A Case Study About Sustainability: LEGO
Do you care about society, a good economy, and the environment? Are you one of the people who would like to leave a better world for the next generations? LEGO, the company we all know since we were kids, also had the same consideration in their mind, and it paid off with 14% growth only in 2020. The company has published sustainability commitments like making their packaging 100% renewable by 2025, having all of their products from sustainable materials by 2030, and taking initiatives for social responsibility projects. In addition to the environmental and social considerations they had, the new innovations and partnerships have also played an important role in the company’s growth.
If you wonder why it is important to be sustainable and how it can pay off so well and effectively, the “Three Ps” of sustainability must be understood. We can think of the term “sustainability” as the intersection of “people”, “profit” and “planet”. We can only keep existing in a positive state, therefore live in a sustainable world as long as these factors are kept well in mind. Nordic countries, for example, are known for their quality-of-life rankings and at the same time, they take the highest position in the sustainability ranking. It wouldn’t be a surprise to know that the sustainability of a country plays a huge role in the life-satisfaction of people living there.
When we apply this knowledge to the LEGO example, we can understand why is it important for a company to be sustainable. The first P of our sustainability puzzle accounts for the “people”, hence society. LEGO has set its commitments by having society's responses and considerations in mind and aimed for creating a sustainability mindset for children through play. As it’s published by Cone Communications’ corporate social responsibility study, 63% of Americans want the companies to care about the environmental problems and 87% will consume the products of a company that stand for what they care about. By caring about the “planet”, hence the environment, LEGO succeeded to attract more customers and increase their “profit” which is the last component of sustainability. It is also shown by the research that the companies taking actions with climate change in their mind will secure an 18% higher return on investment than companies that don’t.
With all this information, we can say that the companies that value sustainability can reduce their business cost by using renewable energy and resources, help the world to be a better place to live in by not polluting the environment, have a more positive reputation, and even increase their revenue by attracting more and more people who care about the society and nature. The more sustainable world we all aim for as the people, the companies, and the governments, the better world we can live in and leave to the next generations.