The business case for people-related disclosures

Businesses and financial institutions depend on workers, consumers and communities for productivity, innovation and resilience, yet people-related considerations remain absent from many strategic decisions. It is estimated that over one billion working people globally — about one-third of the workforce — do not earn enough to afford a decent living (p.15). Global inequalities stand at modern day highs: the richest 10 percent hold about 74 percent of total global wealth, while the poorest 50 percent own less than 5 percent (p.15).

A 2025 survey of over 11,000 senior executives across 121 economies for the World Economic Forum’s Global Risk Report places social and inequality-related issues among the top 10 risks, yet many report limited capability to quantify or manage these risks effectively (p.17). In 2024 alone, an estimated 640 billion labour hours were lost due to heat exposure, equivalent to US$1.09 trillion in lost income (p.15). With 40 percent of global employment exposed to AI, these dynamics could both deepen labour market disparities and weaken the consumer base on which businesses depend (p.16).

Introducing the TISFD framework

Established in September 2024, TISFD is a global, multi-stakeholder initiative developing a disclosure framework for people-related impacts, dependencies, risks and opportunities. The Framework builds on existing standards including ISSB, GRI and ESRS, using a building blocks approach and aligning with TCFD/TNFD’s four-pillar structure: governance, strategy, impact and risk management, and metrics and targets.

Beta Version 0.1 includes conceptual foundations and a first draft of disclosure recommendations. The Framework is designed for businesses and financial institutions as preparers, and for investors, regulators, policymakers, civil society and labour organisations as users. The final Framework is targeted for publication by the end of 2027, with subsequent iterations planned through 2026–2027.

Conceptual foundations

The Framework defines social issues as involving human rights, well-being, inequalities and human and social capital. Inequalities encompass both horizontal inequalities (disparities between groups defined by characteristics such as gender or ethnicity) and vertical inequalities (disparities in income and wealth). About 2.1 billion workers — 57–60 percent of the global workforce — are in informal employment, rising to 85–90 percent in sub-Saharan Africa (p.15).

Businesses and financial institutions interact with people as workers, consumers, affected communities and members of society. Impacts refer to positive or negative effects on people; dependencies refer to reliance on human and social resources and relationships. These can accumulate to generate system-level risks, including societal stability risk, macroeconomic risk and financial stability risk.

TISFD disclosure recommendations

The draft recommendations are structured across four pillars: governance, strategy, impact and risk management, and metrics and targets (to be developed in future iterations). Five general requirements underpin all disclosures: materiality, system-relevant information, stakeholder engagement, scope and time horizons.

Governance disclosures address board oversight and management responsibility. Strategy disclosures require entities to describe identified impacts, dependencies, risks and opportunities, their interaction with the business model, and organisational resilience. Impact and risk management disclosures address identification, assessment, prioritisation and monitoring processes.

Areas for further development

Priority areas identified for future work include: inequalities, materiality, system-level risks, the interconnections between people, nature and climate, identification and assessment guidance, scenario analysis, and metrics and targets.

Engage in shaping the TISFD framework

Stakeholders are invited to provide feedback on Beta Version 0.1 by 31 July 2026 via the online platform at tisfd.org. Engagement channels include the TISFD Alliance (free and open membership), public consultation, and pilot testing with businesses and financial institutions.