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View Full Report Life is sometimes regarded as a series of Select One options. Self or society? Immediate gains or long term returns? Conservation or convenience? At L&T we ask - do choices really need to be mutually exclusive? (There, a Select One option again!) We believe sustainability is all about re-visiting our choices. And making those that are informed, responsible, and most importantly, inclusive. We do not see industry and the environment as sworn adversaries or view profit as incompatible with a social conscience. » - the first letter of the Devnagari script symbolises learning in all its varied aspects. It goes hand in hand with L, the symbol of currency, and life blood of economics. Together, they point to a meeting ground of values SUSTAINABILITY REPORT 2014 GRI CHECKED A+ CONTENTS MESSAGES Group Executive Chairman 1 Leadership Team 5 GROUP PROFILE Organisational Structure 7 Business Portfolio 9 CORPORATE GOVERNANCE Governance Philosophy 14 Disclosures on Management Approach 19 SUSTAINABILITY APPROACH In Harmony with NAPCC 23 Risks & Opportunities 25 Materiality 28 Reporting Scope 30 Sustainability Roadmap 31 STAKEHOLDER ENGAGEMENT 34 OUR PEOPLE 38 ECONOMIC PERFORMANCE 50 ENVIRONMENT PERFORMANCE 62 SOCIAL PERFORMANCE 78 PRODUCT PERFORMANCE 88 AWARDS & RECOGNITION 97 INDEPENDENT ASSURANCE STATEMENT 99 G3 CONTENT INDEX 102 ACRONYMS 112 Message from the Group Executive Chairman Dear Fellow Stakeholders, I am happy to present our seventh annual Sustainability initiatives pre-date the provisions of the Companies Act Report, indicating the triple bottom-line performance 2013. We are using the newly introduced provisions as a (Economic, Environment and Social) and offering window of opportunity to streamline our processes and perspectives for the road ahead. enhance the impact of our social outreach. L&T views sustainability through the lens of its core We have created a suitable structure for ensuring the values, consciously and continuously aligning our effective implementation of the CSR programs through an activities to priorities articulated by the nation's Apex Sustainability and Corporate Social Responsibility leadership. Soon after the Prime Minister of India - team. During the year, we reached out to more than Mr. Narendra Modi launched the 'Swachh Bharat 800,000 beneficiaries through our intervention programs Abhiyan', we were among the first companies to respond in education, healthcare and skill building - a 14 % with a comprehensive programme that encompasses the increase from last year and indicative of the goals that we objectives of the national campaign. I am confident that as a company have set for ourselves. We have increased our efforts will add traction to the drive for a cleaner India. the depth of our work through intensive interventions in our project areas and its width by expanding the ways in In tune with the growing recognition of the need for which we partner communities. inclusive growth, the Company along with the L&T Public Charitable Trust has pledged to work towards 'Building India's Social Infrastructure'. The investments will cover Social Transformation through Water the thrust areas of water & sanitation, education, health We view water - in its pure, potable form - as an important and skill development. community resource. The assurance of year-round availability of water sets in motion a train of benefits that Interdependent Communities touch multiple aspects of human life - physiological, cultural and social. As the check dams built by the CSR at L&T has all along been premised on our belief in the Company and the L&T Public Charitable Trust have shown essential interdependence of communities. There cannot - a perennial water body eliminates the need for seasonal be an India for the rich, and another India for the rest. migration among tribal village communities. This in turn Unity between extremes is inherently fragile, and even if it means that women no longer have to traverse far from were to hold, would be unacceptable to any organization home to fetch water; children can continue their studies with a social conscience. That is why our community without disruption and enhancement of livelihood 1 There cannot be an India for We reached out to more The assurance of year- Last year, L&T was the rich, and another India than 800,000 round availability of water adjudged 'Corporate Citizen for the rest. Unity between beneficiaries through sets in motion a train of of the Year - 2013' by extremes is inherently our intervention benefits that touch The Economic Times. fragile, and unacceptable to programs in education, multiple aspects of human In addition, we have won any organization with a healthcare and skill life - physiological, laurels for our reporting social conscience. building. cultural and social. and disclosure standards. options for communities. The tally of check dams that we As part of our commitment to the United Nations Global have built has crossed 150. Within each of our factories Compact and its ten principles, this Sustainability Report and facilities too, the message of water conservation has serves as our annual Communication on Progress. The been strongly propagated. All of our 28 major campuses report details our performance across the three 'Ps'- have achieved zero water discharge status. People, Planet and Profit. I have always believed that good ideas are generated by Green Growth exchanging views. I look forward to hearing from you as we march ahead on our sustainability journey. I am confident We are investing in reducing our carbon foot print through that by working together in a spirit of partnership we will various initiatives. We have successfully commissioned ensure that the ripples of growth and development extend India's first monorail in Mumbai, thus providing an eco- to the far corners of our vast and disparate country. friendly mass transit mode. With the addition of two new Green Buildings within L&T Campuses, we have also completed the construction of 43 million sq. ft. of certified green space for clients. We are ensuring cleaner and greener technologies in our operations by using renewable energy, introducing A.M. Naik sustainable practices across the product lifecycle. Group Executive Chairman Larsen & Toubro Public Recognition I am happy to add that our CSR performance has won wide recognition. Last year, L&T was adjudged 'Corporate Citizen of the Year - 2013' by The Economic Times. In addition, we have won laurels for our reporting and disclosure standards. Among the leading corporates in For more information about the economic performance of the Asia, L&T is being increasingly regarded as setting the Company and its Group, please refer to Chairman's Statement in our benchmark for sustainability reporting. Annual Report at www.LarsenToubro.com 2 3 4 Message from the Leadership Team K. Venkataramanan M.V. Kotwal S.N. Subrahmanyan CEO & Managing Director Heavy Engineering Construction & Infrastructure Success in all 3 Ps - People, At L&T Construction, the Planet and Profit, can be sustainability deeply achieved only when we ingrained in our system is At L&T we view sustainability as being socially conscious empower the communities reflected in the various kinds while remaining a technology - driven organization that around us and include them of infrastructure that we delivers on stakeholders' expectations. Our sustainability in our journey of sustainable create to enhance the quality initiatives encourage practices that promote corporate and profitable growth. This of life. Across our business governance, environmental stewardship, consumer year, at all locations, our verticals, specific protection, human rights, and diversity in our workforce. units have been driving sustainability themes are various initiatives in this promoted and implemented We have invested in social infrastructure for the community regard such as waste like green buildings, right from our inception, and the CSR initiatives are segregation and environment protection, reflective of our core values. We invest time and money in management, minimizing enhancement and social the form of resources in the thrust areas of Education, Skill usage of paper & plastics welfare community initiatives, building and Health towards promoting equitable growth. and reduction of GHG compact substations, smart emissions through energy grids, water management & All of our CSR initiatives now are being driven with the conservation. reuse, and tapping the power holistic theme of 'Building India's Social infrastructure'. of solar and wind energy. Corporate Social To preserve rapidly depleting L&T Hydrocarbon Engineering Responsibility will form an natural resources, we have integral component in our L&T Hydrocarbon Engineering (LTHE) is now a wholly owned initiated several enablers: journey towards excellence. we use solar-powered lamps, subsidiary of Larsen & Toubro. While providing greater Behaviour based safety, implement classifier levels of empowerment, this formation accompanies quality, on time delivery and technology to produce enhanced accountability, strengthened performance reduction in working capital crushed sand instead of river culture and better benchmarking with our global peers. will continue to be our prime sand and use digesters to thrust areas along with a produce power through In line with our thrust on the triple bottom line of focus on optimal use of organic waste. High-quality, 'People, Planet & Profit', we continue to promote inclusive resources. ultra-high-strength materials growth and
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