Helping LEGO certify sustainable production facilities
In the future, all of LEGO Group’s manufacturing facilities will have sustainability as the guiding principle. Both new and renovated buildings will be certified according to the sustainability standard LEED (Leadership in Energy and Environmental Design). Ramboll has formulated the basis for decision making, which, puts tangible value on certification of the company’s buildings using real business cases, and thereby illustrates how sustainability efforts can be quantified with a measurable investment value.
Pernille Louise Klausen
Chief ConsultantT: +45 51618405
Cecilia Estlander Kønigsfeldt
ConsultantT: +45 5161 1615
Business Cases & Benchmarking
The decision to certify LEGO’s buildings according to sustainability standards contributes to LEGO’s overall objective to make their core production sustainable by 2030.
”We decided to verify sustainability of our manufacturing facilities globally, by a third-party according to acknowledged certification standards, to ensure measurable and visible results. The decision to attain certification obligates all parties involved in the projects – both internally and externally – and as a company, we establish a benchmark on which we can ensure a continuously sustainable development of our building portfolio. This will also make it more credible to communicate externally, having an independent source to verify our efforts,” says Andrew McMullen, Director, Environmental Impacts Team, LEGO-Group.
Choosing the right certification system
With a worldwide building portfolio, the choice of a certification system is not an insignificant decision. That’s why a thorough preparation was essential.
”We carried out a comprehensive analysis of selected solutions based on strategic parameters that are important for the LEGO Group. The analysis was supported by five business case simulations, that give insight into the costs and benefits related to implementing the selected system according to various levels of ambition. On this basis we made our recommendation for the choice of a certification system and process for implementation,” says Pernille Louise Klausen, who is client advisor and Ramboll’s project manager on this assignment.
The project was carried out in close collaboration between Ramboll’s technical and financial experts.
Implementing LEED (Leadership in Energy and Environmental Design)
The next step for the LEGO Group is to implement LEED in the processes they use for their building projects and to ensure that it is implemented in the individual projects. The business case simulations carried out have provided the LEGO Group with a strong indication of which investments they should expect to carry out in the individual projects, to ensure that the long-term effects can be realised.
The LEGO Group has selected the certification system, based on a five-step process:
Ramboll’s five-step approach
Step 1: Comparative evaluation
A comparative evaluation of various sustainability programmes was conducted to identify a system that supports the LEGO Group’s corporate vision and focus areas. In this step, the parameters to evaluate the system were identified in cooperation with a wide variety of the LEGO Group’s stakeholders.
Step 2: Screening of existing facilities
Ramboll screened LEGO Group’s existing facilities in terms of performance based on the perspective of the selected sustainability programme, to establish a basis for comparison.
Step 3: Definition of ambition level
Together with the LEGO Group, Ramboll defined the level of ambition; on what level the LEGO Group would like to perform within the chosen sustainability programme level (silver, gold or platinum) and how to achieve this through the system’s most relevant sustainability parameters.
Step 4: Development of five business case scenarios
Once the ambition level was defined (silver and gold), Ramboll identified the necessary construction- and building-related investments to attain silver and gold levels for within the three of the company’s current in three countries. Ramboll developed five scenarios in all – according to LEGO Group’s request for three gold scenarios for all factories together, with an extra extended gold and silver scenario for one of the factories.
Step 5: Cash flow analysis
In the final step, Ramboll carried out a cash flow analysis based on the necessary changes in CAPEX and OPEX investments for each of the five different scenarios. This resulted in five net present values (NPV) for each scenario, of which three were positive.