Q&A - Mattel

Mattel - driving positive social and environmental change

Mattel’s VP Global Sustainability, Pam Gill-Alabaster, chats to Toy World about how the company is working to reduce its carbon footprint and its approach to sustainability.

To date, what has Mattel’s overarching approach to sustainability been?

Our aim is to contribute to a more diverse, equitable, inclusive and sustainable future. We are committed to being a responsible corporate citizen and actively supporting the communities in which we live, work and play. In 2021, we updated our ESG strategy, goals and priorities, aligning them with three pillars: Sustainable Design and Development (what we do), Responsible Sourcing and Production (how we do it) and Thriving and Inclusive Communities (those we impact).

What major milestones has the company made recently, in terms of initiatives, change of materials etc., in reducing its environmental impact?

In 2020, we achieved 97% recycled or Forest Stewardship Council (FSC)-certified content in the paper and wood fibre used in our packaging and products, exceeding our goal of 95%, and were awarded a 2021 FSC Leadership Award for excellence in use of FSC-certified products and commitment to responsible forest management. We also launched Mattel PlayBack, a toy take-back programme, to recover and reuse materials from outgrown Mattel toys for new products.

Last year, we introduced Barbie Loves the Ocean, the first fashion doll line made from 90% oceanbound plastic to a fantastic consumer response. We also announced Drive Toward a Better Future, our product roadmap to make all Matchbox die-cast cars, play sets and packaging, with 100% recycled, recyclable, or bio-based plastic materials by 2030. Additionally, we have launched sustainable products from Fisher-Price and Mega, and introduced Uno Nothin’ But Paper, the first Uno deck that has removed cellophane from its packaging and is now 100% recyclable. In fact, Mattel removed the cellophane from 100% of standard, paper-based Uno decks in 2021.

But it is not just our products and packaging that we are working to improve. We aim to optimise resource consumption and reduce absolute Scope 1 and Scope 2 greenhouse gas (GHG) emissions by 50% and, in addition, achieve zero manufacturing waste by 2030.

We are proud of the fact that in 2021 Mattel achieved 100% pay equity for all employees performing similar work globally. We remain committed to ensuring we uphold our position on pay equity and to creating a culture of belonging. Today, women comprise 58% of the global nonworkforce and 49% of all management positions. Mattel is leading positive change in an authentic, meaningful way with recent recognition from numerous organisations that recognise best places to work.

How have consumers reacted to these developments?

PlayBack has been received very positively in both the US and Europe, and it has provided a significant amount of learning in the first six months since launch. Some of that learning will inform product design and material considerations that aim to make products easier to recycle and better for the circular economy in the future. Consumer response to sustainable products like Barbie Loves the Ocean has been similarly positive and we look forward to launching additional sustainable products in 2022.

Is the demand for more sustainable toys there? And how much would you say their appeal depends on the end price?

At Mattel we believe sustainability creates value for people, planet and our business. It’s not just a trend, but an opportunity for companies to generate value to society through their corporate values.

Earlier this year, we conducted global consumer insights research on attitudes toward sustainable toys. Seven in ten parents claim that sustainability is important in their everyday decision making. Additionally, kids, and specifically ‘Generation Alpha’ continue to gravitate toward purpose-driven brands that stand up for issues they care about. Three in four say that’s important to them. However, the study also revealed that mainstream consumers are not yet willing to pay more for toys that are made with materials that are better for the planet. We are confident however, that this dynamic will change overtime as it has for organic food, sustainable fashion and clean beauty.

How will Mattel be ramping up its efforts in 2022? What new products will we see as a result?

We will continue to implement programmes and initiatives that advance our progress toward our product, packaging, operating footprint and DE&I goals.

Our ambition is to advance principles of circular design in both our toy products and packaging. We will continue to invest in tools and training that enable our product and packaging engineers and designers to make products and packages that are better for the planet. This year we will introduce more sustainable products and programmes from Barbie and Matchbox, as well as the launch of our new Green Town line from Mega, which has been designed to help children learn about activities like waste sorting and recycling, buying local produce and protecting important animal species like honey bees.

Recognising that training is critical to our approach, in 2021, we conducted three circular design training workshops, led by Ideo, with our design and development, brand marketing, procurement and global supply chain teams. In 2022, we will continue investing in employee training and in tools to optimize our product and packaging for environmental performance and for a circular economy.

To achieve our GHG emissions reduction goal, we plan to use multiple levers, including reducing the amount of energy we consume through building and equipment upgrades, more automated controls, as well as purchasing electricity from renewable sources. We will also consider purchasing renewable energy certificates (RECs) that provide more renewable energy to the grid, and carbon offsets or credits.

As part of our approach to waste management, we are conducting on-site waste audits of our owned and/or operated sites to determine the causes, sources, types, volumes, and costs of waste being generated. Equipped with this information, we are developing site-specific strategies with a focus on a waste-minimisation hierarchy – reduce, reuse, and recycle – and looking for opportunities to share best practices across our sites. Our ambition is to send zero waste to landfill across all our manufacturing sites by 2030.

At Mattel, we believe we are at our best when every member of our team feels respected, included and heard – when everyone can show up as themselves and do their best work every day. That is why we have implemented numerous programmes to promote diversity and inclusion, and advance representation and equity in our workplace and the communities where we operate, including Play Fair, a multi-faceted initiative that articulates the actions we are taking to address the racism, injustice and violence against the Black community.

We are also establishing external partnerships to build our knowledge and ability to collaborate to solve shared challenges with like-minded organisations like the Ellen MacArthur Foundation, Sustainable Packaging Institute, Business for Social Responsibility, Sustainable Brands, the GreenBiz Executive Network, Products of Change and the International Council of Toy Industries (ICTI) Ethical Toy Program, among others.

Packaging can often form a large part of a product’s eco footprint. How is Mattel addressing this particular element of product development?

We are applying principles of circular design to our packaging in support of the circular economy.

Our enhanced efforts are concentrated in four principles of circularity – Reduce: Use less material; Replace: Substitute virgin, no sustainable materials with post-consumer recycled materials or materials derived from renewable sources; Reuse: Develop packaging that is part of the play pattern of the product or can be used for storage; Recover: Optimise our process for materials recovery and reuse, including adding consumer communications on packaging on how to responsibly recycle.

We have made significant progress on packaging sustainability. Over the past decade, Mattel has taken actions that have led to meaningful materials reduction in packaging and increased its sourcing of packaging materials that are better for the environment.

In recent years, we have introduced the Mattel Packaging Toolkit as a resource for our packaging engineering and design teams to use as guiding principles for circular design. The Toolkit includes recommendations to reduce or right-size packaging, implement closed box designs, and more.

We are also specifically targeting blister packs and windowed cartons for reduction by minimizing the size of plastic windows in boxes, where possible, or eliminating them entirely. In 2020, the vast majority of our blister packs and window cartons contained 25% recycled PET (polyethylene terephthalate) plastic and we are working diligently to increase that to 30% in 2022. The master cartons in which our packaged products are delivered to our retail partners have also been enhanced with a view to reducing our environmental footprint. We have changed the design of our master cartons from double-wall to single-wall corrugates, which are sourced from more than 90% recycled fibre.

Long term, what are Mattel’s sustainability goals?

Mattel aims to contribute to a more diverse, equitable, inclusive and sustainable future. Trust is foundational to everything we do. Our relationship with our people, consumers, customers, business partners and communities is built on their belief that we will do the right thing and live up to our commitments. This requires that we act as a responsible corporate citizen, pursue social, economic and environmental sustainability, and promote diversity, equity and inclusion. We earn trust by operating with integrity and transparency and being true to our mission and purpose. We believe that Mattel can be a force for good by creating value for our stakeholders and at the same time contribute to a better future for the next generation.

In 2021, Mattel refreshed its ESG strategy, established new goals and priorities. Our seven public facing goals are focused on material impact areas where we feel we can make a meaningful difference.

Our product and packaging goals are focused on the development of innovative products and experiences that are better for our world while our operating footprint goals are focused on optimising our resource consumption, reducing waste and shifting toward renewable and low-carbon energy sources.

Our DE&I goals are focused on supporting diverse, equitable and inclusive communities where we live, work and play.

What role can Mattel’s retail partners play in communicating the sustainability message?

Many of our customers are well along in their own sustainability journeys and have made public commitments to more sustainable products and packaging, GHG emissions and waste reduction, ethical sourcing and creating positive social impacts and regeneration in the communities where they operate. We are always looking to work with other like-minded organisations in support of the transition toward the circular economy and to go further, faster in collaboration with others who share our views on a more sustainable future.

How are Mattel’s marketing strategies helping consumers understand the advantages of sustainable toys and packaging?

Our brands are uniquely positioned to leverage their products, platforms and trusted relationships with consumers, to create cultural conversation can drive positive social and environmental change. We aim to create products and experiences that are better for the environment, as well as products that are more inclusive, accessible, and representative of the children that play with them.

Is there anything else you’d like to add?

Our purpose driven brands have an important role to play, creating culturally relevant, emotional connections with kids and families. Through brand purpose we add value not just to the lives of our consumers, but also more broadly to society. We take pride in the fact that our brands play a leadership role in culture, setting positive examples which inspire measurable actions to help families live better today, and create a more inclusive, sustainable future for all.