This study investigates the impact of the corporate sustainability reporting directive (CSRD) on public funding allocation within public–private partnerships (PPPs) for research and development (R&D) projects. Emphasis is placed on understanding the role of social economy entities compared to capitalist enterprises in aligning with CSRD principles. The research aims to determine whether sustainability-oriented practices influence funding success and explores the strategic positioning of social economy entities in driving sustainable development.
The research employs a quantitative analysis of a dataset comprising organisations involved in PPPs. Projects are classified according to their alignment with the Sustainable Development Goals (SDGs), particularly those directly or indirectly related to the principles of the CSRD. Statistical techniques, including Chi-square tests and comparative analyses, are applied to assess differences in alignment and funding outcomes at both the organisational and project levels.
Results reveal that while social economy entities have a significant focus on SDGs that are indirectly linked to CSRD, such as health and well-being, they lag behind capitalist enterprises in direct alignment. Public funding bodies exhibit a preference for projects directly aligned with key CSRD principles such as channelling capital to sustainable projects and advancing climate action. Social economy entities, despite their inherent alignment with sustainability goals, face structural barriers that limit their competitiveness in securing funding under CSRD-aligned frameworks.
This study contributes to the literature on sustainability and PPPs by highlighting the nuanced roles of different organisational types in advancing the European Green Deal. It underscores the need for tailored policy interventions to enhance the participation of social economy entities in CSRD-aligned projects and offers actionable insights for aligning funding mechanisms with the directive’s objectives. The findings emphasise the importance of inclusive approaches in fostering sustainable innovation within PPP frameworks.
