Lego, the renowned toy manufacturer, has decided to abandon its initiative to produce bricks from recycled bottles. This decision comes as a setback to the company’s ambitious goal to reduce carbon emissions. In 2021, Lego had announced its aim to manufacture bricks without the inclusion of crude oil within a span of two years. However, recent findings revealed that the utilization of the new material did not lead to a reduction in carbon emissions.
For our young business and economics enthusiasts, let’s delve deeper. Companies worldwide are increasingly focusing on sustainable practices, given the rising concerns about environmental degradation. Lego’s attempt was part of this global trend. The company had previously developed prototype bricks made from polyethylene terephthalate (PET) bottles, with some added chemicals, hoping it could serve as an alternative to oil-based bricks. However, after over two years of rigorous testing, it was found that using recycled PET did not decrease carbon emissions. The reason? The production process required additional steps, consuming more energy.
Lego’s CEO, Niels Christiansen, commented that there isn’t a “magic material” that can address the company’s sustainability challenges. Despite this setback, Lego remains steadfast in its commitment to produce bricks from sustainable materials by 2032. The company is investing more than $1.2 billion in sustainability initiatives up to 2025, aiming to reduce its carbon emissions by 37% by 2032.
This situation offers a valuable lesson on the complexities businesses face when trying to adopt sustainable practices. It’s a testament to the challenges and intricacies of balancing environmental concerns with practical feasibility.
THINK LIKE AN ECONOMIST!
Q1. Explain what is meant by being ‘sustainable’.
Q2. Discuss whether a company like Lego should invest such huge amount of money in sustainability initiatives.
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