Larsen & Toubro (L&T) has signed a Sustainability-Linked Trade Facility (SLTF) worth USD 700 million with Standard Chartered, reinforcing its commitment to sustainable business practices. This follows L&T’s USD 60 million sustainability-linked bond issued in June under SEBI’s ESG Bond Framework.

The SLTF is tied to key performance indicators, including greenhouse gas emission intensity and freshwater withdrawal, and aligns with the Loan Market Association’s Sustainability-Linked Loan Principles. The KPIs have been independently reviewed by DNV, with annual disclosure and third-party assurance planned to ensure transparency and accountability.

L&T said the financing supports its long-term goals of carbon neutrality by 2040 and water neutrality by 2035. Standard Chartered noted the facility will aid L&T’s decarbonisation journey and underscores the bank’s focus on advancing sustainable finance in India.