In $2012,$ the LEGO Group first shared its ambition to find and implement sustainable alternatives to the current raw materials used to manufacture LEGO products by $2030.$ The ambition is part of the LEGO Group$$s work to reduce its environmental footprint and leave a positive impact on the planet our children will inherit.$8$

Danish toy company LEGO announced in $2015$ that it would invest almost $$160$ million dollars into its efforts to meet the goal it announced in $2012.$ You know LEGO$$they are the colored plastic bricks that snap together to make toys ranging from Harry Potter castles to Star Wars fighter craft. The family owned company was founded in $1932$ by Ole Kirk Christiansen and has since grown to be the world$$s number one toy brand$\mathrm{.}9$

Given that LEGO and plastic seem to go hand in hand, why would the company want to give up on the material that makes their toys so successful? LEGO$$s manufacturing process relies on plastic to make highly precise plastic bricks that always fit together securely and easily. Replacing the plastic with another material that is durable, can be brightly colored, and can be molded as precisely is a difficult task. LEGO$$s leadership has decided that a strategic position based on fossil fuels is not sustainable and is making plans now to transition to a more environmentally friendly material to manufacture its products.

Switching from oil$-$based plastic might make economic sense as well. Manufacturers who rely on petroleum$-$based products must weather volatile oil prices. LEGO$$s raw materials costs could skyrocket overnight if the price of oil climbs again as it did in $2011.$ That price spike was due to conflict in Libya and other parts of the Arab world,$10$ something entirely beyond the control of any business.

Technological innovations in bio$-$based plastics may be the answer for LEGO,$11$ which is working with university researchers around the globe to find a solution to its carbon$-$footprint problem.

Critical Thinking Questions

How would you approach this issue if you were the manager in charge of sourcing raw materials for LEGO? How would PESTEL analysis inform your actions?

What PESTEL challenges is LEGO trying to address by changing the raw materials used in its products?

Explain what favorable PESTEL factors support LEGO$$s efforts.