Unlocking the Social Economy 2025

3.5 Public procurement to build inclusive, sustainable markets 3.6 Market regulation Economic equity dimension: Access to capacity and markets Governments can also strengthen economic equity in the green and digital transitions by prioritizing environmental and social considerations in public procurement. This could encourage suppliers to adopt sustainable and inclusive business practices and increases the overall availability of ethical products and services. In South Korea, the government adopted an act on the promotion of the purchase of green products, which aims to prevent waste of resources and environmental pollution and contribute to the sustainable development of the national economy.72 Similarly, the City of Portland in Oregon showed success in its five-year initiative to switch to locally sourced green cleaning products, which resulted in the city both cutting costs and reducing its footprint.73 Economic equity dimension: All Another mechanism some governments have adopted to help steer companies to contribute to economic equity is market regulation. For example, the European Green Deal regulations include the Corporate Sustainability Reporting Directive (CSRD) which enhances and standardizes the disclosure of sustainability information by companies.77 It ensures that investors, consumers, policy-makers and other stakeholders can access reliable and comparable data regarding the environmental, social and governance impacts of companies. Another example includes the German Act on Corporate Due Diligence Obligations in Supply Chains, which obliges large companies to ensure that human rights and environmental standards are upheld throughout their supply chains.78 It requires companies to conduct risk analyses, establish preventive measures, implement remedial actions and report annually on their due diligence activities. These types of market regulations aim to make companies more accountable of their social and environmental impact. In the design of market regulations, it is crucial to consider and mitigate potential negative impacts on developing economies.Amsterdam Impact in the Netherlands BOX 13 The city of Amsterdam focused on placing social enterprises that produce financial and social value at the centre of the city’s economic strategy. This included developing stronger networks among social enterprises, providing more physical space and municipal funding, and connecting entrepreneurs with finance providers and customers.74 Amsterdam Impact has created an environment where local social enterprises can thrive. Amsterdam Impact, in partnership with Social Enterprise NL and the Buy Social partner network, has significantly enhanced deal- making opportunities for local social enterprises through its Buy Social matching events.75 These events connect impact-oriented enterprises with potential buyers from a range of companies and organizations, successfully facilitating over 50 transactions involving inclusive and sustainable products and services.76 Source: Amsterdam Impact Image credit: SEKEM 25 Unlocking the Social Economy: Towards Equity in the Green and Digital Transitions