Larsen & Toubro (L&T) has accelerated its long-term climate strategy by targeting carbon neutrality by 2040 and water neutrality by 2035, while reporting that more than half of its standalone revenue now comes from climate-friendly businesses, signalling a significant shift in the company’s business model towards low-carbon growth.
The engineering and infrastructure company has positioned sustainability at the centre of its growth strategy, with its green business portfolio covering renewable energy, green hydrogen, carbon capture technologies, sustainable infrastructure and climate-focused engineering solutions. The company said its climate-focused businesses generated 51 per cent of standalone revenue during FY26, while its Green Business portfolio stood at ₹787 billion.
The targets place the company ahead of India’s national commitment to achieve net-zero emissions by 2070. Under the leadership of Chairman and Managing Director S. N. Subrahmanyan, the company is pursuing a roadmap that aims to reduce its environmental footprint while expanding investments in clean-energy technologies.
L&T said it has increased the use of renewable energy across its operations, with around 19 per cent of the Group’s electricity consumption now being sourced from renewable energy. During the year, the company also planted more than one million saplings and implemented initiatives focused on reducing carbon emissions, improving water security, increasing recycling and reuse of materials, enhancing energy efficiency, controlling air pollution and conserving natural resources.
The sustainability programme also extends to the company’s governance framework. Safety performance has been linked to annual business evaluations, while strengthened Prevention of Sexual Harassment (POSH) mechanisms and grievance redressal systems have been introduced to promote workplace diversity and inclusion. The company said environmental, social and governance (ESG) performance is monitored across business verticals through its Integrated Annual Report, with suppliers and vendors also encouraged to adopt similar sustainability standards.
L&T has also expanded its presence in sustainable finance. The company launched India’s first listed Sustainability-Linked Bond under the Securities and Exchange Board of India (SEBI) ESG Bond Framework to raise ₹500 crore. It has also entered into a US$700 million Sustainability-Linked Trade Facility with Standard Chartered.
The company’s climate strategy includes engineering, procurement and construction (EPC) projects in renewable energy, grid modernisation and industrial decarbonisation through carbon capture, utilisation and storage (CCUS) solutions.
L&T is also supporting the National Green Hydrogen Mission by manufacturing indigenous alkaline electrolysers designed for industrial-scale production of green hydrogen and green ammonia. The company said these technologies are expected to contribute to reducing emissions in hard-to-abate industrial sectors.
Beyond India, L&T is participating in the International Thermonuclear Experimental Reactor (ITER) project in France, where it is manufacturing critical engineering components for the multinational nuclear fusion research programme.
The company said its long-term sustainability strategy remains focused on reducing emissions, improving water availability, strengthening recycling and circularity, increasing energy efficiency, lowering air pollution and conserving natural resources as it advances towards its carbon neutrality and water neutrality targets.
