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L&T’s ESG thrust aims to achieve carbon, water neutrality in less than two decades

L&T launches its fourth Integrated Report, and announces commitments for carbon and water neutrality. The company’s Green Businesses Portfolio stood at Rs 277 billion in FY21, which is 29.6 percent of its revenue. L&T is integrating its ESG goals with business targets and is working towards becoming a ‘Net Zero’ company by 2040. 

October 21, 2021 / 08:52 PM IST
L&T, along with its subsidiaries, aims to achieve 'water neutrality' by the year 2035.

L&T, along with its subsidiaries, aims to achieve 'water neutrality' by the year 2035.

Large companies in India have been quick to embark on the road to sustainability and the articulation of their environmental, social, and governance (ESG) strategy has been a cornerstone of their endeavour for investor outreach. EPC major L&T in its integrated report on sustainability has targeted a carbon neutral and water neutral strategy for the group by the year 2040. L&T’s key subsidiaries Mindtree, L&T Infotech and L&T Tech Solutions are all part of the combined group effort to sustainability.

In FY21, the company’s Green Businesses Portfolio stood at Rs 277 billion, which is 29.6 percent of its revenue. Key measures in the last financial year include energy saving, focus on renewable modes of electricity, lower carbon emission, planting trees and community development.

S.N. Subrahmanyan, CEO and Managing Director, L&T said, “We are reaffirming our vision, policies, frameworks, roadmaps and action plans on ESG. Our ESG roadmap will align with our 5-year strategic plan - Lakshya 2026, and will reflect our commitment to climate leadership, water stewardship, circular economy, green supply chain, biodiversity, and green offerings. In line with the global push on ESG, we are gearing up for a step-change in our ambitions to scale new heights.”

FY21 Key Highlights

L&T spent Rs 150 crore on education, health, skill development, and water and sanitation. There are 150,000 fully grown trees on its campuses and planted nearly 1 million saplings in the fiscal. The company averted 33,500 tons of carbon equivalent emissions during the year. About 1.2 million lives were impacted through the community development programmes and the company achieved 1037 million accident-free man-hours across businesses.

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Target: Net Zero Carbon Emission

The company aims to achieve Carbon Neutrality by 2040, ahead of the Paris Agreement deadline of 2050. L&T said that it is incorporating climate-related policies, including the NAPCC, TCFD and other similar guidelines into its business. More than 10 percent of the total electricity consumed by the company comes from renewable sources. Cumulatively, the company has saved 128 million KWh of energy since 2008 which is equivalent to powering 60,000 households for one year.

Water Neutrality and Waste Management 

L&T, along with its subsidiaries, aims to achieve 'water neutrality' by the year 2035. L&T’s efforts on water conservation have resulted in 57 percent of wastewater being recycled and reused during FY21.

The company has also been focusing on material recycling. “Since the year 2008, the company has cumulatively used 43,068 tons of recycled steel and 2.4 million tons of fly ash," L&T said. Today, 22 percent of its input material comes from recycled or eco-friendly sources. Its green offerings at Rs 277 billion is 29.6 percent of its revenue.

L&T highlighted that during the financial year 20-21 it handled 834 projects across the world, and achieved 373,964 tonnes of factory output from its manufacturing businesses.
Nisha Poddar is an Editor-M&A, CNBC-TV18
first published: Oct 21, 2021 08:52 pm

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