Lego is paying up to 60 per cent more for plastic resin made mostly from renewable or recycled material as the world’s largest toymaker intensifies its efforts to become fossil-free, a move financed by big increases in sales and profitability.
Niels Christiansen, chief executive, told the Financial Times that 30 per cent of all the resin the privately owned Danish toymaker bought in the first half came from so-called mass-balance sources, meaning it used a blend of fossil-fuel material and recycled or renewable sources, such as used cooking oil.
“It is 40 to 50 to 60 per cent more expensive in material terms. We don’t pass that on to the consumer. It comes out of our Ebit [operating profit] line,” said Christiansen.
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