Social Economy Organizations as Catalysts of the Green Transition: Evidence from Circular Economy, Decarbonization, and Short Food Supply Chains

Abstract

This paper examines the evolving role of social economy organisations (SEOs) in advancing sustainability and contributing to the green transition. While traditionally focused on social inclusion and local development, SEOs are increasingly integrating environmental objectives into their operations, particularly through circular economy (CE) practices, decarbonisation strategies, and short food supply chains (SFSCs). Based on qualitative research and the analysis of 16 good practices from five European countries, the study demonstrates how SEOs create blended social and environmental value by combining economic, social, and ecological goals. The findings show that SEOs foster environmental sustainability by reducing resource consumption and carbon emissions, creating green jobs, strengthening local cooperation, and raising environmental awareness within communities. Importantly, SEOs emerge not only as service providers but also as innovators and agents of change in local ecosystems. The paper concludes with policy recommendations to enhance the role of SEOs in the green transition and identifies directions for future research, particularly regarding the measurement of their long-term environmental impact and the conditions enabling effective collaboration with public and private sector actors.

1. Introduction

The social economy is increasingly recognised as a key driver of sustainable development, combining economic activities with strong social and environmental missions. In recent years, social economy organisations (SEOs) have expanded their role beyond traditional areas such as social inclusion or employment generation [1], becoming active players in addressing contemporary environmental challenges [2,3,4]. This shift is particularly visible in the context of the European Green Deal and the “Fit for 55” package, which call for inclusive and fair climate and energy transitions. Achieving these objectives requires not only technological solutions but also socially embedded innovation processes led by local actors, including SEOs [5,6,7]. While renewable energy systems and low-carbon technologies are essential, growing attention is being paid to the role of SEOs in promoting energy justice, developing decentralized renewable energy models, and co-producing green value at the community level [8,9].

This article explores how SEOs contribute to the development and diffusion of sustainable solutions, particularly through the integration of circular economy (CE) principles, decarbonisation strategies, and short food supply chains (SFSCs). These new avenues of engagement not only reinforce their social mission but also create environmental value, positioning SEOs as innovative actors within the broader sustainability ecosystem.

Drawing on qualitative research conducted within the framework of the international project Social Economy for a Just Green Transition (JustGreen), funded by the European Union, this article presents selected good practices from Portugal, Italy, Hungary, Belgium, and Poland. The case studies demonstrate how SEOs engage in activities that foster resource efficiency, energy transition, and sustainable local food systems while enhancing community resilience and social inclusion.

The paper is structured as follows. The first section outlines the theoretical framework, focusing on the role of social economy in the context of sustainability and green transition. The following sections discuss three key areas of SEO engagement: circular economy, decarbonisation, and short food supply chains, supported by selected case studies. Finally, the article concludes with key findings and policy recommendations to foster the role of social economy organisations in advancing both social and environmental outcomes.

2. Background and Literature Review

2.1. Social Economy

The social economy plays a crucial role in contemporary socio-economic systems, integrating economic objectives with a strong social mission. Unlike traditional enterprises that primarily focus on profit maximization, social economy entities prioritize the creation of social value while maintaining financial sustainability [1]. These organizations operate within the third sector, addressing gaps left by market-driven businesses and public institutions in tackling social and environmental challenges [10].

The social economy encompasses a diverse range of organizations, including social enterprises, cooperatives, mutual organizations, and non-profit initiatives, all of which operate with the primary goal of generating social impact rather than maximizing profits [11]. Among them, social enterprises stand out as hybrid entities that combine characteristics of both non-profit and for-profit organizations, reinvesting profits to achieve multiple bottom lines—social, environmental, and economic [12,13]. By addressing critical issues such as unemployment, social exclusion, and sustainable local development, social economy organizations play a pivotal role in fostering economic resilience and social cohesion [14]. Their strong focus on community engagement empowers individuals and promotes inclusive economic growth [15]. Moreover, their hybrid nature enhances adaptability and innovation, enabling them to develop solutions tailored to local needs while reducing dependence on state welfare programs [16]. As a result, the social economy emerges as a dynamic and sustainable model that strengthens communities, supports marginalized groups, and drives long-term social change [13].

In

Table 1. Social & Environmental outcomes.

Outcomes	Category	Outcome Description
Social	Individual Empowerment	Economic opportunities, skills development, and career growth empower individuals socially and economically [17,18]
		Empowering marginalized groups, fostering self-esteem, leadership, and community engagement [18,19]
	Community Development	Creating jobs, reducing inequality, and promoting social inclusion and participation [19,20]
		Fostering community recovery, cooperation, and social capital [21]
		Mobilizing local resources for development and addressing local needs [20]
	Societal Transformation	Addressing societal issues like income inequality, environmental degradation, and health disparities [22,23]
		Collaborating with stakeholders for sustainable local and regional development [21]
		Increasing subjective well-being and reducing ill-being among disadvantaged groups [24]
	Poverty Alleviation	Reducing poverty by creating job opportunities and providing skills training in underserved communities [21]
	Empowerment	Empowering marginalized groups, including women and girls, to enhance social status and economic independence [23]
	Community Strengthening	Fostering local engagement and collaboration to build stronger, more resilient communities [23,25]
Environmental	Promotion of Green Skills	Developing green skills essential for a sustainable economy through learning-by-doing and innovation [26]
		Supporting circular behavior through design thinking, creativity, and adaptability [26]
	Conservation and Environmental Stewardship	Promoting environmental sustainability through conservation-based programs [27]
		Advocating for conservation as a means to achieve social and economic development goals [28]
	Integration of Social and Ecological Missions	Combining social and ecological missions to address environmental issues and foster a green economy [29]
		Creating alliances of social actors for ecologically sound and socially just changes [30]
	Challenges and Opportunities	Facing policy obstacles, lack of recognition, and challenges in policy support [31]
		Opportunities exist for niche marketing, coopetition strategies, and creating shared value across systems [27,32]
	Sustainability Initiatives	Implementing environmentally sustainable practices to address climate change and resource depletion [25]
	Cultural Heritage Preservation	Safeguarding cultural heritage while promoting environmental stewardship, intertwining social and ecological goals [23]

Source: Own elaboration.

, the social economy’s impact is evident across social and environmental dimensions, highlighting its role in empowering individuals, fostering community development, and driving sustainability initiatives. By addressing key societal challenges, such as poverty alleviation, inequality, and environmental degradation, social economy organizations contribute to inclusive economic growth and ecological resilience. Their integration of social and ecological missions supports a just transition to a green economy, while also promoting innovation, cooperation, and policy adaptation.

The landscape of SEOs has undergone a significant transformation, with their presence now spanning multiple economic sectors [16,33,34]. As these organizations evolve, they are increasingly addressing pressing societal challenges such as climate change, environmental degradation, financial and gender disparities, and the impacts of digitalization. The rapid development of social entrepreneurship and the broader social economy is driven by innovation and emerging trends across various industries. SEOs are not only expanding their activities in workforce integration, social services, and community development but are also actively contributing to sustainable solutions in renewable energy, regenerative agriculture, environmental conservation, and cultural initiatives [35,36,37,38,39,40,41]. This shift aligns with global policy directions, particularly the United Nations’ Sustainable Development Goals (SDGs), which have influenced governments and institutions to emphasize social and environmental responsibility. Consequently, many SEOs now prioritize “green policy,” poverty reduction, gender equality, and environmental sustainability [42]. In line with these objectives, there has been a growing interest in the circular economy, short food supply chains, decarbonization, and various other areas with the potential to generate significant social and environmental impact.

Beyond these descriptive insights, it is important to place SEOs within broader organizational theories. From an institutional theory perspective, SEOs develop legitimacy by balancing multiple logics—social, environmental, and economic—and by embedding their practices in trusted community contexts [2,33]. Similarly, the hybrid organizational framework underlines the capacity of SEOs to reconcile tensions between social and environmental objectives, turning them into sources of innovation rather than contradictions [10,11,12,13]. Furthermore, the Just Transition framework helps explain how SEOs bridge the gap between social inclusion and decarbonization objectives, ensuring that vulnerable groups benefit from sustainability transitions [15] These perspectives provide a more systematic theoretical basis for understanding the catalytic role of SEOs in the green transition.

2.2. Circular Economy as a New Avenue for Greener Social Economy

The concept of the circular economy (CE) is gaining recognition as an effective strategy for advancing a more sustainable and environmentally friendly social economy, blending ecological sustainability with economic and social advantages. The core principles of the CE involve reducing resource consumption, reusing products and materials, and recycling waste into valuable resources. This approach contrasts with the linear economy’s focus on constant production and disposal [43]. The transition to a CE requires innovative solutions that go beyond traditional waste management and resource efficiency. SEOs are at the forefront of this shift, integrating reuse, recycling, and upcycling into their business models while fostering social inclusion and local economic development [35,44,45]. Several social economy initiatives exemplify CE efforts. In Romania, SEOs such as Recicleta and Remesh integrate CE principles into their business models by recycling and upcycling materials, thereby reducing waste and promoting sustainable resource use [46]. The synergy between social economy and CE principles helps address societal challenges, create jobs, and support the green transition [46]. Waste picker organizations in the Global South, such as those in Colombia and Brazil, are pivotal in recycling cycles by reintegrating waste into the economy. These organizations improve waste recovery and material loops through skill development, infrastructure support, and collaboration with enterprises and governments [47]. Grassroots eco-social innovations by waste picker cooperatives in São Paulo, Brazil, demonstrate successful local waste management improvements and enhanced livelihoods for cooperative members [48]. In Greece, social and solidarity economy initiatives focus on the reuse of second-hand clothing. These include collectivities, social enterprises, and non-profit organizations that adhere to the principles of cooperation, solidarity, and social responsibility, thereby enriching the CE with a social dimension [49]. In the UK, social enterprises engage in localized activities such as reuse, upcycling, and repair. These activities are crucial for building socially integrated circular economies at neighborhood and city scales, fostering knowledge spillovers and resource flows [50]. In Pedra Furada, Brazil, a modular recycling unit transforms plastic waste into valuable products like furniture, involving young people without technical training in the recycling process [51].

While these activities highlight the positive outcome of social economy organizations on the CE, challenges remain. Many organizations face barriers such as limited financial resources [52], lack of awareness [53], and insufficient policy support [54]. Additionally, the integration of social dimensions into CE practices is often overlooked in mainstream approaches, which tend to prioritize economic and environmental aspects [55]. Addressing these challenges requires a concerted effort to align policy frameworks, enhance financial models, and increase consumer awareness to fully realize the potential of social economy organizations in the CE transition.

2.3. Decarbonization as a New Avenue for Greener Social Economy

Decarbonization is a key component of global efforts toward sustainable development, aiming to reduce greenhouse gas emissions and transition economies toward low-carbon solutions. This process involves gradually moving away from fossil fuels by enhancing energy efficiency, expanding the use of renewable energy sources, and implementing innovative technologies in sectors such as transport, construction, and industry [7,56,57]. SEOs play an important role in this transition by promoting green jobs, energy efficiency, and community-led sustainability initiatives [15]. Their involvement not only supports environmental goals but also helps address social challenges such as energy poverty and economic inclusion [58]. Through these efforts, decarbonization becomes both an environmental necessity and an opportunity for social and economic transformation. Despite their potential, social economy organizations receive limited recognition in sustainability transitions. The European Green Deal and EU directives offer both challenges and opportunities for social enterprises in this field. Research mainly focuses on social entrepreneurship’s role in addressing energy poverty [9,59].

Several social economy initiatives exemplify decarbonization efforts. In Israel, the concept of “Kosher electricity” utilizes solar PV and utility-scale batteries to provide renewable energy to ultra-orthodox Jewish communities. This initiative not only reduces CO₂ emissions but also aligns with cultural and religious values, enhancing social acceptance of renewable energy projects [60]. Additionally, the Atlas School Project demonstrates how low-carbon solutions in the built environment can reduce greenhouse gas emissions. This initiative involves developing action plans to lower energy consumption and carbon footprints in educational institutions, fostering sustainability at the community level [61]. Social economy initiatives in East Asia contribute to the development of a low-carbon society through the sharing economy, which promotes service use over ownership to reduce material consumption and emissions [62]. In rural Burundi, village solidarity groups equipped with energy generators became economically viable by selling energy, fostering self-sustainability [63]. Additionally, SEOs are actively involved in policy development and advocacy for sustainable practices. They work to integrate social and ecological concerns into policy frameworks, form alliances, and push for socially and ecologically just transitions [30]. Furthermore, these organizations play a critical role in community-level decarbonization efforts by providing training, employment, and economic opportunities for marginalized groups, thereby promoting social empowerment alongside environmental sustainability [64]. Decarbonization should also be viewed through a social lens, creating green jobs, fostering new markets for clean technologies, and expanding employment in construction and sustainable transport. It also helps combat energy poverty, improving living conditions while preserving the environment. Beyond technology, social equity, justice, and community engagement are essential. The just transition approach stresses support for communities affected by the shift to a low-carbon economy [65], ensuring fair and inclusive outcomes.

While SEOs drive decarbonization efforts, challenges persist. Resistance from entrenched interests and policy silos hinders integration [66], while infrastructure transitions pose logistical and financial barriers [67]. Nevertheless, SEOs continue to develop innovative, participatory models that not only advance climate goals but also democratize sustainability, offering alternative pathways that embed social justice and inclusion into the core of the decarbonization agenda.

2.4. Short Food Supply Chains as a New Avenue for Greener Social Economy

Short Food Supply Chains (SFSCs) are a recently revitalized model recognized as a sustainable approach in food distribution [68,69,70]. These systems focus on minimizing the distance between producers and consumers, promoting transparency, and ensuring that local producers retain a larger share of the value [71]. This model is especially appealing to SEOs, as it supports their dual goals of economic sustainability and fostering positive social change. According to Renting, Schermer, and Rossi [72], SFSCs contribute to rural development by empowering small-scale farmers, generating local employment, and strengthening community resilience. Social enterprises involved in SFSCs can leverage these advantages to combat food insecurity and offer vocational training to disadvantaged groups. Marsden, Banks, and Bristow [73] suggest that by shortening the food supply chain, SEOs can also promote environmental sustainability by reducing food miles and carbon emissions, a crucial consideration in the face of climate change. While SFSCs are often associated with positive environmental and social outcomes, this assumption requires nuance. Shorter physical distance does not always guarantee a lower carbon footprint. For instance, imported products transported over long distances may sometimes generate fewer emissions than locally produced food grown in energy-intensive greenhouses during the winter season. This highlights the importance of systematic measurement of CO₂ emissions when assessing the true sustainability of food supply models.

Several social economy initiatives exemplify efforts in SFSCs. In Italy, farmers’ markets enable direct interaction between producers and consumers, creating social, and environmental value. These markets are seen as sociotechnical contexts that highlight the importance of consumer experience in value creation [74]. In Romania, Local Gastronomic Points prepare and serve culinary products directly to consumers using local raw materials, creating multiple short food chains and promoting sustainable agri-food systems [75]. Across Europe, Fisheries Local Action Groups have integrated SFSCs into their local development strategies to enhance territorial cohesion and social renewal in coastal economies. By leveraging social capital, these groups aim to increase the market share of SFSCs, adding value and localizing the fishing sector [76]. In the Netherlands, urban farming projects are part of short agri-food supply chains that promote sustainability and the local economy. Despite challenges like limited resources and regulatory compliance, they are expected to evolve into local-to-local business models supporting urban farming [77]. These chains are proposed as solutions to unsustainable global food supply chains, focusing on key relationships and governance within the supply chain. They aim to address sustainability indicators and enhance the role of intermediaries in food systems [78]. In Brazil, various social economy initiatives have facilitated direct purchase agreements between food service providers and organic farmers, improving farmers’ capacity to meet industry standards and enhancing SFSC outcomes [79]. In Parma, Italy, the MercaTiAmo project organizes farmers’ markets, measuring its outcome with the Local Multiplier 3 method to highlight the benefits of local food networks [80].

While these initiatives highlight the positive outcome of social economy organizations on SFSCs, challenges persist. Urban farming faces high costs and regulatory barriers, limiting scalability and sustainability [77]. Additionally, the benefits of SFSCs remain debated, as they may not be equally distributed among stakeholders [80]. Despite these obstacles, ongoing innovation in SFSCs continues to strengthen local food systems and community resilience.

3. Methods

Given the limited knowledge about new areas of engagement for SEOs, this paper aims to address these issues by exploring the following research question:

In what ways do social economy organizations contribute to the integration of circular economy principles, decarbonization efforts, and the development of short food supply chains (SFSCs), and what are the key social and environmental outcomes of these initiatives?

In the conducted research, the ontological perspective is relativistic, meaning that knowledge is understood as an intersubjective construct rather than an objective reality. A qualitative methodology was adopted for data collection and analysis, as it aligns best with the study’s objectives. Specifically, an exploratory case study approach was utilized, recognized for its flexibility and adaptability in complex research settings. This method is particularly valuable for investigating underdeveloped or emerging theoretical frameworks, allowing researchers to refine existing constructs or develop new ones when conventional theories prove insufficient [81]. Such adaptability is crucial for examining intricate social and organizational dynamics, where rigid variables may obscure significant insights. By fostering deep, context-dependent understandings, exploratory case studies offer a rich qualitative lens through which researchers engage with participants’ lived experiences [82]. This approach is particularly effective for addressing “how” and “why” questions, uncovering underlying mechanisms that might be overlooked by more rigid methodologies [81]. The iterative nature of this approach enables ongoing refinement of the research focus as emerging themes and patterns are identified [83], making it a fundamental tool for theory development in complex contexts [84]. Additionally, the integration of multiple data sources—including interviews, documents, and observations—enhances the reliability of findings through triangulation, providing a more nuanced and multi-dimensional analysis [85], further reinforcing its role as a powerful methodological tool.

The research material and data for the analysis were collected as part of the international project “Social Economy for a Just Green Transition (JustGreen)” funded by the European Union under the COSME program (grant agreement number 101015873). Rooted in fundamental human values such as equity, solidarity, and social justice, the project aimed to explore three core themes: (i) connecting the social economy with the Circular Economy, (ii) advancing the Decarbonization of the social economy, and (iii) enhancing Short Food Supply Chains. A cross-cutting priority throughout these areas was the goal of leaving no one behind (iv), particularly by fostering social entrepreneurship aimed at integrating vulnerable groups into the workforce and addressing unmet social needs, often affecting the most disadvantaged populations, such as the elderly and individuals with disabilities.

To achieve these objectives, the project consortium brought together five highly diverse partners with proven expertise in best practices, alongside a wide range of social economy stakeholders. The consortium included four municipalities—Vila Nova de Famalicão (Portugal), Comune di Mozzo (Italy), Gmina Świętochłowice (Poland), and Budapest-Terézváros (Hungary)—alongside one European network, the European Network of Social Integration Enterprises (ENSIE), which played a key role in connecting and amplifying social economy efforts at the European level.

Throughout the one-year period, from February 2021 to February 2022, the project created an enabling environment for the participation of 24 SEOs with varying levels of experience in European projects and differing degrees of familiarity with green transition topics. This inclusive approach facilitated a dynamic exchange of knowledge, mutual learning, and the development of strong connections and collaborative networks among participants. Additionally, the project aimed to enhance cooperation between diverse stakeholders across multiple countries and regions, equipping them with the tools and insights necessary for a fair and sustainable transition. To achieve these goals, the project implemented a series of structured activities, including three workshops hosted by partner countries—Portugal, Poland, and Italy—providing in-person engagement and hands-on learning experiences. Although the workshops took place in different locations, many of the same participants attended all three, fostering continuity, strengthening trust, and enabling the seamless progression of ideas from one session to the next.

Complementing these workshops, three parallel online thematic working groups were established and facilitated, allowing participants to delve deeper into key areas: Circular Economy (CE), Decarbonization (D), and Short Food Supply Chains (SFSC). Each working group engaged in six online sessions, conducted on Google Meets, each lasting 120 min.

A key element of the JustGreen project was the identification and use of good practices—proven, replicable methods that address challenges in cooperation and development through innovation and learning [86]. To qualify, a practice had to be implemented by or with a SEOs, align with one of the project’s three themes—circular economy, decarbonization, or short food supply chains—and demonstrate positive effects on social inclusion or employment. Each was backed by evidence of effectiveness, ensured long-term sustainability, promoted transparency, and offered potential for adaptation in other contexts [86].

Beyond structured meetings, the project incorporated continuous knowledge-sharing efforts, including the exchange of case studies, expert insights, and good practices, all of which contributed to developing practical, actionable solutions for sustainable transitions. Over the course of a year, 42 good practices submitted by municipalities and 24 SEOs involved in the project were systematically analyzed to determine their type and thematic focus. The analysis assessed whether a given practice was initiated by local or regional authorities in collaboration with a SEO or whether it was an independent initiative led by a SEO. Additionally, each practice was categorized according to its primary objective, identifying whether it contributed to CE, Decarbonization, or SFSCs. The selection of case studies (best practices) was conducted using the competent judges method, a widely recognized approach in qualitative research for its simplicity and effectiveness in ensuring expert-driven validation. This method is particularly suited for studies requiring subjective expert evaluation and qualitative verification. From the initial 42 practices, 16 case studies were selected for in-depth analysis (Figure 1). In addition to relevance and sustainability, the final 16 cases were selected to ensure geographical diversity, sectoral variety, degree of maturity, and transferability potential. This ensured that the sample not only reflects high-quality practices but also captures the diversity of socio-economic and policy contexts across Europe.

The selection process was conducted by a panel of experts representing each functional area, who, based on their specialized knowledge, professional experience, and subject-matter expertise, independently assessed and evaluated the cases using predefined criteria. The competent judges examined each case study in terms of its relevance, representativeness, and potential contribution to the project’s objectives. Their evaluations were systematically analyzed to ensure consistency and alignment, leading to an objective and evidence-based selection process. This rigorous approach ensured that the final selection of case studies met high qualitative standards, making them well-suited for further research and analysis. The timeline of our research process, including the stages of case study development is presented in Figure 2. This visual representation illustrates the structured sequence of activities, beginning with the initiation of the project, followed by online working groups and workshops.

Our research framework incorporates the project’s proposal, materials generated during its implementation, and the outcomes of conducted activities, including those developed within three online thematic working groups and workshops. Additionally, the study encompasses a collection of good practices identified throughout the project. As a result of these efforts, the presented case studies were developed and subsequently subjected to a comprehensive analysis.

4. Results

This section presents sixteen good practices collected throughout the project, evaluated according to the project’s defined criteria, as outlined in

Table 2. Evaluation Criteria for Good Practices in the Project.

Title 1	Title 2
Collaboration 1	(1) The practice involves no collaboration between SEO and municipalities (2) There is occasional collaboration between SEO and municipalities (3) There is regular collaboration between SEO and municipalities
Collaboration 2	(1) The practice does not network with other SEO (2) The practice is part of an informal network of SEOs and collaborates occasionally with them (3) The practice is part of a formal network of SEOs and cooperates constantly with them
Environmental value	(1) The practice involves no or little concern for CE, decarbonization or SFSCs (2) The practice aims to promote CE, decarbonization or SFSCs (3) Promotion of CE, decarbonization or SFSCs confirmed by quantitative or qualitative evidence
Social value	(1) The practice involves no or little concern for inclusion or employment (job creation, access to goods and services, participation or learning opportunities—for vulnerable groups) (2) The practice aims to promote inclusion or employment (job creation, access to goods and services, participation or learning opportunities—for vulnerable groups) (3) Positive effect on inclusion or employment confirmed by quantitative or qualitative evidence
Maturity	(1) The practice is less than 4 years old (2) The practice is between 4 and 9 years old (3) The practice is 10 years old or more
Transparency	(1) The responsible organizations communicate poorly about the practice; few information is available (2) Some information about the practice (activities, beneficiaries, outcomes, funding, finances, and governance) is made publicly available and information requests are answered (3) Information on activities, beneficiaries, outcomes, funding, finances, and governance is made publicly available on a regular basis

Source: Project materials.

, and illustrated through radar charts (Figure 3, Figure 4 and Figure 5) for each of the three focus areas: Circular Economy (CE), Decarbonization (D), and Short Food Supply Chains (SFSC). In addition to presenting individual case studies, the analysis focuses on identifying the catalytic pathways through which SEOs advance the green transition. Across the three thematic areas—Circular Economy (CE), Decarbonization (D), and Short Food Supply Chains (SFSCs)—several common mechanisms can be observed. First, SEOs overcome structural barriers (e.g., regulatory, financial, or infrastructural) by co-operating with municipalities and leveraging multi-stakeholder support. Second, they form alliances and networks with other social economy actors, businesses, and civil society organizations, which enhances legitimacy, scalability, and knowledge transfer. Third, SEOs diffuse green innovations by embedding environmental objectives into inclusive services such as job creation, training, and community initiatives, thereby fostering behavioural change at the local level. Finally, SEOs act as connectors between social and environmental agendas, showing that sustainability goals can reinforce, rather than compete with, social inclusion. These catalytic mechanisms are synthesized in

Table 3. Summary of Good Practices in SFSCs: Organizational Characteristics and Outcomes.

Country	Year	Type of Organisation	Type of Good Practice	Outcomes
				Social	Environmental
Banyaerdő
Hungary	2011	Social Enterprise	Initiative of SEO	Individual Empowerment: providing fair wages, skills development, creating job opportunities for disadvantaged groups Community Development: building local partnerships, promoting social inclusion, cooperation with local stakeholders	Promotion of Green Skills: training in food production from forest resources, mushroom collecting, sustainable harvesting Conservation and Environmental Stewardship: using local natural resources responsibly, promoting sustainable tourism
Kockacsoki
Hungary	2015	Social Enterprise	Initiative of SEO	Individual Empowerment: improving life conditions of young people with autism through employment and training Community Development: creating inclusive spaces (autism-friendly café), promoting social inclusion and participation Societal Transformation: raising awareness and reducing stigma related to autism	Sustainability Initiatives: promoting sustainable production and consumption (local handmade chocolate) Conservation and Environmental Stewardship: using sustainable ingredients and practices in chocolate production
Centro Social de Bairro
Portugal	2016	Social Centre	Initiative of local/regional authorities involving SEO	Individual Empowerment: employment and training opportunities for young disabled people Community Development: promoting social and cultural inclusion, education, skill development Community Strengthening: fostering cooperation, local engagement, and SFSCs	Promotion of Green Skills: training in sustainable agriculture, local food production, circular economy practices Sustainability Initiatives: closed-loop system in food production, reuse of wood residues for energy, use of solar heaters Conservation and Environmental Stewardship: reducing waste, supporting local ecological solutions
Il Sole e la Terra
Italy	1979	Non-profit consumer cooperative	Initiative of SEO	Individual Empowerment: creating work opportunities for vulnerable groups (disabled people, former prisoners, people in difficulty) Community Development: promoting social agriculture, local partnerships, training and inclusion Societal Transformation: promoting ethical consumption, fair trade and solidarity economy	Sustainability Initiatives: promoting organic farming, use of renewable energy, reducing food waste Conservation and Environmental Stewardship: selling bulk products, reusing packaging, compostable materials, circular practices in local food supply chains
La Porta del Parco
Italy	2013	Municipality and two social cooperative	Initiative of local/regional authorities involving SEO	Individual Empowerment: providing jobs and training opportunities for vulnerable groups through social farming and catering Community Development: participatory urban regeneration, building social ties via community gardens, farmers’ market, cultural events Community Strengthening: inclusive use of public space, increasing social engagement of local residents	Sustainability Initiatives: conversion to organic farming, protection of agricultural land Promotion of Green Skills: teaching sustainable agriculture practices to community and vulnerable groups Conservation and Environmental Stewardship: supporting short food supply chains and local ecological solutions
I Raìs
Italy	2016	Community cooperative	Initiative of SEO	Individual Empowerment: creating new job opportunities for young people, strengthening local identity and entrepreneurship Community Development: preventing depopulation of mountain areas, revitalizing local traditions and social life Community Strengthening: fostering cooperation among local farmers, offering services for residents and visitors, enhancing community well-being	Sustainability Initiatives: promoting short food supply chains through local food production and consumption Conservation and Environmental Stewardship: reuse of old mines for cheese aging, reducing environmental impact of transportation Promotion of Green Skills: sharing knowledge in sustainable tourism, local gastronomy, and ecological food systems
Meal Delivery
Poland	2021	Municipality	Initiative of local/regional authorities involving SEO	Individual Empowerment: supporting seniors through daily meals and integration activities Community Development: social inclusion of elderly people, addressing social isolation, promoting active ageing Community Strengthening: fostering cooperation between local institutions and social economy actors	Sustainability Initiatives: meals prepared from locally sourced ingredients, reducing the environmental impact of long-distance transport Promotion of Green Skills: raising awareness on healthy eating and sustainable food practices Conservation and Environmental Stewardship: promoting SFSCs and supporting local producers

Source: own elaboration.

,

Table 4. Summary of Good Practices in Circular Economy: Organizational Characteristics and Outcomes.

Country	Year	Type of Organisation	Type of Good Practice	Outcomes
				Social	Environmental
Municipal Furniture Bank
Portugal	2012	Municipality and social enterprise	Initiative of local/regional authorities involving SEO	Individual Empowerment: providing free furniture to economically disadvantaged families, improving their living conditions Community Development: fostering solidarity, community engagement, and volunteering Community Strengthening: offering training and skill development in furniture restoration, involving vulnerable groups, seniors, and students	Sustainability Initiatives: promoting reuse of furniture, extending product life cycles Conservation and Environmental Stewardship: reducing waste and product consumption through circular economy practices Promotion of Green Skills: training in furniture restoration, upcycling, and conservation techniques.
Silesian Exchange Group
Poland	2017	SEO	Initiative of SEO	Community Development: promoting social integration and cooperation through exchange events Community Strengthening: building local networks and fostering social engagement Education and Awareness: raising awareness of sustainable consumption, zero waste and circular economy practices	Sustainability Initiatives: promoting reuse of items and waste reduction through exchange events and online platform Conservation and Environmental Stewardship: reducing waste generation and landfill burden Promotion of Green Skills: encouraging responsible consumption habits and resource sharing
La Miniera
Italy	2016	Municipality and social enterprise	Initiative of local/regional authorities involving SEO	Individual Empowerment: creating supported employment programs for vulnerable people Community Development: providing access to useful second-hand items for people with limited resources Community Strengthening: promoting the culture of reuse and social solidarity	Sustainability Initiatives: promoting reuse of items and extending product life cycles Conservation and Environmental Stewardship: reducing waste, saving raw materials, decreasing energy and cost of waste disposal Promotion of Green Skills: educating citizens about circular economy and environmental responsibility
Groupe Terre
Belgium	2017	SEO	Initiative of SEO	Individual Empowerment: providing stable employment, involving workers in participatory decision-making, promoting fair working conditions Community Development: supporting local economic development, fostering social inclusion, engaging citizens in recycling culture Community Strengthening: building strong social networks through second-hand shops and social entrepreneurship	Sustainability Initiatives: collecting and recycling 17,000 tons of textiles annually, with 60% being reused Conservation and Environmental Stewardship: reducing textile waste, extending product life cycles, promoting responsible consumption Promotion of Green Skills: increasing awareness about textile reuse, recycling practices, and circular economy solutions

Source: own elaboration.

and

Table 5. Summary of Good Practices in Decarbonization: Organizational Characteristics and Outcomes.

Country	Year	Type of Organisation	Type of Good Practice	Outcomes
				Social	Environmental
Smart Building Automation System
Portugal	2019	Municipality	Initiative of local/regional authorities involving SEO	Individual Empowerment: increasing students’ social and environmental awareness, developing professional skills through practical projects Community Development: reducing operational costs in educational institutions, promoting smart and sustainable growth Community Strengthening: fostering cooperation between school, local government, and students	Sustainability Initiatives: significant reduction in electricity consumption (from €4200 to €1486 annually), reduction of CO2 emissions Conservation and Environmental Stewardship: rational use of natural resources, smart energy management systems, reuse of appliances and small components Promotion of Green Skills: teaching students skills in energy efficiency, smart technologies, and environmental responsibility
Green Office
Poland	2020	Social Integration Centre	Initiative of SEO	Individual Empowerment: building ecological awareness and responsibility among employees and participants Community Development: promoting social responsibility in the workplace Education and Awareness: shaping pro-ecological attitudes, changing stereotypes about employment barriers	Sustainability Initiatives: green office principles—rational use of energy, reducing paper consumption, waste segregation Conservation and Environmental Stewardship: electronic circulation of documents, sustainable purchasing policies, energy-saving practices Promotion of Green Skills: educating about everyday ecological behaviours in office settings
Mastiff Cargo Bike
Hungary	2020	Social enterprise	Initiative of SEO	Community Development: improving sustainable urban mobility, supporting SMEs and local businesses in reducing transport costs Education and Awareness: promoting ecological transport solutions within local communities and businesses	Sustainability Initiatives: zero-emission cargo bike replacing motor vehicles for short and medium-distance transport Conservation and Environmental Stewardship: reduction of CO2 emissions (saving approx. 12 tons of CO2 per replaced van), reduction in air pollution and noise Promotion of Green Skills: encouraging the use and adaptation of environmentally friendly transport solutions
Ressolar Comunità Energetiche Rinnovabili
Italy	2021	Energy cooperative	Initiative of SEO	Community Strengthening: fostering cooperation between citizens, entrepreneurs, and local institutions around renewable energy Community Development: enabling collective energy production and management for economic savings and energy independence Education and Awareness: raising awareness about energy transition and sustainability	Sustainability Initiatives: promoting renewable energy use and maximizing local energy self-consumption Conservation and Environmental Stewardship: reducing dependence on fossil fuels, decarbonisation of the economy, energy autonomy of local communities Promotion of Green Skills: supporting knowledge and management of renewable energy technologies and local energy communities
Sustainable Thermo-Modernisation
Poland	2021	Municipality and Social Integration Centre	Initiative of local/regional authorities involving SEO	Individual Empowerment: providing employment and skills development for socially excluded individuals through renovation works Community Development: improving living conditions of residents, increasing comfort and safety in apartments Community Strengthening: promoting professional and social reintegration of marginalized groups	Sustainability Initiatives: improving energy efficiency of buildings by 65.49%, reducing energy consumption and heating costs Conservation and Environmental Stewardship: connecting buildings to the central heating system, eliminating 22 tiled stoves, reducing CO2 emissions by approx. 66% Promotion of Green Skills: involving individuals in ecological renovation techniques, improving knowledge of sustainable building management

Source: own elaboration.

, which summarize not only the social and environmental value of the analysed practices but also their role in driving systemic change.

While individual case descriptions illustrate context-specific activities, the comparative analysis highlights several catalytic pathways through which SEOs advance the green transition: (i) overcoming policy and regulatory barriers by forming alliances with municipalities; (ii) diffusing green practices through peer networks and social capital; (iii) embedding environmental goals into everyday services that simultaneously promote inclusion; and (iv) mobilizing local resources to accelerate community-led innovation. These catalytic mechanisms are synthesized in Table 3, Table 4 and Table 5 alongside social and environmental outcomes.

4.1. Short Food Supply Chain

4.1.1. Banyaerdő, Hungary

Banyaerdő, a social enterprise in Baranya County, promotes sustainability by producing and selling forest products while ensuring fair wages and utilizing local resources. It processes mushrooms and other plants with zero-waste packaging and SFSCs to support local markets. The enterprise mainly employs socially disadvantaged Roma women, offering fair wages, flexible work, and a family-friendly environment. It fosters independence by integrating inactive individuals, involving them in product development, and organizing community programs. Banyaerdő also expands its services with foraging tours, training, and community cooking sessions, strengthening local engagement and sustainability efforts.

4.1.2. Kockacsoki, Hungary

Kockacsoki is a social enterprise and chocolate manufactory that creates gourmet products while providing jobs for vulnerable individuals, especially those with autism. It aims to improve their quality of life by offering coaching, trainee programs, and permanent employment. People with autism, one of the most disadvantaged groups in the labor market, face challenges in social interaction and adaptability, but with proper support, they can thrive in workplaces. Kockacsoki also promotes SFSCs, sourcing ingredients locally to support farmers and reduce environmental impact. Its café, KockaPont, offers an autism-friendly space with premium coffee and chocolate products while hosting community events, fostering inclusivity and social engagement.

4.1.3. Centro Social De Bairro, Portugal

Centro Social de Bairro is a non-profit social institution in Vila Nova de Famalicão, Portugal, dedicated to community development and social inclusion since 1983. It addresses local needs through projects focused on social care, sustainability, and personal growth. Key initiatives include sustainable agriculture, providing fresh produce for children and the elderly while using waste for animal feed, and reusing wood residues to create pellets and briquettes, employing young people with disabilities. The center also cultivates medicinal plants, dried with solar heaters, and offers education programs to enhance community skills. By prioritizing SFSCs, Centro Social de Bairro supports local farmers, reduces environmental impact, and fosters community resilience.

4.1.4. Il Sole E La Terra, Italy

Il Sole e la Terra, a non-profit consumer cooperative founded in 1979, promotes sustainable food, agriculture, and conscious consumption. With 13,000 members, it provides quality products at fair prices while supporting local organic producers. The cooperative ensures a short food supply chain, directly linking farmers and consumers to sustain local businesses and encourage new enterprises. Many suppliers work in the social economy, employing people with disabilities and offering organic produce. Il Sole e la Terra also aids individuals in need through work grants and internships. It prioritizes sustainability by minimizing packaging, using recycled materials, and promoting plastic reuse. By focusing on local sourcing, it strengthens the economy, reduces environmental impact, and fosters community-driven sustainable consumption.

4.1.5. La Porta Del Parco, Italy

La Porta del Parco is a community project in Italy that enhances agricultural land and promotes sustainability. Led by two social cooperatives, it integrates organic farming, social initiatives, and local food production. Key elements include an organic vineyard employing vulnerable individuals, community vegetable gardens, a didactic orchard for education, and a restaurant using project-grown produce. The site hosts cultural events and a weekly farmers’ market, connecting consumers with local farmers and reinforcing short food supply chains. The initiative emphasizes sustainable agriculture, self-sufficiency, and community engagement. Through organic cultivation, education, and locally sourced meals, La Porta del Parco fosters a resilient and environmentally friendly food system.

4.1.6. I Raìs, Italy

I Raìs Community Cooperative was founded by young locals to revitalize a mountainous region by improving services for residents and attracting visitors. Their goal is to enhance social and economic life through local goods and services. The cooperative operates Trattoria Alpina, serving traditional dishes made with local ingredients, and produces Ol Minadùr, a signature cheese aged in restored mines for a unique flavor. By prioritizing SFSCs, I Raìs ensures fresh, locally sourced products, reducing environmental impact and supporting farmers. This approach strengthens the local economy, fosters sustainability, and promotes a self-sufficient food system while preserving regional culinary traditions.

4.1.7. Meal Delivery, Poland

The meal delivery program in Świętochłowice supports seniors over 60 by providing meals and fostering social integration through health programs, physical therapy, and cultural activities. As part of the Senior+ Program (2021–2025), it serves various groups. The Social Integration Centre offers daily meals to 80 participants and provides Christmas packages for families in need. Occupational therapy workshops and the Support Centre for Victims of Family Violence also provide meals. The Social Welfare Centre supports 57 seniors, with some receiving meals on-site and others assisted by caregivers. The Senior Home serves 50 elderly individuals with free dietary meals. By relying on SFSCs and locally sourced ingredients, the program ensures fresh, nutritious meals, supports local farmers, reduces environmental impact, and strengthens community bonds.

The analysis of selected good practices related to SFSCs illustrates how SEOs contribute to the development of sustainable and resilient local food systems. These initiatives not only support local producers and reduce the environmental impact of food transport but also foster social inclusion and create employment opportunities for vulnerable groups. Table 3 provides a summary of the most relevant organisational characteristics and key social and environmental outcomes generated by the analysed practices. The diversity and intensity of SEO engagement in SFSCs is further illustrated in Figure 3, which presents a multi-criteria assessment of the selected good practices.

SEOs play a significant role in the development and operation of SFSCs, which are designed to enhance local food systems by reducing the distance between producers and consumers. These organizations engage in various activities that contribute to economic, social, and environmental sustainability.

4.2. Circular Economy

4.2.1. Municipal Furniture Bank, Portugal

The Municipal Furniture Bank in Vila Nova de Famalicão is a CE initiative led by the Municipal Social Action Division in partnership with businesses and social organizations. It collects and redistributes donated furniture to low-income families, reducing waste while meeting essential needs. Beyond its environmental impact, the project fosters social inclusion by engaging volunteers, including seniors and students from the CIOR Professional School, in furniture restoration and conservation. Training programs help participants develop skills in woodworking and upcycling, creating opportunities for vulnerable groups. The project raises community awareness about solidarity, waste reduction, and sustainable consumption while providing essential household items to those in need. Future plans include expanding furniture restoration efforts and strengthening partnerships with businesses to better address local families’ needs.

4.2.2. Silesian Exchange Group, Poland

The Silesian Exchange Group, launched by Stowarzyszenie Wolnej Herbaty, is a CE initiative promoting reuse and waste reduction in the Silesian Voivodeship. It operates both online, through a Facebook group with over 18,000 members, and offline, via exchange events where participants swap items they no longer need. Each week, the group facilitates over 350 new posts and 1500 interactions, fostering active engagement in sustainable consumption. This initiative lowers waste production, extends product life cycles, and educates the community on responsible consumer habits. It also has a social dimension, encouraging local networking and promoting environmentally conscious lifestyles. By combining digital tools and in-person activities, Silesian Exchange Group provides an accessible, community-driven solution to waste reduction and circular economy promotion.

4.2.3. La Miniera, Italy

La Miniera di Curno, located near Bergamo, is a reuse center that promotes CE principles by extending the lifecycle of products. Instead of discarding usable items at waste collection sites, residents donate them to the center, where they are redistributed to people in need. The initiative reduces waste, saves raw materials, and lowers costs associated with waste disposal. It also has a strong social impact, offering employment opportunities for vulnerable individuals through supported work programs. Donations help sustain the project, ensuring its long-term viability. By fostering a culture of reuse and responsible consumption, La Miniera contributes to both environmental sustainability and social inclusion. The project measures its success by tracking the amount of waste avoided and the financial savings generated through reuse.

4.2.4. Groupe Terre, Belgium

Groupe Terre, based in Herstal, Belgium, is a social and solidarity economy collective that has promoted responsible resource use, community participation, and fair employment since 1949. Operating under participatory direct democracy, the organization ensures that workers are actively involved in decision-making, reinforcing social equity and sustainable economic models. Their key initiative specializes in textile collection and recycling, processing over 17,000 tons of clothing annually, with 60% being reused. Groupe Terre also runs second-hand clothing stores, offering affordable, high-quality apparel while extending product life cycles and reducing textile waste. Beyond its environmental impact, the organization fosters social inclusion, supporting long-term employment, local economic development, and community engagement.

The examined good practices in the field of CE highlight the ability of SEOs to promote resource efficiency, waste reduction, and responsible consumption. These initiatives successfully combine environmental objectives with social goals, providing employment, developing skills, and engaging local communities. Table 4 summarises the organisational features and main social and environmental impacts of the selected practices. The diversity and intensity of SEO engagement in CE is further illustrated in Figure 4, which presents a multi-criteria assessment of the selected good practices.

SEOs play a crucial role in advancing the CE by integrating social, economic, and environmental objectives. These organizations engage in various activities that promote resource efficiency, waste reduction, and social inclusion. Their efforts are often characterized by innovative approaches to recycling, reuse, and upcycling, which not only contribute to environmental sustainability but also foster community development and social cohesion.

4.3. Decarbonization

4.3.1. Smart Building Automation System, Portugal

CIOR Professional School implemented a Smart Building Automation System to reduce electricity consumption in lighting, air conditioning, and IT equipment. The system enables integrated control of energy use, blinds, alarms, and CCTV, significantly lowering costs and CO₂ emissions. Installed as part of a vocational training project, it provided hands-on experience for students in Electronics and Electrical Installations. As a result, annual energy bills dropped from €4200 to €1486, demonstrating both financial savings and environmental benefits.

4.3.2. Green Office, Poland

The Social Integration Centre in Świętochłowice introduced “The Green Office”, a sustainability initiative aimed at reducing energy and material waste in daily operations. Practices include maximizing daylight use, switching off standby-mode devices, double-sided printing, waste segregation, and choosing environmentally friendly supplies. Electronic document circulation further reduces paper use. By integrating these eco-friendly measures, the initiative lowers energy consumption and minimizes the centre’s carbon footprint.

4.3.3. Mastiff Cargo Bike, Hungary

Mastiff, a Hungarian-made Long John-type cargo bike, was launched in 2020 as a social enterprise offering a fast, stable, and practical solution for urban transport and delivery. Available in standard and electric versions, it features adaptable accessories like transport and child boxes, making it suitable for businesses and families. Affordable to maintain, carbon-neutral, and emission-free, it can replace a single van, saving 12 tons of CO₂ annually. Its ability to bypass traffic and enter restricted areas supports short supply chains and eco-friendly logistics. Budapest’s Terézváros district backs such initiatives, aiming to reduce urban freight traffic and prioritize residents and tourists.

4.3.4. Ressolar Comunità Energetiche Rinnovabili, Italy

Since 2021, Italy has allowed the creation of Renewable Energy Communities (CER), enabling buildings to share locally produced renewable energy instead of feeding excess power into the national grid. Now, companies, homes, and schools can supply energy to nearby residences, shops, and public buildings, even if they lack their own solar panels. This initiative reduces dependence on fossil fuels and supports the shift to a low-carbon economy. To encourage CER development, financial incentives are available. Ressolar Comunità Energetiche Rinnovabili, a start-up within the Ressolar Group, facilitates these communities by managing technical, administrative, and financial processes.

4.3.5. Sustainable Thermo-Modernisation, Poland

The Municipality of Świętochłowice launched a thermo-modernisation project to improve the energy efficiency of public buildings, reducing CO₂ emissions by 66%. The initiative involved connecting 11 apartments to the district heating network and eliminating 22 coal and wood stoves, significantly cutting air pollution and energy costs. Beyond its environmental impact, the project also had a strong social dimension. Part of the renovation work, including window and door replacements, stairwell renovations, and painting, was carried out by individuals at risk of social exclusion as part of a reintegration program. By engaging socially disadvantaged people in employment, the project not only improved living conditions but also supported workforce inclusion and strengthened community resilience.

In the area of decarbonisation, the analysed good practices confirm that SEOs play an increasingly important role in promoting low-carbon solutions, improving energy efficiency, and reducing greenhouse gas emissions at the local level. These initiatives not only address environmental challenges but also provide social benefits, such as employment creation, skills development, and community engagement. Table 5 summarises the key organisational characteristics and the most significant social and environmental outcomes of these decarbonisation-oriented practices. The diversity and intensity of SEO engagement in decarbonisation is further illustrated in Figure 5, which presents a multi-criteria assessment of the selected good practices.

SEOs play a crucial role in advancing decarbonization efforts by integrating social and ecological missions. These organizations engage in diverse activities that contribute to reducing carbon emissions while simultaneously promoting social inclusion and economic development. Their efforts are often characterized by innovative approaches that merge sustainability with social justice, creating a distinct impact on the transition to a low-carbon economy.

5. Discussion and Conclusions

This study aimed to explore the role of SEOs in fostering both social and environmental outcomes within the context of the green transition. The analysis of selected good practices from different European countries confirms that SEOs are increasingly contributing to decarbonisation, circularity, and localized food systems. Through initiatives in the field of CE, decarbonisation, and SFSCs, SEOs demonstrate their capacity to act as agents of sustainable local development and social-ecological innovation. Importantly, these efforts are often anchored in local energy governance models, involving community members, marginalized groups, and public actors in the co-design of low-carbon solutions. Although these three main areas of SEO engagement differ in their thematic focus, they share several common features and generate both social and environmental outcomes [87]. SEOs emerge as key enablers of the just energy transition—not merely as service providers, but as institutional innovators that combine climate action with equity and participation [88]. Their activities demonstrate that low-carbon development can be both inclusive and context-sensitive, particularly when driven by trust-based, locally grounded organizations. Importantly, SEOs act not only as service providers or employers but also as innovators and change agents in local ecosystems [89,90].

Firstly, SEOs effectively combine environmental objectives with social goals. For example, in circular economy initiatives (e.g., Municipal Furniture Bank, Groupe Terre, La Miniera), resource efficiency and waste reduction are closely linked with social inclusion, job creation, and skills development for vulnerable groups. This integration illustrates the unique potential of SEOs to operationalise the concept of a just green transition in practice [91].

Secondly, SEOs play an essential role in promoting green skills and environmental awareness. Many of the analysed practices involve training activities, education, and direct engagement of employees, volunteers, and local residents in sustainable practices (e.g., smart energy management in Portugal, food production and circular activities in Hungary, Poland, and Italy). These actions foster behavioural change and promote long-term environmental responsibility within communities [88].

Thirdly, the importance of local partnerships and multi-stakeholder cooperation emerged as a key success factor. Initiatives co-created by municipalities and SEOs (e.g., in Poland, Italy, Portugal) highlight that public–private social collaboration enhances the scalability, impact, and sustainability of green projects. Municipalities provide infrastructure, funding, and policy support, while SEOs offer flexibility, local knowledge, and trust-based relationships with target groups [92]. Beyond the European experiences analyzed in this study, it is also important to recognize the role of international NGOs and certification schemes in validating environmental and social performance through market-based mechanisms. Initiatives such as FairTrade, FSC, MSC, or ASC have developed standardized methodologies for assessing and communicating sustainability impacts on a global scale. While the focus of our research was on European SEOs within the JustGreen project, these international frameworks provide useful parallels and potential benchmarks for evaluating the catalytic contributions of SEOs in sustainability transitions.

A key contribution of our analysis is the identification of catalytic pathways that cut across the three domains under study. While the thematic focus of CE, D, and SFSC initiatives differs, the underlying mechanisms show strong convergence. In Circular Economy practices, SEOs catalyse change primarily by closing material loops and linking waste reduction with skills development for vulnerable groups. In Decarbonization initiatives, their catalytic role emerges through mobilizing communities around energy efficiency and renewable energy, often overcoming policy and infrastructural barriers in collaboration with municipalities. In Short Food Supply Chains, SEOs act as catalysts by shortening producer–consumer links, fostering trust, and embedding ecological objectives into local food security and inclusion strategies. Taken together, these pathways demonstrate that the catalytic role of SEOs lies less in sector-specific outputs and more in their capacity to integrate social inclusion with environmental transformation, thereby accelerating the just green transition.

Our research confirms that SEOs can act as laboratories of social-ecological innovation, experimenting with sustainable solutions tailored to local needs. Their bottom-up approaches, rooted in local communities, allow for high levels of adaptability and social legitimacy, which are critical for the success of green transition policies [93]. The case studies confirm that SEOs support green skill development, empower vulnerable populations, and decentralize energy innovation. These contributions are crucial for addressing challenges such as energy poverty, fossil fuel dependency, and socio-technical lock-ins [66]. Importantly, the presented good practices show that environmental goals do not compete with the social mission of SEOs but rather complement and strengthen it. Nevertheless, it is important to acknowledge potential trade-offs. While supporting local producers and shortening supply chains can strengthen community resilience and create fairer value distribution within Europe, such strategies may also generate social costs for producers in the Global South by limiting their export opportunities. This tension highlights that SEOs’ contributions to sustainability transitions should be assessed not only from a local or regional perspective but also in light of global justice considerations. In fact, the integration of CE, decarbonisation and SFSCs principles into SEOs’ operations opens new possibilities for creating blended social and environmental value [89], in line with evidence that CE-aligned business models and technologies can deliver both ecological and social benefits [94] and that SFSCs embedded in CE logic enhance sustainability performance and territorial resilience [95].

This synergy between environmental sustainability and social inclusion reinforces the relevance of the social economy sector as a key actor in delivering the objectives of the European Green Deal and the SDGs [88]. Unlocking their full potential requires dedicated funding mechanisms, access to green technologies, and supportive multi-level policy frameworks. As Europe accelerates its efforts toward climate neutrality, SEOs should be recognised as strategic partners in implementing renewable energy communities, energy efficiency upgrades, and behavior-change initiatives at scale [91]. Ultimately, the integration of social and ecological missions by SEOs reaffirms their centrality to delivering not just decarbonisation—but a fair, democratic, and resilient energy future.

Overall, our findings suggest that the catalytic role of SEOs does not stem from sector-specific outputs alone but from their ability to integrate social inclusion with environmental objectives. By overcoming barriers, forming alliances, and diffusing green innovations, SEOs act as catalysts of systemic change across circular economy, decarbonization, and short food supply chains, thereby reinforcing the just green transition.

5.1. Research Limitations

Despite its valuable insights, this research is not without limitations. The study adopted a qualitative approach based mainly on desk research and secondary data analysis. Therefore, the findings should be interpreted with caution, as they may lack the depth and contextual understanding that could be provided by primary data collection methods such as interviews or surveys. Additionally, the analysis primarily focused on internal SEOs perspectives, while the views of external stakeholders, including beneficiaries or community members, were not sufficiently explored.

Another limitation relates to the lack of systematically collected quantitative data on environmental impacts. Since the JustGreen project primarily documented good practices qualitatively, no standardized metrics on CO₂ reductions, waste avoidance, or energy savings were gathered. As a result, the present study could not quantify environmental outcomes or conduct a comparative assessment of catalytic efficiency across circular economy, decarbonization, and short food supply chain initiatives. While some proxy indicators are mentioned, they remain fragmented and insufficient for robust comparison. Future research should integrate mixed-methods approaches, combining qualitative insights with quantitative indicators such as life-cycle assessments, carbon footprint reduction rates, or resource efficiency measures, to capture both the scale and durability of environmental outcomes.

Finally, the study did not assess the potential global social costs of strengthening local producers in Europe, such as reduced export opportunities for farmers in the Global South. This dimension was beyond the scope of the JustGreen project, which focused on European SEOs, but it represents an important area for further research.

5.2. Future Research Directions

Further research is needed to better understand several important aspects of the evolving role of SEOs. In particular, future studies should focus on: (1) the long-term environmental impact of SEOs’ activities, for example, through the measurement of CO₂ reduction, resource savings, and waste prevention; (2) the role of SEOs in developing green skills and raising environmental awareness within local communities; (3) the barriers and success factors in integrating environmental goals into SEO strategies; and (4) the dynamics of cooperation between SEOs, municipalities, and business actors in implementing green transition projects. Moreover, comparative studies conducted across different socio-economic and institutional contexts could provide valuable insights into the conditions under which SEOs can most effectively contribute to sustainable development. Future research could benefit from adopting a mixed-methods approach and broadening the range of data sources.

5.3. Policy Recommendations

To foster the role of SEOs in advancing both social and environmental outcomes, several policy actions should be considered. First, policy frameworks at the EU, national, and regional levels should explicitly recognise SEOs as key actors in the green transition, integrating them into strategies related to the CE, decarbonisation, and SFSCs. Second, it is essential to provide financial support and incentives, such as dedicated funding instruments, green investment funds, or tax reliefs, to facilitate SEOs’ access to resources necessary for implementing environmentally friendly solutions. Moreover, investing in green skills development is crucial. Training programmes and educational initiatives should be designed to equip SEOs’ employees and beneficiaries with competences related to sustainability, energy transition, and circular practices. Strengthening multi-stakeholder cooperation also plays a vital role, as policies should promote collaborative models between SEOs, municipalities, businesses, and citizens to co-create green solutions at the local level. Equally important is facilitating access to green technologies by providing support mechanisms that enable SEOs to adopt innovative and low-carbon technologies suited to their scale of activity and specific needs. Finally, raising awareness of the environmental potential of SEOs through communication campaigns and knowledge-sharing platforms can help to highlight their positive environmental contributions and inspire the replication of good practices across different contexts. By implementing these policy recommendations, policymakers can not only strengthen the environmental role of SEOs but also accelerate a just and inclusive green transition in European societies.