Drop an HDRI panorama into scene.environment and every PBR material reflects and is lit as if standing in that space (Image-Based Lighting). Since this site can’t load external images, it uses three.js’s RoomEnvironment addon — a Scene that procedurally builds a small virtual room — and bakes it into an environment texture on the fly with PMREMGenerator.
PMREMGenerator pre-convolves that scene at several blur levels (a Prefiltered Mipmapped Radiance Environment Map), so rougher materials automatically get blurrier reflections without recomputing anything per frame.
scene.environment drives reflections and lighting; put the same texture on scene.background to also use it as the visible backdrop. The demo places a fully smooth metal torus knot in this environment so you can watch the reflection flow across its surface.
When to use
When reflective materials — metal, glass — need to read as real. A genuine HDRI will look even more convincing when you can load one.