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Replacement of lighting equipment for improved energy efficiency is one of several keystones for meeting higher corporate energy efficiency and sustainability targets. Meeting these targets under the artificially low energy prices of Saudi Arabia, coupled with an existing culture of wasteful energy usage, becomes more challenging. To meet energy efficiency targets under these challenging conditions it is essential to identify a systematic approach that companies should follow when performing lighting replacement to avoid unexpected pitfalls. This paper introduces a systematic approach to define a lighting replacement strategy that comprises the following: lighting type, location, efficacy, cost and service classification. The paper also presents an actual life-cycle cost example as a decision support tool to evaluate replacement cost effectiveness. Study results highlight the significant role lighting replacement can play to meet target energy consumption and reductions in CO2 emissions. The approach proposed in this paper can be adopted by organizations operating under similar environments that want to showcase their leadership in energy efficiency and environmental compliance.