What SEBI asks, verbatim
Does the entity have processes in place to avoid / manage conflict of interests involving members of the Board? (Yes/No) If yes, provide details of the same
Disclose whether processes exist to ensure conflicts of interests involving Board members/KMPs are avoided or managed, with details of such processes.
Quoted from the SEBI BRSR Format as amended March 2025, with measurement guidance from the ICAI Background Material on BRSR, Revised Edition 2024, page 93.
In plain English
Check if the company has rules to stop or handle any conflict of interest that could involve board members or key management people. If the answer is yes, give a brief description of those rules. The information usually comes from the company’s internal governance policies or board meeting minutes.
What a complete, assurance-ready answer contains
A complete, assurance‑ready answer confirms the existence of formal conflict‑of‑interest policies, explains the governance framework (e.g., board committees, disclosure procedures, and recusal mechanisms), and cites the frequency of policy reviews and training sessions. It should provide a concise summary of the policy text, the reporting lines for disclosures, and the audit trail of any identified conflicts and their resolutions. A common gap is omitting the evidence of policy enforcement, such as minutes or signed declarations, which assurers look for to verify that the processes are actively applied.
Describes the completeness and granularity an assurer expects. No company figures are named.
Where the data comes from
Usually found in board records and compliance registers. Forward to your Company Secretary or Legal team.
Much of what BRSR asks for already exists in filings the company makes elsewhere, such as Pollution Control Board consents, PAT returns, hazardous-waste manifests and EPR registrations. The free gap analysis cross-references those filings against all 108 fields and shows which are already covered.
Frequently asked questions
What does BRSR P1-L2 ask for?
Check if the company has rules to stop or handle any conflict of interest that could involve board members or key management people. If the answer is yes, give a brief description of those rules. The information usually comes from the company’s internal governance policies or board meeting minutes.
Is BRSR P1-L2 an Essential or a Leadership indicator?
P1-L2 is a Leadership indicator, so it is voluntary. Leadership indicators apply to companies that have been filing BRSR for three or more years, or that are in the top 1000 listed companies. A first-time filer can leave it out.
Who inside the company holds the data for P1-L2?
Company Secretary / Legal. Usually found in board records and compliance registers. Forward to your Company Secretary or Legal team.
What unit does P1-L2 use?
Yes/No + narrative. Reporting in the wrong unit, or switching the denominator of an intensity ratio between years, is one of the more common reasons a figure has to be restated.
What does a complete answer to P1-L2 look like?
A complete, assurance‑ready answer confirms the existence of formal conflict‑of‑interest policies, explains the governance framework (e.g., board committees, disclosure procedures, and recusal mechanisms), and cites the frequency of policy reviews and training sessions. It should provide a concise summary of the policy text, the reporting lines for disclosures, and the audit trail of any identified conflicts and their resolutions. A common gap is omitting the evidence of policy enforcement, such as minutes or signed declarations, which assurers look for to verify that the processes are actively applied.
Other disclosures under Principle 1
% of board, KMPs, employees and workers trained on the ESG principles this year
Fines, penalties or settlements paid to regulators or courts this year (in Rs, and count)
Of those fines, which have been appealed (case details)
Do you have an anti-corruption / anti-bribery policy? (Yes/No + web link)
Number of directors, KMPs, employees or workers disciplined for bribery / corruption
Number of conflict-of-interest complaints
See P1-L2 against a real client
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