TISFD Framework: Social Risk Disclosure for Companies and Investors

The framework is designed for both companies and investors. For corporations, it provides a standard to disclose social risks in annual reports. For asset managers and asset owners, it offers a tool to compare social performance across holdings and to engage with portfolio companies.

TISFD's structure mirrors the four pillars of TCFD: governance, strategy, risk management, and metrics and targets. The social equivalent asks companies to explain how they oversee workforce and community risks, how those risks affect their strategy, and what metrics they use to track progress. Specific metrics include pay ratios, employee turnover rates, gender pay gaps, and supplier audit results.

The taskforce plans to publish final guidance by mid-2026. Pilot programs involving several large European pension funds and multinational firms are already testing the disclosure templates, the taskforce said.

The initiative comes as regulators in the European Union and some U.S. states push for more corporate transparency on social issues. The UK's Financial Conduct Authority and the International Sustainability Standards Board have signaled interest in aligning with TISFD's work.