Principle 2 asks whether the business makes and delivers its products and services sustainably and safely. It covers cleaner-technology investment, sustainable sourcing, safe end-of-life reclaim and Extended Producer Responsibility. Several of its disclosures are manufacturing-oriented, so the first job on a service-sector client is knowing which fields genuinely do not apply.
Key takeaways
- 01Principle 2 spans sourcing, product life-cycle, recycled inputs and end-of-life reclaim, owned mostly by Procurement and Product.
- 02The end-of-life reclaim (P2-E3), EPR (P2-E4) and packaging-reclaim disclosures are manufacturing-oriented; Saaksh marks them Not Applicable for service clients.
- 03P2-E4 (EPR) can often be answered straight from the EPR plan already filed with the Pollution Control Board.
- 04Life Cycle Assessment (P2-L1) is voluntary but a strong credibility signal for assurers and investors.
What Principle 2 asks
| Disclosure | What it asks | ICAI page |
|---|---|---|
| P2-E1 | Share of R&D and capex directed at improving the environmental and social impact of products and processes | 95 |
| P2-E2 | Whether sustainable-sourcing procedures exist, and the percentage of inputs sourced sustainably | 96 |
| P2-E3 | Processes to safely reclaim products at end of life: plastics, e-waste, hazardous and other waste | 97 |
| P2-E4 | Whether Extended Producer Responsibility applies, and whether the plan matches the one filed with the PCB | 97 |
| P2-L1 | Whether Life Cycle Assessments have been conducted for products or services | 99 |
| P2-L3 | Percentage of recycled or reused input material to total material used | 101 |
The remaining Leadership indicators cover the significant concerns surfaced by an LCA (P2-L2) and the tonnage and share of products and packaging reclaimed at end of life (P2-L4, P2-L5).
Who owns the data
Principle 2 is a Procurement and Product engagement
How to answer EPR (P2-E4) from a filing you already have
If your client is a producer, importer or brand-owner of plastic packaging or electronics, they have almost certainly filed an EPR registration and plan with the Pollution Control Board under the Plastic Waste or E-Waste Rules. P2-E4 asks whether EPR applies and whether the waste-collection plan matches that filing. So this is a pull, not a fresh collection: take the answer from the EPR plan and note the registration reference.
Best practice for Principle 2
- Conduct Life Cycle Assessments per ISO 14040/14044 for flagship products and pursue BIS Eco-Mark or CII GreenPro certification.
- Align packaging and product take-back with the EPR plan filed with the Pollution Control Board, and set a recycled-content target.
- Apply circular-design principles (Ellen MacArthur Foundation) and pursue Cradle-to-Cradle Certified where relevant.
- Adopt a Sustainable Procurement policy to ISO 20400 with time-bound sustainable-sourcing targets.
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