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On May 26, the Taskforce on Inequality and Social-Related Financial Disclosures (TISFD) released The TISFD Framework: Recommendations for Disclosure of People-related Information by Businesses and Financial Institutions (Beta Version 0.1) (Executive Summary here) and opened a public consultation period through July 31, 2026.
According to the TISFD, the framework is intended to help businesses and financial institutions understand and report on their people-related impacts, dependencies, risks, and opportunities. The TISFD states that information on how organizations impact and depend on people—and how those relationships affect financial performance and long-term value creation—remains fragmented and difficult to compare globally. The framework is intended to provide a globally relevant disclosure framework that complements existing sustainability and financial reporting initiatives while addressing perceived gaps in current disclosure practices.
The framework is designed to:
- Contribute to harmonization and convergence by drawing on existing standards and frameworks, including ISSB Standards, GRI Standards, and the ESRS
- Adopt a “building blocks” approach so that it can be used as a standalone framework or alongside existing standards and practices
- Encourage integrated management and disclosure by recognizing the interconnectedness of people, nature, and climate
- Be “market usable,” with disclosures intended to be practical and decision-useful for preparers and users
The framework also establishes a common approach for evaluating people-related impacts, dependencies, risks, and opportunities. The TISFD describes impacts as the effects an organization’s activities and business relationships have on people, including human rights and inequalities, and dependencies as organizations’ reliance on workers, communities, and broader societal institutions. According to the TISFD, these impacts and dependencies can give rise to entity-level financial risks and opportunities and, when cumulative across organizations, may contribute to broader system-level risks.
Beta Version 0.1 also includes a first draft of the TISFD’s disclosure recommendations. Consistent with the structures used by the TCFD and TNFD, the draft recommendations are organized around four pillars: governance, strategy, impact and risk management, and metrics and targets. The recommendations are intended to support disclosure of how organizations identify, assess, and manage people-related impacts, dependencies, risks, and opportunities. The TISFD notes that recommended metrics and targets remain under development and will be included in future iterations of the framework.
The draft recommendations are supported by five general requirements:
- Materiality – disclosure of material information relating to people-related impacts, dependencies, risks, and opportunities
- System-relevant information – disclosure responsive to investors’ information needs regarding people-related externalities relevant to system-level risks
- Stakeholder engagement – disclosure regarding engagement with affected stakeholders, including through due diligence processes
- Scope – disclosure of the scope of assessments and reporting and how that scope was determined;
- Time horizons – consideration and disclosure of short-, medium-, and long-term time horizons.
The TISFD describes this release as an initial draft that will continue to evolve through consultation, pilot testing, and further development. Future work identified by the TISFD includes additional development of metrics and targets, identification and assessment guidance, scenario analysis, approaches to materiality, system-level risks, and the interconnectedness of people, nature, and climate. The TISFD’s roadmap contemplates additional framework iterations in 2026 and 2027, with a final framework expected in late 2027.
We previously reported on the September 2024 launch of the TISFD and, before that, on the planned launch of the initiative as a successor to earlier inequality- and social-related disclosure efforts.
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