The LEGO Group 2030 sustainable materials challenge

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1 The LEGO Group 2030 sustainable materials challenge The approach and learnings Søren Kristiansen Sr Director of Technology, Materials

2 Our mission The LEGO Group s mission is to inspire and develop the builders of tomorrow

3 Our planet promise We want to make a positive impact on the world our children will inherit

4 Our commitments Renewable energy Sustainable materials 4

5 The sustainable materials challenge By 2030, the LEGO Group will use sustainable materials in all core products and packaging

6 Quantifying the Challenge 75 billion LEGO elements sold in 2016 More than 60 different colours More than 3,700 different types of LEGO elements No compromise on quality and safety

The global plastic challenge Exponential growth in plastic consumption Greater consumer awareness of the impact of plastic waste Increased regulation of single use plastic Note: Production from

7 The global plastic challenge Exponential growth in plastic consumption Greater consumer awareness of the impact of plastic waste Increased regulation of single use plastic Note: Production from virgin petroleum-based feedstock only(does not include bio-based, greenshouse gas-based or recycled feedstock) Source: PlasticEurope, Plastics the Facts 2013 (2013); PlasticsEurope, Plastics the facts 2015 (2015)

8 Creating circularity for plastic This model from the Ellen MacArthur Foundation, which illustrates our thinking about a circular plastic economy

Commitment from our owners The ambition to use sustainable materials in all our core LEGO products and packaging is something I see as an exciting and necessary ambition for us to fulfil.

9 Commitment from our owners The ambition to use sustainable materials in all our core LEGO products and packaging is something I see as an exciting and necessary ambition for us to fulfil. It is a daunting and complex challenge, but I know we have to solve it and I am absolutely confident we can. Thomas Kirk Kristiansen, fourth generation owner of the family-owned LEGO Group Page The LEGO Group

10 The LEGO Group s sustainable materials framework

Our definition of sustainable materials A sustainable material must meet our high quality and safety standards, be environmentally and socially

11 Our definition of sustainable materials A sustainable material must meet our high quality and safety standards, be environmentally and socially sustainable and maximise the play value of our products. Each iteration of sustainable materials should reduce our environmental footprint versus its predecessor.

12 Sustainable sourcing of raw materials Page The LEGO Group

13 By 2030, all LEGO elements will be either Bio-based Recycled

14 The lifecycle of a LEGO product

15 Safe and high quality products Page The LEGO Group

Chemical testing Full ingredients list List of every raw material and decoration ink used in LEGO elements. Could any additional substance theoretically be present?

Substance migration Determine that no substance migrates from LEGO elements since children could put LEGO elements in their mouth during play.

16 Chemical testing Full ingredients list List of every raw material and decoration ink used in LEGO elements. Could any additional substance theoretically be present? Colour migration Chemical tests simulating children subjecting LEGO elements to sweat and saliva to ensure no colour pigments migrate. Substance migration Determine that no substance migrates from LEGO elements since children could put LEGO elements in their mouth during play. Hazard classification Consult and check official hazard classification databases to check if individual substances have an inherent hazard during play. Content analysis Total analysis to determine that no substances are present above legal limits or internally adopted limits.

17 Chemistry in sustainable materials STEP s 1 Scouting for trends 2 Internal assessment 3 External assessment and evaluation Realization and implementation Legal compliance Regulatory Risk Extended evaluation Final product 4Redesign Risk

18 Sustainable materials Page The LEGO Group

19 Requirements for material properties

20 Controlled friction is the key Play value F = µ x F n Design, E-modulus Deformation, tolerances Materials and combination

21 Finding the right materials

22 Corn Weat Straw (halm) Soft wood Hard wood algeas Animal fat Castor beans Oil palms CO CO2 Methane Intermediates Terephthalic acid CAS No Isophthalic acid CAS No. Hexamethylenediamine Ethylene glycol CAS No. 1,3 - Propanediol (from Succinic acid CAS No. 11 1,4 - Butanediol CAS No Lactic acid CAS No Adipic acid CAS No. 124 Cyclohexanedimethanol 2,5-Furandicarboxylic ac Furan dicarboxylic meth Acetic acid CAS No. 64 Isosorbide CAS No. 65 Diphenylcarbonate CAS Polyhydroxyalcanoic aci Polyhydroxybutyrate In Polyhydroxyalkanoate in Ethylene CAS No Levulinic acid CAS No. 12 Methacrylic acid CAS No Itaconic acid CAS No. 97 Acrylic acid CAS No polyester polyol Short chain diol Diisocyanate unknown monomers Sucrose Acrylonitrile Butadiene Styrene Corn Weat Straw (halm) Soft wood Hard wood algeas Animal fat Castor beans Oil palms CO CO2 Methane Polymers Polymers High Stiffness High elasticity (max elongation, shore hardness) Good dimensional stability (Creep & relaxation) high chemical resistance to oils and solvents (ESCR) High heat properties (Vicat, HDT) high Impact strength (Charpy, Izod) Low friction High durability (scratches, wear, fatigue resistance) Good process ability (easy to dry, recycle, demould) Possible to colour in many different colours Easy to decorate (tampo print, spray printing) High gloss Transparency Chemical substances Route to 100% biobased LCA Overall Potential as ABS substitute Terephthalic acid CAS No Isophthalic acid CAS No Hexamethylenediamine CAS No Ethylene glycol CAS No ,3 - Propanediol (from Glycerol) CAS No Succinic acid CAS No ,4 - Butanediol CAS No Lactic acid CAS No Adipic acid CAS No Cyclohexanedimethanol (CHDM) CAS No ,5-Furandicarboxylic acid (FDCA) CAS No Furan dicarboxylic methyl ester (FDME) CAS No Acetic acid CAS No Isosorbide CAS No Diphenylcarbonate CAS No Polyhydroxyalcanoic acid CAS No.? Polyhydroxybutyrate In situ from bacterias CAS No.? Polyhydroxyalkanoate in situ from bacteria CAS No.? Ethylene CAS No Levulinic acid CAS No Methacrylic acid CAS No Itaconic acid CAS No Acrylic acid CAS No polyester polyol Short chain diol Diisocyanate unknown monomers Sucrose Acrylonitrile Butadiene Styrene The LEGO Polymer House Key properties Monomers PLA PLA x x x PTT PTT x GPET GPET x x PBF PBF x x CA CA x x PE PE x PBS PBS x x x PA PA 4.10 x x x PA PA 6.10 x PEF PEF x x x PLA PLA x x PTT PTT x x GPET GPET x x x PBF PBF CA CA x x PE PE PBS PBS PA PA 4.10 PA PA 6.10 PEF PEF Polycarrot Polycarrot x x x x x x Feed stock Fructose x x Fructose Sucrose x Sucrose Castor oil Castor oil x x Ligning Ligning x Starch (glucose) Starch (glucose) x x x x x x p-xylene x x p-xylene Bio diesel x x Bio diesel Ethanol x Ethanol Methanol x Methanol Bio-BDO * x Bio-BDO * TPA from muconic x TPA from muconic acid x acid TPA from bio D-limonene TPA from bio D-limonene x TPA from bio dimethyl furan TPA from bio dimethyl furan x x Palm oil

23 Sustainable packaging Page The LEGO Group

24 By 2030, all LEGO packaging will be

25 Christmas Calendar 2017 Test launch PET trays changed to paper pulp trays Sustainable and recyclable

26 Learnings & Status Page The LEGO Group

27 Where we are on our journey Recruited over 70 specialists Established global partnerships

28 Where we are on our journey Produced the first sustainable LEGO bricks Requirements coming from products have been quantified in order to match with equivalent material property profiles. A portfolio of projects has been established in order to bring materials from research into development. New work processes have been established to support the implementation phase.

29 Join Forces

30 Join the sustainable materials community of the LEGO Group Get in touch with us: Website Join the LEGO Planet Crew

31 Thank you! Page The LEGO Group

Me.. Søren Kristiansen. Senior Director of Technology, Materials, Engineering & Quality. Joined the LEGO Group in 1988 Mechanical engineer

Me.. Søren Kristiansen. Senior Director of Technology, Materials, Engineering & Quality. Joined the LEGO Group in 1988 Mechanical engineer Me.. Søren Kristiansen Senior Director of Technology, Materials, Engineering & Quality Joined the LEGO Group in 1988 Mechanical engineer Key roles and responsibilities: Setting direction for materials