L&T to Slash Carbon Footprint by Phasing Out Old Construction Equipment and Boosting Biodiesel Use

Larsen & Toubro (L&T) is planning to reduce its carbon footprint by phasing out old construction equipment and increasing the use of biodiesel, according to a senior executive. The company also aims to use electricity from renewable energy sources instead of thermal coal at its manufacturing sites.

“We are planning to retire construction equipment that is more than 15 years old, with specific targets set for different departments,” said Anup Sahay, L&T’s corporate strategy head.

L&T owns 14,000 pieces of construction equipment, which primarily use diesel fuel. Diesel is also used in generator sets at construction sites.

“Diesel accounts for 65% of our emissions. We aim to increase the use of biodiesel to 30% in our fuel mix,” Sahay added.

L&T’s construction business generates 85-90% of the company’s standalone revenue. For the financial year 2023-24, this revenue exceeded ₹1,31,000 crore. Sahay mentioned that L&T operates more than 500 construction sites at any given time.

“We have established two task forces. The first is focused on reducing diesel consumption. The second is exploring ways to shift our electricity use to renewable sources,” he said. Sahay noted that L&T’s diesel consumption had decreased by 8% in the financial year 2023-24.

L&T has developed five-year plans to reduce carbon emissions, starting from the financial year 2020-2021 and ending in 2025-2026.

Sahay cautioned that these efforts to reduce the carbon footprint will take time. “It will take many decades to reduce the share of fossil fuel or thermal coal to 25-30%,” he said.