Toymaker Lego is on course to transition away from fossil fuels in its signature plastic bricks by 2032, aiming to replace them with more expensive renewable and recycled materials.

According to lobby group PlasticsEurope, around 90% of all plastic is currently made from virgin fossil fuels.

Also Read: Ozempic Maker Novo Nordisk Closes In On Lego As Denmark’s Most Valuable Brand: Report.

Lego, which sells billions of plastic bricks yearly, has tested over 600 different materials in search of a viable alternative to its traditional oil-based bricks.

While the company initially set a goal to develop a fully sustainable material by 2030, it has faced challenges in achieving this target. As a result, Lego is now focused on gradually reducing the oil content in its bricks by purchasing certified renewable resin, which can cost up to 70% more than traditional materials.

Citing CEO Niels Christiansen, Reuters noted that this approach significantly increases the cost of producing each Lego brick.

By 2026, Lego aims to have more than half of its required resin certified through the mass balance method, an auditable system that tracks sustainable materials throughout the supply chain. This would mark a significant jump from the 30% achieved in the first half of 2024.

Christiansen emphasized that Lego’s efforts come despite a surplus of cheap virgin plastic, largely due to major oil companies’ investments in petrochemicals, which are expected to drive new oil demand for decades.

Lego’s suppliers are utilizing bio-waste, such as cooking oil and food industry waste fat, along with recycled materials, to replace virgin fossil fuels in plastic production.

However, the market for recycled or renewable plastic remains in its early stages, with much of the available feedstock diverted to subsidized biodiesel for transportation fuels.

Neste OYJ (OTC:NTOIF) (OTC:NTOIY), the world’s largest producer of renewable feedstocks, reports that fossil-based plastic is still about half or a third of the cost of sustainable alternatives.

Meanwhile, competitors like Hasbro Inc. (NASDAQ:HAS) and Mattel Inc. (NASDAQ:MAT) are also exploring more sustainable materials. Mattel has committed to using only recycled, recyclable, or bio-based plastics by 2030.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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