Larsen & Toubro (L&T), the Indian multinational conglomerate, has secured a US$ 700 million Sustainability-Linked Trade Facility (SLTF) with Standard Chartered. The company had issued India’s first listed Sustainability-Linked Bond worth US$ 60 million under SEBI’s ESG Bond Framework in June this year.

The SLTF is linked to clearly defined Key Performance Indicators (KPIs) such as the intensity of greenhouse gas emissions and freshwater withdrawal—both of which are critical to the company’s operational footprint.

Aligned with the Loan Market Association's Sustainability-Linked Loan Principles, the facility ensures adherence to global market standards in sustainable financing. The KPIs and associated targets have been independently reviewed and validated through a second-party opinion provided by DNV, a leading global expert in risk management and quality assurance.

As part of the SLTF framework, L&T will disclose its performance against these KPIs on an annual basis, with the results assured by an independent third party. This approach reinforces the company’s commitment to transparency, accountability, and stakeholder trust.

Commenting on the announcement, an L&T spokesperson said: “By securing this SLTF, L&T reaffirms its leadership in advancing sustainable business practices. Our long-term goals of achieving carbon neutrality by 2040 and water neutrality by 2035 are more than just targets—they are strategic imperatives that drive innovation, operational efficiency, and resilience across our operations. Sustainability is embedded in our corporate ethos, guiding our investments in low-carbon technologies, resource optimization, and biodiversity conservation. Our strong environmental, social, and governance (ESG) performance has enhanced investor confidence, enabling access to sustainable financing and reinforcing our position as a responsible growth leader.”

Shobana Chawla, Head of Sustainable Finance Origination at Standard Chartered, India, added:“Through this financing instrument, Standard Chartered is proud to support L&T on its decarbonisation journey. We are committed to partnering with leading corporates like L&T to help deliver on key sustainability targets. Sustainability remains a core strategic focus for Standard Chartered, and we are dedicated to facilitating the transition towards a more sustainable economy in India.”