The LEGO Group is taking a decisive step toward its goal of “Zero Impact in Operations” with a sweeping initiative to eliminate natural gas from all its factories worldwide. Through a mix of geothermal energy, district heating, and waste heat recovery, the company is transforming its approach to thermal energy and setting new benchmarks for low-carbon manufacturing in Europe and Asia. In 2023, the company’s direct use of natural gas accounted for nearly 16,000 tonnes of CO₂ emissions, primarily from factory heating. The move to replace fossil fuels with renewable heat represents one of LEGO’s most technically complex challenges to date, requiring customized solutions tailored to local conditions. Despite the complexity, the company has reaffirmed its commitment to achieving full decarbonization of Scope 1 and 2 emissions by deploying region-specific renewable energy systems that balance global consistency with local innovation.

Geothermal Energy Powers Change in Hungary

In Nyíregyháza, Hungary, one of LEGO’s largest European manufacturing hubs, engineers are pioneering a full-scale geothermal energy project to permanently replace natural gas in heating operations. After two years of geological exploration, the company successfully drilled two wells reaching depths of more than two kilometers, accessing underground water reservoirs with temperatures of around 84°C. The system will operate on a closed-loop basis, circulating geothermal water through the plant’s heating network before safely reinjecting it into the ground near its original source. Once fully operational in 2028, it will eliminate the site’s dependence on natural gas entirely. Beyond its own sustainability goals, LEGO’s Hungarian project demonstrates the untapped potential of geothermal heat for industrial-scale applications across Central Europe, a region increasingly looking to renewable thermal solutions as carbon prices rise and gas markets remain volatile.

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Denmark’s District Heating Model Leads the Way

At LEGO’s headquarters in Billund, Denmark, the company has already achieved a complete transition away from natural gas. In 2024, eleven buildings were connected to Billund’s district heating grid, a system powered by more than 90 percent renewable energy. The shift is expected to prevent over 1,000 tonnes of CO₂ emissions each year. The Billund example shows how municipal collaboration can accelerate private-sector decarbonization. By integrating its operations into the local district heating network, LEGO not only reduced its own emissions but also contributed to strengthening Denmark’s broader clean energy ecosystem. The project illustrates how corporate sustainability efforts can amplify community-level benefits, creating symbiotic partnerships between industry and local energy infrastructure.

Circular Heat Recovery Gains Momentum in China

In Jiaxing, China, LEGO is experimenting with a different route toward thermal decarbonization. The company has installed a heat recovery system that captures and reuses waste heat generated by factory chillers. Since its launch in 2024, the system has already cut the facility’s natural gas consumption by half. Encouraged by the success, LEGO plans to expand the technology to other areas of the plant in the coming years to achieve a complete phase-out of gas use. The Jiaxing model reflects a growing shift among global manufacturers operating in China, where energy efficiency through heat recapture is becoming a cornerstone of industrial decarbonization. Rather than replacing systems outright, this approach optimizes existing energy flows, reducing emissions without disrupting productivity, a crucial balance for companies operating in fast-moving manufacturing markets.

Aligning with Global ESG and Climate Standards

LEGO’s decarbonization roadmap aligns closely with international sustainability frameworks, including the Science Based Targets initiative (SBTi) and the European Union’s corporate sustainability directives. As energy costs fluctuate and carbon regulation tightens, more manufacturers are focusing on localized renewable heat solutions to address Scope 1 emissions. LEGO’s strategy of combining geothermal, district, and waste heat recovery across different geographies demonstrates a flexible, data-driven model for how global companies can align corporate ESG objectives with regional energy realities. By treating each site as a distinct energy ecosystem, LEGO has created a replicable model that could guide other manufacturers toward decarbonized production. The company’s approach recognizes that climate solutions must be rooted in local opportunity, leveraging national infrastructure and renewable resource availability to achieve consistent global results.

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Toward Zero-Impact Operations

Although LEGO’s operational emissions are modest compared with heavy industrial sectors, its influence as a global brand gives its sustainability actions outsized visibility and impact. Each project from geothermal wells in Hungary to district heating in Denmark and waste heat recovery in China illustrates how a creative, engineering-led company can turn climate ambition into tangible progress. The company has not disclosed the total investment for its natural gas phase-out, but it has confirmed that renewable heat conversion remains a top priority within its multi-year sustainability roadmap. New projects are being explored in both North America and Asia, where LEGO plans to apply lessons from its early European transitions to newly built factories. Ultimately, LEGO’s mission extends beyond its own carbon footprint. The company’s vision of building “a sustainable future for children” now encompasses not only the products it creates but also the way it produces them. By combining science, engineering, and creativity, LEGO is proving that even the most familiar brands can help reshape global manufacturing into a system that balances innovation with environmental responsibility ensuring that the bricks inspiring generations of builders are made in factories that help secure the planet’s future.

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