16

Million Dollars

in 2020 revenue

5.7

Million Dollars

in total backlog at the end of 2020

130000

Sq. Ft Facility

in Central Islip, NY

View Our Analysis

The Path to Drawdown: LEDs

Light-emitting diodes (LEDs) were first invented in 1994 as a high-brightness, high-efficiency alternative to incandescent bulbs. LEDs work like solar panels in reverse, converting electrons to photons instead of the other way around. For the same amount of light, LEDs use 90% less energy than incandescent bulbs, and half as much as compact fluorescents. While other lighting technologies convert energy into heat (and most of it wasted), LEDs turn 80% of their energy use into light.

There are many environmental advantages to LED lighting. Its efficiency in converting energy into light, rather than heat, helps reduce electricity consumption and air-conditioning loads. For people without access to ample energy, LEDs can be powered with small solar cells and can replace expensive kerosene lamps and their noxious fumes and emissions. Where LEDs are used in streetlights, they can save up to 70% of energy and significantly reduce maintenance costs.

Project Drawdown projects that if LED lighting becomes widely used in the residential and commercial lighting market, it can help avoid between 10.2 - 10.8 gigatons of CO2 emissions in residences, and between 5.9 - 6.7 gigatons in commercial buildings. To achieve this, the global market share of LEDs needs to scale rapidly:

  • <::marker> In 2018, LEDs comprised 3% of the total commercial lighting market and 2% of the residential lighting market
  • <::marker> By 2050, LEDs should account for 95% and 90% of the residential and commercial markets, respectively
  • <::marker> That’s 12.82% CAGR for residential LED, and 11.21% CAGR for commercial LED lighting between 2018 - 2050.

What We Want to See Improve

Report GHG Emissions

As of now, CVD Equipment has no information on their sustainability efforts. We want to press their management team to take environmental sustainability and climate change seriously by tracking and reporting key metrics, such as the company’s direct and indirect emissions, energy use by source, and the amount of emissions avoided. These metrics should be reported in an annual sustainability report.

Set Emissions Reduction Targets

Also part of the sustainability report should be clearly spelled-out targets for reducing direct and indirect emissions by a specified date. These targets should be science-based, meaning that they should be in line with the global goal to stay under 1.5°C of global temperature rises by mid-century.

Clean Bank

CVD Equipment has been a repeat customer with HSBC Bank (p. 41) for their mortgage. HSBC is a large UK bank that finances fossil fuels. We urge CVD to switch to an environmentally friendly financial institution that, on principle, refuses to invest in the fossil fuel industries.

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Allocated Company Description

4.34%

ABB Ltd (ABB)

ABB offers EV charging, solar and modular substations, distribution automation to expand the power grid. A larger grid can integrate more renewables

4.19%

Eaton Corporation plc (ETN)

Eaton offers electrical components, industrial components, power distribution for the electrical grid. Grid expansion is key for integrating renewables

1.08%

Quanta Services, Inc. (PWR)

Quanta offers engineering, construction and repair of electric grid infrastructure. Expanding the power grid is necessary for integrating more renewables

0.42%

MasTec, Inc. (MTZ)

MasTec builds the infrastructure that connects the US power generation to consumers. Expanding the grid is critical for integrating more renewables

0.42%

WESCO International, Inc. (WCC)

WESCO helps the power grid expand and adapt to a growing integration of clean energy. A key Drawdown solution for a more resilient and green grid

0.31%

Sunnova (NOVA)

Sunnova provides residential solar and energy storage systems in the United States. Both are critical for electrifying the energy system

0.17%

SPX Corporation (SPXC)

SPC makes transformers and cooling equipment for power generation and transmission - expanding the grid helps to integrate more renewable energy

0.03%

Willdan Group (WLDN)

Willdan helps utilities with new construction, improve efficiency, and demand response - all valuable in expanding and making the grid more resilient

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