Million Tons of CO2

have been avoided by Power Integrations EcoSmart chips since 1998



in net revenue, 2001 - 2020


Billion Dollars

Recipient of the 2020 Best Financially Managed Semiconductor Company up to $1 Billion in Annual Sales Award by the Global Semiconductor Alliance

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The Path to Drawdown: LEDs

Light-emitting diodes (LEDs) were invented in 1994, designed as high-brightness, high-efficiency light bulbs. LED lighting works like solar panels but 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. LEDs turn 80% of their energy use into light while other lighting technologies convert energy into heat (and most of it wasted).

There are many environmental upsides to LED lighting. Its efficiency in converting energy into light, rather than heat, helps reduce electricity consumption and air-conditioning usage. In regions where people don’t have 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 adopted 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 grow fast:

  • <::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

Track GHG Emissions

We appreciate Power Integration estimating the amount of CO2 emissions specific products help customers save - this is exactly what we look for in energy efficiency technologies. But we would also like to know Power Integrations’ direct and indirect GHG emissions from their manufacturing and distribution operations. To that end, they should track their scope 1, 2 and 3 emissions and publicize them in an annual sustainability report.

Completely Switch to Renewables

Power Integrations still relies overwhelmingly on natural gas and natural gas-powered grid energy for their operations. We applaud them for making efforts to install solar panels at some of their locations, but these are still isolated changes. We want to see Power Integrations switch completely to renewable energy and become zero emissions in the near future.

Clean Up Supply Chain

We like that Power Integrations’ supplier code of conduct includes many expectations for their suppliers, ranging from labor, health and safety, environmental and ethical standards. But their environmental standards expectations are focused on pollution prevention, cutting waste, and stop short of mentioning climate change or GHG emissions specifically. We want this to change. Power Integrations should hold their suppliers to stringent low-emissions standards.

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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