What SEBI asks, verbatim
a. Do you have a preferential procurement policy where you give preference to purchase from suppliers comprising marginalized / vulnerable groups? (Yes/No) b. From which marginalized / vulnerable groups do you procure? c. What percentage of total procurement (by value) does it constitute?
Disclose existence of preferential procurement policy, target groups, and percentage of total procurement from marginalized/vulnerable groups.
Quoted from the SEBI BRSR Format as amended March 2025, with measurement guidance from the ICAI Background Material on BRSR, Revised Edition 2024, page 148.
In plain English
The company must say whether it has a policy that prefers buying from suppliers that are from marginalized or vulnerable groups. It should list which groups those are and give the percent of total spend that comes from those suppliers. This info is usually taken from the company’s procurement or supplier diversity records.
What a complete, assurance-ready answer contains
A complete answer states “Yes” to the existence of a preferential procurement policy, then lists the specific target groups (e.g., women‑owned enterprises, Scheduled Castes, Scheduled Tribes, Persons with Disabilities, ex‑convicts, etc.) and provides the exact percentage of total procurement value that comes from these suppliers. Assurers look for a clear policy document reference, the methodology for calculating the percentage (e.g., value of purchases from target groups divided by total procurement value), and evidence of supplier classification records. A common gap is omitting the policy’s formal approval date or failing to show how the percentage is updated annually.
Describes the completeness and granularity an assurer expects. No company figures are named.
Where the data comes from
Usually found in CSR spend and project records. Forward to your CSR 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 P8-L3 ask for?
The company must say whether it has a policy that prefers buying from suppliers that are from marginalized or vulnerable groups. It should list which groups those are and give the percent of total spend that comes from those suppliers. This info is usually taken from the company’s procurement or supplier diversity records.
Is BRSR P8-L3 an Essential or a Leadership indicator?
P8-L3 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 P8-L3?
CSR team. Usually found in CSR spend and project records. Forward to your CSR team.
What unit does P8-L3 use?
Yes/No + 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 P8-L3 look like?
A complete answer states “Yes” to the existence of a preferential procurement policy, then lists the specific target groups (e.g., women‑owned enterprises, Scheduled Castes, Scheduled Tribes, Persons with Disabilities, ex‑convicts, etc.) and provides the exact percentage of total procurement value that comes from these suppliers. Assurers look for a clear policy document reference, the methodology for calculating the percentage (e.g., value of purchases from target groups divided by total procurement value), and evidence of supplier classification records. A common gap is omitting the policy’s formal approval date or failing to show how the percentage is updated annually.
Other disclosures under Principle 8
Social Impact Assessments (SIA) of projects done this year
Projects where Rehabilitation & Resettlement (R&R) is ongoing
How you receive and resolve community grievances (mechanism)
% of input material sourced from local / nearby suppliers (by value)
Wages paid to people employed in smaller towns (as % of total wage cost)
Actions taken to reduce negative social impacts found in the SIAs
See P8-L3 against a real client
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