Larsen & Toubro receives an ESG rating of 58 from NSE Ratings
Larsen & Toubro received an ESG rating of 58 from NSE Ratings for FY2025, a decrease from 63 in FY2024. The rating reflects scores of 54 (Environment), 57 (Social), and 65 (Governance). The company also reported a core ESG rating of 51. Separately, L&T had ₹57 crore in bank guarantees encashed by K-RIDE on April 6, 2026, due to a contract dispute.
The ESG rating is an important factor for investors and stakeholders, and a score of 58 with a 'Moderate' classification indicates areas for improvement. The dispute with K-RIDE also represents a material event with financial implications.
The announcement provides an ESG rating which is a factual disclosure. While the rating itself is a neutral score, the decrease from the previous year and the mention of a dispute with K-RIDE introduce elements that prevent a positive sentiment.
Larsen & Toubro Limited (L&T) has been awarded an ESG rating score of "58" by NSE Sustainability Ratings & Analytics Limited (NSE Ratings). This rating was independently prepared by NSE Ratings based on publicly available information, and L&T did not engage NSE Ratings for this assessment.
For FY2025, L&T achieved an overall ESG rating of 58, with an Environment score of 54, a Social score of 57, and a Governance score of 65. The company also reported a core ESG rating of 51 for FY2025, comprising an environment score of 37, a Social Score of 58, and a Governance Score of 62.
The previous year's (FY2024) ESG rating was 63. The rating category for FY2025 is classified as 'Moderate'.
Key drivers for the environment score include greenhouse gas emissions in line with industry averages (a decrease of 12% compared to the previous year), but a higher-than-standard carbon footprint from Scope 3 emissions. Water intensity performance is high with a 6% increase, and energy intensity is above benchmarks with a 16% decrease. Energy consumption from renewable sources increased by 71%, while waste generation per unit of production is high with an 11% decrease, and waste recycling/recovery falls short with a 79% decrease.
In the social pillar, the lost time incident rate for workers is low compared to peers, though 33 fatalities were reported for workers in the assessment year. Permanent employees have health and accident insurance coverage at par with industry norms. Women are underrepresented, despite a 13% increase compared to the previous year. Employee grievances increased by 71%, while permanent employee turnover decreased by 31%. Customer complaints are lower than benchmarks, and the domestic procurement rate is lower than industry standards.
For the governance pillar, the board composition shows a stronger presence of independent directors than required, and regulatory requirements for women on the board are met. Independent director representation is better than compliance requirements for the Nomination and Remuneration Committee, Audit Committee, and Risk Management Committee, as well as the CSR Committee.
Separately, on April 6, 2026, Karnataka Rail Infrastructure Development Company (K-RIDE) encashed bank guarantees worth ₹57 crore from L&T due to a dispute over non-performance in a suburban rail project. A tribunal supported K-RIDE’s decision, stating L&T had defaulted on its contracts, leading to termination.
What to do with a filing like this
Larsen & Toubro Limited filed this with the NSE as a statutory disclosure, categorised under other regulatory filings. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
That call is the part a filing cannot make for you. On RealCase, SEBI-registered research analysts and investment advisers read announcements like this one and turn the ones that matter into actions inside their model portfolios: a change in weight, a hold, or nothing at all. You are not left working out which of the roughly 250 filings published each day needs a response. The portfolio you follow is updated when a filing actually warrants it, with the reason written down.
See the model portfoliosA plain-language summary of a public exchange filing by Larsen & Toubro Limited. Read the original for the full detail.