L&T Finance Ltd. (LTF), a prominent Non-Banking Financial Company (NBFC) in India, is excited to announce its membership in the Partnership for Carbon Accounting Financials (PCAF). This initiative highlights LTF's commitment to climate accountability, positioning it among the early adopters in the NBFC sector and the broader Banking, Financial Services, and Insurance (BFSI) industry. By adopting the PCAF methodology to disclose and measure its financed emissions for a select retail portfolio, LTF aims to enhance its carbon accounting practices and align its disclosures with evolving global standards.

Apurva Rathod, Company Secretary and Chief Sustainability Officer at LTF, stated, "India is at a pivotal moment in its climate transition, with ambitious targets to achieve net-zero emissions by 2070 and reduce the economy's emission intensity. Financial institutions play a crucial role in this transition by measuring, managing, and mitigating financed emissions. By becoming a PCAF signatory, we are reinforcing our commitment to transparency and aligning our disclosures with global standards. We will continue to refine our reporting in line with PCAF's best practices and strengthen our efforts toward decarbonization. This commitment is integral to our broader sustainability strategy, which focuses on a data-driven approach to managing climate risks and opportunities."

Since the financial year 2021-22, LTF has successfully reduced its Scope 1 and 2 emissions both direct and indirect greenhouse gas emissions—year-on-year. The company employs energy-efficient equipment and conducts energy assessments to optimize consumption, with approximately 39% of its operations powered by green energy.

To enhance carbon sinks, LTF has invested in 'Project Prakruti,' planting over 100,000 saplings in the financial year 2024-25. The company has also received the  certification for its Miyawaki plantation and carbon sequestration initiatives, demonstrating compliance with international best practices and contributing to local biodiversity.

Additionally, LTF has implemented various measures to reduce water consumption, including sensor-based taps and water-saving faucets, as well as recycling water through Sewage Treatment Plants (STP) at its corporate office. The company has also undertaken significant water conservation initiatives beyond its operations, such as constructing rainwater harvesting structures in drought-prone areas, replenishing over 50 times the water consumed in its operations back to the community. LTF is committed to achieving carbon neutrality by 2035 and maintaining its water surplus targets in the coming years.

Formerly known as L&T Finance Holdings Ltd. (LTFH), L&T Finance is a leading NBFC that offers a diverse range of financial products and services. Headquartered in Mumbai, the company has received a 'AAA' credit rating—the highest for NBFCs—from four leading rating agencies. It has also earned high scores from global and national Environmental, Social, and Governance (ESG) rating providers for its sustainability efforts. Recognized as a Great Place to Work, LTF has received numerous awards for its flagship CSR initiative, "Digital Sakhi," which focuses on women's empowerment and digital financial inclusion.

As part of its strategic roadmap, Lakshya 2026, LTF aims to create a top-tier, digitally enabled retail finance company. The focus is shifting from product-centric to customer-centric approaches, establishing a robust retail portfolio with quality assets while keeping ESG principles at the forefront. The company boasts a customer database of approximately 25 million, which it leverages for cross-selling, up-selling, and identifying new customers.

The Partnership for Carbon Accounting Financials (PCAF) was launched globally in September 2019 and has since attracted over 500 financial institutions. PCAF participants collaborate to develop a Global GHG Accounting and Reporting Standard for the financial industry, enabling the measurement and disclosure of greenhouse gas emissions associated with loans and investments. With representation from six continents, PCAF is rapidly expanding across North America, Latin America, Europe, Africa, and Asia-Pacific.