LED Lighting Industry ESG Thematic Report, 2023

LED Lighting Industry ESG Thematic Report, 2023

Compliance, ESG Challenges & Framework, ESG Trends

  • Published Date: Nov, 2022
  • Report ID: Astra-100134
  • Format: Electronic (PDF)
  • Number of Pages: 67

Environmental, Social, and Governance (ESG) in the LED Lighting industry

Generally, the terms “ESG” and “sustainability” are interchangeable, especially when benchmarking or disclosing data. Sustainability encompasses a wide range of green initiatives and corporate responsibility, whereas ESG has gained popularity in the capital markets and among investors.

A company's energy use, waste, pollution, conservation of natural resources, and other environmental criteria are important categories when discussing lighting. Using this specific criterion, a company can also assess their environmental risks, and how those risks have been, are, or will be handled. There are many companies taking steps towards a more socially and environmentally conscious future, and they are starting with LED lighting. The conversion of an interior and exterior lighting system to LED lights is an environmentally friendly method of lighting a building.

In addition to the fact that LED lighting is environmentally friendly and cost-effective, companies can often take advantage of rebates associated with LED lighting as well as reduce their carbon footprint.

ESG Trends

LEDs are proving to be the most efficient replacement for conventional light fixtures because of their environmental benefits. LEDs are also considered green technologies, which contribute to energy conservation on the planet. As the latest and most advanced technology in lighting (illumination), LED (Light Emitting Diodes) has gained popularity because of its advantages during an era when energy conservation has become a major concern. In modern times, LED lamps have become a viable alternative to conventional light sources like incandescent, CFLs, and metal halide lamps.

A typical LED installation has a payback of less than three years on investment (ROI) Incentives and rebates are available from utilities and state programs to encourage LED lighting use. Moreover, lighting as a Service (LaaS) is becoming more popular as a method of implementing energy-efficient lighting projects without upfront capital expenditures. LED Technology is currently being improved with greater efficacy and benefits by large portions of expenditures by world-renowned companies in R&D establishments. The LED lighting industry is filled with a wide variety of LEDs suitable for various lighting projects, including street or park illumination, metro station illumination, architecture illumination, and facade illumination. The technology of LED lighting is very efficient and provides an equal or better light quality than other types of lighting on the market. LED lighting is a very durable and long-lasting lighting system; it could completely transform the future of lighting.

The LED lighting sector is giving various environmental benefits such as the energy efficiency of LED lights is up to 90% greater than conventional lighting systems like incandescent bulbs and fluorescent bulbs. Only 10% of the energy is wasted as heat, while 95% is converted to light. Since they consume less power, the demand from power plants is reduced, resulting in a reduction of greenhouse gas emissions. The dimming capabilities of LEDs further reduce electricity consumption and contribute to energy conservation. Furthermore, LED lights are up to 95% recyclable, leaving little carbon footprint. They can be taken to recycling centers and disposed of without having to meet any special requirements. LED light replaces industrial lighting to eliminate the costs and time associated with proper disposal through registered waste carriers. This also protects the environment by preventing hazardous waste from ending up in landfills.

LEDs are also beneficial for the social aspect since they emit no harmful UV rays, which prevents the skin from becoming damaged when exposed to them for long periods of time. A properly illuminated hazard LED light solution can reduce workplace accident risks by up to 60%, improving safety for workers when working in potentially hazardous areas.

Growth of The LED Lighting Market 

In 2021, the global LED lighting market estimated for USD 55.5 billion and is expected to grow at a compound annual growth rate (CAGR) of 10.5% between 2022 and 2030. Over the next few years, the market is expected to grow significantly as construction activities in developed and developing countries grow, as well as government regulations designed to reduce the adoption of inefficient lighting technologies. A switch to LED lighting systems boosts a company's sustainability score as well as saves the company money in the long run. This impacts their bottom line drastically. Energy-efficient operations are often cash-flow positive. The upfront costs of implementing more energy-efficient solutions may outweigh the yearly savings and can contribute to a significant positive environmental impact.

Key Companies in this theme

    • Acuity Brands Lighting Inc.

    • Cree lighting

    • Dailight

    • Digital Lumens Inc.

    • Hubbel

Scope of the LED Lighting Industry ESG Thematic Report: 

    • Macro-economic and ESG-variable analysis of the industry, including regulatory, policy, and innovation landscape

    • Key insights on infrastructure developments and ESG issues affecting the theme

    • Identify key initiatives and challenges within the industry

    • Identify ESG leaders within the industry

    • Understand key initiatives and the impact of companies within the sector to fuel an informed decision-making process

    • Analysis of industry activities based on multi-media sources, including significant controversies and market sentiment

Key Benefits of LED Lighting Industry ESG Thematic Report:

    • Developing a comprehensive understanding of macro-economic, Policies & Regulations and innovations affecting the market globally

    • Key insights into Infrastructure developments and ESG issues affecting the theme

    • Identifying ESG risks and opportunities to business among leading players in the market

    • Obtaining a clear and relevant understanding of company actions, progress, and impact and find opportunities for investment

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