As recognized in the Action Plan of the European Pillar of Social Rights (EPSR), better non-financial reporting on social aspects has the potential to increase investments flows towards economic activities with positive social outcomes. Yet, there is still a huge untapped potential of the providers of services of general interest (SGI) as there is an unbalanced assessment of the impact of the non-financial disclosure requirements on the SGIs and public services providers, especially at the local lever, compared to the big enterprises from the private sector.
Through the ‘Finance for the European Pillar of Social Rights’ (Finance4EPSR) project financed by the European Commission and led by SGI Europe in partnership with HOSPEEM and HEAG Holding, a tailored response was developed to fill this gap. Over a two-year period, the project created a practical framework to support SGIs in assessing, reporting, and communicating their social contributions in ways that are meaningful for both service delivery and investment.
At the core of the project are two main deliverables:
These tools aim to foster SGIs’ contributions to the implementation of the EPSR and unlock their potential to engage more effectively with sustainable finance. They are grounded in existing standards, namely the European Pillar of Social Rights, the ICMA Social Bond Principles, and the conceptual foundations of the proposed EU Social Taxonomy and were developed through a participatory process involving interviews, surveys, and stakeholder workshops across Europe.
The project was launched in a moment of acute social and economic transformation in the European Union. The COVID-19 pandemic, followed by rising energy prices and persistent inflation, underscored the vital role of Services of General Interest in safeguarding social cohesion, supporting local resilience, and ensuring continuity of essential public services.
SGIs who are often local or regional providers, must navigate increasing competition while upholding broad social responsibilities to the communities they serve. However, most SGIs face major barriers in accessing sustainable finance. These include a lack of tailored reporting tools, limited technical expertise, and the absence of a recognised framework or label that reflects their social missions. Compared to large private actors, SGIs often find themselves excluded from financial opportunities that are rapidly evolving to meet EU green and social objectives.
The Finance4EPSR project directly addressed this challenge by creating tools to empower SGIs to engage more effectively with investors and sustainability frameworks. The project focused on key sectors that are central to the realisation of social rights, including healthcare, housing, energy, and water where investment gaps persist despite high societal needs.
Particularly in healthcare, hospitals and care providers across Europe face ongoing investment challenges, amplified by demographic shifts and rising demand. By enabling providers to assess and communicate their social impact, the Finance4EPSR project contributes to building a more inclusive investment ecosystem—one where SGIs can demonstrate their value and secure the resources needed to advance the EPSR.
While the EU’s Social Taxonomy was not formally adopted, Finance4EPSR leveraged its conceptual structure and demonstrated how its principles can be applied in practice. The results of the project lay the groundwork for further steps, including the possible development of a dedicated Social Label for SGIs, a next phase that SGI Europe and its partners are now actively exploring with stakeholders.
The project’s activities included: