In short: Lenders and investors increasingly price sustainability. Green bonds and green loans fund specific environmental projects and require use-of-proceeds tracking and reporting; sustainability-linked loans tie the interest margin to KPIs and targets you set; and asset managers need ESG data from investee companies for their own SFDR and UK SDR disclosures. Good sustainability data can open access to these markets and lower the cost of capital. TaxDigit's sustainability team prepares the KPIs, targets, frameworks and reporting that lenders, bond investors and ESG rating agencies look for, and models the financial effect.
How sustainable finance works for a borrower
There are two main structures. Use-of-proceeds instruments (green, social and sustainability bonds and loans) finance eligible projects, so the issuer must track the money, report on allocation and, ideally, impact. Sustainability-linked instruments can be used for general purposes, but the margin moves up or down depending on whether the borrower meets ambitious, material KPIs that are measured and usually verified each year.
Either way, the borrower needs reliable data, a clear framework aligned with the market principles (such as the ICMA Green Bond Principles and the LMA Sustainability-Linked Loan Principles) and governance to stop the instrument being challenged as greenwashing. The same data feeds ESG ratings and the questionnaires investors send under SFDR and the FCA's Sustainability Disclosure Requirements.
- Mid-market and large borrowersNegotiating green or sustainability-linked facilities with their banks.
- Bond issuersPreparing green bond frameworks and annual allocation and impact reports.
- Private equity portfolio companiesAnswering ESG data requests from funds subject to SFDR or UK SDR.
- Companies with ESG ratingsImproving CDP, MSCI, Sustainalytics and similar scores.
Led by Dr Attieh Moezoddin, Head of Sustainability & ESG Advisory (PhD, Built Environment)Reviewed by Amir Rafiei, ACCA Certificate in Sustainability for FinanceLast reviewed
What we do
Sustainability-linked loans
We help select material KPIs, set a credible baseline and ambitious targets, and model the margin effect for each outcome.
Green bond and loan frameworks
Eligible project categories, project evaluation, management of proceeds and reporting, aligned with market principles.
Allocation and impact reports
Annual reports on how proceeds were spent and the environmental impact achieved, ready for external review.
EU Taxonomy alignment
Assessing which activities are Taxonomy-eligible and aligned, including technical screening criteria and minimum safeguards.
SFDR and UK SDR requests
Principal adverse impact indicators and other investee data that funds need for their disclosures and labels.
ESG ratings and questionnaires
Review of CDP and ratings questionnaires, evidence behind each answer and an improvement plan.
Sustainable finance instruments compared
| Instrument | How funds are used | What the borrower reports |
|---|---|---|
| Green bond or green loan | Eligible environmental projects only | Allocation of proceeds and environmental impact |
| Social or sustainability bond | Eligible social or mixed projects | Allocation and social or environmental impact |
| Sustainability-linked loan | General corporate purposes | Performance against KPIs and targets, usually verified annually; margin adjusts |
| Sustainability-linked bond | General corporate purposes | KPI performance; coupon steps up if targets are missed |
| Transition finance | Decarbonisation of high-emitting activities | Credible transition plan and progress |
How we help
Measure current performance on candidate KPIs.
Select KPIs, set targets and draft the framework.
Model the margin effect and support discussions with lenders.
Annual KPI, allocation and impact reporting.
A dedicated sustainability and ESG team
TaxDigit has a dedicated sustainability and ESG team, led by Dr Attieh Moezoddin, Head of Sustainability & ESG Advisory. Attieh holds a PhD in the Built Environment from the University of Salford and is a sustainable development researcher whose doctoral work built a framework for sustainable urban development using expert panels and multi-criteria analysis (fuzzy Delphi, fuzzy AHP and fuzzy TOPSIS) across social, environmental, economic and cultural pillars.
Finance, reporting and tax quality is reviewed by Amir Rafiei, Senior Manager for Global Tax Strategy, Transfer Pricing and Sustainability, who holds the 
ACCA Certificate in Sustainability for Finance. The team works side by side with our accounts, tax, payroll and international specialists, so your sustainability disclosures, financial statements and tax returns rest on one set of facts. Statutory audit is carried out separately by our alliance firm Jelveh Audit & Assurance.
- PhD, Built Environment
- Sustainable development research
- Materiality and expert panels
- SDGs and impact
- Climate risk and reporting
- ESG metrics and analytics
- IFRS S1, S2 and UK SRS
- CSRD and ESRS
- CBAM and green taxes
All sustainability and ESG services
See the full overview on our sustainability and ESG services page, or go straight to a related service. Large groups may also need our large and multinational group tax support.
Official sources
Rules, thresholds and dates on this page were checked against these sources on 14 November 2026. We re-check them whenever they change.
Frequently asked questions
What is a sustainability-linked loan?
A loan whose interest margin changes depending on whether the borrower meets pre-agreed sustainability KPIs and targets. The money can be used for general purposes.
What is the difference between a green loan and a sustainability-linked loan?
A green loan finances specific eligible green projects. A sustainability-linked loan can fund anything, but its price is linked to the borrower's sustainability performance.
What makes a good KPI?
It should be material to the business, measurable, benchmarked, verifiable and ambitious beyond business as usual.
Why do funds ask our company for ESG data?
Asset managers in the EU and UK must disclose sustainability information about their funds under SFDR and the FCA's Sustainability Disclosure Requirements, so they collect data from the companies they invest in.
Can better ESG data reduce our cost of capital?
It can. Sustainability-linked margins, access to green investors and better ratings can all reduce the cost of debt and equity, provided the data is credible.
What is the EU Taxonomy?
An EU classification system that defines which economic activities are environmentally sustainable, using technical screening criteria, a do-no-significant-harm test and minimum safeguards.
How do we avoid greenwashing claims?
Use robust data, align with recognised principles, disclose methods and limitations, and obtain external review. The FCA's anti-greenwashing rule applies to all FCA-authorised firms.
Do you arrange the finance?
No. We prepare the data, KPIs, frameworks and reporting. The facility or bond is arranged by your bank or adviser. For business banking introductions, ask us about our banking partner panel.