Joint call for an EU Social Investment Framework to define and facilitate social investments

SGI Europe and various EU stakeholders call upon the European Commission to establish a Social Investment Framework aimed at channelling vital funds into key areas such as affordable housing, healthcare, essential services, education, and human rights processes. As Europe faces the challenges of the green transition, there is a growing need for investments that address both social and environmental concerns.

The proposed framework would complement the existing EU Sustainable Finance regulation by defining what constitutes a "social investment" and creating voluntary standards that guide investors. Lessons from the EU Taxonomy on environmental investments will be applied to ensure the framework is user-friendly and does not increase the reporting burden on companies. The framework is also designed to attract investors seeking social impact opportunities, addressing the gap in current EU investment guidance.

Ahead of the hearings of the Commissioners-designate, stakeholders from various sectors urge the Commission to prioritise this framework, noting the growing demand for social bonds and loans during the COVID-19 pandemic. The framework would help mobilise resources for social services, ensure compliance with human rights, and align with global standards like the UN’s Sustainable Development Goals (SDGs).