We are committed to delivering the magic of play to children and families responsibly, to preserve future generations of fun. We continue to focus our attention on understanding our environmental footprint, evaluating ways to minimize the impact of our operations and partnering with external organizations to help us meet our goals.
Our Climate Action Highlights
reduction in Scope 1 + 2 emissions by 2030
commitment for Scope 1 + 2 emissions by 2050
reduction in waste in owned and leased facilities by 2025
in owned and leased facilities by 2035
Our Climate Action Plan and the targets within are aligned with our commitment to act as a responsible custodian of the world children will one day inherit. We continue to make progress in reducing emissions in several areas across our footprint.
Carbon
Since 2019, we have reduced our Scope 1 and 2 footprint by 65% for Spin Master. In 2024, we acquired Melissa & Doug, which impacted our total operations footprint, adding one retail store, four offices and four distribution centres.
Scope 1 and 2 Emissions
Scope 1 emissions are inclusive of the fuel used to power our vehicles and Scope 2 emissions include the electricity and natural gas we use to power our facilities, which are all leased.
Spin Master’s energy use declined overall between 2023 and 2024 due to the divestment of the owned facility in Calais. In 2024, we had a slight increase in energy within our leased offices primarily in Asia and Canada due to operational changes. While we do have an Office Sustainability Scorecard which assesses energy usage, heat source and building certifications, final decisions on leased locations are based on a number of other factors, for example, location, cost, amenities and proximity to transport. In 2024, we consolidated two Spin Master and Melissa & Doug offices in the U.K.
Scope 3
Spin Master’s 2023 Scope 3 emissions decreased 50% compared to our 2019 baseline, but increased 19% compared to 2023. This can be attributed to an increase in the information collected, and an increase in toys manufactured. Our Scope 3 emissions include the following categories:
Category 1 – Purchased Goods and Services – This category includes Scope 1 and 2 emissions for our Tier 1 manufacturers, as well as emissions related to waste. The amount of emissions increased by 18% at Spin Master facilities due to an increased volume of products manufactured and the capture of new data for European and Mexican factories for Spin Master.
Category 4 – Upstream Transport and Distribution – This category includes upstream freight and Scope 1 and 2 emissions associated with third-party warehouses. The amount of emissions increased by 32% due to an increased amount of freight data. Some information previously classified as Category 9 - Downstream Transport and Distribution, has also been reclassified as upstream as we gained greater clarity as to how our supply chain is segmented.
Category 6 – Business Travel – Business travel is inclusive of all air travel. In 2024, we expanded the coverage of air travel providers in our inventory. The emissions associated with air travel reduced in 2024 by 19% due to the reduction in long-haul air travel. We also restated our 2023 emissions to correct errors related to radiative forcing and mileage.
Category 9 – Downstream Transport and Distribution – Downstream transportation reduced by 4% between 2023 and 2024. Some information was reclassified from Category 9 to Category 4 for Spin Master (see description in Category 4 above).
While packaging is an important component of protecting a product and maintaining presence on shelf, materials used in packaging have an environmental footprint that must be managed. We have set a number of goals to help in this effort.
We continue to look for ways to reduce plastic use and introduce sustainability into our packaging practices.
We are committed to moving towards more sustainable product materials within our toys and games while also maintain the highest quality that our consumers have come to expect from Spin Master. Our approach includes the following:
Reducing the amount of plastic used in products
Investigating biodegradable/compostable or recycled materials in our products
Simplifying product manufacturing so products can be recovered, dismantled and recycled into new products.
We have partnered with TerraCycle to provide toy recycling in the United States. TerraCycle is an innovative recycling company that has become a global leader in recycling hard-to-recycle materials, with the mission of “Eliminating the Idea of Waste®.”
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