Unlocking the Social Economy 2025

Executive summary This report focuses on the transformative forces of the green and digital transitions that are reshaping the way people live and work. The green transition is driven by the desire to decarbonize industries and promote environmental sustainability. The digital transition harnesses technologies to enhance productivity and innovation.  Both present economic opportunities. Nature- positive solutions are projected to create $10.1 trillion in business opportunities and 395 million new jobs by 2030.3 In 2022, the digital economy already accounted for more than 15.5% of global gross domestic product (GDP).4 However, the costs and benefits of the transitions are not evenly distributed. In a global economy that will be increasingly defined by digital skills, 2.6 billion people are still without reliable internet access5 and 760 million people are without electricity worldwide.6 In the green economy, communities that heavily depend on fossil fuel industries are at risk of losing their current livelihoods. This report showcases that amid growing inequality and disruptive global transitions, the social economy drives economic equity. Social enterprises (businesses that prioritize people and the planet over profit) are not only spearheading innovation in the green and digital transitions but also creating better outcomes for those who need them most. There are an estimated 10 million social enterprises globally, generating over $2 trillion in annual turnover – which is more than the fashion or advertising industry.7 Building on the economic equity framework (Figure 1) presented by the World Economic Forum in 2024, this report demonstrates that the social economy could help drive economic equity by: –Training and employing 200 million people from target populations –Producing affordable goods and services through smart use of technology and innovation, tiered pricing strategies and the promotion of reuse, repair and recycling –Ensuring access to relevant products and services through community engagement and inclusive innovations –Making close to $1.6 trillion in finance and investment available, often to marginalized groups, through impact investing, microfinance and fintech –Building capacity to create and sell relevant products and services through training, networking and social marketplaces. Policy-makers and business leaders stand to gain from partnering with and investing in social enterprises to promote economic equity in the green and digital transitions. A literature review and interviews across the public and private sectors reveal a range of policy actions that the government could consider taking to advance social enterprise in the green and digital transitions. These policy actions include: –Dedicated action plans and strategies to promote social economy –Tax incentives for public benefit enterprises –Subsidies for essential products and services –The inclusion of social and environmental criteria in procurement decisions –The inclusion of social criteria in investments in the green and digital transitions –Market regulation –Public-private collaboration on key transition challenges.There is an opportunity to promote equity in policies addressing climate change. Unlocking the Social Economy: Towards Equity in the Green and Digital Transitions 4