ESG Strategy – Investing in LED Lighting

by | Mar 3, 2022 | 0 comments |

Is your business working on improving its ESG strategy? Are you not sure why ESG matters or even what it is? We’ll cover everything you need to about the initiatives and why creating a strategy is the right step for your company.

Understanding ESG

Environmental, Social, and Governance (ESG) is a standard showing how companies operate in regards to environmental and social issues. Investors often look at a business’s ESG strategy when they are deciding whether or not to invest in the company.
When it is applied to lighting, the E (environmental) in ESG is the critical factor. It can cover everything from the organization’s energy usage to pollution, waste, and conservation efforts.
ESG strategies gauge how much the company cares about its impact on the environment.

Why Do Companies Need an ESG Strategy?

Companies want to create an effective ESG strategy for several reasons.

Risk Management and ESG Investing

Consumers are not the only ones paying attention to a company’s ESG strategies, investors are also being mindful of the businesses they support. Also known as ESG investing, it’s becoming a valuable risk management tool for potential investors.
An example of the importance being placed on a company’s strategy is Yahoo Finance’s new sustainability tab. It shows the company’s ESG performance and how it compares to its competitors.

Improve How the Brand is Perceived

Consumers are becoming more conscious of how a brand affects the environment and look for companies with effective ESG strategies in place. Creating a socially and environmentally-conscious business plan helps companies become more in line with consumers’ and investors’ values.

Reduce Energy Usage

ESG strategies can do more than entice investors and consumers, they can also reduce energy usage. These strategies often include lighting retrofits to decrease electrical consumption and reduce energy costs.
Many businesses are incorporating LED lighting in their ESG strategies as a way to optimize energy usage.

If your organization is considering an LED retrofit as part of your ESG strategy, then Action Services Group should be one of your first calls! Our lighting specialists are ready to assist you in maximizing your savings and decreasing your energy usage. Schedule A Call by clicking the button below.

What Are ESG Standards and Scores?

The Sustainability Accounting Standards Board (SASB) has narrowed the ESG standards down to the “77 best” according to what matters most to potential investors. The SASB scores companies on their ESG strategies, allowing investors to see how companies are reducing their impact on the environment.
One environmentally-friendly strategy is investing in an LED retrofit. It’s an ESG standard and one of the primary steps companies can take in creating an effective strategy.

How LED Lighting Fits into Your ESG Strategy

There are several good reasons companies are starting their ESG strategies with an LED lighting retrofit. It’s environmentally friendly and cost-effective. Companies can often take advantage of rebates associated with LED lighting while also reducing their carbon footprint.
LED products are recyclable, unlike most other types of lighting. Businesses also see a reduction in lighting maintenance costs, along with energy usage.

Use LED Lighting to Reduce CO2 Emissions and Your Company’s Carbon Footprint

Wondering how LEDs can reduce your company’s carbon footprint? These lighting products consume less kWh which in turn decreases CO2 emissions. Some examples include,


Converting to LED lighting can lower energy usage by as much as 292,694kWh annually which equals a reduction in CO2 emissions by 400,040lbs.

Convenience Stores

A medium-size grocery store can emit up to 352,809lbs less CO2 by switching to LED lighting and use on average 258,137kWh annually.

Hospital and Healthcare Facilities

Converting to LEDs can reduce CO2 emissions by 1,473,097lbs and reduce energy usage up to 1,077,809 kWh a year.

Industrial and Manufacturing

Mid-sized manufacturers can expect to reduce energy costs by 302,359 kWh annually which equals a 413,250lbs reduction in CO2 emissions.

Office Buildings

Mid-sized office buildings can lower CO2 emissions by 515,498lbs and use up to 377,170kWh less a year by switching to LEDs.

Did you know we have an eBook that walks you through your cost savings for an LED lighting upgrade? In our eBook, The Essential Guide to Calculating Energy Savings and ROI on any Lighting Project, you will find a step-by-step guides for calculating energy savings. To download the eBook click here.

How Companies Are Using LEDs in ESG Strategies

An LED lighting retrofit is one of the first steps companies take to minimize their environmental impact and improve how consumers view their brand. Here are a few examples of how companies are using LEDs.

Physicians Realty Trust

The healthcare facility recently updated its lighting to LED products across the 3.1M property. Project costs are around $1.1 million with an average four-year payback. Offsetting the installation costs are the estimated $2.3 million in energy savings over ten years. Energy savings equal around 3.1 million kilowatt-hours annually.


The industrial company’s complete LED retrofit across the 1.5 million square foot building is reducing energy usage by 18.4% annually since the project’s completion. It’s part of the Georgia company’s commitment to its ESG strategy.


The Dublin-based company is meeting its 20% kWh reduction goal with its LED retrofit.

Starwood Capital

The investment firm recently transitioned all parking lots to LEDs as part of the company’s commitment to reducing energy usage and CO2 emissions.


ESG Strategies and LED Retrofits with Action Services Group

Companies looking to improve consumer brand perception and attract investors need to have a working ESG strategy. It shows the company is invested in the environment and are looking for ways to reduce its impact and boost sustainability.
The first step is often retrofitting outdated lighting with energy-efficient LED products. Contact us today and see how we can help your business develop an effective ESG strategy by starting with an LED retrofit, call 610-558-9773, email [email protected] or schedule a call that fits your needs by clicking the button below.


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