Lego is swapping out fossil fuels for more expensive renewable plastics as profits surge.
Transcript:
CONWAY GITTENS: I’m Conway Gittens reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.
The Dow set its third record closing high this week despite more signs of retail gloom. Dollar General missed Wall Street’s sales and profit targets. The discount retailer says its core low-income customer is struggling in this economy. Investors didn’t totally buy that and punished the stock with a 30-percent plunge.
In other news: Lego is making changes to its iconic bricks in order to make them more environmentally friendly. The toymaker is in search of renewable and recycled plastic – even though going green will make its toys more costly to produce.
Lego sells billions of plastic bricks a year and has made many attempts to find a sustainable source. It has already laid out plans to completely get rid of oil-based bricks by 2030, and totally switch to renewable and recycled materials for all its toys by 2032.
According to its website:“ Each year, we receive hundreds of letters from children with great ideas about how we can make a difference in the world and help care for the environment. We want them to know that we are listening, and that we are working hard to play our part in building a sustainable future and a more inclusive world.”
In 2023, Lego boosted its sustainability spending by 60 percent from 2022 levels, and plans to double that by 2025. And it certainly has the cash to do so. While other toymakers are seeing slower demand, Lego sales jumped 14 percent during the first half of the year.
Lego, however, is not alone in its green ambitions. Hasbro is using more sustainable components in its toys and Mattel has laid out plans that will kick-in at the start of the decade.
That’ll do it for your Daily Briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.
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