In a significant development for Germany’s social economy, Yunus Environment Hub (YEH) has secured €2 million in funding from the German Federal Ministry for Economic Affairs and Climate Action (BMWK) and the European Union’s European Social Fund. This funding, awarded through the program “Nachhaltig wirken – Förderung des gemeinwohlorientierten Unternehmertums”, aims to accelerate the growth and impact of social businesses focused on circular economy solutions and build partnerships for circular value chains between mainstream business and social businesses.
This announcement comes at a pivotal time, as Germany, along with the broader EU, grapples with critical challenges related to climate change, resource scarcity, and economic resilience. Social businesses—organizations that prioritize social and environmental impact alongside financial sustainability—are increasingly seen as key players in driving systemic change.
A Strategic Response to Urgent Challenges
As Europe strives to achieve its Green Deal goals and transition to a low-carbon, circular economy, initiatives like YEH’s play a crucial role. The new funding will support two flagship programs designed to address systemic barriers and unlock the potential of social businesses in the circular economy:
1. CirculaRise Accelerator – Scaling Circular Economy Innovation
The CirculaRise Accelerator will expand its reach, empowering more social businesses across Germany to adopt and scale circular economy practices. Through this program, YEH will:
- Conduct in-depth research to map the current state of the circular economy in Germany, identifying gaps and opportunities.
- Provide intensive training, coaching and funding opportunities for social business entrepreneurs, equipping them with the skills and knowledge needed to scale their solutions.
- Offer long-term support to ensure sustainable growth, resilience, and measurable impact.
This program aligns with Germany’s efforts to transition from a linear “take-make-dispose” economic model to a regenerative one, where resources are reused, remanufactured, and recycled.
2. Circular Impact Procurement Initiative (CIPI) – Transforming Procurement Practices
In an era where procurement is no longer just about cost and efficiency but also about sustainability and impact, CIPI offers a win-win opportunity. It empowers social businesses to scale their solutions while enabling procurers to lead the way in responsible and future-proof supply chain management. By integrating social businesses into their supply chains, procurers gain access to innovative, sustainable solutions that help them meet their environmental, social, and governance (ESG) goals. Procurement by both public and private organizations is a powerful lever for driving sustainable change for both suppliers and buyers.
CIPI aims to:
- Equip social businesses with the skills, knowledge, and resources to become procurement-ready, ensuring they meet the quality, scalability, and compliance standards required by large buyers.
- Educate procurement professionals on how to identify, evaluate, and integrate circular solutions from social businesses into their procurement strategies.
- Create networking and matchmaking opportunities, connecting social businesses with buyers who are committed to sustainable and impactful procurement.
This initiative is particularly relevant as the German government and the EU emphasize sustainable public procurement as a tool for achieving environmental and social goals. By incorporating circular economy principles into procurement, organizations can reduce waste, lower carbon emissions, and drive social impact.
Driving Systemic Change Amid Economic Uncertainty
This funding arrives during a period of economic uncertainty, marked by rising inflation, supply chain disruptions, and geopolitical tensions. These challenges have underscored the need for resilient economic models that prioritize sustainability and social well-being.
Social businesses, with their focus on addressing social and environmental challenges, are uniquely positioned to contribute to a more inclusive and circular economy. By scaling the impact of circular economy solutions, YEH is not only supporting individual entrepreneurs but also contributing to systemic change in Germany’s economic landscape.
A Milestone for the Social Business Ecosystem
The €2 million investment is a testament to the growing recognition of social businesses as vital actors in the transition to a circular economy. It reflects a broader shift in policy and funding priorities, with governments and institutions increasingly looking to social businesses as partners in addressing global challenges.
At YEH, this milestone is more than just financial support—it’s a validation of our mission to promote social business as a driving force for systemic change. We look forward to working with our partners, entrepreneurs, and stakeholders to build a more circular, inclusive, and resilient economy in Germany and beyond.
Stay Tuned
Follow our journey as we implement these programs and continue to advocate for the transformative power of social business. Together, we can turn today’s challenges into opportunities for a better future.
Reach out to our team to learn more info@yunuseh.com