five key elements that manufacturers can adopt for their own supply chains.
Required reporting. Suppliers need to report the carbon emissions embedded in the products and services provided to LEGO. This sets the tone for ongoing discussions about ways to reduce emissions intensity and provides valuable information for activity-based Scope 3 accounting.
Interim target setting. Suppliers need to set interim targets for emissions reductions by 2026 and 2028. Taking early actions are key to building momentum toward larger, more aggressive goals. They also provide input to emerging CSDDD reporting requirements.
Alignment with code of conduct. The latest version of LEGO’s responsible business principles for suppliers includes a dedicated section “Caring for the Environment” that is consistent with the Programme goals and approach. Communications and expectations should be long-lived and coordinated between the procurement and sustainability teams.
Wide array of actions. LEGO is offering a collaborative approach to finding emissions reduction opportunities across many potential opportunities including energy efficiency, fuel switching, and improved transport methods. This accommodates the variety of solutions that may be available across the full breadth of their supply chain.
Support provided. It is challenging to find cost-effective solutions to reach GHG targets, so LEGO is offering technical consulting to suppliers enables them to move forward confidently. Independent expertise that is available when needed is essential to success in supplier engagement efforts.
Based on our experience for the past 10 years supporting global CPG companies global supply chain sustainability efforts, these program elements are consistent with true sustainability leaders. (Disclaimer: LEGO is not one of Fosterra’s clients.) We applaud LEGO’s latest commitment and hope that is serves as inspiration for many other manufacturers that are starting their journey toward a more sustainable supply chain.
Related LEGO sustainability links:
https://www.lego.com/en-us/aboutus/news/2024/july/net-zero-suppliers
About the author: Fosterra is an independent sustainability consultancy that works with global supply chains to find opportunities to reduce their carbon footprint and achieve sustainability goals. Our work provides deep insight into the risks, trends, and opportunities for improving environmental performance that we are pleased to share. www.fosterra.com