How to report according to TCFD recommendations
What is TCFD?
The Taskforce for Climate-related Financial Disclosures (TCFD) was set up to develop recommendations for effective climate-related disclosure to help stakeholders (especially investors) understand the exposure of companies to climate-related risks.
The aim of the Taskforce is to set a universal standard for how companies report on climate-related financial risks and opportunities.
Reporting in line with TCFD recommendations involves:
- Disclosing what the risks are and how this changes your overall business strategy.
- Disclosing impacts on revenues (e.g. rental income), expenditures (including cost of development), assets and liabilities (e.g. insurance premiums, ability to access capital and funding).
Who is this guidance for?
This guidance is designed for hotels who are looking to report on the financial risks and opportunities their business faces as a result of climate change.
It can be advantageous for your business to report in line with TCFD recommendations even if it’s not yet mandatory for you to do so. As investor awareness of climate-related risks increases, it’s likely that provision of capital by banks and investors may increasingly become linked to compliance with TCFD reporting.
Many countries are starting to implement timelines for mandatory TCFD reporting.
This guidance includes:
- Introduction and background to the TCFD framework
- A list of common climate-related risks and opportunities for hotels
- Tips for best practice
- Disclosure checklist of what to include