Back to all friday 5
Friday 5
Inequality is the task at hand
26 July, 2024
Social impact reporting is the often overlooked sibling in the family of sustainability disclosures. The newly launched Taskforce on Inequality and Social-Related Financial Disclosures (TISFD) aims to bring social considerations into the spotlight. Following in the footsteps of the Task Force on Climate-related Financial Disclosures (TCFD) and the Taskforce on Nature-related Financial Disclosures (TNFD), TISFD seeks to provide clarity on the relationship between business and finance and social and inequality-related issues, making businesses more accountable for their social impact, pushing for transparency and engagement.
Not everyone is jumping for joy at the thought of more disclosure requirements. For some, the idea of more disclosure requirements will be met with a deep sigh. There’s also the tricky business of measuring and setting targets for human rights, development and well-being. Despite these challenges, we think inequality is finally getting the recognition it deserves, given the important role business plays in addressing (and sometimes perpetuating) it. And some major corporate players agree –Natura & Co, Schneider Electric and others are already onboard.
The influence that both TCFD and TNFD have had in making businesses look more deeply into their impacts shouldn’t be understated. Will this be the same for inequality? The final standards are expected to be released by mid-2025, with feedback on the proposed scope and governance structure open until 1st August 2024. We’ll keep you updated on the outputs…
By Budd Nicholson