Larsen & Toubro Ltd.

Larsen & Toubro (L&T) has issued Rs 500 crore ESG bond deal, becoming the first Indian corporate to do so under the Securities and Exchange Board of India’s (SEBI) newly introduced ESG and sustainability-linked bond framework. HSBC is acting as the sole lead arranger in this transaction. 

The issuance is compliant with SEBI’s regulatory framework declared on June 05, 2025, which is designed to promote transparency, accountability, and alignment with international ESG standards. The framework outlines key requirements for issuers, including the disclosure of sustainability objectives, mandatory external assessments such as Second Party Opinions (SPOs), and post-issuance reporting. It also mandates clear Key Performance Indicators (KPIs) and targets to measure ESG outcomes, crucial steps in supporting India’s Net-Zero and climate-resilient growth agenda. 

As part of the ESG Bond deal, L&T is committed to environmental targets, including a decrease in intensity of fresh water withdrawal and emissions of greenhouse gases. These initiatives are in line with the company’s long-term sustainability goals of achieving water neutrality by 2035 and carbon neutrality by 2040.

Larsen & Toubro is an Indian multinational engaged in technology, engineering, construction, manufacturing and financial services.