Unlocking the Social Economy 2025

Preface We live in a time of great transformation, with the green and digital transitions leading the current wave of change. The green and digital transitions, often called the “twin transitions”, are closely interconnected. Digitization plays a vital role in driving sustainable growth, particularly during this decisive decade for climate action. However, growing attention is being paid to the significant environmental footprint of the digital economy and the disproportionate burden placed on both developing countries and marginalized communities everywhere. The transformation associated with the green and digital transitions brings disruptions and potentially exacerbates existing inequalities. In a global economy increasingly defined by digital skills, 2.6 billion people are still without reliable internet access1 and 760 million people are without access to electricity worldwide.2 In the green economy, communities that heavily depend on fossil fuel industries, such as coal mining and oil drilling, and those that depend on agriculture, are at risk of losing their current livelihoods and being left behind. To address these inequalities, leaders must find solutions that improve the inclusivity of our global economy and value chains. They must ensure that the green and digital transitions also benefit the historically underserved and the newly disrupted. Enterprises in the social and solidarity economy are providing inclusive and innovative business practices serving as an inspiration to governments and businesses on how to make that happen. By prioritizing social and environmental impact, the social and solidarity economy, majority-led by women and youth, intentionally drives a more equitable economy. Learning from the successful approaches and models used by entities of the social and solidarity economy, policy-makers can design policies to achieve greater equity and inclusivity in the green and digital transitions. Written in partnership with the World Economic Forum and Deloitte, this report by the Schwab Foundation for Social Entrepreneurship aims to guide government policy-makers and corporate leaders towards inclusive outcomes through innovative policies. By doing so, we can make the green and digital transitions more inclusive, equitable and effective for everyone. We stand at an important moment in an era of great change. By acting now to support social and solidarity economy entities and their innovations, we can harness the incredible power of these green and digital transitions to ensure that business success and social progress both move forward together.Hilde Schwab Co-Founder and Chairperson, Schwab Foundation for Social EntrepreneurshipChantal Line Carpentier Co-Chair, United Nations Inter-Agency Task Force on Social and Solidarity Economy (UNTFSS) Unlocking the Social Economy: Towards Equity in the Green and Digital Transitions September 2024 3 Unlocking the Social Economy: Towards Equity in the Green and Digital Transitions