LSI Industries : Sustainability Report (Sustainability Report 2025 05052025)

Published: 2025-05-05 22:03:34 ET LYTS

Published on 05/05/2025 at 22:03

SUSTAINABILITY REPORT

2025

LSI provides industry leading products and customer service without sacrificing our commitment to operate responsibly across all aspects of our business. Our Environmental, Social and Governance (ESG) core principles are integral to the way we conduct our business. Throughout our history we have manufactured innovative, energy-efficient products that have enabled us to become a leader in delivering eco-friendly lighting and refrigeration solutions for our customers.

Our family of companies, which includes ADL Technologies, Atlas American Lighting, JSI Store Fixtures, EMI Industries and Canada's Best Store Fixtures, are proud to have made, and continue to make, a positive impact in our communities by

assisting customers develop smart environmentally conscience solutions for their communities. Our customers value LSI as a key partner in enabling them to meet their sustainability objectives by

reducing their carbon footprint. To promote a sustainable, inclusive and socially responsible future for generations to come, LSI is committed to:

Actively making positive contributions to the communities where we operate.

Promoting a culture of safety in LSI's DNA

Driving innovation and developing new ways to reduce energy consumption and lower costs.

This unique combination of energy efficiency at attractive pricing makes it easy for our customers to make responsible decisions for themselves and the environment.

Recruiting, developing and retaining a diverse and talented workforce.

Always acting with integrity and honesty we champion sound corporate and governance practices as codified in our Code of Business Ethics and Conduct.

ENERGY STAR

LSI is a long-standing member of the U.S. Government's ENERGY STAR program, which identifies and promotes energy-efficient products to help reduce greenhouse gas emissions. ENERGY STAR is a joint program of

the U.S. Environmental Protection Agency and the

U.S. Department of Energy, helping businesses and consumers save money and protect the environment through energy-efficient products and practices. The EPA website specifically designates the ENERGY STAR label as an Eco-Label/Recommendation.

We use our membership in the ENERGY STAR Program as a vehicle to design highly energy efficient and environmentally sustainable products that are listed

as DLC (DesignLight Consortium) qualified products. We are proud that 100 percent of our lighting fixtures have earned this designation. The DLC designation

of products makes our customers eligible for rebate incentives from utilities which in turn makes our products even more affordable for our customers. Our policy is to maintain this 100% percentage of eco-labeling for our lighting products and to add eco-label to more products.

LSI INDUSTRIES: SUSTAINABILITY REPORT 2025

LSI is devoted to being a responsible steward of the environment. As demand for electricity continues to increase, our customers and their communities look to us to provide product solutions to dramatically reduce their energy consumption, light pollution, and associated greenhouse gas emissions.

We manufacture products that help our customers develop green solutions for their communities - making a positive impact on the planet. As part of our approach, we commit the necessary resources to innovate new clean solutions and to comply with environmental laws.

LSI's lighting solutions utilize world class technology to radically reduce energy consumption. In 2023, LSI's lighting segment committed to a goal of improving the health and welfare of our communities by reducing carbon emissions by 5 million metric tons through 2033. This is the equivalent of taking 53,860,000 gasoline powered passenger vehicles off the road. These reductions will be achieved through sales of LED luminaries, controls and building management systems; updating older technologies in existing buildings;

and providing new construction projects with the latest most efficient lighting and controls technology. We are committed to innovating new eco-friendly technologies and improving our current products to be more sustainable.

Over the past century America has used synthetic refrigerants such as CFCs, HCFCs and HFCs, all of which damage the environment, either through ozone depletion or global warming. JSI committed to transitioning away from these materials to environmentally friendly natural refrigerants,

100% compliant with American Innovation and Manufacturing (AIM) Act

such as R-290 propane. R-290 is natural and does not contain synthetic chemicals that contribute to environmental damage. In 2023, JSI established a new manufacturing site for research and development of R-290 products and began shipping these products in 2024. JSI now uses 100% R-290 Propane in all its refrigerated systems.

Propane has zero Ozone depletion potential and has a global warming impact (GWP) of just three (3). In contrast, one of the most popular HFC refrigerants, R-404A, has a GWP of nearly four thousand (4,000).

Over the next six years these products will reduce GHG emissions by 35,000 total metric tons: the equivalent of growing 3,472,000 tree seedlings for 10 years.

Our operations leave a light environmental footprint. We use 16.56 million kWh of electricity from the grid, which consists of 86% of our energy usage. We do not maintain a fleet of vehicles. We produce 123 lbs/year of nitrogen oxide

(NOx); no Sulphur Oxide (SOx); 22,029 lbs. of volatile organic compounds (VOC); and 25 lbs. of particulate matter emissions (PM) and 5,972 lbs. of HAPS.

LSI is a very light consumer of water. Our facilities operate in areas with abundant access to water, with only 3.5% of our operations located in high water stress areas. Our operations use 18,776 ccf of water and discharge approximately the same amount. We do not recycle significant amounts of water.

Outdoor lights, such as those in parking lots and on buildings, can contribute to light pollution because they simply were not engineered to account for it. Many outdoor fixtures are omni- directional, throwing light in every direction away from the luminaire creating light pollution. LSI Lighting fixtures

are specifically designed to avoid this causing unnecessary light pollution. Our fixtures only point light where it is needed complying with dark sky codes protecting natural landscapes and wildlife. In addition to intelligent fixture design, we deploy a dedicated team of engineers and lighting planners that use advanced photometric technology to design custom lighting plans. These ultra-realistic models illustrate exactly how light

from their fixtures illuminates a specific area without intruding on neighbors or natural areas.

Responsibly Using Recyclable Materials

When we make sourcing decisions, we prioritize partners that use recycled or reclaimed materials, as well as materials that can be recycled when our products reach the end of their life-cycles.

We work with our suppliers to identify innovative ways to use and procure our raw materials. For example at least 95% of all our lighting packaging material is manufactured with 100% recycled material. Since steel is our single largest material purchase, we work with our steel suppliers, to ensure that their products meet our standards and we

also select for ways to reduce the environmental impacts associated with transporting the material. The steel we procure is comprised of 55 percent recycled metal, and at the end of the fixture's life, its steel housing is 100 percent recyclable.

In addition to recycling steel scrap, we use lean manufacturing processes to minimize the amount of waste we produce throughout our plants and office areas. We are committed to reusing and recycling materials whenever practical, including aluminum, castings, brass, copper, corrugated containers, pallets, computer equipment, paint and office paper.

We recycle 895 US Tons of materials that are a by-product of our manufacturing processes; resulting in 3,738 MT CO2e emissions saved.

As an example, our high-performance Mirada outdoor area lights use our advanced silicone optical system to cast light in precise directions. These products include multiple shield options that eliminate unwanted backlight.

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Products that Benefit Society

LSI Lighting products are used in schools, healthcare facilities, industrial settings and outdoor areas providing bright, energy-efficient light to increase safety and security. Proper lighting is linked to better academic performance for students and teachers.

LED lights in academic and professional settings result in higher levels of alertness, performance and comfort according to a study by the National Institute of Health.

Adequate and correctly installed LED light fixtures create a safe and secure environment which deter crime around retail and recreational areas with high pedestrian traffic.

The LED technology used in LSI Lighting products can reduce energy consumption by more than 80 percent compared to conventional bulb lights on average. Older lighting systems waste up to 90 percent of their energy in the form of heat. In contrast, LEDs convert about 95 percent of their energy into light and only emit five percent as heat.

As America becomes more energy-efficient, LSI products allow customers to update and replace their outdated lighting systems, as well as install

entirely new LED systems, with technology that contributes to overall energy reduction.

LSI INDUSTRIES: SUSTAINABILITY REPORT 2025

Our commitment to innovation and engineering excellence helps ensure that our products are environmentally friendly throughout their life cycles. We are proud to say that our lighting products are among the most innovative and energy-efficient in the world.

In fact, if we compare the average efficacy of every LED fixture sold by the company in 2024 to the combined efficacy of older bulb systems, our products helped customers reduce their energy consumption for lighting by up to 67 percent.

In addition, LSI has transitioned its entire product line away from inefficient bulb technology to highly efficient LED lighting solutions. Today, our outdoor and indoor lighting products reduce energy usage by 44 to 90 percent as compared to older, traditional lighting systems. We use our own lighting products throughout our factories and offices dramatically shrinking our energy usage.

Along with energy efficient LED technology, our lighting control systems produce additional energy savings, improve safety and help customers comply with lighting codes and ordinances. For example, our AirLink Blue wireless outdoor lighting control system uses photocontrols and motion sensors to reduce energy consumption and comply with various energy regulations, including California's Title 24 energy conservation requirements. Lighting projects that utilize LSI's control systems benefit from an additional 12% reduction in energy consumption.

We are continuously pushing to achieve the highest levels of quality across all aspects of our business. To help us meet and exceed our product quality goals, we operate our own state-of-the-art Underwriter Laboratories (UL) Certified Testing Labs at our Cincinnati, Ohio and Burlington, North Carolina facilities.

We also adhere to strict quality standards, including UL requirements, and we follow our rigorous Quality Management System (QMS). Our QMS is deployed at all of our lighting plants and was developed, and is regularly evaluated, according to ISO 9001:2015 standards.

In addition, through our participation with industry groups such as Design Lights Consortium, the Illuminating Engineering Society, the International Dark-Sky Association, the National Electrical Manufacturers Association and others, we are able to discuss best practices that impact quality, including energy-efficiency, new technology, manufacturing processes, materials and code compliance.

As a testament to our quality, we have had no recalls on our products and have not received any notice of a violation for nonconformance with regulatory labeling and/or marketing codes; nor have we ever been the subject of an enforcement action associated with false, deceptive, or unfair marketing, labeling or advertising.

REDUCTION IN CUSTOMER ENERGY CONSUMPTION

COMMITMENT TO QUALITY

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Disclaimer

LSI Industries Inc. published this content on May 05, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 06, 2025 at 01:53 UTC.