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

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:

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


LSI Industries, Inc. (stock ticker: LYTS) manufactures non-residential lighting and retail display solutions, most of which are LED. They also offer internet of things-powered retail solutions.   They manufacture their products in 11 manufacturing plants in the US and Canada.

LYTS's Role in Drawdown

LSI Industries’ lighting segment provides LED solutions for a wide range of end-market customers, including automotive, quick-service restaurants, retail and grocery stores, parking lots, sports complexes, gas stations and convenience stores, and warehouses.

This segment accounts for 67.5% of LSI Industries’ total net sales. But this segment’s sales has been on the decline in the last several years, dropping by 7.5% annually between 2018 and 2020. They attribute this to increased competitiveness (p. 23) between 2018 and 2019, and to the decline in sales due to COVID-19 (p. 23) in 2020.

LYTS: What We Like

LSI Industry’s lighting segment is poised to rapidly increase sales over the next few years through acquisitions and awards:

LSI was awarded $100 million by the Quick-Service Restaurant Program (p. 10) to install menu boards with their own lighting at more than 6,000 branches of a major restaurant chain between 2020 and 2022

LYTS: 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.

Other LEDs Stocks in the Climate Index

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