Toy market news

Mattel publishes 2020 Citizenship Report

Including updated ESG strategy and goals to reduce greenhouse gas emissions by 50% and achieve zero manufacturing waste by 2030

Mattel, Inc. today published its 2020 Citizenship Report, including updated Environmental, Social, and Governance (ESG) strategy and goals. The company plans to optimize its resource consumption and reduce absolute Scope 1 and Scope 2 greenhouse gas (GHG) emissions by 50% and achieve zero manufacturing waste by 2030.

The report also includes the company’s updated ESG strategy, as well as Mattel’s previously announced goal to achieve 100% recycled, recyclable, or bio-based plastic materials in all products and packaging by 2030 and to maintain 100% pay equity globally and increase representation of women and by ethnicity across all levels of the organization.

Mattel’s ESG strategy and goals are organized in three pillars, which represent the ESG areas where the company believes it can have the greatest impact: Sustainable Design and Development, Responsible Sourcing and Production, and Thriving and Inclusive Communities.

“As a purpose-driven company, we take our role as a responsible corporate citizen very seriously,” said Ynon Kreiz, Chairman and CEO, Mattel. “Our updated ESG strategy serves to build upon a solid foundation and leverages additional opportunities to manage our business more sustainably in a rapidly changing world. We are aiming to have a positive influence on the world around us while continuing to execute our transformation strategy and advance our purpose to empower the next generation to explore the wonder of childhood and reach their full potential.”

Under the Sustainable Design and Development pillar, Mattel’s strategy is to develop innovative products and experiences that are better for our world by integrating sustainable materials and principles of product stewardship and circular design. The company continues to make progress in support of its goal to achieve 100% recycled, recyclable, or bio-based plastic materials in all products and packaging by 2030. Last month, Mattel launched Barbie Loves the Ocean, its first fashion doll line made from recycled ocean-bound plastics.*

Mattel also recently announced Drive Toward a Better Future, its product roadmap to make all Matchbox die-cast cars, playsets, and packaging with 100% recycled, recyclable, or bio-based plastic materials by 2030, as well as Mattel Playback, a toy takeback program designed to recover and reuse materials from old Mattel toys for future Mattel products.

Under the Responsible Sourcing and Production pillar, Mattel’s strategy is to optimize its resource use in operations to reduce environmental effects and promote ethical sourcing practices and worker health and safety throughout its supply chain. The company has updated its operating footprint goal to reduce absolute Scope 1 and Scope 2 GHG emissions 50% by 2030, versus Mattel’s 2019 baseline,** in support of the Paris Agreement. To achieve this goal, Mattel plans to use multiple levers, which may include reducing the amount of energy the company consumes through building and equipment upgrades, more automated controls, as well as purchasing electricity from renewable sources.

Mattel is also aiming to achieve zero manufacturing waste by 2030.*** To accomplish this goal, the company is conducting on-site waste audits of its owned and/or operated sites to determine the causes, sources, types, volumes, and costs of waste being generated, and is developing site-specific strategies with a focus on a waste-minimization hierarchy – reduce, reuse, and recycle.

Under the Thriving and Inclusive Communities pillar, Mattel’s strategy is to create positive social impact through purposeful play and by supporting diverse, equitable, and inclusive communities where we live, work, and play. Most notably, the company has made significant progress in increasing representation of women and ethnically diverse talent and recently achieved 100% base pay equity for employees globally.****

“At Mattel, we aim to contribute to a more diverse, equitable, inclusive and sustainable future,” added Pamela Gill-Alabaster, Head of Global Sustainability, Mattel. “Our updated ESG strategy and goals, recent sustainable new product launches, and toy takeback program are all part of a broader effort to manage our business more sustainably.”

*Plastic parts made from 90% plastic sourced within 50km of waterways in areas lacking formal waste collection systems. Doll head, shoes, tablet and beach lantern accessory excluded.

**Absolute Scope 1 + 2 GHG Emissions defined as total Scope 1 GHG emissions from on-site fossil fuel consumption and fleet fuel consumption, and total Scope 2 GHG emissions from purchased electricity, steam, heat, or cooling; applies to all Mattel-owned and/or-operated sites, including manufacturing facilities, distribution centers, corporate locations, and retail stores over 20,000 square feet.

***Defined as 90% of manufacturing waste being either diverted from the landfill or incinerated with energy recovery, except where otherwise directed by local regulations.

****By Gender and by Ethnicity. Representation as of April 23, 2021 for employees performing similar work with comparable roles and experience in similar markets, excluding manufacturing labor and temporary and seasonal employees.