The move comes just a day after SEBI unveiled its ESG regulatory framework on June 5, aimed at enhancing transparency, accountability, and alignment with global sustainability standards.
The new guidelines require issuers to disclose sustainability goals, obtain independent evaluations such as Second-Party Opinions (SPOs), and commit to post-issuance reporting. Issuers must also define measurable Key Performance Indicators (KPIs) and targets to track ESG outcomes, aligning financial activity with India’s climate goals and Net-Zero commitments.
As part of its ESG bond commitments, L&T has pledged to reduce its fresh water withdrawal intensity and greenhouse gas emissions. These targets support the engineering conglomerate’s broader sustainability roadmap, which includes achieving water neutrality by 2035 and carbon neutrality by 2040.
“We take pride in leading the transition to sustainable finance under SEBI’s new ESG framework,” said a senior spokesperson from L&T. “This bond issuance reinforces our steadfast commitment to sustainable development and responsible business practices while aligning our finances with environmental targets.”
HSBC India, acting as the sole lead arranger, expressed its support for India’s clean energy transition. “We are pleased to partner with L&T on the first INR Sustainability-Linked Bond under SEBI’s guidelines,” said HSBC India.
