ESG Initiatives — How LED Lighting Help Enhances Your ESG Strategy?
What is ESG?
ESG stands for Environmental, Social, and Governance — A tool used to measure an organization’s sustainability regarding environmental, social, and Governance initiatives. The term:
Environmental determine how an organization’s business operations affect natural resources and climate change.
It includes water pollution issues, waste management programs, waste material sourcing, product packaging, and many others.
Similarly, the term Social determines an organization’s approach toward social issues.
It includes employee/staff management, workplace policies, employee compensation and benefits matters, charitable contributions, etc.
And Governance determines how its executives and board of directors manage the organization.
It includes executive compensation, stockholder engagement, financial reporting transparency, avoidance of conflicts of interest, etc.
An ESG risk score is the total calculation of an organization’s performance, factoring in the above criteria.
In contrast to the environmental segment of ESG, these criteria are used to evaluate the environmental risks a company might encounter.
It also considers how the organization has managed those risks better.
ESG Standards & Score — Abbreviation!
Whereas many guidelines for standards have been designed to measure ESG scores, SASB (Sustainability Accounting Standard Board) has developed “the best 77” industry ESG standards to measure, manage, and report on sustainability segments that currently matter most to investors.
As a result, selected investors have been responsible for screening organizations based on their ESG strategies, as the ESG risk score determines a company’s performance on ESG issues.
It rates their exposure to and experience with ESG-related risks.
As LED lighting fixtures are exclusively environmentally friendly, it has become the standard and one of the preeminent steps in developing and maintaining a robust ESG strategy for any organization.
Importance of ESG Strategy:
Working on an ESG Strategy primarily aims to characterize how a company thinks, plans, and operates concerning environmental issues and social responsibility.
Investors frequently express interest in looking at the company’s ESG strategy to evaluate investment risk and performance.
Moreover, developing a comprehensive ESG strategy helps the brand’s owner demonstrate their socially conscious and healthy business approach to investors.
Besides investors, well-educated and informed consumers also show concern about these issues.
So delivering a result-driven ESG strategy will help concerned investors and consumers understand that you are well aware, prepared, and committed to becoming more sustainable in the future.
A streamlined ESG strategy includes optimization tactics on energy.
The process starts with building a solid plan to install LED lights to reduce operational costs and energy consumption.
Many organizations of various niches are now normalizing LED lighting for their properties and future investments.
How has the usage of LED impacted in Company’s ESG Strategy?
LEDs are an advanced form of lighting segment.
LEDs are integrated with current configurations such as multifunctional sensors and timers, IP65, CRI, and many more. Such features determine how lighting can be utilized best in particular areas and severely impact sustainability.
Some of the crucial benefits of LED lighting are:
=> It reduces energy and operational cost. LEDs consume 50–60% energy compared to traditional lights yet provide brighter illumination.
=> LED lighting fixtures contain no hazardous waste, such as mercury. Thus, the recycling option is always a plus point.
=> LEDs reduce carbon footprint. Organizations can decrease their overall kWh use by switching to LEDs, directly reducing overall CO2 emissions.
LED has been recognized as one of the most practical and readily available lighting technologies for cities to shift to a low-carbon economy in the next ten years.
By 2035, most lighting installations will use LED technology.
Energy savings from LED lighting could come down to 569 Terawatt Hours (TWh) annually by 2035, which equals the yearly energy output of more than 921,000 Megawatt (MW) power plants.
ESG Examples:
Since the launch of LED, many residential to small and large cap industries have replaced their fluorescent lighting fixture with LED lights.
Gradually, it has become their permanent ESG measure strategy in the industry segment. Some of the primary examples are:
Physicians Realty Trust (Healthcare REIT):-
The Physicians Realty Trust, a healthcare REIT in 2020, have switched to LED retrofits on their 3.1M square feet of property to improve ESG strategy.
As per officials, the total LED retrofit cost was $1.1M, with an average payback term of 4.1 years.
LED lights have ensured an ideal setting option for better energy efficiency, utility savings, and longer functional life.
Moreover, the firm can now recycle LEDs, unlike their previous traditional lighting fixtures.
WPT (Industrial REIT):-
WPT is an industrial REIT that has included LED retrofit solutions in its ESG Strategy in 2020.
The project includes a 1.5 million square foot building in Georgia.
This step has comprehensively improved occupant comfort and resulted in 18.4% energy saving annually since installation.
Conclusion:
LED lights have become the most reliable lighting solutions for residential, office, and industrial areas, both indoors and outdoors.
Since its launch, all facilities have undergone revolutionary transformations from traditional to LED lights.
Due to ESG initiatives, its usage has exceeded measures amongst industries, offices, schools, and large-spaced areas.
And why not? LEDs have helped them reduce their electricity cost to a significantly lower number and have provided them with long-term sustainable illumination with minimal maintenance charges.
That’s why industry owners are investing heavily in LEDs to boost their overall ESG score.If you are an industry owner looking for the best LED lighting solution.
