The LEGO Group has become the first global toymaker to tie a portion of annual bonuses for all salaried employees to its ambitious emissions reduction goals.
The announcement was made via a social media post this week, underpinning the LEGO Group’s commitment to a 37% reduction of its greenhouse gas emissions by 2032 and target to reach net zero by 2050.
Recognised as an industry pioneer, it was in 2020 that the business became the first large toy company to announce a science-based emissions reduction target in alignment with the Science Based Targets initiative.
“To keep ourselves on track, from 2024 a percentage of our performance management programme for colleague bonuses will be tied to annual emissions as we take steps to reduce environmental impact across all areas of our business,” said the team in its social media post.
The new annual KPI will encourage colleagues contribute to the LEGO Group’s ambitions as it targets emissions reduction across its factories, stores, and offices. The new KPI measures carbon from the LEGO Group’s operations (scope 1 and 2 emissions) and one scope 3 emissions category (business travel). It will then compare this with how many bricks have been manufactured over the same period, to get a “trackable carbon intensity metric.”
“From 2024, a portion of our salaried employees’ bonus payments will be tied to annual emissions,” said the team. “Over time, we will expand it to cover scope 3 emissions, as we progress towards our goal to become a more sustainable business.”
Scope 3 emissions are those originating in the value chain outside of the company’s direct control and currently account for around 98% of the LEGO Group’s annual carbon footprint.
