Building Climate Resilient Infra: Larsen & Toubro

Larsen & Toubro, commonly known as L&T, has wide business interests in engineering, construction, manufacturing, technology, information technology, and financial services. In FY22 the company reported standalone revenue from operations of Rs 1,01,000.41 crore and standalone profit after tax of Rs 7,879.45 crore. The company can be called one of the early movers in embracing sustainable initiatives.

Environmental milestones
Currently, L&T’s green business contributes 38.2 per cent of the total revenue as compared to 33.2 per cent in FY21. Its green portfolio comprises projects embedded with advanced technology, solutions centred around renewables, water and effluent treatment plants, efficient power distribution, mass transit systems and green buildings.

Energy conservation measures increased by 96 per cent as compared to the previous year, and the cumulative energy saved since FY2007-08 was equivalent to 149 million units, thereby avoiding 46,539 tCO2e (tonnes of carbon dioxide equivalent) in FY 2021-22 through energy conservation interventions and renewable energy. The use of hazardous chemicals was reduced by 32 per cent from FY21 and 54 per cent from FY20 respectively, and 48 per cent of wastewater was recycled efficiently.

“As early movers in sustainability, we have not only identified carbon and water focused initiatives but also aim to improve the efficiency of operations by 2.5 per cent per annum, looking at alternatives such as renewable power or technology adoption to decrease water usage, while also conserving. These steps will assist us in achieving our carbon neutrality and water targets,” says Pradeep Panigrahi, Head – Corporate Sustainability, L&T

Environmental Footprint
L&T makes sustained efforts to ensure that materials such as steel and zinc are recycled at production facilities. At construction sites, the judicious use of fly ash and granular blast furnace slag is made to blend cement.

The company undertook a cradle-to-gate logistics capability assessment (LCA) of a critical reactor manufactured by the heavy engineering business. These reactors process biomass to make green diesel and reduce greenhouse gas emissions by up to 80 per cent compared to conventional diesel fuel. The LCA results of the manufacturing process of the reactor show that the maximum impacts are due to the steel and energy consumption from the grid associated with the manufacturing process.

“Due to our focus on the circular economy, today 25 per cent of our raw material comes from either eco-friendly sources or non-virgin sources that create minimal impact on the environment,” explains Panigrahi.

To reduce the industry’s impact on the environment, one of the company’s projects from the heavy civil infrastructure business has been reducing its CO2 impact by using supplementary cementitious materials in concrete and reducing its water usage by replacing conventional water-curing with a curing compound. Emissions avoided by this was 119,946 tCO2 and water saved by using curing compounds was 2020.8 kl and by using superplasticisers was 44,479.2 kl. Savings by a reduction in raw material usage was Rs 1.6 billion.

Research & Development
L&T’s construction research and testing centre is conducting research on the development of artificial coarse aggregates as an alternative to natural stone aggregates by using industrial by-products with suitable chemical activators to form a solid rock mass. This green and sustainable product has wide scope for usage across the construction value stream and will help enable significant energy savings.

The research centre is also conducting a study on the use of shredded waste plastic-modified asphalt mixes for eco-friendly and durable pavements. Preliminary investigations showed that the modified mix performed better than the conventional mix, especially during monsoons, and further studies are planned to help push the usage of this mix in future road projects.

Climate Risk Mitigation
Through initial risk assessments and regular risk reviews the company aims to anticipate the impact of climate risks and devise solutions or build contingencies to handle them accordingly. Assessment of high precipitation and flooding periods is done at the bidding stage for construction projects and this is factored into the project execution plan. Monsoon preparedness is a standard requirement for all projects. For dealing with extreme temperatures, operations are adjusted to start earlier in the day and restart after taking a midday break. To de-risk the movement of equipment in difficult conditions, appropriate arrangements are made in advance.

“I have been an advocate that sustainability is a profit centre. We have experienced this. There is not only a cost advantage but it also helps in employee engagement. More investors are asking about sustainability initiatives and as one of the pioneers in the space, we have the advantage. We are working on all 17 UN Sustainability Development Goals. We are touching the lives of more than 1.5 million people, ensuring they are above the poverty line. We are focusing on education, health, skill building, biodiversity and so on. Our systems and processes are in sync with our goals and allow us to do more,” sums up Panigrahi.