It’s an environmental and sustainability thing that has quickly become a class, status and aspirational thing. It irks me a little
I think it depends how it's done.
I know lots of people with a similar approach to me who choose to buy wooden toys from companies with transparent production, who buy second hand plastic toys and pass them on, who dress their children in hand me downs or second hand clothes, who don't make lots of international flights, etc. These people's toy choices reflect their wider lifestyle and from my perspective I find it annoying that trying to be mindful of the human/environmental cost is viewed as a status symbol.
Then there's some who have fallen down the Instagram rabbit hole and have bought into the cult products, namely wooden toys and scandi clothing. These people seem to spend a small fortune, turn their dining room into a playroom with neatly arranged toys, wet themselves with excitement when a 'drop' of new printed clothing occurs and upload photos of their post. It's better overall than putting money into less ethical company so it's a more ethical consumerism, but I find the hype and tribal element to be bizarre.
From an environmental perspective, the most sustainable purchase you can make is one you don't make, and I'm not convinced anyone who is obsessed with collecting Grimms is being particularly environmentally conscious.