During the year 2020, marked by the Covid-19 pandemic, ethical and solidarity-based financial entities mobilized to provide concrete support to the most affected groups: small businesses, social economy companies and organizations, and self-employed individuals.
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The year 2020 will be marked by the COVID-19 pandemic and the consequent economic crisis which has hit social and economic activity in an accelerated and forceful manner. The most affected have and will be those that were already in a situation of fragility caused by structural inequality. At economic level, the most affected have been social economy companies and organisations, small businesses and self-employees. For this reason, the ethical and solidarity-based financial entities mobilised to give concrete answers: to support the financed projects, ease their burden, setting up networks to prevent them from falling. by providing financial relief, loan moratoriums, and solidarity networks, aiming to prevent their collapse and sustain social cohesion. This response underscores the critical role of ethical finance as more than traditional banking; it is rooted in principles of solidarity, participation, and social and environmental value, empowering local communities by adapting products and services to rapidly meet evolving needs during the crisis.
Moreover, the pandemic exposed deep systemic inequalities and highlighted the urgent need for a sustainable and inclusive economic model. Ethical finance champions an economic system that goes beyond mere sustainability, aiming to create broad societal, environmental, and climate benefits consistent with the values of the social and solidarity economy. Collaborative governance and networking among ethical financial organizations, local authorities, and civil society are pivotal for fostering long-term structural change, enabling these organizations to influence public policies and support social economy actors more effectively.
The dossier presents numerous case studies from ethical financial institutions across Europe, illustrating how swiftly these entities adapted by introducing loan payment suspensions, emergency funding, and tailored support for vulnerable clients. Their solidarity-based approach, combined with innovative service delivery, demonstrates ethical finance’s ability to meet the complex challenges of the crisis while maintaining its commitment to social justice and sustainability. Ultimately, the document exemplifies ethical finance as a powerful agent for a “more than sustainable” economy—one grounded in justice, solidarity, and communal resilience.
Read also how Ethical Financiers have responded with concrete actions to the COVID-19 crisis here.
As the ESF+ appears to be questioned in the new Commission’s plans, Social Economy organizations unite to call for stronger support.
A position paper co-authored by FEBEA and the Sustainable Banking Coalition on the Omnibus Proposal.
Ethical financiers are taking action to address the housing crisis by supporting and promoting various models of social housing.
Watch the webinar of the discussion around Social Housing and Ethical Finance here.