How We Help Retailers Achieve Their Environmental Ambitions Through Lighting

At Fagerhult, we know light matters. Lighting accounts for 15% of global electricity consumption. However, by implementing smart lighting solutions, in combination with the latest LED technology, energy use can potentially be reduced by up to 90%. It is common for 90–95% of a luminaire’s total lifecycle greenhouse gas emissions to come from its usage phase. That’s why we focus on innovative technology and knowledge-sharing to help retailers optimise their lighting.

Lighting and Emissions: Scope 2 and Scope 3

Lighting plays a key role in both Scope 2 and Scope 3 emissions, which are part of the Greenhouse Gas (GHG) Protocol, the international standard for measuring and managing carbon footprints. The protocol divides emissions into three ‘scopes’ to help businesses understand where their emissions originate and how to address them effectively.

Scope 2 covers the indirect emissions from the electricity, steam, heat, or cooling a company purchases and uses, while Scope 3 includes all other indirect emissions from activities such as the production of purchased goods, transportation, and waste.

 

Helping Retailers Reduce Scope 2

Scope 2 emissions are often the easiest to measure — and the fastest to reduce. By upgrading to efficient luminaires, retailers cut electricity bills while shrinking their carbon footprint. 

Controls and sensors can add further savings, particularly in back-of-house areas. “If you add a sensor, you can cut energy use in that area straight away,” Niclas notes. Sensors in dressing rooms, for example, ensure lights are only on fully when the room is occupied and dimmed when not in use, preventing unnecessary energy use.

Supporting Scope 3 and Responsible Sourcing

For many retailers, Scope 3 emissions — those associated with the purchase of goods and services — represent the biggest challenge. This is also where transparency matters most, especially for those on the path to B Corp certification.

To help, Fagerhult produces Environmental Product Declarations (EPDs) in-house with our own life cycle assessment (LCA) experts. These third-party reviewed documents set out the environmental footprint of each product, including embodied carbon. They provide retailers with credible data for their own reporting, and a trusted basis for comparing options.

“An EPD helps our clients make informed choices,” says Niclas. “By choosing products with a lower footprint, they can reduce Scope 3 emissions from purchased goods.”

Many retail lighting products are being designed to use fewer resources. They are becoming smaller and lighter year by year, reducing material use while maintaining performance.

We are constantly developing our products to minimise resource use and waste, while increasing the share of recycled and renewable materials. For example, several of our luminaires already incorporate high levels of recycled aluminium or renewable materials, with some product families using 75% post-consumer recycled aluminium. These choices make a measurable difference when used in high volume. 

Designing for the Future

Our ambition is not only to make products efficient today but also adaptable tomorrow. We are working to design luminaires that are easier to upgrade, repair and eventually reuse.

“We are working on making products more modular and easier to disassemble. That means they can be upgraded in the future, extending their life and lowering the total footprint,” Niclas explains.

A good example is our ReLight programme, a circular initiative focused on reuse. By upgrading end-of-life luminaires and materials, we integrate new technology to extend their lifespan. Since the introduction of ReLight, we have reused more than 15,000 luminaires, making sure that we use our planet’s resources in the most efficient way. 

This way of thinking supports both circularity and responsible growth. It also reflects our philosophy: to always do our best; to act in a responsible manner; to treat people well; and to continuously lower the impact on the environment.

Shared Responsibility, Shared Progress

Niclas’s own path into sustainability was shaped by a belief that industry must play its part. “During my studies, I became convinced that if we are going to achieve a sustainable society, companies must act. A large responsibility lies within industry, and I wanted to contribute to that,” he recalls.

That sense of responsibility runs through Fagerhult. We are aiming for a 70% reduction in Scope 1 and 2 emissions and a 30% reduction in Scope 3 by 2030, with net zero across our value chain by 2045. These are ambitious goals, but we believe they are necessary.

For retailers, partnering with a supplier who takes sustainability seriously offers more than efficient lighting. It offers reassurance, credibility, and a chance to make real progress on environmental and social commitments — whether that is reporting to the Science Based Targets initiative, strengthening sustainability audits, or moving towards becoming a B Corp.

As Niclas concludes: “Retailers can make real progress by looking at their lighting – in terms of both energy use and material choices.”

Take the Next Step

Lighting gives retailers a fast, visible way to cut emissions, reduce costs and support long-term goals. By partnering with Fagerhult, retailers gain:

• Immediate reductions in energy use and emissions (Scope 2).
• Credible, transparent data to strengthen sustainability reporting and reduce Scope 3 emissions from purchased goods, supporting B Corp readiness. A partner whose own targets are aligned with the Paris Agreement and United Nations’ Agenda 2030.

Lighting is an essential part of every store, and it is also a powerful lever for change. By working with Fagerhult, retailers can reduce emissions, save energy, and take meaningful steps towards their environmental goals.

Ready to reduce your Scope 2 and 3 emissions? Get in touch with Fagerhult to discuss how we can support your next retail project.