Larsen & Toubro Ltd (L&T) will be investing up to Rs 5,000 crore to implement and adopt green energy into its manufacturing and construction sites to achieve carbon and water neutrality targets by 2035-2040.
“We have now set out a path of implementing these ESG initiatives in some of our project sites and manufacturing locations….This could be anywhere between Rs 1,000 and Rs -5,000 crore of transitionary investments we might have to do as a group to achieve 2035-2040 goals that we have set for ourselves,” said the company’s chief financial officer, Shankar Raman.
Raman added the company is trying to scope the programme for respective locations and that these investments will have a natural payback.
“Less resources will be consumed for generating the same output. So we do believe it could be on a self-financing model,” Raman said.
The company is in the process of developing a sustainability roadmap for FY22 to FY26 aligned with its ‘Lakshya 2026’ targets. In terms of reduction of Co2 the company has set a target to increase the usage of renewable power by 50% by FY26 and 100% by 2035 in its operations.
“Renewable power across campuses and sites will be increased by 50% by 2026 and essentially solar will be the main source of achieving this,” said Subramanian Sarma, Whole-time Director, L&T.
The company is also planning to use some bio-fuels and is evaluating setting up a green hydrogen plant in Hazira by the end of this financial year. It aims to improve its energy efficiency by 2.5% per annum for scope 1 ( phase 1)and 2% per annum for scope 2 (phase 2)
L&T said that during the financial year 20-21, it handled 834 projects across the world, achieved 373,964 tonnes of factory output from its manufacturing businesses. The company’s green businesses portfolio stood at Rs. 27,700 crore.
The company is also adopting Electric Vehicles on their campuses and is looking to replace all its IC (Internal Combustion Engine) vehicles with EV vehicles.
“The predominantly focus on Scope 1, which is our vehicles where we see the opportunity…The first phase will be to minimize the use of IC vehicles and then slowly move into EV vehicles relatively,” said Sarma.
L&T’s climate change, energy efficiency and renewable energy programs are aligned with the National Action Plan on Climate Change (NAPCC), released by the Government of India. The Company’s programs are also being aligned to the Nationally Determined Contributions (NDCs) ratified by the Government of India during the COP 21 – Paris Agreement.