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TNFD, IFRS Foundation to enable nature-related financial disclosures in new deal

It is built upon the ongoing work of the International Sustainability Standards Board.

The Taskforce on Nature-related Financial Disclosures (TNFD) and IFRS Foundation have signed a Memorandum of Understanding (MoU) to collaborate with the International Sustainability Standards Board (ISSB) on developing nature-related financial disclosures for capital market use.

Under the MoU, ISSB and TNFD will share knowledge to inform the ISSB’s Biodiversity, Ecosystems and Ecosystem Service initiative and nature-related aspects of its SASB standards enhancement work.

Both organisations will further explore joint market engagement and capacity-building initiatives, including other key partner organisations.

The ISSB’s focus is on meeting the information needs of investors about how companies’ sustainability-related risks and opportunities affect companies’ prospects.

The ISSB’s research on nature-related disclosures will be subject to the IFRS Foundation’s due process, including public consultation.

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