Mumbai: Engineering and infrastructure giant Larsen & Toubro (L&T) has taken another decisive step in its sustainability journey by securing a USD 700 million Sustainability-Linked Trade Facility (SLTF) from Standard Chartered Bank. This follows its pioneering move earlier this year when it issued India’s first listed sustainability-linked bond worth USD 60 million under SEBI’s ESG Bond Framework.
The SLTF is structured around measurable environmental performance indicators, specifically targeting reductions in greenhouse gas emissions intensity and freshwater withdrawal. These KPIs are aligned with the Loan Market Association’s Sustainability-Linked Loan Principles, ensuring global best practices in sustainable finance. Independent assurance firm DNV has provided a second-party opinion on the robustness of these targets, and L&T has committed to annual third-party verification to maintain transparency and stakeholder trust.
An L&T spokesperson emphasized that the facility supports the company’s long-term goals of achieving carbon neutrality by 2040 and water neutrality by 2035. “Sustainability is not just a compliance metric—it’s embedded in our corporate DNA,” the spokesperson said, highlighting L&T’s investments in low-carbon technologies, biodiversity conservation, and resource optimization.
Standard Chartered’s Head of Sustainable Finance Origination, Shobana Chawla, noted the bank’s strategic role in supporting India’s transition to a greener economy. “This facility enables us to partner with L&T on their decarbonisation journey, helping deliver on ambitious sustainability targets,” she said.
The SLTF not only strengthens L&T’s ESG credentials but also signals growing investor confidence in the company’s responsible growth strategy. With this move, L&T continues to position itself as a frontrunner in sustainable infrastructure development, setting benchmarks for corporate India in climate-conscious financing.
