Lighting upgrades can reduce energy use by up to 70%, making them one of the simplest and most cost-effective ways to improve ESG performance. In many commercial buildings, lighting accounts for nearly 20% of total electricity consumption, directly impacting Scope 2 emissions and energy-related KPIs.
Upgraded systems not only lower environmental impact but also produce trackable data for compliance with frameworks like GRI 302, Bursa Malaysia’s Sustainability Reporting Guide, and the GHG Protocol.
This article explains how lighting upgrades support all three ESG pillars — and why they’re a strategic move for any company focused on sustainability and regulatory readiness.
Why Lighting Matters for ESG
Lighting is one of the biggest energy users in most buildings — up to 40% of total electricity in older properties. That makes it a key driver in your Environmental, Social, and Governance (ESG) performance.
Why lighting upgrades matter:
1. High energy impact
Lighting can account for 20–40% of electricity use in commercial and industrial spaces.
2. Direct link to Scope 2 emissions
Electricity-based emissions (Scope 2) are tracked in ESG reporting — lighting is a major contributor.
3. Fast and low-disruption upgrades
Compared to HVAC or structural changes, lighting retrofits are faster, cheaper, and easier to implement.
4. Regulatory relevance
ESG frameworks like GRI 302 (Energy), Bursa Malaysia Sustainability Reporting, and TCFD all require energy use and reduction reporting — lighting upgrades support these disclosures.
Lighting is more than a cost-saving measure — it’s a strategic tool for compliance, transparency, and operational sustainability.
Next, let’s break down how lighting upgrades reduce emissions and support environmental KPIs.
Environmental Impact of Lighting Upgrades
Upgrading to energy-efficient lighting is one of the easiest ways to reduce your carbon footprint and electricity costs — both of which directly impact ESG reporting.
Key environmental benefits:
1. Lower energy consumption
LED lights use at least 50% less energy than fluorescent or halogen lighting. Upgrading to ENERGY STAR certified lighting ensures compliance with globally recognized efficiency benchmarks.
2. Reduced Scope 2 emissions
Lighting upgrades can significantly cut electricity-based emissions — a major requirement in frameworks like the GHG Protocol.
Businesses can also access tax incentives for lighting upgrades such as GITA and GTFS, which help reduce upfront costs and accelerate payback.
3. Longer lifespan, less waste
LEDs last up to 5x longer, reducing replacement frequency and landfill contribution.
4. Smart controls for even more savings
Adding motion sensors, timers, and daylight harvesting can cut lighting-related energy use by another 20–30%.
Example: A 100,000 sqft office that replaced fluorescent lights with LED and motion sensors reduced lighting electricity usage by 40%, cutting over 60 tonnes of COâ‚‚ annually.
Environmental improvements from lighting are not just measurable — they’re fast to implement and easy to track.
Up next, we’ll show how lighting upgrades make ESG data collection and reporting more efficient.
How Lighting Supports ESG Reporting & Metrics
Modern lighting systems don’t just save energy — they also generate trackable, report-ready data that simplifies ESG reporting.
How lighting upgrades support ESG metrics:
1. Real-time energy monitoring
Many LED systems integrate with smart energy dashboards, making it easy to track consumption and spot inefficiencies.
2. Automatic emissions tracking
Lighting-related electricity use is tied to Scope 2 emissions, which most ESG frameworks require to be disclosed and verified.
3. Audit-friendly reporting
Systems with built-in monitoring tools can generate exportable reports aligned with standards like GRI 302, GHG Protocol, and CDP.
4. Baseline comparison
Pre- and post-upgrade data allows for measurable improvement tracking — essential for annual ESG disclosures and sustainability audits.
For example: A retail chain implemented a smart lighting system across 12 locations. It reduced total lighting-related emissions by 28% and automated their monthly ESG reporting process — saving time and audit costs.
Lighting systems with built-in intelligence turn operational upgrades into reportable ESG wins — with clear metrics, fast data access, and built-in accountability.
Next, we’ll explore how lighting also contributes to the Social and Governance pillars of ESG.
Lighting and Social & Governance Benefits
While most companies focus on the environmental side of lighting upgrades, they also create positive outcomes in the Social and Governance pillars of ESG.
Social impact (S):
1. Safer work environments
Better lighting reduces accidents and improves visibility in warehouses, offices, and factories.
2. Improved employee wellbeing
Lighting with better color rendering and brightness control can reduce eye strain and fatigue — especially in office and manufacturing settings.
3. Higher productivity
Studies show that well-lit workplaces can boost employee alertness and output by up to 15%.
Governance impact (G):
1.Demonstrates proactive compliance
Investing in efficient lighting shows long-term thinking and alignment with regulatory trends.
2. Supports corporate responsibility
Clear tracking and measurable energy savings provide transparency for stakeholders, investors, and audit teams.
For example: A logistics firm upgraded lighting in its sorting center to improve visibility during night shifts. Employee injury claims dropped 22% in six months — a win for both workplace safety and governance reporting.
Lighting upgrades enhance more than operations — they shape how your business treats people and manages long-term risk.
Next, we’ll connect these benefits to the ESG frameworks that specifically include lighting metrics.
ESG Reporting Frameworks That Include Lighting
Lighting upgrades align directly with the energy and emissions reporting requirements found in global and local ESG frameworks. They provide measurable inputs that simplify disclosures and support audit readiness.
Key ESG frameworks that reference lighting:
Framework | How Lighting Fits |
|---|---|
GRI Standards (GRI 302, 305) | Tracks energy consumption and Scope 1 & 2 emissions — lighting is a primary input. |
Bursa Malaysia Sustainability Reporting Guide | Requires reporting on energy use, GHG emissions, and resource efficiency — lighting is a focus area. |
TCFD (Task Force on Climate-related Financial Disclosures) | Encourages risk mitigation via energy efficiency investments like smart lighting. |
CDP (Carbon Disclosure Project) | Requires detailed Scope 2 tracking — lighting upgrades contribute to quantifiable carbon reductions. |
GHG Protocol | Framework for emissions accounting — lighting affects Scope 2 electricity-based emissions directly. |
Lighting is not just part of your utility bill — it’s a quantifiable, reportable element in every major ESG framework.
Next, let’s walk through the practical steps to start your lighting upgrade journey.
How to Get Started: Audit, Plan, and Upgrade
Lighting upgrades don’t need to be complicated. Here’s how businesses typically begin aligning lighting with ESG goals:
1. Audit your current lighting system
Measure energy usage, identify outdated fixtures, and establish a baseline for Scope 2 emissions.
2. Set ESG-aligned targets
Decide on measurable goals — for example, reduce lighting-related energy use by 30% within 12 months.
3. Select efficient lighting systems
Choose LED lights, motion sensors, dimmers, and daylight harvesting systems to maximize savings.
4. Install and integrate smart controls
Link lighting systems to energy monitoring platforms for real-time tracking and ESG reporting.
5. Track, report, and improve
Use data to complete your ESG disclosures and optimize consumption with lighting management systems that support energy tracking.
Tip: Even partial upgrades (e.g., switching common area lights to LED) can significantly improve energy performance metrics.
By following this simple sequence, you create a foundation for long-term savings and ESG compliance — with measurable, auditable results.
Next, see how we can help make this process even easier.
Partner With Experts Who Understand ESG and Lighting
Upgrading your lighting isn’t just a facilities task — it’s a strategic move with implications for compliance, reporting, and long-term cost savings.
At Justlight Concept, we combine 20+ years of lighting expertise with deep understanding of ESG requirements and sustainable design. We help you go beyond just installing LEDs.
What we offer:
Lighting is often the simplest upgrade to make — but the impact runs deep when done right.
Let’s wrap up with why this matters now, and what’s at stake if you wait.
Key Takeaways: Strategic Gains with Measurable Impact
Lighting upgrades are more than an energy-saving measure — they’re a direct lever for ESG performance. They reduce Scope 2 emissions, lower operational costs, and deliver clean, trackable data that aligns with major ESG frameworks.
Unlike larger infrastructure changes, lighting retrofits are quick to implement and offer immediate results — from environmental impact to employee wellbeing. Most importantly, they show stakeholders that your company takes sustainability seriously, with actions backed by metrics.
If you want to make visible, reportable progress on ESG — lighting is the place to start.