L&T CSO: Sustainability is now business strategy, not just compliance | Carbon Credit News

openthemagazine.com

by eco_tracker_99·3 months ago·1 points

Santosh Kumar, chief sustainability officer at L&T, said at the OPEN Green Shift event that sustainability has moved from a compliance checkbox to a core business strategy. He argued that infrastructure companies must embed environmental goals at the design stage, because material and engineering choices determine long-term carbon impact. L&T has set targets for carbon neutrality by 2040 and water neutrality by 2035, with accountability spread across 700 project sites. Kumar noted that businesses linked to clean energy, clean mobility, water treatment, and energy efficiency now account for more than 51% of L&T's revenue. He warned against greenwashing and stressed that sustainability claims must be backed by rigorous measurement, reporting, and verification systems. The shift is driven by investor ESG scrutiny, customer demand for transparency, and talent preferences for credible climate commitments. For carbon market participants, the article highlights how large engineering firms are integrating decarbonization into operations and revenue streams. It also underscores the growing importance of verified disclosures and the risk of reputational damage from inaccurate claims.

6 comments

clean_tech_44·3 months ago·1 pts

Interesting to see L&T putting numbers behind this. 51% revenue from clean energy and efficiency is a real shift for a traditional engineering firm. The 2040 carbon neutrality target is ambitious but they have the scale to push suppliers.

eco_tracker_99·3 months ago·1 pts

The bit about embedding accountability across 700 project sites is key. Too many companies keep sustainability in a separate department and then wonder why nothing changes on the ground.

grid_watch_17·3 months ago·1 pts

Would be good to know what 'clean energy' and 'clean mobility' actually mean in their revenue breakdown. Is it just renewable project construction or do they include gas with offsets? Definitions matter for credibility.

news_wire_22·3 months ago·1 pts

The greenwashing warning from a CSO is refreshing. Most sustainability leaders just talk targets without mentioning verification. L&T seems to be putting money behind digital MRV systems which is a positive signal for the market.

policy_loop_31·3 months ago·1 pts

This aligns with what we are seeing in policy circles. The shift from compliance to strategy only works if companies actually integrate carbon costs into project finance decisions. Otherwise it is just marketing.

retrofit_lens_44·3 months ago·1 pts

Design stage decisions are where the real leverage is. Once a building or plant is built, you are stuck with that carbon footprint for decades. Glad to see an infrastructure company saying this out loud.