L&T Finance Ltd. (LTF), formerly known as L&T Finance Holdings Ltd. and one of India’s major Non-Banking Financial Companies (NBFCs), has announced its latest Environmental, Social, and Governance (ESG) rating issued by CRISIL. The company achieved an overall CRISIL ESG 70, classified as a ‘Strong’ rating for FY25. This places LTF as the highest-rated entity among the listed NBFCs evaluated by CRISIL. In addition, LTF received a CRISIL Core ESG 80score. These assessments are based on the organisation’s publicly disclosed ESG data at the consolidated level, along with other publicly available information.
According to CRISIL ESG Ratings, LTF’s overall score reflects consistent performance across key environmental and social indicators. The company has maintained control over Scope 1 and Scope 2 emission intensities and overall energy consumption. The report notes improvements in metrics related to employee attrition, diversity and inclusion, and stakeholder grievance management. CRISIL also highlighted LTF’s efforts to expand its Scope 3 emission disclosures and its initiatives to expand its sustainable finance portfolio, both of which contributed to the environmental component of the rating. A steady governance score also supported the overall assessment.
L&T Finance stated that it has long been an early adopter of sustainability-led business practices. This includes integrating ESG considerations across operations, strengthening reporting frameworks, and adopting internal systems aimed at enhancing long-term business resilience.
Commenting on the rating, Mr Sudipta Roy, Managing Director and CEO of L&T Finance, said the latest scores indicate the company’s ongoing efforts to align economic performance with wider social and environmental outcomes. He noted that LTF aims to support underserved customer segments while operating with transparency and accountability. Roy added that LTF is among the first NBFCs to conduct a Double Materiality assessment and a Business Impact Study using True Value Methodology, which he said reflects the company’s commitment to shaping benchmarks in the NBFC sector.
Apurva Rathod, Company Secretary and Chief Sustainability Officer at L&T Finance, said that sustainability forms an integral part of the company’s long-term strategy. She explained that LTF has consistently adopted sustainability practices ahead of regulatory requirements, marking a shift from compliance-focused disclosures to fostering a broader ESG-oriented organisational culture. Rathod noted that the company continues to embed ESG principles across business processes to create value for all stakeholders.
CRISIL ESG Ratings, a SEBI-registered Category 1 ESG Rating Provider, evaluates companies under a subscriber-pays model and bases its assessments solely on publicly available information. The agency’s analytical framework compares the company’s ESG performance with its industry peers and reflects the financial sector’s broader impact on environmental and social ecosystems. Governance scoring, however, remains sector neutral.
L&T Finance’s rating is expected to reinforce its market positioning, particularly at a time when ESG performance is gaining importance among investors, lenders, and regulators. With rising expectations from financial institutions to address sustainability challenges, the company’s latest rating underscores its progress in aligning growth with responsible business conduct.
The company reiterated that it will continue to advance its ESG roadmap, focusing on enhanced disclosures, carbon reduction initiatives, responsible lending frameworks, and programmes aimed at social impact. LTF plans to strengthen its sustainable finance portfolio further, reflecting sector-wide trends where financial institutions increasingly integrate ESG considerations into core decision-making and product design.
As ESG frameworks evolve and regulatory expectations increase, the company’s focus on governance, social performance, and environmental stewardship is likely to shape its future strategy. LTF stated it will continue to build on its current practices to support long-term value creation and contribute to wider financial sector sustainability standards.
