DNV Supports India’s First ESG Bond Issuance by L&T Under New Framework for Sustainable Finance

DNV, the independent assurance and risk management provider, has issued a Second-Party Opinion (SPO) on L&T’s ESG Finance Framework. 

DNV’s Second-Party Opinion confirmed that L&T’s ESG Finance Framework aligns with the rigorous standards laid out in the Securities and Exchange Board of India’s (SEBI) regulatory guidance, ensuring that the framework meets both Indian and international sustainable finance norms.

This independent assessment supports India’s first listed ESG bond issuance by L&T, a landmark INR 500 crore (5 billion INR) deal under SEBI’s newly introduced ESG and sustainability-linked finance framework, marking a significant stride for the country’s sustainable finance landscape. 

This milestone not only breaks new ground as the first of its kind but also signals a broader shift in India’s capital markets towards more accountable, transparent and impact-driven financing.

SEBI’s enhanced framework, which was announced on 5 June 2025, requires issuers of ESG and sustainability-linked financial instruments to meet stringent standards around disclosures, sustainability targets, key performance indicators and post-issuance impact reporting.  

“This issuance marks a pivotal moment in the evolution of sustainable finance in India and across the region. As a leading provider of ESG assurance, DNV is pleased to work with L&T to contribute to building a more transparent market for responsible investment. Supporting landmark transactions like this not only reflects our commitment to the region’s sustainable development goals but also reinforces the growing importance of credible ESG disclosures in capital markets”, said Percy Lakdawalla, Regional Manager Asia Pacific, India and Middle East, Supply Chain & Product Assurance at DNV. 

DNV’s collaboration with L&T on the ESG bond issuance highlights a shared commitment to sustainability and transparency in ESG financing. By providing an independent Second-Party Opinion DNV ensures L&T’s ESG Finance Framework meets high standards of integrity and impact. This milestone sets a precedent for future ESG financing in India and supports businesses in their journey towards credible and sustainable financing. 

L&T’s ESG bond issuance arrives at a critical moment as India ramps up efforts to meet its Net Zero commitments and climate-resilient growth targets. As a global quality assurance and risk management leader, DNV is proud to contribute to this evolving landscape by offering rigorous ESG assessments that align with both national and international standards. 

“Partnering with DNV brought proven credibility and assurance to our ESG bond issuance,” said an L&T spokesperson. “Independent evaluations like DNV’s Second-Party Opinion are essential to strengthening investor confidence by ensuring that our framework is transparent, traceable, and aligned with global sustainability goals. DNV’s expertise helped us meet SEBI’s new regulatory standards while reinforcing our commitment to responsible and impactful financing”. 

HSBC was the sole lead arranger for the landmark transaction. L&T’s successful ESG bond issuance comes at a pivotal moment as India advances toward its Net Zero targets and climate-resilient economic growth. As ESG considerations become central to financial decision-making, the issuance demonstrates how standardised, transparent, and credible ESG instruments can unlock sustainable capital at scale.