The LED and ESG: Growing Together



We love our three-letter acronyms, and these are easily intertwined. 

The LED – or light-emitting diode – and ESG – environmental, social and governance – go together like peas in a pod. 

The boom in ESG investing has incentivized things like responsible materials sourcing and sustainable production in corporate governance around the world. Big business and new technology companies increasingly rely on future-forward investors for funding. Investors and consumers are quickly becoming more aware of a company’s attitude toward corporate responsibility and their own defined ESG strategy. 

These companies appeal to eco investors in part with their ESG rating. A company’s ESG rating is a standard analysis or screening tool for sustainable investing. The demand for ESG help has led to a cottage industry of ESG consultancies, such as Rivel or Environmental Resources Management. Larger companies like Accenture and Deloitte have opened entire ESG divisions. 

ESG strategies almost always include comprehensive energy optimization plans. These strategies frequently involve material retrofits to buildings and infrastructure. Environmental factors in a company’s ESG rating include energy use, waste management and climate impact. All these factors can be addressed by a transition to LEDs, which would be categorized as an ESG investment. 

Convert to LEDs

One of the easiest ways to cut energy consumption? Convert your business to smart LED lighting.  

Want to eliminate waste that’s headed for the landfill? LEDs use natural phosphors. They don’t rely on dangerous heavy metals like mercury, so most quality LED products can be safely recycled.  

Trying to cut your carbon emissions? Decreasing electricity use reduces your carbon footprint. Smart lighting systems incorporating LEDs that utilize sensors, timers or Circadian lighting techniques to dim or turn off unnecessary lighting can boost a business’ ESG score while saving the company money. And that higher ESG score can ultimately make it easier to lure investors in the long run. 

TM66 assessments

When shopping for sustainable lighting, compare premium LED products with tools like the TM66 Circular Economy Assessment Method (CEAM-Make). TM66 was developed by the Chartered Institution of Building Services Engineers (CIBSE) and the Society of Light and Lighting (SLL). It helps consumers assess the circularity of lighting fixtures. TM66 requires evidence of the highest manufacturing standards, including real-world examples of good practice in categories like product design, manufacturing techniques, materials and services. 

With a score of 2.5, the RibbonLyte family of products from Acolyte achieved an “excellent” rating. That ranks in the highest attainable level of circularity for manufacturing. And that makes custom RibbonLyte fixtures from Acolyte an excellent choice when considering lighting fixtures with ESG in mind! 

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