LEGO Incentivises Entire Workforce for Climate Action

Published on:
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.

For more company-related news

Discover an extensive network of ESG providers here

Source: Sustainable Brands

Share:
esg
esg
esg
esg

Companies Headlines

World’s First CO2 Capture Filter Gigafactory Opens in BC

World’s First CO2 Capture Filter Gigafactory Opens in BC

BKV, CIP Form Joint Venture to Invest $500M in Carbon Capture

BKV, CIP Form Joint Venture to Invest $500M in Carbon Capture

Amazon Says Net Zero Pledge Unchanged by Trump Policies

£16m Recycling Facility Set to Modernise UK's Waste Sector

Ex-Tesla Worker on Getting Fired and Calling Out Elon Musk

Enagás, Calcinor Partner to Cut 900,000 Tonnes of CO2 Annually

Nviron and Npontu Catalyse ESG Growth in Africa

$500M Investment by Republic Services Targets Bottle Recycling

Consortium Receives Incentive to Expand Solar Power in Malaysia

Entergy Announces $37B Clean Energy Investment Plan