What SEBI asks, verbatim
Percentage of R&D and capital expenditure (capex) investments in specific technologies to improve the environmental and social impacts of product and processes to total R&D and capex investments made by the entity, respectively
Disclose R&D and Capex amounts/percentages for current and previous FY, with details of improvements in environmental and social impacts.
Quoted from the SEBI BRSR Format as amended March 2025, with measurement guidance from the ICAI Background Material on BRSR, Revised Edition 2024, page 95.
In plain English
It asks a company to show what portion of its research and development spending and its capital spending goes into technologies that make its products or processes better for the environment and for people. The company should give the dollar amounts and the percentages for the current year and the previous year, and explain how those investments improve environmental or social outcomes. This information is usually taken from the company’s finance and sustainability reports.
What a complete, assurance-ready answer contains
A complete, assurance‑ready answer lists the total R&D and capex amounts for the current and prior fiscal year, then provides the dollar or percentage allocation to each technology that demonstrably improves environmental or social outcomes, such as renewable energy, waste‑reduction, or inclusive design. Assurers look for a clear mapping of each investment to a specific impact metric, a brief narrative of the expected or achieved benefit, and a reconciliation showing how the summed percentages equal the disclosed totals. A common gap is omitting the baseline or target against which the impact improvements are measured, leaving the relevance of the investments unclear.
Describes the completeness and granularity an assurer expects. No company figures are named.
Where the data comes from
Usually found in sourcing, product and lifecycle records. Forward to your Procurement or Product 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 P2-E1 ask for?
It asks a company to show what portion of its research and development spending and its capital spending goes into technologies that make its products or processes better for the environment and for people. The company should give the dollar amounts and the percentages for the current year and the previous year, and explain how those investments improve environmental or social outcomes. This information is usually taken from the company’s finance and sustainability reports.
Is BRSR P2-E1 an Essential or a Leadership indicator?
P2-E1 is an Essential indicator, so it is mandatory for every BRSR filer. It sits under Principle 2, Products & Services.
Who inside the company holds the data for P2-E1?
Procurement / Product. Usually found in sourcing, product and lifecycle records. Forward to your Procurement or Product team.
What unit does P2-E1 use?
percentage. 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 P2-E1 look like?
A complete, assurance‑ready answer lists the total R&D and capex amounts for the current and prior fiscal year, then provides the dollar or percentage allocation to each technology that demonstrably improves environmental or social outcomes, such as renewable energy, waste‑reduction, or inclusive design. Assurers look for a clear mapping of each investment to a specific impact metric, a brief narrative of the expected or achieved benefit, and a reconciliation showing how the summed percentages equal the disclosed totals. A common gap is omitting the baseline or target against which the impact improvements are measured, leaving the relevance of the investments unclear.
Other disclosures under Principle 2
Do you have sustainable sourcing? If yes, % of inputs sourced sustainably
How you reclaim / recycle / dispose products at end-of-life (plastics, e-waste, hazardous, other)
Does EPR apply to you? Is your waste plan in line with the EPR plan filed with the PCB?
Have you done a Life Cycle Assessment (LCA) on any product / service? (Yes/No + details)
Any major social / environmental risks from your products found via LCA, and action taken
% of recycled or reused input material used in production (by value)
See P2-E1 against a real client
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