The LEGO Group Renews Investments in Carbon Reduction

LEGO commits additional £2.1 million to carbon removal portfolio

The LEGO Group announced on 25 February 2026 that it would invest an additional DKK 18 million (approximately £2.1 million) in four carbon removal projects. This brings the company’s total commitment to DKK 54 million since it began funding these initiatives. The toy manufacturer is working with Climate Impact Partners and ClimeFi to test different approaches to removing carbon dioxide from the atmosphere.

This latest investment doubles down on projects the company started funding in previous years. The announcement builds on a DKK 36 million initial commitment and a further DKK 19 million pledge made in February 2025. LEGO is testing a mix of nature-based and technology-driven methods, from planting trees to spreading rock powder on agricultural land.

For UK businesses watching corporate climate action, these investments offer a window into how large manufacturers are addressing emissions they cannot eliminate through direct cuts alone. The projects also highlight the growing market for carbon removal credits and the due diligence companies are applying to ensure these purchases deliver real climate benefits.

Four distinct carbon removal methods under assessment

LEGO’s portfolio spans four project types, each using a different mechanism to capture and store carbon. Two projects focus on biochar production, which involves heating organic waste in low-oxygen conditions. This process converts plant material into a stable form of carbon that can remain locked in soil for hundreds of years. As a result, carbon that would normally decompose and return to the atmosphere stays sequestered while improving soil health.

A third project uses enhanced rock weathering. This approach spreads finely ground rock powder across farmland, accelerating a natural process where minerals absorb CO2 from the air and convert it into stable carbonates. The method has the added benefit of improving soil fertility, though it requires careful site selection and monitoring to verify carbon uptake.

The fourth project involves large-scale reforestation. One initiative covers more than 14,000 hectares in Quintana Roo, Mexico, where the project is planting native tree species and implementing fire prevention measures. An earlier reforestation effort in the Lower Mississippi Valley in the United States spans more than 400,000 hectares and focuses on flood protection and water quality alongside carbon storage.

LEGO is also exploring experimental technologies including biomass geological storage, mineralization processes that convert CO2 into limestone, and marine-based carbon removal methods. These early-stage approaches could become commercially viable if current trials demonstrate they can scale reliably.

All projects underwent due diligence against international carbon credit standards before LEGO committed funding. ClimeFi and Climate Impact Partners, working with specialist organizations like Canopia Carbon and GreenTrees, manage the on-the-ground implementation and monitoring.

Matching a decade of supply chain decarbonization work

The carbon removal investments sit within a broader sustainability program that LEGO has been building since 2014. The company launched its Engage-to-Reduce initiative that year, requiring suppliers to report emissions data and transition to renewable energy and more efficient transport. By 2023, this had evolved into a formal Supplier Sustainability Programme with mandatory emission reduction targets for 2026 and 2028.

LEGO has committed to reaching net-zero emissions by 2050 and works with the Science Based Targets initiative to set reduction pathways for Scopes 1, 2, and 3. Scope 3 emissions, which come from the supply chain, account for more than 98% of the company’s total carbon footprint. Consequently, most of LEGO’s climate efforts focus on influencing suppliers and materials producers rather than its own facilities.

In 2023, the company increased investment in sustainable materials and technologies by 60% compared to previous years. It expanded solar capacity at production sites and began publishing annual carbon performance indicators. These measures run alongside a nine-year agreement with Climeworks for direct air capture services and trials of e-methanol as a decarbonized shipping fuel.

Over the past three years, LEGO has allocated more than $1.4 billion to environmental initiatives. The carbon removal projects represent a small but strategic portion of this total spend. By March 2026, the company plans to adopt expanded greenhouse gas reporting that recalculates its 2019 and 2023 baselines. This will provide greater visibility into emissions from plastics production, which dominates its supply chain footprint.

Why a toy manufacturer is buying carbon removal credits

LEGO’s investment strategy reflects a calculation that emission reductions alone will not be enough to meet its net-zero target. Manufacturing plastic bricks at scale generates substantial Scope 3 emissions that the company cannot eliminate entirely through operational changes or supplier requirements. Carbon removal offers a way to address residual emissions while supporting the development of technologies that could become more widely available over time.

The company is generating carbon credits from these projects through 2026. However, LEGO has been explicit that these purchases complement rather than replace direct emission cuts. Annette Stube, the company’s Chief Sustainability Officer, stated that reducing emissions in its own operations remains the priority. The carbon removal program allows LEGO to work with expert partners and contribute to solutions that may help scale effective climate action.

For businesses in LEGO’s supply chain, these investments send a clear signal about expectations. Suppliers already face mandatory reporting requirements and reduction targets under LEGO’s sustainability program. The carbon removal purchases demonstrate that LEGO is willing to invest in climate solutions beyond the minimum compliance threshold. This could influence how other large manufacturers approach their Scope 3 challenges.

The choice to fund multiple project types rather than backing a single approach reflects uncertainty about which methods will prove most reliable and cost-effective at scale. Biochar offers permanence but requires feedstock supply chains. Enhanced rock weathering depends on suitable geology and farming practices. Reforestation delivers co-benefits but takes decades to reach full carbon storage potential. By testing all three, LEGO is building knowledge about the practical trade-offs involved.

KIRKBI, the investment company owned by the Kristiansen family that founded LEGO, has matched portions of the carbon removal funding. KIRKBI committed DKK 5 million in the 2025 announcement and has supported projects valued at DKK 24 million across the program. This family office participation suggests confidence in both the climate impact and the broader strategic value of these investments.

What UK businesses can learn from this approach

LEGO’s carbon removal strategy offers several lessons for UK companies working through their own net-zero plans. First, the program shows how to structure pilot investments in emerging climate technologies without waiting for perfect information. LEGO is testing multiple methods simultaneously and working with specialist partners who manage the technical risks. This approach allows the company to learn which solutions work without committing to a single unproven technology.

Second, the investments demonstrate the importance of due diligence when purchasing carbon credits. All four projects went through rigorous assessment against international standards before LEGO committed funding. This scrutiny matters because the carbon removal market includes offerings of widely varying quality. Businesses that buy credits without proper verification risk purchasing offsets that deliver little actual climate benefit.

Third, the integration with supply chain requirements shows how carbon removal can support rather than substitute for direct emission cuts. LEGO continues to require suppliers to reduce their own emissions while separately funding removal projects. This dual approach addresses both the need for immediate supply chain decarbonization and the longer-term challenge of residual emissions that cannot be eliminated.

For UK manufacturers, particularly those in sectors with substantial Scope 3 emissions, this model could inform procurement strategies. Requiring supplier emissions data and reduction targets, as LEGO has done since 2014, creates the foundation for informed decision-making about where carbon removal might fill gaps that direct cuts cannot address.

The reforestation projects also illustrate how carbon removal can deliver benefits beyond climate impact. The Mexico initiative includes fire prevention and biodiversity protection. The Mississippi Valley project improves flood resilience and water quality. These co-benefits can strengthen the business case for carbon removal investments by aligning climate spending with other environmental and social objectives.

Key facts about the investment program

• LEGO has committed DKK 54 million (approximately £6.3 million) to carbon removal projects since beginning the program, with the latest DKK 18 million announced in February 2026.
• The portfolio includes two biochar projects, one enhanced rock weathering initiative, and one large-scale reforestation program covering more than 14,000 hectares in Mexico.
• KIRKBI, the Kristiansen family investment office, has matched portions of the funding, contributing DKK 5 million in 2025 and supporting projects valued at DKK 24 million total.
• Carbon credits from these projects are being delivered between 2024 and 2026, with all initiatives assessed against international carbon credit standards before receiving funding.
• Scope 3 supply chain emissions account for more than 98% of LEGO’s total carbon footprint, making supplier decarbonization and carbon removal critical to meeting the company’s 2050 net-zero target.
• LEGO has invested more than $1.4 billion in environmental initiatives over the past three years, including a nine-year direct air capture agreement with Climeworks and trials of e-methanol shipping fuel.
• By March 2026, LEGO will publish expanded greenhouse gas reporting covering Scopes 1, 2, and 3, with recalculated baselines for 2019 and 2023 to improve visibility into plastics production emissions.

Questions to consider for your own supply chain

Companies reviewing their net-zero strategies should ask whether their emission reduction plans adequately address Scope 3 challenges. For most manufacturers, supply chain emissions dwarf those from direct operations. LEGO’s experience suggests that a combination of supplier requirements and carbon removal investments may be necessary for credible net-zero commitments in emissions-intensive sectors.

Businesses should also consider how carbon removal fits within their broader sustainability objectives. The co-benefits from LEGO’s reforestation and soil health projects align with nature-positive goals that are becoming more prominent in UK policy and regulation. Our nature-positive investment guidance explores how companies can integrate biodiversity and carbon objectives effectively.

The due diligence LEGO applied to these projects highlights the importance of verification when purchasing carbon credits. Businesses should work with specialists who can assess project quality against recognized standards. This includes evaluating additionality (whether the carbon removal would have happened anyway), permanence (how long the carbon stays sequestered), and monitoring protocols.

For companies subject to carbon reporting requirements, LEGO’s expanded disclosure plans offer a template. By recalculating baselines and improving Scope 3 visibility, particularly in plastics production, the company is building the data foundation needed for informed climate decisions. UK businesses facing similar reporting obligations under SECR or preparing for future CSRD requirements should prioritize supply chain emissions measurement. Our carbon reporting compliance services help companies establish robust measurement and disclosure systems.

Paolo Piffaretti, CEO of ClimeFi, noted that LEGO’s early adoption of carbon removal technologies will help catalyze growth in the carbon dioxide removal industry. For UK businesses, this suggests that early engagement with emerging climate solutions could provide both strategic advantages and influence over how these markets develop. Companies that wait for technologies to mature may find themselves paying premium prices for limited capacity.

Where to find detailed technical guidance

The UK government’s Net Zero Strategy sets out the policy framework for business decarbonization and includes discussion of carbon removal’s role in meeting national climate targets. This document provides context for how corporate carbon removal investments align with broader UK climate policy.

The Science Based Targets initiative publishes detailed guidance on setting and achieving emission reduction targets across all scopes. Their resources explain how carbon removal can complement but not replace direct emission cuts within a credible net-zero strategy.

The UK government’s environmental reporting guidance explains current disclosure requirements and outlines future changes businesses should prepare for, including enhanced Scope 3 reporting expectations.

Companies exploring sustainable procurement practices alongside carbon reduction can access resources through our sustainable procurement support services, which help businesses integrate climate considerations into supplier selection and management processes.