Letter to Ms. Ursula von der Leyen, 'Europe needs to mobilise capital for social investments'
There is a major financing gap of 100 billion to 150 billion euro for social investment at the moment, according to the High-Level Task Force on Investing in Social Infrastructure in Europe. In many regions and countries investments in human capital, especially in health, education and affordable housing, is stalling.
Unfortunately, the EU sustainable finance regulation fails to address the social dimension of sustainability. It focuses on avoiding negative social impacts without giving any guidance on how sustainable investments could positively contribute to social goals and thus among other things to ensure a fair and just transition towards net-zero. While it encourages investments in environmental activities, it misses the opportunity to tap into the transformative potential of socially minded investors.
While the group acknowledges that companies and investors should not be burdened with further administrative costs and disclosure requirements the group points to the fact that existing EU legislation already provides a definition of services for general interests and a quality framework for social services, such as the Corporate Sustainability Due Diligence Directive and Corporate Sustainability Reporting Directive.
On the basis of these existing legislation, frameworks, and requirements the group asks the Commission to start working out a social investment framework without any further delay.
The group consists of the Working Group of Church Investors together, European Association of Public Banks, CSR Europe, SGI Europe and European Trade Union Confederation.