Climate Change Data

LEDVANCE GmbH

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:29,460 tCO2e/year (Scope 1 and 2) + 13,094 tCO2e/year (Scope 3)
Scope 1 Emissions:29,460 tCO2e/year
Scope 3 Emissions:13,094 tCO2e/year
Total Energy Consumption:134,688 MWh/year
Water Consumption:71,993 m3/year
Waste Generated:3,392 tons/year (hazardous and non-hazardous recycled) + 467 tons/year (hazardous and non-hazardous landfill/disposal)

ESG Focus Areas

  • Product Design
  • Supply Chain & Own Operations
  • Employees
  • Digital Responsibility
  • Sustainability Communication

Environmental Achievements

  • In 2022, energy-efficient and long-lasting LED and luminaires accounted for 70% of sales volume (up from 50% in 2017).
  • Reduced Scope 1 and 2 GHG emissions.
  • 80% of product packaging made from recycled paper.
  • Saved 12,915 pallets and repaired 14,889 pallets (Europe).

Social Achievements

  • Launched a new company-wide employee survey to measure contentment.
  • Implemented a new e-learning platform for training and development (51% registration rate, 35% activity rate after 6 months).
  • Open Mentoring program with 57 mentors and 47 mentees.
  • Donation of 100,000 LED lamps to Münchner Tafel.

Governance Achievements

  • Implemented a new global function, Head of Compliance & Sustainability.
  • Implemented a binding Compliance Management System (CMS).
  • 84 compliance training sessions performed in 2022.
  • EcoVadis silver medal awarded in 2022.

Climate Goals & Targets

Long-term Goals:
  • Net-zero operations
Short-term Goals:
  • Reduce Scope 1 and 2 emissions by 20% from the base year by 2025.

Environmental Challenges

  • Determining value proposition and strategy.
  • Costs of compliance.
  • Product portfolio development.
  • Managing the supply chain.
  • Regional differences in LED adoption.
  • Reducing plastic in packaging.
  • Reducing environmental impact of transport.
Mitigation Strategies
  • Developed a Sustainability Strategy with five strategic elements.
  • Joined SBTi (Science Based Targets initiative).
  • Implemented a risk-based approach to supply chain management.
  • Developed a new global Sustainability team.
  • Implemented a new governance and reporting tool, Ethical3.
  • Investigating alternatives to plastic packaging.
  • Optimizing packaging and transport routes.

Supply Chain Management

Supplier Audits: 133 Compliance Due Diligences (CDDs) conducted for new business partners in 2022.

Responsible Procurement
  • Code of Conduct for LEDVANCE Suppliers
  • Supplier Rating Method
  • Corporate Responsibility Self-Assessment (CRSA)
  • RMI (Responsible Minerals Initiative) partnership

Climate-Related Risks & Opportunities

Opportunities
  • Reducing greenhouse gas emissions through LEDification
  • Reducing light pollution
  • Reducing stress through HCL

Reporting Standards

Frameworks Used: GRI Standards (GRI 1: Foundation 2021), UN Global Compact, SBTi, EcoVadis

Certifications: ISO 9001, ISO 14001, ISO 45001 (internal compliance)

Third-party Assurance: RSM GmbH Wirtschaftsprüfungsgesellschaft Steuerberatungsgesellschaft (Limited assurance)

UN Sustainable Development Goals

  • SDG 3: Good Health and Well-being
  • SDG 7: Affordable and Clean Energy

Human-centered lighting concepts contribute to SDG 3, while efficient solutions enable access to clean energy (SDG 7).

Sustainable Products & Innovation

  • EVERLOOP system
  • BIOLUX Human Centric Lighting System
  • SMART+ product family
  • UV-C Air Purifier
  • UV-C Disinfection Box

Awards & Recognition

  • German Innovation Award (2020, 2021)
  • German Design Award (2019)
  • VDE certification for HCL product

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:45217 tCO2e
Scope 1 Emissions:2257 tCO2e
Scope 2 Emissions:1895 tCO2e
Scope 3 Emissions:41225 tCO2e
Total Energy Consumption:17189 MWh
Water Consumption:27944 m³
Waste Generated:1260 tons

ESG Focus Areas

  • Environmental protection
  • Ethical business practices
  • Expanding the circular economy
  • Climate Action
  • Supply Chain Responsibility
  • Responsibility for Employees
  • Product Responsibility
  • Social Responsibility
  • Governance & Compliance
  • Digital Responsibility
  • Sustainability Communication

Environmental Achievements

  • Launched LEDVANCE LOOP sub-brand encompassing sustainability efforts, including new product ranges, reduced CO2 from transport and logistics, and improved demand planning with AI.
  • Developed EVERLOOP product range enabling component replacement in luminaires, maximizing lifespan and reducing waste.
  • Launched NATURELOOP product line using at least 40% post-consumer recycled (PCR) materials.
  • Relocated headquarters to a more efficient office space.
  • Significant drop in emissions and consumption since the sale of a production plant in 2022.
  • Increased share of LED-based products in portfolio from 73.1% in 2022 to 76.5% in 2023.
  • Reduced plastic proportion in product packaging to a minimum.
  • Increased pallet loads by 82.1% and bulk loads by 97.6% in Western Europe (2022-2023).

Social Achievements

  • Developed a global People and Culture Guideline.
  • Conducted first global Employee Satisfaction Survey with 78% participation.
  • Introduced measures to improve training and development, including a Masterplan initiative for e-learning.
  • Implemented a new communication strategy.
  • No severe human rights incidents connected to the workforce in 2023.
  • Signed the Charter of Diversity in Munich on October 6, 2023.
  • 23 interns taken on globally in 2023.

Governance Achievements

  • Implemented a new global function, Head of Compliance & Sustainability, in 2022.
  • Established a global Sustainability team.
  • Implemented a new company-wide employee survey.
  • Awarded an EcoVadis Silver Medal in 2022 and 2023.
  • Implemented a Binding Corporate Rules (BCRs) for the protection of personal data.
  • Implemented a “Zero Trust” framework to enhance cybersecurity.
  • 33 potential compliance violations reported, 4 confirmed.

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero emissions.
Medium-term Goals:
  • Establish company-wide, science-based targets and set up company-wide GHG accounting and monitoring to reach net-zero operations.
Short-term Goals:
  • Design and implementation of a system that simplifies the reportability of key HR processes by 2026.
  • Implement the Organization Environmental Footprint (OEF) globally.
  • Pilot and implement the PEF (Product Environmental Footprint), i.e. PEP Ecopassport for the majority of products.

Environmental Challenges

  • Supply chain disruptions due to unstable conditions in Russia and Ukraine.
  • Limited data availability for some figures.
  • Need to develop a complete emissions inventory in accordance with the Greenhouse Gas Protocol.
  • Need to further reduce plastic in packaging.
  • Need to develop a digital tool to manage supplier relationships.
  • Need to further develop a complete emissions inventory in accordance with the Greenhouse Gas Protocol.
Mitigation Strategies
  • Systemizing and digitizing data collection and reporting.
  • Defining focus processes for short and medium term.
  • Implementing the Organization Environmental Footprint (OEF) globally.
  • Piloting and implementing the PEF (Product Environmental Footprint), i.e. PEP Ecopassport for the majority of products.
  • Investigating the use of paper glue instead of parcel tape.
  • Investigating ways to reduce non-visible and visible packaging.
  • Maximizing space within containers to reduce plastic foam use.
  • Optimizing packaging based on different loads to reduce wooden pallet use.
  • Developing a digital tool to manage supplier relationships.

Supply Chain Management

Supplier Audits: 55 Compliance Due Diligences conducted for new business partners in 2023

Responsible Procurement
  • Code of Conduct for LEDVANCE Suppliers
  • Supplier Rating Method (CRSA)
  • On-site audits of high-risk suppliers

Climate-Related Risks & Opportunities

Opportunities
  • Development of energy-efficient products
  • Expansion into renewable energy sector (LEDVANCE Renewables)

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 9001, ISO 14001, ISO 45001

Third-party Assurance: dhpg GmbH Wirtschaftsprüfungsgesellschaft

Sustainable Products & Innovation

  • EVERLOOP
  • NATURELOOP
  • BIOLUX Human Centric Lighting System
  • UV-C Air Purifier
  • UV-C Disinfection Box

Awards & Recognition

  • German Innovation Award 2020 (BIOLUX)
  • EcoVadis Silver Medal (2022, 2023)