Highlights from the 2013 non-financial performance of the LEGO Group show improvement on most parameters – from environmental issues, collaboration with suppliers to employee safety.
February 27th, the LEGO Group will publish its 2013 Annual Report covering the financial performance, as well as its 2013 Responsibility Report. As a precursor, the company today reveals highlights covering the non-financial performance of the LEGO Group for 2013.
“Our 2013 results are all important in our effort to improve our actions as a responsible company. As we expand globally, we are determined to leave a positive impact on society, and the planet that our children will inherit. This is reflected in all areas of our business – be it toy safety, becoming more energy efficient in our production, improving our employee safety culture, our collaboration with suppliers on behaving responsibly and the way we market our products to children,” says Jørgen Vig Knudstorp, President and CEO of the LEGO Group.
• In 2013, the energy efficiency at LEGO production sites increased by 6.7%
• Since 2009 the LEGO Group has in total increased its energy efficiency by more than 30%.
• In 2013, the LEGO Group entered a Climate Savers partnership with World Wildlife Fund , underlining the Group’s commitment to decrease its CO2 emissions – from LEGO production sites and the entire value chain.
• In 2013, the number of work-related injuries with absence was 36, which compared to 2009 is a reduction of more than 40% and equals an all time low injury rate of 1.7.
• Since 2009 the LEGO Group has increased the number of employees by approximately 5000.
Energy efficiency increased
“We sincerely believe our biggest contribution to society takes place through the play experience we give to children across the world through our products. Our products help inspire and develop children when they experience creative play. But, as we reach more and more children around the world, we also need to ensure that we manufacture and distribute our products in a sustainable manner. We are well aware that we impact our planet through our operations,” says Jørgen Vig Knudstorp.
The LEGO Group continuously works at increasing the energy efficiency in the manufacture of LEGO products. In 2013 the LEGO Group increased the efficiency by 6.7%.
“This is very satisfactory and means that over a period of just five years we have been able to increase our efficiency by more than 30%. The increase in efficiency in 2013 alone is equivalent to reducing our CO2 emissions by 6,500 ton,” says Bali Padda, LEGO Group Executive Vice President and COO.
Fewer injuries in 2013
Other than looking beyond the environmental impact of its operations, the LEGO Group also adopts employee safety as a chief focus area. The LEGO Group reported an injury rate of 1.7 in 2013, measured in injuries per million work hours.
“Our current safety level is comparable to the highest international standards, but we can improve. We had 36 injuries in 2013 in a global workforce of 11,755 employees. This improved our injury rate to our best performance ever, but we did not meet our ambitious target for the year,” says John Goodwin, LEGO Group Executive Vice President and CFO.
Driving behavioural change in this area takes time. As the LEGO Group continues to onboard a significant number of new employees, increase the safety awareness and improve reporting tools, it may result in more safety observations, near miss reports and injuries from employees. In the short run, this is likely to impact the injury rate negatively.
“But it does not change the fact that in 2013, the LEGO Group became a safer place to work, and we have come a long way in just five years. Since 2009 we have added more than 5,000 people to the Group, while reducing work related injuries by more than 40%,” says John Goodwin.
Multiplying impact via collaboration
In 2013 the LEGO Group acknowledged that it can multiply its positive impact by further collaboration with partners, suppliers and relevant NGOs. This is why the LEGO Group in 2013 partnered with the World Wildlife Fund as a member of the Climate Savers Program, and committed to reducing the total carbon impact of the entire value chain – including suppliers. The partnership is the first of its kind in the toy industry.
By the end of 2016, the ambition is to reduce the energy used to manufacture one tonne of LEGO elements by 10%, compared to 2012 – while at the same time balancing out the direct and indirect carbon emissions with renewable energy.
“We are committed to our continued promise of leaving a better world for our children, and the partnership sets a clear direction and also means that we will continue our close dialogue with our partners and suppliers during 2014,” says Bali Padda.
The LEGO Group’s annual result will be live streamed February 27th at 10.30 AM CET. To follow this, or download the recorded presentation and Responsibility Report 2013, which will be uploaded immediately after the presentation, please visit http://aboutus.lego.com/news-room.
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