Notes by Narsi
A recent news item on L&T's plans for a low carbon future is quite instructive of how large firms in the services sector could be architecting their decarbonization strategy.
L&T has decided on a four-pronged carbon neutrality approach that involves:
- Improving energy efficiency - better processes, use of digital technologies for equipment productivity and replacement of older machines with newer, more efficient ones.
- Increasing the share of using eco-friendly fuels & low cabon transport - battery electric vehicles (BEVs), biogas, renewable diesel, green hydrogen, stationary fuel cells, fuel cell electric vehicles (FCEVs), etc.
- Enhancing the use of renewables - it currently sources 10% of its electricity through renewables, essentially solar; aims to increase this to 50% by 2026 and 100% by 2035, and
- Offsetting the remaining greenhouse gas emissions by planting trees
None of the above initiatives in themselves will make one lift one's eyebrows. What will be really impressive is if the company pulls off all the above initiatives at scale - something a group such as L&T is well capable of achieving.
