Lego plans to ditch oil in its bricks for pricier renewable plastic as profits surge

illuminem summarizes for you the essential news of the day. Read the full piece on CNN or enjoy below:

🗞️ Driving the news: Lego plans to replace fossil fuels in its bricks with more expensive renewable and recycled plastics, even as the company reports a 26% profit surge in the first half of 2024
• Sales to consumers grew by 14%, outpacing the broader toy industry, which has seen a decline due to reduced discretionary spending

🔭 The context: After testing over 600 materials with limited success, Lego aims to reduce oil content by paying up to 70% more for certified renewable resin
• The company plans to ensure that more than half of its resin needs by 2026 come from sustainable sources, using the mass balance method to trace materials

🌍 Why it matters for the planet: Transitioning to renewable materials helps mitigate the environmental impact of plastic production, aligning with global efforts to reduce reliance on fossil fuels and minimize plastic waste
• Lego's commitment may also encourage other companies to adopt similar sustainability practices, contributing to a greener supply chain

⏭️ What's next: Lego is on track to use only renewable and recycled materials in all its products by 2032
• The company’s initiative could increase the demand for sustainable plastic feedstocks, potentially driving down costs and expanding the market for renewable materials

💬 One quote: "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 Neils Christiansen said

📈 One stat: Lego’s first-half profit for 2024 increased by 26% to 8.1 billion Danish krone ($1.2 billion)

Click for more news covering the latest on corporate sustainability