Mumbai: Prime Minister Narendra Modi has consistently emphasised that India's economic growth and climate action must progress together, placing sustainability at the centre of the country's development agenda. As India works towards achieving net-zero emissions by 2070, industries are playing an increasingly important role in supporting this vision. Aligned to these national goals, under the leadership of CMD SN Subrahmanyan, L&T has accelerated investments in renewable energy, green infrastructure, sustainable finance, and low-carbon technologies. These commitments are supported by investments in renewable energy, green infrastructure, sustainable finance, and low-carbon technologies.
Key Highlights
Green Business portfolio valued at ₹787 billion (FY 2025–26)
51% of standalone revenue comes from climate-friendly and sustainable solutions
19% of Group-wide electricity sourced from renewable energy
1 million+ saplings planted during the year
Carbon Neutrality target by 2040
Water Neutrality target by 2035
What Are L&T's Sustainability Goals?
L&T has integrated sustainability into its core business strategy rather than treating it as a standalone ESG initiative. According to the company's Integrated Annual Report 2025–26, more than half of its standalone revenue now comes from climate-friendly and sustainable solutions.
Its Green Business portfolio, valued at ₹787 billion, includes projects across renewable energy, green manufacturing, sustainable infrastructure, and energy transition, reflecting the company's growing focus on supporting India's low-carbon economy.
How Is L&T Reducing Its Environmental Impact?
Along with delivering sustainability-focused projects, L&T is also working to reduce the environmental impact of its own operations.
Some of the key initiatives include:
19% of Group-wide electricity sourced from renewable energy.
More than 1 million saplings planted to support biodiversity.
Programmes focused on carbon reduction, water conservation, recycling, energy efficiency, pollution control, and resource conservation across its operations.
These initiatives are being implemented across L&T's operations at an industrial scale rather than as pilot projects. They also demonstrate that sustainability has been integrated into the company's day-to-day operations and long-term planning.
How Does L&T Strengthen ESG Governance?
L&T's ESG strategy also focuses on governance and accountability.
Some of the key measures include:
Linking safety performance with annual business performance.
Strengthening POSH mechanisms and workplace grievance redressal.
Publishing financial and non-financial disclosures through its Integrated Annual Report.
Embedding ESG metrics across business verticals and extending sustainability practices across its supplier and vendor ecosystem.
These initiatives help strengthen transparency and encourage responsible business practices throughout the value chain.
How Is L&T Supporting Green Finance?
L&T has also taken significant steps in sustainable finance.
Key initiatives include:
Launch of India's first listed Sustainability-Linked Bond, aimed at raising ₹500 crore under SEBI's ESG Bond Framework.
A USD 700 million Sustainability-Linked Trade Facility with Standard Chartered to support sustainability-linked financing.
They also reflect investor confidence in L&T's long-term sustainability roadmap.
How Is L&T Supporting India's Energy Transition?
Beyond its own operational targets, L&T is contributing to India's clean energy transition through large-scale engineering and infrastructure projects, aligning with the Government of India's broader vision of accelerating the country's transition towards a low-carbon economy.
The company is:
Executing EPC projects in renewable energy.
Supporting grid modernisation to improve renewable energy integration.
Developing carbon capture, utilisation, and storage (CCUS) solutions for industrial decarbonisation.
L&T's Role in Green Hydrogen
L&T is supporting India's National Green Hydrogen Mission by manufacturing indigenous alkaline electrolysers. These technologies are expected to accelerate the adoption of green hydrogen and green ammonia across industrial sectors.
L&T's Contribution to the ITER Fusion Project
L&T is also a key Indian partner in the ITER (International Thermonuclear Experimental Reactor) project in France, one of the world's largest international scientific collaborations focused on developing fusion energy. The company manufactures critical engineering components for the project, contributing to future clean energy technologies.
Looking Ahead
PM Modi called for climate leadership. L&T answered and voluntarily raised the bar. Backed by investments in renewable energy, sustainable infrastructure, green hydrogen, ESG governance, and sustainable finance, L&T demonstrates that sustainability can be integrated into the core of a business while creating long-term value. The company's approach shows that responsible business practices and profitability can go hand in hand, setting an example for other corporates to emulate while contributing to India's broader climate and energy transition goals.
