# How do we answer the BRSR question on R&D and capex for sustainable technologies?

Canonical: https://senseible.earth/answers/brsr-rd-capex-sustainable-technologies

Principle 2, Essential Indicator 1 asks what percentage of your R&D spend and of your capex went into specific technologies that improve the environmental and social impacts of your products and processes, for this year and last, with a short note on the improvements. Divide qualifying spend by total spend for each.

## What the table asks

- Two rows: R&D and capex.
- Current and previous financial year percentages.
- Details of improvements in environmental and social impacts.

## What usually qualifies

- Waste heat recovery, efficient furnaces, motors and drives.
- Rooftop solar and other captive renewable power.
- Pollution control and water recycling.
- Product redesign that cuts material or energy in use.

## Keep the proof

Tag each purchase order and capital invoice to the project, and keep the project's expected energy or emissions saving. An assessor will ask why a line counts.

## Worked example

- Total R&D: Rs 2.0 crore; on a low-temperature dyeing process: Rs 0.5 crore. Share: 0.5 / 2.0 = 25%.
- Total capex: Rs 12 crore; on heat recovery and rooftop solar: Rs 3 crore. Share: 3 / 12 = 25%.
- Detail: heat recovery cut furnace oil use; solar replaced part of grid power.

## What Senseible does here

Senseible reads energy bills before and after a project, which supports the improvement detail with measured change. Reports are self-declared drafts.

- [BRSR reporting](https://senseible.earth/brsr-reporting)
- [BRSR requirements in India](https://senseible.earth/climate-intelligence/brsr-reporting-requirements-india)

Sources: [SEBI, Updated BRSR format (Annexure II to the 12 July 2023 circular)](https://www.sebi.gov.in/sebi_data/commondocs/jul-2023/Annexure_II-Updated-BRSR_p.PDF)

Last reviewed 2026-11-02.