The group observes a compelling need for more and continuously high investments in products and services for basic human needs, essential services and social infrastructure, especially in the face of the green transition as well as investment in ambitious human rights due diligence systems. They meet a demand by investors for social investment opportunities, but that demand could be supported by a clear definition of “social investment”. While the group acknowledges that aspects of the EU Taxonomy are criticized, they also see a broad consensus that the EU taxonomy has great benefits because it provides definitions based on scientific evidence.
There is a major financing gap of 100 billion to 150 billion euro for social investment now, 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.
A Social Investment Framework would be possible based on existing international and EU standards that define products and services for meeting basic human needs, essential services and for processes for human rights due diligence processes. The Social Bond and Social Loan Principles could be a good starting point for a broadly diversified group that could work out criteria and measurements for social investments in more detail.
The group consists of SGI Europe, CSR Europe, European Association of Public Banks (EAPB), European Federation of Ethical and Alternative Banks and Financiers (FEBEA), Triodos Bank, Arbeitskreis Kirchlicher Investoren (AKI), Erste Social Finance (Sparkasse), SozialBank, Evangelische Bank, GLS Bank, CERISE SPTF, Pax-Bank, VÖB, Steyler Ethik Bank, KD Bank, CRIC, Bank für Kirche und Caritas, BIB Fair Banking, Metzler Asset Management, Forum Nachhaltiger Geldanlagen (FNG), Umwelt Bank, DKM.