CLIMATE
STRATEGY

L&T has committed to achieve Carbon Neutrality by 2040 and Water Neutrality by 2035. The Company’s carbon footprint (Scope 1+2) is primarily due to diesel and electricity consumption. Diesel has a high share in the overall energy consumption (>75%), while electricity comprises ~16%. Based on the current projections, GHG emissions are expected to peak around FY 2025-26 and decline thereafter.

• Energy Efficiency
• Decarbonising Energy Consumption

L&T's water footprint is driven by industrial consumption, primarily due to the use of water in civil work for EPC projects. We are working towards reducing water consumption intensity, by focusing on:

• Improving water use efficiency through reducing losses in processes and adopting new methods
• Increasing wastewater recycling and use of recycled water for non-potable purposes
• Increasing rainwater harvesting

L&T's CSR programmes also significantly create positive impact through water conservation and groundwater recharge. Lakshya 2026 Targets on Natural Capital

We have set interim targets for carbon, water neutrality and other areas, which are a part of the current Lakshya 2026 strategy plan.

These are:

• 25% Emissions Intensity Reduction
• 50% Renewable (% of Electricity Consumption)
• 11% Energy Intensity Reduction