The Taskforce on Inequality and Social-related Financial Disclosures (TISFD) has released the first draft of its disclosure framework, aimed at helping companies identify, assess, and report on the impacts, dependencies, risks, and opportunities related to people, including issues such as human rights and inequality.
Established in early 2025, the TISFD builds on the foundations laid by the Task Force on Climate-related Financial Disclosures (TCFD) and the Taskforce on Nature-related Financial Disclosures (TNFD). The initiative was created to strengthen the integration of people-related considerations into financial reporting. According to the TISFD, the draft framework responds to the growing recognition that inequality and broader social issues significantly influence business performance, investment outcomes, and the stability of economies and financial markets.
The framework is intended to support improved decision-making, investor transparency, and accountability among businesses and financial institutions. It also aims to promote greater alignment and reduce fragmentation across sustainability reporting standards. The draft has been designed to support interoperability with frameworks and standards such as the International Sustainability Standards Board (ISSB), Global Reporting Initiative (GRI), and European Sustainability Reporting Standards (ESRS), while maintaining structural alignment with the TCFD and TNFD to encourage integrated reporting across climate, nature, and social topics.
The proposed disclosure recommendations are based on five core requirements:
-
Materiality – organizations should disclose material information related to their people-related impacts, dependencies, risks, and opportunities.
-
System-relevant information – disclosures should address investor information needs regarding people-related externalities linked to system-level risks.
-
Stakeholder engagement – companies should explain how they engage with affected stakeholders, including through due diligence processes.
-
Scope – organizations are expected to outline the scope of their assessments and disclosures, the methodology used to determine scope, and future expansion plans.
-
Time horizons – preparers are encouraged to consider short-, medium-, and long-term horizons in their reporting.
The framework covers a broad range of topics, including human rights, labor rights, well-being, inequality, and human and social capital. Reporting is recommended across an organization’s own workforce, value chain workers, consumers, end-users, and affected communities.
Alongside the draft release, the TISFD has opened a public consultation period running until July 31, 2026. The organization stated that stakeholder feedback will play a key role in shaping future versions of the framework. The draft also identifies several priority areas for further development, including guidance on identifying system-level risks, assessment methodologies for businesses and financial institutions, scenario analysis, and the development of metrics and targets. The final TISFD framework is expected to be published in late 2027.
