L&T Finance Ltd

### 4. Governance Mechanism

The CSR & ESG Committee is responsible for reviewing and overseeing implementation of the Policy. A summary of the process is presented in Diagram 1. Detailed Terms of Reference for the ESG Governance focal points is provided in Annexure I. [...] **Annexure - I**

**Terms of Reference for the ESG Governance focal points**

1. Board of Directors – CSR & ESG Committee

- Formulation of action plan/ guidelines/policies with regard to Sustainability / ESG

- Reviewing implementation of the action plan

- Approving the Sustainability Report

**2. L&T Finance Sustainability Team**

- Create an organisation-wide awareness around sustainability framework and take cognizance of what vital role sustainability plays in today's global scenario.

- Develop strategy for embedding sustainability into businesses and processes.

- Appropriate implementation of sustainability initiatives along with businesses/functions in line with strategy.

- Continually monitor and communicate the outputs and outcomes of sustainability initiatives to relevant internal stakeholders.

- Act as an interface with external parties on sustainability framework and disclosures thereof.

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]We believe policy advocacy is an important step for driving climate change strategy across the value chain. As a part of it, we focus on developing methodologies and sharing knowledge on climate change through the publication of white papers. We also share these information-based papers with relevant think tanks and NGOs.

Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement?[…]Yes

Describe the process(es) your organization has in place to ensure that your external engagement activities are consistent with your climate commitments and/or climate transition plan?[…]We believe policy advocacy is an important step for driving climate change strategy across the value chain. As a part of it, we focus on developing methodologies and sharing knowledge on climate change through the publication of white papers. We also share these information-based papers with relevant think tanks and NGOs.