The Taskforce on Inequality and Social-related Financial Disclosures (TISFD) has established a new steering committee, which is made up of 25 senior leaders from financial institutions, businesses, labour, and civil society across 15 countries on six continents.
Among the organisations represented in the committee are ING, CalPERS, AXA, Schneider Electric, McCormick & Co, Natura & Co, Oxfam, Pro Mujer, IndustriALL Global Union, and the ILO.
The committee, co-chaired by Peter Bakker, Sharan Burrow, Arunma Oteh, and Gabriela Ramos, will guide the development of a global framework for financial disclosures centred on people.
This framework will include metrics, implementation strategies, and educational tools to facilitate industry-wide adoption.
The TISFD was launched last year to develop a global framework to help firms produce transparent disclosures about impacts, risks, and opportunities related to social issues, including inequality.
Created at a time when greater emphasis is being placed on taking social and climate issues into consideration when making financial decisions, the group aims to put people at the heart of the transition to a fairer economy.
Takeshi Kimura, special advisor to the board at Nippon Life Insurance, said: “TISFD will address a need of businesses and financial institutions for a disclosure framework that connects people, planet, and nature. We need to close the gap in understanding system-level risks related to inequality and social issues, and it is important to urge companies to adopt a broader “scope 3 lens”, not only in GHG emissions but also in social aspects throughout the supply chain.”
David Blood, senior partner at Generation Investment Management, added: “Investors have a legal duty to manage systemic risks to their portfolios. We believe the work of the TISFD will help investors understand the risks presented by inequality and other social factors, and create a simplified, shared approach to analysing the impact of their investments on society and people. TISFD’s approach reduces complexity in reporting and helps achieve long-term value for investors.”
Marcie Frost, chief executive officer of CalPERS, noted: “To gain greater insight, we support the work of TISFD toward measuring and reporting on inequality and other socially related, financially material metrics. We believe that a standardised methodology to better account for these risks will lead to more sustainable returns over the long-term.”
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