INTEGRATED

REPORT

Sustainability Vision
NATURAL
FOR A BETTER CAPITAL
WORLD!
L&T shall pursue eco-friendly growth, promoting
a culture of sustainability and innovation, and
thereby contribute towards a better world.

Page no.
162

MANUFACTURED
CAPITAL

Page no. SOCIAL AND

176 RELATIONSHIP
CAPITAL

Page no.
212

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About the Report

At L&T, we have been taking concerted
efforts towards achieving resource efficiency
and decarbonising our businesses. We
have sharpened our focus on improving
performance across environmental, social
and governance (ESG) parameters. We are
revisiting our vision, policies, frameworks,
roadmaps and action plans to deliver
HUMAN solutions towards building a better future.
CAPITAL This Integrated Report (IR) includes the
financial and non-financial performance of
L&T Limited and is aligned to the principles
developed by the International Integrated
Reporting Council (IIRC). The Report expands
the target audience from the primary
provider of financial capital to include
employees, customers, suppliers, local
communities, regulators, and policy-makers.
Page no.
186

FINANCIAL
CAPITAL

INTELLECTUAL
CAPITAL
Page no.
228

Other Chapters: Page no.

Value Creation Process 142

Page no.
Value Creation Model 144
198 Stakeholder Engagement 146
Material Topics 150
Sustainability Governance 158
Sustainability Highlights FY 2023 160
Assurance Statement 232

141
 Value Creation
Process

VALUE CREATION PROCESS

STRATEGY

Value-accretive growth of
SO-I
current businesses

Scaling up digital and

SO-II
E-commerce businesses
Strategic Objectives

Developing business offerings to

SO-III
ride the Energy Transition wave

Completing the divestment

SO-IV of non-core businesses

Enabling business sustainability

VISION AND VALUES

SO-V through high focus on ESG and

Stakeholder Value Creation

SE-1 Operational Excellence

Industry leading capabilities in

SE-2
digital and advanced technologies
Strategic Enablers

SE-3 Financial Position

SE-4 Talent and Leadership

Capability enhancement through

SE-5
innovation, R&D and partners

MATERIAL TOPICS
STAKEHOLDER ENGAGEMENT
GOVERNANCE: POLICIES, PROCESSES, RISK MANAGEMENT

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VALUE

VALUE CREATION VALUE CREATED

Capitals Business Models Creating Value for

EPC Projects
Productive Assets
for Clients
Customers
Natural Capital

Dividend Payments
Manufactured Shareholders
Capital

Employee Wages and

Capability Development
Employees
Human Capital

Business for
Suppliers
Intellectual Suppliers
Capital
Hi-Tech
Manufacturing
Payment to Exchequer
Government
Social & The six Capitals are utilised
Relationship through business processes
Capital and models to generate
outputs in sectors of
infrastructure, energy, oil & Community Assets
gas, metals, process plants and and Livelihoods
others, and create value for Communities
the stakeholders.

Financial Capital

143
 Value
Creation Model

VALUE CREATION MODEL

Natural Manufactured Intellectual
Capital Capital Capital
Water consumption: 11 Mn kL Active Project Sites: 729 R&D spend (cumulative last 3 years):
Energy from Non-Renewable sources: Manufacturing plants: 18 ¢ 3,448 Mn
10.61 Mn GJ Patents filed: 8
Energy from Renewable R&D Engineers and Scientists: 380
Input

sources: 0.13 Mn GJ Active collaborations and

Spend on Environment1: ¢ 288.4 Mn partnerships6: 20

Material consumed (Mn tonnes):

- Cement: 4.61
- Sand: 6.95
- Ferrous: 3.06

Business Processes and Offerings:

Integrated Engineering Lean Operations Innovation Automation

Residences Commercial Mass Transit Airports Expressways Solar Hydro

Spaces and Railways Power Plants Power Plants

Wastewater recycled8: 68% Building Infra created: 21 Mn sq. ft. Patents granted: 2
GHG emissions: 0.97 Mn tCO2e Green Building Infra created: 8 Mn sq. ft. Value Engineering projects4: 272
GHG emission Mobility Infra created : 2,971
2
Revenue in FY 2023 from new and
intensity: 889 tCO2e/ ¢ Bn Bridges & Tunnels: 45 km emerging businesses5: ¢ 81,776 Mn
Eco-friendly and recycled material Power Infra created:
used (tonnes):
- Transmission Lines: 2,545 ckm
Output

- Steel: 2,339
- Solar Power Capacity: 484 MWp
- Zinc: 85
Water & Sanitation Infra created:
- Crushed Sand: 3.1 Mn
- Irrigation capacity: 1 lakh ha
- Treatment capacity: 974 MLD
Factory Output3: 324,579 tonnes
Green Business (Revenue): ¢ 413 Bn

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Human Social & Financial

Capital Relationship Capital Capital
Employees: 55,202 CSR spend: ¢ 1.4 Bn Order Book: ¢ 3,305.5 Bn
Engineers: 41,000 CSR partners: 64 Net Current Assets: ¢ 324.9 Bn
Workmen: 277,857 MSME suppliers: 10,736 Net Fixed Assets: ¢ 117.1 Bn
Employees covered under Leadership Memberships of Industry Chambers: 75
Development Programmes: 1,672

Digitalisation Value Engineering Global Sourcing Speed & Scale

Nuclear Water Transmission Oil & Gas Refining and Ferrous and
Power Plants Treatment Plants Lines Facilities Petchem Plants Non-ferrous Plants

Revenue per employee: ¢ 20 Mn CSR beneficiaries: 1.51 Mn Turnover: ¢ 1,105 Bn

Attrition Rate: 13.9% Contribution to Exchequer: ¢ 59.5 Bn PBIT: ¢ 119.6 Bn
Average training hours per employee: 20 Complaints received : 8037
Dividend payout: ¢ 33.7 Bn
Accident-free man hours: 1,040 Mn Complaints resolved: 528 Return on Net Worth: 11.3%

1
S pend on environmental management: pollution control, environmental 4
Initiatives for improving processes, products and services to reduce cost,
monitoring, waste management, wastewater treatment cost, etc. improve project delivery and increase customer satisfaction.
2
Mobility Infra created includes Roads (171 lane km), 5
Businesses started in the preceding three financial years.
Railways (2,672 track km) and Mass Transit (129 track km). 6
Covers education institutes, universities, start-ups, etc.
3
Total production in FY 2023 for businesses: Buildings and Factories, 7
Across all stakeholders, for breakup refer to Section A in Business
Power Transmission and Distribution, Minerals and Metals, Responsibility and Sustainability Reporting (BRSR).
Heavy Engineering, Defence, L&T Energy-Hydrocarbon. 8
Wastewater recycled / Wastewater generated

145
 Stakeholder
Engagement

STAKEHOLDER ENGAGEMENT
L&T’s businesses are primarily EPC projects (Engineering, Procurement,
Construction) and Hi-Tech Manufacturing. The Company aims to balance
the needs, interests and expectations of various stakeholders with those of
the business and deliver long-term value. Aligned with the activities of the
businesses, the Company has identified the following key stakeholders:

Government
Governments (sovereign, sub-national, local) and related entities (public
sector enterprises) are the largest clients of the Company, comprising
~80% of the total Order Book. Additionally, they are also the key
determinants of policies (sectoral as well as cross-cutting), long and
short-term plans for various sectors, and the country at large.

Employees and Workforce

Human Capital is key to project
management and execution for the
Company. Through this lever, value
creation is targeted in all spheres
of organisational processes. In the
Company’s projects, manufacturing
Customers facilities and other locations, more
than 55,000 employees and around
Other key customers are private 277,000 workers are contributing
sector clients, which comprise ~20% to this process. The management,
of the total Order Book. While development and well-being of the
the Company actively seeks new employees and workforce enable
clients, it also enjoys a long-term the Company to continue on its
relationship with many clients. value-creation journey.
These lead to repeat business
and also create the conditions
encouraging development of new
solutions and technologies.

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Suppliers and Contractors

The Company’s businesses have a high dependence on
supply chain partners for sourcing key input materials
(commodities, fabricated items, sub-components, and other
raw materials) and delivery of projects (through outsourced
contracts, particularly for low value-add activities). These
supply chain partners are assessed on a regular basis to
enable performance-based tiering, and also aid in vendor
development.

Shareholders and Investors

Shareholders and investors enable the Company’s growth by providing the requisite
financial resources as well as guiding the Company through their approval/disapproval
of the Company’s plans (through voting, voicing concerns, feedback, etc.). The Company
actively engages with them to communicate its plans, design the way forward, as well as
address their concerns.

Media
Media is one of the important channels of communication
for the Company’s performance, plans and policies. It helps
in engaging with a larger stakeholders’ group and provides
a critical link in the feedback loop on concerns or issues
Communities related to the Company.
L&T strives to promote socio-
economic development in
the communities around
its operations and project
sites, as well as in various
underdeveloped locations
throughout the country. The
Company prioritises supporting
the underprivileged and
marginalised sections of society
to empower them and bridge
the gap with others.
Regulatory Bodies
Various businesses fall under the purview of specific
regulatory bodies, not only sectoral but also in some
common areas, e.g., environment, labour, etc. It is
pertinent to understand the priorities and concerns
of these agencies to enable the Company to ensure
compliance with mandated levels.

147
 Stakeholder
Engagement

Legend

Channels of Engagement Engagement

communication frequency purpose and scope

Fostering and nurturing GOVERNMENT CUSTOMERS

relationships with the à Press Releases
stakeholders is essential à Business interactions
à Quarterly Results
à Client satisfaction
for the success of the à Integrated Annual Reports surveys
Company and long- à Stock Exchange filings
term value creation. à Issue-specific meetings à Satisfaction surveys
Backed by strong à Representations carried out biannually
engagement platforms,
we are working on à As and when required à Transparent and timely
several initiatives with communication to
provide updates on
our partners across the à Address concerns related to project
execution the status of contracts/
value chain for inclusive supplies
development. à Compliance with regulations and
reporting requirements à Address issues related
to the delivery of
à Seek support to enable on-time
agreed contracts
completion and delivery according to
agreed parameters à Partnerships for
innovation
à Provide inputs for policies and plans

EMPLOYEES
à Employee satisfaction and engagement surveys
à Circulars and messages from corporate and line
management
à Welfare initiatives for employees and their families
à Online news bulletins to convey topical
developments, print and online in-house
magazines and newsletters
à L&T Helpdesk, toll-free number
à Interactions through various engagements
platforms and events: Hi5, L&T Radio, Art Beats
and so on

à As and when required

à Support the growth, development and

well-being of employees
à Feedback on Company’s policies and actions,
and address concerns linked to them
à Develop better corporate citizens

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SUPPLIERS AND CONTRACTORS SHAREHOLDERS AND INVESTORS

à Regular supplier and dealer meets à Press Releases
à Info desk

à As and when required for large suppliers, à Dedicated email ID for Investor Grievances
fortnightly for MSMEs à Quarterly Results
à Integrated Annual Reports
à Payment-related queries, deliveries, technical à AGM (Shareholders' interaction)
discussion, EIP-related queries
à Quarterly investor presentations
à MSME: Exchange of information on vendor
à Investor meets
deliverables and payment issues
à Stock Exchange filings and Corporate website

à As and when required

à Showcase sustained value creation through

Company’s performance
COMMUNITY à Seek feedback on Company’s plans
à Direct engagement and / or through NGO partners and strategy
for implementing CSR projects in urban as well as à Address concerns (if any) with respect
rural areas to Company’s policies and actions

à Annually – as per the agreed scope and duration

of the project MEDIA

à Supporting the provision of Infrastructure,

à Press Releases

Health and Education services and Skill-building à Quarterly Results

opportunities based on needs assessment for à Integrated Annual Reports
improving the quality of life among vulnerable, à AGM (shareholders' interaction)
marginalised and underprivileged groups
à Media interactions

à Quarterly and event-based

à Wider dissemination of the Company’s plans,

achievements and value creation
à Create awareness of the Company’s businesses,
offerings and initiatives
à Enhance brand value

Legend

Channels of Engagement Engagement

communication frequency purpose and scope

149
 Material
Topics

MATERIAL TOPICS
Materiality is one of the inputs to the Company’s sustainability strategy, which enables
prioritising of its key focus areas. The Company considers the concerns of the stakeholders
and importance to the businesses while finalising the material topics.

Identification Finalisation of
of potential material topics
material topics Assessment and matrix
Process

Stakeholder Stakeholder
Categorisation of
identification and engagement
potential topics
prioritisation and feedback

Coverage of the Assessment

External Internal Global Industry

Stakeholders’ Views Stakeholders’ Views Frameworks Trends

Engagement through Engagement through Global Reporting Initiative Peer benchmarking

online surveys covering online surveys to (GRI), Integrated Reporting including Indian
stakeholders such as understand the Framework, Sustainability and International
customers, suppliers Company’s priorities Accounting Standards Board companies
and vendors, NGO and concerns from (SASB) Material topics,
partners and feedback senior management UN Sustainable Development
received through and employees Goals (SDGs), BRSR
periodic interactions with
investors, shareholders
and analysts

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Materiality Matrix
32 potential material topics are directly or indirectly related to the business. Stakeholders' feedback was obtained
through surveys and finally, the top 15 material topics, which are most important for short, medium and long-term
value creation from internal and external stakeholders’ perspectives, were identified.
High

4 3
7
2

5
8
Stakeholder Concern

9
Medium

12 11

13
6
15 10

14
Low

Low Medium High

Importance to L&T

Material Topics
1. Customer Experience and Satisfaction 8. Talent Management – Attraction, Retention and Development

2. Corporate Governance 9. Climate Action

3. Business Ethics 10. Diversity, Inclusion and Equal Opportunity

4. Employee and Workforce Engagement, 11. Data Security, Privacy and Cyber Security
Well-being, Health and Safety 12. Quality of Products and Project Delivery
5. Human Rights and Labour Conditions 13. Brand Management
6. Skilled Manpower 14. Water, Waste and Hazardous Materials Management
7. Sustainable Supply Chain 15. Social Engagement and Impact

151
 Material
Topics

Overview of the Material Topics

Material topics are those which pose risk (if not addressed) or create opportunity for the Company and have
financial implications. An overview of the material topics, approach to mitigate in case of risk and indication
of financial implications is as follows:
Legend
Financial Intellectual Financial Risk or
Material topic identified Capital Capital implications: opportunity

Description of the Manufactured Positive

Natural Risk
material topic Capital Capital
Negative
In case of risk, the approach to Social &
Human Opportunity
adapt or mitigate Relationship Both
Capital
Capital

1. Customer Experience and Satisfaction 2. Corporate Governance

The Company's presence is primarily in Implementing policies and practices to ensure that
EPC and projects and customers include stakeholders’ expectations are met and balanced. Reflects
Central and State governments (as well L&T's core values, i.e., independence, transparency,
as foreign governments) and public and accountability, responsibility, compliance, ethics and trust.
private sector organisations. Key focus
Policies, Code of Conduct, and various management
areas are on-time project completion
systems are in place to ensure transparency, responsibility,
with deeper ‘customer connect’ at
compliance, ethics and trust across business processes and
multiple levels, regular visibility of
accountability to stakeholders. Details available at https://
projects, progress, use of industry-
investors.larsentoubro.com/corporate-governance.aspx
leading engineering techniques, high
safety standards and agile response to
Please refer to Annexure ‘B’ – Report on Corporate
emerging issues to ensure a project is
Governance for further details.
on track.

SO-I SO-III SO-IV SO-V SO-I SO-II SO-III SO-IV SO-V

3. Business Ethics
Implementation of policies and procedures regarding topics that include, SO-I SO-II SO-III SO-IV SO-V
but may not be limited to, insider trading, fraud, bribery, discrimination,
professional conduct, etc.
Clear rules, policies, Code of Conduct and procedures are enforced to deal with
issues, which include, but may not be limited to insider trading, corruption,
bribery, discrimination, fraud, professional conduct, etc. Policies available at
https://www.larsentoubro.com/corporate/about-lt-group/corporate-policies/

Please refer to Annexure ‘B’ – Report on Corporate Governance for further details.

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4. Employee and Workforce Engagement, 5. Human Rights and Labour Conditions

Well-being, Health and Safety Protecting, respecting, upholding and promoting
With over 55,000 employees and around the basic rights and freedom of all who work in the
277,000 workforce, it is important to Company and across the value chain, including ~277,000
continuously engage the workforce in an workforce. Labour conditions cover areas such as
effective manner. Engagement includes regular working conditions, wages, benefits, discrimination,
communication, training and development, working hours, overtime pay, compensation, leaves
skilling, management-employee dialogues, and and respecting collective bargaining agreements
technologies that enable the same. (subcontractors and workers). The Company also ensures
à Implementation and adherence to OHSAS that it is not complicit in any kind of violations.
18001, ISO 45001: 2018 and other health and à Policies, systems, Code of Conduct, and grievance
safety practices mechanisms in place to ensure compliance

à Putting in place robust health and safety à Mandatory signing of Code of Conduct as a part of
management systems to keep the workplace vendor onboarding process laying down minimum
free of fatalities, injuries and occupational requirements for ESG compliance
health hazards à Evaluation of key suppliers on Human Rights
parameters
à Automation and digital interventions
wherever possible [ViewEHS, Workforce à Awareness sessions on issues pertaining to Human
Induction and Skills Application (WISA), Rights across the Company
SHEILD (Safety Health Environment for
Industrial Landscape through Digital)], etc.
Please refer to the 'Human Capital' and
'Intellectual Capital' sections for further details. SO-V

SO-V

Legend
Financial Intellectual Financial Risk or
Material topic identified Capital Capital implications: opportunity

Description of the Manufactured Positive

Natural Risk
material topic Capital Capital
Negative
In case of risk, the approach to Social &
Human Opportunity
adapt or mitigate Relationship Both
Capital
Capital

153
 Material
Topics

Legend
Financial Intellectual Financial Risk or
Material topic identified Capital Capital implications: opportunity

Description of the Manufactured Positive

Natural Risk
material topic Capital Capital
Negative
In case of risk, the approach to Social &
Human Opportunity
adapt or mitigate Relationship Both
Capital
Capital

6. Skilled Manpower
Covers trained, educated and experienced segments of the workforce SO-V

undertaking more complex mental and physical tasks. Skilling manpower

on a continuous basis is important to carry out large contracts related to
construction, infrastructure as well as hi-tech manufacturing for Defence
Engineering and Heavy Engineering businesses. Primary skill sets include
bar bending, formwork, electrical work, tiling, masonry, welding, carpentry,
solar electrical work, among others.

à Skill development training undertaken by Construction Skills Training

Institutes (CSTIs) collaborating with various institutions, etc.
à Onsite training to upskill workers, skilled manpower enabling skilling of
other workers based on the project requirement
à Digital interventions such as WISA (end-to-end digital solution for all
workmen-related functions) to improve skill management
à Continuous engagement with the contracting agencies to ensure the
right skilled manpower is being hired

7. Sustainable Supply Chain

With a supplier base of more than 100,000
SO-I SO-V
and over 10,000 MSME suppliers, fostering
responsible behaviour in the supply chain in
accordance with the highest standards of ethics
and integrity, respect for the law, human and
labour rights, and environmental protection.

à Mandatory signing of Code of Conduct as a part

of vendor onboarding process, laying down
minimum requirements for ESG compliance
à Survey of key suppliers on ESG parameters
à Conducting awareness programmes for vendors
and suppliers

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9. Climate Action
Key aspects include reduction of GHG emissions,
efficiency in energy use, renewables, judicious
use of water, recycling of water/waste and use of
eco-friendly materials, and green business.
Please refer to the 'Risk Management' and
8. Talent Management - Attraction,
'Natural Capital' sections for further details.
Retention and Development
Attracting, retaining and developing talent
through policies and practices related to
SO-III SO-V
improving performance, staying competitive,
driving innovation, forming productive
teams, reducing attrition and creating a
strong employer brand. Key aspects include
productivity, engineering skills, project
execution capability, technology orientation,
and leadership pipeline.

à L&D strategy and programmes for various

levels, viz. Seven Step Leadership Development
Programme, Pragati – Project Leadership
Development Programme (PLDP), along with 10. Diversity, Inclusion and Equal Opportunity
dedicated training institutes and academies Providing equal employment opportunities based on
à Engagement platforms such as L&T Radio, merit without any discrimination and ensuring that
Leadership Talks, HEERA, L&T Campus Engage, hiring, learning and development, and promotion
etc., to encourage open communication practices foster the building of a diverse and inclusive
Please refer to the 'Human Capital' section for workforce.
further details.

SO-V
SO-I SO-III SO-IV SO-V

Legend
Financial Intellectual Financial Risk or
Material topic identified Capital Capital implications: opportunity

Description of the Manufactured Positive

Natural Risk
material topic Capital Capital
Negative
In case of risk, the approach to Social &
Human Opportunity
adapt or mitigate Relationship Both
Capital
Capital

155
 Material
Topics

Legend
Financial Intellectual Financial Risk or
Material topic identified Capital Capital implications: opportunity

Description of the Manufactured Positive

Natural Risk
material topic Capital Capital
Negative
In case of risk, the approach to Social &
Human Opportunity
adapt or mitigate Relationship Both
Capital
Capital

11. Data Security, Privacy and Cyber Security

Protecting the Company and others' data from malicious attacks and improper use. Includes SO-IV
mechanisms for data security, privacy and cyber security – covering people, processes and technology.

à Development of a multi-year cyber security and resiliency roadmap and made investments in
state-of-the-art security platforms
à Tighter measures put in place to ensure adherence to ISO 27000 security standards and set policies
and practices
à Implementation of a group-wide Cyber Risk Assurance Framework
à Operationalisation of one of the most advanced Security Operations Centres to monitor
developments 24X7 and respond effectively when required to any cyber incidents
à Use of the latest technology stacks based on AI/ML to detect and mitigate attacks
à Awareness sessions on issues such as cyber security, phishing, e-commerce related attacks, etc.
à Business-critical applications and Disaster Recovery (DR) strategy, i.e., processes and technology to
recover the system in case of any eventuality/disaster. The critical system’s DR is tested in a routine
manner and certified by businesses. Records are maintained.

Please refer to 'Risk Management' in the Management Discussion and Analysis section for
further details.

12. Quality of Products and Project Delivery

SO-I SO-III SO-V
High quality and timely delivery of the projects
are critical for success and growth. EPC projects
(buildings, infrastructure, energy, etc.) constitute
more than 90% of revenue and high-tech
manufacturing products (process plants, reactors,
converters, etc.) comprise the balance.
à Quality Management systems are in place with
required checks and balances, starting from the
design phase and across the entire EPC life-cycle
à Regular quality check audits are conducted to
ensure compliance with standards and client
specifications
à Continuous engagement and feedback received
from clients

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13. Brand Management 14.Water, Waste and Hazardous Materials

Developing, maintaining and enhancing the
Management
reputation and perception of the brand to build Increasing water-use efficiency, water conservation
brand equity and loyalty, ultimately driving through recycling, reuse and efficiency improvement.
business success Hazardous material management covers aspects of
use, storage, handling and disposal of hazardous
material, e.g., oil, lubricant, oil/paint containers, etc.
SO-I SO-II SO-III SO-IV SO-V
à Processes, technologies and systems deployed
to reduce the amount of water used, treat
wastewater generated, etc.
à Clear SOPs in place to use, handle, store and
dispose the hazardous material and waste, and
compliance with regulatory norms

15. Social Engagement and Impact SO-I SO-V

Creating a positive impact in the areas where the

Company operates. Focus areas include Water and
Sanitation, Health, Education and Skill Development.

Please refer to 'Risk Management' in the Management

Discussion and Analysis section for further details.

SO-V

Legend
Financial Intellectual Financial Risk or
Material topic identified Capital Capital implications: opportunity

Description of the Manufactured Positive

Natural Risk
material topic Capital Capital
Negative
In case of risk, the approach to Social &
Human Opportunity
adapt or mitigate Relationship Both
Capital
Capital

157
 Sustainability
Governance

SUSTAINABILITY
GOVERNANCE

The Sustainability Vision of the Company is to pursue eco-friendly growth,

promoting a culture of sustainability and innovation, and thereby
contributing towards a better world. It is ingrained in the strategy,
policies, systems and business operations of the Company.

Strategy Policy
As part of the Lakshya 2026 plan, the Company The approach is articulated in the Sustainability
re-evaluated shareholder value creation, defined Policy, which is supported by other policies such as
social obligations and framed sustainability goals. The Corporate Social Responsibility, EHS, Green Supply
outcome of this assessment was the re-articulation of Chain, Human Resource policies, Code of Conduct,
its Strategic Objectives (SOs), which drive value creation etc. These policies strengthen integrated thinking and
over a long-term horizon. The sustainability agenda balance the input and output of the six capitals, viz.,
is driven by the CSR Board Committee. The scope and Natural, Manufactured, Intellectual, Human, Social and
membership of the Committee have been detailed in Relationship and Financial. 28 policies of the Company
Annexure ‘B’ to the Board Report of this Report. have also been mapped against the nine principles of
National Guidelines on Responsible Business Conduct1
covering governance, ethics, human rights, workforce
well-being, health and safety, environmental
responsibility, public policy advocacy, inclusive growth
and equitable development, and value creation for
customers. Most of these policies are reviewed and
updated periodically to address the evolving and
emerging trends, standards and stakeholder concerns.

1
National Guidelines on Responsible Business Conduct (NGRBC) released by the Ministry of Corporate Affairs (MCA), Government
of India, based on nine principles of Responsible Business Conduct. Business Responsibility and Sustainability Report (BRSR) is a
disclosure framework mandated by Securities and Exchange Board of India (SEBI) on these nine principles.

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Implementation
Over the years, the necessary tools, The working of the policies is The responsibility for
systems and processes have been put evaluated by third-party agencies implementation lies with the
in place to improve performance, including DNV India, TUV-Nord and Business Unit Heads and the
achieve goals and disclose the LRQA on various standards such as Heads of various Corporate
progress on sustainability. The ISO 9001: 2015, ISO 14001:2018 and functions, supported by
Company also conducts materiality ISO 45001:2018. During the process, Corporate Sustainability. Various
assessment as a process to capture these agencies also check policy councils, committees and task
stakeholder concerns on ESG and elements, procedures, action plans, forces designated with specific
its importance to the Company. review processes, etc. In addition responsibilities have also been
Materiality is one of the inputs to the above, relevant third-party constituted for operationalising
to the Company’s Sustainability certifications and assessments are sustainability across the Company.
Strategy, which enables prioritising also conducted across business units
the key focus areas. periodically.

Sustainability Governance Structure

Corporate Secretarial, Human Resources, CSR, Supply Chain Management

EHS Council, Material Council, Green Campus Task Force, and so on

CSR Board Committee

Corporate Sustainability
Executive Committee

Business Level Responsibility

Councils and Task Forces

Corporate Centre / EHS / Business Heads
Key Functions

Unit/Project Level Responsibility

Sustainability Coordinators across businesses

Policies and Processes

159
 Sustainability
Highlights

SUSTAINABILITY The Company conducts materiality assessment (refer to

Materiality Assessment section) to identify and prioritise the
key material topics pertaining to ESG, based on the relative
HIGHLIGHTS OF importance of these topics to the stakeholders and in the
context of L&T’s business imperatives. The assessment identified

FY 2022-23 15 important material topics, and detailed performance is

stated the respective chapters on the six capitals.

To report sustainability highlights at an overall level, at least

one KPI has been selected for each material topic based on
the importance attached by investors, rating agencies and
regulators and these are given below.

Environment

Energy Emissions

9,882 GJ/ ¢ Bn 889 tCO e/ ¢ Bn 2

Energy GHG
consumption intensity emission intensity

9.6% 141,300 tCO e 2

Sourcing Carbon sequestration potential
from renewables from tree plantation

Material Management
Water

10,155 kL/ ¢ Bn 24%

Recycled and eco-friendly
Water consumption material used
intensity

68%
Wastewater recycling
Green Business
efficiency
37%
Revenue from Green Business

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Social

Health and Safety Workforce Skilling and Diversity and Inclusion

Talent Management
6.9 Mn 0.06 7.1% 89
Safety training
man hours
LTIFR1 28,000+
employees
Diversity Women in senior
management

45,000+
workers trained
Human Rights Social Impact
on skill upgradation

100%
Own locations assessed on
1.5 Mn
CSR beneficiaries
10,736
MSME suppliers

13.9%
and complied with Human
Rights requirements
Attrition rate

Governance

Governance & Ethics Customer Centricity Data Privacy & Cyber Security

100% 9.2 Zero cases of

data breaches
New joinees Customer satisfaction
trained on CoC score out of 10

New Policies: Sustainable Supply Chain Brand Management Certified as

Anti Bribery and Great Place
Anti Corruption,
Equal Opportunity,
40%
Sustainable
7%
of input material
3rd To Work®

Public Policy Advocacy among ‘World’s Top

sourcing from sourced from 200 Environmental
suppliers by neigbouring districts Firms’ ranked by
value ENR for 2022

1
Lost Time Injury Frequency Rate

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NATURAL
CAPITAL

The world is facing

unprecedented challenges
− climate change, resource
scarcity, energy security,
among others, and countries
as well as corporates are
gearing up for the same. L&T
has been consistently working
towards the conservation of
natural resources, building
efficient infrastructure,
reducing emissions, and
urging stakeholders towards
behavioural change through
consultation and partnership.
Nagaur-Bikaner Water Supply Scheme

50 MWp Solar Tracker Plant, Theni, Tamil Nadu

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Key Highlights Strategy linkage

of FY 2022-23

SO-I SO-III SO-V SE-1 SE-2 SE-3

24% For details, refer to 'Business Model and Strategy' section

Recycled and eco-friendly
material used of total material

SDGs impacted
1.9 Mn
Saplings planted

8.9%
Water consumption
intensity reduction

Material Topics
à Climate Action
à Water, Waste and Hazardous Material
Management
à Sustainable Supply Chain
à Corporate Governance
à Brand Management

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The Company’s strategy is to adopt a low-carbon pathway for business growth and translate sustainability
initiatives to create a positive impact - on the environment and on society. Its sustainability strategy
and initiatives are enabled through a sustainability policy, systems and processes. The Green Campus
Committee, led by an Executive Director, looks at granular aspects of decarbonisation plans, including
setting targets and developing strategies for implementation. The overall performance is monitored and
reviewed by the Company’s Board CSR Committee on a quarterly basis, and the same is reviewed by the
Board as required. For further information, please refer to 'Sustainability Governance' section.

Net Zero Strategy

In line with L&T’s sustainability vision for a better world, the Company aims to achieve Carbon
Neutrality by 2040 and Water Neutrality by 2035.

Given L&T’s dominant presence in EPC and high-tech manufacturing, the Company plans to pursue
an aggressive growth trajectory of more than 60% increase in revenues over FY 2021-22 - FY 2025-26.
This will lead to an increase in GHG emissions, though at a slower pace, and peak at 1.1 million tCO2e
in FY 2025-26, followed by an expected decline in emissions. Hence, the focus is on reducing emission
intensity across both Scope 1 and 2, in the next three years.

Currently, Scope 1 emissions are primarily due to high share of diesel in the total energy mix (>70%).
Scope 2 emissions arise from electricity sourced through the grid comprising around 30% energy used.
Accordingly, the initiatives address the objective of 1) Reducing HSD consumption and
2) Increasing renewable energy consumption.

Reduce HSD consumption Increase renewable power in electricity consumption

à Efficiency improvement: 2-2.5% per year à On-site solar (capex and opex)
à Switching from DG set to grid connection à Off-site renewables (PPA, open access)
à Replacement of HSD-powered equipment à Use of solar-powered equipment e.g., light mast
with electric-powered streetlights, high power lamps, traffic blinkers, etc.
à Use of biofuels

As a result of the above abatement strategy, the Company is expected to reduce GHG emissions by 27.5%
with respect to a 'business as usual' (BAU) scenario by FY 2025-26. Furthermore, the Company targets to
plant more than 1.9 million trees per year (currently 1.5 million trees per year), which will further offset
the remaining emissions by 25% by FY 2025-26.

To achieve water neutrality, L&T has identified initiatives focused on improving water use efficiency,
reducing water consumption, wastewater recycling (through sewage treatment plants and other basic
treatment, e.g., sedimentation tanks) and rainwater harvesting. These are expected to reduce water
consumption intensity by 30% by FY 2025-26 with respect to FY 2020-21.

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Lakshya 2026 Targets on Natural Capital

The Company has set interim targets for carbon neutrality, water
neutrality and other areas based on its Net Zero strategy. These
targets are part of the current Lakshya 2026 strategy plan and are:

Emissions intensity reduction: 25%

Renewable (% of electricity consumption): 50%

Energy intensity reduction: 11%

Wastewater recycling efficiency: 75%

Emission and energy intensity reduction target w.r.t FY 2020-21

For intensity calculation, the denominator considered is ¢ billion
revenue of the Company.

While overall emissions will increase due to an increase in business

activity, the intensity is expected to reduce by 25% by FY 2025-26,
primarily due to various energy efficiency enhancement measures
and greater use of renewables.

Key Highlights of FY 2022-23

Renewable Energy Green Business Materials Management

0.13 Mn GJ
Renewable energy used
37%
of Total Revenue
24%
Non-Virgin/Recycled and
(34.7% in FY 2021-221) eco-friendly materials used

9.6%
of total electricity mix

29,116
Emissions avoided
tCO2e
Expenditure on
Environmental Measures

Water Management ¢ 288.4 Mn

68%
Wastewater
8.9%
Water consumption
recycling efficiency intensity reduction Please note that the environment data excludes
transit houses, guest houses, holiday homes
1
The Green Business of the Company has been reassessed based on FTSE Green Revenues Index and company owned residential facilities as
Series and value for FY 2021-22 revised from 38.2% to 34.7% part of the scope.

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Energy
In FY 2022-23, the Company's total energy consumption was 10.7 Mn GJ, comprising direct energy consumption of
9.4 Mn GJ and indirect energy consumption of 1.3 Mn GJ. Direct energy intensity increased by 2.6% with respect
to FY 2021-22, while indirect energy intensity decreased by 6.14% with respect to FY 2021-22.

Renewable Energy
The Company has utilised 35.9 Mn kWh, of renewable Energy (electricity) from renewable energy sources
energy, which comprises 9.6% of its total electricity was 0.13 Mn GJ in FY 2022-23, which is the same as
consumption (374 Mn kWh) in FY 2022-23. The details of FY 2021-22. The total electricity consumption has
the total renewable energy sourced is shown below: increased from 1.31 Mn GJ in FY 2021-22 to
1.35 Mn GJ in FY 2022-23. Compared to FY 2021-22,
Source Quantity sourced (Mn kWh) renewable as a percentage of electricity has
decreased slightly due to reduction in generation
Renewable (Direct) 1.46 capacity at a production unit because of unit closure
Solar 1.46 and lower sourcing from other Power Purchase
Agreements (PPA). Unavailability of adequate
Renewable (Indirect) 34.46 land or surface area at site locations, developers’
preference for long term (10-15 years) PPAs, and
Solar 12.06 variances in charges and regulations across the
Wind 22.40 states in India are the key challenges faced in
increasing the sourcing of renewable energy.

Energy Use Interventions

The Company is implementing various initiatives across its project sites and manufacturing facilities. Some initiatives
and the benefits derived from them are:

Reduction in diesel Switching from diesel generators to grid electricity for power
consumption through
operational improvements Typically, construction projects use diesel generators as a power source.
The Company has taken initiatives across various project sites to get grid
power connectivity and help reduce diesel consumption.
Plant and Machinery (P&M)
used in construction projects Outcome
primarily use diesel as a power
source. The Company has Estimated to avoid 2,396 tCO2e emissions
undertaken various operational
improvement initiatives e.g.,
increasing the utilisation of Increase in renewable energy components as part of
P&M, reducing the idling time, electricity consumption
reducing fuel wastage, fuel
budgeting for equipment,
replacing older equipment with The Company has taken various initiatives over a period of years to increase
new ones, etc. the renewable energy component in the electricity consumption mix. These
have been done through the installation of rooftop solar and third-party
PPAs. In FY 2022-23 the Company has installed additional rooftop solar
Outcome capacity at its manufacturing facility in Hazira.
Estimated to help reduce
7,547 tCO2e in emissions on Outcome
account of optimisation in The initiative was implemented towards the end of Q2 FY 2022-23 and is
diesel consumption expected to avoid 492 tCO2e in emissions annually.

For other initiatives, please refer to Annexure 'A' to the Board Report.

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Direct Energy Intensity2 Indirect Energy Intensity2

(GJ/¢ Bn) (GJ/¢ Bn)
8,643
8,409 8,420 1,320
1,239
1,144

FY 2021 FY 2022 FY 2023 FY 2021 FY 2022 FY 2023

Despite the efforts to reduce energy intensity through various operational measures, energy intensity increased
slightly by 1.5% in FY 2022-23 compared to FY 2021-22 owing to significant pick-up in execution and on-site
construction activities in several projects across the businesses. The major projects which accounted for this increase
were the Mumbai-Ahmedabad High Speed Rail, Mumbai Trans Harbour Link, Metro Rail projects, building projects
in New Delhi, water supply projects in Odisha and Uttar Pradesh, irrigation projects in Madhya Pradesh, and some
international projects.

GHG Emissions

The emissions attributed to the

Scope-1: Scope-2: Scope 33:
Company’s operations arise Consumption of fuels Utilisation of Purchased goods, waste
primarily from the use of fuels, such as petrol, high grid electricity generated in operations (solid
electricity and materials in its speed diesel, furnace supplied by waste), inbound logistics,
business processes. As part of its oil, natural gas, LPG, state electricity employee commute and
Net Zero strategy, the Company CNG and acetylene supply boards business travel
is working on reducing its GHG
footprint across all three scopes. 693,115 tCO2e 273,719 tCO2e 7,128,687 tCO2e

GHG Emission Intensity

(tCO2e /¢ Bn) Energy intensity has increased by 1.5% in FY 2022-23 compared to
FY 2021-22 due to significant pick-up in execution and on-site construction
892 889
867 activities in various projects. However, emission intensity has remained the
same, primarily on account of change in the emission factor considered
for grid electricity (0.00081 tCO2e/kWh)4, due to increase in percentage of
renewable energy in the country’s power generation mix.

2
Revised for FY 2020-21 and FY 2021-22 due to reassessment and data corrections.
3
Partial data reported for waste, employee commute and business travel.
Revised emission factor by Central Electricity Authority, Govt of India,
4

https://cea.nic.in/cdm-co2-baseline-database/?lang=en

FY 2021 FY 2022 FY 2023

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Stack Emissions
The principal sources of air emission are SOx, NOx and PM emissions
chimney stacks at manufacturing facilities. (mg/m3)
The Company ensures that these emissions
stay within the permissible limits and has been SOx NOx PM
taking initiatives to reduce the same. The FY 2022 2 - 38 6 - 40 4 - 80
table shows stack emissions across different
manufacturing facilities of the Company. FY 2023 3 - 22 12 - 44 10 - 61

Construction of road pavement with Cold Central Plant Recycling

technology
In highway projects, certain projects require rehabilitation of existing
roads. The typical recycling process is hot recycling of the asphalt layer,
but it requires a significant amount of energy. The improved version of
recycling is Cold Central Plant Recycling (CCPR), which not only reduces the
amount of virgin material consumed but also significantly lowers energy
consumption. In CCPR, material removed from an existing pavement is
transported to a central location, where it is crushed and screened to
make a uniform product. It is then mixed with asphalt emulsion or foamed
asphalt, which acts as a binding agent, and this final mix is used for
CCPR implementation at constructing the pavement.
Meerut-Aligarh-Ghaziabad
road project Impact
- Helped avoid usage of two million tonnes of virgin material (aggregates)

-H
 elped avoid 10,924 tCO2e from energy consumption and 1,520 tCO2e
emissions from materials used

Material reprocessing at
Mumbai Coastal Road project
Reuse of excavated material (rock) for land reclamation
In the Mumbai Coastal Road project, a significant quantity of rock was
being excavated in cut and cover works related to the tunnel section.
According to the original plan, the excavated material was supposed
to be disposed at a designated location approximately 60 km away
from the project site. The project team came up with a solution of
reprocessing the material, i.e. crushing to desired size, and convinced
the client to adopt the solution. The reprocessed material, which met
the quality requirements, was used for land reclamation in other
sections of the project.

Impact
- Helped avoid transportation of material from a quarry by reusing
material within the vicinity of project site

- 120,000 m3 of total material reprocessed, estimated savings of

384 kL HSD from transportation, resulting in an emission
avoidance of 1,016 tCO2e

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Water
Water withdrawal5
Though construction projects and hi-tech (Mn kL)
manufacturing are not water intensive, the
Company has been taking initiatives to reduce
Source FY 2021 FY 2022 FY 2023
water consumption and increasing water recycling
at project sites and manufacturing facilities as Surface water 1.64 2.09 2.38
part of its overall commitment to sustainability.
The Company is devoting resources to making Groundwater 4.48 3.72 2.99
its campuses green and one of the important Third party 1.55 1.76 1.46
components is recycling and reuse of wastewater.
The groundwater withdrawal has reduced by Others 3.47 3.63 4.35
33% over FY 2021-23. Recycled water is used
for non-potable purposes e.g. gardening, toilet Total 11.13 11.20 11.18
flushing, as well as ancillary activities in construction
e.g. dust suppression, equipment washing and other
areas. Various measures have been undertaken
to construct rainwater harvesting structures at
manufacturing facilities and some project sites.

Water consumption6 Water consumption intensity7

(Mn kL/year) (kL/¢ Bn)
11.1
11
10.9 12,603
11,142
10,155

FY 2021 FY 2022 FY 2023 FY 2021 FY 2022 FY 2023

Water consumption intensity has reduced in Wastewater recycling efficiency8

FY 2022-23 compared to FY 2021-22 due to 68%
reduction in water consumption for some large
irrigation projects, where a huge quantity was
being consumed for dust suppression activities in 53%
previous years as well as close-out of some projects.
41%

5-8
Data revised for FY2022 and FY 2021 based on
reassessment and corrections.
FY 2021 FY 2022 FY 2023

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Use of treated wastewater for tunnelling works

Tunnelling work requires a significant quantity of water,

primarily in slurry preparation (60% of total water
requirement in a project). In peak summer months
(Apr-Jun), it becomes difficult for projects to source
water. In the Mumbai Coastal Road project, the team
explored options and identified treated wastewater
from sewage treatment plants as a potential option.
After expert consultation and passing quality checks,
the treated wastewater could be used in tunnelling
work. The team made arrangements for sourcing
from STPs and used only the treated wastewater for
tunnelling operations.

Impact
Helped avoid of freshwater consumption by 13,000 kL
by using equivalent amount of treated wastewater Tunnelling slurry processing at
Mumbai Coastal Road project

Drinking water from atmospheric water generator

Linear projects, particularly those in remote locations, face difficulties in sourcing

freshwater for drinking. At the Meghalaya-Assam Bridge project site, the situation
becomes even more difficult at times of river flooding. To overcome these difficulties, the
project team explored other possible options for sourcing freshwater and identified the
Atmospheric Water Generator as a suitable one. Currently, this is in the testing stage.

The humidity of the project location enables this as a potential solution to address the
freshwater demand of the site. Due to its unique design, it provides clean water with
no significant treatment involved and has the capacity to generate 1kL per day. Also,
this solution has no water-reject as compared to that in a typical RO system and thus,
significantly reduces the freshwater sourcing requirement.

Atmospheric Water Generator at

Meghalaya-Assam Bridge project

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Waste and Circular Economy

Waste management is another focus area for the Company due to the volume
and type of materials used in projects and manufacturing. The Company has
Hazardous waste
undertaken measures to ensure proper waste identification, segregation,
4,239 tonnes collection, recycling, and disposal. Comprehensive waste management
(82% increase w.r.t. FY 2021-22) guidelines and procedures which follow the 3R principles (Reduce, Reuse,
Recycle) are in place. After exhausting the options for reuse/recycling,
different disposal methods are deployed depending on the waste categories
Non-hazardous waste
and also tie-ups with authorised vendors utilised to ensure proper disposal
322,636 tonnes and adherence to Environment Management System (ISO 14001:2015) and
(550% increase w.r.t. FY 2021-22) other regulatory compliances, wherever applicable.

The significant increase in waste Waste management measures:

generation reported is due
to higher coverage of waste à Hazardous waste is stored and transported as per the statutory
generation reporting across requirements
different businesses, which in à Hazardous waste – such as used oil, oil-soaked cotton waste, used chemical/
the previous year was partial, paint/oil containers, batteries, paint residues and ETP sludge – is disposed
and on account of higher through Government-approved recyclers/re-refiners/re-processors
material consumption linked to
significantly higher execution. à Electronic waste (e-waste) is disposed through authorised vendors as per
the statutory requirements
à Biomedical waste generated at dispensaries and health-centres is disposed
as per statutory requirements, and responsible disposal is ensured
à Non-hazardous waste is either reused, recycled, or scientifically managed
à There is no import, export, transport or treatment of any hazardous waste
covered under the Basel Convention

Material Management Material consumption

(Mn tonnes)
The materials consumed primarily during business activities are
Material Consumption
steel, cement and sand. Sustained efforts are taken to recycle steel
and zinc at the production facilities (transmission tower production Ferrous 3.06
unit). However, the scope of using recycled material is limited due to
customer specifications. At construction sites, judicious use of fly ash Non-ferrous 0.02
and granular blast furnace slag to blend with cement is made.
Cement and sand 11.56

Steel recycled Zinc recycled

(tonnes) (tonnes)
2,497 2,469 155
2,339
130

85

FY 2021 FY 2022 FY 2023 FY 2021 FY 2022 FY 2023

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Fly Ash GGBS Crushed Sand

(Mn tonnes) (Mn tonnes) (Mn tonnes)
0.24
0.23 0.25 0.27 3.12

0.21
0.19

1.44 1.33

FY 2021 FY 2022 FY 2023 FY 2021 FY 2022 FY 2023 FY 2021 FY 2022 FY 2023

Percentage of Crushed Sand used Share of Fly ash and GGBS in

in place of sand cementitious materials

15%
45%

12%

10%
31%
29%

FY 2021 FY 2022 FY 2023 FY 2021 FY 2022 FY 2023

Reuse of excavated material as usable soil

In the Delhi Airport project, excavation was done to create the

necessary profile before it was refilled with the desired quality
of material. Due to the location of the project, both dumping
of excavated material as well as sourcing of fresh soil is a
challenge. The project team modified an existing aggregate
screening plant to recover soil from the excavated material,
which was then reused for filling. Reuse of excavated material
at Delhi Airport project

Impact
Helped avoid sourcing of around 205,882 m3 of virgin material
due to reprocessing of excavated material at the project site

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Extended Producers Responsibility (EPR)

EPR is applicable for plastic waste, e-waste, and battery waste. In 2022, the
Ministry of Environment, Forest and Climate Change made changes to the EPR
guidelines (Plastic Waste Management Amendment Rules, 2022) and extended
the coverage of the regulation to firms (importers) that generate plastic waste
from packaging of imported material or equipment. The Company does not
manufacture any plastic product and as an importer of some materials/equipment,
comes under the ambit of amended EPR regulations. The Company has applied for
registration as an importer under EPR (through CPCB portal), and the application
is currently under process. Notwithstanding the recent changes, the business units
of the Company continue to monitor the generation of plastic and e-waste and
disposal according to the Pollution Control Board (PCB) rules. The Company is also
undertaking steps to strengthen its waste management system.

Presence in eco-sensitive areas

Due to the locations of some construction projects and a few manufacturing facilities, the Company has a
presence in a few eco-sensitive areas (such as national parks, coastal regulation zones, etc.). The Company
complies with all applicable rules and regulations for such locations and ensures that there is no harm
done to the flora and fauna due to the business operations in these locations. Further, the Company has
taken additional steps to mitigate impact on the environment. A list of projects in these eco-sensitive
locations is given in Essential Indicator No. 10 and steps taken are indicated in Leadership Indicator No. 5
in Principle 6 of the BRSR.

Green buildings in L&T

Leadership Development
Academy, Lonavala was
re-certified as IGBC Platinum in
FY 2021-22 and A.M. Naik Tower,
Mumbai was certified as LEED
Platinum in FY 2020-21.

In addition, there are 12

buildings across different
campuses/locations which were
certified at different periods.

A.M. Naik Tower, Mumbai

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Biodiversity
Tree plantation
L&T has planted 1.9 million saplings in FY 2022-23, with
over 99% planted by the Water & Effluent Treatment (WET)
business. Over the years (2008-2022), L&T has planted over 8
million saplings.

Parbati Giri Mega Lift Irrigation project, Odisha

Sone-Kanhar Mega Lift Irrigation

project, Jharkhand

Primary School, Dhanbad

Coimbatore Underground
Drainage project

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Top soil preservation at Metro project

Construction projects involve excavation to
create different structures. In some cases,
even the topsoil is excavated and dumped
along with other materials excavated. In
the Patna Metro Project, an initiative was
undertaken to ensure that topsoil was
stripped to a depth of 20 cm, stockpiled at
designated location, and then reused for
plantation purposes.

Preservation of topsoil, aids in biodiversity.

and quicker afforestation efforts within a city.
Total volume of topsoil preserved was 235 m3.

Top Soil Preservation at Patna Metro Project

Compliance
The Company’s campuses, manufacturing facilities and and project sites
have obtained the necessary approvals with respect to the various statutes,
rules and regulations from authorities before commencing their operations.
There is a ‘system compliance report’, which is reviewed at business units
and regional offices on a quarterly basis. During the year, there were two
incidents of allegations of non-compliance, details of which are in Essential
Indicator No. 10 in Principle 6 of the BRSR.

The Company continues to explore

opportunities both internally and
externally in different aspects of Natural
Capital. Aligned with the Vision, the
Company will pursue eco-friendly growth
and help clients in their sustainability
journey through our Green Business
offerings. Also, the Company will continue
to focus on promoting sustainability within
the organisation and innovation will be a
major enabler towards this objective.

Taking a pledge on World Environment Day

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MANUFACTURED
CAPITAL

Sewri Interchange of Mumbai Trans Harbour Link project

Manufactured capital for L&T comprises EPC Projects and

Hi-Tech Manufacturing. Driven by a constant focus on delivery
excellence, cost competitiveness and innovation to enhance
offerings to its clients, the Company aims to maintain its
leadership position across various industry segments. While the
business environment continues to remain challenging due to
macro factors as well as industry-specific issues, the Company
continued to make encouraging progress in all business
segments. On the back of strong order wins, the Order Book
of the Company is at an all-time high level, and this gives the
Company a good base to continue the growth momentum for
the coming years.

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Key Highlights Strategy linkage

of FY 2022-23

SO-I SO-III SO-V SE-1 SE-2 SE-3 SE-4 SE-5

729
Total active project sites
For details, refer to 'Business Model and Strategy' section

SDGs Impacted
18
Manufacturing plants

¢413 Bn
Green business

Material Topics
à Customer Experience and Satisfaction
à Quality of Products and Project Delivery
à Water, Waste and Hazardous Materials
Management
à Skilled Manpower
à Sustainable Supply Chain
à Human Rights and Labour Conditions
à Data Security, Privacy and Cyber Security
à Brand Management

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Buildings & Factories

Offerings
à Airports, Hospitals
à Educational Institutions, Stadiums, Statues, Hotels,
Retail Spaces, Station Development
à IT Parks and Office Buildings, Data Centers
à High-rise Structures, Mass-housing Complexes
à Manufacturing Facilities, Cement Plants,
Warehousing Facilities
à Test Tracks, Fast-Track Modular Construction

Capabilities
à Turnkey solutions from 'concept-to-commissioning'
A section of the Mauritius Metro Project
across the entire spectrum of urban infrastructure,
hospitals, IT infrastructure and data centers, and
manufacturing facilities
à In-house design expertise using advanced systems Transportation Infrastructure
like Building Information Modelling (BIM), aided by
competency cells, advanced formwork systems and Offerings
digitalised project management
à Roads and Bridges, Elevated Corridors, Airport
à Track record of building tall, large, complex and
Runways
iconic structures across India and overseas, e.g., The
Statue of Unity, Narendra Modi Cricket Stadium and à Integrated/Composite Railway Projects, Dedicated
international airports Freight Corridors

à Front-runner in fast-track project execution by à Mass Transit Systems (Metro/Light Rail/Monorail)

offering advanced construction technologies, e.g., à Railway Tracks – Ballastless, Ballasted
Pre-fabricated Pre-finished Volumetric Construction, à System Works and Integration – Track, Overhead
Structural Steel Construction and 3D Printing Electrification, Signalling and Telecom

Apollo Proton Therapy Center, Chennai

Capabilities
à 'Design-to-build' solutions with single-point
responsibility for Integrated Railway and Mass
Transit Projects
à Design-to-Build expertise for the full spectrum of
highways, bridges and elevated corridors, including
complex interchanges and ancillary works for
runways
à Pioneer in adopting mechanised construction and
digital project management for faster execution with
higher quality and better safety
à First-of-its-kind Competency Development Centre for
Railway Construction in India

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Heavy Civil Infrastructure

Offerings
à Mass Transit Systems (Metro Rail – Elevated &
Underground, Rapid Rail), High-Speed Rail
à Tunnels (Transport, Water)
à Nuclear Power Plants, Hydro Electric Power Plants,
Pumped Storage Plants, Irrigation Systems
à Ports, Shipyards, Marine Structures (breakwaters,
berths, jetties and wharfs)
à Deep Underground Storage Caverns

Substation for Sudair Solar PV Project

Capabilities
à Concept-to-commissioning capabilities to execute
complex infrastructure projects
à Rich expertise to execute underground works with
Power Transmission & Distribution
New Austrian Tunnelling Method (NATM) and
Offerings
Tunnel Boring Machine (TBM); Expertise to erect
superstructures using innovative methods, e.g., full à Transmission Lines, Substations
span launching method à Underground Cable Networks, Distribution
à End-to-end design and engineering capabilities for Networks, Power Quality Improvement Projects,
detailed project reports, seismic qualification, Infrastructure Electrification
geo-tech engineering, blast resistance, and other à Solar PV Plants including Floating Solar, Battery
areas aided by a unique construction methodology Energy Storage Systems
cell to execute complex solutions
à Mini/Micro-grid Projects
à Owner and operator of one of the largest fleets of
à Backbone for Fibre Optic Infrastructure
heavy and complex machinery, e.g., TBM, heavy-lift
cranes, shotcrete machines, and other areas. à Digital Solutions

Mumbai-Ahmedabad High-Speed Rail project

Capabilities
à Integrated solutions and end-to-end services
encompassing design, manufacturing, supply,
installation and commissioning
à Digitally-driven tower manufacturing units with
a capacity of more than 1.5 lakh tonnes of tower
components per annum
à Own and offer one of the world’s largest Tower
Testing and Research Station
à In-house Battery Energy Storage System (BESS)
containerisation facility to offer large-scale,
renewable integration solutions
à Track record of executing first-of-its-kind projects
in India and abroad, e.g., India’s first 1,200 kV and
765 kV Gas Insulated Substations

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Capital

Water & Effluent Treatment

Offerings
à Water Supply Systems - Urban, Rural, Industrial
à Treatment Plants – Water, Sewage, Effluent
à Wastewater Collection Network
à Desalination Plants
à Micro and Lift Irrigation Systems, Canal
Irrigation, Reservoirs and Barrages
à Plant Water Systems, 24x7 Pressurised Water
Supply, Water Management Solutions, Smart
Water Infrastructure
à Riverfront Development

Converter for Steel Melt Shop, JSW Dolvi

Capabilities
à Proven track record of offering end-to-end solutions,
Minerals & Metals
spanning the entire spectrum in water, irrigation and
wastewater
Offerings
à Capability to design and build treatment plants
covering an array of process technologies from à Iron and Steel Plants
conventional treatment to advanced treatment like à Non-ferrous Smelter and Refiner – Aluminium, Zinc,
ozonisation and granular activated carbon Copper, Gold plants
à Developing and adopting innovative execution à Mineral Beneficiation plants
methods, e.g., horizontal directional drilling, à Speciality Conveyors
micro-tunnelling, advanced pipe repair solutions
à Equipment for Mining, Cement and Material Handling
and pre-cast solutions
à One-stop solution provider for digital and
tech-enabled solutions in water and wastewater
management, e.g., hydraulic modelling, leakage Capabilities
management, GIS asset mapping, billing and master
data management, etc. à One-stop solution provider for the minerals and metals
(ferrous and non-ferrous) industry, powered by in-house
design, engineering, manufacturing, construction and
commissioning capabilities
Erode Water Supply project, Tamil Nadu
à High-end manufacturing facility for equipment used
in mineral processing, bulk material handling (Stacker
Reclaimers, Wagon Tipplers, etc.), Port Cranes,
High-Speed Railway Equipment (Straddle Carrier, Full
Span Launching Girder, Girder Transporter), Steel Plant
Machinery (Torpedo Ladle Cars, etc.) and other
custom-designed products for various industries, e.g.,
Cement, Power Plants, Construction Industry and
Chemical Plants
à Technology tie-ups with global licensors and OEMs in
the metal industry

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L&T Energy - Hydrocarbon

Offerings
à Process Complexes and Wellhead platforms, Gas
Compression Modules, Subsea Systems, Floating
Production Storage and Offloading (FPSO) Modules
and Jack-up Rigs, Deepwater Subsea Manifolds and
Structures
à Upstream Oil & Gas Processing and Treatment
Facilities
à Petroleum Refining Projects, Fertiliser Projects,
Petrochemical Projects
à Cross-country Pipelines and Terminals
à Cryogenic Storage Tanks and Regasification
Terminals Sikalbaha Combined Cycle Power Plant,
à Coal/Pet-coke Gasification Projects Bangladesh

L&T Energy - Power

Capabilities
Offerings
à Integrated ‘design-to-build’ solutions for complex
onshore and offshore hydrocarbon projects across à Coal-based Thermal Power Plants – Sub-critical,
multiple geographies Supercritical and Ultra-supercritical Technology
à Track record of simultaneous execution of à Gas-based Thermal Power Plants - Combined
multiple, complex, large-value projects, meeting Cycle, Heat Recovery Steam Generators
stringent delivery schedules, quality and safety à Nuclear Steam Turbine & Generator Island
norms
à Flue Gas Desulphurisation units, Electrostatic
à Extensive experience in executing projects based Precipitators (ESP) and Selective Catalytic
on technologies from leading global process Reduction (SCR) units
licensors
à Comprehensive engineering capabilities, offering
‘Fit-to-purpose’ engineering solutions and tailored
value engineering solutions such as product Capabilities
modularisation and asset repurposing
à Turnkey solutions provider for executing large and
à Industry-leading HSE performance complex thermal power projects within and
à Strategically located state-of-the-art, all-weather outside India
waterfront Modular Fabrication Facilities at à Technology collaborations with global leaders like
Hazira, Gujarat and Kattupalli, Tamil Nadu Mitsubishi Power, Japan; Sargent & Lundy, USA;
Howden, UK; Chiyoda Corp, Japan and
Mumbai High North (MHN) Complex
John Cockerill, Belgium
of ONGC
à Capable of supplying high-end equipment for
thermal plants, enabled through joint venture
companies which manufacture ultra-supercritical/
supercritical boilers, turbines and generators,
pulverisers, axial fans, air preheaters and
air-pollution-control equipment
à Leadership position in execution of gas-based
projects, across different capacities and advanced
technologies

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 Manufactured
Capital

Defence
Offerings
à Weapon Delivery Systems (excluding weapons) for
Land-based and Naval Applications (Surface Ships
and Naval Underwater Platforms)
à Engineering Systems & Equipment: Tactical & Assault
Army Bridging Systems, Heavy Air Drop Systems, Helo
suite for Naval & Coast Guard Systems, Sonar Domes
and Sonar Handling Equipment
PTA Crystalliser for a Petrochemical Company à Integrated Platform Management System, Infantry
in Turkey Combat Vehicle
The business does not manufacture any explosives or
ammunition of any kind, including cluster munitions or
antipersonnel landmines or nuclear weapons or components
Heavy Engineering for such munitions. The business also does not customise any
delivery systems for such munitions.
Offerings
à Hydrocracker and Renewable Diesel Reactors, Capabilities
Titanium and Zirconium Heat Exchangers, Titanium à India’s leading private sector company in the Defence
Clad Oxidation Reactors segment – with over four decades of partnership with
à Fluid Catalytic Cracking (FCC) Package, Coke Drums, the Defence Research Development Organisation
Ethylene and Propylene Oxide Reactors, Gasification (DRDO) and the Ministry of Defence
Equipment à Established track record of developing in-house
à Methanol Converters, Key Gasification Equipment, solutions and co-creating indigenous solutions with
Urea and Ammonia Equipment, Loop Reactors, HP DRDO, including design, prototyping to supply,
Heat Exchanger field trials/installation on platforms, obsolescence
management and through-life support. Proven
à Nuclear Power Equipment (Steam generator,
command and competence in highly specialised
à Pressuriser, End Shields, Spent Fuel Canisters) applications
à Modification, Revamp and Upgrade (MRU) Solutions
à State-of-the-art manufacturing facilities leveraging
automation and digitalisation (Industry 4.0) to
deliver consistent quality, while meeting stringent
performance parameters and tight delivery timelines

Floating Dock for Navy

Capabilities
à Providing engineered-to-order equipment solutions
and critical piping for Process Plants (Refining,
PetChem, LNG, Fertilizer, Gasification segments)
and Nuclear Power segment
à Technology-driven, quick turnaround solutions for
process plants offered by MRU business
à World-class manufacturing complex with
cutting-edge technology adopting Industry 4.0

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Smart World & Communication

Offerings
à Smart Cities and Safe Campuses, Safe Cities
à Advanced Metering Solutions
à Next-Gen Network Solutions, Satellite and Radio
Communication, and Communication Networks
for the Defence Sector
à Data Center and Private Cloud, Telecom Services
Infrastructure including 5G
à Cyber Security

Capabilities
à Strong domain expertise and end-to-end implementation
capabilities for Safe Cities, Smart Cities and Smart Utilities
à End-to-end solutions for digital transformation
of communication networks and systems for the
Government, enterprises and industries
à In-house platform and solutions suite to help solve the
problems of cities, law enforcement agencies and critical
infra domains; developed solutions and services leveraging
advanced technologies such as IoT, AI/ML, Geospatial and
Raintree Boulevard, Bengaluru
computer vision in select domains

Jhansi Smart City Command and Control Centre

Realty
Offerings
à Mixed-use Integrated Real Estate
Developments
à Residential Complexes
à Transit-oriented Developments
à Commercial and Retail Spaces
à Built-to-suit Projects

Capabilities
à The business derives its competitive advantage
from transparency, cutting-edge technologies
and superior project management skills – to
create landmark real estate that meets global
standards
à One of the most trusted brands in the Real
Estate sector in India and respected for its
customer-centricity and delivery excellence

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 Manufactured
Capital

Growing L&T's Green Business

Aligned to the Company’s Sustainability Vision of 'For a Better World', the Company offers a
bouquet of sustainable solutions which help its customers go green. These solutions, termed as
'Green Business', are enabled through advanced technology, and centred around clean energy,
clean mobility, water and sanitation, green infra and other areas linked to a green future. Through
the Green Business, the Company helps its customers in lowering carbon emissions, improving
water use and recycling, improving energy efficiency, reducing air pollution, and enhancing
resource conservation. Overall, L&T’s Green Business offer solutions that have a low impact on the
environment and help improve public well-being.

The Green Business contributed ¢ 413 billion (37%) to the revenue of the Company as compared to
34.7% in FY 2021-22. As part of the Lakshya 26 Strategy plan, L&T intends to increase its share of
Green Business to 40% of revenue.

The environmental impact assessment of Green Business was conducted recently. It was estimated
that the projects commissioned in FY 2021-22 and FY 2022-23 would help avoid emissions to the
tune of 1 million tCO2e.

The Company’s green commitment was also acknowledged globally by ENR in its annual
rankings for 2022. L&T was ranked 3rd in Top 200 Environment Firms Survey by ENR. Engineering
News Record (ENR), New York, is one of the global construction industry's authoritative publications.

Clean Energy Clean Mobility

à Renewable Energy (Solar, Hydel) à Mass Transit Systems (Metro, LRT)
à Nuclear à High-speed, Semi-High-speed Rail
à Conventional Railway infra
6%
7%
Green Infra
à Green Buildings
13% 38%

Other Water & Sanitation

à Process Equipment for à Water Supply

36%
Biodiesel / Clean Fuels à Irrigation
à Surface Miners / Sand à Treatment Plants (Water,
Plants, etc. (Except for Coal) Wastewater, Effluent)
à Smart City System à Network (Wastewater)

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The Company’s Green Business offerings are under two common strategies to handle climate change.

Strategy Offerings under

Climate Change Mitigation Renewable Energy Plants, Nuclear Energy Plants, Mass
-Reduce the impact of current processes/ systems on Transit System, Railway Networks, Others (Process
environment Equipment for Clean Fuels)

Climate change Adaptation

Water and Sanitation Infrastructure, Green Buildings,
-B
 uilding resilience to manage the consequence of
Others (Smart City Systems, Sand Plants)
changes

Infrastructure/assets created under mitigation also help in adaptation through second order effects.

Snapshot of Company's Green Business

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 Human
Capital

HUMAN
CAPITAL

At L&T, Human Capital is one of the key assets which

drives the Company forward through its competencies
and expertise. L&T has a multi-generational workforce
drawn from diverse ethnic and cultural backgrounds
and embodies a rich mix of educational and professional
experience. The Company fosters a fair, inclusive,
performance-driven and collaborative work culture, and
aspires to create a pipeline of talent that can deliver for
diverse businesses, while conforming to L&T’s values and
ethos. The Human Resources function is aligned with the
Company’s overall business strategy, playing a significant
role in its implementation. Learning and Development
(L&D) is also an integral part of the people strategy.

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Key Highlights Strategy linkage

of FY 2022-23
SO-I SO-II SO-III SO-IV SO-V SE-2 SE-4

55,202 For details, refer to 'Business Model and Strategy' section.

Total employee strength

6.9 Mn
Safety training man hours
SDGs impacted

33 years
Median age of
employees

Material topics
à Employee and Workforce Engagement,
0.06
LTIFR
Well-being, Health and Safety
à Skilled Manpower
(Lost Time Injury Frequency Rate)
à Talent Management - Attraction, Retention and
Development
à Diversity, Inclusion and Equal Opportunity
à Human Rights and Labour Conditions
à Business Ethics
à Corporate Governance
à Brand Management

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HR Strategy

To align and synchronise the Keeping in mind the overall strategic objectives of the Company, the
HR strategy with the business following themes were identified:
strategy, a Future-Ready
HR Strategy Workshop was
organised during the year, Agile Alternate
which witnessed participation Leadership Talent Model
from HR heads of various
businesses to help identify key
HR strategy themes.
Employee Diversity, Equity
Experience and Inclusion

People Leadership at Core

(Along with Talent Mobility)

Lakshya 2026 Corporate HR Steering Committee, comprising senior leaders across functions, was formed
to provide strategic direction and guidance through conceptualisation, implementation and institutionalisation
of the HR strategic theme.

A Programme Management Office has been put in place to facilitate the entire process. Taskforces have been formed
comprising of Sr. Executives from Business, HR Heads, Young HR Professionals and Subject Matter Experts. Some of the
focus areas are:

à Hiring of niche talent

à Attraction and retention of young talent
à Talent for new businesses
à Equip functional and support teams with
suitable talent possessing international
experience
à Hire and develop leaders, especially
women
à Strengthen the leadership pipeline
à Adopt a radically different and proven
approach to workforce contracting
à Deployment and productivity
improvement
à Developing Frontline Supervisor (FLS)
strength and improving the gender ratio

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Accelerating HR Digitalisation

L&T’s HR Digitalisation journey has partnered with People Strong HEERA, an AI-enabled bot, is
began in 2022 with the for hiring and onboarding processes integrated with MS Teams, aiding
incorporation of an advanced ERP integrated with the ERP system in conducting quick engagement
system in the form of SF Success to digitalise the talent acquisition surveys across the organisation. This
Factors (Employee Central). The process. The Company has also provides a methodical approach
Company extended the platform in partnered with Pay Review to bring for gathering employee feedback
2023 with further enhancements L&T’s compensation structure under periodically. HEERA provides a
by introducing Performance one roof, and its implementation is window for employee queries and
Management, Career Development underway. resolutions as well.
and Succession Planning Modules.
These modules provided an impetus Human Capital Dashboards were The Company is also in the process of
towards identifying emerging created in Power BI and launched launching the Learning Management
leaders and building a strong talent during the year. These dashboards System and Workforce analytics
pipeline. Subsequently, the Company help in gauging the pulse of the which will enable predictive analytics
launched 360-degree and 270-degree workforce, improve decision-making by integrating data from multiple
feedback modules. The Company and help in strategy formulation. systems.

Talent Strategy

Strategic Leadership in Engineering) is a pre-joining

engagement initiative, which
Talent Acquisition includes gamified content with
Strategic Leadership Talent leaderboards, webinars, newsletters,
Acquisition function identifies, presentations on marquee L&T
selects and onboards high-calibre projects, virtual industry visits and
external leadership talent to drive engagement through social media
growth of new businesses like platforms. In FY 2022-23, 3,050 GETs
Green Energy, Sufin, EduTech, Data were inducted, which is double the
Center, and strengthen Corporate standard annual headcount
departments. of 1,400-1,500.

Young Talent Acquisition Employer Branding

L&T offers diverse opportunities for A renewed thrust on employer
growth and leadership. Last year, branding was initiated through
the major emphasis was on Campus various initiatives on social media
Hiring and Branding, facilitating platforms. In FY 2022-23, the
the connect with engineering and Company focused on enhancing the
management students across various employer brand, increasing brand
colleges by offering industrial awareness and engaging with the
visits, sponsoring college fests, employees through Life Pages on the
organising tech talks, etc. GRACE Company’s LinkedIn page focusing
(Get Ready for an Awesome Career on Diversity and Inclusion, Campus
Engagement and Life at L&T.

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 Human
Capital

Talent Development

Talent Identification and Succession Planning

L&T’s Performance Management System FAIR (Framework for Linking Appraisals with Incentives and
Rewards) ensures recognition of talent and promotes meritocracy. The Career Development and
Succession Planning Module was integrated with the Performance Management System to facilitate
the process efficiently. Leadership Development Centres enable the grooming of internal talent and
ensure that the right leadership talent is identified through an objective selection process. In talent
assessment, the Company has conducted more than 800 assessments across tiers and digitalised
the Individual Development Plan module to facilitate the developmental journey of high-potential
talent. In FY 2022-23, more than 110 employees across Tiers 3 and 4 have started their IDP journey
through Development Centres. Furthermore, an entire portfolio of critical roles is created by
aligning the impact drivers, where succession matters the most.

The Company’s signature Seven-Step Leadership Pipeline Development Programme is an

established best practice in Talent Development. These flagship programmes provide young
employees access to curated, high-potential learning experiences delivered by reputed leaders
from Indian and International Business Education Institutes. The emerging leaders, who move up
the Seven-Step Leadership Pipeline Development Programme, are mentored by senior leaders,
ensuring robustness in the continuity of the leadership’s thought process and in taking forward
L&T’s value system.

Corporate Learning and Development

Learning & Development focuses on continually upgrading the capabilities through leadership, strategic and
competency-based learning interventions centrally for businesses across L&T.

Leadership Alignment with

commitment the business
and resources needs
L&D Enablers

Robust learning
architecture through
blended learning

Business partnering Comprehensive

through internal learning ecosystem
and external forums through internal
academics and
external institutes

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AGE
Employees
(age & gender wise) <30yrs 30-50yrs >50yrs Total

Female 2,082

GENDER
1,498 183 3,763

Male 14,485 31,805 5,149 51,439

Total 16,567 33,303 5,332 55,202

AGE
New Joinees
(age & gender wise) <30yrs 30-50yrs >50yrs Total

Female 1,515 390 14 1,919

GENDER

Male 7,270 5,554 332 13,156

Total 8,785 5,944 346 15,075

AGE
Attrition
(age & gender wise) <30yrs 30-50yrs >50yrs Total

Female 431 2,224 9 2,664

GENDER

Male 323 4,056 335 4,714

Total 754 6,280 344 7,378

Compensation Philosophy
L&T’s Compensation Philosophy is governed by the 3P model based on fairness, meritocracy and compliance
to attract, retain, motivate and reward employees.

Pay for Position Pay for Performance Pay for Potential

à Internal and external market à Considers employees’ à Considers capabilities and
benchmarking to ensure parity performance measured experience in setting an equitable
à Developing an equitable grading through achievement of Key and competitive pay level
structure, pay equity and career Responsibility Areas and à Potential of an employee
development Performance Thrust Areas of the measured in Development Centres
organisation/business entities (DC) using tools under the L&T
Competency Framework

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Overview of Corporate L&D Programmes

Category Programmes

Leadership Pipeline Step 1 - Step 2 - Step 3 -

Development – Management Leadership Global Leadership
Education Development Development
7-Step Programme Programme Programme Programme

Step 4 - Step 5 - Step 6 - Step 7 -

Transforming L&T into Global International Mentoring
a Global Corporation CEOs Executive Education
Programme Programme Programme

Competency
Development Ascent Series Think, Act, Engage Clusters
Development

Programme
Leadership

Project Level 1: Level 1+: Level 2: Level 3: Level 4:

Management Programme International Executive Advanced International Project
for Excellence Master in Business Project Project Portfolio
Excellence in Project (Specialisation in Leadership Leadership Leadership
Programme Delivery Project Management) Programme Programme Programme
(Pragati)

WINSPIRE
Rise Propel
(Women Leadership)

Young Talent Post Graduate Newbie to Harvard DDI (Leadership

Development Executive Management Knowbie ManageMentor Education
Programme (N2K) (mini-MBA Programme) Programme)

Management
Development
Management

Development Management Development Programmes

Programme
General

Accreditation Accreditation Programme in Corporate Law Executive Diploma in Human Resource Management
Development
Programme
Technology

Technical Orientation and Engineering Skill-building Modules

(SISP) Learning
Self-Inspired

Coursera
RaPL – Quiz- EBSCO -
Self-Paced

Courses, e-books, Percipio

audiobooks based Learning Digital Library

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75
Simulation programmes
260,634
Courses conducted in
offered on the ATL FY 2022-23 against
platform as of date 198,975 in FY 2021-22

3.36 lakh hours 103

awareness sessions conducted, covering
of learning through online
platforms, clocked by mental health, dietary and general medical
26,000+ employees topics impacting 17,971 beneficiaries

Learning Infrastructure and Initiatives

>100
Programmes
L&T Institute of Project Management conducted in
The Company established the L&T Institute of Project FY 2022-23
Management (L&T IPM) in Vadodara in 2008 and Chennai
in 2012 for creating world-class project management
professionals and thereby leveraging their skills and
competence in managing and executing projects. L&T
IPM offers a portfolio of learning opportunities such as
PRAGATI - Project Leadership Development Programme
for developing mega-project leaders, Specific Competency
Development Modules (SCDMs) and Master Classes (MCs)
in the core areas of planning, cost management, contracts,
risks and business-specific programmes.

Corporate Technology & Engineering Academy (CTEA)

Madh and Mysuru 1,300+ Freshers trained at
CTEAs in FY 2022-23
CTEA offers technical courses to freshers and competency-
based training to experienced professionals in civil,
mechanical and electrical labs. The academies transform
PGETs, GETs and FLS, by providing hands-on learning through
various labs. CTEA Mysuru designed 26 new programmes
on the latest technologies delivered by technical experts,
including a Certification Programme on Piling and Advanced
Steel Design, in collaboration with IIT Madras.

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 Human
Capital

Any Time Learning (ATL) In FY 2022-23, the Company Organisation Development

focused on developing Role-Based
L&T has digitalised its learning
Academies, wherein a Blended
Initiatives
delivery and democratised the L&T continues to implement various
Learning Programme was curated
learning process by establishing a developmental initiatives at the
to meet the knowledge needs of
scalable and multi-faceted learning organisational level to promote
specific roles/functional areas. The
platform called Any Time Learning growth and enhance efficiencies.
Company started virtual academies
(ATL). It offers a variety of rich Through FY 2022-23, several
on Digital Transformation, Finance,
learning resources (behavioural, businesses launched initiatives
Quality Excellence and ESG. The
technical and functional). Having aligned with Lakshya 2026 strategic
Company launched a Micro-Learning
tied up with globally-renowned Platform leveraging technology for goals. These initiatives leverage
course providers like Skillsoft, competency building, which is bite- team synergies to discover more
Coursera, Harvard ManageMentor sized, multilingual and gamified. effective and efficient methods to
(HMM), EBSCO and Development attain higher and quicker growth and
Dimensions International (DDI), further the organisational culture.
the platform provides numerous Leadership Development
certification courses around various Academy, Lonavala
competencies aligned with L&T’s Established in 1997, LDA is the
competency framework to meet fruition of the management’s
the unique upskilling and reskilling vision and commitment towards
requirements of employees. employee development. Through its
ATLNext also offers a unique AI/ML 25-plus years of existence, LDA has
technology-based communication evolved into a hub of L&D and forms
fitness coaching programme an integral part of L&T’s HR strategy.
to improve the work-related This integrated facility nurtures
communication skills of target thought leaders and entrepreneurs
employee groups. of the future.

Learning hours clocked under major categories

of programmes conducted by Corporate L&D

714
1% 1% Induction programmes
for Trainees
3%
3% Programmes
Young Talent
4%
Competency Development
6%

9%
41% Skill and Capability
Development
789,540
of learning
hours

Management
Development
12%

20%
7-Step Programme

Accreditation
9,608
Unique learners
Business Excellence

Safety

DEI

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Employee Engagement and Experience

High Five (Hi5) QuizWiz

Online rewards and recognition platform to promote The second season of L&T QuizWiz – an information
instant rewards and recognition to the employees. and knowledge extravaganza organised in October
2022 and conducted by Quiz Master Mr. Ajay Poonia.
It received a phenomenal response from 4,400
participants (2,200 teams).

Employee Experience Technology Platform

Platform introduced through HEERA for creating
engagement surveys to gauge employees’ pulse and
take the necessary action. Several surveys on areas
such as health and well-being, the Lateral Onboarding
Annual HR Awards – AHA
survey capturing 30-60-90 days’ experience and the
Campus Onboarding survey capturing 7-60-90 days’ Hosted on August 25, 2022, at LDA - Lonavala, AHA is
experience, etc., have been launched. a platform that recognises people practices of teams
as well as individuals. Over 80+ applications poured in
from across businesses, with16 teams presenting their
cases in the final round.

L&T Radio HR Shared Services Centre (HR SSC)

Internal podcast initiative hosted on the micro- In FY 2023, HR SSC expanded its operations to cover
learning platform for employees. Since its launch, end-to-end onboarding, talent acquisition, learning
more than 50 podcasts have been released, and development and compensation and benefits.
revolving around themes such as Leadership Talks, Initiated one of the most critical ongoing projects i.e.
Micro-learning Nuggets, HR Policies, Health and driving Pay Review Implementation which will be the
Wellness and special episodes in alignment with compensation and benefits module for L&T. HR SSC
occasions such as Women’s Day, etc. has also been contributing to L&T’s D&I agenda by
introducing ‘Lean In’ circles. These are support groups
based on various topics that women wish to seek and
provide support on. 1,500 women participated in
Lean In awareness sessions, with around 30 support
groups created.

Art Beats
An art campaign organised to bring out the full spectrum of L&T culture
through art witnessed more than 260 entries with 50 entries shortlisted
for the Grand Finale in February 2023. The jury comprised art collector,
Mr. Fida I. Hussain and his team of art aficionados. The ‘Art Beats
Gallery’ was organised in March 2023 at AMN Tower - Powai, displaying
a selection of the vibrant works of art submitted by L&T employees.

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 Human
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Diversity, Equity and Inclusion (DEI) Diversity Hiring

Today, L&T has operations in over 53 countries with L&T instituted RENEW to encourage women to
employees from 52 nationalities and 36 domiciles across re-enter the workforce in 2015. The application
states and UTs within India. Gender diversity has been process is integrated with the online recruitment
one of the prominent elements of the talent strategy and platform, which enables tracking and monitoring
the focus is on engaging, developing and retaining talent of the process wherein candidates can apply for
from diverse cultures and geographies. L&T is an ‘Equal roles in functions such as Audit, Finance/Accounting,
Opportunity’ employer and is working towards creating Engineering Design, Project Management, etc.
an inclusive work environment. Women lose out on time During FY 2022-23, the Company received more than
and progression when they avail maternity leave. A Policy 2,000 applications and RENEW has been the go-to
for Rating Protection of Women on Maternity Leave is programme to hire talent for functions such as CRM,
in place to ensure that their career progression is not Planning and L&D.
affected due to pregnancy. Wellness rooms have been
set up in seven locations to support lactating mothers
and others when in need. To support women in the
advanced stages of pregnancy, L&T provides the benefit 30%
Women GETs/
89
Women in senior
of Work From Home. Special ergonomic chairs are offered
to expectant mothers. As a part of Maternity Benefits, PGETs of total management
transport reimbursement is provided during the period of hires
one’s pregnancy, ensuring safe and comfortable travel.

200+
FY 2022-23 witnessed a renewed focus on hiring women
in the organisation. Several initiatives under WINSPIRE
focusing on engaging and developing women employees
Women underwent Leadership Journey
were organised. Sensitisation workshops were conducted
Programmes in last two years.
across the organisation to increase awareness of
Unconscious Bias and encourage employees to showcase
respectful and inclusive behaviour in the workplace. In an
industry where there are few women, the Company has
several leadership positions held by them. Great Place To Work® Certified
The Company organised a Virtual DEI Showcase on L&T Group has been certified
Women’s Day, i.e., March 8, 2023, where businesses as a Great Place to Work® in
organised virtual stalls showcasing their practices to India, which is considered the
improve gender diversity, organised Women Leader Gold Standard in recognising
Interactions, showcased achievements along with quizzes great workplace cultures. Over
and fun activities. 42,000 employees participated
across businesses, grades and
In FY 2022-23, the Company also evaluated its own locations. The practices in the
premises on accessibility to differently abled people; most areas of recruitment, employee
of them being accessible. The Company is taking steps experience, talent development,
to ensure 100% of the premises are accessible to the learning and development and
differently abled. total rewards were recognised
through this study. It also gave
an opportunity to hear the voice of the employees
and act in the direction of enhancing employee
experience and employer brand. Detailed action
planning will be carried out in the upcoming
financial year.

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Human Rights
L&T is committed to respecting, protecting and
upholding the human rights of the workforce and
across our value chain. The Code of Conduct is a
comprehensive document guiding employees to
conduct their businesses in conformity with professional
standards of integrity, honesty and ethical conduct,
one of the core principles being ‘Respect for Human
Rights’. In FY 2022-23, an internal assessment was
conducted by the Company across its manufacturing
plants and offices to understand and assess the potential
human rights risks related to child labour, forced
labour, sexual harassment, wages, discrimination at the
workplace, health and safety, working conditions, etc. Commitment towards Health and Safety
and practices put in place to uphold the rights of the The Company is committed to Mission Zero Harm and is
contractual workforce. 100% of the locations adhere to working on various strategies to continuously enhance
the regulatory requirements and also have grievance the standards within the organisation. This commitment
redressal mechanisms in place for the workers. extends to contractors, workers and suppliers as well,
working on behalf of the Company at the project sites
or premises. The Company adheres to International
Standards and Guidelines such as ISO 45001:2018. The
Company’s EHS Council monitors, measures and reviews
the EHS performance and compliance with procedures.
For further details on health and safety performance,
practices and management systems, please refer to
Principle 3 of BRSR in this Report.

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 Intellectual
Capital

INTELLECTUAL
CAPITAL

L&T Construction Research & Training Centre, Chennai

Water Technology Centre, Kancheepuram

L&T’s innovation efforts are focused on reducing material

consumption, improving resource productivity, reducing delivery
timelines and improving product design/features. These innovation
efforts are driven by R&D teams, engineering teams and project
execution teams across its various businesses.

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Key Highlights Strategy linkage

of FY 2022-23

SO-I SO-III SO-IV SO-V SE-1 SE-2 SE-5

¢ 3,448 Mn
Total R&D spend
For details, refer to 'Business Model and Strategy' section.

(cumulative for last 3 years)

SDGs impacted

380
R&D Engineers/Scientists

¢ 81,776
Revenue in FY 2023 from new
Mn
Material Topics
and emerging businesses
à Quality of Products and Project Delivery
à Talent Management – Attraction, Retention
and development
à Data Security, Privacy, And Cybersecurity
à Brand Management
à Business Ethics
à Corporate Governance

3D Printed Post Office, Bengaluru

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R&D Initiatives at L&T Construction Research and Testing Centre

In construction projects, L&T’s R&D endeavours are led by the L&T Construction Research and Testing Centre (based out
of Chennai campus), which primarily focuses its efforts on developing new types of materials and products relevant to
the construction sector.

Geopolymer Concrete
The environmental impact of the use of cement in concrete has
prompted research into the development of mixes using 100 %
replacement of cement and Geopolymer (no-cement concrete) is
one such concrete made without cement. The main ingredients
of Geopolymer concrete include industrial by-products like fly
ash and Ground-granulated Blast Furnace slag. The concrete was
made by activating the ingredients with an alkaline solution such
as sodium hydroxide and sodium silicate. L&T has developed M40
grade Geopolymer concrete and planned for its implementation
in some pilot projects. The main advantages of Geopolymer
concrete are early high strength and that it does not require
water for curing. It can be used in the construction of concrete
poles, sewage lines and in pavement construction.

Plastic Roads
Plastic waste management is a major issue due to the non-decomposing
nature of many types of plastics. The road construction industry has
developed a way to reuse some of these plastics to take a step towards
sustainable infrastructure development. In this approach, roads (‘Plastic
Roads’) are constructed using shredded waste plastic as a percentage of
bitumen, which helps in improving the performance of the road. Research
on the mixes developed using waste plastic has shown an improvement in
the performance and the life of the asphalt. L&T had constructed a 500 m
trial stretch in 2021 with varying percentages of bitumen (0%, 4%, 6% and
8%) replaced with waste plastic. Performance investigations of the field trial
stretch showed better performance as compared to conventional mixes.

Plastic Blocks
Another novel method has been developed by L&T to
reuse waste plastic – by converting it into paver blocks.
This was done by combining waste plastic with other
ingredients, e.g., fly ash and powdered glass from glass
waste. Single-use plastic (LDPE) was melted and mixed
with other raw materials in appropriate proportions
to obtain the paver block. The resulting product is
a lightweight, vibration-absorbing and eco-friendly
material. These paver blocks have been used to construct
a walkway on the L&T premises.

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Geopolymer Grout 3D Printable Concrete

L&T has developed a grout as an alternative to 3D concrete printing
the available proprietary grouts and it utilises is a form of additive
industrial by-products instead of cement. This manufacturing used to
in-house developed grout has similar fresh fabricate buildings or
and mechanical properties when compared construction components in
to the proprietary grout. It is used for precast complex shapes, which may
connections of the RC members. The developed be difficult with traditional
product is 40% more economical when formwork.
compared to proprietary grout. L&T has developed a
printable concrete mix
with 8 mm aggregates and
utilised the same for the
demonstration of 3D printed
buildings. Compared to the
typical cement-rich concrete
mix used in 3D printing,
the incorporation of coarse
aggregates reduces the
cement content percentage
and carbon footprint of
the concrete.

Geosynthetic Liner Material for Approach Channel

Hard surface lining evolved to address the more complex
conditions, such as steep slopes and high-water flow in
approach channels in hydel, river and marine projects.
Cement concrete lining, shotcrete lining, precast concrete
lining and cement mortar lining are a few examples of
hard surface lining activities. To reduce the use of cement
in such activities, L&T has explored alternate materials for
conventional lining materials. Geosynthetic liner materials
such as Geocomposite liners and Geotextile tubes have been
proposed as an effective and economical alternative to
conventional cement-based liners.

Development of Dense Bituminous Macadam Mix with

Copper Slag as a Replacement for Fine Aggregates
Typically Ground-granulated Blast Furnace slag has been
use to reduce cement in concrete and now efforts are
being made to utilise other types of slags generated
in the metal production process. L&T has piloted the
use of Copper Slag for replacement of fine aggregates
in the bituminous mixture. Trials were undertaken
with 10%, 20% and 30% of Copper Slag replacement
and the resultant mixes have improved mechanical
and performance characteristics as compared with
conventional mixes, along with a reduced carbon
footprint.

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Digital Transformation of EPC Projects

L&T commenced on the digital transformation journey of EPC projects in 2016 and has now reached a
fairly mature stage. More than 50 digital solutions are being used across project sites to improve project
delivery, reduce cost and achieve high levels of quality and safety.

1 AI for contracts NLP-based module for key clause identification, risk

quantification, document and datasheet extraction.

360º Risk Digital Solution to capture risk perspectives from

Bidding Perspective* all departments.

LMNOP+ App to access all Design Data, Topography

Survey Data and other project parameters
2 Dhruv GPS-based app for simplified surveys along
with BOQ for the project

Geospatial Survey utilising latest technologies like LiDAR,

Pre-Construction Survey drones, satellite imagery, DGPS, etc.

BIM Integrates multi-disciplinary data to create detailed

digital representations for real time collaboration
VR Immersive VR-based tool for review of engineering 3D models for
Walkthrough efficient constructability and maintainability review
3 Desk Design Suite* Automated tool to generate uniform design
documents with high precision

Engineering & Design ProdoSpec Online catalogue to select the right product based
on technical specifications and parameters

ConstZon Catalogue management tool meant to drive

standardisation and optimisation in the procurement
process

POMS Collaborative supply-chain platform for enhancing the

4
visibility and tracking of critical milestones from PO to
delivery at site

Vendor Performance 360-degree performance rating system to evaluate

Rating suppliers and enable decision making

Logistics Analytics* NLP-based module for logistics, offering spend trends and
Procurement insights on KPIs to enable data-backed decision making

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5 ProWPack* Solution which enables construction-

driven project management by
defining construction areas into
manageable work packages

Drone-based Drone-based project monitoring for

Monitoring* live feed of progress, timeline and
timelapse video with drawing vs.
actual mapping

Project PROCUBE Integrated project management

Management portal to track and manage projects

Geospatial Web portal for project visualisation

Portal in a geospatial format

GIS Progress Integration of GIS and project

Monitoring management tools for visualisation
and project monitoring
Construction

Mitr* Behavioural safety tracking

application for workforce to report
safe/unsafe behaviour and unsafe
conditions

Video Analytics* Solution leveraging ML algorithms

and computer vision to identify
potential safety hazards and
provide productivity insights

ViewEHS Mobile app to access all SOPs

Safety and forms for submission and
verification

VR-based VR-based immersive video for

Induction/ safety training during induction or
Training refresher courses

SHIELD-EHS Single platform to manage all EHS

processes for a project

New initiatives in FY 2022-23

*

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QIR Mobile-based application to ensure

quality effectiveness of projects
for identification and rectification
of quality observations via proper

5 workflow approval

TORQ Digital tool developed for NCR

management, Quality Auditing,
RFI and calibrating laboratory
apparatus – helps in higher
visibility and faster approvals

Quality
P-FAB Application for ensuring quality
compliance in every stage of pipe
fabrication

Conquer- Application for comprehensive

Quality quality checks, customer and
executive feedback

ConPro* Application for tracking the entire

Construction concrete supply-chain, including
integration of batching plants and
transit mixers

MHE Solution for tracking the

Certification certification compliance of
Reminder* equipment, eliminating manual
processes

WPS* Approval and repository-based

portal to capture pre-qualification
forms of welders deployed at
various projects
Resource
Management
WISA One-stop end-to-end digital
solution for all workmen-related
functions – profile, historical
records, certifications, training,
wages, etc.

AIS Digital platform to track and

visualise the count of connected
assets, their running status and key
operational parameters

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PWCC* Digital application for real-time

tracking of precast segment casting
and erection

5 Sprint* Geospatial solution to track pipe

material during the unloading and
laying processes

Material
Management TAG* Solution for codification and
tagging of individual special
materials and tracking usage
in the material lifecycle

Digital Automated weighbridges

Weighbridges integrated with ERP for data
recording / process flow

RMS Real-time data and monitoring of operating plants to enable

real-time decision making

CMMS Application to visualise and analyse the life-history of each asset

to aid maintenance activities for O&M projects

6
Post-
Commissioning
Fibertrack App for ensuring tracking and monitoring of patrollers and O&M
of around 16,300 km fibre network

Help AR-enabled Remote Assistance application, including video

Lighting collaboration services, that enables experts to work virtually side-
by-side with site personnel

New initiatives in FY 2022-23

*

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Capital

Digital Transformation of Manufacturing

Like EPC Projects, L&T’s manufacturing facilities have undertaken the digital transformation of various
processes involved in the delivery of engineered-to-order products. This has helped the businesses to achieve
benchmark delivery performance, while improving the working conditions and safety performance.

IoT for Utilities

IoT implemented for critical utilities like water,
fire, HVAC and electrical sub-station, enables
monitoring and predictive maintenance

PDM
Predictive maintenance module which helps
in identifying early failure, reduce spares
consumption and improves OEE (over equipment
efficiency)

One Man - Multiple Stations

One man operating multiple smart welding
stations; leveraging wireless technology, developed
as part of the Autonomous Welding Project
Equipment
Productivity and
Utilisation

IoT Stations

Smart IoT stations for Heat Transfer Equipment

(HTE) business unit (PBU) in Feeder shops and
Nuclear PBU shops

Factory IoT

Monitoring of OEE (overall equipment

effectiveness) through IoT data

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3D PDF Facilitates viewing the cable routing with its complete

inventory in a 3D environment from a normal desktop
computer instead of a high-end workstation

RPA with Automation of as-built drawing generation consisting of the

AutoCAD latest 2D drawing, BoM, weld details and drawing changes

PLM CAD Integration of PLM platform with native CAD software to

Integration* improve design and engineering efficiency and handle change
management better

Engineering Chatbots KnowMo: helps Design Engineers to find the right change
management clause as per the policy document

Lohita: helps to select the right weld parameters based on the

weld type and part material

AR for ship Augumented Reality based solution for designing and

construction* validation of ship components digitally

IDMS Automation of delivering the appropriate drawing and

documents to business partners, with IP protection and
revision control; comprises RPA bots meshed with ERP and PLM

eTLS Digitalisation of the entire process of Field Service

Management - captures the value chain from receiving
customer complaint till resolution and billing

iRUDRA* Solution to integrate various independent systems from design

to estimation, procurement, fabrication, quality assurance,
etc., enabling robust analytics and offering insights
Resource
Advanced Enables suppliers to provide advance information of their
Management dispatches to L&T along with supporting documents, reduces
Shipment Notice
(ASN)* the inspection time, thereby facilitating faster material
allocation for project use

Inventory & QR Code-based end-to-end tracking of material from gate

Material Tracking entry till handover to the manufacturing shop
System

Smart QMS Integrated way of planning in design, material, production

and quality functions

Supplier QMS* This platform extends features of internal QMS in ERP over
secured internet-hosted system - ensuring that the suppliers’
Quality quality complies with internal QMS

3D Printing 3D printing technology to make prototypes for pilot

projects - significantly reducing development cost

Digital Twin* Enables simulation of the entire process of platform

New Technology manufacturing - aids in conducting scenario analysis to select
the optimal production plan on the shop floor
New initiatives in FY 2022-23
*

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Capital

Other Digital Initiatives across EPC Projects and Manufacturing

BBS Tools PCIS (Project Control Predictive Analytics with EPSILON

Ensuring Bar Bending Indices System) Solution which enables project teams to identify
Schedule preparation Integrated system for possible delays in projects capitalising on
in a standard format, it building and monitoring schedule integration on EPSILON Platform.
enables optimised usage project schedules and
of offcut reinforcement capturing micro-level
bars, with the support of progress against the IPBS (Integrated Project Billing System)
Real Cut1D Optimisation project plan. It generates
Integrated application for generating and
Software. weekly and monthly
monitoring project invoices and related
progress insights.
supporting documents as per project billing
schedule.

GIS-based O&M Tracking Application

Real-time tracking of Edge devices implemented
across geographically dispersed project sites, SLA
tracking and monitoring their health along with
reasons for downtime and outage analysis.

Proactive Logistics Tracking Precast Tracking Solution Vendor Finance Scheme

for ODC Movements Solution for managing large volumes of Centralised MIS to monitor
GPS-based solution for precast components to be used in rural the status of vendors who
logistics team to track drinking water projects by tracking the are working under the
the location and status components from yards/factories till erection. ‘Vendor Financing Scheme’.
of critical equipment and
materials in real-time. It
is also connected through ePragati
API with various logistics Online platform for monitoring the ongoing projects; includes scheduling,
service providers. tracking, reviewing and managing the progress and performance of the
project along with managing changes when required.

HSE Credible System

Quantification of Digital Health Screening Legal Document Comprehension using ML
HSE Performance Application (DHSA) ML-based solution to extract important clauses
of staff – a tool to Real time recording, monitoring and attributes from legal documents
report and resolve and tracking of basic health
incidents/ unsafe parameters of workmen to avoid
acts/ conditions in a untimely incidents/ fatalities/ Rise in Service Excellence (RISE)
timely manner. reduce NAD (non-accidental death). Simplified feedback system to capture
the performance of internal functions
from various stakeholders.
FORM FIT GST Auto Reconciliation
Solution to track formwork RPA bot along with ERP
panel and cycles of reuse. customisation, provides ICAM
automated GST Internal Control Audit Module for
reconciliation capability scheduling audits and recording
to avoid Indirect audit findings against technical and
Taxation losses. commercial points.

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ETAP RebarPro Drishti

Digital application to track End-to-end tracking of rebar from Enterprise-level knowledge
history and degree of use of store-to-site after fabrication, enabling management system to
all enabling structures across wastage minimisation, saving time and provide situational guidance
project sites by using QR codes. accelerating process efficiency. and capture, store, extract
required information for
efficient knowledge transfer
MST Empower across the organisation.
Material scheduling tracker application An integrated tool for project
to plan and track the actual status of monitoring including material
the complete procurement cycle from tracking at site.
request to site delivery.

Value Engineering Initiatives

Extremely Long Lifespan Concrete Extremely Long Lifespan Steel Structures PPVC Toilet POD
Special design mix concrete along Design of structural stainless steel with 316L grade Modular toilets
with temperate-controlled curing for 500 years design life, used in unique projects. designed – suitable
process to enable extremely long for PPVC type of
lifespan (>500 years), used in construction.
unique projects, e.g., Statue of Glass Reinforced Fibre
Oneness, Ayodhya Ram Mandir. Concrete Cladding
Special design to enable Ammonia Refrigerant System for Efficient
large-scale use of GFC Energy Management
Reduction of Bronze cladding in a project, Ammonia Refrigeration System designed
Cladding Thickness helping conceptual for use in cold storage of raw materials and
Optimisation of the bronze architecture design to finished goods, to enable effective cooling
thickness based on Finite come to life. and efficient energy management.
Element Method analysis, also
enabling the structure to bear
high wind speeds and reduced
number of prop supports. Water Leakage Detection using Non-Destructive Test
Ground Penetrating Radar and other technology used in combination to
determine water leakage in a building basement and subsequent resolution
without any disturbance to normal operations/ use of the basement.

White Asphalt Pavement

Cement Grouted Bituminous Macadam (CGBM) which has better
performance and wear-resistance than normal flexible pavements.
table continued...

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 Intellectual
Capital

Value Engineering Initiatives

Extracting Quantities of Floor Precast Elements of Overhead Service Reservoirs (OHSR)

Finishes and Wall Finishes First-of-its-kind design of precast concrete elements for OHSR
Dynamo script programme staging and steel tank, helps reduce construction time, increase
for extracting quantities of quality control and minimise waste generation.
flooring finishes and wall
finishes from Revit BIM
model in a short duration. High Speed Rail Track Slab Production OHE LOP Optimisation
Production line economisation of In-house development of
Japanese casting method for Track a design automation tool
Hybrid (Low Impulse + Direct Throw) Slabs, enabled doubling of casting for OHE design drawing
Air Distribution System output, minimisation of waste and preparation works. It
HVAC air distribution with low impulse optimised production space. reduces cycle time by
system and nozzle orientation based 50-60% compared to the
on the CFD simulation, to ensure user traditional process.
comfort through uniformity of cooling Custom Designed Pier &
and air movement in large volumes/ Pier Cap Shutters
spaces without any cold curtain effects Devised an innovative, optimal, Concrete Design Mix
or excessive drafts or air stagnation. and easy to handle shuttering In-house experimentation with
arrangement for these diameter the use of Micro Silica in the
circular piers for MAHSR project, design mix of concrete for the
reduced fabrication time by 30% Digester structure enhances
Parametric Modelling of GA drawings
and erection time by 40%. the microstructure of concrete.
Developed solution for automation
of 3D model generation from GA
drawings based on standard derived
inputs - helps reduce modelling Application of Curing Compound using Steam Tracing
time by 70%. Electric Airless Spray Equipment Steam Tracing
Identification and deployment of electrically System automates
operated Airless Spray Machine - enables Material Takeoff
higher productivity and improved quality. calculation related
AI Optimiser for RCC Structures to tracer lines routed
AI-based tool to provide optimised from manifold
engineering solutions for engineering Improved Surface Miner to condensate in
of RCC and Steel structures covering Improved Surface Miner KSM403 with stronger refinery projects.
different international codes and chassis, upgraded undercarriage for higher
standards - enables multiple iterations life, in-built ROPS and FOPS Cabin for operator
in shorter time to find right design safety, ergonomically designed operator seat Electrostatic
according to site constraints. with new control system and 360 degree viewing Painting
camera system for operator convenience. Implemented a
process of putting
Twin Truss Launching Girder
an electrostatic
Developed new system for rear and
Multi-transmitter Setup charge in the paint
bottom feeding of pre-cast segments
Designed a multi-transmitter set-up in STP itself, to increase
for super structures in RRTS project,
instrumentation to reduce the number of transfer efficiency
enabled smooth operations for
transmitters; easier data interfacing with the by attracting the
erection activity and achieved a cycle
server and reduces operating expenditure. electron charged
time of 5 days per span.
paint to the
targeted object.
In-house Process Design for Sludge Treatment
In-house design of Temperate Phased Anaerobic Digestion for treating Class A sludge -
compared to the traditional process, this process has lower power consumption, lower
space requirements and does not use chemicals.

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Solar Powered Electric Vehicle

Project site activities involve considerable
intra-site commuting. Typically, HSD-
powered jeeps/campers are used in project
sites. At the Meghalaya-Assam Bridge
Project site, the project’s P&M department
developed a battery-powered vehicle (like
a golf cart) in-house, and with materials
available locally. Additionally, they installed
a solar panel on the vehicle to charge the
batteries. The vehicle also doubles up as an
emergency power back-up for lighting and
other purposes.

Two such vehicles are currently working

at the site location, with a total running
of more than 5,000 km and savings in HSD
consumption estimated at 800 litres.

Enhancement of Automatic Welding for Pipe

Fabrication
Fabrication works are getting mechanised and one
technique which is seeing increased adoption is
mechanised orbital flux cored arc welding. For large
dia pipes, the weld head, which includes the torch,
mounts on a track that encircles the entire exterior
or interior circumference of the pipe being welded.
A business unit of the Company undertook the task
of in-house modification of the welding track used
typically and also developed a new method for
handling very large diameter (>100” pipes).

With the help of the new track, the orbital FCAW

could be used for Fitting-to-Fitting and Fitting-
to-Flange weld joints, and weld deposit coverage
improved from 50% to 75% in the process. The new
method (flexi-track) enabled the welding of large bore
pipes (up to 142”) and increased coverage to 90%.

211
 Social and
Relationship Capital

SOCIAL AND
RELATIONSHIP
CAPITAL

At L&T, building long-term relationships based on

mutual trust, respect and benefits for business growth
and profitability is a way of life. The Company has
created meaningful social and relationship capital
while pursuing progress, meeting customers’ needs and
demands, working with suppliers, and driving inclusive
growth for communities.

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Key Highlights Strategy linkage

of FY 2022-23

SO-III SO-IV SE-2

1.5 Mn
For details, refer to 'Business Model and Strategy' section.
CSR
beneficiaries

SDGs impacted
10,736
MSME vendors

9.2
Customer
satisfaction score

Material topics
à Social Engagement and Impact
à Customer Experience and Satisfaction
à Sustainable Supply Chain
à Diversity, Inclusion & Equal Opportunity
à Corporate Governance
à Business Ethics
à Human Rights and Labour Conditions
à Brand Management

213
 Social and
Relationship Capital

Building India’s Social

Infrastructure

L&T is committed to social responsibility and has

established a CSR programme that focuses on promoting
inclusive growth and development through interventions
in areas such as water and sanitation, health, education,
and skill development.

The programme operates in accordance with the

guidance and framework approved by the CSR Board
Committee. The implementation of projects is through
collaboration and partnerships with NGOs, Government
agencies, along with site-level teams (offices, campuses,
projects) to develop, implement, and oversee CSR
programmes. The aim is to improve the quality of
life, mitigate social inequalities, build self-sufficiency,
and help individuals in the identified communities, to
achieve their true potential.

Beneficiaries across
thematic areas

361,985
Water and Sanitation
763,608
Health
Drivers of CSR Interventions

Corporate CSR
CSR Team Coordinators
at campuses, area
offices and sites

331,425
Education
46,441
Skill Development L&T-eering
L&T's Health
Employee Volunteering
Centres Programme

L&T Public Charitable

Prayas Trust
Trust (LTPCT)
Run by female spouses
of employees and Non-profit entity
women employees within L&T

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Integrated Community
Launched in 2014-15
Development Programme
L&T's Integrated Community Development Pilot in five water-stressed locations in
Programme (ICDP) facilitates addressing Rajasthan, Maharashtra and Tamil Nadu,
water scarcity issues and is implemented benefiting 11,362 households spread
through a structured approach that includes over 22,958 hectares.
need assessment, community mobilisation,
infrastructure construction for water
conservation and soil preservation, sanitation Since 2018-19, implemented in 5 additional
initiatives, promotion of sustainable agricultural water-stressed locations in the same states
practices, and empowering residents to utilise benefitting 14,866 households spread
resources responsibly. Once the projects over 16,233 hectares.
are implemented, they are handed over to
community institutions to ensure the continuity
and sustainability of the initiatives.

Infrastructure for Water Conservation

Intervention involved community participation in
construction of various structures such as check
dams, anicuts, contour trenches, farm bunds and
farm ponds. The participatory approach is effective
in ensuring maintenance, ownership and long-term
sustainability of the interventions.

The ripple effect of water conservation structures:

Farm pond, Gevrai Marda Village, boosting the water table and beyond
Devgaon Cluster, Paithan Block,
Aurangabad District, Maharashtra Devgaon cluster faced severe water scarcity due
to low rainfall in 2018, leading to a decline in
water levels. The Government was providing
drinking water through tankers.
Village-wise Average Ground Water level - Devgaon
(in meters)
Measures such as building farm bunds, trenches,
ponds, borewell rechargers, nala deepening,
6.00
5.43
5.26

5.09
5.08

4.97

recharge shafts, and check dams, were

4.86

4.73
4.66
4.48

3.89

implemented across six villages, resulting in a

3.27

significant increase in the water table shown in

the graph. This enabled farmers to grow two
crops per year and some crops like wheat, gram,
sorghum, and vegetables, on a larger scale.
Dabhrul
Marda
Gevrai

Devgaon

Devgaon
Antarwali
Brahmangaon

Tanda
Khandi

March 2020 March 2023

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 Social and
Relationship Capital

Key Initiatives in FY 2022-23

Capacity-building and knowledge exchange

ICDP programmes have trained communities to use water efficiently and adopt low-cost organic agricultural methods,
such as minimal water-usage practices and crop demonstrations, and provided training on vermi-composting, organic
formulation, seed bank and horticulture development. Village committees have also made exposure visits to other
villages where water conservation programmes have been successful under the ICDP programme.

Conservation of endangered seed varieties

Sevantri Gram Panchayat organised a Seed
Exchange Fair attended by around 200 farmers
from 14 villages. Farmers set up stalls showcasing
diverse seeds of grains, vegetables and fruits. The
event emphasised the significance of preserving
local and climate resilient seed varieties

Promoting sustainable and climate resilient agriculture

Sustainable agricultural practices like crop rotation,

inter-cropping, mulching and organic farming promote
water conservation and soil health by improving fertility
and moisture retention, while reducing the use of
synthetic fertilisers and pesticides in the project area.

Drip and sprinkler irrigation

Drip and sprinkler irrigation, facilitated by community
participation and Government subsidies, reduced water
usage, soil erosion, and waterlogging. The initiative
benefited 38 marginalised farmers, enabled year-round
irrigation, increased horticulture, and allowed farmers
in Sevantri to cultivate gourd crops during the summer
months using water-efficient technologies, which were
later adopted by other farmers.

Horticulture development 25 cultivators in seven

The project adopts a holistic approach to villages from Sevantri
horticulture development, promoting efficient planted guava meadow
irrigation techniques, drought-tolerant crops, orchards in 2020-21,
soil and water conservation, and community- earning ¢ 137,500 from
led approaches for sustainable horticulture the first fruit production
development. This year, 24 farmers selected after 15 months, with an
by the Village Development Committee and expected annual income
trained by local Krishi Vigyan Kendra in the of around ¢ 2-2.5 lakh per
Devgaon cluster received support for horticulture farmer after the 5th year,
plantations with guava and custard apple. when the trees mature.

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Fruitful venture: The story of a successful Enhancing nutrition

guava-orchid plantation The project promoted and
Akbar Rasul, a farmer in Gevrai Marda village, was unable strengthened livelihoods by
to grow crops due to low rainfall in 2019. He participated providing good quality seeds
in the ICDP project activities, including farm bunding and of indigenous vegetables to
planting guava orchards. Proper guidance helped him in women, who were encouraged to
realising a production value of ¢ 16,500. Other farmers plant kitchen gardens for fresh,
in Devgaon also benefited from the project, resulting in nutritious, and organic food.
increased income and an improved economic situation in In FY 2022-23, 150 households
the village. benefited, and a total of 1,252
kitchen gardens have been set
up since 2019. Additionally, once
water was made available, various
Livestock livelihood New technique of agriculture: Less
agro-based livelihood options like
The ICDP projects addressed issues cost, more yield horticulture were made available
related to fodder scarcity and 728 farmers trained under the ICDP on to the community.
livestock diseases by providing cost-reducing farming methods and
fodder crop demonstrations, climate-resilient practices reported an
silage preparation, and livestock increase in yield and cost reduction of
vaccination camps. Additionally,
¢ 6,000/acre.
40 animal health camps were
held, leading to improved animal
health and overall livestock
management.

Kitchen gardens introduced at

18 Anganwadis to increase the
nutrition value of mid-day meals
for children. Vegetables from the
garden were used for preparing
nutritious meals for 888 children,
and parents were made aware of
increasing the nutritional value of
food consumed daily.

A zeal to adapt and grow

28 Animal Health Camps Pratap Singh from Thoriya ki Bhagal village, a regular participant in the
conducted in 14 villages of Farm Field School under the ICDP, earlier earned ¢ 5,000 by selling saplings
Sevantri, benefiting 905 and ¢ 19,000 by selling 950 kg of produce during the Rabi season. In the Zaid
animal owners and 1,286 season, he earned ¢ 25,400 by growing multiple crops and farming for the
animals, including cows, Kharif season with efficient techniques, and his total income from the two
bullocks, etc. The camps seasons is ¢ 49,400.
provided vaccinations,
anti-parasite medicines, Cropping intensity of maize and wheat production increased from
and mineral mixers. 4.4 q/ha to 5.7 q/ha in FY 2022-23 in Sevantri leading to a doubling of
families' income, with an additional annual income of ¢ 6,006 to ¢ 14,000

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Institution building and sustainability Empowering women through SHGs and capacity building
Community Groups, including VDCs with 50% ICDP programmes in Sevantri empower women farmers
women participation, Farmers’ Groups and and community members through Village Development
Self-Help Groups (SHGs), were formed. Monthly Committees and SHGs. Gender and financial literacy
meetings were held to plan soil and water campaigns, exposure visits, training in accountancy, sessions
conservation works, manage civil sites, cut grass for developing SHG management and leadership skills, were
from pastures, distribute the Rabi season seeds, organised for women. Women's participation led to positive
develop kitchen gardens, and manage civil changes in the community, including raising important issues
materials for toilet construction. and becoming independent in decision-making.

78 SHGs with 1,254 members saved ¢ 2.13 lakh

and disbursed group loans of ¢ 2.4 lakh for health,
education and livelihood in FY 2022-23.

Breaking Barriers: Empowering women led to the creation

of an all-women Board for Farmer Producer Organisation
at Nagzari
Active participation of women in SHGs at Nagzari
Cluster in Maharashtra led to the formation of a Farmer
Producer Company (FPO) named 'Shiv Swarajya'. The FPO
has 310 members, including 20% women, and a share
capital of ¢ 4.34 lakh, resulting in an all-women Board of
Directors. The FPO sold 20 quintals of Sweet Lime and
700 quintals of Soyabean in September 2022, earning
¢ 1.4 lakh profit. The FPO plans to establish its own
gradation and aggregation unit at the district level to
obtain better prices.

Enhancing quality of life Early child-care programme at Sevantri

In an ICDP, after achieving water sufficiency, In 2019, a baseline study found that 40%
the programme shifts its focus to other of the children under the age of five in the
developmental needs like education and health, project area suffered from malnutrition due
based on the community needs and assessment. to various reasons, including poor feeding
The aim is to improve the quality of life and help practices, poverty, lack of sanitation facilities,
the community achieve their aspirations. and inadequate healthcare. To tackle this
problem, nutritional food was provided to
217 children attending Balwadis by a trained
Balwadi Sanchalika.

Improved nutrition and healthcare

for 217 children.

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Saajhi Shiksha
The project was initiated in 2020 in 19 schools and six Anganwadi à Improving the learning
Centres (AWCs) in Bhim, Rajasthan, after water-sufficiency and sanitation environment led to a
interventions were implemented under the ICDP from 2014-2019. The significant increase in
project aims to enhance the foundational competencies of marginalised attendance at AWCs from
children aged 3-6 years and promote parental engagement in learning.
5-6 to 17-18 children per day.
Six schools together had
an average attendance rate
of 84%, with a total of 662
children attending schools.
à 2,225 children and 449 adults
(teachers and parents) have
directly benefitted from
Anganwadi and school-
based programme in 2023

Strengthening infrastructure
Creating a positive learning environment is crucial to achieving quality education, and the ’Saajhi Shiksha’ project
improved infrastructure in 19 schools and six AWCs in Bhim block, including smart classrooms, libraries, learning
materials, and parent/caregiver training, to support students in the learning process. Additionally, Learning and
Resource Centres (LRCs) were established to provide reading campaigns, learning camps, life skills training, and an
annual newsletter to support children aged 6-18 during school closures. Results from the assessment of children
supported at LRCs showing significant improvement in learning levels, reported as follows:

Impact of Education Initiatives (Across both graphs)

% Children, Language % Children, Maths

10 14 5 11
27
36 26
26 25 24

Level D (lowest)
30 31 40
31 31 35 Level C
Level B

39 34 27 Level A (highest)
34 30 20
7 5
FY 2020 FY 2021 FY 2022 FY 2020 FY 2021 FY 2022

Impact of Water Infrastructure Built After the initiation of the project in 2019,
Increase in Irrigated Area (Ha) communities in Devgaon, Nagzari and Sevantri
1,076

now have access to drinking water and sanitation

facilities, which has led to increased crop cultivation
950
950
950
944

903
914

and livestock fodder, resulting in improved household

incomes and quality of life. The project has also
654

638
612

strengthened community ownership and women's

606
461

participation in sustainability initiatives.

274
245
156
180
131
117

This year, water and sanitation interventions have

impacted the lives of 361,985 beneficiaries
Sewantri Devgaon Nagzari
Baseline Target FY 2020 FY 2021 FY 2022 FY 2023

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Coverage under ICDP in three locations- Devgaon, Nagzari and Sevantri

Households covered under ICDP 5,345
Area of land under the project area (hectares) 10,074
People covered 25,208
FY 2021-22 FY 2022-23
Water Availability
Water harvested (lakh litres) 15,101 19,887
Increase in water table level (metres - average) 8.88 9.24
Percentage of households with drinking water 77% 95%
Agriculture
No. of crop demonstrations 65 95
Additional area protected from direct run-off (hectares) 3,471 2,620
Increase in the area under cultivation / irrigation 53% 60%
Fallow land converted to agriculture land (hectares) 190 202
Area under horticulture (hectares) 557 619
Health and Nutrition
No. of kitchen gardens 539 240
No. of children in Balwadis supported 241** 237**
Livestock Livelihood
No. of veterinary camps 26 40
Pastureland area under protection (hectares) 19** 24**
Institution Building
Village Development Committees 15 31
No. of active SHGs 213 235
SHG Savings fund created for inter-loaning (lakh) ¢ 66 ¢ 125
No. of farmers groups formed 26* 26*
Capacity Building
No. of farmers attended farm-field training 408 2,104

Training conducted in
à Water budgeting
à Improved Kharif and Rabi cropping
à Horticulture WADI development
à Zero-budget natural farming
à Best practices on grains, pulse, vegetable nursery,
and fruit orchards.
à Seed treatment
à Formation and strengthening of
community organisation

* Data only from Devgaon and Nagzari

** Data only from Sevantri

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Education Activity-based Learning (ABL)

L&T's education programmes aim to promote social Activity-Based Learning classes using STEM models,
advancement and inclusive development in the Indian collaborative learning in small groups through hands-on
education system through various initiatives such as activities, experiments, and projects, along with science
providing infrastructure in under-resourced schools, activity kits and booklets, promote critical thinking,
establishing community learning centres, enhancing problem-solving, and innovation skills among students.
teachers' capacity, and promoting community These initiatives inspire future scientists and innovators,
monitoring systems. The STEM (Science, Technology, cultivate interest in science, and promote STEM
Engineering and Mathematics) Education programme education. Additionally, providing science Do-It-Yourself
aims to reduce the urban-rural gap in STEM education (DIY) kits to students foster enthusiasm for science and
by introducing Science and Mathematics to technology by enabling them to understand science
underprivileged students in Government and through practical, hands-on learning experiences. Atal
resource-poor schools to spark their interest in Tinkering Labs have been established in schools to foster
STEM fields. an interest in STEM among students and promote a
hands-on approach to learning about science
and technology.

STEM
Enginering Digitisation
Futures Coverage: 72 schools of schools
Project 178 schools, digitized at
35,539 students, various L&T
583 teachers locations

2,525 schools
13,638 and sanitation
beneficiaries blocks built for
Community Strengthening
43 schools
Learning School
Centres Infrastructure

From a middle bench to a world record – the

journey of Shobana through STEM programe
Shobana middle bench reserved student in 8th grade,
at Government Girls Higher Secondary School in Kovur,
showed little interest in academics but was passionate
about creating science projects. Enrollment in the
STEM Education Programme, gave her the opportunity
for project-based learning. With guidance from
project staff, Shobana developed 'Click and Clutch', an
invention to prevent starting a bike without a helmet.
She went on to participate in the Dr. APJ Abdul Kalam
Satellite Launch Vehicle Mission 2023 and will receive
an Asian and World Book of Records certificate for her
contribution. Shobika now aspires to be an astronaut.

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Community-based education model Turning a new leaf – Mahalakshmi's comeback

This year, a community-based education model was introduced from missed classes and forgotten concepts
to enhance children's learning levels through structured study Mahalakshmi, a fifth-grade student at Chennai
classes, led by trained volunteers. The initiative received support Middle School, Amman Koil, was a brilliant
from parents as it reduced screen-time and engaged children in student before her father's death due to
educational activities. The project reached 1,244 children and COVID-19. The pandemic and family situation
444 mothers, resulting in improved learning levels and positive made her miss many classes and forget
feedback from parents. concepts, causing her to struggle to keep up
with her classmates when she returned to
school. A staff member from the Community
Learning Centre helped Mahalakshmi, using
interesting teaching and learning materials to
recall lost skills and progress. Mahalakshmi's
reading and math skills improved. She
also learned discipline and language skills.
Mahalakshmi caught up with her studies
and regained her confidence. She feels more
motivated and ready to face challenges
with support and encouragement from the
community learning centre.

Health
L&T's health initiatives aim to
improve community health by
providing preventive, curative
and promotive healthcare
services to underprivileged
communities in remote areas
through L&T’s Community
Health Centres and Mobile
Health Units. The programme is
reaching out to people in urban
and rural areas across Gujarat,
Maharashtra and Tamil Nadu,
enabling last mile delivery.
L&T established its first Health
Centre in Kansabahal, Odisha
in 1963, and currently operates
10 Community Health Centres,
including 5 Kidney Dialysis
Clinics for the underprivileged Comprehensive approach to treating Autism Spectrum
in different cities. L&T's Health Disorder at Andheri Health Centre
Centre in Mumbai also provides
free infertility services and Psychologists provided interventions to Chetan Pangaria, a 4-year-old
operates a well-equipped child with mild Autistic Spectrum Disorder. Over 6 months, they offered
guidance clinic that offers family counselling, sensory integration, and physical movement
a unique range of services, activities, resulting in improvement in his verbal skills, self-care abilities,
including parent counselling. and daily habits. Chetan's family's involvement increased due to their
acceptance of his condition, thus helping him in his recovery.

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Health Units Anti-Retroviral Therapy (ART) centre

Mobile Medical Units play a crucial role in providing essential medical L&T's ART centre in Mumbai conducts
care to remote communities, improving their quality of life. L&T has awareness camps to educate people
20 Mobile Health Vans to provide free healthcare services to the about HIV/AIDS and provides medical
marginalised communities residing in and around Mumbai, Lonavala, support, counselling and testing services.
Talegaon, Surat, Vadodara, Coimbatore, Chennai and Kattupalli. They offer personalised treatment for
These vans conduct specialised health camps to increase awareness tuberculosis, including home visits and
about prevention and cure, and change in behaviour. They provide counselling sessions. L&T collaborated
eye care, diagnosis and treatment for anaemia, vaccinations, skin, with various Government schemes such as
geriatric, dental, paediatric and gynaecological care. Pradhan Mantri Jana Arogya Yojana and
Jan Aushadhi Yojana to provide monetary
aid and subsidised medicines and with
Mumbai District AIDS Control Society
and National AIDS Control Organisation
to control the spread of communicable
diseases like HIV/AIDS.

Cancer Care services

L&T aims to promote preventive
education and early diagnosis of cancer
by implementing interventions targeting
both men and women. Specialised checkup
camps for cancer were conducted this year
in Mumbai, Thane and Palghar districts and
identified 149 individuals with suspected
cancer. L&T supports a shelter programme
that provides temporary residential facilities
for caregivers and children from all over
India undergoing cancer treatment in
Mumbai hospitals.

Shelter programme catered to 87 children

Reviving health in remote tribal communities – and 174 caregivers in 2023
Mobile Medical Unit saves Mrs. Murugathal from
rare skin disease

A Mobile Medical Unit treated 55-year-old Mrs. Murugathal

living in a remote tribal settlement for a rare skin disease.
The team of doctors and nurses provided the necessary
medical care, helped her recover, provided awareness on
managing the condition, and readied her with measures to
prevent infections in future.

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Skill Development
L&T offers free vocational training courses and skill-building activities for
unemployed youth in rural and urban areas through its Construction Skills
Training Institutes (CSTIs). CSTIs offer training in trades with high demand in the
11,115 youth
completed various courses
industry, and new technology-based courses are introduced, such as Solar PV at nine CSTIs, with 63%
Technician skills, OFC & CCTV Installation and Maintenance, and digital training. employed this year
All trainees undergo periodic online assessments.

CSTI-trained skilled professionals secure From irregular income to financial

6th place at the 46th WorldSkills Competition independence – Rohit's journey
Naresh Dhravat and Amit Yadav, trained at with L&T CSTI-Panvel
L&T Construction Skills Training Institute, Rohit Dange, the sole bread-winner of
and secured 6th rank at the competition held his family, completed a Welding Training
in Salzburg, Austria in August 2022. Both Programme at L&T CSTI-Panvel and was
individuals, from humble backgrounds, were appointed as a Front Line Supervisor for
competing in the Concrete Construction QC welding at a construction project site.
Work segment. Their success is attributed to He feels that the programme provided him
the quality of their training and mentorship with the necessary skills and knowledge
provided by CSTI. to become financially independent and
progress in his career.

Multi Skilling Training Centre (MSTC) at Vizag: From ITI to MSTC: How vocational training transformed
This is a skill-building centre that addresses the gap Likitha's life: Despite facing financial limitations and
between vocational education and industry demands not being able to get admission to Dockyard Apprentice
by training individuals to meet the needs of the School, Visakhapatnam, Lithika pursued a diploma in a
marine industry. Their programme involves knowledge Electronics at Govt. Polytechnic College for assisting her
acquisition, skill development, and behaviour change father, an auto driver. Later, she joined L&T’s MSTC where
to increase the employability of fresh ITI technicians, she received extensive hands-on and classroom training in
providing them with basic and advanced skillset courses, welding, soldering, lugging, etc. which helped her secure
and connecting them with potential employers. a job as a trainee technician at a private company with a
salary of ¢ 10,000 per month.

Successfully trained 74 individuals, including 32

women in FY 2022-23

Skill Trainers Academy

This institute focuses on training trainers and assessors in
1,654 individuals trained from Maharashtra, the skilling ecosystem. Jointly developed with Singapore
Madhya Pradesh and Goa in skills needed Polytechnic and National Skill Development Corporation
for becoming electrician, machinist, welder, (NSDC), the curriculum emphasises on pedagogy skills.
wireman, and electronics mechanic in FY 2022-23 It has well-equipped classrooms, laboratories and
workshops, and offers a residential programme with
hostel facilities and 45 Master Trainers with extensive
domain knowledge and experience.

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Empowering women through skill-building

L&T's SARAL Samudaay project in Vadodara empowers women by offering skill-building interventions
in stitching, beauty, wellness, and life skills. The programme aims to promote their financial
independence and encourage them to start small businesses such as paper bowl making and poultry
farming. Additionally, it aims to create systemic changes by promoting entrepreneurship, digital and
financial awareness, and interaction with the community, market, and state bodies.

Linking CSR Interventions with Government Schemes and Programmes

Swachh Bharat Abhiyan National Health Mission

à  ,611 household toilets constructed since 2017-18

3 à National AIDS Control Programme (NACP) at
using local skills and materials L&T ART Centre, Andheri
à 855 school toilets constructed since 2015-16 à National TB Control Programme (RNTCP) at
à  7,000+ children trained in using toilets,
2 L&T TB Centre, Andheri
cleanliness and hygiene since 2015-16
à National Family Planning Programme:
à Community-based monitoring committees ensured Contraceptive services made available at
that these villages became open defecation free L&T Health Centres
à Integrated Child Development Scheme:
Improving quality of services at Anganwadi and
Swajal Yojana under Rural Development Ministry: capacity building of anganwadi workers
Watershed development programme under ICDP
à Mother and Child Health Programme:
National Rural Livelihood Mission (NRLM): Antenatal and post natal care and immunisation
SHG programme under ICDP services provided at the health centres are linked
to this programme
Pradhan Mantri Krishi Sinchayee Yojana:
Drip irrigation in ICDP à Ayushman Bharat Yojana: Patients visiting
L&T health centres are linked to this scheme
à Pradhan Mantri Jan Arogya Yojana: Patients
availing Dialysis services at L&T centres are linked
National Skill Development Mission to this scheme
à L&T CSTI and Skill Trainers Academy (STA) at à Pradhan Mantri Bhartiya Janaushadhi Pariyojana:
Madh, Mumbai Patients visiting L&T health centres are linked
à Sarva Shiksha Abhiyan (SSA) – Community pre-school to this scheme
programmes and Community Learning Centres – à Mahatma Jyotiba Phule Jan Arogya Yojana in
preventing dropouts and ensuring enrolment Maharashtra: Patients visiting L& T health centres
à STEM initiative of National Science and Technology are linked with this scheme
Communication Council and the Department of
à Widow Pension Yojana: HIV impacted widows at
Science and Technology, Government of India – L&T’s
ART Centre are linked with this scheme
STEM Education Programme – Engineering Futures
à Adhar Poshan Yojana: Provide nutritional support
to HIV affected patients at ART centre

L&T-eering: Employee Volunteering Initiative

During FY 2022-23, 6,313 L&T volunteers helped children readjust to school after the pandemic by organising creativity
camps, STEM-based workshops, and educational excursions. They engaged in activities such as art and sports-based
programmes for children from institutional homes and mentoring young science leaders to create STEM-based solutions
to everyday problems. Additionally, L&T volunteers participated in various other activities like fund-raising for children
undergoing palliative care, blood donation drives, health education for adolescents, supporting disadvantaged groups
through craft and NGO melas, participating in Daan Utsav, cleaning water bodies, planting trees, etc.

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RELATIONSHIP CAPITAL

The Company continues to strengthen its partnerships through engagement with diverse
stakeholder groups. Trustworthy and transparent communication, supported by disclosures
that are being continually improved, are the key levers to maintaining relationships with the
stakeholders. These include customers, shareholders, employees, business partners, Central
and State Governments, even foreign governments, and the local communities. For details on
how the Company is building and maintaining relationships, please refer to the ‘Stakeholder
Engagement’ section. The Company believes that the stakeholders provide us with insights that
help us review and progressively refine our strategies to create long-term value for all. There are
systems and processes in place for receiving and redressing grievances from various stakeholders.
For further information, please refer to Section A of BRSR.

Stakeholder consultation plays a vital role and is used to support the identification and
management of ESG initiatives. A few instances as to how the inputs received from stakeholders
on these topics were incorporated into policies and activities are mentioned in Principle 4 of the
BRSR section.

Government Sectors
The Company works
Water and Power Housing and Urban
closely with the Power Mobility Infra
Government schemes and programmes

Government of Irrigation Development

India as well as local
governments during à Jal Jeevan à Revamped à Bharatmala à Pradhan
its operations. The Mission Distribution à Mission Mantri Awas
Company launched its à Swachh Bharat Sector Electrification Yojana (PMAY)
‘Public Policy Advocacy’ Mission Scheme (RDSS) – IR à Smart Cities
policy in 2023 which à 500GW Non-
governs the public
à Atal Mission for à High Speed Rail
Rejuvenation fossil Energy
policy advocacy à Metro Rail
process. The Company and Urban à Green Hydrogen Systems
also participates in Transformation Mission Digital Infra
(AMRUT)
à PM Gatishakti
numerous Government
schemes through its à Pradhan Mantri
à Station
business operations and Krishi Sinchayee
Redevelopment à Bharatnet
CSR activities. For more Yojana (PMKSY) à National
information, refer to Infrastructure
Principle 7 of BRSR. Plan (NIP) Manufacturing
à Sagarmala
à Maritime India à Make in India
Vision 2030

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Customers Suppliers and Contractors

Customers are one of the key partners for growth. At L&T, a base of around 148,000 suppliers and vendors
Some of the Company’s major clients include State figure among the key stakeholders who contribute
and Central government departments, public sector directly to business growth and profitability. The
entities, private sector companies, ministries, and Company fosters responsible behaviour in its supply
local municipal bodies. One of the thrust areas of chain, in accordance with the highest standards of ethics
the Company is to ensure sustainable growth in and integrity, respect for the law, human and labour
the current business portfolio through profitable rights, and environmental stewardship. To achieve the
expansion and execution, scale up through business same, a Code of Conduct for suppliers which guides
model innovation and meet customer demands in an them to engage in ethical, responsible and legal business
agile manner through the newer businesses. practices in their operations. The core areas include the
promotion of environmental sustainability, commitment
to human rights, labour and society, and upholding
ethical integrity. Regular interactions and engagements
are conducted to ensure compliance, responsibility and
integrity. As at March 31, 2023, around 61,000 vendors
have signed the Code of Conduct (CoC) and 18,691 new
vendors have been onboarded.

To gauge the maturity of the supply chain, an survey

was initiated in 2023, starting with the top 25 suppliers
(comprising 35% of procurement value in the Construction
business) being assessed on parameters related to the
environment, human rights, CSR, health, safety and
governance. The Company also evaluated the top
50 suppliers on compliance with sustainable sourcing
standards such as ISO 14001, 45001, OHAS 18001,
SA 8000, etc.

Shareholders
The Company, as part of its Strategic Plan (Lakshya 2026),
has listed down the broad strategic objectives of the
Company to ensure value creation for its shareholders.
It regularly engages with the investor community for
providing updates on the Company’s affairs and its
performance. Feedback received from the investor
community is also communicated to the Management
for taking appropriate action.

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 Financial
Capital

FINANCIAL
CAPITAL
Financial capital acts as a strong pillar for the organisation,
which enables risk management against any exigency
and economic volatility. A strong balance sheet with low
gearing enables the Company in maintaining a healthy
balance between risk and growth. Further, diversification
of the Company across different businesses and enhanced
capability spectrum will help in achieving the Lakshya 2026
targets of providing sustainable returns, and in creating
value for all our stakeholders.

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Overview Discussion and Analysis Report Reports Statements

Key Highlights Strategy linkage

of FY 2022-23
SO-I SO-II SO-III SO-IV SO-V SE-1 SE-3

26% For details, refer to 'Business Model and Strategy' section

Order inflow growth

9% SDGs impacted
Revenue
growth

43%
Dividend payout
ratio

Material Topics
à Corporate Governance
à Business Ethics
à Climate Action
à Data Security, Privacy and Cybersecurity
à Social Engagement and Impact

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 Financial
Capital

L&T’s Standalone financials reflect the performance Key Highlights of FY 2022-23:

of Infrastructure Projects segment, Energy Projects
segment (comprising Hydrocarbon, Power and Green à Order Inflow achieved growth of 26%, basis robust
Energy), Hi-Tech Manufacturing segment (comprising growth of 37% in domestic orders.
Heavy Engineering and Defence Engineering), and à Revenue growth of 9% reflects improved execution
Others segment (including Realty, Construction & momentum of strong opening Order Book.
Mining Machinery, Rubber Processing Machinery, Smart
World & Communication, E-commerce/digital platforms
à Buoyancy in collections improved operational
cash flows.
and Data Centers).
à The Board of Directors has recommended a final
During the year, the Company entered into a Business dividend of ¢ 24 per equity share for the approval of
Transfer Agreement on January 12, 2023 to transfer shareholders, resulting in a dividend payout of 43%.
the carved-out business unit of Smart World and
Communication (SWC), forming part of the Others
segment, by way of a sale on a going concern basis
to L&T Technology Services Limited (LTTS), a listed
subsidiary. The transfer has been completed on
April 1, 2023.

A.M. Naik Heavy Engineering Complex, Hazira, Gujarat

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Economic value generated and distributed1 [¢ Bn]

Value generated Value distributed

Total income FY 2022-23 FY 2021-22

FY 2022-23 59.50
1.37
54.36
1.32
33.73

1,162.30
30.91
21.25 17.54

82.93 73.91

FY 2021-22

1,061.71 922.27 841.21

Manufacturing, construction Employee wages Interest

and operating expenses and benefits

Dividend Payments to Community

exchequer investments (CSR)

Description FY 2022-23 FY 2021-22

Economic value generated

Value generated - Value Total income 1,162.30 1,061.71

distributed = Value retained
Economic value distributed

FY 2022-23 Manufacturing, construction and

922.27 841.21
operating expenses

41.25 Employee wages and benefits 82.93 73.91

Payments to providers of capital

FY 2021-22 Interest 21.25 17.54

42.45 Dividend 33.73 30.91

Payments to exchequer 59.50 54.36

Community investments (CSR) 1.37 1.32

Economic value retained 41.25 42.45

1
excluding exceptional items

231
 Assurance
Statement

ASSURANCE STATEMENT
Independent Assurance Statement
Introduction
Independent Assurance Statement
DNV Business Assurance India Private Limited (‘DNV’) has been commissioned by the management of Larsen &
Introduction
Toubro Limited (‘L&T’ or the ‘Company’, (Corporate Identity Number: L99999MH1946PLC004768) to undertake an
DNV independent
Business assurance
AssuranceofIndia
L&T ’sPrivate
Business Responsibility
Limited (‘DNV’) and
hasSustainability Reporting by
been commissioned (‘BRSR’) disclosure “Principle
the management of Larsen &
6”, (Businesses
Toubro should
Limited (‘L&T’ or respect and make(Corporate
the ‘Company’, efforts to protect
Identityand restore L99999MH1946PLC004768)
Number: the environment) which is part to ofundertake
L&T’s an
reporting on
independent BRSR disclosures
assurance of L&T ’sincluded
Businessin its Integrated Annual
Responsibility Report, it shallReporting
and Sustainability also be published
(‘BRSR’)indisclosure
digital/online
“Principle
6”, format. The disclosures in this Report have been prepared based on the requirements of SEBI Circular no.
(Businesses should respect and make efforts to protect and restore the environment) which is part of L&T’s
SEBI/HO/CFD/CMD-2/P/CIR/2021/562 dated May 10, 2021, prescribing format of the BRSR and the guidance notes
reporting on BRSR disclosures included in its Integrated Annual Report, it shall also be published in digital/online
and the nine principles of the National Guidelines on Responsible Business Conduct, 2019 (‘NGRBC’) of the Ministry
format. The disclosures in this Report have been prepared based on the requirements of SEBI Circular no.
of Corporate Affairs, Government of India. The intended user of this assurance statement is the Management of L&T
SEBI/HO/CFD/CMD-2/P/CIR/2021/562
(‘the Management’) and its stakeholders. dated
OurMay 10, 2021,
assurance prescribing
engagement was format
plannedof thecarried
and BRSR outandduring
the guidance
January notes
and2023
the nine principles
– June of the the
2023 covering National Guidelines
Company’s on Responsible
sustainability Business
(Environmental) Conduct, 2019
performance during(‘NGRBC’)
1 April 2022of the Ministry
to 31
of Corporate
March 2023. Affairs, Government
We performed of India.
a limited level ofThe intended
assurance useronofour
based this assurance
assurance statement VeriSustain
methodology, is the Management
TM1
. of L&T
(‘the Management’) and its stakeholders. Our assurance engagement was planned and carried out during January
2023Responsibilities of thethe
– June 2023 covering Management of L&T and(Environmental)
Company’s sustainability of the Assurance Provider
performance during 1 April 2022 to 31
The 2023.
March Management has the sole
We performed responsibility
a limited level offor the preparation
assurance based onof the
ourReport and is
assurance responsible for
methodology, all information
VeriSustain TM1
.
disclosed in the Report as well as the processes for collecting, analyzing and reporting the information presented in
Responsibilities of the
the Report. L&T is also Management
responsible for ensuringof L&T
the and of and
maintenance theintegrity
Assurance Provider
of its website and any referenced
Thedisclosures
Management on environmental performance. for
has the sole responsibility In performing this assurance
the preparation work,and
of the Report DNV’s responsibility
is responsible for isalltoinformation
the
Management
disclosed in the of L&T; however,
Report as well asthis
thestatement
processesrepresents our independent
for collecting, opinion
analyzing and and is the
reporting intended to inform
information the
presented in
theoutcome
Report.ofL&T
the is
assurance to the stakeholders
also responsible of L&T.
for ensuring the maintenance and integrity of its website and any referenced
disclosures
We do noton environmental
provide any servicesperformance.
to L&T, whichIn
in performing this assurance
our opinion constitutes work,
a conflict DNV’s with
of interest responsibility is to the
this assurance
Management of L&T; however,
work. Our assurance engagementsthis are
statement
based onrepresents our independent
the assumption that the dataopinion and is intended
and information providedtobyinform
the the
outcome
Companyof the assurance
to us as part of to
ourthe stakeholders
review have beenof L&T. in good faith and are free from material misstatements.
provided

We do not provide any services to L&T, which in our opinion constitutes a conflict of interest with this assurance
Scope, Boundary and Limitations
work. Our assurance engagements are based on the assumption that the data and information provided by the
The reporting scope and boundary encompasses sustainability (Environmental) performance of L&T as brought out
Company to A:
in Section us General
as part Disclosures
of our review have
of the been provided in good faith and are free from material misstatements.
BRSR.

Scope, Boundary
The assurance and Limitations
engagement considers an uncertainty of ±5% based on materiality threshold for
Theestimation/measurement errors and
reporting scope and boundary omissions. We
encompasses did not engage
sustainability with any external
(Environmental) stakeholders
performance of as
L&Tpart
as of this
brought out
assurance
in Section A:engagement.
General Disclosures of the BRSR.

During the assurance process, we did not come across limitations to the scope of the agreed assurance
The assurance engagement considers an uncertainty of ±5% based on materiality threshold for
engagement.
estimation/measurement errors and omissions. We did not engage with any external stakeholders as part of this
assurance engagement.
Basis of our Opinion
During the verification, we adopted a risk-based approach, and a sample-based verification was carried out for a
During the
limited assurance
level process,
of verification we did
as per DNV not come
VeriSustain across
and as agreedlimitations
with L&T. to the scope of the agreed assurance
engagement.
We carried out the following activities:
 Reviewed the approach to stakeholder engagement and materiality determination process and its outcomes
Basis of as brought
our out in the Report.
Opinion
 Conducted interviews with selected representatives responsible for management of environmental issues
During the verification, we adopted a risk-based approach, and a sample-based verification was carried out for a
and carried out reviews of selected evidence to support topics and claims disclosed in the Report. We were
limited level of verification as per DNV VeriSustain and as agreed with L&T.
We carriedfree to choose
out the followinginterviewees
activities: and interviewed those with overall responsibility to deliver L&T’s overall
sustainability objectives.
 Reviewed the approach to stakeholder engagement and materiality determination process and its outcomes
 Carried out Onsite and off-site verification of sustainability (Environmental) performance data and sample
as brought out in the Report.
evidence related to the sampled sites besides corporate office of L&T to review the processes and systems
 Conducted interviews with selected representatives responsible for management of environmental issues
for aggregating site-level sustainability (environment) information
 and carried the
Reviewed outprocess
reviewsofofreporting
selectedonevidence to support including
BRSR requirements topics and claims
Section A: disclosed in the Report.
General Disclosures, We were
Section
free to choose interviewees and interviewed those with overall responsibility to
B: Management and Process Disclosures, and Section C: Principle “6” Performance Disclosures. deliver L&T’s overall
sustainability objectives.
 Carried out Onsite and off-site verification of sustainability (Environmental) performance data and sample
1
evidence related to the sampled sites besides corporate office of L&T to review the processes and systems
The VeriSustain protocol is based on the principles of various assurance standards including International Standard on Assurance
for aggregating
Engagements site-level
3000 (ISAE 3000) Revised sustainability (environment)
(Assurance Engagements information
other than Audits or Reviews of Historical Financial Information) and the
GRI Principles for Defining Report Content and Quality, international best practices in verification and our professional experience; and is
 Reviewed the process of reporting on BRSR requirements including Section A: General Disclosures, Section
available on request from www.dnv.com
B: Management and Process Disclosures, and Section C: Principle “6” Performance Disclosures.
Project No: PRJN-499213-2023-AST-IND Page 1 of 3

1
The VeriSustain protocol is based on the principles of various assurance standards including International Standard
Integrated on Assurance
Annual Report 2022-23
232 Engagements 3000 (ISAE 3000) Revised (Assurance Engagements other than Audits or Reviews of Historical Financial Information) and the
GRI Principles for Defining Report Content and Quality, international best practices in verification and our professional experience; and is
available on request from www.dnv.com
 Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements
 Verification of the data consolidation of reported performance disclosures in context to the Principle of
Completeness as per VeriSustain for a limited level of verification.
 An independent assessment of the reports non-financial information against the requirements of BRSR
“Principle 6” and the guidance notes

Opinion and Observations

Based on the verification undertaken, nothing has come to our attention to suggest that the Report together with
 Verification of the data consolidation of reported performance disclosures in context to the Principle of
referenced information does not adhere to the requirements of BRSR “Principle 6” including the General Disclosures,
Completeness as per VeriSustain for a limited level of verification.
Management and Process Disclosures.
 An independent assessment of the reports non-financial information against the requirements of BRSR
“Principle 6” and the guidance notes
Without affecting our assurance opinion, we provide the following observations against the principles of VeriSustain:

Opinion and Observations

Materiality
Based
The on the
process of verification
determiningundertaken, nothing
the issues that hasrelevant
is most come totoouran attention
organizationto suggest that the Report together with
and its stakeholders.
referenced
The information
Report brings out thedoes not adhere
broad to with
range of the requirements
the rationale of
forBRSR
issues“Principle
which the6” Company
including the
hasGeneral Disclosures,
identified as being
Management
material to itsand Process
business Disclosures.
which are mapped as risks and opportunities, along with the rationale for considering the
issue as being material. Key environmental risks, stakeholder opinions and concerns, and peer issues were taken
Without
into affecting
account while our assurance
arriving opinion,
at overall we
topics provide
which the
were following
further observations
prioritized against
to arrive at thethe principles
significant of VeriSustain:
material issues.
Nothing has come to our attention to suggest that the Report does not meet the requirements related to
Materiality
the Principle of Materiality.
The process of determining the issues that is most relevant to an organization and its stakeholders.
The Report brings out the broad range of with the rationale for issues which the Company has identified as being
Stakeholder Inclusiveness
material to its business which are mapped as risks and opportunities, along with the rationale for considering the
The participation of stakeholders in developing and achieving an accountable and strategic response to
issue as being material. Key environmental risks, stakeholder opinions and concerns, and peer issues were taken
Sustainability.
into account while arriving at overall topics which were further prioritized to arrive at the significant material issues.
The Report brings out the formal and informal channels in place to engage with its various identified stakeholders,
Nothing has come to our attention to suggest that the Report does not meet the requirements related to
including descriptions of the methods, frequencies and basis of engagement with each stakeholder group, as well as
the Principle
opinions of Materiality.
and concerns arising out of the engagement processes during the reporting period. Inputs from the
stakeholder engagement are used towards identifying key environmental topics and refining the Company’s policies
Stakeholder
and strategies.Inclusiveness
Nothing has come of
The participation to our attentionin
stakeholders to developing
suggest that
andtheachieving
Report does
an not meet theand
accountable requirements related to
strategic response to
the Principle of Stakeholder Inclusiveness.
Sustainability.
The Report brings out the formal and informal channels in place to engage with its various identified stakeholders,
including descriptions of the methods, frequencies and basis of engagement with each stakeholder group, as well as
Responsiveness
opinions
The extentand concerns
to which arising out responds
an organization of the engagement processes
to stakeholder issues. during the reporting period. Inputs from the
stakeholder
The engagement
Report brings out theare used towards
approaches identifying
adopted by thekey environmental
Company topics
to adapt andmitigate
and/or refining the Company’s
impacts relatedpolicies
to its
and strategies.
identified material issues, as well as responses to key stakeholder concerns. The disclosures bring out the
Nothing has come to our attention to suggest that the Report does not meet the requirements related to
descriptions of structures, policies and processes implemented by L&T towards adopting and reviewing the NGRBC
the Principle of Stakeholder Inclusiveness.
Principle 6, as well as performance data, and processes for governance.
Nothing has come to our attention to believe that the Report does not meet the requirements related to
Responsiveness
the Principle of Responsiveness.
The extent to which an organization responds to stakeholder issues.
The Report brings out the approaches adopted by the Company to adapt and/or mitigate impacts related to its
Reliability
identified material issues, as well as responses to key stakeholder concerns. The disclosures bring out the
The accuracy and comparability of information presented in the report, as well as the quality of underlying data
descriptions of structures, policies and processes implemented by L&T towards adopting and reviewing the NGRBC
management systems.
Principle 6, as well as performance data, and processes for governance.
The Report brings out the processes that L&T has established towards capturing and reporting its sustainability
Nothing has come to our attention to believe that the Report does not meet the requirements related to
performance related to Principle “6” of NGRBC. The majority of the data and information verified through our
the Principle of Responsiveness.
remote assessments with the Company’s management teams and data owners at the sites, sampled by us as part
of our assurance engagement were found to be fairly accurate and reliable. Some of the data inaccuracies identified
Reliability
during the verification process were found to be attributable to transcription, interpretation and aggregation errors.
The accuracy and comparability of information presented in the report, as well as the quality of underlying data
These data inaccuracies have been communicated for correction and the related disclosures were reviewed for
management systems.
correctness.
The Report brings out the processes that L&T has established towards capturing and reporting its sustainability
Nothing has come to our attention to believe that the Report does not meet the principle of Reliability.
performance related to Principle “6” of NGRBC. The majority of the data and information verified through our
remote assessments with the Company’s management teams and data owners at the sites, sampled by us as part
of our assurance engagement were found to be fairly accurate and reliable. Some of the data inaccuracies identified
during the verification process were found to be attributable to transcription, interpretation and aggregation errors.
These data inaccuracies have been communicated for correction and the related disclosures were reviewed for
correctness.
Nothing has come to our attention to believe that the Report does not meet the principle of Reliability.

Project No: PRJN-499213-2023-AST-IND Page 2 of 3

233
 Assurance
Statement

Completeness
How much of all the information that has been identified as material to the organisation and its stakeholders is
reported?
The Report brings out the Company’s performance during FY2023 related to environmental aspects of the BRSR and
covering the operations of L&T, covering the performance related to NGRBC Principle “6”. L&T may further
strengthen its processes towards capturing and reporting information and data related to Essential and certain
Leadership Indicators of Principle-wise Performance Disclosures in future reporting periods.
Nothing has come to our attention to suggest that the Report does not meet the Principle of
Completeness with respect to scope, boundary and time.

Neutrality
The extent to which a report provides a balanced account of an organization’s performance, delivered in a neutral
tone.
The Report brings out L&T’s sustainability (Environmental) performance during the reporting period in a neutral
tone in terms of content along with descriptions of key risks and opportunities during the reporting period.
Nothing has come to our attention to suggest that the Report does not meet the requirements related to
the Principle of Neutrality.

Statement of Competence and Independence

DNV applies its own management standards and compliance policies for quality control, in accordance with ISO IEC
17021:2015 - Conformity Assessment Requirements for bodies providing audit and certification of management
systems, and accordingly maintains a comprehensive system of quality control including documented policies and
procedures regarding compliance with ethical requirements, professional standards and applicable legal and
regulatory requirements.

We have complied with the DNV Code of Conduct2 during the verification engagement and maintain independence
where required by relevant ethical requirements as detailed in DNV VeriSustain. This engagement work was carried
out by an independent team of sustainability assurance professionals. DNV was not involved in the preparation of
any statements or data except for this Assurance Statement, the GHG Verification Statement and Management
Report. DNV maintains complete impartiality toward stakeholders interviewed during the verification process. We
did not provide any services to L&T in the scope of assurance during FY2023 that could compromise the
independence or impartiality of our work.

For DNV Business Assurance India Private Limited

Karthik Digitally signed Digitally signed

Kakarapart Digitally signed
by Karthik Sharma, byAnjana
Sharma, by Kakaraparthi,
Ramaswa Ramaswamy hi, Venkata Venkata Raman
my
Date: 2023.06.27 Anjana Date: 2023.06.27
13:23:18 +05'30' Raman
Date: 2023.06.27
13:09:58 +05'30' 13:35:30 +05'30'
Karthik Ramaswamy Anjana Sharma Venkata Raman Kakaraparthi
Lead Verifier, Head – Regional Assurance Reviewer,
Sustainability Services, Sustainability Operations, Sustainability Services
DNV Business Assurance DNV Business Assurance DNV Business Assurance
India Private Limited, India India Private Limited, India India Private Limited, India

27th June 2023, Mumbai, India.

-------------------------------------------------------------------------------------------------------------
DNV Business Assurance India Private Limited is part of DNV – Business Assurance, a global provider of certification, verification,
assessment and training services, helping customers to build sustainable business performance. www.dnv.com

2
The DNV Code of Conduct is available on request from www.dnv.com (https://www.dnv.com/about/in-brief/corporate-governance.html)

Project No: PRJN-499213-2023-AST-IND Page 3 of 3

234 Integrated Annual Report 2022-23

 Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Data Verification Statement

VERIFICATION STATEMENT
Data Verification Statement
Introduction
Data Verification Statement
DNV Business Assurance India Private Limited (‘DNV’) has been commissioned by the
Introduction
management of L&T Limited (‘L&T’ or the ‘Company’, Corporate Identity Number:
DNV Business Assurance India Private Limited (‘DNV’) has been commissioned by the
L99999MH1946PLC004768)
Introduction to carry out an independent customised verification of selected
management of L&T Limited (‘L&T’ or the ‘Company’, Corporate Identity Number:
environmental performance
DNV Business Assurance India dataPrivate
of Energy Limited consumed;
(‘DNV’) has Indirect
been (Renewable
commissioned andbyNon-
the
L99999MH1946PLC004768) to carry out an independent customised verification of selected
renewable),
management of L&T Limited (‘L&T’ or the ‘Company’, Corporate Identity NO2,
Direct (Non-renewable), Emissions; GHG - Scope 1 & Scope 2, Scope 3, SO2
Number:
environmental performance data of Energy consumed; Indirect (Renewable and Non-
and Particulate matter, Water
L99999MH1946PLC004768) to withdrawal
carry out an andindependent
consumptioncustomised
and Wasteverification
generated (Hazardous
of selected
renewable), Direct (Non-renewable), Emissions; GHG - Scope 1 & Scope 2, Scope 3, NO2, SO2
and
environmental performance data of Energy consumed; Indirect (Renewable and These
Non-hazardous) for disclosure in its Integrated Annual Report of FY 2022-23. Non-
and Particulate matter, Water withdrawal and consumption and Waste generated (Hazardous
performance data sets
renewable), Direct have been prepared
(Non-renewable), Emissions;by L&T.
GHG - Scope 1 & Scope 2, Scope 3, NO2, SO2
and Non-hazardous) for disclosure in its Integrated Annual Report of FY 2022-23. These
and Particulate matter, Water withdrawal and consumption and Waste generated (Hazardous
performance data sets have been prepared by L&T.
Our
and engagement
Non-hazardous) has been carried out
for disclosure in based on DNV’s Annual
its Integrated assurance methodology
Report VeriSustain
of FY 2022-23. These,
TM1

(customised verification
performance data sets have procedure) as mutually
been prepared by L&T.agreed with L&T for the performance data
Our engagement has been carried out based on DNV’s assurance methodology VeriSustainTM1,
detailed in Annexure - 1 and provides a limited level of verification while applying a ±5%
(customised verification procedure) as mutually agreed with L&T for the performance TM1 data
materiality
Our threshold
engagement has for errors
been and out
carried omissions.
based on DNV’s assurance methodology VeriSustain ,
detailed in Annexure - 1 and provides a limited level of verification while applying a ±5%
(customised verification procedure) as mutually agreed with L&T for the performance data
materiality threshold for errors and omissions.
The intended
detailed user of -this
in Annexure 1 andVerification
provides Statement
a limited levelis theofmanagement of the
verification while Company
applying (the
a ±5%
‘Management’).
materiality thresholdThe forteam is responsible
errors and omissions. for all data and information provided to us for
The intended user of this Verification Statement is the management of the Company (the
verification, as well as the processes for collecting, analysing and reporting the sustainability
‘Management’). The team is responsible for all data and information provided to us for
performance
The intendeddata userasofpart
thisof Verification
its Integrated Annual Report.
Statement is the Our verificationof
management engagement
the Company is based
(the
verification, as well as the processes for collecting, analysing and reporting the sustainability
on
‘Management’). The team is responsible for all data and information provided to us free
the assumption that the data and information provided to us is complete and true and for
performance data as part of its Integrated Annual Report. Our verification engagement is based
from material
verification, as misstatement. We expressly
well as the processes disclaimanalysing
for collecting, any liability
and or co-responsibility
reporting for any
the sustainability
on the assumption that the data and information provided to us is complete and true and free
decision
performancea person
data or
as entity
part ofwould make based
its Integrated Annualon this verification
Report. statement.
Our verification This exercise
engagement was
is based
from material misstatement. We expressly disclaim any liability or co-responsibility for any
carried out during January 2023 – June 2023 by a team of sustainability
on the assumption that the data and information provided to us is complete and true and free professionals of DNV.
decision a person or entity would make based on this verification statement. This exercise was
from material misstatement. We expressly disclaim any liability or co-responsibility for any
carried out during January 2023 – June 2023 by a team of sustainability professionals of DNV.
Scope,
decision aBoundary
person or entityandwouldLimitations
make based ofonVerification
this verification statement. This exercise was
The scope of the verification includes the
carried out during January 2023 – June 2023 by a teamidentified environmental performance
of sustainability data (detailed
professionals of DNV.in
Scope, -Boundary
Annexure and Limitations
1) for the selected boundary of L&T of Verification
and its twelve (12) Independent Companies
The scope of the verification includes the identified environmental performance data (detailed in
(‘ICs’)
Scope, in India for the period Limitations
Boundary 1st April 2022 toof 31Verification
st
March 2023, in accordance with the scope of
Annexure - 1) for theand selected boundary of L&T and its twelve (12) Independent Companies
workscope
The agreed upon
of the with the management
verification of the Company
includes the identified including
environmental the sampling
performance plan
data to arrive
(detailed in
(‘ICs’) in India for the period 1st April 2022 to 31st March 2023, in accordance with the scope of
at our conclusion.
Annexure - 1) for the selected boundary of L&T and its twelve (12) Independent Companies
work agreed upon with the management of the Company including the sampling plan to arrive
(‘ICs’) in India for the period 1st April 2022 to 31st March 2023, in accordance with the scope of
at our conclusion.
During the verification
work agreed upon with process, we did not
the management of come across limitations
the Company including theto the scope of
sampling planthetoagreed
arrive
verification engagement. This verification engagement did not involve any engagement with
at our conclusion.
During the verification process, we did not come across limitations to the scope of the agreed
external stakeholders. The verification was conducted based on desk reviews, site visits to
verification engagement. This verification engagement did not involve any engagement with
sample
During theICs,verification
interactions with data
process, we owners
did not and come other publicly
across available
limitations data/information
to the made
scope of the agreed
external stakeholders. The verification was conducted based on desk reviews, site visits to
available to engagement.
verification us. This verification engagement did not involve any engagement with
sample ICs, interactions with data owners and other publicly available data/information made
external stakeholders. The verification was conducted based on desk reviews, site visits to
available to us.
sample ICs, interactions with data owners and other publicly available data/information made
available to us.

1 The VeriSustain protocol is based on the principles of various assurance standards including International Standard on Assurance

Engagements 3000 (ISAE 3000) Revised (Assurance Engagements other than Audits or Reviews of Historical Financial Information) and
the GRI Principles for Defining Report Content and Quality, international best practices in verification and our professional experience;
1 The VeriSustain protocol is based on the principles of various assurance standards including International Standard on Assurance
and is available on request from www.dnv.com
Engagements 3000 (ISAE 3000) Revised (Assurance Engagements other than Audits or Reviews of Historical Financial Information) and
the GRI Principles for Defining Report Content and Quality, international best practices in verification and our professional experience;
1 The
Project No.: PRJN-491401
VeriSustain
and is available
protocol is based on the principles of various assurance standards including International Standard on Assurance
on request from www.dnv.com
Engagements 3000 (ISAE 3000) Revised (Assurance Engagements other than Audits or Reviews of Historical Financial Information)Page 1 ofand
4
the GRI Principles for Defining Report Content and Quality, international best practices in verification and our professional experience;
Project
and No.: on
is available PRJN-491401
request from www.dnv.com
Page 1 of 4
235
Project No.: PRJN-491401
Page 1 of 4
 Assurance
Statement

Verification Methodology
During the verification, we adopted a risk-based approach, and a sample-based verification was
carried out for a Methodology
Verification limited level of verification as per DNV VeriSustain and as agreed with L&T. We
During the the
undertook verification,
followingwe adopted a risk-based approach, and a sample-based verification was
activities:
carried out for a limited level
 Review of the data management of verification as per DNV
processes that VeriSustain
L&T has in placeand astoagreed
report with L&T. We
the identified
undertook the following
environmental activities:
data. We examined and reviewed supporting evidence such as supporting
Review of the
 documents, data management
secondary processes
data and other that L&T
information has available
made in place to byreport
L&T totheus.identified
 Carried out online and on-site verification for sample ICs of the Company - (i)supporting
environmental data. We examined and reviewed supporting evidence such as Buildings
documents,
and Factories, secondary data and other
(ii) Transportation information
Infrastructure, made
(iii) Heavyavailable by L&T to us.
Civil Infrastructure (iv) Power
Carried out online
 Transmission and and on-site verification
Distribution, (v) Waterfor sample
and ICs of
Effluent the Company
Treatment, (vi) -Minerals
(i) Buildingsand
and Factories,
Metals, (ii) Transportation
(vii) Energy Hydrocarbon, Infrastructure,
(viii) Energy (iii)Power,
Heavy Civil
(ix) Infrastructure
Heavy Engineering,(iv) Power(x)
Transmission and Distribution, (v) Water and Effluent Treatment,
Defence, (xi) Smart World & Communication, (xii) Realty, and offices (A M Naik Tower, (vi) Minerals and
Metals, (vii)
Mumbai; L&T Energy
Head office,Hydrocarbon,
Chennai;(viii)L&T Energy Power, (ix)
House, Mumbai; Heavy Engineering,
Knowledge city, Vadodara, (x)
Defence, Development
Learning (xi) Smart World & Communication,
Academy, Lonavala and(xii) Realty,marketing
Domestic and officesnetwork)
(A M Naik to Tower,
review
Mumbai;
the L&T and
processes Head office, for
systems Chennai;
preparing L&T
siteHouse, Mumbai; Knowledge
level sustainability city, Vadodara,
data and implementation
Learning
of Development
sustainability strategy. Academy,
DNV was Lonavala and Domestic
free to choose sites formarketing
conducting network) to review
our sustainability
the processesdata
performance and verification.
systems for preparing site level sustainability data and implementation
of sustainability
 Review of systems strategy. DNV was free
and procedures fortodata
choose sites for
collection andconducting our sustainability
aggregation, that is, the
performance data verification.
calculation methodology, assumptions of the selected consolidated environmental
Review of systems
 performance and procedures
data (Annexure-1) preparedfor data
for thecollection
Company’s andinternal
aggregation,
reportingthat is, the
purposes
calculation
and methodology,
to be included assumptions
in its Integrated Annual ofReport.
the selected consolidated environmental
performance
 Assessed the data (Annexure-1)
robustness prepared
of the data for the Company’s
management systems, internal reporting
data accuracy, purposes
information
and to
flow andbe included
controls in foritsthe
Integrated
reportedAnnual Report. performance data, as well as the
sustainability
Assessed the
 processes robustness
for data of the data
consolidation management
in context systems,
to the principle data accuracy,asinformation
of Completeness per DNV’s
flow and controls for the reported sustainability performance data, as well as the
VeriSustain.
processes forofdata
 Verification consolidation
sample data to in context
check to the principle
accuracy of Completeness
and reliability as per
for a limited DNV’s
level of
VeriSustain.through interaction with data owners.
verification
 Verification of sample data to check accuracy and reliability for a limited level of
Conclusions
verification through interaction with data owners.
In our opinion, on the basis of limited level of verification undertaken and mutually agreed scope
Conclusions
of work, nothing has come to our attention that would cause us not to believe that the data
In our opinion,
verified as listed oninthe basis of -limited
Annexure level
1, is not of verification
a reliable undertaken
and accurate and mutually
representation agreed
of L&T’s scope
selected
of work, nothing
performance data.has Somecome to our
of the dataattention
inaccuraciesthat identified
would cause us the
during not verification
to believe that
processthe were
data
verified as listed in Annexure - 1, is not a reliable and accurate representation
found to be attributable to transcription, interpretation and aggregation errors, and the errors of L&T’s selected
performance
have data. Some of
been communicated forthe data inaccuracies
correction identified during the verification process were
and corrected.
found to be attributable to transcription, interpretation and aggregation errors, and the errors
have been communicated for correction and corrected.

Project No.: PRJN-491401 Page 2 of 4

Project No.: PRJN-491401 Integrated AnnualPage

Report 2022-23
2 of 4
236
 Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Our Competence and Independence

DNV applies its own management standards and compliance policies for quality control, in
Our Competence
accordance with ISO and Independence
IEC 17021:2015 - Conformity Assessment Requirements for bodies
DNV applies its own management standards
providing audit and certification of management and compliance
systems, policies for qualitymaintains
and accordingly control, in
a
accordance withsystem
comprehensive ISO IEC of 17021:2015
quality control- Conformity Assessment Requirements
including documented for bodies
policies and procedures
providing compliance
regarding audit and withcertification of management
ethical requirements, systems,
professional and accordingly
standards maintains
and applicable a
legal and
comprehensive
regulatory system of quality control including documented policies and procedures
requirements.
regarding compliance with ethical requirements, professional standards and applicable legal and
regulatory
We requirements.
have complied with the DNV Code of Conduct2 during the assurance engagement and
maintain independence where required by relevant ethical requirements. This engagement work
We have
was carriedcomplied
out by anwith the DNV team
independent Code ofof sustainability
Conduct2 during the assurance
assurance engagement
professionals. We were and
not
maintain in
involved independence where
the preparation required
of any by relevant
statements ethical
or data exceptrequirements. This engagement
for this Assurance Statement. work
DNV
was carriedcomplete
maintains out by an independent
impartiality teamstakeholders
toward of sustainability assurance
interviewed professionals.
during We were
the assurance not
process.
involved
We in the
did not preparation
provide of any to
any services statements
L&T and itsor data except for
subsidiaries in this Assurance
the scope Statement.
of assurance forDNV
the
maintains complete impartiality toward stakeholders interviewed during
reporting period that could compromise the independence or impartiality of our work. the assurance process.
We did not provide any services to L&T and its subsidiaries in the scope of assurance for the
For DNV Business
reporting Assurance
period that India Private the
could compromise Limited
independence or impartiality of our work.

Karthik Digitally signed

For DNV Business Assurance India Private Limited Digitally signed Kakarapart Digitally signed

Ramasw
by Karthik
Sharma byAnjana Sharma, by Kakaraparthi
Karthik Date: Ramaswamy
Digitally signed
2023.06.16 , Anjana Date:
Digitally signed hi Venkata Venkata
Kakarapart Digitally Raman
signed

amy
Ramasw 20:12:59
by Karthik
Sharma 2023.06.17
by Sharma,
Raman
Date: 2023.06.17
by Kakaraparthi
Ramaswamy +05'30' 10:09:30
Anjana +05'30' hi Venkata 11:04:12 +05'30'
Venkata Raman
Date: 2023.06.16 , Anjana Date: 2023.06.17
Karthik Ramaswamy Date: 2023.06.17
amy Anjana Sharma
Lead Verifier, 20:12:59 +05'30' Head – Regional10:09:30 +05'30' Raman
Venkata Raman Kakaraparthi
11:04:12 +05'30'
Assurance Reviewer,
Sustainability Services,
Karthik Ramaswamy Sustainability Operations,
Anjana Sharma Sustainability
Venkata Raman Services
Kakaraparthi
DNV
Lead Verifier, Assurance
Business DNV Business Assurance
Head – Regional DNV Business Assurance
Assurance Reviewer,
India Private Limited,
Sustainability India
Services, India Private Limited, India
Sustainability Operations, India Private Limited,
Sustainability ServicesIndia
DNV Business Assurance DNV Business Assurance DNV Business Assurance
India
16 JunPrivate Limited, India
2023, Mumbai, India India Private Limited, India India Private Limited, India
------------------------------------------------------------------------------------------------
DNV Business Assurance India Private Limited is part of DNV – Business Assurance, a global provider of certification, verification,
16 Jun 2023, Mumbai, India
assessment and training services, helping customers to build sustainable business performance. www.dnv.com
------------------------------------------------------------------------------------------------
DNV Business Assurance India Private Limited is part of DNV – Business Assurance, a global provider of certification, verification,
assessment and training services, helping customers to build sustainable business performance. www.dnv.com

2
The DNV Code of Conduct is available on request from www.dnv.com (https://www.dnv.com/about/in-brief/corporate-governance.html)

Project No.: PRJN-491401 Page 3 of 4

2
The DNV Code of Conduct is available on request from www.dnv.com (https://www.dnv.com/about/in-brief/corporate-governance.html)

Project No.: PRJN-491401 Page 3 of 4 237

 Assurance
Statement

Annexure 1: Verified Performance Data - 2022 – 23

Energy (Renewable)
Indirect Annexure
energy consumption 1: Verified Performance Data GJ - 2022 –1,29,410 23
Energy (Non Renewable)
Energy (Renewable)
Direct energy consumption(1) GJ 9,395,966
Indirect energy consumption GJ 1,29,410
Indirect energy
Energy (Non Renewable) consumption GJ 1,217,321
Greenhouse
Direct energy Gases consumption(1) GJ 9,395,966
CO₂e - Scope
Indirect energy 1 consumption T
GJ 693,115
1,217,321
CO₂e - Scope 2 T 273,719
Greenhouse Gases
CO₂e - Scope 3(2) T 7,128,687
CO₂e - Scope 1 T 693,115
N₂O
CO₂e - Scope 2 Mg T / M3 12-44
273,719
SO2 Mg / M3 3-22
CO₂e - Scope 3 (2)
T 7,128,687
Particulate Matter Mg / M3 10-61
N₂O Mg / M3 12-44
Water
SO2 Mg / M3 3-22
Water Withdrawal – Total Kl 11,176,696
Particulate Matter Mg / M3 10-61
Water Withdrawal – From Surface water Kl 2,379,231
Water
Water Withdrawal – From Ground water Kl 2,991,910
Water Withdrawal – Total Kl 11,176,696
Water Withdrawal – From Third party Kl 1,457,540
Water Withdrawal – From Surface water Kl 2,379,231
Water Withdrawal – From other sources Kl 4,348,015
Water Withdrawal – From Ground water Kl 2,991,910
Water (fresh) consumed - Total Kl 11,038,686
Water Withdrawal – From Third party Kl 1,457,540
Waste
Water Withdrawal – From other sources Kl 4,348,015
Hazardous waste – Generated T 4,239
Water (fresh) consumed - Total Kl 11,038,686
Non-hazardous waste – Generated T 322,636
Waste
Hazardous waste
Note 1: Direct energy: – Generated
Consumption is reported based on amount of fuel issued T 4,239
Note 2: Scope 3 reporting categories; Purchased goods, Upstream supply, Waste generation in operations, Business travel and employee commute
Non-hazardous waste – Generated T 322,636
Note 1: Direct energy: Consumption is reported based on amount of fuel issued
Note 2: Scope 3 reporting categories; Purchased goods, Upstream supply, Waste generation in operations, Business travel and employee commute

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Integrated Annual Report 2022-23

238 Project No.: PRJN-491401 Page 4 of 4
 Corporate Management Integrated Statutory United Nations
Financial
Overview Discussion and Analysis Report Reports GlobalStatements
Compact

UNITED NATIONS GLOBAL COMPACT

COMMUNICATION ON PROGRESS

Principle Category Description Page

Businesses should support and respect the protection 151, 153, 158, 161, 197, 227, BRSR Principle 5
1 Human Rights
of internationally proclaimed human rights. (265-268)
Businesses should make sure that they are not 151, 153, 158, 161, 197, 227, BRSR Principle 5
2 Human Rights
complicit in human rights abuses. (265-268)
Businesses should uphold the freedom of association
3 Labour and the effective recognition of the right to 153, BRSR Principle 3 (259)
collective bargaining.
Businesses should uphold the elimination of all forms
4 Labour 153, 161, 197, 227, BRSR Principle 5 (265-268)
of forced and compulsory labour.
Businesses should uphold the effective abolition of
5 Labour 153, 161, 197, 227, BRSR Principle 5 (265-268)
child labour.
Businesses should uphold the elimination of
6 Labour discrimination in respect of employment and 153, 155, 197, BRSR Principle 5 (267-268)
occupation.
Businesses should support a precautionary approach
7 Environment 26, 173, 175, BRSR Principle 6 (271, 276, 277)
to environmental challenges.
Businesses should undertake initiatives to promote
8 Environment 162-175
greater environmental responsibility.
Businesses should encourage the development and
9 Environment 166, 168, 170, 172, 184, 185, 200, 201, 211
diffusion of environmentally friendly technologies.
Businesses should work against corruption in all its
10 Anti-Corruption BRSR Principle 1 (253), 342
forms, including extortion and bribery.

239