The Taskforce on Inequality and Social-related Financial Disclosure (TISFD) is a global initiative allowing businesses to identify, analyze, and report on their inequality and social-related risks, opportunities, and impacts. Anticipated to launch in September 2024, the Taskforce has established a stakeholder working group of more than 20 organizations across the public, social, and private sectors.
The TISFD aims to deliver the following outcomes:
Companies and financial institutions understanding their impacts and dependencies on people, and strengthening their identification, measurement, management, and disclosure of inequality and social-related impacts, along with the associated financial risks and opportunities.
Financial institutions recognizing inequality as a system-level risk (and missed opportunity, considering the benefits of reducing inequality), understanding the aggregate impacts of both investees and their own activities on inequalities, and integrating this understanding in their assessment of financial risks. This includes how they allocate and price capital, engage with investees, and structure investments.
Standard-setters and policymakers embedding TISFD recommendations in reporting standards and laws, fostering global harmonization.
Benchmarking and rating providers improving the accuracy and relevance of social-related benchmarks and ratings.
Civil society organizations being able to hold companies and financial institutions accountable for how they address inequality and social-related issues.
Governments, financial supervisors, and macroprudential authorities using disclosures to formulate more effective policies and strategies for safeguarding societies and financial systems.
The TISFD will be governed by several key groups, including the Secretariat, Working Groups, the Alliance, the Stewardship Council, and the Steering Committee. These groups will ensure the Taskforce’s mission is carried out effectively and transparently.
Given the presence of the Taskforce on Climate-related Financial Disclosures (TCFD) and the Taskforce on Nature-related Financial Disclosures (TNFD), TISFD will need to maintain the approaches of these other Taskforces while addressing specific inequality and social-related issues.
