Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Conservation
• Water Conservation
• Safety
• Health
• Community Development
• Employee Welfare
• Training and Skill Development

Environmental Achievements

• Reduced direct energy consumption by 11.75%
• Reduced indirect energy consumption by 10.98%
• Reduced GHG emissions from direct energy consumption by 7.25%
• Reduced GHG emissions from indirect energy consumption by 16.15%
• Achieved LEED Platinum certification for Technology Block at Hazira

Social Achievements

• Trained 3,788 youth through Construction Skills Training Institutes (CSTI)
• Reached out to over 170,000 mothers and children through health centers and programs
• Boosted talent recruitment, maintaining over 90% employee retention rate
• Provided comfortable living facilities for workmen at major sites (e.g., DIAL)

Governance Achievements

• Maintained high standards of accountability and ethics
• No incidents of corruption reported
• Complied with all applicable laws and regulations

Climate Goals & Targets

Environmental Challenges

• Global economic meltdown
• Delays in project implementation
• Shortage of skilled manpower
• High levels of risk in construction projects
• Employee retention
• Ensuring protection of human rights for contract workers

Mitigation Strategies

• Formulated risk management and contract processes
• Proactively reaching out to rural workforce through CSTIs
• Implemented safety systems and standard procedures
• Bolstered talent recruitment drives
• Strengthened vendor development plan

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sourcing about 80% of requirements from local suppliers
• Vendor development plan focusing on sustainability practices

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products
• Exploring market opportunities and increase usage of renewable energy sources

Reporting Standards

Frameworks Used: GRI-G3

Certifications: ISO 9001, ISO 14001, OHSAS 18001

Third-party Assurance: Ernst & Young Private Limited, India

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Powerman energy management system
• New busbar designs using 40% less copper
• High Voltage Distribution System reducing transmission & distribution losses by 50%
• RoHS compliant components
• Energy-efficient electrical drives and soft starters

Awards & Recognition

• Golden Peacock Award for Corporate Social Responsibility
• LEED Platinum Rating for Technology Block at Hazira
• International Safety Award from British Safety Council
• Golden Safety Award and Gold Award from National Safety Council of India
• Gold Awards from The Royal Society for the Prevention of Accidents
• All India Engineering Export Award
• INS Industrial Excellence Award
• Padma Bhushan for A.M. Naik

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Conservation
• Water Conservation
• Waste Management
• Green Buildings
• Human Capital Development
• Community Development
• Occupational Health and Safety
• Human Rights
• Supplier Relations
• Stakeholder Engagement
• Corporate Governance

Environmental Achievements

• 15,440 GJ of energy saved through various initiatives.
• 8.7 MW wind farm set up in South India for captive consumption.
• Four buildings certified as green buildings, with plans for eight more.
• 9 out of 19 locations achieved zero wastewater discharge.
• Significant reduction in NOx, SOx, and particulate matter emissions.
• Reduction in Ozone Depleting Substances usage.

Social Achievements

• Over 300,000 lives touched through Corporate Social Initiatives (CSI) in 2010.
• Employee volunteering increased to 4,500.
• Medical attention provided to over 220,000 mothers and children.
• Over 15,000 skilled workforce trained through Construction Skills Training Institutes (CSTIs).
• 26% reduction in employee turnover compared to the previous year.

Governance Achievements

• Completed carbon footprint mapping and energy audits of operations.
• Implemented Project Prithvi to streamline ESG performance measurement and reporting.
• Implemented Project Lakshya to upgrade capabilities and systems.
• Incorporated ISO 9001, ISO 14001, OHSAS 18001 across 19 locations.
• No incidents of corruption reported during the reporting year.

Climate Goals & Targets

Environmental Challenges

• Global economic slowdown.
• Need to balance economic growth with environmental sustainability.
• Managing risks associated with large-scale projects.
• Meeting stakeholder expectations across diverse regions and cultures.
• Maintaining high safety standards in a labor-intensive industry.

Mitigation Strategies

• Strategic investments in growth areas.
• Adoption of cleaner technologies and energy-efficient practices.
• Robust risk management framework.
• Systematic stakeholder engagement.
• Comprehensive occupational health and safety programs.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Preference given to local vendors; quality systems support and training provided to SMEs.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and services; participation in new low-carbon solutions.

Reporting Standards

Frameworks Used: GRI G3 2006

Certifications: ISO 14001, OHSAS 18001

Third-party Assurance: Det Norske Veritas AS (DNV)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Energy-efficient products; green buildings; RoHS compliant components.

Awards & Recognition

• Business Standard 'Company of the Year' Award; NDTV Profit Business Leadership Award; ranked among 'World's 50 Most Reputable Firms'; Forbes Asia's Fabulous 50 List; Wall Street Journal Asia Survey; Business Today's 'Best Company to Work for' in Manufacturing; two British Safety Council Swords of Honour; Finance Asia's 'Best Managed Companies'; EuroFinance Award; IMC Ramkrishna Bajaj National Quality Award; CNBC TV 18's 'CFO of the Year'.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Conservation
• Water Conservation
• Safety
• Health
• Community Development
• Education
• Skill Building
• Human Rights
• Product Stewardship
• Economic Performance
• Social Performance
• Environmental Performance
• Governance

Environmental Achievements

• Constructed 10.2 million sq. ft of certified green buildings for customers (largest by any construction company in India)
• Increased renewable energy share to 12.11% of total energy mix (50% increase from previous year)
• Conserved 97,783 GJ of energy since 2008
• 15 out of 22 locations are zero wastewater discharge units
• Overall 2.5% reduction in water consumption w.r.t 2008-09
• Planted 260,000+ tree saplings

Social Achievements

• Social initiatives positively impacted over 400,000 people (37% rise in beneficiaries)
• CSTI trained over 10,700 individuals
• Implemented WoW (Working on Wellness) program
• Frequency Rate reduction of 60% w.r.t 2007-08; Severity Rate reduction of 45% w.r.t 2007-08

Governance Achievements

• Successfully completed the first phase of a five-year plan for the formation of Independent Companies (ICs)
• Awarded the "National Award for Excellence in Corporate Governance-2010" by the Institute of Company Secretaries of India

Climate Goals & Targets

Environmental Challenges

• Raw material inflation and increased operating expenses
• Global financial crisis
• Inadequacy of sustainability practices in the supply chain
• Increase in input costs
• Recession in the global economy

Mitigation Strategies

• Optimal sourcing, smart contracting, and timely & cost-efficient execution of orders
• Commitment to sustainability and focus on talent management, operational excellence, and partnership management
• Developed an Environment & Social 'Code of Conduct' for key suppliers
• Procurement optimisation, value engineering, LEAN manufacturing, and product design initiatives
• Increasing operational efficiencies, exploring new revenue sources, investing in future technologies

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Developed an Environment & Social 'Code of Conduct' for key suppliers
• 80% of requirements sourced from local suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and services; renewable energy investments

Reporting Standards

Frameworks Used: GRI G3

Certifications: ISO 14001, OHSAS 18001

Third-party Assurance: Det Norske Veritas AS (DNV)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Green buildings, solar EPC solutions, energy conservation and fuel switch projects, energy management solutions, coal gasifiers, wind turbine castings, carbon footprint mapping solutions, smart meters, Building Management System, Unitrax® (SaaS-based transfer agency platform), iVisionmax - TraffiX™ (highway traffic management system), iVisionmax - PMS™ (industrial power management system)

Awards & Recognition

• Numerous awards for CSR, sustainability, corporate governance, training, and product innovation (see page 94-95)

Environmental Metrics

ESG Focus Areas

• Energy conservation & Greenhouse Gas (GHG) mitigation
• Safety culture
• Water conservation
• Material management
• Employee health
• Social interventions
• Economic growth
• Environmental stewardship
• Inclusive growth
• Human rights
• Corporate governance

Environmental Achievements

• 19 out of 22 campuses achieved zero wastewater discharge status, with four being water positive.
• Reduced water consumption by over 20% w.r.t. 2008-09.
• Increased check dams from 50 to 100, benefiting tribal communities.
• India's largest EPC solution provider of large-scale solar power plants.
• Commissioned two major solar PV power plants (20 MW and 17 MW).
• Constructing a 125 MW Solar Thermal Power Project (largest in Asia).
• 48.44% increase in energy conservation w.r.t. 2011-12.
• Reduced total energy consumption by 3.3% and energy consumption intensity by 2.5% w.r.t. 2011-12.
• Reduced total Scope 2 GHG emissions by 25% and Scope 2 GHG emissions intensity by 23% w.r.t. 2011-12.
• Reduced total Scope 1 GHG emissions by 1% and Scope 1 GHG emissions intensity by 0.26% w.r.t. 2011-12.
• 25.4 million sq. ft. of certified green building space constructed for clients.
• 1.96 million sq. ft. of green building space within L&T campuses (including a silver-rated Green Factory).

Social Achievements

• Increased beneficiaries of social interventions by 30% to over 700,000.
• Introduced vocational training and computer programs at eight new locations, including one specifically for women.
• Provided facilities for better hygiene, sanitation, and drinking water to 150 rural schools.
• Inaugurated three new L&T Health Centres and added seven mobile health clinics.
• Launched 'Suraksha Jeet' safety initiative, aligning safety performance with global standards.
• Received various safety awards, including the British Safety Council's Five Star Rating & Sword of Honour.
• Strengthened the 5R approach (Recruitment, Remuneration, Recognition, Retention, Recreation) for talent management.
• Implemented 'Working on Wellness' initiative to enhance employee well-being.

Governance Achievements

• Published the sixth Sustainability Report, conforming to GRI G3 guidelines and achieving an A+ application level.
• Published Annual Business Responsibility Report (ABRR) as per SEBI mandate.
• Merged Sustainability Policy with Corporate Social Initiatives Policy, creating a CSR Policy.
• Reviewed Corporate Human Resource Policy and Corporate Environment, Health & Safety (EHS) Policy.
• Implemented a four-tier Corporate Governance structure.
• Received the Indian Chamber of Commerce's Corporate Governance & Sustainability Vision Award.

Climate Goals & Targets

Environmental Challenges

• Adverse macroeconomic climate.
• Uncertain domestic growth.
• Slowdown in industrial production.
• High interest rates and liquidity concerns.
• Intense competition.
• Lack of skilled workmen and productivity issues.
• Water scarcity.
• Challenges in community engagements.
• Diminishing opportunities in India due to economic slowdown.
• Increased complexity and scale of business opportunities.
• Fluctuations in foreign exchange rates and commodity prices.
• Inadequacy of sustainability practices in the supply chain.
• Technology obsolescence.
• Increase in input costs.
• Significant skill and experience gaps.
• Intense competition.
• Commodity risk.

Mitigation Strategies

• Diversified markets across multiple geographies (Middle East, Southeast Asia, Australia, CIS, Africa).
• Established a dedicated 'Water & Renewable Energy' business unit.
• Commissioned a 'Green Factory' at Vadodara.
• Implemented company-wide water conservation initiative.
• Implemented rigorous process management and periodic review of processes.
• Developed 'LAKSHYA 2016' strategy to incorporate strategic changes.
• Aggressively pursuing international opportunities.
• Robust risk management process and risk sharing through strategic alliances.
• Mitigating risk by hedging or taking suitable covers.
• Engaging specialized talent and providing better exposure for job enrichment.
• Continued thrust on safety and wellness initiatives.
• Leveraging product adjacencies.
• Addressing emerging business opportunities in modular process plants, jack-up rigs, FPSO topsides, and deepwater subsea systems.
• Continued emphasis on procurement optimization, value engineering, and lean manufacturing.
• Building awareness and establishing a process for assessing risks in the supply chain.
• Restructuring and improving processes to improve the speed of introduction of new products.
• Focus on R&D to identify and develop potential new technologies.
• Leadership and skill development programs.
• Broadening product offerings, after-sales support and service, strengthening dealership network and financing tie-ups.
• Long-term rate contracts with vendors, price variation clause, Forex hedging.
• Acquiring greater management control over erstwhile Joint Ventures.
• Strengthening international footprint and in-house product development center.
• Establishing partnerships in key geographies.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Environment & social 'Code of Conduct' for suppliers.
• Local sourcing (80% of requirements fulfilled through local suppliers).

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and processes.
• Renewable energy investments.

Reporting Standards

Frameworks Used: GRI G3

Certifications: ISO 9001, ISO 14001, OHSAS 18001, ISO 27001

Third-party Assurance: Ernst & Young (E&Y), India

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 6 (Clean Water and Sanitation)
• Goal 13 (Climate Action)
• Goal 4 (Quality Education)
• Goal 3 (Good Health and Well-being)
• Goal 8 (Decent Work and Economic Growth)

Various initiatives contribute to these goals as detailed in the report.

Sustainable Products & Innovation

• D.VA solar lantern
• MCOMP motor protection relay
• EXORA range of modular devices
• MO-C contactors
• Project Monitoring System

Awards & Recognition

• Newsweek's Top 4 Greenest Company in the industrial sector
• Dow Jones Sustainability Index - 2012 (emerging markets)
• World CSR Congress' Caring Company Award
• ICC Corporate Governance & Sustainability Vision Award
• ABCI's Champion of Champions
• Forbes' Top 10 global innovative companies
• Many others listed in the report

Environmental Metrics

ESG Focus Areas

• Safety
• Community Development
• Environmental Protection
• Sustainability

Environmental Achievements

• Developed a method to crush tunnel muck and use it as a substitute for aggregates and sand in concrete at the Singoli Bhatwari HEP project, reducing the demand for aggregates and minimizing environmental impact.
• Developed and implemented the D.VA solar lantern, reducing reliance on kerosene and lowering electricity bills.

Social Achievements

• Initiated Project Sarvodaya in Filterpada, focusing on health and livelihood needs of the community, particularly women, through vocational training and health initiatives.
• Established the Safety Innovation School at Hazira, providing experiential safety training.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO 9001, ISO 14001, OHSAS 18001, ISO 50001, ISO/IEC 27001, SEI-CMMI Level 5, ISO 29001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• D.VA solar lantern

Awards & Recognition

• The Economic Times Good Corporate Citizen Award
• Golden Peacock award for Occupational Health & Safety
• FICCI platinum award and certificate for manufacturing excellence
• British Safety Council International Safety merit award
• RoSPA Gold award
• India Design Council’s India Design Mark Award (IMark) for D.VA solar lantern

Environmental Metrics

ESG Focus Areas

• Environmental responsibility
• Stakeholder engagement
• Business sustainability

Environmental Achievements

• All 24 L&T campuses in India are now Water Positive
• More than 82 Million units (kWh) of energy saved avoiding over 68,000 tons of CO2 emissions at our establishments, cumulatively over the last eight years
• 34.7 million units (kWh) of renewable energy used in campuses, contributing to more than 7.1% of our electrical energy mix
• 26,583 tons of Steel and 488 tons of Zinc, recycled during the last five years
• L&T currently has 16 green buildings and one green factory, covering 2.3 million square feet of green building area within our campuses
• Achieved 11% reduction in specific water consumption (domestic) m3/ workforce since last year

Social Achievements

• Reached out to 1.47 million beneficiaries in 2016-17 through Community Development Programmes
• In 2016-17, 3,366 employees opted to volunteer, and worked on various initiatives
• Nine Construction Skills Training Institutes (CSTIs) impart training in formwork, carpentry, bar-bending, steel-fixing, masonry, construction, electrician skills and welding

Governance Achievements

• The report adheres to the Global Reporting Initiative (GRI) Standard and is independently vetted by a third party assurance agency
• It is also our annual communication on progress, in line with the United Nation Global Compact
• No incidences of corruption were reported during the year

Climate Goals & Targets

Environmental Challenges

• delays due to budget / funding issues in government projects
• Impact of demonetization on real estate
• Increased competition in the construction industry
• Lack of availability of skilled workforce
• Availability of skilled sub-contractors and vendors
• Project delays
• Construction costs will rise due to increased material and labour costs
• Construction firms will face increased scrutiny and prosecution over instances of safety violations and fraud
• Talent gap
• Reducing environmental impact and enhancing positive social impact
• Reduced capital investment in steel industry
• Delay in land acquisition and environmental approvals impacting project schedules
• Safe and congenial working environment
• Rising demand for trained and skilled labour force
• Right of Way (ROW) issues
• Longer Operations & Maintenance (O&M) periods are bundled with EPC Contract
• Budgetary issues with client (State Government)
• Bulk materials shortage due to mining issues at various projects
• Motivating staff in remote locations is a challenge

Mitigation Strategies

• Target high value projects with national/state importance
• Due diligence of the project financing structure
• Strong networks with various stakeholders within Government bodies
• Target major clients with healthy financials and customer reach
• Securing project funding
• Optimizing project progress in line with funding capabilities of the client
• Continued focus on cost and time optimization to maintain profitability levels
• Improved focus on mechanization and introduction of automation and robotics
• Continued focus on developing skilled workforce through Construction Skills Training Institutes
• ‘On job’ skill-based, training programmes on site by the Workmen Management Centre
• Employing sub-contractors/vendors with healthy credentials
• Developing various sub-contractors and utilizing their skills in future projects
• Majority of contracts have escalation clauses supporting the price increase of basic materials
• Mitigated through resource optimization and claims with the clients
• Further strengthening internal processes
• Developing the required skill sets and ensuring proper planning to envisage delays
• Develop and absorb new technologies, and vendors
• Back-to-back arrangement with sub-contractors
• On-job training of workmen on safe work methods and sharing of incident information at sites
• Rewarding the workmen for reporting unsafe conditions at project sites
• Periodic health check-ups
• Ensuring basic hygiene at labour colonies by providing and maintaining drinking water and sanitation facilities
• Propagating Employees' Code of Conduct
• Leadership pipeline development to recognize and develop future leaders
• Skill-based training to staff to foster leadership qualities
• Harvesting solar energy by installing solar LED lights at staff and labour colonies, at sites
• Replacement of halogen bulbs with LED Lights at project sites
• Planting and maintaining trees at construction sites and office campuses
• Wastewater treatment plants at larger sites to reduce pollution
• Increased business focus on non-ferrous, mining, mineral beneficiation, material handling and coal washery projects in India
• Incorporate proper contract clauses for delay
• Adoption of proper dispute resolution mechanism
• Mobilization based on clearances available
• Engaging skilled workmen on site trained at the Company’s dedicated Construction Skill Training Institutes
• Retention and tracking of skilled workmen through a database that is compiled in-house
• Continuous follow-up with clients and taking proactive steps to get ROW clearances
• Dedicated O&M segment is formed to streamline O&M operations
• Detailed analysis of client’s financial status during pre-bid stage and review of the same by Risk Committee
• Project level detailed material planning to procure in advance, to avoid material shortages
• Preference is given to local staff, ensuring that safety and basic requirements are taken care of

Supply Chain Management

Responsible Procurement

• Environmental & Social Code of Conduct for Suppliers integrated with the Business Code of Conduct for suppliers

Climate-Related Risks & Opportunities

Physical Risks

• extreme weather events impacting construction and manufacturing

Transition Risks

• regulatory changes on GHG emissions

Opportunities

• development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Standards: Comprehensive option, United Nations Global Compact

Third-party Assurance: Bureau Veritas, India

UN Sustainable Development Goals

• Goal 2
• Goal 3
• Goal 4
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 15
• Goal 17

L&T’s practices are aligned to Sustainable Development Goals in various ways, including promoting use of renewable energy, green buildings and energy efficiency; skilling youth; empowering women for self-employment; improving water availability; and creating livelihood opportunities.

Sustainable Products & Innovation

• Solar power plant solutions
• Small hydro-power plants
• Efficient power transmission and distribution systems
• Energy-efficient equipment
• Metro and mono rail systems
• Green buildings
• Water treatment, recycling & distribution infrastructure
• Supercritical and ultra-supercritical thermal power plants & equipment
• Coal gasifiers

Awards & Recognition

• ICC Water Stewardship Award 2017
• Best Practices Award for Sustainable Development Goals (UNGC)
• CII ‘Most Innovative Environmental Project’ Award 2017
• Economic Times Iconic Brand of India Award
• ICSI National Award for Excellence in Corporate Governance
• FICCI Quality Systems Excellence Award
• CII-EXIM Bank Award for Business Excellence
• Best Capital Projects & Infrastructure Risk Management Award (CNBC TV18)
• BML Munjal Award 2017 for ‘Business Excellence through Learning & Development’
• Asia Pacific Risk Management Award: ‘Best Risk Training Program of the Year’

Environmental Metrics

ESG Focus Areas

• Education
• Health
• Skill-building
• Water and Sanitation

Environmental Achievements

• Increased groundwater levels in several water-stressed regions through water conservation projects.
• Protected 2,000 hectares of land from direct runoff.
• Increased area under cultivation/irrigation by 89%.

Social Achievements

• Reached 1.21 million beneficiaries with CSR initiatives despite the COVID-19 pandemic.
• Provided food and essential supplies to 1400 families in Mumbai.
• Served 43,150 meals to frontline healthcare workers in Chennai.
• Implemented remote teaching and learning methods, providing education to 80% of children under various projects.
• Trained 17,635 youth in various vocational courses at Construction Skills Training Institutes (CSTIs), with 35% securing employment.
• Empowered women through SHGs, resulting in increased income and self-employment opportunities.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and resultant lockdown impacted CSR initiatives and access to beneficiaries.
• Restrictions on movement and social distancing protocols hampered project activities.
• Challenges in recruiting and training new batches at CSTIs due to the pandemic.
• Limited access to digital platforms and resources in rural communities.

Mitigation Strategies

• Re-worked CSR strategy to implement initial response, focusing on support for ongoing projects, impact analysis, and innovative solutions.
• Reallocated funds worth ₹36 crore for COVID care.
• Utilized internal and external resources to overcome challenges in communication, safety, and outreach.
• Implemented remote online monitoring systems to ensure effective delivery of interventions.
• Converted theoretical training modules into digital formats for CSTIs.
• Implemented strict COVID-19 protocols at CSTIs, including online induction and practical training in small groups.
• Used digital platforms for communication and project implementation.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 3 (Good Health and Well-being)
• SDG 4 (Quality Education)
• SDG 6 (Clean Water and Sanitation)
• SDG 8 (Decent Work and Economic Growth)
• SDG 10 (Reduced Inequalities)

L&T's CSR initiatives contribute to these goals through various projects related to health, education, water and sanitation, skill development, and community empowerment.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Avoided emissions equivalent to 29,116 tCO2e during FY 2022-23 through renewables.
• Avoided emissions of 684,669 tCO2e during the year mainly from use of fly ash and steel plant slag.
• Improved water consumption intensity by 8.9%.
• Increased use of eco-friendly and recyclable materials from 18% in FY 2021-22 to 24% in FY 2022-23.
• Achieved 37% Green Business portfolio share of revenue in FY 2022-23 (target 40% by FY 2025-26).

Social Achievements

• 1.5 million lives impacted through CSR initiatives in FY 2022-23.
• 37,097 employees and over 277,000 workers trained in various skills, health and well-being, safety, etc.
• Improved water table by 1.5 meters on average in Integrated Community Development Programme (ICDP) locations.

Governance Achievements

• Released Equal Opportunity Policy and ‘Public Policy Advocacy’ Policy during the year.
• Formulated an Anti-Bribery and Anti-Corruption Policy and released it in March 2023.

Climate Goals & Targets

Environmental Challenges

• Balancing growth aspirations with minimizing environmental impact.
• Implementing initiatives across 700 project sites, many in remote locations.
• Cyber security concerns.

Mitigation Strategies

• Improvement in energy efficiency of operations and increased use of renewable energy.
• Initiatives focused on reducing diesel consumption, switching to grid power, replacing old equipment, upgrading HVAC systems, and using energy-efficient lighting.
• Installing on-site solar panels and sourcing renewable power through power purchase agreements and green tariffs.
• Increased use of eco-friendly and recyclable materials.
• Training on circular economy.
• Mangrove plantation project in Hazira.
• Water recycling and conservation.
• Developing a robust multi-year cyber security and resiliency roadmap and investing in state-of-the-art security platforms/tools and technologies.
• Implementing a groupwide Cyber Risk Assurance Framework and operationalising a Security Operations Centre.

Supply Chain Management

Supplier Audits: Top 25 suppliers (35% of procurement value in construction business) assessed on ESG parameters.

Responsible Procurement

• Supplier Code of Conduct including commitment to environmental and social aspects.
• Preference for sustainable materials.

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products
• Green hydrogen business

Reporting Standards

Frameworks Used: SEBI (Listing obligation and Disclosure Requirements) Regulations, 2015

Certifications: ISO 14001, ISO 50001, ISO 45001

Third-party Assurance: DNV India

Sustainable Products & Innovation

• Green Hydrogen plant

Awards & Recognition

• Global No. 3 in the ‘Top 200 Environmental Firms’ list by Environment News Record (ENR)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Stewardship
• Biodiversity
• Circular Economy
• Human Rights
• Workforce Well-being
• Community Development
• Supply Chain Sustainability
• Governance

Environmental Achievements

• Overall GHG emission intensity reduced by 12.2% in FY 2023-24 (7.8 tCO2e/¢ Cr in FY 2023-24 compared to 8.9 tCO2e/¢ Cr of the previous FY 2022-23)
• Planted around 4 million saplings
• Approximately 32% of input material was eco-friendly and non-virgin material in FY 2023-24
• Achieved 50% Green Business portfolio (target was 40%)

Social Achievements

• CSR initiatives impacted 1.6 million lives
• Launched Project NEEV (Nurture, Educate, Empower to create Value) to inculcate a high-performance work culture
• Maintained hiring of 30% women Graduate Engineer Trainee (GET) and Post Graduate Engineer Trainee (PGET)

Governance Achievements

• Strengthened policies and processes, improving systems, translating plans into action towards achieving targets, continuous monitoring and review and building capacity of the workforce

Climate Goals & Targets

Environmental Challenges

• Challenges in increasing sourcing of renewable power (stood at 9.2% of electricity consumption)
• Significant challenges in implementing renewable energy strategies owing to temporary operations at project sites, open boundaries, and extensive spatial coverage
• Challenges in sourcing renewable energy at project sites due to unavailability of adequate area for installing solar modules, difficulties in getting green open access for temporary connections, developers’ preference for long term power purchase agreements (10-15 years) and varying regulations and charges across the states

Mitigation Strategies

• Formed two high-level taskforces to help increase renewable electricity sourcing and reduce diesel consumption
• Implementing several initiatives to progress towards targets
• Exploring different options for tracking survival and growth of saplings
• Focusing on reducing water consumption intensity through initiatives such as water use efficiency, recycling of wastewater, rainwater harvesting and use of treated wastewater from municipal corporations
• Undertaking significant water conservation and ground water recharge through projects under CSR programmes
• Initiated steps for a third-party assessment to estimate the positive impact of CSR initiatives
• Taking numerous steps for Circular Economy, including use of recycled or non-virgin material
• Assessing supply chain partners on ESG parameters (started with 25 in FY 2022-23 and scaled up to 200 in FY 2023-24)

Supply Chain Management

Supplier Audits: 200 in FY 2023-24

Responsible Procurement

• Green Supply Chain Policy
• Code of Conduct for Suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: BRSR

Certifications: ISO 14001, ISO 45001, SA8000

Third-party Assurance: Deloitte Haskins & Sells LLP

Awards & Recognition

• Ranked third globally in ‘Top 200 Environmental Firms’ list by Engineering News Record (ENR)