Unlocking the Social Economy 2025

Introduction Current times are defined by a rapidly transitioning world and the need to adapt to constant change. The world is facing major transformations, all occurring at once. They are economic, including the dramatic decarbonization of industry; technological, due to the merging of the digital and physical worlds and embedding of artificial intelligence (AI); geopolitical, driven by the shift from a unipolar to multipolar environment; and social, as citizens cope with massive changes and sometimes conflicting values.  This report focuses on the green and digital transitions that are radically transforming our societies and economies. These transitions offer social, environmental and economic opportunities but also present risks. Digital jobs are expected to rise globally from 73 million to 92 million by 2030,8 and 14 million jobs are forecast to be created in green technologies by 2030 in Asia and the Pacific alone.9 As impressive and promising as these statistics seem, serious challenges lie in the way of achieving a sustainable and equitable future. Across both transitions in our global economy, progress is leaving many behind and, in some cases, worsening existing disparities. Moreover, the green and digital transitions are closely interconnected. Digital solutions can play an important role in reducing global emissions. Analysis by Accenture, in collaboration with the World Economic Forum, shows that digital technologies, if scaled across industries, could deliver up to 20% of the 2050 reduction needed to hit the International Energy Agency net-zero trajectories in the energy, materials and mobility industries.10 At the same time, United Nations Trade and Development's (UNCTAD) Digital Economy Report 2024 highlights that digital technology and infrastructure depend heavily on raw materials, and the production and disposal of more and more devices, along with growing water and energy needs, are taking an increasing toll on the planet. In designing policies to combat climate change and respond to rapid digital transformations such as AI, policy-makers can design for equity. As they navigate the complexity of delivering a just transition and an inclusive digital transformation, some policy- makers have turned to inclusive and innovative business models in the social economy. For example, in 2022, the European Commission published the transition pathway for proximity and social economy,11 identifying 14 action areas and 30 specific actions to help the social economy lead the way on green and digital transformation. In 2024, the African Union (AU) adopted its 10-year SSE strategy and implementation plan,12 which directly contributes to the aspirations of the AU’s Agenda 206313 to drive inclusive and sustainable development. This report highlights how the social economy is contributing to economic equity in the green and digital transitions. It presents a range of policy actions taken by governments to promote the social economy. Policy-makers have an opportunity to promote equity in policies addressing climate change and rapid digital transformations. Parts of the social economy contribute to the green and digital transitions at large by supplying sustainable goods and services and bridging the digital divide. Their participatory business models, which consider the needs of citizens, employees and other stakeholders, help ensure that the transitions are fair and inclusive. Source: European Commission. (n.d.). The transition pathway for the proximity and social economy. https://single-market-economy.ec.europa.eu/sectors/proximity-and-social-economy/transition-pathway_en. Unlocking the Social Economy: Towards Equity in the Green and Digital Transitions 5