Indian multinational conglomerate Larsen & Toubro (L&T) is taking a big step forward in sustainable business. Following its issuance of India’s first listed sustainability-linked bond worth USD 60 million under SEBI’s ESG Bond Framework in June, the company has now secured a USD 700 million Sustainability-Linked Trade Facility (SLTF) with Standard Chartered.
This move highlights L&T’s ongoing commitment to sustainable practices and its efforts to expand its sustainable business portfolio.
The SLTF is tied to specific key performance indicators (KPIs), including greenhouse gas emissions intensity and freshwater withdrawal, which are central to L&T’s operations. The facility is also aligned with the Loan Market Association’s Sustainability-Linked Loan Principles, ensuring it meets global market standards for sustainability-linked financing.
To ensure credibility, the KPIs and targets under the SLTF have been reviewed by DNV, a global independent risk management and quality assurance expert. Performance against these KPIs will be disclosed annually and verified by an independent third party, reinforcing transparency, accountability, and stakeholder confidence.
L&T spokesperson stated: “By securing this SLTF, L&T reaffirms its leadership in driving sustainable business practices. Our long-term targets of carbon neutrality by 2040 and water neutrality by 2035 are strategic imperatives that underpin innovation, operational efficiency and resilience. Sustainability is integral to our corporate ethos, guiding investments in low-carbon technologies, resource optimisation and biodiversity conservation. Our robust environmental, social and governance (ESG) performance has bolstered investor confidence, facilitating access to sustainable finance and reinforcing our position as a leader in responsible growth and long-term value creation”.