In order to provide clarity on the relationship between business and finance and social and inequality-related issues, the Working Group proposes that TISFD set out its understanding of key inequality and social-related concepts and how they inter-relate, as the foundation for its work. Keeping in mind the broad scope of these issues, TISFD will prioritise disclosure recommendations that most meaningfully allow users of information to respond to social and inequality-related risks, opportunities and impacts.

The Working Group proposes that TISFD develop disclosure recommendations that are interoperable with both an impact materiality perspective and a financial materiality perspective, and that TISFD should explore the materiality of inequality as a system-level risk.

The Working Group proposes that TISFD aligns its Disclosure Framework aligns with the UN Guiding Principles on Business and Human Rights, the OECD Guidelines for Multinational Enterprises, and the ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy, and investigate the need for additional guidance on managing social and inequality-related issues.

The Working Group proposes that TISFD leverage and build upon the indicators and metrics in existing disclosure standards, such as those produced by the International Sustainability Standards Board (ISSB) and the Global Reporting Initiative (GRI), and the European Sustainability Disclosure Standards (ESRS). The TISFD will in turn be available as a knowledge partner to these standard-setting bodies, as well as other regulatory standard-setters.

Recognizing the interrelationships between climate-, nature- and social-related impacts, dependencies, risks and opportunities, the Working Group also proposes that TISFD work to ensure that its disclosure recommendations are interoperable with those of the Taskforce on Climate-related Financial Disclosures (TCFD) and the Taskforce on Nature-related Financial Disclosures (TNFD), such that it can facilitate efforts towards a just transition.

The Working Group proposes that TISFD be governed by a diverse, inclusive, and balanced range of stakeholders, including civil society, investors, business, labour, and international organisations. The governance structure for TISFD is being designed around a set of principles including inclusivity, co-creation, effective and efficient decision-making, continuous learning and improvement, and transparency.

The Working Groups envisions that, among others, TISFD may produce the following outputs:

A global disclosure framework: A global framework containing disclosure recommendations and associated guidance.

Conceptual foundations and definitions: A framework for understanding key social and inequality-related concepts and how they interrelate.

A body of evidence on impact and risk channels: A repository of existing and new research that sheds light on the relationships between business and investor impacts on people and inequalities, associated idiosyncratic risks, and the system-level risks associated with inequalities.

Guidance on metrics, indicators, and data: Guidance on the use of meaningful and decision-useful metrics, indicators and data in the reporting of inequality and social-related impacts, dependencies, risks and opportunities

Guidance on the use of thresholds and targets: Guidance on the use of thresholds and targets in the reporting of social and inequality-related impacts, dependencies, risks and opportunities

Guidance on identification and assessment: Guidance on the identification and assessment of material inequality and social-related impacts, dependencies, risks and opportunities.

Capacity building resources: Accompanying materials to support a broad range of audiences, including businesses, investors, policy makers, labour unions, civil society organisations, and affected stakeholders, such as workers and rural and indigenous communities, in using TISFD’s disclosure framework and recommendations.