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Larsen & Toubro is a major technology, engineering, construction, manufacturing and financial services

conglomerate, with global operations. L&T addresses critical needs in key sectors - Hydrocarbon,
Infrastructure, Power, Process Industries and Defence - for customers in over 30 countries around the world.
L&T is engaged in core, high impact sectors of the economy and our integrated capabilities span the
entire spectrum of design to deliver. With over 7 decades of a strong, customer focused approach and a
continuous quest for world-class quality, with an unmatched expertise across Technology, Engineering,
Construction, Infrastructure Projects and Manufacturing, and maintain a leadership in all its major lines of
business.

Corporate Governance Philosophy


The Company's philosophy on Corporate Governance is built on a rich legacy of fair and transparent
governance and disclosure practices, many of which were in existence even before they were mandated by
legislation.
The Corporate Governance framework is based on an effective independent Board, the separation of
the Board's functions of governance and executive management and the constitution of Board
committees generally comprising a majority of independent Directors.

Board of Directors at L&T


L&T Board of Directors includes 20 Members comprising of Chairman & Managing Director, 7 Executive Directors
and 11 independent Directors and 2 Non-Executive Directors and 1 woman Director.

Sub committees of the board


a)
b)
c)
d)
e)

Audit Committee
Nomination & Remuneration Committee
Stakeholders Relationship Committee (formerly known as Shareholders/Investors Grievance Committee)
Corporate Social Responsibility Committee
Risk Management Committee

Corporate Governance Structure


L&Ts essential character revolves around values based on transparency, integrity, professionalism and accountability.
At the highest level, we continuously endeavour to improve upon these aspects on an ongoing basis.
The four-tier governance structure, besides ensuring greater management accountability and credibility, facilitates
increased autonomy to businesses, performance discipline and development of business leaders, leading to increased
public confidence. The Board of Directors of L&T includes a woman independent director.

Sustainability @ L&T
L&T won the CII-ITC

Sustainability Award for commendation for significant achievement 2014

which has Corporate Governance as part of its criteria


L&T has been featured among Asias Top 5 Most Sustainable Companies in the
Industrials Sector in Channel News Asias Sustainability Rankings 2015
The Top-down approach of L&T Sustainable
Governance Practice involves the following:
The Sustainability Executive Board (SEB), steered by a
member of the Executive Management Committee
(EMC), ensures effective formulation of sustainability
policies, implementation of strategy and review of
Sustainability Report. Business Heads, Sustainability
Councils and Unit Level Sustainability Teams cascade
the initiatives across the Company through the
representation of Independent Companies (IC).

Key Focus Areas of Corporate Governance @ L&T


Employee Engagement

Labour Practices and Human Rights


Employee Benefits
Occupational Health & Safety
Leadership Development & Training
Talent Acquisition & Retention
Talent Management
Manufacturing Units & Project Site Practices

Product Stewardship
L&T invests in R&D to develop new technologies that will enable us
to stay ahead of the curve Innovation and new product
development is the spring board to new process and product
features.

Intellectual Property Rights (IPR)


Customer Delight
Customer Health & Safety
Product labelling
Statutory regulations and voluntary codes

Community Engagement

Integrated Community Development


Project Ujjwal
Nanha Munna Express
Project Neev: Enriching Lives of the Specially Abled
NGO expositions
Infrastructure support
Creating livelihood opportunities
Disability Sensitisation
Prayas - A special effort for special people

Stakeholder Engagement
Share holder Engagement
Vendor Engagement
Customer Engagment

Best Practices @ L&T


Commitment to External Initiatives L&T follows the Global Reporting Initiative (GRI) framework and the
National Voluntary Guidelines (NVG) to report on its economic, environmental and social performances.
Additionally, L&T comply with United Nations Global Compact (UNGC), applicable International Labor Organization
(ILO) conventions and other United Nations (UN) directives that cover:

Statutory and regulatory compliance.


Business ethics.
Fair and equal opportunity to all employees.

Labour camps at construction sites.


Medical facilities at units, offices and project sites.
Steps to measure, monitor and conserve materials & energy.

Employee development through training.

Audits
Corporate Audit Department comprises professionals - CAs, engineers and system experts qualified and
equipped to measure and review performance. The Internal Audit function is ISO 9001:2008 certified. The Head
of Corporate Audit services reports jointly to the Group Executive Chairman and the Chief Executive Officer &
Managing Director. The staff of L&Ts Corporate Audit Services is periodically rotated.

Code of Conduct and Risk Management Framework


All Board members and Senior Management personnel* of the Company abide by L&Ts Code of Conduct. This ensures
compliance with the provisions of the revised Clause 49 of the listing agreement with stock exchanges. Policies,
procedures and guidelines have been formulated to clearly lay down norms on action and conduct of our employees.

Securities Dealing Code


Protection of Women's Rights in the Workplace
Corporate IT Policies

Security Manual and Procedures


Whistle Blower Policy
Guidelines on Corporate Communications

The Code of Conduct is available on the corporate website, www.larsentoubro.com.


The annual declaration regarding its compliance is also given by the CEO & Managing Director.

Internal Control System


L&Ts corporate policy on internal control provides a framework for identification, rectification, monitoring and
reporting of internal control weaknesses in the organization. Additionally, the company periodically engage
independent professional firms to review the effectiveness of control processes in businesses and support functions. All
significant observations and corrective actions taken are reviewed by the management

Sustainability Approach

Energy Conservation
Greenhouse Gas (GHG) Mitigation
Water Conservation
Material Management

Inculcating a safety culture Enhancing the Health Index of the Organization Continuing Social Interventions

Alignment with Governmental Initiatives for Eco-Sustainability


The Company is steadfast towards National Action Plan on Climate Change (NAPCC) and its 8 missions instituted by
Government of India.

SOLAR
ENHANCED ENERGY EFFICIENCY
SUSTAINABLE HABITAT
WATER

SUSTAINING THE HIMALAYAN ECOSYSTEM


GREEN INDIA
SUSTAINABLE AGRICULTURE
STRATEGIC KNOWLEDGE FOR CLIMATE CHANGE

L&T continues to invest in technologies towards increasing energy efficiency, enhancing renewable energy usage and
water footprint reduction etc. L&T also helps its customers to reduce their energy and carbon footprint through green
product and processes portfolio. This not only helps in reducing the emissions but also helps to progress on low carbon
economy path.

L&T actively participates in the Corporate Indias policy making process through its membership @
Confederation of Indian Industry (CII)
Construction Industry Development Council (CIDC)
Federation of Indian Chambers of Commerce and
Indian Electrical and Electronics Manufacturers
Industry (FICCI)
Association
The Associated Chambers of Commerce and
National Safety Council
Industry of India (ASSOCHAM)
Indian Institute of Chemical Engineers (IIChE)
Bureau of Indian Standards
British Safety Council
Department of Science & Technology,Govt. of India

CSR @ L&T
There cannot be an India for the rich, and another India for the rest. Unity between extremes is inherently
fragile, and even if it were to hold, would be unacceptable to any organization with a social conscience.

- A. M. Naik, Group Executive Chairman, L&T - India


Larsen & Toubro Limited fosters a culture of caring, trust and continuous learning while meeting the expectations of
all stakeholders and society at large. As a responsible Corporate Citizen, the Company contributes towards inclusive
growth by empowering communities and accelerating development.
The CSR Governance structure comprises of the

Board
CSR Committee

Apex Sustainability & CSR (SCSR) team,


IC SCSR Teams and Unit SCSR Teams

L&T Discloses the content of the CSR Policy in its report and place the Policy on the Companys website as prescribed
under Section 135 of the Companies Act 2013 read with the Companies (CSR Policy) Rules, 2014 .
Main focus areas of CSR activities at L&T are:
Water & sanitation
Education
Health
Skill building
Mentoring at L&T14 April 2016 L&T
Mentors connect with underprivileged
children.
Single Teacher School A Second
School11 January 2016
Single Teacher School is a concept multi
grade class education for drop-outs.
L&Teers at the heart of L&T
31 March 2015
L&T has a rich history of employee
volunteering and community
involvement.
Swachh Bharat Abhiyan
Larsen & Toubro as CSR initiative of
building 5000 toilets @Swachh Bharat
Abhiyan.
The Sun Glows, Water Flows 05
November 2014
L&Ts new solar water pumping system
installed free of cost at various villages.
Power to the People 04 November
2014
Power to the People is L&Ts CSR
initiative at the 2x700 MW coal based
power plant which is eco-friendly and
efficient .

India's Best Companies for CSR 2014:


Larsen & Toubro is engineering its way to CSR
-The Economic Times