Green Bonds are a type of debt instrument designed specifically to fund projects that contribute to environmental sustainability. Issuing companies or financial institutions must commit to using the raised funds for initiatives with clear sustainability benefits, such as energy conservation and carbon reduction, renewable energy, wastewater treatment, green buildings, and pollution control.
Going a step further, Sustainability-Linked Bonds (SLBs) tie the bond’s terms to the issuer’s achievement of specific sustainability performance targets, like reducing carbon emissions or improving energy efficiency. If these targets are not met, issuers may be required to pay higher interest rates.
These financial instruments are steadily becoming a vital channel for global ESG financing. They also place higher demands on companies to ensure transparency in financial reporting and the maturity of their internal systems. In Taiwan, the Financial Supervisory Commission continues to promote the Green Finance Action Plan 3.0, encouraging financial institutions to develop sustainable financial products and support businesses in their sustainability transitions.
For companies, green bonds are not just a funding tool — they are also a public testament to their commitment to sustainability and their financial credibility
Going a step further, Sustainability-Linked Bonds (SLBs) tie the bond’s terms to the issuer’s achievement of specific sustainability performance targets, like reducing carbon emissions or improving energy efficiency. If these targets are not met, issuers may be required to pay higher interest rates.
These financial instruments are steadily becoming a vital channel for global ESG financing. They also place higher demands on companies to ensure transparency in financial reporting and the maturity of their internal systems. In Taiwan, the Financial Supervisory Commission continues to promote the Green Finance Action Plan 3.0, encouraging financial institutions to develop sustainable financial products and support businesses in their sustainability transitions.
For companies, green bonds are not just a funding tool — they are also a public testament to their commitment to sustainability and their financial credibility
Image source: FREEPIK
1. The Green Bond Boom
In 2025, companies like Mega Bank, Land Bank of Taiwan, and China Steel Corporation have actively raised funds through green bonds or sustainability-linked bonds. This not only demonstrates their commitment to sustainability but has also become a new trend in capital flows within the financial market. According to statistics from the Financial Supervisory Commission, as of May 2025, the total value of green bonds issued in Taiwan has surpassed NT$450 billion, setting a new record high. This shift is more than just a change in financial strategy — it acts as a stress test of a company’s ESG financial capability. The conditions for issuing green bonds increasingly emphasize the verifiability of disclosed information, pushing companies to build robust systems for compiling and reporting ESG financial data in advance.
In other words, whether a company can issue bonds and secure favorable interest rates no longer depends solely on traditional financial figures — it increasingly depends on how well they can quantify and clearly communicate their sustainability performance with credible data.
In other words, whether a company can issue bonds and secure favorable interest rates no longer depends solely on traditional financial figures — it increasingly depends on how well they can quantify and clearly communicate their sustainability performance with credible data.
2. What Kind of ESG Financial Data Do Companies Need to Issue Green Bonds?
To secure green financing, companies must present a clear and concrete “sustainability-linked financial framework” and disclose the following three key areas of information in detail.
2.1 Financial Linkage Indicators
Companies must be able to explain how their ESG actions translate into tangible financial outcomes. For example:
- Energy savings after process improvements × unit electricity cost = annual cost savings
- Cost reductions from carbon fee offsets due to water conservation or emission cuts
- Revenue growth or credit rating upgrades resulting from green capital investments
The key point of these indicators is that they must be quantifiable and supported by a clear financial logic. It’s not just about listing ESG actions, but about providing estimates of their actual economic impact so that external investors can understand their significance and the validity of the investment.
2.2 Verifiable ESG Data
- Greenhouse gas inventory reports (Scopes 1 and 2)
- Third-party assurance or verification reports (such as Carbon Disclosure, GRI, or TCFD reports)
- Whether ESG-related KPIs are incorporated into internal controls or audit processes
Verifiable ESG data has become a critical foundation for sustainable finance ratings and evaluations. Companies should proactively align with international standards (such as IFRS S2, GRI, or SASB) and establish consistent processes — from data sources to statistical methods and verification procedures.
2.3 Integrated Financial Reporting Logic
Companies need to demonstrate, through financial statement notes or dedicated sections in annual reports, that they clearly address the following:
- Accounting classification of ESG-related expenditures (to avoid mislabeling them as general business expenses or miscellaneous costs)
- How KPIs are linked with budgeting systems
- Whether ESG initiatives serve as key inputs for major financial decisions (such as capital expenditures or risk factors)
Many companies have ESG initiatives in place, but without synchronized records in their financial systems, they cannot effectively prove their validity during audits or disclosures. This is exactly the “data credibility issue” that the green bond market scrutinizes most closely.
Image source: FREEPIK
3. Can SMEs Participate in Green Bonds or Sustainable Financing?
The answer is yes. While issuing bonds has a relatively high threshold, the requirements for ESG financial data from banks and lending platforms are gradually extending to small and medium-sized enterprises (SMEs) as well. For example, some financial institutions have started to offer products like “sustainability-linked syndicated loans,” “green equipment loans,” or “energy-efficiency subsidy-linked loans” that require companies to submit ESG financial information for review.
This means that regardless of a company’s size, as long as it can prepare systematic ESG financial data, it has a chance to access more favorable financing conditions — and even take a step closer to being included in sustainability benchmarks within international supply chains.
Three Steps SMEs Can Take Now:
This means that regardless of a company’s size, as long as it can prepare systematic ESG financial data, it has a chance to access more favorable financing conditions — and even take a step closer to being included in sustainability benchmarks within international supply chains.
Three Steps SMEs Can Take Now:
- Build a Prototype ESG Financial Database
- Organize data on environment-, social-, and governance-related expenses, cost savings, and carbon emissions
- Create a preliminary classification framework that aligns with financial statements
- Develop a basic model by estimating carbon fees or consolidating energy-saving investment results
- Introduce a Basic ESG Financial Diagnostic Tool
Assess the company’s data collection capacity and system maturity.
For example: Is there an internal ESG officer? Is there a dedicated ESG budget? Can the company provide financial models for energy savings or carbon cost estimates? - Keep Up with the Latest Government Subsidies and Financing Programs
For example: MOEA energy-efficiency loan projects, National Development Fund’s sustainability innovation loans, or green loan tools from local banks. While many programs do not have explicit ESG assurance thresholds, companies that proactively submit ESG financial data are more likely to secure approval and better financing terms.
Image source: FREEPIK
4. Conclusion
The boom in green bond issuance is redefining what it means to clear the “financing threshold.” In the past, lenders looked at financial statements, assets, and cash flow. Now, there’s an added, more subtle requirement: whether your sustainability initiatives can be quantified, verified, and integrated into your financial data.
Whether or not your company issues bonds, if you want to participate in supply chains, secure funding, or enter global markets, the time to prepare ESG financial data is now. Turning sustainability outcomes into financial data is the key to riding the next wave of the green economy.
Whether or not your company issues bonds, if you want to participate in supply chains, secure funding, or enter global markets, the time to prepare ESG financial data is now. Turning sustainability outcomes into financial data is the key to riding the next wave of the green economy.
Is your company ready to meet the new ESG challenges?
Hall Chadwick Taiwan has extensive experience in ESG financial consulting and can assist your company in building a sustainability reporting framework that aligns with the latest regulatory requirements.If you have any questions regarding the 2025 ESG financial disclosure requirements, feel free to contact us.