The Taskforce on Inequality and Social-related Financial Disclosures (TISFD) announced today the release released the first draft version of its framework, designed to enable companies to understand and report on their businesses’ impacts dependencies, risks and opportunities related to people, encompassing issues such as human rights and inequality.
Launched in early 2025, building on the success of the Task Force on Climate-related Financial Disclosures (TCFD) and Taskforce on Nature-related Financial Disclosures (TNFD), the TISFD was founded to advance the integration of people-related issues into financial disclosure.
The TISFD said that the new draft framework was developed in response to “growing recognition that inequality and wider people-related issues are shaping business performance, investment outcomes and the stability of economies and markets,” and aimed at supporting better decision-making, investor insight, and accountability by businesses and financial institutions.
Simon Rawson, Executive Director of TISFD, said:
“Organisations are navigating a period of profound economic and social change. Across these shifts, inequality and wider people-related issues are increasingly shaping business performance, investment outcomes and the stability of economies and markets.”
The TISFD also said that the new draft is aimed at fostering greater harmonization and reducing fragmentation across global sustainability reporting standards, with the framework designed to support convergence with the International Sustainability Standards Board (ISSB), Global Reporting Initiative (GRI) and European Sustainability Reporting Standards (ESRS), and aligned structurally with the TCFD and TNFD frameworks, enabling a more integrated approach to disclosures across people, climate and nature.
The disclosure recommendations included in the new framework follow five general requirements, including Materiality, with a requirement for organizations to disclose material information about their people-related impacts, dependencies, risks and opportunities; System-relevant information, or “disclosures that meet the information needs of investors about people-related externalities relevant to system-level risks,”; Stakeholder engagement, describing how companies have engaged with affected stakeholders, including through due diligence; Scope, with preparers required to explain the scope of their assessment and disclosures, the process used in determining the scope, and plans for further expansion, and; Time horizons, with a recommendation for preparers to consider short-, medium- and long-term time horizons.
Disclosure topics covers areas ranging from human rights and labor rights and well-being to inequality and human and social capital, with reporting recommended covering impacts on the organization’s own workforce, workers in the value chain, consumers, end-users, and communities.
The TISFD said that it is launching a public consultation period with the release of the new draft, which will remain open through July 31, 2026, which it said will “play a central role in shaping future iterations of the framework.” The draft framework highlights priority areas for further development, including identifying key drivers of impacts relevant to system-level risks and related pathways, identification and assessment guidance for businesses and financial institutions, scenario analysis, and metrics and targets. The final TISFD framework is anticipated to be released in late 2027.
Peter Bakker, Co-Chair of TISFD and President and CEO of the World Business Council for Sustainable Development, said:
“Businesses perform best in societies that are stable, productive and able to support sustainable growth. This framework helps organisations better understand how their relationships with workers, consumers and communities shape resilience, performance and long-term value creation. It represents an important step towards making people-related considerations more visible in business and investor decision-making.”
Click here to access the new draft framework and consultation.
