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Will Switching to LED Lighting Improve Your ESG Strategy?

Updated: Feb 20, 2023

Will switching to LED lighting truly improve your ESG strategy? The simple answer is YES. Having a clear-cut ESG (environmental, social, and governance) strategy will not only help you stand out as a business but will also contribute towards decreasing your carbon footprint in the long run. One prime step towards gaining more ESG mileage is to switch to LED lights.

Read on to find out more about how switching to explosion-proof LED lights can help improve your ESG strategy, attract more investors, reduce your carbon footprint, and benefit your business.

What is the Significance of ESG?

As the global business fabric evolves, investors are constantly on the lookout for ways to make more impactful investment decisions. Outside of a company’s financial performance, investors frequently consider a company's ESG strategy when assessing investment risk. They take into consideration the non-financial impact of a company that, includes the following:

  • Environmental impact: energy sources, waste management, potential air and water pollution, product packaging, raw material procurement, biodiversity practices on company-owned land.

  • Social responsibility: equitable employee salary and benefits, workplace policies, ethical suppliers and vendors, and charitable contribution.

  • Governance practices: how a company's leadership and board of directors manage a business. This includes financial reporting transparency, executive compensation, investor involvement, conflict of interest avoidance, and executive and board diversity.

Therefore, the ESG strategy of a business is crucial for several reasons:

1. ESG as a Screening Tool

With customers and investors becoming more conscious of corporate social responsibility, a company's ESG strategy has evolved into an important screening tool. This is frequently considered a crucial factor when stakeholders analyze investment possibilities for risk management and ESG investing.

2. ESG as a Measure of Social Responsibility: A Brand with Values

Developing an ESG strategy enhances your company's brand as a whole by showcasing a socially conscious business approach and values to consumers. A robust ESG strategy will also help investors understand that your company is committed to a more sustainable future.

3. ESG for Reduced Energy Consumption

Comprehensive energy optimisation techniques, which frequently require building and system retrofits, are frequently included in ESG plans. These onsite retrofits enable organizations to reduce energy usage as well as operational costs. So ESG is a definite win for your company.

Given the effect lighting has on operational expenses, many real estate and investment organizations have already made explosion-proof LED lights and LED retrofits the standard for their buildings and potential investments.

What is Meant by an ESG Risk Score?

The ESG risk score assesses a company's performance on ESG concerns as well as its exposure to and experience with ESG-related hazards. Installing explosion-proof lighting retrofits is a very environmentally friendly decision. These types of projects have become the norm and one of the first steps in building and implementing a sound ESG strategy within any business. Your business, too, can benefit by learning more about the wide range of options available for explosion-proof lighting in Singapore.

Standard Guidelines for ESG

While there are various standard guidelines, the most widely used international guidelines are provided by the Sustainability Accounting Standards Board (SASB). It has developed 77 industry ESG standards to assist in identifying, managing, and reporting on sustainability topics that are now important to investors. Global Reporting Initiative (GRI) and International Sustainable Standards Board (ISSB) are two other leading organizations that have set forth ESG guidelines. Access the full list here.

In Singapore, SGX-CGS Sustainability Reporting Guide remains the benchmark. This takes into account five key components: Material ESG factors, policies, practices and performance, targets, sustainability reporting framework, and board statement.

Explosion-Proof LED Lights, Environment, and ESG Strategy

When it comes to lighting, the most significant category of focus is "environmental." Commercial buildings are said to contribute significantly toward annual carbon dioxide emissions globally. Therefore, opting to retrofit explosion-proof LED lights is an ideal first step towards adopting a sustainable and environmentally friendly approach to reducing the overall carbon footprint in your business

Reduced CO2 Emission

LEDs consume less energy than traditional lights thereby enabling businesses to keep their CO2 emission low. Speak to any leading supplier of ex-proof lighting in Singapore, and they will give you a more comprehensive idea about how companies can lower their overall kWh (Kilowatt hour) use by switching to LEDs and in turn, reduce their overall CO2 emissions.

Environmentally Friendly LED Materials

The majority of the explosion-proof lighting in Singapore is made from non-toxic, recyclable components. The LED lighting industry does not use outdated mercury-containing production processes such as those of CFLs (compact fluorescent lamps), metal halides, and fluorescents. In addition to an increasing number of LED recycling initiatives, the lighting industry is improving the end-of-life cycle of LED light bulbs.

Explosion-Proof LED Lighting, Cost Reduction and Becoming Future Ready

By consulting a reputed Ex-proof lighting supplier in Singapore, you too can find out how your business can enhance its ESG practices by replacing outdated lights with energy-saving LED lighting. Explosion-proof LED lights can help lower energy costs and maintenance expenses while enhancing worker safety.

Furthermore, by switching to the latest LED lighting technology, business owners also upgrade their lighting system from an inefficient one to a more productive one.

Lower Energy Costs

As statistics indicate, LED technology consumes up to 75% less electricity than incandescent and fluorescent alternatives, resulting in significant energy savings, particularly in areas where lighting is used for extended periods of time.

Lower Operational Costs

Ex-proof lighting in Singapore is of excellent quality and durability. Check with our experts at Lumenex Asia to understand more about the lifespan of LED lights and how they can significantly lower lighting maintenance needs for decades.

Positive Return on Investment

The majority of LED lighting systems provide a positive return on investment (ROI) with paybacks of three years or less. A reliable and reputed ex-proof lighting supplier in Singapore can help you find the best-LED lights and luminaries to suit your industrial needs.

Lumenex Asia - The Leading Ex-proof Lighting Supplier in Singapore

The current generation of investors and consumers is understandably worried about the future, and so are we. Undoubtedly, businesses will have a significant impact on environmental, social, and governance challenges, and this is the very reason many industries and businesses of all sizes have implemented new ESG-friendly business practices.

Lumenex Asia is dedicated to helping you drive your ESG strategy forward. With solutions ranging from energy-efficient and environmentally friendly explosion-proof LED lighting to retrofits that could convert your workspace into a hazard-free environment with minimum investment and hassle, we offer you the best-LED solutions in Singapore.

Dedicate your business to an ESG-friendly philosophy by encouraging employee well-being, promoting environmental conservation, and lowering energy costs with explosion-proof LED lighting solutions from Lumenex Asia. Contact us for more information on how we can help your business become truly sustainable, strategically.

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