Larsen & Toubro (L&T), a prominent Indian multinational conglomerate, has announced an improvement in its Environmental, Social, and Governance (ESG) performance. MSCI ESG Ratings, a leading provider of ESG ratings, has upgraded L&T's rating from 'BBB' to 'A', marking an advancement in the company's sustainability efforts.

ESG Rating Upgrade Details

The company disclosed this information to the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE) on November 7, 2025. This upgrade reflects L&T's commitment to enhancing its ESG practices and aligning with global sustainability standards.

Implications of the Upgrade

The upgrade to an 'A' rating signifies that MSCI ESG Ratings views L&T as having improved its management of ESG risks and opportunities. This enhancement may potentially:

1. Boost investor confidence in L&T's long-term sustainability strategy
2. Improve the company's attractiveness to ESG-focused investors
3. Enhance L&T's reputation in the global market

Transparency and Disclosure

L&T has demonstrated its commitment to transparency by promptly disclosing this rating change to the stock exchanges. The company has also made the rating rationale available on MSCI's ESG Ratings platform, allowing stakeholders to understand the factors contributing to this upgrade.

Conclusion

L&T's ESG rating upgrade from 'BBB' to 'A' by MSCI ESG Ratings marks a milestone in the company's sustainability journey. As businesses worldwide face increasing pressure to address ESG concerns, this improvement may position L&T favorably in the eyes of investors and stakeholders who prioritize sustainable and responsible business practices.

Larsen & Toubro (L&T), India's leading engineering and construction conglomerate, has made significant strides in expanding its capabilities in the nuclear power and defence sectors through strategic partnerships.

Nuclear Power Sector Collaboration

L&T's Heavy Engineering division has signed a Memorandum of Understanding (MoU) with Holtec International's Asia arm to offer design and build solutions for Heat Transfer Equipment. This collaboration builds upon L&T's existing partnership with Holtec for the global deployment of SMR-300 (Small Modular Reactor), which is supported by the prestigious 810 Authorization from the US Department of Energy.

The partnership aims to combine L&T's world-class nuclear manufacturing capabilities with Holtec's pioneering design expertise to deliver cutting-edge solutions for nuclear and thermal power plants worldwide. The focus will be on developing technology that can:

• Optimize thermal regulation
• Maximize cycle efficiency
• Ensure reliable power plant operation

Mr. Anil Parab, Whole-time Director & Senior EVP – Heavy Engineering & CE & IPDD at L&T, emphasized the strategic importance of this partnership, stating, "Post the COVID pandemic, energy security emerged as a strategic need, with more than 32 countries having committed to triple their nuclear power generation capacity. Our partnership with Holtec is a key strategic move to fast-track efficient energy systems and shape a sustainable energy future for both India and the world".

Defence Sector Collaboration

In a separate development, L&T has also announced a partnership with General Atomics Aeronautical Systems to manufacture Medium Altitude Long Endurance (MALE) remotely piloted aircraft systems in India for the Indian Armed Forces. L&T will serve as the prime bidder for the Ministry of Defence's 87 MALE RPAS programme, further solidifying its position in the defence sector.

Market Performance

As of the latest trading session, L&T shares were trading 0.3% lower at ₹4,018.20. However, the company has shown strong performance in recent months:

These strategic partnerships in both the nuclear power and defence sectors demonstrate L&T's commitment to expanding its capabilities and contributing to India's energy security and defence modernization efforts.