ENGINEERING SUSTAINABILITY - ESG REPORT - L&T Technology Services
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ENGINEERING
SUSTAINABILITY
ESG REPORT
2020-21
Contents
2 About the Report
4 LTTS at a Glance
11 Founder Chairman’s Message
13 CEO & Managing Director’s Message
16 Leveraging Technology to Stay Ahead of
the Sustainability Curve
18 Stakeholder Engagement and Materiality
21 Awards and Industry Recognition
22 Governance & Ethics Framework
37 Customer Centricity and Data Privacy
38 Engineering Scale to Accelerate
Sustainable Growth
43 Caring for Our Changemakers
57 Making Environmental Sustainability a
Way of Life
64 Engineering Social Co-Prosperity
76 Assurance Statement
80 GRI Content Index
To view or download our online
reports, please log on to
www.LTTS.com
Scan the above QR code to reach
our Investor Communications
AS AN ENGINEERING SERVICES LEADER FOCUSED ON PROFITABLE, SUSTAINABLE AND INCLUSIVE GROWTH, L&T TECHNOLOGY SERVICES (LTTS) IS DRIVING TRANSFORMATION ACROSS INDUSTRIES AND GEOGRAPHIES. DRIVEN BY A DEEP COMMITMENT TO ENGINEER A SUSTAINABLE FUTURE, WE LEVERAGE OUR CORE ENGINEERING DNA AND INNOVATION CULTURE TO SUPPORT THE WORLD’S LEADING R&D HOUSES IN ACHIEVING A CLEANER AND GREENER ENVIRONMENT. We inspire and support enterprises in developing a carbon neutral roadmap, consisting of smart products and services that will help shape a better tomorrow. Our philosophy is centered around channelizing the growing sustainability mindset, with the aim of being the preferred sustainability partner to global enterprises. LTTS is committed towards empowering customers, employees and all other stakeholders in adopting sustainability as a way of life, and steering an enduring transformation of its business strategies.
ABOUT THE REPORT
LTTS has a vision to help build a
sustainable world, and imbibes
the ethos of its parent group
Larsen & Toubro Limited, which
has sustainability embedded in
its vision, culture, strategy and
business processes. The Company
leverages its deep engineering
DNA and innovation mindset
to help customers expand the
use of renewable energy, drive
water conservation measures,
reduce carbon emissions, and
develop carbon neutral products.
A continued focus on nurturing
a sustained R&D culture for the
development of smart engineering
products and solutions further
underscores our commitment to a
cleaner, greener and a better world.
Our commitment to sustainability
is imbibed in this report, and we
commit to build and improve upon
the report’s transparency and processes and operations.
coverage in the coming years. Our Data assumptions are clarified
first annual Sustainability Report whenever required throughout the
covers data and information across report. This report also contains
all our business operations in ‘forward-looking statements’
India, covering the six locations describing the Company’s
Through this report, we hope to
of Vadodara (which is also the objective, projections, estimates
engage with our stakeholders,
Company’s Corporate Office), and expectations. Actual results
such as our clients, investors,
Bengaluru, Mumbai, Mysuru, could differ materially from those
shareholders, employees,
Chennai, and Hyderabad, for the expressed or implied.
communities, suppliers and
year beginning April 1, 2020, and regulators, on key sustainability
culminating March 31, 2021. The This report has been externally
issues and our ESG performance,
report framework is in line with assured by an independent
providing an unbiased and
the internationally accepted Global third-party Bureau Veritas, with
transparent view of the Company.
Reporting Initiative (GRI) Standards, whom LTTS has no relation except
in accordance with the ‘Core’ option. for employing their professional
services for assurance of this
LTTS is committed to providing a report. For more details, please For more information, please feel
transparent, objective and accurate refer to the Assurance Statement free to write in at:
view of its data management enclosed in the Annexures. corporate.sustainability@ltts.com
2
ESG Report 2020-21
OUR VISION OUR MISSION OUR VALUES
Engineering a sustainable Be the engineering partner of Being Purposeful
tomorrow through technology choice by enabling innovation Ethics & Integrity
and innovation. with world-class technologies,
Caring
processes, and people –
delivering inclusive growth to A Culture of Learning
all stakeholders. Results with Accountability
OUR VALUE PROPOSITION
Customer focus Innovation culture
We cater to a wide range of We nurture an innovation-focused
customers across industries mindset which is reflected in our
and create targeted partnership annual technology events, including
models that address specific TECHgium® and TechExpression®,
challenges and business goals and a portfolio of 650 patents
Multi-vertical industry Crosspoll!nnovation
expertise Our in-depth knowledge of multiple
Our deep domain expertise industries allows us to transfer and
across industries gives us a leverage new technologies across
competitive advantage, helping verticals, addressing a range of
us win important projects in complex business challenges
each of the verticals
3
LTTS AT A GLANCE
L&T Technology Services Limited (LTTS) is a leading global pure-play Engineering Research
& Development (ER&D) services company. It offers consultancy, design, development and
testing services across the product and process development life cycle.
Listed on BSE and NSE, LTTS is Our technologists work with global
a subsidiary of Larsen & Toubro firms to offer smart solutions & services
Limited (L&T). As India’s No. 1 pure- that can accelerate new product
play engineering and technology development, facilitate remote asset
services provider, the Company management, and enable virtual
offers services and solutions in Product Design & Prototyping.
the areas of product software,
mechanical and manufacturing
engineering, embedded systems,
engineering analytics and plant
engineering. Domain
expertise
Our customer base includes 69
Fortune 500 companies and 53 of Customer- Multi-vertical
the world’s top ER&D companies centric industry presence
across five business verticals – innovations spanning major
Transportation, Telecom & industries
Hi-tech, Industrial Products,
Plant Engineering, Medical Devices.
Our business proposition in each KEY
of these areas is driven by a DIFFERENTIATORS
strong sustainability ethos. FOR LTTS’ BUSINESS
Living and Breathing Sustainable Engineering
REVENUE IN FY21 GLOBAL PRESENCE EMPLOYEES
USD 737 million 25 countries 16,000+
` 5,450 crore
GLOBAL CLIENTS INNOVATION LABS PATENTS
300+ 69 650
4
ESG Report 2020-21
STRONG LINEAGE
LTTS is a subsidiary of Larsen & Toubro Limited, a LTTS is a part of the L&T Group’s strategic mission
USD 21 billion Indian conglomerate operating in over to leverage the power of digitization and technology,
30 countries. The Company has benefited immensely and enable real transformation across critical sectors
from its parent organization’s engineering heritage of including Healthcare, Industrials, Telecommunication
over eight decades, spanning multiple domains and & Hi-Tech and Transportation. Several of our digital
disciplines. LTTS’ ability to leverage this engineering frameworks, like the smart campus framework
expertise and cross-pollinate technologies from one i-BEMS, have been deployed at some of the L&T
segment to another has been the defining factor in sites and campuses. Our deep engineering heritage,
helping us maintain our leadership position across all derived from the L&T DNA, is helping shape a
the five industry segments that we are active in. sustainable future for engineering services.
ENGINEERING SUSTAINABILITY ACROSS KEY INDUSTRIES
Our offerings in each of the five verticals of our presence are marked by world-class Engineering Research
and Development (ER&D) services and digitalization solutions, founded on a robust sustainability focus.
TRANSPORTATION TELECOM & HI-TECH INDUSTRIAL PRODUCTS
PLANT ENGINEERING
OUR MEDICAL DEVICES
BUSINESS
VERTICALS
5
DRIVING SUSTAINABLE TRANSPORTATION
At LTTS, we are actively involved in the future of mobility through green solutions
that embrace the latest technology trends, thus balancing the current and future
needs in transportation.
TECHNOLOGY TRENDS
Electric Vehicles (EVs)
Advanced Driver Assistance System
(ADAS)
Autonomous Drive (AD)
TECHNOLOGY INVESTMENTS
EV Lab in Bengaluru
Dublin Design Center for
automotive product design and
solutions
Rockford Design Center for the
Aerospace industry
Munich Center of Excellence for
automotive hardware development
CUSTOMER SUCCESS
Our global customers in this business vertical include top OEMs
For a leading European automotive (original equipment manufacturers) and Tier 1 suppliers across the
customer, LTTS is setting up a Automotive, Trucks & Off-Highway Vehicles and Aerospace sectors.
telematics lab for next-generation
automotive vehicles We offer our clients a wide range of transportation engineering
LTTS is building a real-time services to help them achieve their go-to-market objectives. Our
technology framework for a global expertise in this domain vertical encompasses telematics,
European automotive components in-vehicle infotainment, ePowertrain, and end-to-end design and
manufacturer to simulate controller development of automotive components.
design of its ePowertrain systems
6
ESG Report 2020-21
SUPPORTING SUSTAINABLE TELECOM AND HI-TECH GROWTH
At the core of LTTS’ offerings in the Telecom and Hi-Tech vertical is a concerted focus
towards leveraging technology trends that support sustainable business growth. With
global telecom majors attempting to connect the world sustainably, we are sequentially
scaling our investments in sustainable solutions to partner them in their journey.
TECHNOLOGY TRENDS
Voice-as-a-Service
5G
DevOps
ASIC Design
VLSI IP
Cloud Engineering
OTT
TECHNOLOGY INVESTMENTS
Santa Clara ASIC Design House
RF Lab, 5G and Telco Cloud
Engineering Lab
Security Centre of Excellence for
Telecom and Hi-Tech, Jerusalem
Voice-as-a-Service Integration Lab
Our engineering services and solutions in this vertical
CUSTOMER SUCCESS encompass five key segments: Telecom, Consumer Electronics,
Semiconductor, ISV, and Media and Entertainment. As a leader
Technology and innovation partner
in this space, we help our customers engineer value across
for a global telecommunications
the product lifecycle: from design conceptualization to the
firm covering 5G and end-to-end
deployment of products and services.
engineering services
Dedicated engineering analytics lab
Our team of experts works across the value chain to provide
to support a global client’s new line
digital services and solutions for Communications Service
of server platforms
Providers, Networking and Technology System Operators, OEMs
and Chipset Makers.
7
BUILDING A SUSTAINABLE INDUSTRIAL BASE
LTTS believes that sustainable industrial development is a key pillar for ensuring
environmental protection and driving economic growth. Led by this belief, we remain
committed to partnering our customers in the Industrial vertical for driving business
success in a smarter and greener way.
TECHNOLOGY TRENDS
Digital Twins
Sustainability
Product Ruggedization
Smart Campus
TECHNOLOGY INVESTMENTS
Peoria Center of Excellence for
industrial product design
Think Studio for new product
design and development
Power Electronics Design Lab
Equipment Testing Lab
Digital PLM Design Center
CUSTOMER SUCCESS We support our global customers across industries, such as
Key partner for driving digitalization Building Automation, Power & Utilities, Machinery and Test &
initiatives for a Swiss elevator and Measurement, through services in the areas of product, digital
walkway manufacturer and value engineering.
Established a dedicated Global
Our Industrial and Consumer Products practice spans the
Engineering Hub to power a leading
entire value chain - from design, development and deployment
wind turbine manufacturer’s
to monitoring, testing and automation of processes, products
worldwide product roadmap
and solutions. The key areas of our customer engagement in
this vertical relate to product development, customization and
product ruggedization, mobility enhancement for cloud services,
IoT device integration, enterprise applications and DevOps.
8ESG Report 2020-21
TOWARDS A SUSTAINABLE FUTURE IN PLANT ENGINEERING
The LTTS sustainability value proposition in the area of Plant Engineering encompasses
early adoption and implementation of the latest technology trends across industries.
Reducing the environmental footprint for global manufacturers is a key priority of our
sustainability agenda, and we continue to make targeted investments in this direction.
TECHNOLOGY TRENDS
Digital Engineering
Contactless Manufacturing
Laser Scanning
Low-cost Automation
TECHNOLOGY INVESTMENTS
High-Value Engineering Center
AR/VR Innovation Hub
Integrated 3D Plant
Digitization CoE
Smart Manufacturing Lab
Leveraging its world-class expertise in engineering,
CUSTOMER SUCCESS procurement, and construction management, LTTS is involved
Digital twin modeling for a in every phase of a manufacturer’s plant lifecycle – from
chemicals and plastics major conceptualization to commissioning. Our Plant Engineering
across 20+ sites in North America business vertical caters to diverse industries, including
3D modeling and digital twin Consumer Packaged Goods, Chemicals and Energy & Utilities.
services for a global oil and gas
company across its worldwide We follow a consulting-led approach to offer state-of-the-art
asset portfolio digital solutions that help customers upgrade/integrate their
legacy systems to smart platforms for better synergy. LTTS
has created a strong market differentiation with its high-end
solutions for efficient, safe and sustainable production facilities,
helping clients improve overall plant productivity and ensuring
continued business success.
9GIVING MEDICAL DEVICES THE SUSTAINABLE EDGE
With medical devices being no exception to the growing need for sustainable
manufacturing practices, we, at LTTS, have committed ourselves to staying abreast
with the latest trends that can help bring quality and timely healthcare to our
customers’ doorsteps.
TECHNOLOGY TRENDS
Telehealth
Digital Front Door
Servitization
In-Vitro Diagnostics
MIoT
TECHNOLOGY INVESTMENTS
Microscopy Lab
Imaging Lab
Security Centre of Excellence for
Medical Devices Industry, Jerusalem
R&D for Endo-trainer Kit and ChestrAITM
CUSTOMER SUCCESS
Design, development and global In this fast-growing business vertical, we help medical OEMs
launch of a new blood cell counter for a worldwide, to speed up product development cycles and shorten
leading medical electronics equipment time-to-market. We are working with several global medical
manufacturer devices and healthcare leaders on innovative and effective
Product design enhancement and solutions that deliver remote medical care, in-vitro diagnostics,
support for a major medical device patient mobility services, home healthcare and Medical Internet
manufacturer’s surgeon console and of Things (MIoT).
robotic arm subsystems
10ESG Report 2020-21
FOUNDER CHAIRMAN’S MESSAGE
Dear Stakeholders,
At the outset, congratulations to L&T
Technology Services (LTTS) on its
first Sustainability Report. I believe
that sustainability is the single
biggest contributing factor to the
long-term success of an organization,
and governs its engagements with
the environment and the community.
Nearly a decade and half ago, I had
released L&T’s maiden Sustainability
Report – the first company in
the engineering & construction
space in India to publicly disclose
its sustainability performance. I
am happy to see LTTS continuing
the trend and reaffirming its
commitment to the responsibilities
Mr. A. M. Naik
Founder Chairman of a good corporate citizen.
TECHNOLOGY FOR A
SUSTAINABLE FUTURE
LTTS’ engineers have demonstrated
how technology can be leveraged
to drive the ‘power to do good’.
The Company has played its part
Led by the twin engines of sustained in propelling recovery in the ER&D
services sector and is sharply
R&D focus and a culture that encourages focused on innovation and cutting-
innovative and out-of-the-box thinking, edge R&D. Among the many projects
we have undertaken in this space is
LTTS offers a wide canvas of engineering helping build the world’s smartest
solutions and offerings. office campus in Israel.
The Company is also actively
promoting socio-economic
rejuvenation through targeted
CSR intervention measures such
as focused skill development
programs for the youth, rural solar
electrification projects to benefit
tribal communities near Mysuru,
Karnataka and plastic waste recycling
projects at Vadodara, Gujarat.
11LTTS has also been building on its LTTS remains committed to We are also actively involved in a new
sustainability quotient by driving maintaining the high standards of engagement to assist the electric
innovations in electric vehicles (EVs), governance that L&T as a Group vehicle aspirations of a leading U.S.
water and waste management, has set. Our ESG initiatives are tier 1 automotive company.
supply chains and other measures built on the pillars of transparency,
for enhancing the green portfolio of accountability, responsibility, As LTTS embraces sustainability,
our clients. compliance and trust. We continue and integrates it into its strategic
to drive an ethically progressive goals, I am confident that the
SAFETY & WELL-BEING and reliable business model, Company will accelerate its
Our top priority has always been to robust enough to meet emerging productive growth journey.
ensure the safety and well-being challenges.
This Report highlights different
of people. We have helped to
organize vaccination drives, provided PRODUCTIVE GROWTH facets of our sustainability
JOURNEY performance across the last year.
comprehensive insurance support
As always, we welcome your inputs
and set up well-equipped isolation Notwithstanding the turbulence
and comments on our efforts.
centers. Our online counseling in recent times, we have managed
services have helped many in their to retain our growth trajectory, by
A. M. Naik
hour of need and boosted morale. remaining in sync with evolving
Founder Chairman
We acknowledge the wholehearted global realities. LTTS’ team
L&T Technology Services Limited
support of our employees and their of engineers has repeatedly
families in these confidence-building demonstrated a high order of
measures. technical and executional expertise.
12ESG Report 2020-21
CEO & MANAGING DIRECTOR’S MESSAGE
Dear Stakeholders,
It gives me great pleasure to present
our first Sustainability Report,
aligned to the internationally
recognized ESG framework of GRI
Standards. Through this report,
we endeavor to showcase our
commitment towards mitigating
the effects of climate change and
social inequities.
The previous financial year was
unprecedented in its impact.
However, I am happy to note
that even though the pandemic
disrupted the way we live and work,
Team LTTS has demonstrated
remarkable resilience throughout,
Mr. Amit Chadha driving a robust growth journey that
CEO & MD will define our approach to the
‘new normal’.
LTTS also focused on creating,
refining, and committing to its
sustainability roadmap in order to
help its global clientele in sustainable
product design and enabling them to
realize their carbon neutrality goals.
LTTS stands committed to a greener, We recently restated our Vision as:
cleaner and prosperous future, driven by ‘Engineering a sustainable tomorrow
the triple bottom line approach with equal through technology and innovation’
– underscoring the cultural
importance towards people, profits, and transformation underway across
the planet. I feel that this will help us build the organization.
and deliver on our ethos of profitable, The renewed approach is driven by
sustainable, and inclusive growth. a twin-engine paradigm – achieving
carbon neutral operations by 2030.
We are working with some of the
leading global businesses in enabling
their sustainability journey through
innovative product design, smart
manufacturing operations and
product consulting services – helping
build a greener and cleaner future.
13With 90% of our top 10 customers remotely in a hybrid model. ECONOMIC SUSTAINABILITY
committed to carbon neutrality, and Supporting this vision of ‘People- The resilience of our engineers led
70% focusing on decarbonization, First’ are a series of innovation- to LTTS winning significant deals
our investments today are driven training and mentoring even after the pandemic started
increasingly aimed at promoting platforms incubated within the spreading, reflecting the inherent
sustainability across various Company, which offer a level playing soundness of our business model.
industries. Some of these focus field for high potential employees Leveraging our competence in
areas include creating a 100% irrespective of rank, gender or e-mobility, we won multiple orders
renewable energy powered EV
hierarchy. from a leading U.S. Tier 1 automotive
charging infrastructure, state-of-the-
company over the last 9 months, to
art material testing centers, a smart
The Global Engineering Academy provide engineering services for its
water management solution, and
(GEA), established in the previous electric vehicle (EV) product portfolio
a smart digital manager for energy
year, has delivered, in its first year of and develop scalable e-mobility
management solutions.
operations, a successful track record solutions. LTTS is also selected as a
in giving engineers the right platform Consulting and Professional Services
In addition, we are also driving an
to learn and develop the skills provider to support Amazon Alexa
in-depth certification program for
needed to grow their knowledge, Voice Service (AVS) integration
trained sustainability consultants in
– underscoring our engineering
partnership with some of the leading advance their careers, and play
expertise in the connected devices
global names in academia. a lasting role in the Company’s
space, spanning multiple domains
success.
and industries worldwide.
LTTS stands committed to a greener,
cleaner and prosperous future, Through the WINGS program –
Our performance continues to
driven by the triple bottom line a gender and inclusivity framework,
reflect strong fundamentals. Over
approach with equal importance we are also focusing on making the last four years, LTTS has grown
towards people, profits, and the gender diversity and inclusion a annual revenues at a CAGR of 11%
planet. I feel that this will help us reality by incorporating it in several to reach USD 737 million in FY21.
build and deliver on our ethos of stages of the workplace life cycle – The Company’s EBIT margin stood at
profitable, sustainable, and inclusive from recruitment to development 14.5% in FY21, while PAT came in at
growth.
and retention. ` 6,633 million.
CARING FOR OUR PEOPLE
The pandemic enforced many
changes in our operations, with the Our performance continues to reflect strong
employees having to adopt Work fundamentals. Over the last four years, LTTS
From Home. LTTS indigenously
has grown annual revenues at a CAGR of 11% to
conceptualized a proprietary
certification program - ‘Omni Opus reach USD 737 million in FY21. The Company’s
- WFX Certified Professional’, to EBIT margin stood at 14.5% in FY21, while PAT
equip our employees for effectively
came in at ` 6,633 million.
managing projects delivered
14ESG Report 2020-21
To stay relevant in the marketplace as we commit to global action on LOOKING AHEAD
for the coming years, we have reversing climate change in close
We are committed to making
identified six strategic investment collaboration with our customers,
sustainability an integral part of
areas, including EACV, 5G, MedTech, employees, and other stakeholders.
our ecosystem and help define
Digital Manufacturing, AI&ML driven
the journey for our customers and
smart offerings, and Sustainability, CSR engagements are a fundamental
stakeholders.
which will help us drive scale and pillar through which we are
enable our engineers to stay ahead engineering social co-prosperity The Company will continue to
of the curve. across India. Our focus is on leverage its deep capabilities
collaborating with communities, around energy transition and
DRIVING SOCIAL AND institutions, and NGOs to promote management, water and waste
ENVIRONMENTAL areas like skill development, water management, circular product
SUSTAINABILITY FOR A and sanitation awareness, and design, digital intervention,
BRIGHTER FUTURE health and education with the aim to sustainability consulting, and
‘Build India’s Social Infrastructure’. climate action for realizing this
LTTS has aligned its sustainability
goals with that of the L&T Group aspiration. I remain confident that
In FY21, we have had a direct and these six tracks will play a pivotal role
– minimize environmental impact,
positive impact on 32,000 lives in enabling our customers achieve
maximize social outreach, and offer
through our UN SDG aligned their respective goals around
sustainable solutions. Our focus
initiatives. The Company has sustainability.
is on addressing the key material
issues of energy, emissions, water, provided solar lighting to the
and waste management, while tribal communities near Mysuru, We look forward to your views and
driving social transformation. Karnataka. We helped in the suggestions to help improve our ESG
development of sustainable cities performance in the days to come.
In 2021, we pledged our intent by developing a 35,000 sq. ft of
to set a science-based target on sustainable oases in Bengaluru Amit Chadha
carbon emission reductions in line and Vadodara, besides offering CEO & MD
with the SBTi’s criteria. A company- technology solutions for targeted L&T Technology Services Limited
wide exercise was undertaken to skill building initiatives.
formulate a sustainability roadmap
15LEVERAGING TECHNOLOGY TO STAY
AHEAD OF THE SUSTAINABILITY CURVE
Amidst the rapidly evolving global industrial scenario, LTTS has identified six strategic
areas to drive business agility. We believe that these strategic areas, which include
Sustainability, will help our global customers become nimbler in this dynamic scenario.
Our strategic priorities are centered around recognizing the key emerging technology
trends well in advance and setting the pace for their subsequent adoption.
OUR BIG SIX STRATEGIC AREAS
1 2
ELECTRIC AUTONOMOUS
CONNECTED VEHICLES (EACVs) 5G
The EACV revolution is speeding up, with The fifth generation of telecom services aspires
product lifecycle management playing a pivotal to ensure that services based on advanced
role in this area. By streamlining the process technologies, such as Augmented Reality (AR)
of product design and managing relationships or Virtual Reality (VR), become easily available
with OEMs, the latest developments in the anywhere, anytime. Some of the unique services
industry can be leveraged for optimum results. expected from 5G include gigabit connections,
The EACV trend plays a crucial role in driving ultra-low latency and widespread IoT
mobility innovation with the help of safe, connection. Initiatives in this area will become
efficient and durable future solutions. increasingly important, especially for workforce
automation, on a global scale.
16ESG Report 2020-21
3 4
DIGITAL MANUFACTURING MEDTECH
The human-and-machine communication To ensure speed, convenience and better care
ecosystem of Industry 4.0 has enabled for patients, modern healthcare providers will
manufacturers to increase operational heavily lean on digital tools to strengthen their
visibility, reduce costs, optimize production delivery models. Digital connectivity will play an
time, and deliver exceptional customer essential role in ensuring health and well-being
support. Manufacturers operating in the new for all. Healthcare providers will strengthen
normal scenario need remote technologies partnerships with engineering and technology
to assist operations on the shop floor, companies to offer remote solutions for the
thus unleashing novel opportunities for benefit of patients.
engineering and technology firms.
5 6
AI & ML DRIVEN SMART OFFERINGS SUSTAINABILITY
Artificial Intelligence (AI) is the brain behind The concept of sustainability, emerging increasingly
the technologies that are changing how we as the core of business strategies in the modern
live, work and play. Repetitive and labor- era, hinges on minimizing resource consumption,
intensive operations can benefit from AI- managing waste, and mitigating the overall
powered automation, leading to increased environmental impact. Organizations looking to
uptime and standardized output. The use increase competitiveness and maintain stakeholder
of Machine Learning (ML) is also increasing goodwill are paying attention to the proactive
rapidly as organizations adopt smart systems implementation of sustainable practices, such
for better service delivery and higher as measuring emissions and energy use, and
production efficiency. then devising the best methods of shrinking the
carbon footprint of each business function - from
procurement to manufacturing to warehousing.
17STAKEHOLDER ENGAGEMENT
AND MATERIALITY
“In recent times, we have seen a seismic shift in the needs and demands of
all our stakeholders. In the pursuit of achieving the Company’s goals and
stakeholder expectations, our operations have evolved efficiently. Being
a technology services organization, we live and breathe technology and
innovation. We have performed well in our operations especially in our
utilization ratios, C&B costs, rise in investments in innovation labs, patents
and customer satisfaction.
Our sustainable operational framework is founded on 4 key tenets, viz.,
celebrating technology every day, excel and obsess on customer delivery
excellence, belief in nurturing our ever-evolving talent demographics
and investing in cognitive systems. These tenets help us remain relevant
and flourish in today’s world. We believe that we are primed for the next
Mr. Abhishek Sinha big leap by focusing on the six strategic big bets, viz. EACV’s, 5G, Digital
COO & Whole Time manufacturing, MedTech, AI/ML and Sustainability. Our recent large deal
Director
wins showcase our conviction in this aspect. We are of firm belief that
carbon neutrality and preserving resources for the future generations
is extremely important for a sustainable growth. Towards this, our
sustainability offerings in green product compliance, renewable and
energy management, light weighting, zero discharge and green sourcing
have an exponential growth potential.”
– Mr. Abhishek Sinha, COO and Whole Time Director
POWERING SUSTAINABILITY THROUGH STAKEHOLDER ENGAGEMENT
The LTTS success story, be it we have mapped and prioritized our business horizons to improve
across business operations or significant material issues that our non-financial performance. The
its sustainability agenda, derives have potential to further enhance frequency of engagement with our
from the collective and individual value for our stakeholders. We stakeholders is based on need-
contribution of its external and have internalized the process of based timelines.
internal stakeholders. Sustained value listening to our stakeholders and
While this is our first Sustainability
creation for the stakeholders is a key procuring their feedback by creating
Report, we have already taken
priority for the Company. a comprehensive mechanism. This,
several significant steps towards
in turn, will help us improve our
driving stakeholder engagements
Being dedicated to the highest understanding of their needs and
worldwide.
standards of ethics and transparency, aspirations, and enable us to expand
Stakeholders Significance to Business Engagement Mode
Employees Key
Assets in delivering operational Multiple forums
capabilities Transparent
Performance Management Systems
Deliver
business goals and targets Welfare
initiatives for the employees
Internal
circulars to update about the organizational
development/changes in the organization structure
Career
development initiatives for all employees
In-house
Magazines and CSR programs involving employees
18ESG Report 2020-21
Stakeholders Significance to Business Engagement Mode
Communities Social Responsibility Communities
/ Group meetings
Corporate Reputation Annual
CSR Report
Collaboration
and partnerships with NGOs, academic
institutions, rural development organizations
Customers Key
Stakeholders for Business Customer
Satisfaction Surveys
Growth and Profitability Regular
business interactions
Customer
Experience Centers
Partners and Facilitators
for Business Solutions/ Supplier
Code of Conduct
Suppliers Services Business
meetings and interactions
Business
Growth Partnerships Feedback
and Supplier reviews
Regulators/ Provide
regulatory framework Press Releases
Government (taxation, licensing, infrastructure, Quarterly Results
economic playing field) for growth A nnual Reports
Partnerships
across development Annual
CSR Reports
initiatives Partnerships
in CSR developmental programs
Investors and F inancial sustainability Regular
updates and investor meetings
Shareholders Provide
critical assessment of AGMs
management competencies A nnual Reports
Influence
business valuations Quarterly
Investor Releases
Influence
mitigation of key risks Dedicated
investor contact channels
Market trends Press Releases
Annual
CSR Report
MAPPING OUR ESG PROGRESS TO MATERIAL TOPICS
We have followed the GRI Standards plans. We have relied on various expertise and unique perspectives
process to identify key material topics, communication channels to connect of our senior leadership across key
based on the significant economic, to our stakeholders, as part of departments, we have used the
social and environmental impacts our continuous improvement inputs derived from these channels
that were of prime significance to process, across various teams and to prepare a list of material issues of
our stakeholders and our growth departments. Coupled with the importance to various stakeholders.
Our Materiality Assessment Process:
Business Perspective Stakeholder Identification Materiality Assessment
Defining the Materiality
Identifying key economic, Prioritization of issues
process using GRI environmental and with top management
framework and other social concerns of prime and internal stakeholders
ESG frameworks stakeholders that of the Company
Analysis of key risks and
significantly influence their Prioritization based
issues relevant to the assessments or decisions on importance of
Industry and the Company Local community issues to both business
Selection of topics
interaction sustainability and
influencing or impacting to stakeholder influence
business and stakeholder
concerns
19As part of the process, we have also ensured that the prioritized material topics are relevant to the global business
outlook, as well as the changing stakeholder perceptions.
The prioritized material topics reviewed and approved by the senior leadership of LTTS as follows:
ENVIRONMENTAL SOCIAL ECONOMIC VALUE CUSTOMER
FOOTPRINT RESPONSIBILITY & CORPORATE VALUE
GOVERNANCE
Energy consumption Employees Economic performance Service quality
Diversity & inclusion & delivery
Talent management New business
Climate change and Training and upskilling opportunities Customer satisfaction
GHG impact Employee health & well-being
Business ethics &
Data privacy &
anti-corruption
Water consumption Community Development security
STEM education for
disadvantaged communities Business innovation &
Waste processing Community empowerment digitization
MEMBERSHIPS AND ASSOCIATIONS
The Company actively participates in various industry forums, and engages with professional bodies to take part in
proactive dialogue in order to strengthen its understanding of policies and expectations of various stakeholders.
Member of the India Electronics & Semiconductor
excellence in the industry and scientific communities.
Association (IESA) Our senior leadership team offers its expertise and
Member of the NASSCOM ER&D Council that seeks
insights during public policy formulation.
to create an eco-system of collaboration and
innovation that will propel India’s burgeoning ER&D LTTS thought leaders are also helping achieve regulatory
sector into the next phase of growth compliances across passenger safety, autonomous
drive, and electrification through ISO 26262 - the global
Member of the Confederation of Indian Industry (CII)
standard which classifies safety integrity levels based on
Collaboration with the IEEE (Institute of Electrical
severity of the fault. In addition, we assist automotive
and Electronics Engineers) and participation in manufacturers in reducing the cost and time required for
events organized by the technology body ISO 26262 compliance.
Ongoing relationship with FICCI for various
measures to promote trade & commerce We have also assisted OEMs and Tier 1 suppliers in
achieving functional/process safety compliance, while
We collaborate actively with leading industry bodies helping them in the development and improvement of
worldwide to promote innovation and engineering software-intensive products.
20ESG Report 2020-21
AWARDS AND INDUSTRY RECOGNITION
Our sustainability-led business philosophy has been recognized and endorsed by
leading industry bodies and other organizations. This is evidenced in the various awards
and recognitions we have received through the year.
S
tevie 17th International Business Awards:
Brand Experience of the Year (Gold)
S
tevie 17th International Business Awards:
Most Innovative Tech Company of the Year (Silver)
S
tevie 17th International Business Awards:
Most Exemplary Employer
(Silver – COVID Response Category)
S
tevie 5th Great Employer Awards: Most Innovative
Workplace Redesign
(Silver – COVID Response Category)
LTTS won the SHRM HR Excellence Awards 2020
LTTS has been ‘Highly Commended’ Brandon Hall HCM Excellence Award for Excellence in
by 2020 Transform Awards Nordics in the Best Advance in Talent Acquisition Process
Brand Evolution Category
LTTS’ i-BEMS TM framework was the recipient of
LTTS awarded with the Financial Express Frost & Sullivan’s Customer Value Leadership
BrandWagon Ace Awards 2020 for Best Workplace Award for Global Smart Building Optimization &
Practices Experience Management
LTTS’ Chest rAI & i-BEMS digital solutions have been LTTS won the Golden Bridge Awards
recognized with the 2021 BIG Innovation Awards in in North America for Exceptional HR Program
the ‘Product’ category
LTTS recognized as Top Performer by
Recognized as one of the ‘Most Admired Brands’ in Government of India’s STPI
Indian ICT Industry for the year 2020 by VARINDIA
LTTS honored with the ‘Company of the Year’ in the
LTTS wins India Digital Enabler Awards 2020 Best Medical Devices Equipment category by CIMS
in ‘Best Technology for Healthcare’ Medica for three-part hematology analyzer
Confederation of Indian Industry (CII) honored LTTS
with the HR Excellence Awards 2020
For its Solar Electrification tribal village project,
LTTS was conferred with the Mahatma Award for
CSR Excellence
LTTS conferred with TechCircle Business
Transformation Award 2020
21LEADING THE LTTS
SUSTAINABILITY JOURNEY
As a responsible corporate, we have committed ourselves to doing business in an
ethical and transparent manner that will promote a better life, for now and in the
future, while complying with the existing legal framework. We believe in governing
the organization in a way that promotes sustainability by adhering strictly to laws that
promote sustainable behavior and practices.
GOVERNANCE &
ETHICS FRAMEWORK
Our corporate governance framework reflects the
LTTS value system and culture. In line with our parent
L&T Group philosophy, we firmly believe in adhering
to good corporate governance practices and values
based on transparency, integrity, professionalism and
accountability.
We have adopted a consolidated Code of Conduct,
wherein Part A is for its employees including the
Managing Director and the Executive Directors, and
Part B is for members of the Board and the Senior
The Company has a strong
Management. legacy of fair, transparent and
We have also adopted a Code of Conduct for our ethical governance practices.
Non-Executive Directors, which includes a Code of Our Board of Directors, along
Conduct for Independent Directors.
with the various responsible
Further, to strengthen the corporate governance organization-level committees,
culture within the Company, we have initiated a
training and awareness program on Corporate possess significant experience,
Governance and related policies for our employees. diverse skills and deep expertise,
As part of the Director’s familiarization program, spanning industries. This enables
we facilitate training programs, including seminars
and conferences, that help in enhancing the role of them to provide the requisite
independent directors. leadership and guidance to the
senior management team, and to
Our policy is to have an appropriate mix of Executive,
Non-Executive & Independent Directors. As on effectively direct, supervise and
March 31, 2021, the Board comprises 10 Directors, closely monitor the performance
of whom 3 are Executive Directors, 2 Non-Executive of the Company.
Directors and 5 are Independent Directors, including
one woman director. The Board is chaired by
Mr. A. M. Naik, Non-Executive Chairman.
22ESG Report 2020-21
PERFORMANCE EVALUATION OF BOARD, the Board’s composition, its structure, its culture, its
ITS COMMITTEES AND DIRECTORS effectiveness, its functioning, information availability,
adequate discussions etc. These questionnaires also
The Nomination and Remuneration Committee, as
cover specific criteria and the grounds on which all
well as the Board, have laid down the manner in which
directors, in their individual capacity, will be evaluated.
formal annual evaluation of the performance of the
Evaluation of Independent Directors was done by the
Board, Committees, Chairman and Individual Directors
Board, including assessment of their performance and
has to be made. All Directors responded through a their independence of management.
structured questionnaire, giving feedback about the
performance of the Board, its Committees, Individual The Board Performance Evaluation activity was
Directors and the Chairman. The Company had engaged discussed in the Independent Directors Meeting held
an external agency to facilitate the process of annual on April 30, 2021; this included areas of improvement
evaluation of the performance of the Board, the for the Directors, Board processes and related issues,
Committees, the Chairman and the Individual Directors. for enhanced Board effectiveness. The performance
The said external agency was responsible for receiving evaluation of the Board, its Committees, Chairman
the responses from the Directors, for consolidating and and Directors was also reviewed by the Nomination
analyzing their responses, and presenting the same and Remuneration Committee and the Board of
to the Chairman of the Nomination and Remuneration Directors, in their meetings held on May 3, 2021, which
Committee. The external agency used its IT platform showcased the strengths of the Board, and areas of
for the entire Board evaluation process, right from improvement that had taken place in comparison to
initiation till conclusion, in order to ensure that the the evaluation findings of FY20. The observations made
entire process is done in a confidential, transparent during FY20 were acted upon appropriately. Overall, the
and independent manner, without the involvement Board expressed its satisfaction on the performance
of the Management or the Company’s IT system, to evaluation process, as well as performance of Chairman,
ensure an unbiased feedback. The questionnaires cover Directors, Committees and Board as a whole.
23OUR BOARD OF DIRECTORS
Company, with unprecedented acumen. He has also been honored
weightage for IT and IT-related for his contribution to society and
technology services. He is the community in the critical sectors of
architect of a transformation that healthcare, education and skill-
saw the organization restructure building. Awards won by Mr. Naik
its portfolio, focusing on carefully include the nation’s highest civilian
curated business lines, accelerating honors – the ‘Padma Vibhushan’
the pace of growth, and boosting and the ‘Padma Bhushan’, and the
shareholder value many times highest award from the state of
over. In recognition of his role in Gujarat – the ‘Gujarat Garima’. He
Mr. A. M. Naik propagating the development of has been named ‘Business Leader
Founder Chairman technical and vocational skills, the of the Year’ by The Economic Times,
Government of India appointed ‘Asia Business Leader’ by the TV
Mr. Naik as Chairman of the National channel CNBC Asia, and ‘Business
Mr. A. M. Naik is the Founder Skill Development Corporation. Leader of the Year (Building India)’ by
Chairman of LTTS. He is also the He is the recipient of some of the NDTV Profit. He is the Hon. Consul
Chairman of the L&T Group of most prestigious national and General for Denmark in Mumbai,
Companies – the Group that he international awards, and has won and was honored as a ‘Knight of the
has served for over five decades recognition from academia and Order of the Dannebrog’, followed
and led for the last two. Mr. Naik is professional associations as well by a further honor, ‘Order of the
credited with initiating the process as the media for his leadership, Dannebrog Knight 1st Class’, by
of articulating a new vision for the engineering expertise and financial Queen Margrethe of Denmark.
Limited. Mr. Subrahmanyan, or pre-eminence on various industry
SNS as he is popularly known in bodies, construction institutions
industry circles, took over the reins and councils. Recognized as the
in July 2017, having previously, ‘Contractor CEO of the Year’ at
as Deputy Managing Director the Qatar Contractors Forum
and President, L&T, headed the & Awards function in 2014 in
construction business of the Group. Doha, SNS was ranked 36th in the
At the helm, SNS leads the varied ‘2014 Construction Week Power
businesses of L&T to chart a new 100’, and accorded the Leading
growth trajectory, leveraging the Engineering Personality award at
Mr. S. N. Subrahmanyan potential of digitalization, big data, the event ‘Glimpses of Engineering
Vice-Chairman and predictive analytics that he Personalities’ by the Institution of
drives internally with consistency Engineers (India). The Construction
and meticulous planning. With a Week magazine honored him as
Mr. S.N. Subrahmanyan is Vice degree in civil engineering and the ‘Infrastructure Person of the
Chairman of LTTS, as well as post-graduation in business Year – 2012’. SNS has been conferred
the Chief Executive Officer and management, SNS commenced his the Emergent CEO Award at the
Managing Director of Larsen & professional journey with L&T in CEO Awards 2019 for his exemplary
Toubro Limited. In addition, he is 1984 as a project planning engineer. leadership and delivering seamless
Vice Chairman on the Board of He was largely responsible for growth for L&T, and recognized as
Larsen & Toubro Infotech Limited establishing L&T as a significant the CEO of the Year by leading Indian
and Non-Executive Chairman EPC player in the Middle East, Africa news channel, CNBC-Awaaz in 2020.
of L&T Metro Rail (Hyderabad) and ASEAN. SNS holds positions of
24ESG Report 2020-21
of business operations, delivery, high-profile Initial Public Offering
and sales and marketing at LTTS, (IPO) in India and successfully
and preparing the technology listing it on the National Stock
roadmap for the Company’s future. Exchange and the Bombay Stock
Mr. Chadha led LTTS’ executive Exchange. Mr. Chadha’s career,
management team that oversaw which spans over two decades in
the organization’s business and core engineering and information
strategy implementation. Mr. Chadha technology outsourcing, is marked
has always been passionate about with significant achievements. He
helping global R&D customers and has managed P&L for multiple
Mr. Amit Chadha Fortune 500 companies leverage business units, spearheaded
Chief Executive Officer & LTTS’ digital engineering offerings organization-wide strategic
Managing Director for their strategic differentiation and initiatives, and led business
product development. He joined development and relationship
LTTS in 2009 as the Business Head management activities worldwide.
Mr. Amit Chadha is the Chief of Americas. Over the years, he has Mr. Chadha is an electrical and
Executive Officer & Managing progressively taken on increased electronics engineer who has done
Director of LTTS, responsible for responsibility for the Company’s his Global Business Leadership
providing business and technology business worldwide, and helped Executive Program with Harvard
leadership, market direction in its growth, both organically Business School Publishing. He has
and strategic vision to drive the and via acquisitions. As a core also done an Advanced Management
Company’s performance. Mr. Chadha member of the LTTS leadership Program in Business Leadership
was previously Deputy CEO & Whole team, Mr. Chadha was instrumental from INSEAD, France. Mr. Chadha is
Time Director, running the gamut in driving the Company through a currently based in Washington DC.
Mr. Abhishek Sinha is the Chief LTTS, Mr. Abhishek was the Chief
Operating Officer (COO) and Whole Operations & Personnel Officer and
Time Director at LTTS, focusing on Executive Board Member at KPIT,
quality, cost-efficient delivery, and where he was responsible for laying
client and employee satisfaction. Key out the operational framework
vertical and horizontal functions roll and operational governance of
up to him. A professional with over all businesses within KPIT to help
two decades of industry experience, in achieving profitable growth. In
Mr. Abhishek has a demonstrated the past, Mr. Abhishek was the
track record in Business Leadership Vice President and Global Head
Mr. Abhishek Sinha in both Engineering and Enterprise for Product Engineering Services
Chief Operating Officer and Software areas. His key strengths (PES) at KPIT. After graduating in
Whole-Time Director are making the business competitive engineering from the Banaras
through strategy formulation and Hindu University (now IIT-BHU),
execution, operational excellence, Mr. Abhishek joined Infosys in 1993
and talent leadership. Clients, and worked there till 2013. During
peers, senior leaders and the team his tenure and leadership, the
respect him for his commitment to ER&D business at Infosys witnessed
driving results and transforming one of the fastest growth periods
concepts to reality. Prior to joining for its business.
25Dr. Panda is a Non-Executive Exchange and the Bombay Stock
Director on the Board of LTTS. He Exchange. He transformed LTTS into
was previously the Chief Executive a company focused on innovation
Officer and Managing Director of and new technology, leading CII to
LTTS. Dr. Panda has over 31 years recognize the Company as one of the
of global industry experience in most innovative Indian companies
research, conceptualizing, creating, in the Services category. Dr. Panda
operationalizing and turning around obtained a graduate degree in
complex technology and engineering Aeronautical Engineering from
services businesses. During his stint Anna University, Chennai, and a
Dr. Keshab Panda as the CEO of LTTS, Dr. Panda has postgraduate degree in Aerospace
Non-Executive Director won numerous accolades, including Engineering from Indian Institute of
being recognized as CEO of the Year Science, Bangalore. He obtained his
by leading news channel CNBC- Doctor of Philosophy from the Indian
Awaaz as a result of his distinguished Institute of Technology, Bombay,
contributions to the engineering and in Aero Servo Elasticity – (Control
technology sectors over the past system fly by wire aircraft). He also
3 decades. He was conferred with holds an advanced management
the title of CEO of the Year by ET degree from the Aresty Institute of
NOW, as well as the Business Leader Executive Education, The Wharton
of the Year Awards Committee. School, University of Pennsylvania.
Dr. Panda joined the L&T Group as Dr. Panda started his career as a
Chief Executive of L&T IES in 2009. Research Scientist in Indian Space
After L&T IES was rechristened as Research Organization and worked
L&T Technology Services in 2012, at the Aeronautical Development
Dr. Panda was appointed as the Chief Agency, Ministry of Defence,
Executive; he was later appointed Government of India, as a scientist/
as the Chief Executive Officer and engineer for over 8 years. Dr. Panda
Managing Director of LTTS on is based out of New Jersey, USA.
January 21, 2016. Dr. Panda led His other previous leadership
L&T Technology Services through roles include President – Americas,
a high-profile Initial Public Offering Mahindra Satyam & Head of Europe
(IPO) in India and successfully listed Operations, Satyam Computer
the Company on the National Stock Services Limited.
26ESG Report 2020-21
Luis, with his wife Fiona, spends his He has been involved in setting up
time connecting dots – leveraging two highly successful companies
their extensive networks to help – HDFC Bank and IDFC Private
organizations they are connected Equity. HDFC Bank is India’s most
with. Fiona and Luis are also valuable bank today. Luis stepped
#LivingMyPromise signatories, down as CEO of IDFC Private Equity
where they have pledged to give in 2010. In 2009 IDFC Private
away at least 50% of what they have Equity was awarded Best Private
to charity during their lives or in Equity Firm in India by Private
their wills. Equity International and Asian
Mr. Luis Miranda Infrastructure Fund Manager of the
Independent Director Luis serves on the board of Educate
Year by Infrastructure Investor.
Girls and SBI Foundation, is
Chairman of ManipalCigna Health Luis blogs for Forbes, Thrive
Insurance, and a Senior Advisor Global, and Spontaneous Order,
Mr. Luis Miranda is Chairman & at Morgan Stanley. He is Trustee, and teaches at the Accelerated
Co-Founder of the Indian School of University of Chicago Trust in Development Program of Chicago
Public Policy. He is also Chairman India and a member of the Global Booth. He has received an MBA
of the Centre for Civil Society and Leaders Group and the Advisory from the Booth School of Business
CORO and co-founder of Take Council of the Rustandy Center for at The University of Chicago, and
Charge, a mentoring program for Social Sector Innovation at Chicago is a member of the Institute of
Catholic youth in Mumbai. Booth. Chartered Accountants of India.
Note:
Mr. Luis Miranda has been appointed as Independent Director with effect from October 19, 2021. Mr. Samir T. Desai has resigned
as Independent Director with effect from 26th August 2021.
Egypt. The Group is engaged in beyond the confines of corporate
key business sectors – Chemicals management, in areas of health,
(including Specialty Chemicals), social welfare, education and sports.
Engineering (Products and Steel He is the Managing Trustee of The
Castings) and Shipping. He is the Indian Education Trust that runs two
Honorary Consul General of Greece schools in Chennai. He is also the
in Chennai. As a spokesman of President of Bala Mandir Kamaraj
industry and trade, he is a former Trust, Chairman of Madhuram
President of Confederation of Indian Narayanan Centre for Exceptional
Industry (CII) and has participated Children, and a Trustee of WWF-
Mr. Narayanan Kumar in other apex bodies. He is also India (World Wide Fund for Nature
Independent Director the Chairman of the Indo-Japan - India). Mr. Narayanan Kumar is an
Chamber of Commerce & Industry. Electronics Engineering Graduate
Further, he is on the Board of from Anna University, Chennai,
various public companies and and a fellow member of the Indian
Mr. Narayanan Kumar is an carries with him over four decades National Academy of Engineering.
Independent Director of LTTS. He of experience in the spheres of He is a fellow life member of The
is the Vice Chairman of The Sanmar Electronics, Telecommunications, Institution of Electronics and
Group, a multinational USD 1 billion Chemicals, Engineering, Technology, Telecommunication Engineers
conglomerate headquartered in Education, Management and and The Institute of Electrical and
Chennai, India, with manufacturing Finance. Mr. Narayanan Kumar has a Electronics Engineers, Inc.,
facilities in India, Mexico and wide range of public interests, going New York (IEEE).
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