Lego ties employee bonuses to annual emissions

New measure is part of the toymaker's massive sustainability investment

Lego ties employee bonuses to annual emissions

Toy company Lego Group has announced that it is linking employees' bonuses to annual emissions in a bid to be more sustainable.

In its announcement, Lego said it has a new annual key performance indicator (KPI) to motivate staff in reducing emissions in its factories, stores, and offices.

"The KPI measures carbon from our operations (scope 1 and 2 emissions) and one scope 3 emission category (business travel) and compares this with how many bricks have been manufactured over the same period, to get a carbon intensity metric that we can track," Lego said in a statement.

Scope 1 includes direct emissions from Lego factories, offices, stores, and vehicles, while Scope 2 covers indirect emissions from the energy purchased to power these facilities and vehicles.

This KPI will then play a crucial role in determining employee bonuses, according to LEGO.

"From 2024, a portion of our salaried employees' bonus payments will be tied to annual emissions. Over time we will expand it to cover Scope 3 emissions, as we progress towards our goal to become a more sustainable business," the company said in the announcement.

Major sustainability investment

Lego's latest measure is part of its $1.4-billion investment in sustainability-related activities. These include:

  • Designing buildings and sites to be carbon neutral run
  • Increasing capacity and production of renewable energy at its sites
  • Joining forces with suppliers to collectively reduce environmental impact

Lego has made a commitment in 2020 to reduce its absolute carbon emissions by 37% by 2032, consistent with the Paris Agreement's goal of keeping global warming below 1.5°C.

Last year, it also pledged to achieve net zero emissions by 2050.

Niels Christiansen, CEO of LEGO Group, said the long-term goal ensures the organisation will reduce its carbon footprint over the coming decades.

"Our immediate priority is to meet our 2032 carbon reduction targets and we're making progress across a range of initiatives," the CEO said in a previous statement.

The measures come amid growing pressure from the workforce for their organisations to be more sustainable. In fact, it has been a factor for some jobseekers when considering a new employer.

The United Nations is also pressuring organisations to be more sustainable as the world enters an era of "global boiling."

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