Larsen & Toubro on October 21 reaffirmed its commitment to integrate its ESG goals with business targets and is working towards becoming a net-zero company.
It launched its fourth Integrated Report, ‘Sustainable Progress for a Better World’, a comprehensive document that communicates the organisation’s strategy, governance, performance and prospects in the context of external environment and value creation.
Over the years L&T has been focusing on ESG parameters such as climate stewardship, circular economy, green offerings, green supply chain, employee and social welfare, workforce health & safety.
Operating primarily in the construction and engineering sector that is prone to climate change, L&T is incorporating climate related policies, including the NAPCC, TCFD and other similar guidelines into its business.
The company aims to become a leader in these areas with improved resource efficiency and conservation of vital natural resources. More than 10 pc 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. Through energy conservation measures and renewable energy, the company has avoided 33,500 tons of CO2 emissions during FY21.
On water management front, L&T has been excelling over the years. Fifty-seven per cent of wastewater was 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 tonnes of recycled steel and 2.4 million tons of fly ash. Today, 22 pc of its input material comes from recycled or eco-friendly sources.
The focus of the L&T’s strategy is to create value for its shareholders, investors, clients, employees, and societal stakeholders through economic benefits, fulfillment of social obligations, and ecological sustainability while promoting the L&T brand. This holistic and integrated approach is applied to its value-creation model based on the six capitals – financial capital, manufactured capital, intellectual capital, human capital, natural capital, and social and relationship capital.
L&T is using technology and innovation to achieve sustainable growth. Digital chipsets to track and monitor assets; and Geospatial tech, LiDAR and drone-based surveys have helped L&T capture and monitor site data remotely during the lockdown.
On social front, the company has touched lives of 1.2 million people in the community, and has spent Rs.150 crore for education, health, skill development and water & sanitation. In addition, Mindtree, LTI, L&T Technology Services (LTTS) and L&T Finance Holdings (LTFH) have contributed Rs. 80 crore towards CSR during the year.
SN 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 five-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.”