The LEGO Group unveiled plans to link a portion of bonuses for all salaried employees to emissions reduction objectives, marking a significant step in the company’s commitment to combat climate change.

This initiative aligns with the LEGO Group’s broader climate strategy, initiated last year, which includes ambitious targets such as achieving net zero emissions by 2050 and investing over $1.4 billion in environmental sustainability projects over the next three years. As part of this strategy, the company aims to incorporate a Carbon Key Performance Indicator (KPI) into executive compensation by 2024 and implement responsible travel policies to curb employee travel emissions.

Under the updated performance management program, the LEGO Group introduced a new KPI to measure carbon emissions from its factories, stores, offices, and Scope 3 business travel emissions. This intensity metric, calculated in the number of bricks manufactured, serves as a crucial benchmark in the company’s efforts to reduce its environmental footprint.

With Scope 3 emissions constituting a significant portion of its carbon footprint, the LEGO Group aims to expand the KPI to encompass these indirect emissions, reflecting its commitment to emissions reduction across its value chain.