TISFD urged to align disclosures with ISSB’s human capital project
September 19, 2024
Financial institutions have called on the Taskforce on Inequality and Social-related Financial Disclosures (TISFD) to collaborate with International Sustainability Standards Board’s (ISSB) human capital standard-setting project, rather than creating a separate framework.
The taskforce, which aims to develop a global framework for inequality and social-related disclosures, is expected to launch this month.
However, a consultation held by TISFD on its proposed scope, mandate, governance structure, and materiality approach found that stakeholders wanted further collaboration between the TISFD with existing standard setters.
The report said: “Although there was consensus that there is a need for TISFD, some questioned the creation of an additional disclosure framework as opposed to expanding on existing ones.”
Similarly, respondents call on the taskforce to “potentially entertain a path to adoption within ISSB, rather than having an ongoing separate framework”.
In April, the ISSB agreed to launch a research project on human capital to investigate whether standard setting is necessary. The move came as ShareAction wrote to the ISSB to design international reporting standards for human and worker rights.
According to TISFD, many stakeholder groups agreed that the taskforce’s deliverables should be aligned with previously existing disclosure standards and frameworks. In particular, certain respondents emphasised that this should feed unto the ISSB’s standard setting processes.
Respondents additionally requested coherence with the UN Guiding Principles, International Labour Organization guidance, and OECG Guidelines.
Further feedback also highlighted the need for greater alignment with existing codes of conduct, such as the EU’s Corporate Sustainability Due Diligence Directive (CSDDD), which are being adopted in legislation.
According to one respondent, aligning in this way would lower the reporting burden, creating an ease when it comes to adapting to different stakeholder issues.
Last Updated: 20 September 2024