Mumbai, August 14, 2025 – DNV, a global leader in independent assurance and risk management, has issued a Second-Party Opinion (SPO) confirming that Larsen & Toubro’s (L&T) ESG Finance Framework aligns with the Securities and Exchange Board of India’s (SEBI) newly introduced ESG and sustainability-linked finance regulations, as well as global sustainable finance best practices.
The independent review supports India’s first listed ESG bond issuance under SEBI’s updated framework — a landmark ₹500 crore (₹5 billion) deal that marks a new era for sustainable finance in the country. The issuance underscores L&T’s commitment to transparent, accountable, and impact-driven financing while setting a precedent for future ESG instruments in India’s capital markets.
SEBI’s Strengthened ESG Finance Framework
Announced on June 5, 2025, SEBI’s revised ESG and sustainability-linked financing guidelines require issuers to meet stringent disclosure norms, measurable sustainability targets, clearly defined key performance indicators (KPIs), and comprehensive post-issuance impact reporting.
By obtaining DNV’s SPO, L&T has demonstrated full compliance with these standards, reinforcing the credibility of its ESG bond and ensuring alignment with both Indian and international sustainable finance norms.
A Pivotal Moment for India’s Sustainable Finance
“This issuance marks a pivotal moment in the evolution of sustainable finance in India and across the region,” said Percy Lakdawalla, Regional Manager Asia Pacific, India and Middle East, Supply Chain & Product Assurance at DNV.
“As a leading provider of ESG assurance, DNV is pleased to work with L&T to contribute to building a more transparent market for responsible investment. Supporting landmark transactions like this not only reflects our commitment to the region’s sustainable development goals but also reinforces the growing importance of credible ESG disclosures in capital markets.”
Driving Transparency and Investor Confidence
L&T emphasised the importance of independent evaluations in boosting investor trust.
“Partnering with DNV brought proven credibility and assurance to our ESG bond issuance,” said an L&T spokesperson. “Independent evaluations like DNV’s Second-Party Opinion are essential to strengthening investor confidence by ensuring that our framework is transparent, traceable, and aligned with global sustainability goals. DNV’s expertise helped us meet SEBI’s new regulatory standards while reinforcing our commitment to responsible and impactful financing.”
HSBC acted as the sole lead arranger for the landmark transaction.
Strengthening India’s Net Zero Transition
L&T’s ESG bond issuance comes at a time when India is accelerating efforts toward Net Zero emissions and climate-resilient economic growth. By meeting SEBI’s stringent requirements and aligning with global sustainability norms, the company has showcased how standardised, transparent, and credible ESG instruments can unlock sustainable capital at scale.
About DNV’s Role in ESG Financing
As a global leader in quality assurance and risk management, DNV provides rigorous ESG assessments to ensure that financing frameworks deliver measurable impact and align with the United Nations Sustainable Development Goals (SDGs). The SPO for L&T’s ESG bond demonstrates the company’s ability to integrate sustainability into core financing strategies and set a benchmark for other issuers in India.
