LEGO Incentivises Entire Workforce for Climate Action

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by KnowESG
KnowESG_LEGO Incentivises Entire Workforce for Climate Action
Image courtesy of https://www.amsty.com/

LEGO joins a growing trend of companies linking compensation to sustainability efforts.

However, their approach is unique: it extends these incentives beyond leadership to include all salaried employees globally.

This new performance metric (KPI) aims to engage employees worldwide in achieving LEGO's ambitious climate goals: a 37% reduction in absolute carbon emissions by 2032 and net zero by 2050.

The company explains, "This KPI tracks carbon emissions from operations (factories, stores, offices) and business travel, comparing it to the number of bricks produced. This creates a carbon intensity metric to monitor progress."

Starting in 2024, a portion of salaried employee bonuses will be tied to annual emissions performance. Over time, this programme will expand to encompass more aspects of their environmental footprint (Scope 3 emissions).

Broader Employee Engagement for Climate Action

While other companies tie executive compensation to sustainability metrics, LEGO's inclusion of all salaried employees is a great step. This approach has the potential to substantially increase engagement among over 18,000 employees whose daily decisions directly impact LEGO's environmental performance.

As Jamie Beck Alexander, formerly of Project Drawdown, stated in 2021, "Climate change requires everyone's involvement, not just those with 'sustainability' in their job title."

LEGO's Multi-Faceted Approach to Sustainability

LEGO's commitment extends beyond employee incentives. They are actively researching sustainable alternatives to the over 60 billion bricks produced annually and implementing take-back and recycling programmes to increase circularity.

By combining employee engagement with product innovation and responsible waste management, LEGO demonstrates a comprehensive strategy for achieving its ambitious climate goals.

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Source: Sustainable Brands

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