Larsen & Toubro

At a Glance


Industrial Goods and Manufacturing

Project Types

Financial Evaluation and Planning, Sustainability and Energy Management Strategy




Mumbai, Maharashtra


Devyani Pudale’s project was a critical input for L&T to implement Internal Carbon Pricing (ICP) within the organization, aiding in its Climate Change Transition Plan.


L&T has committed to a target of achieving carbon neutrality by 2040 as a part of its Climate Change Transition Plan. Emission reduction initiatives are primary levers to achieve this target and enabling the business units to undertake these initiatives is crucial. ICP helped establish a framework to assess the impact of initiatives, justify the capital investments, as well as prepare for future requirements.


Devyani began with understanding the fundamentals of ICP and explored the current status of the ICP landscape, both in India and around the world. Based on the foundation developed, she shortlisted applicable ICP for L&T. She then collected the applicable data, such as ICPs of other companies and information on emission reduction initiatives, and estimated a shadow price as well as implicit price for L&T. Additionally, she explored options for implementing ICP in L&T and proposed three relevant models to enable better assessment of proposed initiatives as well as future investments. 

Potential Impact

By seamlessly integrating an Internal Carbon Price framework, L&T can drive informed sustainability decisions, aligning with emission reduction goals. The estimated ICP not only quantifies carbon costs but propels innovation and strategic investments towards a greener future. The impact of this initiative will be felt in optimized resource allocation, heightened environmental responsibility, and L&T's leadership in sustainable business practices.

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