Press Releases

KoSIF Joins the TISFD Alliance

“Human rights violations and inequality are emerging as risks to financial stability”

As global sustainability disclosure discussions expand beyond climate and nature to encompass social issues, the Korea Sustainability Investing Forum (KoSIF), chaired by Young-ho Kim, has officially joined the Alliance of the Taskforce on Inequality and Social-related Financial Disclosures (TISFD).

[Image] KoSIF and TISFD logos

Following the Task Force on Climate-related Financial Disclosures (TCFD) and the Taskforce on Nature-related Financial Disclosures (TNFD), TISFD is a global initiative examining how social issues—including inequality—relate to corporate impacts, dependencies, risks, opportunities, and financial performance.

TISFD was formally launched in September 2024 and is jointly led by 20 organizations from the public, private, and civil society sectors, including the United Nations Development Programme (UNDP), the Organisation for Economic Co-operation and Development (OECD), and the International Labour Organization (ILO).

“TISFD is founded on the recognition that social inequality can undermine social cohesion, constrain economic activity, and ultimately pose a systemic risk to financial stability,” said Choon-seung Yang, Executive Director of KoSIF.

Issues such as inequality, discrimination, and labor rights violations can intensify economic instability and social conflict, with significant consequences for companies and financial markets.

TISFD also considers social factors as sources of opportunity, rather than focusing solely on risk. Its Conceptual Foundations Discussion Paper states that companies integrating social factors into decision-making may be better positioned to retain their workforce, strengthen innovation and productivity, and build durable relationships with consumers.

TISFD aims to develop a global disclosure framework that enables companies and financial institutions to report transparently on social impacts and dependencies related to inequality, human rights, labor practices, diversity and inclusion, and community engagement. The framework is intended to support more comprehensive and long-term risk management.

Just as the TCFD and TNFD frameworks have influenced the development of sustainability disclosure standards, including those issued by the International Sustainability Standards Board (ISSB), TISFD is expected to contribute to the evolving global discussion on social-related financial disclosures.

The growing importance of inequality and social risks is also becoming evident in Korea. Serious industrial accidents involving worker fatalities are increasingly being considered not only as legal and operational risks, but also as material financial risks that may affect investment and lending decisions.

These developments demonstrate that the social issues addressed by TISFD are no longer viewed solely as abstract values. They are becoming material factors with direct implications for corporate management and financial decision-making.

KoSIF joined the TISFD Alliance in recognition of the need to respond proactively to these international and domestic developments. The organization has experience operating the Korea TCFD Alliance Secretariat and supporting climate-related disclosure discussions in Korea.

“Just as climate action has become a central issue for business and finance, addressing inequality, human rights, and other social challenges will become an increasingly important priority,” Yang said.

“KoSIF will work to broaden the scope of sustainable finance in Korea beyond environmental issues and create opportunities for companies, financial institutions, and other stakeholders to discuss emerging social-related financial risks and disclosure practices.”

KoSIF will continue to share the latest international developments in inequality- and social-related financial disclosures and engage with international organizations, Korean companies, and financial institutions.