Organisations seeking to address inequality and the social issues associated with financial markets are coalescing their efforts.
The Taskforce on Inequality-related Financial Disclosures has merged with the Taskforce on Social-related Financial Disclosures to form the Taskforce on Inequality and Social-related Financial Disclosures. The TISFD will develop a framework for financial institutions and companies to report on the inequality- and social-related “impacts, dependencies, risks and opportunities” of their businesses.
As private markets initiatives related to specific social issues such as diversity and employee-ownership mature, inequality more generally could become a priority for private fund managers and investors.
“[TIFD] believes that inequality is a systemic risk for the economy, and therefore markets, investors and portfolios,” Predistribution Initiative executive director Delilah Rotherberg told New Private Markets last year. The Predistribution Initiative is one of several organisations that form the TIFD’s interim secretariat. “If asset owners and allocators want strong portfolios, there needs to be some form of support infrastructure in place to ensure orderly markets.”
Editor’s note: This article has been amended to include that TIFD is one of several organisations in the TIFD’s interim secretariat, and the TISFD’s framework will be for companies’ use too.