L&T Secures $700 Million Sustainability-Linked Trade Finance Facility to Drive ESG Goals – EQ
In Short : Larsen & Toubro (L&T) has secured a $700 million sustainability-linked trade finance facility from Standard Chartered. The facility links financing terms to L&T’s achievement of specific ESG targets, promoting environmentally responsible business practices. This partnership supports the company’s sustainable growth initiatives, strengthens green financing options, and reinforces L&T’s commitment to integrating sustainability across its infrastructure and industrial operations.
In Detail : Larsen & Toubro (L&T) has secured a $700 million sustainability-linked trade finance facility from Standard Chartered. The arrangement ties financing terms to the company’s environmental, social, and governance (ESG) performance, aligning financial incentives with sustainable business practices and responsible corporate behavior.
The facility is structured to encourage L&T to meet predefined ESG targets. Achieving these targets can influence the cost and terms of financing, creating a direct link between sustainability performance and financial benefits, which strengthens accountability and operational transparency.
This partnership reflects growing investor and lender interest in integrating sustainability into corporate financing. It demonstrates how global financial institutions are supporting companies that adopt environmentally and socially responsible practices, while also seeking to mitigate ESG-related risks.
L&T plans to use the facility to support its trade finance operations across various infrastructure and industrial projects. Linking financing to sustainability ensures that growth and operational expansion are consistent with the company’s commitment to ESG principles.
The sustainability-linked structure includes key performance indicators (KPIs) related to carbon reduction, energy efficiency, and social initiatives. By achieving these targets, L&T can benefit from preferential financial terms, while furthering its contribution to India’s sustainable development goals.
The initiative positions L&T as a leader in responsible business practices in India’s infrastructure sector. It sets a precedent for other large corporates to adopt sustainability-linked financing mechanisms to drive measurable environmental and social impact.
Standard Chartered’s involvement highlights the importance of global financial support in advancing corporate sustainability agendas. The bank’s expertise in ESG-linked financing provides L&T with a structured framework to track, report, and achieve its sustainability objectives.
The facility also strengthens L&T’s green financing portfolio, complementing existing renewable energy and low-carbon initiatives undertaken by the company. It enables better risk management, encourages innovation in sustainable solutions, and supports environmentally responsible project execution.
