ESG
Creating a sustainable future
Climate change
We recognise that climate change poses both risks and opportunities for our business. We have seen a growing mandate from our stakeholders for meaningful action on climate change and to tackle our greenhouse gas emissions. Recognising this, climate change is included within our “Macroeconomic, political and environmental” principal risk. As society transitions towards a net zero future, we are well positioned to make an increasing contribution to society’s climate objectives through our products and services.
Review of the year
Products & Services
Our low carbon product ranges (LED lighting, EV chargers and smart standby products) help customers to reduce their GHG emissions and transition towards a low-carbon future. We strive to develop more efficient products and better controls to improve energy efficiency.
Supply Chain
One of our strengths is the relationship we have with our suppliers. We recognise that we must work together to make more sustainable choices across product design, material choices and the manufacturing processes.
Research & Development
Our business is well placed to take advantage of the inevitable electrification of energy as we transition towards a low carbon economy. Opportunities for expansion into electric vehicle charging and other low carbon solutions such as smart home tech.
Operations
One of our first priorities is to reduce the emissions from our operations. By implementing efficiency improvements, we can reduce energy use, raw material use, waste and water use to limit our GHG emissions.
Achievements during 2024
- £82.6m revenue generated from low carbon product categories
- Strong pipeline of new products including EV chargers for commercial premises, Home Energy Management systems for integrating residential batteries, EV chargers, PV solar systems and heating controls as well as solar‑powered lighting solutions
- Continued development of TM65, TM66 and EPD for LED products in response to increased customer demand for sustainability‑related product information
- Our lighting divisions have been offering CPD sessions focused on sustainable lighting solutions with customers
- Continuing to work with our key customers on the Manufacturing 2030 programme to reduce our GHG emissions
- Worked with our logistics partner to improve our quantification methodology for upstream logistics
- As part of developing our product sustainability information, our team in China has been engaging with our OEM suppliers to obtain critical data for these assessments
- Specialist R&D function in China and the UK employing 130 specialists with an expenditure of £5.1m (£4.1m in 2023)
- Development focus on EV and Home Energy Management systems which are key growth areas for the business and also a key high market growth opportunity
- DW Windsor continue to develop innovative hybrid power lighting solutions to help customers reduce their energy consumption and costs
- Sourced 100% renewable electricity for all Group operations in 2024, for the third consecutive year
- Completion of the second solar PV array at our manufacturing facility in China
- Investment in energy management at Telford site to reduce natural gas consumption
- Installation of EV charges at Telford site for employees and visitors
- ESOS audits completed for UK sites
- Superior packaging solutions implemented
- Kingfisher Lighting have moved into a new distribution centre fitted out with our energy efficient lighting and controls
Products & Services
Our low carbon product ranges (LED lighting, EV chargers and smart standby products) help customers to reduce their GHG emissions and transition towards a low-carbon future. We strive to develop more efficient products and better controls to improve energy efficiency.
Achievements during 2024
- £82.6m revenue generated from low carbon product categories
- Strong pipeline of new products including EV chargers for commercial premises, Home Energy Management systems for integrating residential batteries, EV chargers, PV solar systems and heating controls as well as solar‑powered lighting solutions
- Continued development of TM65, TM66 and EPD for LED products in response to increased customer demand for sustainability‑related product information
- Our lighting divisions have been offering CPD sessions focused on sustainable lighting solutions with customers
Supply Chain
One of our strengths is the relationship we have with our suppliers. We recognise that we must work together to make more sustainable choices across product design, material choices and the manufacturing processes.
Achievements during 2024
- Continuing to work with our key customers on the Manufacturing 2030 programme to reduce our GHG emissions
- Worked with our logistics partner to improve our quantification methodology for upstream logistics
- As part of developing our product sustainability information, our team in China has been engaging with our OEM suppliers to obtain critical data for these assessments
Research & Development
Our business is well placed to take advantage of the inevitable electrification of energy as we transition towards a low carbon economy. Opportunities for expansion into electric vehicle charging and other low carbon solutions such as smart home tech.
Achievements during 2024
- Specialist R&D function in China and the UK employing 130 specialists with an expenditure of £5.1m (£4.1m in 2023)
- Development focus on EV and Home Energy Management systems which are key growth areas for the business and also a key high market growth opportunity
- DW Windsor continue to develop innovative hybrid power lighting solutions to help customers reduce their energy consumption and costs
Operations
One of our first priorities is to reduce the emissions from our operations. By implementing efficiency improvements, we can reduce energy use, raw material use, waste and water use to limit our GHG emissions.
Achievements during 2024
- Sourced 100% renewable electricity for all Group operations in 2024, for the third consecutive year
- Completion of the second solar PV array at our manufacturing facility in China
- Investment in energy management at Telford site to reduce natural gas consumption
- Installation of EV charges at Telford site for employees and visitors
- ESOS audits completed for UK sites
- Superior packaging solutions implemented
- Kingfisher Lighting have moved into a new distribution centre fitted out with our energy efficient lighting and controls
Targets and commitments
Luceco plc commits to reduce absolute Scope 3 GHG emissions from the use of sold products by 27.5% by 2031 from a 2021 base year.
Luceco plc commits to generating £120m revenue from low carbon product sales by 2030.
Luceco plc commits to reduce absolute Scope 1 and Scope 2 GHG emissions by 46.2% by 2031 from a 2021 base year.
Metrics and targets
Scope 1+2 target (tCO2e)
Scope 3 target (tCO2e)
Low carbon product revenue £m
Sustainability objectives:
Our progress against our sustainability objectives for 2024 is outlined below, along with our next steps for 2025.
Alignment with the new IFRS S2 Climate-related Disclosures Standard and the development of a transition plan
In preparation for the forthcoming IFRS S2 Climate-related Disclosures Standard, we have completed a gap assessment to understand our readiness for when this is introduced as a regulatory requirement. We have identified several improvements that help strengthen our current disclosures including reporting on how executive remuneration is linked to ESG objectives including climate-related goals. As part of the assessment, we also reviewed the requirements of the Transition Plan Taskforce (“TPT”) Framework which sets a best practice approach to organisational transition plans. We are considering the findings of the gap assessments and recommended improvements while we wait for the conclusion of regulatory consultations on increasing climate-related disclosure requirements. Over the course of 2025, we will be working towards strengthening our climate-related disclosures and developing our transition plan as we build upon the solid foundations that we have established in line with the TCFD recommendations.
Third-party verification of Scope 1 and 2 emissions and improvements in our Scope 3 emissions reporting
Our 2023 Scope 1 and 2 GHG inventory data was independently verified by Lucideon CICS on a limited assurance basis. We are looking to repeat the verification exercise for 2024 in preparation for our CDP disclosures and will look to expand the scope to include select Scope 3 emission sources. In terms of improvements to our Scope 3 emissions reporting, we have obtained activity data from our main freight forwarder back to our 2021 base year. This has enabled us to move away from the financial screening methodology and improve the accuracy of our calculation. We have also made improvements in our use of sold products emissions calculation by improving our underling product data for LED lighting which has reduced the amount of estimated data feeding into the calculation. We are also working with our team in China to move towards activity-based calculations for purchased raw materials and plan to make improvements over the course of 2025.
Development of TM65 lifecycle carbon footprint assessments for all new Luceco project luminaries by the end of 2024
Over the course of 2024, we have completed TM65 assessments on all new Luceco project luminaries. Across our lighting companies we have now completed 83 TM65 assessments, helping our customers understand the embodied carbon within our LED lighting products. We have invested in training and development to develop this capability in-house, so we are able to meet the growing demand for product-related sustainability information. DW Windsor has completed TM65 assessments for the most popular products and we estimate that we have 75% coverage on a revenue basis. Six of the more detailed environmental product declarations (“EPDs”) have been completed for Luceco LED lighting products and have been externally verified. We plan to develop a further nine EPDs for Luceco‑branded luminaries next year as well as a pilot study for a DW Windsor luminaire.
New objectives for 2025
- Develop our Home Energy Management system
- Grow EV further in the domestic space and expand into the commercial space
- Grow LED in our UK Trade and Projects channels and our product proposition
- Deeper engagement with suppliers and customers
- Fully incorporate the recent acquisitions of CMD and D-Line into our GHG reporting and our science-based targets