Tata Communications announced the adoption of a sustainability-linked loan (SLL) framework to align all future long-term debt financing with its environmental commitments. The initiative, a first of its kind in the sector in India, underscores the company's unwavering dedication to responsible business practices and sustainability leadership.

Unlike traditional loans, loans aligned to the SLL framework have margins tied to specific carbon emission reduction targets (or non-financial covenants), incentivising continuous improvement in sustainability performance. By linking its loan margins directly to environmental impact, Tata Communications aims to drive meaningful change while fostering a deeper integration of the Tata Group's overarching sustainability aspirations with its own capital structure.

The transparent and accountable approach also aims to attract sustainability-conscious capital from investors who share the company's commitment to environmental responsibility. By linking loan margins to measurable targets, it demonstrates a commitment to quantifiable results, allowing stakeholders to track progress and recognise milestones.