ESG
Creating a sustainable future
Climate change
We recognise that climate change poses both risks and opportunities for our business. The electrification of homes, businesses and transport systems represents one of the most significant transitions taking place in the global economy, with the International Energy Agency (“IEA”) forecasting a 3.9% annual increase in global electricity consumption. We have a joint mandate internally and from our stakeholders for meaningful action on climate change and to tackle our greenhouse gas emissions as well as driving growth in our revenue from products that help our customers transition to a low carbon future. Recognising this, climate change is included within our “Macroeconomic, political and environmental” principal risks and our low carbon products are a central focus of our growth strategy. As society transitions towards a net zero future and the Energy Transition, 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 technology.
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 2025
- £91.5m revenue generated from low carbon product categories
- Strong pipeline of new products launched, including EV chargers for commercial premises, HEMs for integrating residential batteries, EV chargers, solar PV systems and heating controls as well as solar‑powered lighting solutions
- LED lighting product developments completed to allow for adjustable wattage and colours for several ranges; reduces stock holding requirements and improves efficiency of project delivery
- Continued development of TM65, TM66 and EPD for LED products in response to increased customer demand for sustainability‑related product information
- 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 Global Compliance team has expanded. A dedicated carbon engineer is now responsible for engaging with our supply chain to obtain critical data for TM65 and EPD assessments
- Specialist global R&D functions employing 155 specialists with an expenditure of £6.3m (2024: £5.1m)
- Development focus on EV and HEMs which are key growth areas for the business and also a key high market growth opportunity
- DW Windsor and Kingfisher Lighting continue to develop innovative hybrid power lighting solutions, including solar‑integrated products, to help customers reduce their energy consumption and costs
- Sourced 100% renewable electricity for all Group facilities in 2025, for the fourth consecutive year
- Completion of the second solar PV array at our manufacturing facility in China. Both arrays contributed to 15% of electricity consumption in 2025, a 70% increase in power generation against 2024
- Investment in process optimisation and automation at the China site, reducing compressed air usage and electricity consumption
- Installation of EV chargers across our sites for employees and visitors to utilise
- Superior packaging solutions implemented
- Introduced a Group‑wide Octopus EV salary sacrifice scheme and provided participants with a Sync Energy charger for their home
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 2025
- £91.5m revenue generated from low carbon product categories
- Strong pipeline of new products launched, including EV chargers for commercial premises, HEMs for integrating residential batteries, EV chargers, solar PV systems and heating controls as well as solar‑powered lighting solutions
- LED lighting product developments completed to allow for adjustable wattage and colours for several ranges; reduces stock holding requirements and improves efficiency of project delivery
- Continued development of TM65, TM66 and EPD for LED products in response to increased customer demand for sustainability‑related product information
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 2025
- 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 Global Compliance team has expanded. A dedicated carbon engineer is now responsible for engaging with our supply chain to obtain critical data for TM65 and EPD 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 technology.
Achievements during 2025
- Specialist global R&D functions employing 155 specialists with an expenditure of £6.3m (2024: £5.1m)
- Development focus on EV and HEMs which are key growth areas for the business and also a key high market growth opportunity
- DW Windsor and Kingfisher Lighting continue to develop innovative hybrid power lighting solutions, including solar‑integrated products, 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 2025
- Sourced 100% renewable electricity for all Group facilities in 2025, for the fourth consecutive year
- Completion of the second solar PV array at our manufacturing facility in China. Both arrays contributed to 15% of electricity consumption in 2025, a 70% increase in power generation against 2024
- Investment in process optimisation and automation at the China site, reducing compressed air usage and electricity consumption
- Installation of EV chargers across our sites for employees and visitors to utilise
- Superior packaging solutions implemented
- Introduced a Group‑wide Octopus EV salary sacrifice scheme and provided participants with a Sync Energy charger for their home
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 2025 is outlined below, along with our next steps for 2026.
Grow EV further in the domestic space and expand into the commercial space
EV sales continued to demonstrate strong growth in 2025 and remain a core component of our low carbon product strategy. The UK EV charging market was valued at £450m in 2025 and is forecast to reach £1,244m by 2030, reinforcing this as a key growth area for the Group. During the year, EV charging sales increased by 84.7% (2024: 25.6%), contributing significantly to the performance of the Sync Energy division, which generated £18.1m in sales (2024: £9.8m).
Develop our Home Energy Management system
Our new HEMs platform was launched in 2025, providing customers with an integrated solution to monitor and reduce their energy consumption and associated costs. Revenue from the HEMs product range contributes directly to the Group’s £120m low carbon product revenue target for 2030, and continued expansion of this range will be an important driver of progress towards this goal.
Grow LED in our UK Trade and Projects channels and our product proposition
Our internal LED product ranges have been supported by the launch of our commercial lighting controls system which powered the growth during 2025. Furthermore, our external LED lighting product portfolio has been enhanced, including release of our new solar lighting ranges in DW Windsor, which saw 5.3% sales growth in 2025. We continue to ensure that our products are innovate, good value and quality in the LED space with our continued commitment to research and development.
Deeper engagement with suppliers and customers
Following expansion of the Global Compliance team with the addition of a carbon engineer whose focus is on supplier engagement, TM65 and EPD declarations, significant progress has been made on the number of TM65s produced in the year. For 2025 lighting revenue, 72% of project lighting ranges and 31% of LED lighting sales have accompanying TM65 assessments, combining to a total of £22.8m.
Fully incorporate the recent acquisitions of CMD and D-Line into our GHG reporting and our science‑based targets
For the 2025 GHG disclosure, all entities within the Luceco Group have been incorporated into the consolidated GHG inventory, covering the 2025 reporting year, 2024, and the 2021 base year. Although the inventory has been updated to reflect the recent acquisitions, the Group’s science‑based targets have not yet been revalidated. During 2026, the Group intends to resubmit its targets for validation by the SBTi, with progress against these targets to be reported in the 2026 Annual Report.
New objectives for 2026
- Continue growth in EV markets, across all business divisions
- Grow HEMs product sales
- Improve our EcoVadis score and maintain CDP A- score
- Grow solar product sales across all Group sales channels
- Fully incorporate the recent acquisitions of CMD and D-Line into
our science‑based targets and revalidate targets