Energy Savings

LYTS’s LEDs helped customers reduce their energy consumption by up to 67% in 2020


Recycled Metal

55% of steel that LYTS procures is recycled metal


Million Dollars

LSI was awarded $100 million by the Quick-Service Restaurant Program to install menu boards at more than 6,000 branches of a major restaurant chain

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The Path to Drawdown: LEDs

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

There are many environmental advantages to LED lighting. Its efficiency in converting energy into light, not heat, helps reduce electricity consumption and air-conditioning load. For people without ready access to ample energy, LEDs can be powered with small solar panels 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 LEDs become widely used in the residential and commercial lighting market, they can 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, LED lighting 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

Track Key Sustainability Metrics

LSI publishes a Sustainability Report, but it doesn’t report any commitments regarding LSI’s efforts to address climate change or GHG emissions metrics. While we appreciate LSI’s environmental stewardship and efforts to recycle material, which are topics discussed in the report, we would like to see how LSI intends to cut its own direct and indirect emissions. For that, key metrics need to be published in their reports.

Withdraw from the Petroleum Market

Approximately 36% (p. 5) of LSI Industries’ net sales in 2020 was concentrated in the gas station and convenience store market. As the passenger vehicle industry becomes increasingly electrified, gas stations will increasingly lose out. But rather than simply responding to this decline, we urge LSI Industries to help facilitate the widespread electrification of transportation by switching to providing lighting solutions to EV charging stations and other EV-related industries.

Include Emissions Reduction in Supplier Code of Conduct

We applaud LSI for making their Supplier Code of Conduct publicly accessible, and for including the requirement to follow environmental rules, and regulations and standards applicable to suppliers. But we would like to be much more specific and much stronger language around requiring suppliers to concretely work toward reducing their scope 1, 2 and 3 GHG emissions.

Related LED Lights Stocks in the Climate Index

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Allocated Company Description


Applied Materials (AMAT)

Applied Materials supplies equipment, services and software for LED manufacturing. LEDs help conserve energy and cut emissions


Universal Display (OLED)

Universal Display makes organic LEDs, replacing fluorescent and incandescent lighting and improving building energy efficiency


Acuity Brands (AYI)

Acuity makes LEDs, smart lighting and building technology solutions that can improve energy efficiency and emissions from buildings


Power Integrations, Inc. (POWI)

POWI makes energy-efficiency products like AC-DC power converters and LED drivers. These solutions help buildings conserve energy and cut emissions


Diodes Incorporated (DIOD)

Diodes makes a range of semiconductor products for LCD display, LED monitors and lighting. LED lighting is a key solution for cutting building emissions


Veeco Instruments Inc. (VECO)

Veeco makes equipment and processing systems used in making high-tech LEDs. Energy-efficient LEDs help buildings cut energy use and emissions


Magnachip Semiconductor Corp. (MX)

Magnachip Semiconductor derives its revenue in part from the promotion of LEDs and solar PVs, through the sale of LED products and products used with solar PVs. It creates no products specifically for the fossil fuel industry.


Agrify Corporation (AGFY)

Agrify provides LED lighting and other products for high-yield indoor agriculture. Efficient LEDs are an energy-saving alternative to conventional lights


Amtech Systems, Inc. (ASYS)

Amtech Systems makes semiconductor equipment for LED and power device applications. LED lighting helps buildings cut emissions


AXT, Inc. (AXTI)

AXT sells semiconductor substrates used in LEDs, thermal imaging, and autonomous vehicles. It makes no products specifically for the fossil fuel industry, thus passing our revenue filter.


Energy Focus (EFOI)

Energy Focus makes LEDs for the Navy, federal, state and local governments, and big organizations, helping them save energy and cut building emissions


Highway Holdings Limited (HIHO)

HIHO makes electronic components, some of which are used in making LEDs. LEDs are energy-efficient lighting that can cut emissions from buildings


SemiLEDs Corporation (LEDS)

SemiLEDs makes LED components for lighting and other applications. LEDs are an energy-efficient lighting alternative that can cut building emissions


LSI Industries Inc. (LYTS)

LSI Industries makes LEDs for automotive, restaurant, retail and grocery store customers. Energy-efficient LEDs help buildings cut emissions


Orion Energy Systems, Inc (OESX)

Orion offers LED lighting and custom-made energy management systems for big organizations - a solution that cuts energy use and emissions from buildings


O2Micro International Limited (OIIM)

O2Micro International makes LED products and lighting. LEDs are an energy-efficient lighting alternative that can cut emissions

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