Lego has decided to take the hit and pay up to 60% over the odds to buy lower-petroleum plastic in a race to remove fossil fuels from its bricks, the company has announced. The Telegraph has more.
The Danish toy maker on Wednesday said it was buying more plastic resin made from renewable materials after struggling to find an alternative material for its bricks.
The company tested more than 600 materials without identifying one that could do the same job as plastic.
Instead, Lego is paying as much as 60% more for more ‘eco-friendly’ plastics compared to so-called ‘virgin’ plastic, derived directly from fossil fuels such as crude oil.
Niels B. Christiansen, Chief Executive, insisted the higher raw material costs would not mean higher prices.
He said: “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.”
Virgin plastics require a ready source of oil and are seen as bad for the environment as they encourage extraction. Lego uses around 2kg of petroleum to make 1kg of bricks.
To reduce its carbon footprint, the company has turned to plastics derived from pre-existing products, such as cooking oils.
It is now paying a premium for these products after struggling to find a new material that would allow it to stop using plastic altogether.
Lego is racing to hit its target of making all its toys from renewable and recycled materials by 2032.
It tested “hundreds and hundreds” of substances but said last year it had been unable to find a “magic material” that had a smaller carbon footprint.
The company has also struggled with using recycled plastics. It was forced to abandon plans to use recycled bottles for its bricks after realising the process would have led to higher carbon emissions than its current set-up.
Worth reading in full.
A family owner choosing to take lower profits rather than pass on higher costs is hardly a replicable business model. And for how long? 60% higher raw material costs without increasing prices is not sustainable. And presumably the cost is steep because the material is in high demand for other uses. Wouldn’t it be better just to accept that some things have to made from plastic?
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